Courtney’s Realty Information Blog

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Identity Theft 

Too Close to Home

We all have heard about people having their identity stolen, but few of us actively strive to curb our chances of falling victim to this crime. I, unfortunately, was forced to become more diligent about protecting my information after I fell victim to identity theft. About 7 years ago my information was stolen and the thief opened an electric and gas account under my name at their residence. Needless to say, this was not a huge case of theft, where I had to deal with massive amounts of stolen money, but someone had enough of my information to open an account. It took weeks to extinguish the debt and notify all of the authorities. I wanted to share this story in hopes that we will all be more diligent about withholding and protecting our identities and information.

What is Identity Theft and Fraud?

This crime occurs when someone wrongfully obtains and uses another person’s personal data in some way that involves fraud or deception, typically for an economic gain. The most common ways to commit identity theft are: Ease Dropping or Shoulder Surfing in public places. Dumpster Diving to get bills, copies of checks, statements, phone numbers in the trash. Stealing Pre-approved Credit Card Applications that you fill out or leave blank and throw in the trash and do not tear or shred in pieces. Online Passwords and Account Numbers can be obtained by hackers or when people respond to emails that state they need your updated account or personal information.

Prevention

1)       Be stingy about giving out your private information to others.2)       Start by adopting a need to know approach. If a person calls you and asks for your personal info or claims they are the bank tell them you will call them back or that they can send you an enquiry in writing.3)       Don’t put more information on your personal checks than you have to.4)       If you leave town have your mail held at the post office or picked up.5)       Check you financial information regularly, check your lists of transactions, make sure you receive monthly bills and statements.6)       Ask for a copy of your credit report, periodically.7)       Maintain careful records of your banking and financial accounts. If you have a dispute or charges against you, you want to have proof and records of your statements and transactions to prove it.        You can freeze your credit file. When you freeze your credit file, nobody even you- can use it. To open a new account you can lift the freeze temporarily if you want to apply for a mortgage, auto loan or personal credit card yourself. For more information visit consumersunion.org/securityfreeze.htm9)       Ask your providers or account holders to add an additional password for you to access your accounts.If you have been a victim contact the Federal Trade Commission to report the situation at 1-877-ID-THEFT. Call the fraud units of the 3 principle credit reporting companies at (1-800-525-6285, 1-888-EXPERIAN, 1-800-680-7289)           

By Courtney Nelson

Broker Associate Keller Williams Executives

Know Your Credit SituationWe often avoid pulling our credit score or fail to monitor it. Now more than ever with the lending industry creating stricter guidelines for home loans, credit scores are vital to the success of obtaining a loan. According to Jocelyn Predovich, a senior mortgage specialist, I work closely with, the days of getting a 100% financing without documenting income, having a 580 credit score and $20 in the bank are over. “With a solid credit history of “on time” payments, a 620+credit score, documented steady income and minimum debt- 100% financing is still possible,” says Predovich. For those self employed borrowers who cannot verify income through tax returns, you must have a down payment of at least 10% and a credit score of at least 660. We have identified a few tips to improve your credit scores. Make sure you pull your credit score semi-annually by a reputable bureau such as TransUnion, Experian or Equifax. If there are errors or items that you are not sure about on the report contact the creditor.

Know Your BalancesBe conscious of the available maximum balance on your cards. If possible never use more than 75% of the available balance. “Once you have a balance over 75% of the overall limit the credit bureaus view this as being maxed out, demonstrating you are a risky spender, dropping your credit score,” said Predovich. She added, “Never use more than your available balance.” Whether you are carrying a balance on a card or have it paid off fully, do not cancel the card. If you are going to cancel a card only cancel cards with less than 1 year of history.  

Establishing CreditIf you need to establish good credit or have not established any credit via financing a car, obtaining a loan or having a credit card there are still a few loan programs available for people with little or no credit. “One of the ways to establish credit would be to become an authorized user on a family member’s credit account. “Make sure the person you are “teaming up” with has a good credit history,” stated Predovich. Some credit card companies will allow you to establish credit by starting you off with a self funded savings account.

