Josh Hunter's Colorado Real Estate Blog

Hard Times

2011-02-15T11:14:00.000-07:00

It is all around us. Financial Markets, Housing Markets, Job Market, etc. The economy is taking its toll on just about everyone from many walks of life. It is unfortunate, but it is REAL.

My profession is helping people. You say "ha, yeah right...you're a salesman like them all". But what do we do? Usually we are entrusted with the biggest and most difficult decision of your life...to buy or sell the home you and your family will live in/have lived in. This is a big task, which comes with great responsibility and respect for the client. Much different than a used car or an expensive vacuum.

Where am I going with this? As a Realtor, I must also continue to keep in touch with clients, prospect for new business opportunities, stay current on the market and market related topics such as lending laws, foreclosure rules, etc. One thing that I've enjoyed is working with families whom are experiencing hard times. Now let me clarify, I do not "get a kick" or anything out of this in that respect. What I mean is that I enjoy helping families whom are faced with hard times find ways to better the situation. Im not a miracle worker who can save your home, find you a six figure income and cure your illness. But when it comes to housing, and being subject to foreclosure proceedings....there are a few options that you can take.

Over the past months, I have seen more and more homes fall into foreclosure, like I mentioned in the beginning this is unfortunate, but also very real. Recently I have noticed many names of those I know and respect in my community that are seeing hard times as well. No one likes to see or hear this, but the reality is that many of our friends and neighbors need help. Whether that is just a friendly "Hello" at the supermarket, supportive comment about a job search, random act of kindness or simply a referral saying "hey, I know your having a hard time....but have you tried or looked into _________?"

No one is exempt from having a hardship....be kind to your neighbor.

This was not intended to be a plug for any services, rather a short rant I wanted to say about all of us. However, if you or someone you know is facing hard times with their home and are curious about what options are out there, I would be happy to discuss. In person, on the phone or via email. The important thing is being proactive.

Open House! Central Longmont Home with 4 Bedrooms!

2011-02-04T11:46:00.000-07:00

Join us Saturday Feb. 5th from 12pm-2pm at 1434 Cinnamon St!

From Mtn View and Main St take Mtn View West a few blocks to Cinnamon. North on Cinnamon, up the hill and the home is the last on the right!

380 Main goes back on the market...What will the future of this building be?

2011-01-26T10:40:00.000-07:00

In todays Times-Call, there is an article pertaining to the newly listed 380 Main St, an important building in Longmonts Downtown History.

Read the full article here:
380 Main Goes back on the market.

For information on this building or other commercial or residential space in Boulder County feel free to call!

Lehman Communications Corp. (Daily Times Call) sold to subsidiary of MediaNews Group

2011-01-21T14:08:00.000-07:00

Just announced, the Lehman Communications Corp has entered into a purchase agreement with another media company.

Please follow this link below to read the full text as well as watch the video of the announcement.

This newspaper has been a major part of many of our lives for a long time.

Mortgage Interest Deduction - Response from NAR Economist

2011-01-10T09:17:00.000-07:00

NATIONAL ASSOCIATION OF REALTORS®’ Chief Economist, Lawrence Yun sent the following response to the editor of The Washington Post in response to the January 1, 2011 article, “Trim the Excessive Tax Subsidy for Real Estate.”

January 2, 2011

It’s a common misperception that the mortgage interest deduction benefits primarily the wealthy, as argued in the Washington Post’s January 1 editorial, “Trim the Excessive Tax Subsidy for Real Estate.”

In fact, the MID actually benefits primarily middle- and lower income families. Sixty five percent of families who claim the MID earn less than $100,000 per year, and 91 percent who claim the benefit earn less than $200,000 per year. As a percentage of income, the biggest MID beneficiaries are younger middle-class families.

The MID helps many families become home owners by reducing the carrying costs of owning a home. The ability to deduct the interest paid on a mortgage can mean significant savings at tax time. For example, a family who bought a home last year with a $200,000, 30-year, fixed-rate mortgage, assuming an interest rate of 5 percent, could save nearly $3,500 in federal taxes when they file next year. That’s real money they can use to pay down other debts, save for their children’s college education, or put away for retirement.

It’s no wonder, then, that most Americans support the MID. In fact, in a recent NAR survey by Harris Interactive of 3,000 home owners and renters, nearly three-fourths of home owners and two-thirds of renters said the MID was extremely or very important to them.

Unlike the very rich, much of whose wealth is tied to the stock market, the wealth of most middle-class American families is connected to their home. Millions of these Americans bought their homes with the understanding that mortgage interest is tax-deductible, and many of them have steadily paid down their mortgages to build equity in their home. Eliminating or reducing the MID would destroy part of this hard-earned equity for all home owners, independent of their tax filing status.

Furthermore, we also need to be mindful that home owners already pay 80 percent to 90 percent of U.S. federal income tax, and this share could rise to 95 percent if the MID is eliminated. Proposals that would remove certain tax benefits in return for lower tax rates just may hold for one or two terms of Congress before the tax rates are changed again. Americans are not naïve; they understand the nature of Washington politics.

For people who don’t have hundreds of thousands of dollars in savings to buy a home outright, tax benefits like the MID help them begin building their futures through home ownership. In a time when the middle class faces increased economic pressures, you can be sure that the National Association of Realtors® will remain actively engaged to ensure that hard-working, home-owning families continue to receive this important benefit.

NAR Chief Economist Lawrence Yun

Longmont Business - A recap of 2010

2011-01-05T10:44:00.000-07:00

The Daily Times-Call in Longmont did a great article on "What happened in business in 2010" in the Longmont Area.

This was a wonderful article to read and learn about how much actually happened with our small and large companies.

Please, follow this link below and take a few minutes to learn about places you may frequent!

Happy Buying and Selling!

2010 Recap of Longmont Business

http://www.timescall.com/tcBusiness/010211Business2010.asp?ID=24731

2011 Housing Predictions

2011-01-03T08:54:00.000-07:00

Predictions for Housing in 2011
Will housing values increase in 2011? Fortune.com offers both a bullish and a bearish prediction.
The bulls say: Affordability is at its highest level. Billionaire Warren Buffet is among those who believe this is a sign the slump is about to end. Buffet writes: "Prices will remain far below 'bubble' levels, of course, but for every seller (or lender) hurt by this there will be a buyer who benefits."
The bears say: It’s not over yet. Housing is still overpriced and inventories are enormous, says Daryl Jones, an analyst at investment research firm Hedgeye. Jones warns that home prices could fall another 15 percent to 30 percent because no one is buying.
Source: Fortune.com, Nin-Hai Tseng (12/27/2010)

Buying a home in 2011?

2011-01-03T08:42:00.000-07:00

5 Reasons to Buy a Home in 2011 Michele Lerner, author of Homebuying: Tough Times, First Time, Any Time, offers reasons why real estate is likely to improve in 2011. Here are five reasons she thinks consumers should consider a home purchase next year:
▪ Mortgage rates will stay low. Even with rates climbing — maybe to as high as 6 percent by 2012 — they are still well below where they have been historically.
▪ Tax cuts could help. Extending the tax cuts could encourage a more rapid recovery for the economy.
▪ Americans want to be home owners. A recent Fannie Mae survey showed that Americans still believe a home is a safe and desirable investment.
▪ Builders are about to begin building. Home builders have been sitting on the sidelines. This year, they think pent-up demand will create an appetite for new homes.
▪ Homes are shrinking. Homes are getting smaller, which has made them more affordable.
Source: Investopedia, Michele Lerner (12/24/2010

Where is this market going? Should I hold out for lower prices before I buy?

2010-12-17T10:47:00.000-07:00

What does 2011 look like to you? What do you hope the 2011 Real Estate Market will bring?

Will rates rise? Is there "shadow inventory" lurking about? What about home prices?

There are 3 critical factors that will determine how the housing market will look in 2011.

