August 2, 2010 

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

WAITING FOR MORTGAGE RATES TO GO DOWN ??   GOOD LUCK !!!

In our 38 years of experience, we have never seen mortgage interest rates as low as they are today.  As an example, last Friday we placed a 30-year, fixed-rate mortgage at 4.25%, with no origination fees or discount points. (This rate required that the loan close within 30 days. A 60 day closing would increase the rate slightly and a 15 year mortgage would result in a slight decrease to 3.875% - 4%.). Today, in the Wall Street Journal, we were shocked to see that wholesale rates had gone down even further.

We don't see how it can get much better than this.

Better buy now !!

NAR TO THE RESCUE

As a part of their efforts to protect the private property rights of Homeowners, the National Association of Realtors recently joined forces with the American Land Title Association to ask U.S.Treasury Secretary Timothy Geitner to use the consumer-protection agency created by the recent financial-reform legislation to outlaw "capital recovery fees".

These proposed fees, also known as "re-conveyance fees" and "transfer taxes" are inserted by developers into covenants governing newly-built subdivisions and commercial real estate developments. They require Sellers of a property to pay a percentage, often 1% of the selling price, to the developer of the property every time it changes hands, for up to 99 years.

Thanks to the efforts of the NAR-led coalition, these fees have been outlawed and the "Wall Street Home Resale Fees" are now a thing of the past.

We can't help but imagine the fade-out to this story: The Homeowner watches as the man on the white horse rides away. "Who was that masked man who just saved my home?" he murmers. The announcer replies, "That was NAR, the loan arranger".

Thanks, NAR.

5 REASONS WHY YOU SHOULD BUY A HOME TODAY

A good friend of ours ran the following article in Keeping Current Matters. We thought was an excellent summary of what we have been telling our clients for the past several months and we are reprinting it here:

This might be the best time to buy a home in American real estate history.

Owning a home makes more sense than not owning a home for the vast majority of families in this country. Let me give you five reasons why.

1. real estate is a Great Long Term Investment

Don't take my word on this. This is what Mike Mandel, former chief economist at BusinessWeek and current Senior Fellow at Wharton's Mack Center for Technological Innovation, had to say

"We've just had the biggest boom and bust in real estate in recent history. Nevertheless, real estate has still greatly outperformed the stock market over the past ten years."

Click here to see his chart which shows the actual difference between historical real estate growth and the stock market history.

2. A Home Is a Better Place to Raise a Family

Don't take my word on this. When Fannie Mae asked current renters for the major reason to buy a house in their  National Housing Survey 2010, these were the answers renters gave (they could pick multiple answers):

  • 78% said it was a good place to raise children
  • 75% said because they would feel safe
  • 70% said because you have control of your own space

3. A Home Creates a Sense of Community

Don't take my word on this. The Federal Reserve Bank of New York just published a paper The Homeownership Gap. The paper explained:

Because owners have a financial interest in their property, they have incentives to take measures that will maintain or increase the value of that property. Some of these measures-such as fixing a leaky roof-are closely related to the house itself. Others, such as investing resources in the betterment of the neighborhood and the community, have broader beneficial effects on the local area, creating what economists call "positive externalities."

4. It's Cheaper to Own Than Rent in Many Parts of the Country

Don't take my word on this. Housing Wire just reported on a Credit Suisse study:

While a segment of the renting population continues to rent, many are looking to dip their toes in the homeownership waters. Credit Suisse said the percentage of median household income needed to pay the mortgage on a median priced home is at a 30-year low. Low mortgage rates and property values makes homeownership more attractive than renting for many. In many markets - including Washington DC, California's Inland Empire, Las Vegas and Phoenix - paying for a mortgage is less expensive than renting.

5. The People Who Do Buy a Home Don't Regret It

Don't take my word on this. Probably the best people to ask if buying a home makes sense are the people who currently own homes. A recent national poll commissioned by Bankrate.com found:

Ninety percent of homeowners say they don't regret buying their home despite a nationwide tsunami of foreclosures, short sales and loan modifications.

It's a great long term investment. It's a great place to raise a family. It gives you a greater sense of community. It's less expensive than renting. People who currently own have no regrets.

Buying a home seems like a "no brainer to me".

NEWS FLASH - ALL BUYERS ARE NOT THE SAME

The expiration of the federal tax credit for Homebuyers has motivated Sellers to re-examine their strategy for selling their homes. We are advising our clients that there is no "One-size-fits-all" strategy that will be the most effective. In general, we have found that the price of the listing is a great indicator of which strategy will be most effective.  

Buyers of homes under $200,000 are most interested in price. They are usually in jobs which are highly dependent on the local economy and can best be motivated to buy with a very competitive price and "reassuring" incentives, such as our Job Loss Protection Program. Call us to learn more about this very effective incentive.

Buyers of homes over $300,000 often have very specific requirements for their homes and, although competitive pricing is essential, they can also be influenced by such incentives as home warranties, life insurance and "discounts with deadlines", which are, essentially, price reductions.

The bottom line, however, is that there are some 'tried and true' incentives which are still the best methods for triggering sales

Here's what works best:

-Price it right. Buyers have access to lots of data, and they'll know if your house is too expensive.

-Offer to pay some of the buyer's closing costs.

-Maximize exposure. Saturate the Internet and all forms of social media with your listing.

-Use great photos, not just good ones. Make sure your house makes a great first impression.

-Make it sing. Listing information must be complete and well-written.

-Curb appeal matters. Spend a little money on flowers, new plants and fresh paint.

-Inside, your house should look fresh, so make sure the paint, carpeting, light fixtures and appliances are updated and clean. Get rid of the family pictures.

-De-clutter. Eliminate one-third to two-thirds of your stuff; hire a stager.

-Network. Sales come together because brains understand homes better than computers.

-Be patient. Statistics say that it takes 21 showings, not including open-house traffic, to sell a house.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

The North Carolina Department of Labor claimed a small Monroe, NC farmer was not paying proper wages to his help and sent an agent out to investigate him.

 Department of Labor employee:  I need a list of your employees and how much you pay them.

Farmer:  Well, there's my farm hand who's been with me for 3 years.  I pay him $200 a week plus free room and board.  

Then there's the mentally challenged worker.  He works about 18 hours every day and does about 90% of all the work around here.  He makes about $10 per week, pays his own room and board, and I buy him a bottle of bourbon every Saturday night so he can cope with life.  He also sleeps with my wife occasionally.

NCDL employee:  That's the guy I want to talk to...the mentally challenged one.

Farmer:  That would be me.