Eliminate All Late PaymentsPaying a bill or payment late will adversely affect your credit even if it is your first time being late. You can contact the creditor that reports the late payments and request a good faith adjustment that removes the late payments reported on your account. Predovich also encourages you to pay off any past due amounts or collections but only if they are under 2 years old.  To view your credit report you can visit AnnualCreditReport.com, the only federally-sanctioned and cost-free service.For more information on credit or for any questions please contact me at 720-210-7377 orJocelyn Predovich at 303-325-3578.    

By Courtney Nelson

Broker Associate Keller Williams Executives Realty                                                                

Rental Investment OpportunitiesLocally and nationally people are jumping on the chance to become real-estate investors, specifically, in the rental sector. According to the Wall Street Journal, “It can be lucrative. For the first time in several years, rents are rising in many places, in  part because the sub prime– lending crisis is making it harder for people with marginal credit records to secure mortgages, increasing rental demand.” Locally, vacancy rates are at a six year low at 7.1% while rents are going up gradually with an average of $842.69 a month. With limited new construction this year– primarily “niche” projects like those along light rails or part of “lifestyle: shopping centers,” vacancy rates will continue to drop, according to the Rocky Mt. News. More and more people who have never entered the real estate investor realm or looked at being a landlord are taking advantage of our buyers market in many areas and a surplus of homes.

How to Earn Money Off CampusThe Wall Street Journal featured an article on the great need for off campus housing around universities. College-town real estate is booming in many areas largely in part to the lack of available housing for students and growing college enrollments. According to the NY Times the success of this market is not tied to the general economic performance. It is tied solely to growth and enrollment in schools. “College enrollments are expected to increase by a minimum of 13% between 2004 and 2015,” according to the National Center for Educational Stats. Meanwhile, tighter budgets at many State Schools are likely to limit new construction of new on-campus housing. For instance, CU Boulder provides only 24% of University owned beds for student’s. That is on the high end for a university. So only a ¼ of the student body has access to on campus housing. The NY Times emphasized that “A well located property in a college town is going to be 100% full- you usually don’t see that in traditional rental properties.” They also note that college-town investors can bank on some home-price appreciation for their properties. The opportunity that the university markets present is mainly from buying homes to hold as rental properties. For the most part, except where property values are very high (mainly on the Coasts) college landlords will not experience negative cash flow.

Becoming a LandlordThe idea of becoming a landlord can be daunting but with the right tools and information it can be a positive experience. First you need to make sure you research and purchase a rentable property. Know the going rental rates, know what your mortgage and costs will be to break even. Just like anything in real estate location, location, location is the key! A house will attract only so much rent. If you overpay, you can raise the rent only so much before your property starts sitting vacant.  Make sure you talk to your accountant, there are tons of tax breaks, deductions and write-offs with rental income. For more information on becoming a landlord, visit my Blog for numerous articles on this subject, or call me with questions at 720-210-7377.             

Visit  http://courtneysrealty.wordpress.com/    

By Courtney Nelson

Broker Associate Keller Williams Realty

                                                          

Why Should I Know My Houses Value?Most homeowners do not seek out a formal price evaluation of their home unless they are selling a home or refinancing. However we all as homeowners often try to keep track of our neighborhoods recent sales so that we have a good gauge of what our home is worth. Some of the reasons it is important to know what your home is worth are: 1) Real estate investing. You want to know what your home is worth so you can look at investing in a higher priced home, downgrading or buying a second home or rental. 2) Your tax bill liability. Although we have little say over our assessed value of our home it is important to know you can fight the county assessor’s office if you think you can prove your assessed value is inflated. 3) Insurance purposes. If your house burns down you will need to know the value of your house for rebuilding purposes. It is important that if you have completed major remodeling or upgrading in your home that you have an appraiser or realtor determine the value of your home and notify your insurance company of this amount. 4)Cash-out refinancing. Many refinancing ,line of credits or installment loan programs allow homeowners to use equity from their house for cash. Uses vary from, college tuition, home improvements, retirement, consolidating debt or investing. 5) Lastly the equity from your home can also be used to determine your net worth. Your assets minus your liabilities determine your net worth.

