Colorado Springs Colorado Real Estate News & Listings Presented By Salzman Real Estate Services, Ltd

Enewsletter July 26,, 2010

Mon, 26 Jul 2010 15:03:00 GMT

July 26, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

THE NEWS AIN'T ALL BAD

Locally, initial claims for unemployment are down 28.6%. The unemployment rate is down to 9.1%. New auto and truck sales are up 7.2%. Taxable retail sales are up 7.2%. The hotel occupancy rate is up 77.7% and foreclosure filings are down 7.9%.

SO, WHY DO I HAVE THIS UNEASY FEELING?

Because local Realtors report that telephone requests for information about listings have dried up and appointments for showings by other Realtors have almost disappeared.

and

Because local Lenders are reporting a big reduction in calls from "Rate Shoppers". Calls from individuals who need mortgage money have dried up and the only calls that are coming in are from people who want to refinance.

and

Because the chief Economist for NAR is predicting an increase in interest rates as a result of the recent overhaul of the financial industry. The $18-$29 billion predicted annual administrative cost of that legislation will increase lenders' costs and will be passed along to consumers. (You remember consumers, don't you?. They are the ones that the law was passed to protect).

The positive side of all of this s that Homeowners are taking their money out of the stock market and using it to remodel their homes or buy investment property. That's why the story that appears, below, should interest you.

BIG SUPPLY PLUS LOW DEMAND = OPPORTUNITY

Although Colorado Springs has a lot going for it and is better off than most other parts of the country, the local Real Estate market outlook does, necessarily, reflect the national Real Estate market outlook....and that's not a very happy picture. The Wall Street Journal summed up the problems facing the national market in two recent articles, "Housing Market Stumbles" (July 21, 2010) and "Home Inventory Rises as Sales Fall" (July 24, 2010).

Some of the various reasons for the current grim National outlook are:

Tremendous decrease in housing starts (Locally, single-family home permits are down 12.3%. Builders are uneasy about the future.)
Weak job growth (Locally, wage and salary jobs are down 1.7%)
Elimination of the federal tax credit for home buyers, which resulted in:
A decrease in Real Estate sales (Buyers chose to close before June 30, 2010, in order to take advantage of the federal tax credit.

One result of these negative pressures is an increase in the inventories of new and resale home inventories.

To what extent does our local market reflect this growth in inventories? Well, in Colorado Springs, the month of June showed an increase of 6.6% in listings over May, 2010 and an increase of 15.4% over June, 2009. These increases translate into a growth of inventory of available homes to a level that cannot be absorbed within a reasonable time frame.

What accounts for this sudden growth in inventory? Well, keep in mind that, basically, there are three types of Sellers with homes for sale. First, there are those individuals who have to move out of their homes. They have changed employment or lost their jobs .They are worried about foreclosure..A personal crisis requires them to move closer to some member of their family, etc., etc... The bad economy has contributed to an unusual increase in this type of listing.

Then, there are those Sellers who don't have to move, but would like to cash in on the value of their homes and move up into bigger, better homes. These individuals, misled by the recent, artificial upsurge in sales created by the deadline for the federal tax credit, have concluded that the time is now ripe for them to place their homes back on the market. Because they don't really have to sell, they are not very aggressive in their pricing and are not that interested in negotiating.

(This type of Seller puts the Realtor in an awkward position. Because the Seller's asking price does not reflect realistic market pricing, the house does not attract prospective Buyers. Furthermore, Lenders' appraisals will come in far below the asking price, thus killing the sale. In such instances, everyone is unhappy. The Buyer doesn't see any activity. The prospective Buyer and his Realtor waste a lot of time and the entire deal falls through. For these reasons, responsible Realtors tend to refuse this type of listing).

Finally, there are the foreclosures and short-sales that Lenders are now listing. Unfortunately, these listings are slow to sell, primarily because of unrealistic pricing by the lenders and slow response time to offers (Almost every Realtor has horror stories about losing sales because a lender would not respond to their offer in a timely manner).

Right now, all three types of Sellers have placed homes on the market and our inventories have grown accordingly.

The bottom line for Sellers is: If you really want to sell, work with your Realtor to establish a realistic listing price and be ready to negotiate.

The bottom line for Buyers is: Low mortgage interest rates and an oversupply of homes for sale make this a great time to buy your new home.

The bottom line for investors is: CALL ME. The following story shows how our present market offers a once-in-a-lifetime opportunity for investors.

A BEDTIME STORY FOR PROSPECTIVE INVESTORS

Here's a true story that should make prospective Investors sit up and take notice.

On July 23, 2010, we negotiated a sale for a Buyer, on a home that sold for $313,500. (A comparable home in a similar neighborhood sold for $346,000 on July 2, 2010). Our Buyer paid 25% down and we obtained a 30 year, fixed-rate mortgage @ 4.75%. We required the Seller to pay all Buyer's closing costs, including prepaids.

The PITI monthly payment will be $1530 and the home will rent for between $1800-$1850.

Based upon just these factors, here's how our Investor will realize a minimum 9.4% annual rate of return on his investment:

Loan amount = $235.125
Buyer will receive income tax deductions of $11,090 for interest paid and $2,737 for property taxes paid
At a tax bracket of 28%, the income tax savings to the Investor will be $3,872/year, or, $323/month.
That makes the monthly cost approximately $1,200 ($1,530 - $323)
Minimum rental income should be $1800

Bottom line: The Investor will put about $600 per month into his pocket. That's $7,200 annual income.

Considering the original investment of $78,375, that income of $7,200 represents a rate of return of at least 9.4% ($78,375 divided by $7,200).

Additional factors that will benefit the Investor are:

Depreciation write-offs of $9,580 annually ($313,500 minus $50,000 for land, divided by 27.5 years)
All fixed expense write-offs
Local rentals are projected to rise
A conservative estimate of just 3% appreciation will increase the home's value by $9,000 - $10,000/year.
Inflation will add even more value to the home

Considering all of these benefits, our Investor should realize a total annual rate of return of 20%-25% annually, on his original investment.

If all of this sounds too good to be true, consider the following:

We currently have access to all-time-low mortgage interest rates
Because of the large number of foreclosures and short sales, there is now a high level of demand for high-quality rentals from the people who have had to move out of their "formally-owned" homes
Rental vacancy rates are near record lows, because of increased demand
There is a Buyer's market because of the high inventory of available homes
And, perhaps an even more persuasive factor: INFLATION IS COMING

Call me and let's discuss this opportunity !!!

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

REAL ESTATE AD EUPHEMISMS

Starter home - run down

Needs TLC - Major structural damage.

Spacious - average size

Charming - small

Comfortable - very small

Cozy - very, very small

Low maintenance - no lawn

Easily maintained - Requires at least two gardeners and live-in maid.

Convenient - Located on freeway entrance ramp.

Walk to stores - nowhere to park your car

Close to lakes - Impossible to park from April to October.

Natural setting - forget about planting, the deer will eat everything

Secluded setting - far, far away

Park-like setting - there's a tree down the block

Executive neighborhood - high taxes

Sophisticated City living - Next to a noisy bar.

Old World charm - Has some woodwork, needs cleaning.

Contemporary feeling - Has no woodwork, needs cleaning.

Security system - Neighbor has a dog.

Neutral decor - brown walls.

Unique city home - Used to be a warehouse.

Daring design - Still a warehouse.

Sophisticated - Black walls and no windows.

Prestigious - expensive

Bright and sunny - Venetian blinds not included

Useful outbuildings - No inside toilet.

Motivated Seller - Has been on the market for 14 years.

Much potential - Grim.

One-of-a-kind - Ugly as sin.

MUST SEE TO BELIEVE - An absolutely accurate statement.

Enewsletter July 19, 2010

Mon, 19 Jul 2010 01:00:00 GMT

July 19, 2019

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

IF YOU HAVE EVER CONSIDERED BUYING INVESTMENT PROPERTY, NOW IS THE TIME TO DO IT

IF YOU HAVE NEVER CONSIDERED BUYING INVESTMENT PROPERTY, NOW IS THE TIME TO GIVE IT SOME SERIOUS THOUGHT

All of us are interested in making good investments. The good news is that today's real estate market is offering investors the chance to make some terrific investments in residential investment property. Just look at the facts and examine why this opportunity now exists:

Lenders are reporting an excess of available money and a low demand for loans. As a result, in an attempt to encourage borrowing, lenders have lowered their mortgage rates to all-time lows.
Foreclosures and short sales are adding to the inventory of available homes for sale, thus driving selling prices down.

Bottom line: Home prices and mortgage interest rates are both at record lows

The families which have lost their homes to foreclosures and short-sales are now in the market for high-quality rentals.

Bottom line: Investors are currently renting their newly-acquired properties almost immediately. (We recently closed on two separate rental properties which were leased on the same day they closed.)

Out-of-control government spending will definitely create inflation, which will increase both the future value of the home you buy today, and the mortgage rate you will have to pay, if you don't buy now.

Bottom line: The great deal you can make on Investment Residential Real Estate today will probably turn out to be one of the best investments you ever made. Call us and let's talk about the possibilities. The timing will never be better.

HUD RELEASES 2009 AMERICAN HOUSING SURVEY

HUD's 2009 American Housing Survey (AHS) provides one of the most thorough views inside the homes of millions of Americans and reveals everything from the square footage of the unit to how many homes have front porches, garages or even usable fireplaces. First conducted in 1973, the survey's long-term design allows analysts to trace the characteristics of U.S. housing units and their occupants. For example, the 2009 survey reveals that significantly more American homes are larger and have more bedrooms and bathrooms than homes 37 years ago. In addition, homes of 1973 were significantly less likely to have central air conditioning and other amenities considered commonplace today.

Here are just some of the findings of a comprehensive national sample of the more than 130 million residential housing units released recently by the U.S. Department of Housing and Urban Development.

There are 130,112,000 residential housing units in the U.S.; 86% of these are occupied. The median age of 'the American home' is 36 years, though the survey finds that homes newly constructed since the 2007 AHS are generally larger, more expensive, have more bedrooms and bathrooms and are more likely to include amenities such as central air conditioning. Some of the other key findings of the 2009 AHS include: 68% of U.S. homes are owner-occupied; 51% are located in suburban areas; 29% in central cities; and 20% outside metropolitan areas; and 18% are located in the Northeast; 23% in the Midwest; 37% in the South; and 22% in the West.

Unit size
-The median size of an occupied home is 1,800 square feet (compared to 1,610 in 1985, the earliest year this information was collected), with owner-occupied units being larger than renter-occupied ones. Newer Homes are also usually larger, with a median size of 2,300 square feet.
-Median lot size for single-family homes, including mobile homes, is 0.27 acres (compared to 0.36 acres in 1973) with owner-occupied units generally having more land than renter-occupied ones.

Rooms
-Most homes (53%) have six or more rooms, with owner-occupied units generally having more rooms than renter-occupied ones. In 1973, only 39% of homes had six or more rooms. Newly constructed homes generally have more rooms - 65% have six or more rooms.
-Most homes have three or more bedrooms (64% compared to just 48% in 1973). -New homes generally have more bedrooms - 80% of them have three or more bedrooms.
-More than half of U.S. homes (51%) have two or more bathrooms compared to just 19% in 1973. Again new units have more bathrooms, with 89% of them having two or more bathrooms.

Equipment
-All units have a refrigerator and kitchen sink and almost all homes (99%) have a cooking stove or range. Overall, 98% of units have a full kitchen.
-The most commonly used cooking fuel is electricity (60%) followed by piped gas (35%).
-Two-thirds of the homes (66%) have a dishwasher, 51% have a disposal in the kitchen sink and 3% have a trash compactor. New units are more likely to have these amenities.
-More than eight in ten homes have a washing machine (84%) and clothes dryer (81%).
-About two-thirds of U.S. homes (65%) have central air-conditioning and another 21% have window units - new units are more likely to have central air-conditioning (89%). By contrast, only 17% of U.S. homes had central A/C in 1973 although 30% contained window units.
-About nine in 10 homes (93%) reported a smoke detector while 36% reported having a working carbon monoxide detector.

Amenities
-Most homes have a telephone (98%), porch, deck, balcony or patio (85%) and a garage or carport (66%).
-About half (48%) have a separate dining room and three in ten units (30%) report two or more living rooms or recreation rooms.
-About one-third (35%) have a usable fireplace.
-New construction is more likely to have all these amenities.

To see the complete HUD report, click here.

BET YOU CAN'T ANSWER THIS ONE

Which Real Estate network dominates the Real Estate market???

Salzman Real Estate Services, LTD is proud to be an affiliate of Leading Real Estate Companies of the World, the network that is 27% ahead of its closest competitor in sales volume, with nearly one million sales in 2009. Leading RE had 27% of the total home sales market among the top 500 U.S. real estate firms. To see more about Leading RE, click here

If you already knew this, you deserve a reward, so, I will buy you a cup of coffee the next time you stop by the office.

SALES TAX REVENUES ARE UP. THAT'S A GOOD SIGN

The latest figures show city sales tax revenues were up for the eighth month in a row. In their July 16^th report, the city of Colorado Springs reported an increase of 7.16% in sales tax revenues, the second largest increase in 2 ½ years. They also reported that revenues for June 2010 were up 5.65% over June 2009.

The increase in sales tax revenues were attributed to an increase in consumer confidence and spending and the arrival of an additional 3500 troops from Afghanistan at Fort Carson.

The Sales tax revenues help fund our police department, fire department and parks, so the increase will benefit all of us.

