Denver Holiday Events

 

Celebrate the Holidays in Denver

 Holiday’s Evening at the Littleton Historical Museum– This wonderful evening is full of carolers, story tellers and music reminiscent of times gone by, as well as delectable treats and nostalgia to warm you.  This event is Sunday December 14th from 5:30 to 8 p.m. For More Information please call 303-795-3950

 

9 News Parade of Lights–  For over 30 years, this Holiday Parade has dazzled spectators and warmed hearts. Join thousands of Colorado residents for this great parade Dec. 5th and 6th. The event starts at the Civic Center Park.  Visit  www.denverparadeoflights.com.

 

Nutcracker-    Join Clara in her adventure with the Nutcracker Prince in the Land of Snow and Kingdom of The Sweets. The Nutcracker runs Nov. 29th– Dec. 27th. Ellie Caulkens Opera House, Denver.

 

A Christmas Carol– By Charles Dickens at the Performing Arts Center. This show is featured Nov. 28th -Dec. 27th at the Buell Theatre. Call 303-893-4100

 

Breakfast with Santa  Hosted by  the Wildlife Experience– Enjoy breakfast with Santa. Children will enjoy, face painting, cookie decorating and lots of goodies. Dec. 6th, 13th, 20th and 24th from 9-11 a.m. call the Wildlife Experience in Parker for more information and prices 720-488-3344.

 

Blossoms of Light at the Denver Botanical Gardens– Enjoy exquisite holiday lights which highlight the natural beauty of the gardens. This event runs Dec. 2nd– Jan. 21st. Visit www.botanicgardens.org

 

Wild lights! Denver Zoo-  If your looking for an animal winter wonderland, the Zoo’s the place for you. Wild lights runs Dec. 12th– Jan. 4th 5-9 p.m. nightly . For More Information visit www.denverzoo.org.

 

Denver’s Grand Illumination–Enjoy the grand lighting at several Denver locations. From Union Square to Larimer Square, Skyline Park to Denver Pavilions, culminating at the City and County Building between 6-7 p.m on Nov. 28th.

 

Snack With Santa– Dress up with your holiday best and join Santa Claus and his reindeer (meet a real live reindeer) at the Denver Children’s Museum, Sat. Dec. 6th from 10-1 pm. Visit www.cmdenver.org for more information.

 

 

More Holiday Events

Santa Claus Train– Dec. 13th and 14th, Colorado Railroad Museum, Golden. www.crrm.org

Candy Cane Festival– Dec. 13th Hammonds Candies Factory, 5735 N. Washington St., Denver

Evergreen Holiday Walk– Dec. 5th, 6-9 p.m., Evergreen Lake and Downtown Main Street, Evergreen

Georgetown Christmas Market– Dec. 6th, 7th, 13th, 14th from 10-5 daily on 6th St. in Georgetown

New Years Eve Fireworks– Dec 31st at 9 p.m. and Midnight, 16th Street Mall, Denver

 

 

Making the Right Move in the Current Market

Is Now A Good Time To Buy A Home?

With the financial markets flailing you may be feeling more than hesitant to purchase or sell a home. The people who are successful investors are those who make decisions on long term goals and who act when others are fearful. Warren Buffet recently stated “You should be greedy when others are fearful and you should be fearful when others are greedy.” If you react out of fear you may not be making the right moves. June Hether in a recent Wall Street Journal article summed it up this way. If individuals have access to credit and cash reserves and are not already over exposed in real estate and have a steady income they should buy now.  

 Timing the Market

Some of the key indicators to watch in real estate are home prices, interest rates, the current months supply of active homes and availability and access to loans. Our home prices in the Denver Metro area have on average remained stagnant for approximately a year. Interest rates remain low, loans are still readily available to those with a small down payment and good credit. Our current months supply of active homes has been decreasing to a point where we are nearing a seller’s market. All of these points indicate that this is a prime time to buy. The graph above illustrates the daunting task of timing the market. Unfortunately, most buyers realize the market has shifted only after it is done. Most buyers and sellers make real estate decisions based on more personal and life events. Job changes occur, families get larger, individuals retire or couples divorce. If buyers are in the position to make moves not tied as closely to these general life events, they are better able to time the market and get the best deal. I and my realtor counterparts feel that we are already in a shifting market and our next few years are going to continue to take us into a sellers market and a more stable real estate environment overall.

Visit www.coloradosells.com and click on SURF MY BLOG for more info or to search all Denver Area Properties and Lender Owned properties.