How Do I Determine The Value of My Home?Realtors and appraisers determine house values through a thorough process of researching recently sold and listed comparables. Appraisals are not necessary to establish the value of your home, licensed realtors like myself have software and programs to assist us in valuing your home. Unfortunately we have had some inflated appraisals going on in the past and currently so legislators are cracking down firmly on appraisal practices. When I determine the value of a home I am coming up with a list price range for my clients and completing a comparative market analysis. With every analysis I do I preview as many active homes in the area of my subject property prior to coming up with the value. Although we largely look at the sold prices of homes looking at the active homes (our competition) is so important to see what the buyer will be deciding between. Often realtors will just do a market analysis over the phone or computer with out ever seeing the property this makes no sense. When you are ready to look at your homes value contact me and I can recommend you to an appraiser if need be.

Finding your Homes Value Online?? Zillow.com and Other SitesZillow.com is one of many websites that you may have heard of that claim to help you find the value of your home. As you can imagine an online free resource for valuing your home has become a popular idea…Zillow is now the 10^th most visited real estate site. Zillow compares your home with homes in your neighborhood to come up with values or a ‘Zestimate.’ They also allow the general public to put up virtual listings with out a realtor and allow less motivated homeowners to use the ‘Make Me Move’ feature. This feature allows homeowners to name a price tag for their home-however far fetched. I did some research on Zillow.com on the value of my home and other listings or recent solds of mine and was not shocked to see the estimated value by Zillow was any where from $200,000. lower than the value of the home or $10,000. to $20,000. higher. My problems with the website and other similar ones are: 1) You cannot properly price a home you have not seen. 2) Your neighbor’s home may  not always be the best comparison for your home. 3) Homeowners can permanently edit their homes information on Zillow that is scary!        

Visit www.coloradosells.com

by Courtney Nelson

Keller Williams Realty

Colorado Rejoins Top 10 Fastest Growing StatesThe Census Bureau Report placed Colorado as the eighth-fastest growing state in the United States surpassing last year’s ranking at 11^th.  The report also showed that for the first time since 2002, more residents moved to Colorado from other states than from other countries. While the census report did not breakdown where the growth occurred within Colorado, the western slope counties such as Delta, Chaffee, Pitkin and Montrose have seen an increase of retirees from the baby boomer generation. Other counties with significant growth are Larimer, Weld and El Paso counties. If the population increases as its expected to, this year will be the biggest increase in population since 2001.

Job Growth Predicted to Slow Slightly Job growth is predicted to slow slightly according to a recent University of Colorado Leed Business School Report. Colorado’s economy will slow this year but not enough to prevent job hunters from moving to the state in much higher numbers according to the report.  Colorado job growth is predicted to fall 2.3 percent from 2006 to 1.9 percent this year, but this is still faster than the 1.5 percent rate of job growth expected nationally.

Residential: Continued Buyers Market/Crackdown on LendingA continued buyers market will be the theme for 2007 with a renewed focus on legislation to curb the corrupt lending practices and adjustable mortgage crisis. By the end of 2006, in the Denver Real Estate market, our inventory of homes for sale was up 16% from the prior year. The surplus of inventory could be blamed on the typical challenges homeowners face such as job transfers, job losses, divorces, health problems or relocations, but the surplus of homes this year is probably more closely tied to the record number of foreclosures 2006 experienced. These foreclosures may be due to consumers flocking to risky loans, over building, fraud and inflated appraisals. This problem is sure to spark new legislation in the lending sector. What does this mean for 2007? We will continue to see a surplus of listings. Buyers have the best opportunity to purchase homes at a better price than we have seen in years. Banks are accepting more short sales or short pays in lieu of foreclosures so there are tons of opportunities to purchase these pre-foreclosure homes. Homes in most areas are still seeing appreciation, however location, location, location has never been more important!