WEIGHTS ARE DOWN, THAT'S ALSO A GOOD SIGN

Yesterday, the CBS Sunday Morning Show discussed the problem of obesity in America, and Colorado Springs was boosted in a segment entitled, "Welcome to Thin City".

Colorado was cited as the least obese state in the U.S. and Colorado Springs residents were said to be "the most fit", and more involved in outdoor activities. I do feel guilty, however, that, as I was watching this wonderful story about Colorado fitness, I was sitting on my couch.

To see more about this great PR coverage of our city, click here. If you don't already live here, after you see this story, you'll wish you did.

HERE'S THE TOP 6 PROPERTY VALUE RAISING PROJECTS

Most homeowners enjoy the every project that they have made in their home. They like to add, improve and make changes all over the house for them to live comfortable and pretty satisfied of what they are seeing around. But it isn't all about that because everything that we do in our home can add to its real estate property value. And when the time comes that you'll be decided to sell your home you will gain get more money out of these projects that you've done. According to BrokerAgentSocial, here are some of the projects that will help to raise your home value.

Basement Improvements - This is one of the most important remodeling works that you can do in your home. You can improve your basement by finishing, adding flooring, insulation, drywall and lighting. Furthermore, you can transform this into a usable place in a way of adding a living space. A living space will cost you less than adding a whole new room.

Gutters improvement and repairs - If you want your home to be more appealing in its outside looks, gutters should be the first exterior features that you must consider to work on. Gutters repairs and maintenance will protect the rest of the home exterior from water damage. Maintain gutters regularly by patching holes, cleaning of debris that stop water from flowing and making sure that it is always in place and secure.

A major lawn makeover - the lawn appearance effect the overall value of home that simply means irregular appearance of lawn detracts from the property overall appearance. Getting the lawn in shape is the first step in lawn total makeover. Test the soil to know if what chemicals will help the grass grows healthy and reseed bad areas.

Adding fence around - fence can give you privacy, security, protection and enhance the outside look of your home. But before you start this outdoor home project of yours make sure to check the home owner's association rules if it's allowed. Some neighborhoods don't allow some fencing materials, and rules on how high should be the fence.

Update bathroom fixtures and hardware - Like any other parts of the house, little changes go a long way when it comes to bathroom updates. You can make the bathroom look stylish by just simply replacing the old hardware and fixture. If you are not contented enough of how the way it looks you can replace and upgrade your sink the trendy and modern one.

Replace outdated kitchen appliances with new ones - Many Real Estate professionals believe that this part of the house should be focused more when it comes to renovation and upgrades. They believe that simple upgrade to this room will bring back a enormous investment in return. One way of improving your kitchen that could entirely change the overall looks is by upgrading the appliances.

BITS AND PIECES

HOME OWNERS STILL LOVE THEIR HOUSES

Daily Real Estate News, quoting from a news release from Bankrate.com, tells us that, despite declining home prices, 90 percent of Americans don't regret buying their current home.

Among the 9% who do regret the purchase, most say they are unhappy that they can't sell their home and move elsewhere, or, they can't afford their monthly mortgage payment.

Some 79% of those polled say they have a fixed-rate mortgage. Among those making over $75,000 per year, 90% say they have a fixed-rate mortgage.

HOME PRICES CONTINUE GAINS OVER 2009

CoreLogic, in its monthly index, states that U.S. home prices, including distressed sales, increased by 2.9% compared to the same month last year.

May was the fourth straight month prices showed a year-over-year increase.

"Home price appreciation stabilized as home buyer tax credit sales peaked in late spring", says Mark Fleming, chief economist for CoreLogic. "But, given that the labor market and income growth remain tepid, we expect prices to moderate and possibly decline the rest of the year".

JOKE OF THE WEEK

She spent the first day packing her belongings into boxes, crates and suitcases.

On the second day, she had the movers come and collect her things.

On the third day, she sat down for the last time at their beautiful
dining room table by candlelight, put on some soft background music, and
feasted on pound of shrimp, a jar of caviar, and a bottle of Chardonnay.

When she had finished, she went into each and every room and deposited
a few half-eaten shrimp shells, dipped in caviar, into the hollow of the
curtain rods. She then cleaned up the kitchen and left.

When the husband returned with his new girlfriend, all was bliss for the first few days. Then slowly, the house began to smell. They tried everything; cleaning and mopping and airing the place out. Vents were checked for dead rodents, and carpets were steam cleaned. Air fresheners were hung everywhere.

Exterminators were brought in to set off gas canisters, during which they had to move out for a few days, and in the end they even paid to replace the expensive wool carpeting.

Nothing worked. People stopped coming over to visit... Repairmen refused to work in the house....The maid quit...

Finally, they could not take the stench any longer and decided to move.

A month later, even though they had cut their price in half, they could not find a buyer for their stinky house. Word got out, and eventually, even the local Realtors refused to return their calls.

Finally, they had to borrow a huge sum of money from the bank to purchase a new place.

The ex-wife called the man, and told him that she missed her old home terribly, and would be willing to reduce her divorce settlement in exchange for getting the house back...

Knowing his ex-wife had no idea about the bad smell problem, he offered to sell the house to her for about 1/10th of what the house had been worth .. but only if she would sign the papers that very day. She agreed, and within the hour, his lawyers delivered the paperwork.

A week later, the man and his new girlfriend stood smirking as they watched the moving company pack everything to take to their new home.......

including the curtain rods!!!

Enewsletter, July 12, 2010

Mon, 12 Jul 2010 01:00:00 GMT

July 12, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

LOCALLY, HERE'S SOME GOOD NEWS, FOR A CHANGE

On July 11, 2010, the Gazette reported the following items:

The local unemployment rate has dropped to 8.3% (That's a drop of 21.7%)
Single-family home permits are up 25%
New car and truck registrations are up 38.3%
Taxable retail sales are up 10.2%
Hotel occupancy rate is up to 68.1%
Foreclosure filings are down 18.4%

The Gazette also listed some local employers who have announced job openings

Everest University Online plans to hire 400 employees during the next 10-24 months
USAA to add 237 jobs this year
Affiliated Computer Services to hire 150 employees this year
PRC to hire 150 sales reps at their local call-center
Pikes Peak Behavioral Health Group has 38 open positions
Intelligent Software Solutions to hire up to 30 software engineers
CareCore National will hire 20 people, in addition to the 51 already hired
Firstsource Solutions will hire 15 collection representatives
Braxton Technologies has added 25 people this year and will hire 12 more software engineers
Infinity Systems Engineering has some openings
Ace Hardware Retail Support Center has openings
Comcast has 20 openings at their local call-center

The bottom line is that 4,500 more area residents were employed in May than in January and 1,000 more job openings are scheduled for the coming months. All of these facts indicate that the Colorado Springs area is coming out of the recession and that companies are viewing our area as the place to move and expand.

NATIONALLY, NEWS IS ALSO GETTING BETTER

Realtor Magazine cites a recent survey by Relocation.com which indicates that only 1% of their respondents said they were moving because of foreclosure. This compares to their February survey which found that 5% were moving because of foreclosure.

In February, the Relocation.com survey found 13% of respondents were moving because of job loss, but in June, only 4% moved for that reason.

In the June survey, 4% said they planned to purchase a first home when they moved, while 10% said they planned to move to a better home in a nicer neighborhood.

Some 18% of June movers were previous homeowners who moved and were purchasing a new home, up from 12% in February, while 12 % were former renters who planned to purchase a home in the new locale.

All of these numbers demonstrate that the country is recovering from the recession.

GLOBAL INTEREST IN U.S. HOMEOWNERSHIP GROWS

International home buyers are increasingly attracted to property in the U.S., according to the National Association of Realtors. International buyers are coming from 53 different countries around the world, with the top 4 being Canada, Mexico, the U.K. and China/Hong Kong. International buyers were reported in 39 states in 2010, but a slight majority of the total buyers were concentrated in Florida, California, Arizona and Texas. These four states accounted for 53% of purchases and have remained the top destinations for the past three years, with Florida and California remaining the top two destinations.

The median price paid by international buyers for a home in the U.S. was $219,400, a decrease from 2009's median price of $247,100. However, the median price paid by foreign buyers was significantly higher than the overall median price, which was $172,500 in 2009. On average, foreign buyers tend to purchase closer to the upper end of the market; 16% of the total international purchases were for homes priced at more than $500,000.

55% of foreign buyers paid all cash, because of the difficulty in establishing credit in the U.S. Over 34% of potential foreign buyers were unable to complete transactions because of the problem of acquiring financing.

During the past 12 months, foreign buyers are estimated to have purchased $66 billion of U.S. residential property, or 7% of the residential market.

Realtors report that the changes in the value of the U.S. dollar and the perception that purchasing a home in the U.S. is more affordable are the two top reasons for the increased foreign interest. U.S. homes are also seen as holding their value better.

LATEST LOCAL STATISTICS LOOK GREAT !!!

Local home sales in June were 913, an increase of 4.6% over June of 2009. This represents a consistent year-over-year increase for 13 straight months. The median price of $205,000 showed a gain of 5.4% over last June and rose above $200,000 for the first time in 2 years. How many other cities can show that kind of growth?

Unfortunately, these very healthy figures will probably produce a temporary decline in prices in the months ahead. Sellers, encouraged by the increases in sales and prices, are putting their homes back on the market and many other Homeowners, for a variety of reasons, must relocate during the summer months. Both of these groups will add to the available inventory and this will predictably trigger a short-term price decline. The result will be that Sellers will be required to be very aggressive with the pricing of their homes. This means more flexibility in their pricing and more incentives to Buyers.

That's just one more piece of good news for Buyers. Combine record-low interest rates, the growing inventory of homes for sale, the artificial reduction of prices caused by foreclosures and short-sales and Buyers will have the opportunity of a lifetime to buy their new home or their investment property. You can hear more about this topic on our podcast, which has a link at the top of this email.2

Click here to see the most recent Real Estate sales and listing statistics for the Pikes Peak area.

WOULD YOU BE BETTER OFF BY REFINANCING AND REINVESTING?

Considering the present cost of money and the fact that inflation is definitely coming, many Homeowners are considering borrowing against the equity in their homes and investing the money in residential real estate. Obviously, each person's financial situation and goals are different, but, looming inflation, current interest rates and your own specific tax bracket could combine to present a once-in-a-lifetime opportunity to increase the value of your portfolio with free money.

Let's take one example of how present conditions could work together to benefit an individual. Assuming a new, fixed-rate, 30-year mortgage at 4.375% and a tax bracket of 28%, the Homebuyer's tax deduction of 28% off of the 4.375% interest payments would bring the actual interest expense down to 3.15% (4.375 X .28 = 1.225% savings). Therefore, when (Note: That's not "if") inflation hits 3.15%, the investor's interest expense would be cancelled out by the appreciation in the value of the property. From then on, it's "free" money.

By the way, inflation is currently running at less than 1%. When the impact of congressional spending increases begins to hit the economy, inflation is bound to skyrocket (Can you say, "Jimmy Carter"?)

Can this investment plan apply to you? Well, the first thing you should do is to ask your accountant or tax advisor how this process would affect your investment portfolio. If he/she agrees that you could profit from this opportunity, call us. We would be happy to go over the numbers with you in more detail and we can show you some great properties.

JOKE OF THE WEEK

On her recent visit to the United States, the Queen of England was riding in a taxicab in New York City. The cab was stopped in a traffic jam, so the driver, in an attempt to keep the Queen from being bored, said, "Your Highness, would you like to hear a riddle?"

The Queen answered, "That would be very pleasant, young man. Tell me the riddle"

Cabdriver: "Here's the riddle, Ma'am. 'It's not my Sister. It's not my Brother. And yet, it's the child of my father and mother. Who is it??"

The Queen: "My word, that's really a puzzler. I can't figure it out. It's not your brother or sister, but it's the child of your parents. Who is it, young man?"

Cabdriver: "It's Me, Your Highness"

The Queen laughed out loud and slapped her knee. "That's really very clever, young man", she said. "I must remember to tell that one when I get back home"

The Queen returned to England and, that evening, was sitting in the Royal palace. She remembered the riddle and thought she would see if the Prince could figure it out.

The Queen: "I say, Phillip. Those colonials are so clever. One of them told me this riddle and it's really quite amusing.

The Prince: Fire away, Mum

The Queen: "Here's the riddle, Poopsie.

'It's not my Sister. It's not my Brother. And yet, it's the child of my father and mother. Who is it??"

The Prince thought for a while and finally said, "Well, that's really very confusing. I can't understand who it could be. Who is it?"

The Queen laughed and slapped her knee and replied, "It's a cabdriver in New York City"

Enewsletter July 7, 2010

Wed, 07 Jul 2010 01:00:00 GMT

July 7, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

"IT WAS THE BEST OF TIMES. IT WAS THE WORST OF TIMES"

This famous quote from Charles Dickens in A Tale of Two Cities might also apply to what's happening in our present Real Estate market. Are these the "worst" of times? For some people, they are. Our heart goes out to the people who have lost their homes through no fault of their own .unexpected loss of jobs, rising cost of living..huge jump in ARM payments, etc., etc., etc.. For those unfortunate victims of the recession, these truly look like the worst of times. They have now lost their homes, must relocate and take a step down on the economic ladder. We all hope and pray they can ride out this temporary economic downturn and return to normalcy in the near future.