Unemployment rate
House prices
Interest rates

Cherry Creek Mortgage has put together a great short presentation that examines each of these, and their effect on 2011. The last half of the presentation is particularly interesting, pointing out the effect of 10% decrease in home price vs. a 1% increase in your interest rate. Also, how that 1% jump in a rate may lead to not qualifying for the loan.

Thanks and enjoy!

Please Click Here for the 7 minute presentation. Very interesting.

Mortgage Rates Jump to 6-Month High

2010-12-13T09:43:00.000-07:00

Mortgage rates rose for a fourth-straight week to reach a six-month high as yields on government bonds continue to rise. The average interest on a 30-year fixed loan hit 4.61 percent, up from 4.46 percent a week ago, Freddie Mac reported.
Also, 15-year fixed loans averaged 3.96 percent, up from 3.81 percent last week; and rates for variable adjustable-rate mortgages floated higher as well.
Source: Los Angeles Times, E. Scott Reckard (12/10/10)

Boulder, Co....Smartest US city?

2010-12-06T09:38:00.000-07:00

A study that looked at the education levels of the residents from the 200 largest metros identified Boulder, Colo., as the nation’s smartest city, as well as nine other mostly small-city locales that are home to high tech and aerospace companies as well as brainy people.
"We often associate larger cities as the centers of education and culture, and therefore epicenters for the country's smartest people. However this study shows that smaller cities can attract some significant brain power. Out of the top 10 smartest places, six of them have populations of less than one million people," said J. Jennings Moss, editor of Portfolio.com.
Here are the nation’s top-10 brainiest cities:
1. Boulder, Colo.
2. Ann Arbor, Mich.
3. Washington, D.C.
4. Durham, N.C.
5. Fort Collins, Colo.
6. Bridgeport-Stamford, Conn.
7. San Jose, Calif.
8. Boston
9. Madison, Wis.
10. San Francisco-Oakland, Calif.
Source: Portfolio.com (12/01/2010

Existing National home sales decline in October

2010-11-29T09:30:00.002-07:00

Existing-home sales retreated in October on the heels of two strong monthly gains, according to the National Association of REALTORS^®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, declined 2.2 percent to a seasonally adjusted annual rate of 4.43 million in October from 4.53 million in September, and are 25.9 percent below the 5.98-million-unit level in October 2009 when sales were surging prior to the initial deadline for the first-time buyer tax credit. Year-to-date there were 4.149 million existing-home sales, down 2.9 percent from 4.272 million at this time in 2009.
Lawrence Yun, NAR chief economist, said the recent sales pattern can be expected to continue. “The housing market is experiencing an uneven recovery, and a temporary foreclosure stoppage in some states is likely to have held back a number of completed sales. Still, sales activity is clearly off the bottom and is attempting to settle into normal, sustainable levels,” he said. “Based on current and improving job market conditions, and from attractive affordability conditions, sales should steadily improve to healthier levels of above 5 million by spring of next year.”

Mortgage Purchase Applications Hit 6-Month High

2010-11-29T09:29:00.000-07:00

Mortgage applications to purchase homes increased 14.4 percent last week on an adjusted basis compared to the previous week, according to the Mortgage Bankers Association weekly survey.
The unadjusted Purchase Index increased 9.6 percent compared with the previous week and was down 7.4 percent compared to the same week a year ago.
On a seasonally adjusted basis, this is the highest Purchase Index recorded since the week ending May 7, 2010 in the middle of the tax-rebate push.
“The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation,” said Michael Fratantoni, the association’s vice president of research and economics.
“The level of purchase applications on a seasonally adjusted basis is now at its highest level since the expiration of the homebuyer tax credit,” Fratantoni concluded.
Interest rates were mixed, with 30-year fixed-rate mortgages rising to 4.50 percent from 4.46 percent and 15-year fixed-rate mortgages decreasing to 3.83 percent from 3.87 percent.
Source: Mortgage Bankers Association (11/24/2010)

Rates on the Rise

2010-11-22T09:39:00.000-07:00

Mortgage Rates Back on the Rise Rates for 30-year fixed mortgages rose to 4.39 percent this week from 4.17 percent a week ago, and average interest on 15-year loans moved to 3.76 percent from 3.57 percent, said Freddie Mac.
Interest for five-year adjustable-rate mortgages jumped to 3.4 percent from 3.25 percent, meanwhile, and one-year ARMs held at 3.26 percent. Rates have climbed along with long-term Treasury yields as traders unloaded Treasurys purchased before the Federal Reserve announced a $600 billion bond purchase program.
Source: Chicago Sun-Times (11/19/10)
Analysts Say Housing Is Better But Still Fragile Analysts are saying that low interest rates and low prices could encourage more people to buy homes soon or refinance the ones they have.
"In most markets, the crash is over and stability is beginning," said Joel Naroff at Naroff Economic Advisors. "[Real Estate practitioners] are saying it isn't great, but it's better than last year. If refinancings get going, that will help consumer confidence."
Mark Zandi, chief economist of Moody’s Analytics, sees it slightly differently. He thinks lower mortgage rates aren’t going to stop home prices from falling further. "The housing market is still really fragile," Zandi said.
Source: USA Today, Stephanie Armour (11/11/2010)

Look out investors! Rental income tax coming up!

2010-11-18T13:38:00.000-07:00

Starting January 1st, 2013 investors may be surprised to find out that they are now on the hook for a 3.8% tax on "unearned income", meaning income derived from the investment of your capital...such as rental income. Now this is only for "high income" individuals and may also face a .09% tax on earned income.

Now, who is as "high income" individual, well apparently this tax will effect individuals filing as "single" having an AGI of $200,000 or more. Married filing jointly is set at $250,000.

Here is an example question from Realtor.org relating to investments you currently own. Here is a link to the direct download of the Q&A.

"Q-6: So the new tax will apply to rents from investment properties that I own?

A: Maybe. Remember that net investment income includes only netrental income. TThus, gross rents would not be subject to the tax. Rather, gross rents would be reduced (as they are under the income tax) by all allowable expenses, including depreciation, cost of repairs, property taxes and all other expenses related to the property. AGI includes net income from rent, so if your AGI is above the $200,000/$250,000 thresholds, then the rental income might be subject to the tax. For many investment real estate owners, the net rents will be the same as or similar to the amounts reported on their Schedule E, filed with their Form 1040 Income Tax Return."

Thoughts on this?

7 Trends That Will Drive the Future of Housing

2010-11-17T11:00:00.000-07:00

Credits for this information go to realtor.org, source at bottom.
7 Trends That Will Drive the Future of Housing
Hanley-Wood's ProSalesOnline.com identifies seven trends that the magazine’s editors believe will have the biggest impact on housing in 2011.

1. Big builders are wringing the extras out of construction costs and dropping the national average cost-to-build 36 percent to $52 per square foot.
2. Starting in 2011, Energy Star will ramp up its efficient design and quality installation standards. To get Energy Star certification, builders will have to install the right insulation, HVAC systems, and other features related to energy efficiency correctly every time.
3. Sheds are the next evolution. As homes get smaller, a separate shed will become a popular home addition.
4. There are 81 million "Echo Boomers" who were born from 1981 to 1999, compared to just 78 million Baby Boomers born from 1946 to 1964. These children and grandchildren of Boomers will drive home-building for years.
5. By 2015, demographers say, more than two out of every five households occupied by Generation Y people born between 1981 and 1999 will be WINKs (women with incomes and no kids).
6. Make room for the "Sandwich Generation" – Baby Boomers living with both their kids and their parents. These families like having two master suites, a second cooking area, and lots of storage.
7. Baby Boomers want to keep working and continue to live where they have always lived. They want a first-floor master bedroom near the washer and dryer and lots of convenient storage.

Source: ProSalesOnline.com (October 2010)

City of Longmont Down Payment Assistance Program

2010-11-04T13:18:00.000-06:00

Did you know that the City of Longmont offers a Down Payment Assistance Program?