Commercial Investors Are Flocking to DenverThis past year marked a record year for commercial real estate with more than $5 billion commercial sales in the Denver Metro Area, a 64.5 percent increase from 2005. According to a study released by Fredrick Ross Co., Denver has now moved beyond the recovery mode of the past five years and into a significant commercial real estate growth stage. Tenants are leasing space in downtown Denver at a record pace and vacancy rates have dropped from 16.1 percent in 2005 to 12.8 percent in 2006. The report also emphasized that the dramatic increase in commercial sales activity is being seen nationwide and is a sign of a healthy economy with unfailing investor confidence in real estate as a desirable asset.Overall, the prospects for 2007 look promising and very exciting. It is not hard for me to see why Colorado is one of the fastest growing states in the nation.

For more information on Denver Area Real Estate or to search all Denver Area Properties, Fix Ups or Bank Owned Properties please visit   www.coloradosells.com      

By Courtney Nelson

Broker Associate Keller Williams Realty 

Second Home BOOM!Despite the cooling real estate market, the second home market is booming and the baby boomers are fueling the surge. Since 2000 there has been a nearly 70 percent jump in the amount of second home closings.  According to Realty Times, “The breakout second home market is cushioning the housing market against a hard landing as the second home sector’s sales pace surges far ahead of both new and resale homes. These second homes are for a wide range of use, vacation, retirement or investment. “The boomers have higher amounts of investable assets than we have seen before. They typically have real estate, as 37 percent of their total assets,” according to Realty Times.

Tax Relief Some people have speculated that the second home market boom is directly related to the tax law changes that occurred with the Tax Relief Act of 1997.  In 1997 Congress revamped the federal homes sales capital gains tax rules, eliminating the long standing incentive for home sellers to “roll over” profits on the sales of their primary homes into larger and costlier replacement houses. Under the old rules according to Realty Times, as long as you kept buying more expensive replacement homes, you could defer capital gains taxation on your profits indefinitely. Under the revised code, married, joint-filing home sellers can keep up to $500,000. of sales gains, tax-free, and only pay taxes on profits above that limit. Single-filing taxpayers can keep the first $250,000. of their gains, tax free. Congress may not have intended this result, but the fact remains: Suddenly, “Homeowners did not have to buy expensive houses to avoid capital gains tax. Instead, buying a smaller less expensive primary residence and a second home with the tax-free gains made second-home buying more financially attractive than ever before.

”Boomers Jump on The Band Wagon With CautionFor those of you who are in the Baby Boomer category and do not own a second home or investment property, the opportunity to invest your money in real estate  can be a great investment. With a buyers market looming throughout the country, now more than ever, buyers can get a “deal”, and as long as your goal is to hold the real estate or invest in resort areas you are bound to reap the benefits.  For those of you who are seasoned real estate investors or just own a second home or investment property, make sure you investigate fully the option of a 1031 Exchange. There are huge benefits in opting to do a 1031 Exchange if you are ready to sell your vacation or investment properties and you can defer your capital gains taxes. Deferring your taxes enables you to use the equity you may have gained in the home to invest in additional properties.  When investing, the fundamentals still apply and diversification remains the cardinal rule. Buyers have to beware that if the real estate market begins to crack that you are not caught with all your money in real estate.

What Does This Mean For The Rest of Us?For the non-boomers, we have to be conscious of this growing boomer population and where they are putting their money. When buying a home, features such as main floor masters, ranch homes and low maintenance yards are increasingly being requested.  Buying homes in resort areas or tourist areas where appreciation is higher would be a wise decision, if possible. For those of us who know of baby boomers who have lots of equity to invest, encourage them to do so and you may have a new vacation home to visit! Please call me with any questions at 720-210-7377!  Or for more information please visit www.realtytimes.com    

Hello Everyone!I am so excited to share with you all a Nation TV show that I was asked to be a part of called “My House is Worth What?” on HGTV.  I wanted to invite any of you that can tune in on April 11th at 8:30 p.m. mountain standard time to watch the show! Last fall I was asked to be a local real estate expert for helping establish the value of a beautiful remodeled home here in Littleton! The shows host is Kendra Todd the winner of the Apprentice, she was a joy to work with. Please check your local listings to verify the time for your cable program. I have included some information on the show below and on our episode.