Realistically speaking, however, these are the best of times for many people. The drop in market values of residential housing, while creating some serious problems for Sellers, has created great opportunities for Buyers. Let's take a look at some of the factors that make this "the best of times" for anyone who is thinking of buying a home:

Wholesale Mortgage Interest Rates are at their lowest level since 1971
The Wall Street Journal (July 7, 2010) showed Freddie Mac at 4.05% for a 30 day lock and 4.14% for a 60 day lock on 30 year, fixed-rate mortgages. Fannie Mae was at 4.117% and 4.188% for the same mortgages.
Home prices are still extremely-low
Foreclosures and short-sales are still coming into the inventory of available homes and are artificially lowering prices for all homes

Do these factors actually create a big difference to Buyers? Absolutely!!! Let's look at two examples from our own personal experience.

A family friend of ours in Phoenix was recently able to fulfill her life's dream by buying her first home. The home was built and sold five years ago for $350,000. Our friend just bought the foreclosed property from the bank for $90,000, thanks in part, to the federal tax credit of $8000 to first-time homebuyers. Her mortgage interest rate is less than 5% for a 30 year, fixed-rate loan and her PITI payments are significantly less than she had been paying for rent.
An investor-client of ours just closed on a 5-year-old home that originally sold for $440,000. He bought the foreclosure from the bank for $310,000 and leased it for $1975 per month on the very day he closed on the sale.

How long will this "Buyers' Opportunity Market" last? Well, we don't have a crystal ball, but let's look at a couple of the factors that will determine how long this opportunity will continue. On the positive side, in the near-future, foreclosures will continue to affect the market, probably for the rest of 2010. This will tend to hold home-prices down.

Also, on the positive side, interest rates will stay low as long as there is no demand for mortgage money (Mortgage lenders are starving for loan-applications. Apparently, the typical Summertime Buyer bought earlier this year, to get the federal tax-credit, so, this year, there is no summer rush.) Lenders are currently offering rates as low as 3.75%-3.875% on 15 year loans, because nobody is borrowing.

The biggest pressure to push prices and rates higher will be inflation. Fred Crowley, chief economist for the Southern Colorado Economic Forum, recently stated to us that, "Inflation must happen as a result of the dramatic increase in government spending".

The bottom line for Homebuyers and Investors is, "BUY NOW !!!".

Call us.

FEDERAL HOMEBUYERS' TAX CREDIT DEADLINE EXTENDED

The deadline for closings on home purchases eligible for the federal Homebuyers tax credit has been extended from June 30, to September 30, 2010. This extension was offered because many of the eligible contracts had suffered delays caused, primarily, by the slow response times of lenders. This extension will be welcomed by many Homebuyers who were about to lose the tax credit through no fault of their own.

It is estimated that this extension will affect at least 200,000 homebuyers, but that 'official' estimate overlooks the other individuals and companies that would have been negatively affected, had the extension not been granted. e.g. the homesellers, mortgage loan processors, homebuilders, sub-contractors, title companies, etc., etc.,etc. The ripple effect of the tax-credit is hard to measure, but it is easy to see that the tax credit benefitted the entire economy.

Our thanks go out to NAR and NAHB for their heavy lobbying for this extension. It's too bad that the obvious benefits had to be 'sold' that hard. Obviously, congress does not fully appreciate how so many people are seriously impacted by their tax-related decisions.

COLORADO SPRINGS CONTINUES TO OUTSHINE THE REST OF THE COUNTRY

The Research Division of the National Association of Realtors just released their "Local Market Report" for the major U.S. Markets. We thought our readers might be interested to see how our local market compares with the rest of the country, for the first quarter of 2010. As always, Colorado Springs compares favorably with most of the 150 largest metropolitan centers in the nation. The report tracks such data as local job market, foreclosure rates, housing inventory, prices, affordability, Please click here to see the complete report which proves, once again, that we live in the best place in the U.S.

PORTFOLIO, INC. AGREES

On June 30, 2010, Portfolio,Inc. released its "Quality of Life" survey results for the Top Ten midsized metropolitan areas in the U.S. The survey compared 109 medium sized markets with populations between 250,000 and 750,000 in 20 statistical categories. The best cities have healthy economies, moderate cost of living, light traffic, impressive housing inventories, and high-powered educational systems. Colorado Springs ranked 7^th on the survey.

THOSE NEW WINDOWS COULD LEAVE YOU OUT IN THE COLD

If you were counting on the federal government to help you pay for those new, energy-efficient windows, or those new, energy-efficient appliances, better think again. The Department of Energy has long-championed the PACE Program (Property Assessed Clean Energy Program). This program lets homeowners use special property-tax assessments to pay off, over 15 to 20 years, the cost of new improvements. The process results in PACE liens against the homeowner's property which are funded by municipal bonds. These liens are senior to existing mortgages.

In May, Fannie Mae and Freddie Mac said the PACE liens violated the terms of their contracts to purchase loans from lenders and said they would require borrowers to pay off the liens before refinancing or selling their properties. This announcement led most municipalities to suspend their PACE programs.

We urge any of our readers who might have become involved with the PACE Program to consult with their lender, to see how this inter-agency dispute might affect them.and Good Luck !!

As this feud between Fannie, Freddie and PACE heats up, one is tempted to ask whether the government's right hand knows what its left hand is doing. In the meantime, please close the windows. It's cold in here.

JOKE OF THE WEEK

All's fair..

One Sunday afternoon a couple sees an ad in the paper. They can't believe their eyes. There is a house in the paper for $1000 that is in the nicest part of town. We are talking about a Highland Park mansion for $1000. They think this has to be a misprint, but decide to call anyway.

They say to lady who answers we saw your ad, and realize it is a misprint correct. She tells them no it's not & you are actually the first ones to call.

They decide to go look at the house. They race over as fast as they can. They pull up to the most beautiful house on the block. In front of the house is a fountain that cost at least $30,000. They ring the door bell & the lady answers. She starts showing them the house. They realize this house is over 5000 sq ft and it is obvious that expense was not a problem in building this house. The house had marble imported from Italy & a chandelier imported from France. The landscaping was breath taking & the house had a great pool & a nice tennis court.

The couple said to the lady this is the most beautiful house we have ever seen, what's the catch? The lady assured the couple there was no catch. The couple wanted the house for $1,000 but was leery of doing the deal. Finally the lady said you seem like a nice couple, so I'll let you know the truth.

She told them this house is completely paid for, and not a penny is owed against it. Well, last week I got a call from my Husband. He informed me he is leaving me for his secretary. He then told me I could have everything we own as long as he could have the proceeds off the sale of the house. I agreed and he asked me if I could sell the house while he & his new girlfriend hung out in the Caribbean?

HOUSE SOLD.

1185 Marsh Hawk, Colorado Springs, CO 80911

Thu, 01 Jul 2010 11:00:18 GMT

Most popular 4-level floorplan* Great corner lot with real fine landscaping* Lots of Roses await you walking up to the front door* Expensive redwood stairway vs typical concrete* Interior has hardwood entry, kitchen & nook* See thru to LL Family Room with walkout to patio* Vaulted ceiling ML* 5 ceiling fans* Wonderful Mtn Views* Move-in Ready!

Enewsletter June 28, 2010

Mon, 28 Jun 2010 01:00:00 GMT

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

IS THE ELEVATOR GOING UP OR DOWN?

It's almost impossible to tell if the economy is getting better or worse, by reading the papers. Within the last week, for example, some of the featured stories in The Gazette and in The Wall Street Journal were headlined, "Mountain West's Recovery Staggers", "Signs Signal Improvement in Local Economy", "Hiring Picks Up Only slightly", "Springs is 20^th- best Among Nation's Metropolitan Areas", "Sales of New Homes Plunge", "Mortgage Rates Hit New Lows", "Occupancy Rates Leaping At Springs Hotels".

Now, there's a collection of headlines that would confuse anyone. But, here are some facts that tell a very clear story:

Mortgage rates are at an all-time low. You can now buy a home with a rate as low as 4%.
Home prices are very low. The foreclosures and short-sales that are now on the market have pulled down the price of every other listing. (To get an idea of how dramatic this is, call me about our Featured Listing shown at the end of this eNewsletter).
Inflation will almost certainly rise, as new government expenditures begin to affect the economy
Mortgage rates will eventually rise
Home prices will eventually rise

How can you benefit from these facts? Well, let's assume that five years ago you bought a home and created a loan for $250,000. Your mortgage payments are $1,580.17 per month for a 30-year mortgage with a rate of 6 1/2%. Your current balance is $234,027 which you will be paying on for the next 25 years.

Today, you could put that $234,027 towards a bigger home in a better neighborhood, refinance at 4%, and end up with a 15 year mortgage that would cost you $1,731.07 per month (only about $151 per month more than you are now paying). By doing this, you will be living in a better house, you will have taken ten years off your mortgage and, more importantly, you would be able to pay off your mortgage completely by the time you are ready to retire.

Prospective Homeowners and Investors may never have an opportunity like this again!! Call me.

FOOT-DRAGGING BY BANKS MAY HALT UP TO 140,000 CLOSINGS

As we all know, the recently deceased First-Time Homebuyers' Tax Credit was offered to Homebuyers who closed on the purchase of their homes by June 30^th, 2010. Unfortunately, many eligible sales will have failed to close by that deadline, primarily because of the slow response time of their lenders. Now, Congress has chosen not to extend the closing deadline, thus voiding the tax-credit for the 140,000 Buyers involved. Unfortunately, many of these Buyers, if they do not get this tax-credit, may back-out of their contracts. This would be a very unfortunate problem for the already-strapped Real Estate market.

The federal tax credit proved to be a great incentive for Buyers and, since its expiration, home sales have dropped off by 32%. This represents a record-low seasonally-adjusted annual rate. The expiration of the tax-credit and an excess supply of existing homes for sale also lead to a decline in new-home construction and applications for home-buying loans.

NEW FEDERAL AGENCY TO BE CREATED TO OVERSEE BANKS AND FINANCIAL MARKETS

At a cost of only $19 billion per year, Congress is about to enact the most sweeping remapping of financial regulation since the 1930s. The overhaul will put U.S. banks and financial markets under tighter government control for years to come, according to The Wall Street Journal.

The legislation expands the regulatory reach of Washington's major agencies, including the Federal Reserve, Securities and Exchange Commission and Commodity Futures Trading Commission. It also creates, under the Federal Reserve, a new "consumer protection" agency, the Consumer Financial Protection Bureau, with power to oversee all manner of financial products from mortgages to credit cards.

Opponents of the bill are concerned that it could restrict access to credit and enshrine the idea that the government won't allow big firms to fail. The bill sets stricter limits on prepayment penalties, fees for paying off a loan early. Banks say that potential for greater liability could lead to higher costs for borrowers and provisions that require stricter checks on a borrower's ability to pay could make it harder or more expensive for self-employed borrowers or for those who rely on commission or seasonal income to qualify for loans.

NEW SURVEY REVEALS TOP "MUST-HAVES AND BIGGEST "TURN-OFFS" IN A HOME

Forget that "man cave" or home theater room: what men crave more than women in a new house is a luxurious bathroom, a guest bedroom, a dining room and views. On the other hand, female house hunters value a home office more than a kids' playroom, dining room or luxurious bathroom. These are just a few of the more surprising findings of a recent survey of 1,000 house hunters by ZipRealty.Inc.

Other survey highlights:

Both men and women home hunters rated green features higher this year compared to 2008, with 27 percent of this year's respondents ranking a green home high priority.
The percentage of home shoppers ranking a home office as a high priority is up from 35 percent in 2008 to 39 percent in 2010.
The three biggest turn-offs when viewing a home in person are structural damage, bad odors, a busy street and an awkward floor plan. While searching online, lack of parking and few or no photos and low square footage are the biggest deal-breakers.

Top 10 Most Desired Home Features:

1.       Garage or parking space            86.8%

2.       Master suite                            78.9

3.       Ample storage space                 72

4.       Large or walk-in closets             66.5

5.       Guest bedroom                         66.4

6.       Outdoor entertainment area        64.3

7.       Gourmet or updated kitchen        60.6

8.       Breakfast room or eat-in kitchen  55.8

9.       Large yard                               43.2

10.   Wood floors                                40.8

Male versus Female House-Hunting:

Must-Haves and Deal-Breakers Differ

"Overall, the same things you would always expect to top the list of 'must-haves' and 'deal breakers' for house hunters still show up, but it is interesting to see men place a higher priority than women on things often characterized as stereotypically female priorities, such as a luxurious bathroom and a dining room," said ZipRealty Vice President of Marketing Leslie Tyler. "Also, women's growing desire for a home office may speak to the fact that more women are working from home these days."

A higher percentage of women reported ample storage and a large yard as a high priority compared to men, and reported that when viewing a home in person they would be turned off by small bedrooms and a lack of common space more often than male respondents. In fact, 60 percent of women compared to 49 percent of men reported they wouldn't consider a home with small bedrooms.
Forty-four percent of men rated a home with a view as a high priority, compared to only 33 percent of women, while 28 percent of men reported a luxurious bathroom as a high priority, compared to only 23 percent of women, and more than 70 percent of men indicated a guest bedroom as a must-have, compared to only 63 percent of women.
A higher percentage of men reported when searching for homes online disdain for outdated furniture or paint and unkempt landscaping compared to women -- and men reported they're more likely to be turned off by a lack of curb appeal than women are.