This program offers up to 8.5% of the purchase price (or up to $15,000) to be used towards a downpayment as well as closing costs! Housing must be in Boulder County, yet outside of Boulder City Limits. Currently funds are not available for Broomfield either.

Now, this is a low interest loan and not “free money”, so keep that in mind. For those that earn 51-80% of the AMI or “Area Median Income”, the loan is at 3% and amortized over 10 years. For those households that earn below 50% of the AMI, this deferred loan with no monthly payments is at 4% simple interest and the full amount (principal and interest) is due at the sale, change or ownership or refinancing of the property.

Keep in mind that there is an application process to go through as well as a few other requirements, one of which being a homeownership and budget class put on by the city. Once approved for the program, we then work to find a suitable residence.

This can be a great way to open up the world of homeownership! With interest rates as low as they are, and a down payment assistance loan at 3% or 4%, the dream may be closer than you realize.

Feel free to contact me if you have further questions about his program or if you would like me to attend a class with you!

Boulder County Income Limits
Household Size	1 person	2 person	3 person	4 person	5 person	6 person
Maximum Income (This is the 80% figure)	$44,800	$51,200	$57,600	$64,000	$69,100	$74,250
Maximum Income (This is the 50% figure)	$31,200	$35,650	$40,100	$44,550	$48,100	$51,700

5 Trates of todays home buyers

2010-11-02T10:16:00.000-06:00

A survey by American Lives, a consumer research firm in California, conducted a study for the trade magazine Builder to answer that question. Here are their conclusions:

· They are young. Most are under 45. Half said they had annual household incomes of $75,000 or less. Two-thirds are married.

· They are frugal. They consistently told surveyors they were eager to live a simple lifestyle.

· They are concerned about their financial future. About 70 percent said the economy is “not so good” with 27 percent saying it was getting worse and 27 percent saying it was getting better, and two-thirds saying it would get better in a year. Some 55 percent said they were concerned that they might lose their jobs.

· They see themselves as energy efficient but not necessarily “green.” About 32 percent said they’d pay extra for energy-efficient features but only 16 percent said they’d pay extra for recycled or renewable construction materials.

· Neighborhood is important. Ninety-five percent said they thought the community was as important as the home itself. Seventy-nine percent wanted the most square footage they could afford, but 69 percent said they’d consider a smaller home in the right neighborhood.
Source: Inman News, Mary Umberger (10/27/2010)

168 HOMES THAT ARE......AFFORDABLE? How Affordable?

2010-10-29T09:47:00.000-06:00

Buyers, did you know that right now, this second...there are 94 homes on the market in Longmont that have 3 bedrooms and are priced between $100,000 and $200,000? I know! Really! 168 homes that are 2 bedrooms or larger!

Did you also know that interest rates are at historic lows? Like, in a lot of cases cheaper than renting low?

You’re right, the government is not offering any more tax credits for first time or move up buyers but you didn’t miss out. In fact, if you were to buy a home last year at “lets say” 5.5% and received $8000.00 to do so, you would be saving thousands of dollars more buying the same priced home today at “lets say” 4.5%. Not to mention getting to write off that interest according to your tax bracket.

Lets see some proof:

*Consider a home purchased today for $175,000 on a 30 year FHA loan fixed at 4.25%, your payment would be $1127 per month. Lets say that you bought last year, in fact it was the home across the street from the previous example! Sales price was the same at $175,000 on a 30 year FHA loan fixed at 5.25% (exactly 1% higher).

$175k @ 5.25% for 30 years = $1230 per month

$175k @ 0.00% for 30 years = $1127 per month

Difference of $103 per month, $1236 Per Year and over 30 years....an amazing $37,080! Take out the $8,000 tax credit from this number and you are still saving $29,080 over that of the higher interest rate!

So while yes, buyers DID get a quick $8000.00, the reality is they are still paying larger monthly payments equalling almost $30k more that a buyer at todays rate.

Every market has it up sides!

Have a SAFE and HAPPY HALLOWEEN WEEKEND!

*640 Fico, $6125 down payment. Quotes provided by The Kunselman Team

Buyers - Home and Sewer Inspections are very important!

2010-10-28T16:03:00.000-06:00

Your buying your new home...so excited to move out of your current place and into the home of your dreams....or nightmares!

Being proactive however and helping ensure that your dream home is in fact that, obtaining a home inspection is one of the most important things a buyer can do that can save hundreds and even thousands of dollars down the road.

We know buying a home is not cheap, in fact for most people it is the single largest purchase they will ever make. 10% down payment here, $4800 in closing costs there, loan application, taxes, insurance, etc, etc make it a costly venture up front. However when you Realtor recommends an inspection for lets say....$350.00...it can be a bit of an extra shock, but may also save you thousands down the road.

Need a few reasons why?

Get a professionals opinion...not your handyman experience. All to often, buyers looking to save a few hundred will run through the home themselves looking for items needing work “Because they have put this in once before”.
Thoroughly Looked Over - A professional inspector will not just look at the foundation, appliances, eyeball the roof and make sure the heater works. A thorough inspector will take his/her time inspecting each room and area of the property. Test each socket for power and grounding, each hose bib for leaks, look in common leak areas, see if the insulation is proper, walk on the roof to inspect not only the shingles, but the vents/windows/gutters and whatever else may be up there. Appliances are cycled, heating/ac/water heater are tested and temperatures are taken. Gas leaks are sniffed, sprinklers ran, etc, etc. As you can see, they do a lot, much much more than what I have listed.
Know Potential Code Issues or Violations - Inspectors may notice potential violations or “code cutting” measures that may have taken place in the past.
Get recommended care tips on each section of the home. Trust me, a good inspector has seen A LOT of homes.
Negotiation - An inspection may also serve as a good negotiation tactic. First we negotiate price/terms....then inspect. This is an opportunity for your Realtor to work with the sellers on addressing items that are of concern to you. In some cases, this provides an “out” of the contract if repairs needed are too extensive.
Extras - With a home inspector, you can usually get your property tested for Radon Gas Levels (Check for another blog post about this!) as well as inspecting your sewer system. Keep in mind not all inspectors inspect sewers and you may need to contract a plumber.

Since I mentioned Sewers, I thought I should add one quick note. Sewer inspections on homes are such a critical component to your evaluation and inspection! For such a small fee, a plumber will send down a scope with a camera into your main sewer line. From here they can check for breaks, bows, cracks, separations, root intrusion and more to notify your of COSTLY repairs that could be looming. To root a sewer out can be anywhere from $79-$250 in our market.....having to replace a section can be upwards of $7000-$15,000 or more. Dont get stuck in the mud on this. Inspect your home and sewer!

Did I ask you? This is how we DO NOT treat our buyer!

2010-10-21T10:00:00.000-06:00

Today I came across a video on the internet that sure was worthy of a chuckle. I wanted to post this since we are in a buyers market with very low interest rates still, and show that this is how your Realtor should NEVER treat you. While there are many great deals around and the cost to borrow money is at historic lows, you should never feel pressured into your purchase.

Rate Check! Rate Check! How do you measure up?

2010-10-15T11:34:00.000-06:00

Whats your rate?

Well in these times it is safe to say that if you are able to refinance…..this is an excellent opportunity to do so and possibly take up to hundreds of dollars off of your payment!

Rates are hitting historic lows. Recently a Mortgage Broker was mentioning that in this wave of refinances, they were closing some at rates in the low to mid 4%'s! Please, you owe it to yourself….take a look at your current mortgage statement and double check your interest rate. You may be in a position to lower that payment even lower and lock in an unbelievable rate for the remaining term of your loan.

Buyers….Renters…..This should have your attention too. What does low interest mean? Well, in short…cheaper money! If you take a look at those that bought during the recent years tax credit and think that you "missed the bus on that"…think again. Correct that you will not get an $8000.00 check to spend how you wish, the monthly interest savings you will realize over the life of the loan TODAY vs. last year can be tens of thousands or MORE depending on the principle balance of the loan.