THANKS!

Courtney Nelson

Keller Williams Executives

720-210-7377

courtneyi@kw.com

SHOW HIGHLIGHTS   Host Bio: Kendra Todd   My House is Worth What? This 7,800-square-foot Soto/Lovelace residence (built in 2003) has five bedrooms and five baths and is located in planned community housing in Dacula, Ga. The home is valued at $700,000. Wednesdays 10:30pm e/p My House is Worth What? gives you the lowdown on the high stakes of home ownership. Go behind closed doors each week as three homeowners in three different parts of the country strategize on maximizing their homes’ value. After a professional assessment and evaluation from local market experts, they’ll get the bottom line on how well their efforts will pay off, with big surprises often awaiting the homeowner in the final number.

My House is Worth What?
Episode HHWW-210

AIR TIMES: • April 11, 2007 10:30 PM ET/PT

Miami, Freeport, Littleton
We go behind closed doors, as three homeowners in three different parts of the country work with local market experts to strategize on maximizing their homes’ value. First, Michael wants to add an art studio to his art deco home in Miami, but to do it he has to see if the repairs and renovations he has made were worth it. Next, they have outgrown their home and now Candice and Dimitri want to move out of Freeport, N.Y., to get a larger place in Georgia. Finally, Val and John did a major remodel on her home, just outside of Denver, but now they are worried that they overdid it and won’t recoup the money they have spent thus far.

---

GUESTS:
Hemley Gonzalez
CEO, Broker, AffordableCondos.Com
E-mail: hg@affordablecondos.com
Website: www.affordablecondos.comBrian Lewis
Real Estate Expert, Halstead Property, LLC
Website: www.halstead.com

Theo Kojak
Contractor, Kojak Restoration
Website: www.kojakcustomwood.com

Courtney Nelson
Real Estate Expert, Keller Williams
Website: http://www.coloradosells.com

Courtney Nelson

     Formerly Courtney Ingram

Broker Associate

Keller Williams Executives        

200 W. Plaza Dr. Suite 200

Highlands Ranch, CO 80129

Mobile- 720-210-7377

Toll Free- 877-288-1526

Fax- 303-948-5964

courtneyi@kw.com

www.coloradosells.com

www.hgtv.com

Colorado Rejoins Top 10 Fastest Growing StatesThe Census Bureau Report placed Colorado as the eighth-fastest growing state in the United States surpassing last year’s ranking at 11^th.  The report also showed that for the first time since 2002, more residents moved to Colorado from other states than from other countries. While the census report did not breakdown where the growth occurred within Colorado, the western slope counties such as Delta, Chaffee, Pitkin and Montrose have seen an increase of retirees from the baby boomer generation. Other counties with significant growth are Larimer, Weld and El Paso counties. If the population increases as its expected to, this year will be the biggest increase in population since 2001.

Job Growth Predicted to Slow Slightly Job growth is predicted to slow slightly according to a recent University of Colorado Leed Business School Report. Colorado’s economy will slow this year but not enough to prevent job hunters from moving to the state in much higher numbers according to the report.  Colorado job growth is predicted to fall 2.3 percent from 2006 to 1.9 percent this year, but this is still faster than the 1.5 percent rate of job growth expected nationally.

Residential: Continued Buyers Market/Crackdown on LendingA continued buyers market will be the theme for 2007 with a renewed focus on legislation to curb the corrupt lending practices and adjustable mortgage crisis. By the end of 2006, in the Denver Real Estate market, our inventory of homes for sale was up 16% from the prior year. The surplus of inventory could be blamed on the typical challenges homeowners face such as job transfers, job losses, divorces, health problems or relocations, but the surplus of homes this year is probably more closely tied to the record number of foreclosures 2006 experienced. These foreclosures may be due to consumers flocking to risky loans, over building, fraud and inflated appraisals. This problem is sure to spark new legislation in the lending sector. What does this mean for 2007? We will continue to see a surplus of listings. Buyers have the best opportunity to purchase homes at a better price than we have seen in years. Banks are accepting more short sales or short pays in lieu of foreclosures so there are tons of opportunities to purchase these pre-foreclosure homes. Homes in most areas are still seeing appreciation, however location, location, location has never been more important!