Luxury Real Estate News

 

Luxury News

 

 

  I wanted to give you a brief overview of the Luxury Home market both locally and nationally and touch on some up and coming areas here in Denver. Luxury home sales in the Denver Metro area remain segmented with some areas seeing a steady movement of inventory and others seeing a glut of inventory. One of the reasons for the glut of inventory is an over-supply of homes in the million plus category in some areas where the buyer population is not absorbing them as quickly as the builders had predicted. We are seeing some lender owned luxury homes in the Denver area but in the hotter areas they are being absorbed fairly quickly.

 

Hot Zip Codes

The hottest zip code in Denver appears to be 80121 which encompasses parts of Cherry Hills Village, Greenwood Village and Centennial. Home prices in the Denver area showed the greatest appreciation during the first quarter of 2007 in the 80121 zip code. This area has a wide range of price points from $6.2 million to around $150,000. Most of the movement in this area seems to be in the lower price points. Several other zip codes that faired well and saw increases in the median price and numbers of sales were: Denver 80212, Golden 80403, Denver 80215, Littleton 80125, Evergreen 80439 and Englewood 80111.  Boulder’s 80304 zip code claims one of the highest median home prices of around $600,000. and Denver’s 80209 zip code boasts a median price of over $455,000.

 

Up and Coming Areas

South Park Hill~Located within minutes of downtown and equally as close to the new Fitzsimons medical campus this beautiful old neighborhood is seeing lots of gentrification.  Its proximity to the new retail and development in Stapleton helps the home values. Average sale price: $456,000.

Sunnyside/Berkley/West Highland~Because the Highlands has seen such a housing and population boom the areas surrounding the Highlands are seeing lots of growth with cheaper home prices.. The proximity to downtown allows for easy commuting and a solid rental market. Average sale price: $305,011.

Mayfair/Montclair~Situated just north east of Cherry Creek this quiet older neighborhood has a huge range of home prices and is seeing lots of scrapes and renovations. It also houses a lot of doctors and nurses due to its proximity to several hospitals. The ranges of home prices are from the lower $200’s to over a million. Average sale price: $671,000.

Congress Park~This 17-by-nine block area just south of downtown is seeing lots of growth with condo conversions, renovations of historic mansions and overall growth. With lots of retail and restaurants moving in, as well as its proximity to several parks, this area is booming. Average sale price: $408,000.

 

Although these areas are all urban and part of the trendy movement toward city living, several neighborhoods in the suburbs of Denver are doing well in Littleton, Lakewood, Wheat Ridge, Golden, Centennial and parts of southeast Denver.

 

Luxury Home Trends

Serene Bathrooms– Bathrooms are becoming more of a destination with souped up saunas, LED lights and green elements throughout. Homeowners are looking to bring the spa feel home.

Outdoor Kitchens– Having multiple full size operating kitchens seems to be a trend especially adding additional kitchens to outdoor patios.

Smart Homes–  Homeowners are creating  smart homes with a seamless integration of technology, where people can control their entire home from their computer and ultimately monitor their home remotely.

Anything Green– Creating a sustainable environment is increasingly popular along with the use of any products that are green.

His and Her Rooms– Not only do homeowners want separate closets and bathrooms now but the Mrs. And Mr. must have his and her rooms such as a cigar room or yoga room.

 

Jumbo Loan Products

Loan amounts exceeding $417,000. are considered jumbo loans and despite the medias constant

 portrayal of the difficulty of obtaining financing, there are still plenty of banks offering jumbo products. If you are buying a primary residence be prepared to put between 10-20% down for a down payment and for second homes the down payment requirements are between 20-30%. Here is a snapshot of  some recent rates for Jumbo loans from Jocelyn Predovich at Limetree Lending Group, Jocelyn@limetreelending.com

 

4.55%- 1/1 ARM up to $750,000 loan amount

5% – 1/1 ARM up to $900,000 loan amount

5.25% – 3/1 ARM

5.5% – 5/1 ARM

5.875% – 7/1 ARM

7% – 30 Year Fixed

 

For loan amounts above $900,000. rates on ARMS are .5 percent higher. Jocelyn notes that buyers can sometimes avoid jumbo loans by having a first and second loan because interest rates on jumbo loans are 1-1.5% higher than on conforming loans. 

 

Please let me know if I can assist you with buying or selling an exceptional property!