Top 10 Features Desired by Men

1.       Garage or parking space            85.5%

2.       Master suite                           79.8

3.       Ample storage space                71.2

4.       Guest bedroom                        70.2

5.       Large or walk-in closets            64.2

6.       Outdoor entertainment area       63.4

7.       Gourmet or updated kitchen       59.1

8.       Breakfast room/eat-in kitchen    55.2

9.       View                                     44.5

10.   Large yard                                43

Top 10 Features Desired by Women

1.       Garage/parking space               87.7%

2.       Master suite                           77.8

3.       Ample Storage Space               72.7

4.       Large or walk-in closets            68.7

5.       Outdoor entertainment area       64.2

6.       Guest bedroom                        63.9

7.       Gourmet or updated kitchen       61.8

8.       Breakfast room/eat-in kitchen    56.1

9.       Large yard                              43

10.   Wood floors                               40.9

JOKE OF THE WEEK

The ANT and the GRASSHOPPER

OLD VERSION

MORAL OF THE STORY:

Be responsible for yourself!

MODERN VERSION

The ant works hard in the withering heat all summer long, building his house and laying up supplies for the winter. The grasshopper thinks the ant is a fool and laughs and dances and plays the summer away.
Come winter, the shivering grasshopper calls a press conference and demands to know why the
ant should be allowed to be warm and well fed while he is cold and starving.

CBS, NBC , PBS, CNN, and ABC show up to provide pictures of the shivering grasshopper next to a
video of the ant in his comfortable home with a table filled with food.

America is stunned by the sharp contrast.

How can this be, that in a country of such wealth, this poor grasshopper is allowed to suffer so?

Kermit the Frog appears on Oprah with the grasshopper and everybody cries when they sing, 'It's Not Easy Being Green.'

ACORN stages a demonstration in front of the ant's house where the news stations film the group singing, "We Shall Overcome."

Political demagogs appear on TV to condemn the ant and blame President Bush, President Reagan, Christopher Columbus, and the Pope for the grasshopper's plight. In an interview with Larry King, they fume that the ant has gotten rich off the backs of grasshoppers, and they call for an immediate tax hike on the ant to make him pay his fair share.

Finally, the EEOC drafts the Economic Equity & Grasshopper Opportunity Act retroactive to the beginning of the summer.

The ant's taxes are retroactively raised by 50% and, because he cannot pay them, his home is confiscated by the Government Green Czar and given to the grasshopper.

The story ends as we see the grasshopper and his free-loading friends finishing up the last bits of the ant's food while his new house (which happens to be the ant's old house), crumbles around them because the grasshopper can't get a government loan to pay for maintaining it.

The ant disappears in the snow, never to be seen again.

Eventually, the grasshopper is found dead in a drug related incident, and the house, now abandoned, is taken over by a gang of spiders who terrorize the ramshackle, once prosperous and once peaceful, neighborhood.

The entire nation collapses, bringing the rest of the free world with it.

MORAL OF THE STORY:

Fairy tales ain't what they used to be

Enewsletter June 21, 2010

Mon, 21 Jun 2010 01:00:00 GMT

June 21, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

PARDON US, IF WE BLOW OUR OWN HORN

Since 1977, Salzman Real Estate Services, LTD has been a proud affiliate of Leading Real Estate Companies of America. Leading RE members are independent Brokers who specialize in relocation and, as a member of this progressive organization, we are able to utilize their marketing concepts to provide the most aggressive, creative relocation services for individuals and corporations in our local market.

The top 12 Real Estate organizations in the U.S. were recently listed by "Real Trends 500" and the results show that, out of the top 12 producers in 2009, six were members of Leading RE. Furthermore, nationwide, Leading RE members sold more homes than any other Real Estate organization. In fact, Leading RE:

Is 27% ahead of its closest competitor in sales volume
Leads all national brands in total units sold, with nearly one million sales
Has 28% of the total home sales among the top 500 U.S. real estate firms
Has the #1 firms in sales volume, transaction sides or both in 41 of the top 90 American markets - almost twice the number of #1 market leaders than its closest competitor

For a breakdown of the top twelve Real Estate producers in 2009, Click Here.

A JUMP IN COLLECTED SALES TAX INDICATES COLORADO SPRINGS IS ON THE MEND

In a sign that the local economic recovery is gaining strength, Colorado Springs sales tax collections jumped in May by the biggest percentage in 2 ½ years, when compared with a year earlier (The sales tax receipts in May, 2010, were up 10.22% from May 2009).

The jump was fueled by big gains in auto (+20.28%) and building materials (+20.91%). Terri Velasquez, the city's chief financial officer, stated, "While we are still down from pre-recession levels, this is a significant rise and shows we are experiencing a recovery in sales tax revenues."

Sales tax revenues are a direct reflection of the public's confidence in the economy and they fund more than half of the city's annual budget for services such as police and fire protection, parks and roads.

COLORADO NEEDS TO SELL ITSELF MORE EFFECTIVELY

The Wall Street Journal (June 19, 201) ran an article titled, "States See Growth in Jobs". The article featured six charts and graphs and contained a "Recovery Scorecard" showing how effective each state was in attracting non-government jobs. The top six states for job growth were: Indiana, Wyoming, Delaware, Texas, Utah and Virginia. Unfortunately, Colorado was listed fourth from the bottom. Now, let's face it, folks. No matter how you slice it, Colorado is a better place to live than Indiana (unless you're a fan of humidity, bugs and flat landscapes). So, how does Indiana manage to attract businesses? Obviously, they do it by offering incentives that allow incoming businesses to make more profit in Indiana than in Colorado.

In these tough times, it's a shame that we don't seem to be attracting more new businesses (and jobs) to our state. Considering our quality of life, our natural attractions, our weather, our beautiful parks and the quality of our available workforce, the problem we should be facing is how to keep new businesses out of our state.

Maybe it's time for a high-level meeting of representatives from our state and local government, our business leaders and our Economic Development people, to plan and implement a strategy for getting our message out to prospective new businesses. There are plenty of businesses in states like California that are looking to relocate away from high taxes and congestion. Let's give them some financial reasons to consider Colorado for their new home.

If you would like to hear some examples of how other states have lured new businesses into their states, give me a call.

FANNIE AND FREDDIE TO DELIST FROM NYSE

The federal regulator of Fannie Mae and Freddie Mac ordered the two mortgage-finance giants to delist their common and preferred stock from the New York Stock Exchange, the latest example of how the mortgage giants are shedding their ties to private ownership.

The move came one day after the NYSE formally notified the government that Fannie Mae no longer met listing standards because its shares had fallen below the $1 share-price threshold maintained by NYSE Euronext. The FHFA said it decided to relist because it could not be sure it could bring the companies' share price above the 1$ threshold.

Most analysts who cover the companies have long assumed that the companies' common stock doesn't have any value because the government has had to pump so much money into the firms to keep them afloat.

But, don't be concerned that we will be losing the services of the people who drove Fannie Mae and Freddie Mac into the ground. The same individuals will still be in charge of our national economic development. So, the news isn't all bad.

FIVE-YEAR ARM HITS RECORD LOW OF 3.89%

The five-year adjustable-rate mortgage slid just enough to break its record low, according to Freddie Mac's weekly survey of conforming mortgage rates, released last Thursday.

Five-year Treasury-indexed hybrid ARMs averaged 3.89% for the week ended Thursday, down from 3.92% last week and 4.97% a year ago. It is the lowest the ARM has been since Freddie Mac started tracking it in January 2005.

Fixed-rate mortgages inched up. The 30-year fixed-rate mortgage averaged 4.75%, up from 4.72% last week; it averaged 5.38% a year ago. The 15-year fixed-rate mortgage averaged 4.20%, up from 4.17% last week; it averaged 4.89% a year ago.

It's still a great time to buy a house. Give us a call.

5 COLORADO SPRINGS SCHOOLS ARE LISTED AMONG THE BEST

Five Colorado Springs high schools are among the best in the nation, according to Newsweek's annual "America's Best High Schools List ", posted this week on the magazine's website.

The list of more than 1,600 schools, about 6% of the nation's public high schools, are ranked on how hard their staffs work to challenge students with advanced-placement courses and tests.

The local high schools cited were:

Rampart High School
Liberty High School
Pine Creek High School
Cheyenne High School
Palmer High School

The complete list is at www.newsweek.com/feature/2010/americas-best-high-schools.

Congratulations to our wonderful teachers and students.

JOKE OF THE WEEK

Mr. Smith climbs to the top of Mount Sinai to get close enough to talk to God.

Looking up, he asks the Lord... 'God, what does a million years mean to you?'

The Lord replies, 'A minute.'

Smith asks, 'And what does a million dollars mean to you?'

The Lord replies, 'A penny.'

Smith asks, 'Lord, can I have a penny?'

The Lord replies, 'In a minute.'

Or, if you didn't like that one,

John was on his deathbed and gasped pitifully. 'Give me one last request, Dear,'

'Of course, John,' his wife said softly.

'Six months after I die,' he said, 'I want you to marry Bob.'

'But I thought you hated Bob,' she said.

With his last breath John said, 'I do!'

6658 Bethesda B, Colorado Springs, CO 80918

Sat, 19 Jun 2010 11:00:05 GMT

Main level master/5 pc bath, walk-in closet, tall vaulted ceilings in great room, designer loft with 2 bedrooms and bath up, upgraded cabinets, appliances and that rich, comfortable feeling. Next to Cottonwood Creek on a cul-de-sac. Pride of ownership is here.

Enewsletter June 14, 2010

Mon, 14 Jun 2010 13:44:00 GMT

June 14, 2010

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

MORTGAGE RATES HIT LOW FOR YEAR

Rates on 30-year fixed mortgages fell this week to the lowest level of the year and were barely shy of the all-time low. Mortgage finance company Freddie Mac says the average rate sank to 4.72 percent, down from 4.79 percent last week. It was just above the record of 4.71 set last December.

The average rate on a 15-year fixed-rate mortgage hit 4.17 percent, down from 4.2 percent last week and the lowest on records dating back to August 1991.

Though mortgage rates are at attractive levels, the housing market hasn’t benefited. The number of customers applying for a mortgage to purchase a property fell to the lowest level in 13 years last week and was down 35 percent from a month ago, according to the Mortgage Bankers Association. That’s a sign the market is struggling without a tax credit of up to $8,000 for first-time buyers, which expired at the end of April.

The government has taken massive steps to help the housing market recover. A campaign by the Federal Reserve to reduce borrowing costs for consumers pushed rates down to extraordinarily low levels last year. Rates were expected to rise after the program ended this spring, but have fallen instead over the past two months.

Investors, wary of the European debt crisis and the turbulent stock market, have shifted money into the safety of U.S. Treasury bonds. That has pushed down the interest rate, or yield, on U.S. Treasury debt. Fixed mortgage rates tend to track that yield.

More recently, the latest report on the U.S. employment picture showed that few private-sector jobs are being created. That made investors nervous about the stock market and pushed up bond prices, which pulls down rates.

“Following a relatively weak employment report, bond yields fell this week and mortgage rates followed,” said Frank Nothaft, Freddie Mac’s chief economist.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day. Rates on five-year, adjustable-rate mortgages averaged 3.92 percent, down from 3.94 percent a week earlier. Rates on one-year, adjustable-rate mortgages fell to 3.91 percent from 3.95 percent. That was the lowest average since May 2004.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount.

The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 a point for 30-year, 15-year and 5-year loans. The average fee for 1-year loans was 0.6 of a point.

Source: Associated Press/AP Online

NAHB SAYS, “NOW’S THE TIME TO BUY A HOME”

David Crowe, Chief Economist of the National Association of Homebuilders, has made a video explaining why buying a home makes sense. In this video, NAHB Chief Economist David Crowe explains the positive factors for home buyers in today's marketplace. Although the popular home buyer tax credit program has ended, he explains, there are still plenty of good reasons to consider homeownership -- including mortgage rates that are near historic lows, attractive home prices that appear to have stabilized in many markets, and an excellent selection of new and existing homes on the market. Click here to view this video.

And, keep in mind that Mr. Crowe is speaking to a national audience, so, if buying a house is a good idea for anyone in the U.S., it’s an even better idea for anyone in our local area. Our market numbers continue to outpace almost every other market in the country. Call us !!!

HOME REPAIR PROJECTS THAT MAKE SENSE

If you are planning to remodel or add-on because it will increase your enjoyment of your home, that’s great. However, if your goal is to increase the resale price or marketability of your home, please give us a call to discuss it. It is not fun when you realize that a home repair project you just finished — and spent your savings and time on — either isn't going to save you money or wasn't even necessary to begin with.

Here are some of the more common repair/remodeling projects that we are asked about by our clients:

roof change
deck change (increase size, replace with redwood or synthetic material)
landscaping
appliances
kitchen cabinets
bathroom cabinets
bathroom fixtures
new windows
new furnace/AC
fireplace change from wood to gas, etc.
insulation upgrade
wallpaper?
replace formica tops with corian or granite
upgrade exterior with stucco
new paint
new carpeting/floor covering
adding outbuildings (barn, workshop, etc.)

Some of these projects make sense from a ‘return-on-investment’ standpoint, but some don’t. We will be happy to discuss the benefits and/or disadvantages of your proposed project, from the perspective of our local market.

A good resource for evaluating the ‘return value’ of many remodeling projects is the book, "Green Sense for the Home: Rating the Real Payoff From 50 Green Home Projects" (The Taunton Press; $21.95) by Eric Corey Freed and Kevin Daum. This book examines the issue and helps homeowners determine what projects make financial sense. Covering 16 projects you can do today (changing light bulbs or using less toilet water), 21 you can do tomorrow (adding solar power or installing a whole-house fan) and 13 you can do when building a new home (reclaiming your water and building with reclaimed or recycled materials), the book offers two different and sometimes opposing perspectives on each. An in-depth analysis breaks projects down according to their impact on the environment and, of course, your wallet.