Commercial Investors Are Flocking to DenverThis past year marked a record year for commercial real estate with more than $5 billion commercial sales in the Denver Metro Area, a 64.5 percent increase from 2005. According to a study released by Fredrick Ross Co., Denver has now moved beyond the recovery mode of the past five years and into a significant commercial real estate growth stage. Tenants are leasing space in downtown Denver at a record pace and vacancy rates have dropped from 16.1 percent in 2005 to 12.8 percent in 2006. The report also emphasized that the dramatic increase in commercial sales activity is being seen nationwide and is a sign of a healthy economy with unfailing investor confidence in real estate as a desirable asset.Overall, the prospects for 2007 look promising and very exciting. It is not hard for me to see why Colorado is one of the fastest growing states in the nation. For more information on Denver Area Real Estate or to search all Denver Area Properties, Fix Ups or Bank Owned Properties please visit   www.coloradosells.com 

by Courtney Nelson, Broker Associate Keller Williams Realty

Real Estate Under the Media MicroscopeRecently the media has immersed itself in the status, forecasts and opinions of our current real estate market. If you haven’t seen any of these headlines “The Housing Tipping Point,’ ‘Housing Bubble Bursts,’ ‘House Values Plummet,’ you are in the minority. Hopefully, this information will explain some of these claims and emphasize that our market is in a transition and not crashing!

Crash or Soft Landing? According to Economy.com, a report titled “Housing at the Tipping Point- The Outlook for the US Residential Real Estate Market,” the nation’s housing market will slip like it hasn’t slipped since the Great Depression, with home price declines in 2007 approaching 20% in some areas where “crash” could replace “soft landing.” Another prediction from a Pennsylvania based firm says nationwide the median sales price for an existing home will decline in 2007 by only 3.6%, however that would be the first full year decline in home prices since the 1930’s. The highest probability of price declines is in metro areas throughout California and New York and both coasts overall. Markets that have been seeing double-digit home price increases in the last decade are the most vulnerable to the depreciation. In general, markets like ours here in the Denver Metro Area and for most of the mid - west and interior part of the country our markets are typically steady markets with more consistent cyclical changes. We rarely see double-digit appreciation or depreciation or dramatic shifts. The Denver Metro Area has been shifting to a buyers market for almost 5 years now, the larger cities and especially coastal metropolitan areas are finally catching up.

The Good News What is shifting? According to Realty Times Consumers and commercial developers are fleeing to the cities where redeveloped downtowns, apartments and more affordable smaller homes are coming into vogue. People are seeking simpler less complicated lifestyles with less of a commute. Builders are shifting to building multi family communities and trying to create urban cores where people can shop, play, dine and recreate within walking distance from their home. These urban communities are no longer just attracting the young single working class, but families, retirees, luxury upper end buyers and lower income. The cooling market is cooling spending jets. The pace of consumer spending will also slow as the housing market recedes from its recent highs, according to the preliminary findings of a study conducted by Lusk Center economists. While single-family markets are cooling, apartment markets and condo conversions are heating up. Apartment rents increased 7 to 8 percent in 2005, the first big jump in more than a half-decade.  

Local GrowthDenver’s core business downtown area has nearly tripled its population in the last 20 years. Slowly, Denver is rehabbing and developing communities that are drawing many types of homeowners to seek out downtown urban living. Some of these communities include:Union Station: Redevelopment of Denver’s train and bus station will be a $1 billion dollar project complete with retail, luxury apartments and commercial development.Gates Rubber Factory: The site of one of Denver’s most famous factories will soon be developed into a vibrant mixed use community, situated close to light rail.City Park South:  City Park South is most know for its proximity to the Museum and Zoo and is seeing a rebirth of new development and rehabbing of older homes. Please call me with any questions at 720-210-7377!  Or for more information please visit www.realtytimes.com or www.denverpost.com

By Courtney Nelson, Broker Associate with Keller Williams Realty

 For more information visit www.coloradosells.com