I am a Real Estate Professional, not a loan officer or mortgage broker, however if refinancing "interests" you and you would like some great recommendations please contact me! I would love to help point you in the right direction of those I have found to like and trust.

Cheers and happy buying!

Boulder County is Ok with Pot Growing Operation

2010-09-01T10:56:00.000-06:00

Please see the article below complements of the Times-Call. This is sure to stir up some arguments in the coming weeks.

http://www.TimesCall.com/news_story.asp?ID=23263

Should you wait for a lower home price? Or a higher interest rate?

2010-08-23T10:40:00.000-06:00

Short Sales alternative to foreclosure. For some....a great option in a distressed situation

2010-07-27T15:49:00.000-06:00

Great article in the link below on Short Sales. If you are *or think you will be going to miss payments on your mortgage, please contact your real estate professional (OR ME!) to talk about your options. In some instances, this may be a good option for you and for the overall real estate market. Most importantly....don't wait until the last minute!

http://www.bcbr.com/article.asp?id=52708

LONGMONT LOVES GOOGLE! Thanks for coming out!

2010-06-18T15:30:00.000-06:00

Thanks to all who came and supported todays efforts in attracting Google's attention towards Longmont!

Nordstrom Rack - Re Racking....

2010-05-17T09:43:00.000-06:00

Nordstrom Rack, Re Racking.....

Popular store near Flatirons, coming to 29th Street Marketplace in Boulder in the Spring of 2011....

Nordstrom Rack moving to Boulder Boulder County Business Report

Open House this Weekend!

2010-05-13T07:44:00.000-06:00

Join me this weekend in Berthoud, Colorado at 1705 Exeter St for an Open House from 11am-1pm! This 5 bedroom home features a fully finished basement, high end finishes and unobstructed views of the Rockies! Fully landscaped as well as features a 3 car garage! Also, we JUST REDUCED THE PRICE to $379000!

Real Estate | Boulder County Business Report

2010-04-26T16:37:00.000-06:00

Real Estate Boulder County Business Report

Great Blog from David Clucas regarding the proposed hotels in Gunbarrel!

Have home sales improved?

2010-04-19T11:13:00.000-06:00

Local real estate agents have said that the first quarter has been great; however most will have a better feeling for 2010's outlook after next quarter.

The end of the extended homebuyer tax credit is closing in, just days are left to secure a property under contract and this is having an impact on Q1 and Q2 numbers. How big of an impact? We will have to see.

A Longmont real estate agent quoted in the Times Call, "Harsher than usual winter kept things slower than normal in January and February, which are slow months in the real estate business, but March was busy for real estate agents." I personally feel that while the tax credit may be a large driving factor for many to take advantage of buying a home, there is still a large percent of buyers who are more concerned with taking advantage of lower interest rates and current price trends, realizing that in some price ranges.....a bottom has already been hit.

Longmont saw 154 single family homes sold in this first quarter, which is only 4 fewer than this time last year. However the median price of homes sold rose to almost 5 percent quarter over quarter to $225k from its previous $215k.

While there is still an increase in foreclosure activities, many experts believe that home prices will continue to rise. I for one agree with the agent quoted that, while we will not see a large increase, say in the double digits, that we will continue to see small corrections in pricing.

Longmont Housing Numbers for March

2010-04-12T15:20:00.000-06:00

March posted some great numbers for Longmont. Let’s see if we can keep it going.....

For Single Family Housing in Longmont we showed an overall increase in Average Sales Price of 17.6% from last year. Meaning $265,662 vs. $225,968 in March of 09. Days on market crept up just a bit to 121 days vs. the previous March 09 number of 107. Also, two interesting numbers are the total homes sold year to date and total number sold in March. Interestingly enough YTD sales are down roughly 2% at 153 vs. 156, however March sales are up this year 37.5% over last. 09 turned out 56 sales and 10 turned out a whopping 77, you can see the buyer programs at work there! April may prove to show is some interesting numbers as the close of the tax credit creeps upon us.

Attached Dwellings saw some changes as well over 2009. Average Sales Prices rose 22.3% from $148,902 to $182,065. YTD sales increased by 56%, 25 in 2009 to 39 in 2010. Totals for March were up a whopping 77.8%; however this percentage is really 16 sales Vs a prior years 9 sales in March.

I expect to see a similar move in the coming two months as the Governments Tax Incentives for buyers will ultimately hit a peak. Now the question remains...what happens next?

Hey Mr. or Mrs. Realtor.....How do you pay your bills?

2010-03-29T10:29:00.000-06:00

Where does this money come from? Who Pays You?

Recently I have been getting the question….”Who Pays You?” This question follows no matter if I am talking with a perspective buyer or seller.

Not in all cases, but most commonly when you hire a Realtor to list and market your home for sale you will be paying their brokerage either a percentage of the sales price or an agreed upon fixed rate. This amount you pay the brokerage is then dispersed to both the Realtor listing your home as well as the Realtor that brought the buyer to the transaction. Most commonly there are no upfront fees and your Realtor will put in the work and time to attract a buyer, with the end goal to successfully negotiate a contract and then get paid on that performance. Pretty cool huh? Imagine if your doctor agreed to this, only paying him if you get better. Your lawyer would only request payment if you won your case….and just think if your stock broker or money manager only made money when you do…..funny right? Well that is exactly how we work, when you hire us we are devoted to doing a great job because…..if we don’t we will not see compensation for our time and effort.

Now as I said in “most cases”, since prices are not set until after they are agreed upon there are options for flat fees, a la carte pricing structures, etc but you should discuss this with your Realtor.

Buyers – Many buyers have a misconception that the Realtor they choose will cost them money. Well, again in most cases this is incorrect. In the majority of transactions your buyer’s agent is paid by the seller. You see, they are agreeing to pay each of you “when you perform” therefore there is seldom a need to also charge the buyer for taking them out to view potential homes. The incentive to do a great job is still, to find out exactly what you seek in a home, show you those homes and then negotiate an offer that works for both sides.

I hope this helps clear up some uncertainty in this area. Don’t let uncertainty hold you back from considering buying or selling a home….just give me a call and ask!

Bank of America - How does 30% off sound?

2010-03-25T09:42:00.001-06:00

BofA announced yesterday that in May they will be piloting a new program with 45,000 homeowners to potentially reduce their loan amount by up to 30%. I have not seen a clear detailed summary of the program but some basics as I understand them are that the homeowners must be 60 days delinquent in payments, owe around 20% more than the home’s value and may be limited to borrowers in what would be considered a "risky" loan.

From an interview on the radio this morning, it was said that Bank of America would take up to 30% off of the loan balance and place it "on a separate note". After the borrower continues to make payments on the new loan balance, 20% of the "separate note balance" will be forgiven each year for the first 3 years; the final two years would be dependent on the updated value of the property.

Bank of America may either be on to something here after the initial test phase results can be looked at. Often times, the cost loss and time including repairs can exceed 30% if the institution is forced to foreclose on the borrower.

More to come on this as we learn more......

Please share your thoughts in the comment section! Tell us what you think!

Why would you use a Realtor?

2010-03-23T09:29:00.000-06:00

Today I wanted to point out the importance of using a Realtor in a real estate transaction. The National Association of Realtors has provided this great write up about it and I wanted to share it with you all. The text below is not of my own writting but provided from http://www.realtor.com/ for informational purposes.

All real estate licensees are not the same. Only real estate licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS®. They proudly display the REALTOR "®" logo on the business card or other marketing and sales literature. REALTORS® are committed to treat all parties to a transaction honestly. REALTORS® subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reports that 84% of home buyers would use the same REALTOR® again.

Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.

But if you're still not convinced of the value of a REALTOR®, here are a dozen more reasons to use one:

1. Your REALTOR® can help you determine your buying power -- that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.

2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.