 

 

Regards,

 

 

 

Courtney Nelson, GRI, ILHMS

Real Estate Broker

Keller Williams Executives Realty

200 West Plaza Dr. Ste. 200

Highlands Ranch, CO 80129

 

courtneyi@kw.com •  720-210-7377 • www.coloradosells.com

 

 

 

 

New FHA and Mortgage News

 

 

 

Mortgage Update: August 2008   Effective August 1, 2008, Fannie Mae has implemented some major changes with regard to seasoning of bankruptcies, seasoning of short sales, seasoning of Foreclosures, & conversions of primary residences into rental properties.  This update will give you all the pertinent information you need to conduct your business in the best manner possible.  These are not all of the guidelines but it will give you the important details of the changes.   Bankruptcy Seasoning ·        All bankruptcy filings, except for chapter 13, must be seasoned for 4 years from the date of discharge or dismissal.  The major change to this was the dismissal addition. ·        Chapter 13 Bankruptcies must be seasoned 2 years from the date of discharge or 4 years from the date of dismissal. ·        In cases of multiple filings in the past 7 years, the borrower must wait a minimum of 5 years from the date of the most recent dismissal or discharge regardless of the bankruptcy action. ·        In cases of extenuating circumstances, borrowers must wait 2 years from the date of discharge or dismissal regardless of the bankruptcy action.   Foreclosures Borrowers that have had previous foreclosures are now under greater scrutiny when applying for financing under these new guidelines.  Below are some of the major bullet points: ·        Minimum time frame a borrower must wait before they are eligible for financing is increased to 5 years from the date the foreclosure was completed. ·        Between the 5 and 7 year time frame a borrower may only purchase a primary residence.  Investment properties and second homes are not permitted. ·        Each borrower applying for the loan must contain a minimum FICO score of 680. ·        Minimum down payment of 10% is required.   Pre-Foreclosure or Short Sales   Fannie Mae views any sale of a property to a third party for less than is owed on the delinquent mortgage to be a pre-foreclosure sale.  (We call them short sales)  The new guideline states that the borrower must wait for a minimum period of 2 years from the date of the sale, before being eligible to buy a new primary residence.  Currently, there is no exceptions to this due to extenuating circumstances.   When speaking to clients this is one of the reasons why short sales are more preferred than a foreclosure – they can buy a primary residences in 2 years instead of 5!   Conversion of Primary Residences to rental property VERY IMPORTANT THIS HAPPENS A LOT Changes to guidelines with regards to converting a primary residence into an investment property are extremely important.  Fannie Mae felt that the previous guidelines that stated a borrower simply had to supply a 12 month lease agreement and lenders could offset the monthly mortgage payment by the amount stated in the lease is no longer valid.  The new guidelines state that if a borrower wants to purchase another home and turn their current primary residence into a rental, the following will apply: ·        The borrower must provide proof they have at least 30% equity in the current primary residence.  This can be determined by an appraisal, AVM, or BPO. ·        The borrower must provide an executed 12 month lease agreement on the current residence to offset the mortgage payment.  Also, the borrower must provide receipt of the security deposit and show the security deposit has been deposited in the borrowers account. ·        75% of the monthly lease amount will be used to offset any mortgage payment.  25% is used to account for any vacancy that may occur. If 30% percent equity cannot be determined, the following will apply: ·        Rental income on the current property may not be used to offset the mortgage payment.  Borrowers must qualify for both mortgage payments. ·        Borrowers must have at least 6 months PITI reserves for both mortgage payments; sourced and seasoned.   Please understand these guidelines only apply to conventional financing and does not include FHA or VA.  If you’re wondering what you can count on in today’s market, the answer is constant change.  Feel free to give me a call at 303-325-3578 to go over any scenarios or questions.   Thank you,   Jocelyn Predovich Senior Mortgage Consultant 303-325-3578   The information contained is this newsletter is for educational purposes only and should not be construed as investment and/or mortgage advice.  Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors. If you wish to no longer receive this newsletter, please reply to this email with “REMOVE” in the subject line.

 

 

 

 

  

   

 

Enjoying A Dry Warm Summer Here in Colorado

     

 Environmentally Friendly Remodeling and Updated                                                          

A Trend Here to Stay

The green movement is in front of us daily but as energy prices rise and real estate values remain unstable across the nation, energy efficiency and green products will remain a hot topic. Being aware of green trends, is especially important in real estate, where green products and building concepts are increasing home values and desirability along with helping owners increase their homes efficiency. According to McGraw Hill Construction, as much as 20% of new construction will be green by 2012. A recent study of real-estate listings in Seattle found that certified green homes sold for an 11% premium per square foot and sat on the market for a quarter less time.

The Ins and Outs of Green

Gwendolyn Bounds, with the Wall Street Journal, lists several tips for going green. 1) Recycle your old cabinets, flooring and appliances by donating or selling them to programs like Habitat for Humanity or sell them on craigslist instead of throwing them away. 2) Use local contractors or green trades’ people. 3) Use water- based paints and finishes in your home. 4) Insulate with cellulose, formaldehyde-free fiberglass with recycled contents or VOC- free urethane foams or recycle denim. 5) Conserve by using floors + countertops made from recycled and sustainable products: scrap metal, glass, bamboo, concrete, wood and paper.