Give us a call and let’s talk about the real market value of your project.

PROPOSED NEW TAX COULD CREATE MORE HARD TIMES FOR REAL ESTATE

We try to remain ‘apolitical’ in our newsletters, but the following major issue could have a significant effect on everyone’s private property rights and we felt it should be brought to the attention of our readers. The following is excerpted from a June 8, 2010 article byJeffrey D. DeBoer, the President and CEO of The Real Estate Roundtable.

“Congress is seriously considering raising taxes on real estate at the exact moment that real estate is headed toward recovery. In a desperate search of revenue to pay for new government spending, the House last week passed an “Extender Package” that included a “carried interest” provision that would more than double the tax rate on a broad range of commercial and multi-family real estate owners of all sizes and property types.

Real estate is a significant contributor to jobs and gross domestic product. This tax hike is being proposed at perhaps the worst possible time, as the industry and the economy continue to struggle to recover. Property values are down by at least 40 percent; the weak economy continues to hammer rents and occupancy rates in many markets; net operating incomes have fallen by 25-30 percent; and transaction volume is down by some 90 percent.

Real estate makes up nearly 50 percent of all partnerships in America. While some will claim carried interest is a loophole, the carried interest tax hike now making its way toward the Senate floor is, more than anything, a tax on real estate partnerships large and small. It is not a tax on hedge funds that tangentially affects real estate; it is a real estate tax hike that tangentially affects hedge, venture capital and private equity.

The proposed increase to carried interest taxation would represent the largest tax increase for real estate in more than 20 years – since the Tax Reform Act of 1986, when property values plunged, pressure increased on savings and loan associations, there were forced government closures and ultimately the taxpayer was stuck paying to reset the system.

According to the IRS, these real estate partnerships hold over $1.5 trillion of commercial real estate assets throughout America, including: rental housing, office buildings, shopping centers, medical facilities, hotels, senior housing and industrial properties. The carried interest tax proposal would change the taxation of all these partnerships – for past and future investments.

This tax increase means fewer jobs to repair and upgrade buildings, when more than 2 million – or 25 percent – of Americans from the construction and building trades are out of work. It means reduced revenues to local governments for teachers, firefighters, roads and safe communities. It is impossible to understand how more than doubling the tax on the decision maker in a real estate partnership, as this proposal would do, will encourage any new business, put anyone back to work in construction, or shore up property values to help dig local budgets out of their deep holes.

In addition to hurting economic recovery and jobs, raising taxes on real estate hurts community banks. By most estimates, over $1 trillion in new equity capital is required to fill the equity gap. Now is not the time to destroy capital formation.

As Elizabeth Warren warns in the February Congressional Oversight Panel Report, today bank losses on commercial real estate loans could reach $300 billion, potentially wiping out "hundreds more community and midsize banks" and drying up the credit needed to restore the economy to health. Approximately $1.4 trillion in U.S. real estate loans will come due between 2010 and 2014, with nearly half of those loans currently "underwater." As defaults, foreclosures and mortgage losses continue to rise, a “significant wave of commercial mortgage defaults would trigger economic damage that could touch the lives of nearly every American.”

This proposal is a tax on real estate that is not only short sighted but is also coming at the worst possible time for the economy, jobs and the banking system. The Senate should reject this ill-conceived proposal.

Now is not the time to hit real estate because it is so important to the economy, jobs and the banking system.”

Our sources indicate that this proposed tax could happen with this congress.

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

Live at Fairfax in Briargate

Tue, 08 Jun 2010 23:27:14 GMT

REDUCED* REDUCED* Immaculate 2-Story + Finished Basement. Pikes Peak View. Spacious open floor plan w/natural light. 4BD, 4BA, 2 Car Att. New paint, vinyl windows, light fixtures, window coverings. Formal LR & DR. FR w/fireplace & 19' ceiling. Kitchen w/eat-in area, laminate floor, pantry, walk-out to patio. UL MBR w/5 pc BA, skylight, walk-in closet. UL BRs w/ceiling fans. Bsmt w/huge Rec Room, BR, Full BA. Landscaped yd w/sprinkler system. Great location near D-20 schools, park. Neutral Decor. Move-In Ready.

ENewsletter June7, 2010

Mon, 07 Jun 2010 01:00:00 GMT

June 7, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

THE NATIONAL ASSOCIATION OF REALTORS SAYS THINGS ARE LOOKING UP

Lawrence Yun, NAR Chief Economist, reported last week, "The second round of surging sales from the tax credit extension looks as strong as the original tax credit. Evidently, the tax stimulus, combined with the improved consumer confidence and low mortgage interest rates, are contributing to surging sales. The housing market now appears to be in a good position to return to sustainable levels even without government stimulus, provided the economy continues to add jobs."

NAR expects a net of 1 million additional jobs in the second half of this year and about 2 million in 2011.

"The Home Buyer tax credit brought close to 1 million additional buyers into the market, which is now helping the trade-up market and has significantly improved the inventory situation. This stabilized home prices more quickly and has preserved about $900 billion in home equity. In turn, that is keeping additional households from going underwater and risking foreclosure." Yun said.

"A big concern surfacing recently is insufficient time to close the deal at the settlement table. Under normal circumstances, two months would be enough time from contract to settlement date," Yun said. "However, the recent housing cycle has brought long delays related to the short sales approval process by banks, and from ongoing appraisal issues. There could be a sizable number of Home Buyers who responded to tax credit incentives, but who may encounter problems meeting the settlement deadline by June 30."

Distressed sales, i.e. short-sales and foreclosures, account for roughly one-third of all transactions and will likely continue to represent a sizable portion for the rest of the year. Why? Because mortgage delinquencies are still very high.

This delay by banks in the settlement process is the very reason we have urged Congress to establish some reasonable deadlines for banks and why NAR has asked Congress to provide flexibility on the deadline for closing.

Surprisingly, housing inventory - despite higher sales activity - has been rising. That is because fresh listings have been rising faster than the existing inventory has been absorbed. One reason for this rise is, apparently, that Homeowners who did not want to sell during the depths of the downturn last year are now putting their homes back on the market. As proof of this, see the numbers listed in our monthly PPAR report, later in this newsletter.

OUR LOCAL REAL ESTATE MARKET CONTINUES TO CLIMB AND SHOW STRENGTH

This past Thursday, the Pikes Peak Association of Realtors announced figures for May, 2010. Home sales maintained a upward climb, despite the demise of the federal tax credit for Home Buyers which expired April 30, 2010.

Last month, total single-family home sales, including resale and new construction, totaled 888. That represents an increase of 6.7% over the same month last year. Of the 888 sales, 844 were resales, a 7.9% increase over May, 2009.

The median price for all homes sold was $194,450, an increase of 2.8% over May, 2009.

The number of single-family homes on the market as of May 31, 2010 was 5550, an increase of 10.1% over May 31, 2009, an indication that reluctant Sellers are regaining confidence in market pricing and they are putting their homes back on the market. Their confidence is well placed. The statistics show that, of the 888 homes sold last month, the "selling price to listing price" ratio was 97.6%, which means that Sellers received only 2.4% less than their asking prices. .and better yet, "sold" homes were on the market for only 77 days, on average.

We hate to tell Realtors in most other parts of the country how well our local market is doing. They always get so depressed.

MORE GOOD NEWS - BUILDING PERMITS ARE UP !!!

On June 2, 2010, the Pikes Peak Regional Building Department published their monthly report showing the number of new home building permits. In May, 2010, single-family permits in El Paso County totaled 135, an increase of 25% over the108 permits issued in May of 2009. Furthermore, during the first 5 months of 2010, single-family permits showed an increase of 79.6% over 2009 (670 vs. 373).

Those figures represent an increase in single-family building permits for 11 of the past 12 months.

WSJ SAYS RETAILERS ARE ALSO DOING WELL

Last Friday, the Wall Street Journal published figures showing that the major retailers are also feeling the growth in consumer confidence and loosening their purse-strings. Some of the retail outlets tracked in May showed the following increases over May of 2009:

Target + 1.3%
Macy's + 1.4%
Kohl's +3.5%
Nordstrom +3.7%
Costco + 5%
Saks + 5.8%

Overall, in May, the 28 retailers tracked by Thomson Reuters posted "same store sales growth" of 2.5% over 2009. It looks like we are on our way back to normal.

MORTGAGE RATES - HOW LOW CAN THEY GO ???

We still can't believe it. Last week, we were able to negotiate a mortgage for a transferee coming to Colorado Springs that should make him happy for the next 30 years. How's this for a deal? The Buyer qualified for a VA Jumbo loan. The sales price was $439,900. Down payment on the 30 year fixed-rate mortgage was only $5,725, with no origination fee and no discount points and the rate was locked in at 4.75%. Wow !!! Things can't stay this good forever. Call me .

THE PIKES PEAK REGION IS THE BEST PLACE TO BUY YOUR HOME

The Colorado Springs Regional Economic Development Corporation is promoting our area nationwide, but especially in those troubled areas of the country where businesses are fleeing from excessively high taxes. These overtaxed businesses are looking to relocate and the CSREDC is "selling" our area as the best place to live and work. We are linking here to their latest promotional piece, "The Top Ten Reasons to Locate Your Company in Colorado Springs and the Pikes Peak Region", to assist them in their efforts to attract businesses, but also to encourage any of our readers who are considering relocating here to buy now, while home prices and mortgage interest rates are low and inventories are high. It's a great place to live !!!

GREECE AND OIL COULD BE BIG FACTORS IN THE HOUSING MARKET

The domino theory is at work again. If Greece is unable to raise money to pay for government spending, they could go bankrupt. (Hey, hold on, there! You mean countries actually have to pay for the programs their legislators pass. Bummer!!! With our luck, that might even happen here). However, Greece's traditional sources for borrowing are asking if they will ever get their loaned funds back from the Greek treasury. Germany, in particular, is irate that its citizens, who typically retire at a much older age than do Greeks, are being asked to provide pension money for Greek citizens.

If Greece defaults, then German banks will see their capital evaporate. That, in turn, will make it difficult for them to lend to other countries like Portugal or Spain to finance their budget deficits. If these countries also default as a result, then another major credit crisis will hit us. (Ireland would have been on this list of endangered countries, but they decided to reduce their unsustainable government debt by cutting government salaries, furloughing many government employees and convincing its investors that it will repay the loans. Where do those crazy Irish get these strange ideas?)

The bottom line for the U.S. would be that, because of our global linkages, our banks would also take a hit. This would make it very difficult to obtain Jumbo loans and second-home financing. So, if you're thinking of getting a Jumbo loan, or buying a second-home, it would be prudent to make your move right now.

The other source for concern is the oil-spill in the Gulf of Mexico. Obviously, the local economies that will be directly affected by the spill will have a hard time recovering from the effects of the spill. For the rest of us, the price of oil will rise measurably - or more oil will have to be imported. Either way, our cost of living will go up and the recovery from the recession will slow down. Slower economic growth will mean slower job expansion and a higher U.S. budget deficit.

Oh, for the days when worrying about Greece and oil just meant making an appointment to have the car serviced.

JOKE OF THE WEEK

At a recent computer expo (COMDEX), Bill Gates reportedly compared the computer industry with the auto industry and stated "If GM had kept up with technology like the computer industry has, we would all be driving twenty-five dollar cars that got 1000 mpg."

Recently General Motors addressed this comment by releasing the statement: "Yes, but would you want your car to crash twice a day?"

Not only that, but....

Every time they repainted the lines on the road you would have to buy a new car.
Occasionally your car would die on the freeway for no reason, and you would just accept this, restart and drive on.
Occasionally, executing a maneuver would cause your car to stop and fail and you would have to re-install the engine. For some strange reason, you would accept this too.
You could only have one person in the car at a time, unless you bought "Car95" or "CarNT". But, then you would have to buy more seats.
Macintosh would make a car that was powered by the sun, was reliable, five times as fast, twice as easy to drive, but would only run on five percent of the roads.
The Macintosh car owners would get expensive Microsoft upgrades to their cars, which would make their cars run much slower.
The oil, gas and alternator warning lights would be replaced by a single "general car default" warning light.
New seats would force everyone to have the same size butt.
The airbag system would say "are you sure?" before going off.
If you were involved in a crash, you would have no idea what happened.

June 1, 2010- Enewsletter

Tue, 01 Jun 2010 01:00:00 GMT

June 1, 2010

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

HOW DOES “THE QUE” SAY WE ARE DOING ??

The “QUE” is the Quarterly Update and Estimates Report that is published by the Southern Colorado Economic Forum of the College of Business and Administration of the University of Colorado at Colorado Springs. Salzman Real Estate Services, Ltd. has been a supporter of this important and informative project from its inception and we thought some of our readers might want to study the complete First Quarter Report for 2010, so we are linking here to it here.

One of the significant sections of the latest report is the Business Conditions Index (BCI) which reports on such areas as:

Single-family and Townhouse permits
New car sales
Employment rate
Foreclosures
Wages and Salaries
Sales and use tax collections
Airport emplanements

The encouraging “bottom-line” news is that the first quarter of 2010 in El Paso County shows a 15.7% increase in activity over the first quarter of 2009. Further, the report states that “The current flow information suggests the second quarter of 2010 will see modest gains in the BCI”. This re-emphasizes our previous observation that the Colorado Springs area is coming out of the Recession.

The “QUE” also has data derived from another project created by UCCS, namely, the Renewable Energy Survey. This survey contains such questions as:

What is your monthly utilities bill?
What is your household income?
Are you willing to pay higher prices for renewable energy?
Do you currently have renewable energy?
Do you plan to install renewable energy?
Would you pay extra for a residence/business whish uses renewable energy?