3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you'll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date.

6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.

7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.

8. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.

9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS® to utilize these cooperative relationships when they benefit their clients.

10. Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

11. Your REALTOR® can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing -- a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.

12. Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).

Time is almost gone! Hurry and get your slice!

2010-03-16T11:36:00.002-06:00

Tax Credit Extension about to expire! Currently no word on another extension! First Time Buyers and Move Up Buyers, you have until April 30th 2010 to get your next property UNDER CONTRACT! You still do not have to close until June 30th, but he contract deadline is approaching in just over a month.

What does this mean?

This means you don't have much time to get going! We have great relationships with lenders in the area that can help us get you qualified quickly and out into the market looking at potential homes.

Give us a call or email for more information about the market, whats available, lenders and more!

Longmont Real Estate - 303-682-2828
josh@longmonthomes.com

Free MLS Search with no pressure!

Longmont to Cover Start Up Costs to Help New Business's

2009-11-30T08:52:00.003-07:00

Interesting story today in the Longmont Times Call Newspaper. Entrepreneurs in the Longmont area can apply for up to a $2000 grant to help pay for business start up costs.....more here

Tax Credit Extended and now offers credit to current homeowners

2009-11-09T14:25:00.003-07:00

The information below in this blog post was passed onto me and in no way do I represent this post as my own authoring.

Looks like tax credits will stay
November 5, 2009—After two weeks of delay, the Senate cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers. By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week.
The homebuyer tax credit, due to expire at the end of November would be extended through April 30 of next year. First-time buyers who are in the process of making a purchase would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.

For the first time, the legislation that was recently cleared makes move-up buyers as well as first-time buyers eligible for a credit. The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years.

For homebuyers across the country, the expanded tax credit would allow more people to qualify for the credit. While two-thirds of American families own their own home, and most earn less than the income limits that have been established within the extension, more buyers may be eligible. Move-up buyers don’t have to sell their current home to qualify for the new credit, but the money cannot be used to buy a vacation home. “It’s only for a primary residence,” said Regan Lachapelle, a spokeswoman for Sen. Harry Redi (D-Nev.), who helped engineer the deal. “In expanding the tax credit, we are helping first-time home buyers, as well as homeowners looking to move up to a new home, but we would exclude from the credit speculators who may have recently purchased a home intending to flip it for a fast profit,” said Senator Max Baucus, Democrat of Montana and chairman of the Finance Committee.

The tax credit has fired-up the housing market, driving existing home sales to the highest level in over two years. The National Association Realtors reported sales jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September and are 9.2% higher than the 5.10 million-unit pace in September 2008.

The legislation included provisions added to address complaints of fraud as well. The Internal Revenue Service is given greater authority to oversee the process to root out fraud, and provisions are added in response to past abuses of false sales or underage buyers. An investigation by the Treasury Department’s Inspector General for Tax Administration found that more than 580 children, some as young as four years old, had received $627,000 in first-time homebuyer credits. The IRS has identified 167 suspected criminal schemes and opened nearly 107,000 examinations of potential civil violations of the first-time homebuyer tax credit.

Tax Credit Extension? If not OH WELL with this deal!

2009-09-22T15:49:00.002-06:00

A local builder in Northern Colorado (and Denver for that matter) is "fairly confident" that they will see a tax credit extension that they are offering a spectacular deal......if you go under contract on a new home and there IS NOT a tax credit extension, you may elect to remove yourself from the contract AND get a full refund on the earnest money you paid.

There will be more details to come but please do not hesitate to call me for info on this now.....things will be getting very busy very quickly.

Happy Birthday! Welcome to your new office!

2009-09-21T10:49:00.002-06:00

Today is September 21st, one of the most important days of the year. People flock from miles around just to be able to take part in this amazing event......wishing me a happy birthday!

It has been a while since my last entry so I will explain why.

For years I have been a broker with Your Castle Real Estate, LLC out of Denver Colorado. What a great company. Backed by some of the industries leading professionals, this organization is ran very well and I made alot of friends there. I will continue to have friends there as well, this move was more of a personal decision and an unhappiness with the firm.

My new company, Longmont Real Estate which is an independent Metro Brokers company is where I now hang my license. The name says it all in terms of one reason for the switch. I have grown up in Longmont my whole life, know many many people in town, have wonderful business relationships in town and wanted to be associated with a "Longmont Firm" with "Longmont Focus". I found it.....

In addition to this recent change, I will be implementing an advancement in my Leasing Service as well that I hope to unleash by years end. Without giving too much away up front.....we will still offer our amazing tenant placement services but will also be adding a few other valuable services...one we hope is full service management.

So, for those that know me....the only thing that has changed is my Logo and Office Number! I am still the same great guy, in a great town, doing what I love....

On a last note, please keep in mind that although my office is Longmont Real Estate, we are still able to assist you in other areas of the state!

You Like To HIKE? Me To! I want you as MY "Service Provider"

2009-09-03T15:41:00.002-06:00

When it is time for a new car, do you visit the dealership you bought your last one from? Or if that sales man has moved to another company, do you follow him so long as you receive what you seek? What about your cell phone…..do you buy, upgrade, and get accessories and so on from the same company or just “whoever is close by”? This question can be in all aspects of “sales”, sporting goods, shoes, car parts, even insurance.

What brings you back to that person? Is it the person? Sales is very relationship driven and successful “relationships” are often successful because the buyer/seller really meshes well in one area or another. What I mean is that there is something that naturally brings you two together and keeps you together, the loyalty bug maybe?

I’ve seen this loyalty bug be such things as honesty, being honest and up front…delivering on said expectations. Knowledge, having the absolute facts handy and up to date….you go to this person for consistent knowledge or leadership. Personality does this person make you laugh, cry, feel important, feel smart, are they always in a social setting, are they always alone in an office, etc. Interests, do you and them like to bike, hike, fly, gamble, fish, go to sporting events, wear similar tee shirt brands (you would be surprised how many people “mesh” well with another wearing a similar sports team or interest on their clothing), drink local beer you like, like the same music, etc, etc.

In my opinion, sharing similar interest is the most common I see and experience. I take my car to the shop where my mechanic shares the same “love” for his similar car. When I need a cell phone, I always call my friend whom I have enjoyed the outdoors with for a long time, Even when I need computer help or diagnosis…I call my friend I have played poker with for years. I see and hear the same things in my Real Estate Business too. “Josh, I wanted to contact you about listing my house…..I’ve enjoyed Mountain biking with you over the years and it is time for me to sell”. I enjoy many things and always enjoy when business comes from those events such as my cycling, hiking, poker and Audi groups. This is not a blog post on “Hey , find an interest we share so we can work together” rather just a post to stop and think about what factors drive your decisions on who you do business with…..Please comment below if you have any thoughts to share….I’d love to hear them!

Tax Credits, Clunkers, Dishwashers and Homes Oh My!

2009-08-27T10:52:00.002-06:00

Move over Cash for Clunkers........Dollars for your Dishwasher is in town! I thought this was pretty funny reading this today. Looks like we may have a new program geared towards increasing the efficiency of your dishwasher with a rebate program from $50 up to $200. As I understand each state will be allowed to pick a "rebate product" for a certain amount, example that Florida may choose the $100 rebate model and Colorado may choose the $125 one. This looks like it may be interesting but I have a very hard time believing that this will stimulate much of anything. My understanding was that these were to increase the amount of permanent jobs in the US. After hearing that manufactures are not even increasing production on the selected models leads me to believe this is just going to look like a big sale for a month or two....

ONWARD to the HOME BUYERS TAX CREDIT!