Further Ideas

Flooring- Wood products for floors are in demand but designers are turning towards harvested woods that quickly regenerate themselves like Lyptus and bamboo, so they’re less expensive than oak hardwoods. Other ideas are cork, linoleum, recycled rubber…the options are endless.

Paint- Use paint with little or no VOC’s. VOC’s are solvents that disperse into the air as paint dries, VOC’s can contribute to smog, the smelly odor of paint, as well as kidney, liver damage and respiratory and memory problems.

Countertops- Most consumers want their counters to be stain and scratch resistant and durable. Natural stone, such as granite can satisfy those criterias but tend to consume a lot of energy in transportation. There are now recycled paper-based countertops, concrete, engineered stone, made of particles from granite and quartz or enviroglass.

Windows- Adding more energy efficient windows to a home can drastically reduce energy costs. For more natural light add sky lights or solo tubes. You can also coat your windows with Solarban 60 coating to keep more heat in the home in the winter and reduce sun-generated heat in the summer.

Insulation- Instead of the old fiberglass batt sheeting look into a blow-in-blanket system or spray foams. Fiberglass is a know carcinogen and leaves gaps around pipes and fixtures unlike the new foam made from cellular plastic. The new products provide superior energy efficiency and improved indoor air quality. For more information visit www.nahbgreen.org , www.energystar.gov , www.ubma.org , capital distributing.com or buildinggreen.com.

Visit www.coloradosells.com and click on SURF MY BLOG for more info!

 

 

 

 

 

 

          

“Real” Real Estate News

 Sifting Through The Real Estate Headlines                                                               

Denver’s Shifting Market

Despite what our media portrays, Denver’s Real Estate market is improving and has faired much better than most major metropolitan cities. Colorado remains one of the top 10 real estate markets in the nation yet we are also in the top 10 for foreclosures. One of the reasons is the high amount of sub prime financing that was obtained during the last 5 years. The 100% financing can work if you have a market that is substantially increasing but much of our market has remained flat overall for a few years leading to a crisis when these loans adjusted. Denver usually runs counter to the rest of the nation and we are seeing great signs that our market is improving and will see another great run. Our inventory of active homes appears to be decreasing on average and is rapidly decreasing in several sub-areas of the Denver metro region. When we see our active home inventory shrinking it usually indicates a move towards a more balanced market and a shift towards a sellers market. Our month’s supply of inventory is currently 7 months across the Denver Metro Area and that is nudging closer to our equilibrium of 6 months. Overall our market is correcting itself and as interest rates remain low our buyer interest should increase.  Our home sales to date are up 5% from last years February and January sales.

Foreclosure Data

Colorado has moved from 1^st in foreclosures nationwide in 2007 to 5^th place as of this January. Colorado recently received 1.5 million dollars in the form of a federal grant for foreclosure prevention. We have also seen foreclosure law changes allowing homeowners a longer period of time to remain in their home, come current or sell their home to avoid foreclosure. There was a recent study done by the Federal Reserve that shed some light on Denver’s foreclosures. According to the report, Denver area sub prime loan originations peaked earlier than the nation in 2005, and very few sub prime loans were originated in 2007. More than 60% of the Denver Area sub prime loans are current. A decline in short-term interest rates in January and February should help those borrowers avoid painful rate readjustments. There are still a large number of foreclosures and good deals out there but the public perception is that these homes are trading at 80% of asking or lower, whereas most are trading between 90-95% of original list price. Don’t forget our interest rates are still the lowest we have seen in years and last time we had a influx of foreclosures in the 1980’s we had major job losses, no major movement to our state and interest rates above 10%.

Growth Areas and Outlook

There still continues to be an urban movement in the older more developed parts of the city with gentrification occurring from Montclair to The Highlands on down to Platt Park. Commercially, the acquisition of Denver-area real estate properties is expected to remain healthy and CB Richard Ellis Inc. predicts rent increases will continue to push building values up. Rental vacancies in residential and commercial remain low with rental rates increasing. As a rule of thumb when commercial industry is booming and building, our residential market tends to follow shortly!

Visit www.coloradosells.com and click on SURF MY BLOG for more info!

720-210-7377

 

 

 

 

 

 

          

 

Built Green Real Estate Resources

http://realtytimes.com/rtpages/20070406_greengrowth.htm

 http://realtytimes.com/rtpages/20070316_greencontract.htm

http://realtytimes.com/rtpages/20070906_greenbuilders.htm

Falling into Autumn in the Rockies

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)           

Credit 101- Managing and Improving Your Credit Score

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.    

Capitalizing On the Rental Market

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/