These data are reported and grouped by household income, sex, education, etc.

Some of the interesting highlights of the report findings are:

Only 21.9% of the respondents were willing to pay higher prices for electricity from renewable energy.
Another 43.6% indicated they might be willing to pay higher prices for electricity from renewable energy.
Lower income respondents were more willing than higher income respondents to pay higher prices for electricity from renewable energy. (Whooda thunk it?)
Only 6.4% of respondents think solar panels are attractive. (Surprise, surprise)
20.4% of respondents think wind farms are attractive. (Are you kidding?)

To help promote the Southern Colorado Economic Forum, you can receive a free subscription to the “QUE” by sending an email to fcrowley@uccs.edu and entering the word “subscribe” in the Subject line.

As always, the University is always prepared to accept any donation you would care to make.

THE VIEW FROM THE SUMMIT

Last week, the Gazette published some encouraging information about the economy of Colorado Springs. The data, provided by Summit Economics, Llc., compared April 2010 to April 2009 and showed:

Initial claims for unemployment went down 22.7%
Single-family home permits were up 69.3%
New car and truck registrations were up 14.4%
Taxable retail sales were up 5.5%
Hotel occupancy rates were up 56%
Foreclosure filings were down 11.5%
The unemployment rate was unchanged at 8.4%, but was still better than most other U.S. cities.

To add to the good news, the most comprehensive quarterly analysis of median selling prices for homes is the National Association of Realtors report. This report analyzes data from 153 of the largest multiple listing services in the nation. The most recent NAR report shows that existing-home sales in April 2010 were 22.8% higher than April of 2009.

And, on a personal note, when we have occasion to attend national meetings and conferences, we have the opportunity to compare our local conditions with other Realtors and Relocation experts from around the country. During these discussions, we are consistently impressed with how well Colorado Springs is doing, compared to almost every other part of the U.S. We are the envy of almost everyone else at the meeting.

We are lucky to live here !!!

LET’S TALK ABOUT MORTGAGE RATES

Did you know that last week you could have obtained a 30 year, fixed-rate home mortgage for 4.5%? The rates have not been this low since Dwight Eisenhower was president. What accounts for these low mortgage rates?

Well, the most commonly cited reason for our current low mortgage rates is the sad state of the European Money Markets. The sinking value of the European markets is pushing global investors to put their money into U.S. Treasury Bonds, which are viewed as a more secure investment. As a result, Treasury yields have fallen, which has taken our mortgage rates down, as well.

How long can this influx of foreign money into Treasury Bonds continue? ..Probably not much longer. Sooner or later, the European crisis will end and the big investors will probably move from bonds into stocks. When that happens, our mortgage rates will begin to rise.

As a prospective Homeowner or Investor, what does all of this mean to you? The bottom line is that you may never have a better opportunity to buy a home or an investment property. Give us a call and let’s discuss it.

WHAT SHOULD YOU LOOK FOR IN A REALTOR?

Today, there are approximately 3400 Realtors in the Pikes Peak area. …and every one of them is willing to put a sign in your front yard. But, if you really want to sell (or buy) a home in the Pikes Peak area as quickly as possible, you should utilize the services of an effective, proven Realtor who knows how to negotiate the best deal possible for you. Here are some of the things you should look for:

Does your Realtor know what you should do to your house in order to make it more saleable? There are some “improvements” you might make that would actually reduce the price of your home (e.g. adding a swimming pool). Other improvements might only allow you to recoup the actual price of the improvement, but would make your house more interesting to prospective Buyers. Some improvements will actually net you more money than the improvement cost. A good Realtor can also advise you whether you should actually make improvements, or, adjust your sales contract with ‘allowances”. There are some improvements like painting, that influence Buyers more than a simple ‘allowance’ at closing.
Does your Realtor know how to negotiate? Many contracts fall apart because of problems that a good Realtor can resolve. Tax implications, aggressive terms, allowances, are all specific items that can be negotiated in order to make the contract more appealing to both parties.
Does your Realtor have good relationships with lending institutions? All banks are not alike. Just last week, we developed a good working relationship with a bank on the East Coast that will offer mortgage loans to our clients who work in specific professions. These loans require no down payment and waive several normal loan requirements.
Does your Realtor know neighborhoods? Your Realtor should be able to give you a comprehensive view of the value of surrounding homes, tax histories, improvement histories, school systems, planned developments, etc.
Does you Realtor have relationships with local suppliers to obtain special pricing? As with many areas of our lives, it’s not a matter of “what you know”, as it is “who you know”. We have special pricing worked out with many local service and product suppliers in order to make the most effective deals for Buyers and Sellers. Some of our ‘preferred pricing’ relationships are with Lowe’s, LazyBoy Furniture, Floorcraft. Sherwin-Williams, Staging companies, etc.

JOKE OF THE WEEK

Three contractors are bidding to repair some minor damage to the basement of the White House, one from Texas, one from Boston and one from Chicago. They go with a Secret Service official to examine the basement.

The Boston contractor takes out a tape measure and does some measuring, then works some figures with a pencil. "Well," he says, "I figure the job will run about $100,000: $40,000 for materials, $40,000 for my crew, $10,000 for the union boss and $10,000 profit for me."

The Texas contractor also does some measuring and figuring, and then says “I can do this job for $70,000: $30,000 for materials, $30,000 for my crew and $10,000 profit for me."

The Chicago contractor doesn't measure or figure, but leans over to the Secret Service official and whispers, "$72,000."

The official, incredulous, says, "You didn't even measure like the other guys! How did you come up with your bid?"

The Chicago contractor whispers back, "$1,000 for me, $1,000 for you, and we hire the guy from Texas to fix the basement."

Enewsletter - May 24, 2010

Mon, 24 May 2010 01:00:00 GMT

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

THE FEDERAL TAX CREDIT FOR HOMEBUYERS INCREASED SALES …BUT, DID IT CHANGE REALITY?

On May 24, 2010, in an article by Kelly Evans, the Wall Street Journal pointed out that the recent federal Homebuyers’ tax credit did, in fact, stimulate the sale of residential real estate. Home sales in April, the last month for the tax credit, were up 5% from March. The Commerce Department was expected to say that new-home sales climbed 3% in April, after a 27% surge in March, to a 423,000 annualized pace.

On the other hand, the Mortgage Bankers Association’s latest weekly index of purchase applications plunged 27% to its lowest level since records began in 1997, despite falling borrowing rates.

Some ‘experts’ are recommending an extension of the federal tax-credit as a means of stimulating more residential home sales. They reference the federal “cash for clunkers” programs as an example of how such federal support money can stimulate activity within an industry. However, as the WSJ points out, there is a significant difference between the recent tax credit for Homebuyers and the ‘cash for clunkers’ program. In the ‘clunkers’ program, the vehicles that were turned in to obtain the “discount” on the purchase of new vehicles were scrapped and thus removed from the national inventory of vehicles. The tax credit for Homebuyers, however, although it did result in the sale of 1 million units, did not ‘scrap’ any houses and, thus, did not reduce the national inventory of houses. Inventories of existing homes are still elevated and the rising rate of delinquencies and foreclosures ensures a steady stream of supply that will keep downward pressure on prices for some time to come. In other words, the tax credit program, rather than fixing the problem, may have only delayed the inevitable. Speaking of foreclosures and short sales, let’s consider the following.

WHY CALL THEM “SHORT SALES” WHEN IT TAKES SO LONG TO COMPLETE THEM???

During our current housing crisis, the Real Estate community has tried valiantly to dispose of the foreclosures and short-sale properties that have dragged down property values in most parts of the country. Only by “clearing the table” of these artificially depreciated properties as quickly as possible will real estate prices be able to again reflect their true market value. During this time of readjustment, however, it has become increasingly apparent that the biggest bottleneck in the process of selling-off these properties has been the slow reaction time of many banking institutions that postpone, delay, dither and quibble over valid offers for these properties. The result of this unnecessary delay in the selling process is that, too often, the prospective buyer gives up on the project and chooses to invest his money elsewhere.

In an attempt to alleviate this problem, we have prepared a Press Release urging some of the more influential business journals throughout the nation to support some simple, sensible, new, federal regulations that would require Mortgage lenders and Realtors to provide a consistent level of service and reaction time to all parties involved in the sale of foreclosures and short sale properties. The basic requirements of these proposed regulations would be that:

Foreclosure and Short Sale offers must be completely processed within a specified time period (e.g. 45-60 days)
Lenders must publicize their processing time for new, foreclosure and Short Sale offers
Lenders must establish a standardized list of procedures, requirements and deadlines for all parties involved in an offer for new, foreclosed or short sale properties
Lenders must be subject to specific penalties, should they fail to meet the deadlines established in the regulations

We think these reasonable requirements for Lenders would greatly simplify and expedite the disposal of these distressed properties and would help the market to more rapidly re-establish realistic real estate prices throughout the nation.

If you would like to get involved in this effort, please give us a call.

MORTGAGE LOAN RATES FALL BELOW 5%

On My 24, 2010, the Wall Street Journal reported that, contrary to all expectations, home mortgage loan rates have gone down to the lowest levels of the year and back near 50 year lows.

How can this be?? We were told that the Fed’s withdrawal from mortgage-securities purchases would trigger a rise in interest rates. Instead, there seems to be plenty of money available for mortgages and, as a result, rates are falling. As one Realtor stated in the article, “It’s schizophrenic. We all had this expectation of higher interest rates and no more refinances. But I just locked in a 30 year loan with a 4.25% fixed rate …the lowest in my 24 years in the business”.

Where did all this mortgage money come from? Hold on to your hats !!! It’s from foreign investors who are pulling their money out of the shaky European economy and investing it in U.S. Treasury bonds. This massive wave of cash pushed down yields on Treasurys and, thus, pulled down mortgage yields, which are closely pegged to yields on 10 year Treasury notes.

These lower rates could widen the pool of people who qualify for a mortgage, while others may find they qualify for a slightly larger loan. “They can buy the place with the extra bedroom or the swimming pool” says Jay Brinkman, chief economist at the Mortgage Brokers Association.

Keep in mind that nearly half of all borrowers with 30-year conforming fixed-rate mortgages have mortgage rates of 5.75% or higher and could reduce their rates by a full point if they refinanced at current rates, according to investment bank Credit Suisse.

What does this all mean to prospective Homebuyers and Refinancers? Well, a 1% decline in mortgage rates for a $400,000 home can cut $250 off the monthly payment. So, if only 10 million of those 5.75% mortgage owners refinanced, it would pump an additional $2,500,000.000 back into the economy every month. What an ironic solution that would be to our economic problems !!!

Remember, although these rates are the lowest since the 1960s, they won’t last forever. Give us a call to discuss buying or refinancing your home. It might be the best opportunity you will ever have.

AND ANOTHER THING !!!

Colorado Springs continues to look good.

We just returned from the semi-annual meeting of the Relocation Directors’ Council in Orlando, FL, where we were heartened to hear that Colorado Springs is in much better shape than most of the other major metropolitan areas in the country. After listening to reports from our colleagues from around the nation, it is obvious that the communities which are recovering the fastest from the recession are the ones which are offering incentives to attract businesses and are encouraging their businesses to offer innovative benefits to consumers. America was built on innovation and it’s time we all start expanding on that concept.

And, have you run into this before?

As we checked into the Relocation Directors’ Council meeting, we were handed a FlashDisk containing a compendium of all of the meeting’s seminars. What a great learning aid. It sure was better than trying to take notes at every seminar.

Another example of Innovation in Action

We recently subscribed to Smarter Agent, an innovative new service for Realtors. This program allows us to display listing information on properties within any specified area in the country. It uses GPS to access the MLS listings and mortgage information nationwide and display them on our Blackberry. If our client wants even more detailed information, our CyberHomes program can generate a 10 page report on specific properties. The Smarter Agent program will also enable us to assist our incoming relocation clients with the sale of their homes, regardless of where they are moving from. Ten years ago, nobody dreamed that these innovative programs would be available, and now, I’ve actually turned into a full-fledged “Real Estate Geek”. Whooda thunk it?

HERE’S AN OLD CHINESE PROVERB THAT WE JUST MADE UP

“Unemployed people do not buy houses”.

Therefore, the answer to our present real estate problems is Job Creation. Local, State and Federal governments, please take note !!!

JOKE OF THE WEEK

15 things we wouldn’t know if it wasn’t for the movies

The ventilation system of any building is the perfect hiding place. No one will ever think of looking for you in there, and you can travel to any other part of the building you want without difficulty.
You're very likely to survive any battle in any war unless you make the mistake of showing someone a picture of your sweetheart back home.
Should you wish to pass yourself off as a German officer, it is not necessary to speak the language. A German accent will do.
A man will show no pain while taking the most ferocious beating but will wince when a woman tries to clean his wounds.
If staying in a haunted house, women must investigate any strange noises in their most diaphanous underwear, which is just what they happened to be carrying with them at the time the car broke down.
If a large pane of glass is visible, someone will be thrown through it before long.
If someone says, "I'll be right back", they won't.
Computer monitors never display a cursor on screen but always say:
Enter Password Now.
It is not necessary to say hello or goodbye when beginning or ending phone conversations. And none of your friends have to knock when they come for a visit.
Even when driving down a perfectly straight road, it is necessary to turn the steering wheel vigorously from left to right every few moments.
All bombs are fitted with electronic timing devices with large red readouts so you know exactly when they're going to go off.
A detective can only solve a case once he has been suspended from duty.
If you decide to start dancing in the street everyone around you will automatically be able to mirror all the steps you come up with and hear the music in your head.
Police departments give their officers personality tests to make sure they are deliberately assigned a partner who is their total opposite.