Recent buzz has a bill awaiting house and senate approval regarding the First Time Buyers Tax Credit. As I read, this bill will not only extend the dates (or instead of extend will start after the expiration of the first timer credit) of obtaining a tax credit for purchasing a home, but will also open up the credit to HOMEBUYERS.....not just FIRST TIME HOMEBUYERS. There was no mention of the amount being increased. I am very excited if this holds to be true, I think we will see a much larger sales boost if this option was open to others. Investors, 2nd home buyers, vacation home purchasers and more. Additionally this would also relieve some pressure from those who are really racing the clock to close by Nov 30th of this year......more to come as I know more....

Hey, what is your home worth? Click here to find out for free!

Lease Options? I want to sell my house NOW but I cannot!

2009-08-19T10:20:00.002-06:00

I want to sell my home to move across town, but this home just will not sell. What is the deal?

Well, there are many things that could be holding your home back from selling. Some include highly saturated foreclosure areas in which no one is interested in moving into, too many lower priced homes making you the most expensive option, you may be in the wrong price range for your markets buyer interest, etc etc. This list could go on and on with all of the variables each market or neighborhood for that matter poses. This blog entry would quickly be several pages if I went into every reason……

What I want to do today is take your thought process on a little journey…not too far I promise. We are just going to head around the corner and “outside the box” for a bit. Talking about two words…..Lease Options.

Ok, those of you that did not just roll your eyes or are thinking “what is that and how does it work?” keep reading. This term “lease option” or “Rent to Own” has been around for A LONG TIME. That is the good news if you are new to this…..we did not just come up with this idea recently. However, depending on your personal and financial situation, this may be a great avenue to pursue with your Realtor or (cough cough) ME!

Who would be a good fit for a lease option?
· Investors or those interested in Investing
· Someone looking to purchase a home but for one reason or another cannot close in the next 6-36 months.
· Homeowners looking to sell that have the ability to close on another home without selling the current one
· Landlords with rentals

I will focus this post to the third group- those wanting to sell to up or down size that can still buy another home without HAVING to sell their current one. What I mean by this is when you obtain a loan; the lender will look over your Debt to Income ratios to determine how safe they feel lending you the money on your new home. For many younger homeowners or those with DTI ratios close to the max this can be challenging, essentially meaning they cannot get another mortgage until the current mortgage is taken care of by either paying off the debt (not common) or selling the property to another party to pay of the debt.(common) The best thing to do up front if you are considering a lease option is talk with your lender first to see if you can buy another home if your current home is leased out…….in many cases you will find it is possible.

Background-
A lease option is a “lease” with and “option to buy” and is typically 2 separate agreements. One holds you and the tenant into a lease contract just as any rental. You layout the terms, price, maintenance, and protection for both parties. The other document is the option to purchase. This is a unilateral contract meaning the tenant does not HAVE TO buy your home but if they elect to, you HAVE TO sell it to them at the terms set in place. Option Money is collected from the tenant in place of a security deposit. The Option Money is thought of as similar to earnest money when you purchase a home…..you are putting the money “down” to buy your option to purchase the home. If you do purchase it, the money is applied towards the sale. If you elect not to purchase and move out, the owner will retain 100% of the money. Typically the option money is higher that your standard security deposit. Currently many people can obtain financing with 3.5% down payment via an FHA program. This being said we typically see option money in the amount of 1-3% of the purchase price in most cases. Quite a bit more than first month’s rent and you generally get a more serious tenant that is actually looking to take care of your place and purchase it down the road. Added sense of security.

Your Realtor and you will sit down and discuss the terms and sales price to seek as well as how you will structure the actual sale. Usually your broker will agree to facilitate the sale down the road for a small commission and collect a “Lease Fee” upon successful placement of your tenant.
The tenant will then continue to rent your home while you are now free to move out and buy your other property. Keep in mind, in this market you will more than likely be in a strong buying position and getting a great price on your new acquisition.

What happens if they do not want to buy and move out?
Well, this is definitely something you want to at least prepare for. It is great when things work out perfectly but fact is…..they don’t always. Make sure you are prepared to handle a vacant house for a few months when you decide to do this. If someone moves out and the market has not corrected enough for you to sell, you need to get someone else in there. This may take time over a period when your payments are due. On the good side, if they moved out and did not by, they essentially defaulted on the lease and you retain the funds which should (in some cases) covers your cleaning and hopefully makes a payment or two.

This is a VERY BRIEF outline of a lease option just to get the wheels turning. I would LOVE to talk or email with you on specific questions or help educate you further. In a buyer’s market, it is important to position yourself correctly as a seller and offering a lease option opens you up to a whole other market of people……just keep your main goal in mind…..to move you and your family to a new property.

You can search the MLS for FREE from my personal website! I offer more info on Lease Options as well as much more valuable information…..join me at http://www.hunterhomescolorado.com and have a great day!

100% Financing Still Available! First Timers Take a Look!

2009-08-11T15:42:00.000-06:00

100% financing is not gone! In fact it is available to help stimulate rural development and you STILL QUALIFY FOR THE $8000.00 TAX CREDIT!

Interested in buying a home but really do not think that you have the money to actually do it? The USDA (United States Dept of Agriculture) has a 100% financing plan geared towards helping people own a home with little to nothing down!

Now let me mention there are area restrictions with this program but those of you that are looking in the Northern Colorado area…..the good news is that many areas qualify! More info on this program and a map of qualified areas is here http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Areas such as Johnstown, Milliken, Firestone, Frederick, Dacono, etc currently qualify for this financing option! Don’t let the lack of available money hold you back from taking advantage of this great market! I will keep this blog post short because you REALLY SHOULD CALL ME OR EMAIL ME about this! The deadline for closing on your home is approaching fast and we can get together to discuss a plan for your individual needs!

Josh Hunter
720.495.5924

Housing Stats for July 2009!

2009-08-07T12:39:00.005-06:00

Well we just saw the largest sales volume month in 2009! To add to this, there was a small increase in BOTH the average and median sales prices of Single Family Homes in Longmont! Real Estate prices going back up??? I would not go that far.......yet.....hopefully soon?

Take a look at the chart below and let me know if I can assist you in anyway!

Longmont Housing Inventory Drops

2009-08-03T11:49:00.002-06:00

Below is an excerpt from a writeup in the Longmont Daily Times Call regarding the local hosing market.

By Reid WilliamsLongmont Associaition of Realtors
Existing-home sales rose for the third consecutive month nationally with inventory easing and home prices declining less sharply in June, according to the National Association of Realtors.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 3.6 percent to a seasonally adjusted annual rate of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2 percent lower than the 4.90 million-unit level in June 2008.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.42 percent in June from 4.86 percent in May; the rate was 6.32 percent in June 2008. Mortgage interest rates have trended lower in recent weeks.
Total housing inventory at the end of June fell 0.7 percent to 3.82 million existing homes available for sale, which represents a 9.4-month supply at the current sales pace, down from a 9.8-month supply in May. Raw inventory totals are 14.9 percent below a year ago.
Here in Longmont, we have seen much of the same throughout the year. However, one change is that we did see was inventory in June down below 20 percent. For the first time this year we have seen sales drop lower than the inventory drop of the previous year.
Looking forward, I believe that we need to see more job growth in the area and inventory to continue to drop in order for our market to improve. With all of the prospect activity the Longmont Area Economic Committee has seen recently and inventory continuing to drop we might see some changes toward the positive in 2010.
Other positives we are seeing in the market are that Colorado is leading the nation in the absorption of foreclosures. Along with great interest rates, this is a great market for buyers.

Common Landlord/Tenant Issues

2009-07-30T17:03:00.002-06:00

First of all it is essential that you have a good lease written. Whether your brother has a great one he uses, your attorney has drafted a great one for you, or you downloaded one off of the net…..you need to make sure you have all of your basics covered. This post will not go over the basics but will touch on common issues that arise in rental homes from time to time. Also, this is just a few....if you have additional input please use the comments or even email me! I would love to add what you want to see.

More Pets than agreed?
-This is fairly common. Your wonderful renters have told you about their cat and you did your job….checked out the references on the animal, collected a damage deposit and wrote “one cat allowed to live in the property” in your lease. But now you go check the sprinkler system and notice several “land mines” in the yard that if from a feline……should be at the zoo. Your best action here is to really just inquire about the additional pet. More often than not you will get the “Oh, we just got him and were going to call you”…right. Now you need to decide…do you enforce this as a violation of the lease terms? Or if you are fine with animals do you try to have a civil conversation explaining your frustration with not telling you first, agree on a deposit or pet rent and amend the lease? Up to you. Most often in this pet situation you have two choices…enforce or modify.

More People Than Agreed Living There?
-This one can be a bit trickier because you may have to deal with city codes on unrelated parties…check with your local code enforcement office to see what your codes are. Once again however you should have stated the number of occupants in your lease and will have the option to once again…..enforce or modify.

Lawn Deterioration?
-This can sometimes be a disaster. Once a lawn goes bad……usually it is twice as hard to get it back. I always recommend writing a strict maintenance section in your lease. Renting a property should not release you from keeping it up. My lease has mandatory lawn upkeep, weed control, proper hydration, etc. Spending $100 on a Craigslist mower to keep on the property can be a real good move….no excuses about not having one. One thing you can do as a landlord is contract a lawn service to come out and either do it all, or just come quarterly for fertilizer, winterization and so on. At such a minimal cost, it will help your curb appeal and help you retain value and quality renters who admire well kept homes. You may even negotiate this service into their rent amount.

Non Payment or Late Payment?
-Again I will stress the importance of a well structured lease. You should have clearly defined late fee procedures and touch on the right to evict. Even have them initial that paragraph….in blood if you wish (joke). You should protect yourself that if they are constantly late, you have rights to “move on” and seek another party. One word of advice that seems to be becoming more and more successful is setting up auto payments or bill pay. There are several third party companies that will set up an auto pay which will debit their account on a day agreed by both parties. The fee to use these services can prove very worth it. Another option is having them set you up as a bill pay account with their online banking. This makes it very easy for them to log on, click pay and bingo!

Best Tenant you have ever had?
I like the BeerYear approach. You bring a six pack of beer and renegotiate for another year! (If all parties are over 21 of course :) )

Have $100? Lets go buy a home!

2009-07-27T16:25:00.001-06:00

I just came across this on the internet.....and we think we have tough competition here in low price ranges!

http://www.homes.com/listing/89135077/?zmc=bmark

LONGMONT RESIDENTS! Come On Down! Art Link is on again!

2009-07-17T17:05:00.003-06:00

For those of you who do not know about ArtLink....Formally Art "Walk" it is a great family night in Downtown Longmont. Vendors, Music, Food and of course Art on display. Lots of activities for kids and great social scene for adults.

ArtLink is a free evening of art exhibitions, music, live theatre, dance and children’s activities. A collaborative effort between businesses and arts organizations, ArtLink transforms downtown Longmont businesses into galleries and promotes cultural arts for three fabulous evenings each year.

More Info Here....Hope to see you there! http://www.artwalklongmont.org/

First Time Buyers! Are you out of time for your $8000 tax credit???

2009-07-13T16:36:00.003-06:00

Time is running out to take advantage of the $8000 Tax Credit! Please take a look at the link below to watch a short presentation (no, this is not a pressure sale, only educational information!) that really breaks down HOW MUCH TIME IS REALLY LEFT to close and take advantage of the funds.

It may surprise you that although Nov. 30th sounds far off, there are several variables that could cause you to NOT GET YOUR CREDIT if you are not educated on it.

http://www.teravisiontech.com/majesticconsulting/postcards2.0/showpostcard.php?postcard_id=22&clientid=86

Click on the link above and it will open a new window. Tom Ninness, the Vice President of Cherry Creek Mortgage will have a very short audio comment about the video and you will see a small link "Tax Credit 7:26", click that for a flash presentation that may open your eyes to some fact you may have not known.

Any questions afterwards please contact me!

http://hunter-homes.blogspot.com/

2009-07-13T15:20:00.001-06:00

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How Come Every Offer We Submit Gets Rejected?

2009-07-13T14:26:00.003-06:00

First Time Buyer: “Lets go take a look at that home you called me about, it sounds like a good deal and brand new to the market!:

Realtor: “Great! I will call now and set the showing up”

Realtor: “Bad News, this home just received two offers this morning! We can still look at this but we may have to offer at or above asking to compete and secure the deal”

First Time Buyer: “Man this is frustrating, seems all of these “good deals” are getting offers on them before we even get a showing in! What is happening Mr. Realtor?”

Realtor: This is true; we are in a popular price range and now competing with other First Timers like yourself as well as several investors that have been waiting for a time to get in……”

I wanted to share a piece with you today on “Cheap Homes Seeing Multiple Offers” as I think more and more of us Realtors as well as Investors and First Timers are having conversations similar to the one above.

There is a lot of activity in certain price ranges in our markets, specifically those homes over 2 bedrooms and under $150,000. Even more so when you make those over 3 bedrooms. Many of today’s first time buyers are out trying to capitalize on the Governments $8000 Tax Incentive to purchase their first home. Likewise many investors are still seeking homes in this range because they make for very desirable rentals. So basically you have two very large groups, interested in the same thing….”good deals”.

I don’t know how many times I have called my buyers about a new listing, only to find out that only days after being submitted to the MLS they have offers in process. Now, this should not deter you from at least asking your Realtor to check in on it, as there still seems to be a good number of low offers being submitted almost automatically based off of numbers alone, in which you may still stand a good chance if you are willing to come closer to asking and have are owner occupant. Likewise it seems that many of the properties my investor clients are interested in and submit offers on, are already seeing several offers at or above list price. Really makes “You’re highest and best offer” important when submitting.

I think that being prepared is key. You and your Realtor should both be prepared and educated on the market conditions for your price range and set your expectations accordingly. If you are shopping in a very desirable area and price range, you may want to be at peace knowing you may need to put offers in on several homes and not get to let down when you get beat out. If you stick with it, get a good game plan and have a Realtor that is on the ball, you should eventually find your perfect house or investment.

Cheers and Happy House Hunting!

What does it mean to "Short Sale"? How is it done?

2009-07-10T09:59:00.002-06:00

What is a Short Sale?

A short sale is a transaction in which the lender, or lenders, agrees to accept less than the mortgage amount owed by the current homeowner. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt.

Why does the amount of Short Sales keep rising?

Due to the recent economic crisis, including rising unemployment, and drops in home prices in communities across the nation, the number of short sales is increasing. Since a short sale generally costs the lender less than a foreclosure, it can be a viable way for a lender to minimize its losses.

A short sale can also be the best option for homeowners who are “upside down” on mortgages because a short sale may not hurt their credit history as much as a foreclosure. As a result, homeowners may qualify for another mortgage sooner once they get back on their feet financially.

How does a Short Sale work?

If you are behind on your payments or will be soon and are in a position to where you do not think that you can stay or become current, you should seek the guidance of both an attorney as well as a real estate professional to help you assess your exact situation.

If you decide a short sale is your best option, you will want to contact a Realtor in your area that has experience or a strong support system for handling short sales. The Realtor will prep you on what to expect and help answer any questions you have regarding the process. Your home will be placed on the market for sale and most commonly on the local MLS or Multiple Listing Service for other brokers to see. IT will be noted in your listing that this sale is “Subject to Lender Approval” or something similar to let others know that this will not be a traditional sale and that the bank will have to approve all offers since you, the homeowner are selling “short” of what is owed.

In the mean time your Realtor or short sale team will submit a package to your lender that includes at least the following: A letter of hardship explaining why you cannot repay your loan, a financial worksheet you fill out showing why you cannot repay your loan, tax returns, paystubs, as well as some disclosures that will give the Realtor permission to discuss your account with your lender. Some lenders require more or less that what is mentioned here, just an example.
When an interested buyer puts an offer in on your home, don’t be offended by the offer. Buyers take several things into consideration when preparing short sale offers and yes, they are at a much lower amount than you paid normally. You will sign the offer and your Realtor will submit the offer and disclosures to the bank for review. This can take anywhere from 1 day to 5 months or more! However, you should be able to find and “expected” timeframe up front.