And last but not least
When they are alone, all foreigners prefer to speak English to each other.

Enewsletter - May 17, 2010

Mon, 17 May 2010 01:00:00 GMT

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL REAL ESTATE MARKET

THE LATEST STATISTICS ON HOME SALES ARE ENCOURAGING

This past week, the National Association of Realtors published their quarterly report on “Median Sales Prices of Existing, Single-Family Homes for Metropolitan Areas”. This report looks at every multiple-listing sale within 152 major metropolitan areas, or, in this case, 5.14 million sales (annually adjusted). These figures show that the Colorado Springs Real Estate market has outperformed most of the other markets in the country.

The bottom line is that the “Relative Strength” of the Colorado Springs housing economy looks great !!!

Some of the highlights of the report were:

· Colorado Springs 1^st Quarter 2010 vs. 2009 = +2.7%

· 91 out of 152 national areas showed higher 1^st quarter median sales prices in 2010 vs. 2009

· 29 markets had double-digit increases, 3 were unchanged, while 58 had price declines

· In the 4^th quarter of 2009, 67 metro areas reported gains, while, in the 3^rd quarter of 2009, only 30 showed gains

· Distressed homes (which are discounted by 15%) accounted for 36% of total sales

· National 1^st quarter sales in 2010 were 11.4% over 2009

These figures confirm the fact that many recent Homebuyers were motivated to take advantage of the recently-expired federal tax credit and decided to get off the fence, not only here, but nationwide.

As Lawrence Yun, Chief Economist for NAR recently pointed out,” We have been seeing this flattening of home prices in all areas lately. The tax credit was very effective in drawing down excess inventory, with about 1 million additional sales resulting directly from the stimulus”.

These numbers demonstrate that the entire nation is seeing this recovery. And, the current prospects for our local investors look even better. Our local sales in April were up 11.9% over 2009. Our average sales prices were up 4.7%. Our median sales prices were up 4.2% and our Active listings were up 2.8% over 2009…. So, what does this mean to you, a Colorado Springs Homeowner, a current or prospective investor , or someone just sitting on the fence? It means that we have more opportunities for you right here in Colorado Springs than they have in any other part of the country.

As we shared with you in previous issues, a monthly comparison of April 30, 2010 compared to April 30, 2009 shows:

· Local sales are up 11.9%

· Average sale prices are up 4.7%

· Median sale prices are up 4.2%

· Active listings are up 2.8%

With low, 30 year-fixed rates still available (4.875% for owner-occupied, 5.25% – 5.5 % for non-owner occupied) and the ability to reduce these rates even further for 15 year mortgages (typically, .25% - .375% lower), it’s a great time to buy. Give us a call.

COLORADO HAS CALIFORNIA WORRIED

The following article by Jan Norman. staff small-business columnist, was published in the Orange County Register on May 13th, 2010.

“An average of 15 to 20 companies move from other states to Colorado Springs every year and 30% are from Southern California, said Dave White, executive vice president of marketing for the Colorado Springs Regional Economic Development Corp. “ Approximately 60 Southern California companies are currently looking at Colorado Springs for a possible relocation”, he added.

A couple of the most recent California catches are Billet Racing Products that moved from Laguna Niguel in September, and Corinthian Colleges in Santa Ana that just opened an enrollment center in Colorado Springs that will employ 600.

I called White because my recent update of California companies leaving the Golden State included half a dozen that landed in Colorado Springs. Readers demanded to know why, and rightly so.

It was a softball question that White teed it up and crushed it.

‘Every state in America is focusing on California,’ he said. ‘It’s low hanging fruit’ for those assigned to develop their local economies and add jobs.

Remember, he promotes Colorado Springs for a living but, he’s a Southern California transplant and professes to love California and Disneyland. But business is business.

Here are some of his favorite selling points for California firms to move to Colorado Springs :

California’s top income tax is 10.55%; Colorado’s is 4.63%
California’s top corporate income tax is 8.84%; Colorado’s is 4.63% based only on sales within Colorado
Colorado’s worker’s compensation insurance costs 25% what California businesses pay
Colorado Spring Utilities’ electricity rate is 4.5 cents per kilowatt hour; Southern California Edison’s is 10 cents
Colorado Spring’s property tax rate is 0.4% to 0.5% of real value depending on location; Orange County’s is 1% (or more for Mello Roos fees, for example)

‘My wife and I laugh that the only thing cheaper in California is the citrus,’ White said.

Colorado Springs comes looking for companies to lure away from the beaches and sun and Disneyland, he admitted.

‘We do have a campaign. We think Colorado Springs is a good match for companies seeking to relocate. We can’t compete with southern states that throw millions of dollars in incentives and tax breaks at big projects. Our sweet spot is small to mid-sized companies where the owner moves with the company. They’re driven as much by lifestyle as by incentives.’

And the city is getting ready for another California campaign, but White wouldn’t disclose details. (Nevada is preparing another campaign too, but that’s another story.)

Unlike Virginia and Texas, which have been running television commercials in Southern California, and Nevada, which regularly runs newspaper ads and billboards, Colorado Springs tends to send direct mail to company owners.

‘They did fly a plane over Los Angeles on Valentine’s Day pulling a banner that said ‘Colorado Loves LA,’ but that was Metro Denver and the state, not us,’ White said.

Colorado does offer incentives to relocating companies, but they don’t receive them until they create new jobs, White said. For example:

The state and city may give as much as $5,000 per job plus tax credits.
The city might rebate the property tax up to $800 per job.
The legislature just passed an additional $2,500 per job credit against the corporate income tax.

‘We also have asked private entities to provide incentives,’ he added. ‘A country club might waive the membership fee, or the health clubs might give six months free membership. We have a pass to various tourist sites. We don’t have the beaches but we do have Pikes Peak.’

And when business executives come to check out the town, the governor, mayor and civic and business leaders show up to greet them, White added.

Does Arnold do that?” (End of article)

Well we’re sorry, California, but, as you pointed out in your article, business is business. But, you still have Disneyland.

Unfortunately, California is a living example of the fact that you can’t get more eggs by killing the chicken.

Speaking of chickens, we’re not trying to be Chicken Little, dashing around screaming, “The Sky is falling, the Sky is falling”, but we thought that any of our readers who own a house, or are trying to buy or sell a house would be interested in the following article.

A LICENSE REQUIRED FOR YOUR HOUSE ???

If you think the housing market is depressed now, wait until you read the Cap and Trade Bill (H.R. 2454) that has passed the House of Representatives and is now being considered by the Senate. The Bill requires that, beginning one year after enactment of the Cap and Trade Act, you won't be able to sell your home unless you obtain a federal license and retrofit your home to comply with the energy and water efficiency standards of H.R. 2454. This will represent one of the largest tax increases any of us has ever experienced.

The Congressional Budget Office estimates that in just a few years the average cost to every family of four will be $6,800 per year. No one is excluded.

But wait. This awful bill has many more surprises in it. Probably the worst one is this: A year from now you won't be able to sell a home without the permission of the EPA Administrator. Even pre-fabricated homes ("mobile homes") and commercial buildings are included.

To obtain this permission, you will have to have the energy efficiency of your home measured. (Sect. 202 - Building Retrofit Program). After the government notifies you what your retrofit energy efficiency requirement is, you will be required to make specified modifications to your home under the retrofit provisions of the Act. (Note also that the EPA administrator can set higher standards at any time, even above the automatic energy efficiency increases which are already built into the Act.)

After the initial inspection and retrofit, you will have to get your home measured again and get a license (called a "label" in the Act) which must be posted on your property to show what your efficiency rating is; sort of like the Energy Star efficiency rating label on your refrigerator or air conditioner. If you don't get a high enough rating, you will not be allowed to sell.

Keep in mind that the requirements in the bill have been set low initially so the bill would be able to get through Congress. After passage, however, the Administrator is permitted to set higher standards every year.

The Act also allows the government to give homeowners who meet certain energy efficiency levels a grant of several thousand dollars to comply with the retrofit program requirements. As always, the government will determine who qualifies to receive these grants. Based upon the exemptions allowed in other such government programs, we can expect these grants to be awarded only to those who “don’t have an income of more than $50K per year", or "whose home selling price is not more than $125K". Thus, low income Homeowners will get a tax refund to offset the cost of this new program and, when this happens, the $6,800 estimated cost to the average taxpayer will go even higher, in order to “bail out” those who qualify for the exemption.

Sect. 204 - Building Energy Performance Labeling Program establishes a labeling program that will identify the achieved energy efficiency performance for "at least 90 percent of the residential market within 5 years after the date of the enactment of this Act." The EPA administrator will get $50M each year to enforce the labeling program and the Secretary of the Department of Energy will get an additional $20M each year to help the EPA.

Homeowners will be required to post the BEPL label in a conspicuous location in the home and will not be allowed to sell their home without having this label. And, as with all licensing programs, the Homeowner will probably be required to obtain a new label on a regular basis, possibly every year.

The government estimates the cost of measuring the energy efficiency of your home should only cost about $200 each time. (When the California auto smog inspections first started, they were projected to cost only $15. The current price for that program’s inspection and certificate is $50, a 333% increase).

This bill is an absolute type of a “taking away” of private property rights of every homeowner in the U.S. We believe that any type of implementation of this bill will dramatically decrease a Homeowner’s ownership rights. We have been vested with as Americans.

Will this bill help get America back on track? Well, as we pointed out, above, you can’t get more eggs by killing the chicken.

We recommend you call or contact your friends in Washington to vote against this bill.

CHECK OUT the following relating to this new, proposed law;

HR2454 American Clean Energy & Security Act: http://www.govtrack.us/congress/bill.xpd?bill=h111-2454

San Francisco Examiner OpEd, May 16, 2010
http://www.sfexaminer.com/opinion/columns/oped_contributors/Cap-and-trade-is-a-license-to-cheat-and-steal-45371937.html

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 38 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

A pollster was working outside the United Nations building in New York. He approached three men: a Texan, a Californian and a New Yorker. "Excuse me." he said. "I would like to ask your opinion on the current meat shortage." The Texan replied, "Excuse me, but what is a shortage?" The Californian asked, "Excuse me, but what is meat?" The New Yorker replied, "What is 'Excuse me'?"

Enewsletter May 10, 2010

Mon, 10 May 2010 14:13:00 GMT

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

SINGLE-FAMILY PERMITS UP ALMOST 70% FROM '09

In their May 4, 2010 issue, the Gazette reported that the pace of home construction continued to improve in the Colorado Springs area, while the number of new foreclosure filings eased slightly.

Single-family building permits totaled 127 during April, a nearly 70% increase compared with the same month last year. For the first four months of this year, single-family permits totaled 535, about twice as many as the same period in 2009.

These numbers are significantly lower than those from a few years ago when monthly permits routinely totaled several hundred, but they are getting back on track and should hopefully reach 2000 permits in 2010.

Local Home sales totaled 792 in April of 2010, an increase of 11.9% over April of 2009. Median home prices rose to $187,500, an increase of 4.2% from April of 2009. This marks the sixth straight monthly rise in prices and the tenth straight monthly increase in sales. It is also encouraging to note that the sale prices for these homes averaged 98% of their listed prices.

The inventory of local homes for sale increased 2.8% in April, however, mortgage rates remain low and the Homebuyers' tax credit will still be available to soldiers returning to Ft. Carson from Iraq and Afghanistan. Foreclosure rates are also declining. All of this is good news for Sellers. The bad news is that many homeowners who were unable to sell their houses last year and who took their homes off the market may re-list this year, thus increasing the competition. In fact, there has been a 2.8% increase in the number of listings since April, 2009.

And, don't forget, even if you're not involved with buying or selling a house, you are deeply impacted by our Real Estate market. As we pointed out last week, every home sale results in approximately $11,000 in new taxes. So, 2000 building permits results in $22 million income available for schools, police, firefighters, road repairs, etc.

AND, BY THE WAY..

Wells Fargo says the recovery is clipping along

In a speech attended by about 400 Colorado Springs bank clients and business leaders at the Antlers Hilton last week, we were encouraged to hear Jim Paulsen, chief investment strategist for Wells Fargo Capital Management predict that "the worst is over". He stated that the U.S. and global economies have been recovering for several quarters and that recovery will grow faster and last longer than the average economic recovery since World War II

Mr. Paulsen said that recovery will be stronger and more sustainable because the financial market, businesses and consumers prepared for a depression and instead were hit by a less-severe recession.

"Fear of a Depression caused businesses and consumers to stop spending. That resulted in low interest rates, massive federal spending, deep cost-cutting and the hoarding of cash by consumers. All of which are now providing fuel to keep the recovery going" Mr. Paulsen said.

So, it turns out that "Fear" is the antidote for "Greed". Whooda thunk it ??

Homeownership declines, but that's good news for investors

On May 7, 2010, the U.S. Census Bureau and the Department of Commerce reported that the nation's Homeownership rate fell to 67.1% in the first quarter. The rate has not been that low since the first quarter of 2000. The Homeownership rate reached its peak in 2004, when it was 69.2% for both the second and fourth quarters.

A big factor in this reduction in Homeownership is the increase in Foreclosures and Short sales. As always, "One man's meat is another man's poison". This reduction in Homeownership results in an increase in potential renters looking for high-quality rentals.