After negotiations between the lender and the buyer, a contract is agreed upon and the sale will move forward as normal. It is important to be educated on what your bank agreed to as well, as you may be held responsible for the loss on your home. Please contact your legal advisor for more explanation on this or read through this link I came across a few months ago….http://www.creonline.com/articles/art-233.html

Is this time to buy your expensive dream home?

2009-07-09T15:50:00.002-06:00

Has the time arrived to jump in and purchase your Dream Home?

......

Possibly!

......

We all know the Real Estate Market is down, we read the same papers and watch the same news....and basically draw our conclusions that "Wow! This market Sucks!"

Well depending on what side of the Real Estate fence you are on this may or may not hold true. In fact, just like many other things in this economy like cars, electronics and other goods......houses are one of the investments that "If you can, Do It" holds true.

While it is a fact that this may not be the best time to put your home on the market and get top dollar, many people throughout the country have begun to weigh their options on losing a little here to GAIN ALOT there. What does this mean?

Let’s take the luxury home market for instance which in many areas of the country may have 12 months or more of inventory meaning buyers have many many many places to choose from. Of which several are starting to become "distressed" or "bank owned" essentially bringing down comparable home prices. Let’s say you live in a modest 4 bedroom home valued at $300,000 which is near the median home price in "your area". Several economic reasons have brought down the value of your home by almost $40,000 leaving your best shot at a sale around $260,000. Ouch. However your family has been doing well and considered "When things turn around we are going to move into that Golf Course neighborhood we like so much!" These homes in "your area" used to bring in prices approaching $900,000. Recently over the past 18 months however a few of those homes from the builder just did not sell and the builder was forced to sell at a large discount, further a few of the families unfortunately lost their income and became late on some payments. This evolved into a few "Short Sales" (don’t worry, new blog on those coming soon) on those homes bringing down the sales prices to $525,000 on a "used to be $780,000 home"

Now I will not go further into this situation because it is starting to show through that deals are becoming present in all price ranges and like any investment, you always want to look at your loss vs. your potential gain. In this case, this family would potentially gain over $200,000 of future value on their acquisition by taking a $40,000 loss on the sale for their other home.

Obviously Real Estate markets are VERY DIFFERENT and vary neighborhood to neighborhood in most cases. Please consult with your local Realtor to help determine if you stand a good chance to benefit greatly by making your dream move now.

Are you Twitterpated? Your office was recently interviewed

2009-07-09T15:12:00.001-06:00

One of our managing brokers just did an interview with Denver's Channel 7 news about the use of twitter and other social networking sites. I found it very interesting how creative some business's are getting. Realtors all know it is a great way to spread the word about a new listing, and open house, and even a killer price reduction. But interestingly enough you can even get notified when your local bakery "just took your favorite treat out of the oven!"
Social networking has come a HUGE way in the professional world, but we are still in the beginning stages of where technology will not only take our business, but business in general.

Here is a link to the article if interested!
http://www.thedenverchannel.com/news/19194223/detail.html

How exactly do you buy a house?

2009-07-09T15:08:00.001-06:00

Buying this house seems like a good idea but how do I do it?
Having a successful and fun experience on your first purchase is what we strive for.....
To help ensure a great transaction, here are a few steps that will help you along your way, or simply help you understand the process.
1) Find Your Realtor! I use the term Realtor and not Real Estate Agent because as few know, they are not the same thing. Realtors, in order to use this designation must meet a certain level of criteria and are held to a higher code of ethics. More on What is a Realtor? When choosing a broker I would look at two things, referrals from those you trust (friends/family) and of course the most common way is to hit the internet. Nowadays you can find a wealth of information on companies and people like never before. We have Blogs, web pages, reviews, information on companies, valuable tools, etc. You will be able to quickly determine who is a professional in your area. Remember that WE are people too! We like to be involved in activities, have certain beliefs, specialize in certain areas of Real Estate that others do not and so on......basically, look for someone that you see yourself trusting through market knowledge and resources as well as able to share a laugh or similar interests with.....it makes the relationship that much better!
1)/2) I use the 1 or 2 here because you may also start with this, your mortgage broker. This is vital for both you the buyer as well as us the Realtors so that we know exactly what is within your reach from the start. It allows us to help set realistic expectations as well as helps you stay within a budget when comparing property. They will also provide you with a "Pre Qualification Letter" to use when you find the home you wish to put an offer on. Finding your mortgage broker or lender should start once again with those you know, referrals from friends/family and then the Internet. If you chose to find your Realtor before finding your Mortgage Broker, ask your Realtor who they recommend as they will have great local referrals of those they trust as well. Commonly this option may work the best as your Realtor will want to recommend a broker that they can be assured can get the job done with great results.
3) Now you have your Realtor, what do you do? Well this will depend on how you and your Realtor have agreed to work. Basically you are ready to view properties. More than likely your Realtor has given you some options as well as a way to search for listings yourself.
4) Offer and Negotiations Stage. Once you have found your property, your Realtor will work with you on coming to an agreement on what to offer on the property and at what terms. After submission you will either get your offer Accepted, Countered or Rejected. Rejected is fairly self explanatory. Accepted is also in that you are now "under contract" and on your way to home ownership. If the offer gets "countered" this is when negotiations come into play. The seller has looked at your offer and said "Hmm, well how about this instead?" You're Realtor and you will review counters to decide what is appropriate for your situation.
5) Now that you are under contract there are several things to do, I will mention a few of them here.
-Get your Home inspected
-Review the title on the home
-Apply for homeowners insurance
-Optional Inspections for Radon Gas, Sewer pipes, etc
-Review and leases on the property if applicable
-Review the HOA documents and fees and ensure home is in good standing
-Finalize your loan application and/or continue in the loan process to finalize the loan.
There are several other dates and or deadlines that "could" relate to your transaction.
6) Pre Closing will happen when your broker and you deem appropriate. A good Realtor will review what to expect at closing, what you need to bring and answer any other questions that you may have to make sure you are comfortable and understand the process. Dates and times will also be verified.
7) CLOSING! This is a very exciting day for you. If your contract allows, you are able to make one more visual inspection of the property and off to the title company you go! After a series of signatures and explanations or answers to any questions that come up, the sale will be closed and you will be issued keys! (That is of course that your contract states possession at time of closing)

This was not meant to be a full "Step By Step" of the home buying process, rather after several requests I decided to briefly outline what a new buyer should do to "get out and buy a home!"
If you have any questions about the buying or selling process, or need a Realtor, please do not hesitate to call or email me!
Don't forget if you are a first time buyer that your may be entitled to up to $8000.00 credited on your taxes!
Visit us online at http://www.hunterhomescolorado.com

Heating Up in Colorado!

2009-07-09T14:46:00.000-06:00

Can you say "It's Getting Hot!!!!" Over the past few weeks we are starting to see our "Real Summer" with temps in the 90's and High 80's. Along with that there seems to be a lot more activity in the Real Estate Market as well, with many homes under the $200k price point "flying off the shelves" so to speak seeing multiple offers in very short time periods. This is really becoming a popular price range for both the first time buyers as well as the investors that were sitting on the sidelines for the past several months.
Also, 100% financing.......it seems to be back for some. Certain town programs are still offering great down payment assistance as well as the USDA program offering 100% financing in rural areas! However, you may be surprised to see what all is considered "Rural"......you can get very close to Longmont, Loveland, Ft. Collins and more!

If you are considering making a home purchase please give me a call if you want to know more about these types of programs available! FHA even makes it more attainable requiring only 3.5% down. Cant forget the $8000.00 tax credit either!

Enjoy this weather and this beautiful state!