Combine the increase in potential renters with the low mortgage interest rates now available for investors (the interest rates for non-occupied properties are now about 5 ¾%) and you have the receipe for a successful Real Estate investment. Give us a call to discuss this opportunity.

Risk wanes for Real Estate price declines

The risk of home-price declines decreased in 93% of the 384 markets tracked at the end of last year by analysts with PMI Mortgage Insurance Co., although half still showed an elevated or high risk of depreciation.

Overall risk of price declines "decreased dramatically" during the final three months of 2009, PMI said, largely because of improvements in affordability, and declining foreclosure starts. Affordability was helped by falling home prices, lower mortgage rates and increasing personal income.

Risky mortgage lending practices and loan products decreased sharply in 2009 "and are hardly present at all in 2010 lending" the report said.

Although Colorado Springs was not one of the surveyed markets, we have consistently been cited as one of the cities most likely to recover quickly from the recession, as opposed to states like Florida and Nevada, which still showed a 90% or greater chance of further price declines, according to the survey.

That $10,000 kitchen remodel might only get you $3,000 when you sell !!

When preparing to sell your home, remember that upgrading your home does not necessarily require making major "improvements". Be cautious about investing in "improvements" that will not increase the marketability of your home. For example, putting in a swimming pool in Colorado may actually reduce the market value of your home. We have even heard of Sellers who had to fill in their pool, just to get prospective Buyers to look at their property. We can give you a pretty good idea of what your proposed remodeling project will do to the price of your home. Give us a call, before you decide to remodel.

JOKE OF THE WEEK

A blonde, wanting to earn some money, decided to hire herself out as a handyman-type and started canvassing a wealthy neighborhood. She went to the front door of the first house and asked the owner if he had any jobs for her to do.

"Well, you can paint my porch. How much will you charge?"

The blonde said, "How about 50 dollars?" The man agreed and told her that the paint and ladders that she might need were in the garage. The man's wife, inside the house, heard the conversation and said to her husband, "Does she realize that the porch goes all the way around the house?"

The man replied, "She should. She was standing on the porch."

A short time later, the blonde came to the door to collect her money.
"You're finished already?" he asked. "Yes," the blonde answered, "and I had paint left over, so I gave it two coats. "Impressed, the man reached in his pocket for the $50. "And by the way," the blonde added, "that's not a Porch, it's a Ferrari."

Live in Palmer Lake

Sun, 09 May 2010 11:00:23 GMT

Stunning Model Perfect Rancher w/Finished Basement* Views* ML Master Suite w/5 pc BA, jetted tub, glass blocks, walk-in closet, walk-out to deck* 4BD, 5BA, Office, 4 Car Att* 10+14' ceilings* Dramatic Entry w/tile floor opens to LR w/fp, walk-out to deck* Office/Library w/hickory cabinets, plantation shutters* Gourmet Kit w/island, salad sink, maple cabinets, double oven, microwave, dishwasher, walk-in pantry, wood flooring, dining nook, walk-out to deck* Formal DR w/bay windows* Open, Light & Airy! Bsmt FR w/wet bar, built-in book shelves, walk-out to rear yd! 2 BD w/bay windows, walk-in closets & pvt baths! Exercise Rm/4 BD w/walk-in closet & walk-in safe, wood floors! Media rm on lower level! Huge deck stretches across back of hs! 4 car finished garage w/hobby rm & wood stove! Incl: Central Vac, Sec Sys, Electric Dog Fence, Radiant Heat w/10 zones! Circular Driveway with Fountain* Views of Mt Herman & Elephant Rock* Much more! This is a WOW home! !

Enewsletter - May 3, 2010

Mon, 03 May 2010 01:00:00 GMT

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

HOMEBUYERS' TAX CREDIT - THE IMPETUS FOR A RECOVERY, OR, A FLASH IN THE PAN ??

Last week’s Enewsletter article about how the government benefits from home sales generated a lot of positive feedback and a couple of questions from our readers. One question was, “How much tax money does a home sale generate?”. To answer that question, let’s look at a typical home sale to see where the money goes.

Let’s say that a Homebuilder builds a home and offers it for sale for $300,000.

The “non-taxable sales items” built into that $300,000 selling price will total around $150,000. e.g.:

Lot cost
Permits
Utility fees
School and park fees
Overhead
Supervision
Brokerages costs
Seller and buyer closing costs
Etc., etc., etc.

And, oh yeah, profit

That means that around $150,000 of the $300,000 selling price is spent on building materials, which directly generate sales tax revenues of 7.4%, or $11,000. This income alone to the government more than pays for the $8000 Homebuyers’ tax credit, and we haven’t even considered the additional income taxes paid by the carpenters, plumbers, roofers, etc. that worked on the home. All of the income taxes generated by these construction-related jobs more than balance out the tax credit “cost” to the government for resale homes (which do not generate the sales taxes on materials created by new construction).

So, the recent tax credit to Homebuyers should not be seen as money “given away by the government”, but was, in reality, a method for ‘priming the pump’ of economic growth.

Too bad it’s no longer available.

Will the demise of the Homebuyers’ tax credit mark the end of the recent surge in home sales? It’s too early to tell, but it’s no coincidence that most of the title companies are very busy processing contracts that came in right before the deadline on the tax credits. Some experts are also concerned that the traditional “summer vacation” Homebuyers simply moved their normal purchases from June and July to March and April, in order to take advantage of this program.

Time will tell whether the tax credit program actually generated more home sales or, whether it only nudged Buyers into changing the timing of their purchases.

LENDERS HAVE A PROBLEM – THEY HAVE TOO MUCH MONEY !!!

No, we’re not kidding. Lenders all over the nation have money to lend, but nobody is asking them for loans. That’s not a hopeful sign for the economy, but it’s a great opportunity for people who are looking to finance a new home. Prospective Buyers are finding that lenders will compete for their business. For example, we recently arranged for a home loan at 4 7/8% with no origination fee and no discount points. An FDIC commercial bank in Florida is now making loans (to Doctors only) with no-down payment, no origination fee, no discount points, for a 6% 30 year fixed or a 5% 5/1 ARM. (It would almost make it worthwhile to go to medical school, just to get one of those loans).

Right now, there seems to be an oversupply of money and an undersupply of Borrowers.

LANDLORDS ARE SMILING – MAYBE YOU SHOULD JOIN THEM

This past week, the Gazette reported that our local vacancy rate in multi-family residences was down to 6.2%. That’s the lowest vacancy rate since 2001. The article cited the two major factors for this phenomenon, namely, the increase in the number of troops at Fort Carson and the increase in the number of renters who used to be Homeowners, but who have lost their homes to Short Sale or Foreclosure.

The bottom line for anyone who has ever considered purchasing income property is that our present market looks great for prospective investors. Consider the following factors

People who have recently lost their homes are now looking to rent
These same people are more responsible than typical renters
Prices for investment property are historically low
Mortgage interest rates for investment property are historically low
Inflation is approaching quickly, which means today’s investment property will be worth much more tomorrow

In the past, the industry considered a vacancy rate of 5% to be ‘Fully occupied” (because around 5% of rental units are always in the process of upgrading). Therefore, our present 6.2% vacancy rate is motivating investors to buy even more rental property. Maybe you should consider taking advantage of this opportunity. Give us a call to discuss the possibilities.

JOKE OF THE WEEK

THE FACTS OF LIFE IN THE REAL ESTATE BUSINESS

If you are a Realtor,

Helping train new agents is training your enemy.
A new agent will sell the most expensive listing in the office, then say, “Isn’t this fun?” Don’t answer.
If you show a prospect enough property, he will get his own Real Estate license.
If you show enough property, you may not make a sale, but you will need a new car.
Creative financing is followed by creative litigation.
Your next prospect will be a family with four children …One with a ball-point pen, one prone to car-sickness, and one who screams all the time. The fourth will be an infant overdue for a change.
The fussiest buyers have the least money.
Everyone wants the house that sold yesterday. It was on the market for two years.
The cat that escaped has a pedigree and is in heat. The sign says, “Don’t let Whiskers out”.
The house they left on the East Coast was bigger, better and cheaper. The weather is never mentioned.
The house they left on the West Coast was bigger, better and cheaper. The weather is always mentioned.
No matter how well you know the property you’re showing, they will ask you something you can’t answer.
If the house sells quickly, the owner will believe the price was too low.
If you break a date for a prospect, the prospect will stand you up.
The friendly dog in the yard, wagging his tail, bites.
The house down the street sold for more than you can get for the house up the street.
Your own family will list with another agent, or buy from an owner, probably both.
Whatever you learn in this escrow will not apply in the next.
If you say you’re busy, the prospects think you’re making too much money.
If you say you’re not, they think you’re unsuccessful.
If your owner re-lists with another agent, he’ll lower the price. Even if he doesn’t, his house sells the next day.

And, if you are a landlord or a property manager,

Tenants only lock themselves out in the middle of the night... or on Christmas.
At least one tenant's check will be "lost in the mail" every month.
A tenant's ability to see dirt and damage is much greater when they move in than when they move out.
Your best tenants always get job transfers during the worst rental markets.
The insurance inspector always shows up to take photos of the building as you are putting the evicted tenant’s possessions on the curb.
Tenants always swear under oath that the window was broken when they moved in.
If it exists, your tenant will try to flush it down the toilet.
If it is pouring rain, you can be sure the windows are open at one or more at your units.

But, it’s still a great way to make a living !!!

Enewsletter, April 26, 2010

Mon, 26 Apr 2010 14:10:00 GMT

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

DOES THE HOMEBUYERS’ TAX CREDIT ‘COST’ THE GOVERNMENT TOO MUCH ???

As we approach the end of the federal tax credit for Homebuyers (April 30 will be the deadline for signing a contract under this program), the explanation given by the government for not extending the program is, “Continuing this program would cost us too much money.”

This glib explanation sounds reasonable to people who don’t understand how the free market economy works. i.e. people who don’t understand who pays taxes and where they get the money to pay them. Let’s look at some of the various types of benefits to the government that are generated by the sale of a home:

Federal income taxes
State income taxes
Capital gains taxes
Local Sales taxes
And, last, but certainly not least, JOBS, JOBS, JOBS

The following is a partial list of individuals and companies that typically receive income (and thus become liable for additional tax revenues) whenever someone buys a home:

The Seller of the home
The companies that the Seller hires to prepare the home for resale. E.g. the decorator, the stager, the remodeler, the landscaper, etc.
The companies from whom the people named above purchase their supplies
The Moving company
The appliance stores
The providers of services that the Buyer will hire. E.g. internet, TV, alarm services, etc.
The Mortgage broker
The Lender
The Accountant
The Realtor.
Etc., etc., etc.

In other words, because this program produces more tax revenues to local, state and federal governments than it ‘costs’ , the Homebuyers’ tax-credit program should not be looked at as a “loss” to the government, rather, it should be viewed as a method for ‘priming the pump’ for additional tax revenues for all levels of government.

If this way of evaluating the benefits of the Homebuyers’ tax credit seems revolutionary, consider that the state of California has now passed similar tax-credit legislation that offers $10,000 to Homebuyers. Their legislature has recognized that the best way to increase tax revenues is to offer incentives to taxpayers. (Golly. It almost seems like Reagan was right. ..The best way to increase income to the government is to lower taxes. Whooda thunk it ?!!! )

Colorado, take note.

HERE’S ANOTHER EXAMPLE OF HOW GOVERNMENT CAN STIMULATE THE ECONOMY

During the first week of the Governor’s Energy Office’s new rebate program, more than 22,000 Coloradans signed up to receive energy rebates. The office’s phone lines were overwhelmed on April 19, when the program launched and there are now waiting lists for rebates for dishwashers, refrigerators and tankless water heaters.

The rebates are available for energy-efficient appliances and energy-efficient improvements, such as insulation. Here’s a sample of the available rebates:

Clothes washer $75
Furnaces $500
Hot Water heaters $200-$300
Insulation and sealing Up to $400
Duct sealing Up to $75
Energy audit Up to $100

We encourage our readers to take advantage of these rebates for several reasons. First of all, the result of these home improvements will be that your utilities bills will go down. Secondly, the energy-efficient upgrades to your home will improve the eventual marketability of your home. Prospective Buyers are often persuaded to buy because of low utility bills or a shiny new refrigerator. Keep in mind, however, that, if you are interested in applying for these rebates, be sure you register with the program before you make the purchase. They are not retroactive.

Again, the benefits of this type of program to the state of Colorado in terms of increased tax revenues and jobs are similar to the benefits from the Homebuyers’ tax credit program discussed above. This program was funded by $18 million from the American Recovery and Reinvestment Act

Let’s hope that our legislators are learning the lesson that when they let us have more of our money, their revenues go up.

THE COLORADO SPRINGS ECONOMY, LIKE THE ANNUAL HOT-AIR BALLOON FESTIVAL, IS SINGING, “UP, UP AND AWAY”

On Sunday, April 25, 2010, the Gazette reported the following encouraging data about our local economy:

Hotel occupancy moved up to 51.7%
Initial unemployment claims were down 43.3%
Single-family home permits were up 111.3%
Taxable retail sales were up 3.4%
Foreclosure filings were down by 33%.

It’s good news like this that keeps our spirits up as we dig ourselves out from under our annual April blizzards. But, look at it this way. At least the chiropractors are getting rich.

NEW HIRING INCENTIVE SIGNED INTO LAW

Under the Hiring Incentives to Restore Employment Act of 2010 which was signed into law on March 17, 2010, employers that hire new workers after February 3, 2010, and any time during the rest of 2010, will be exempted from the employer’s 6.2% share of FICA for those workers, provided the workers were unemployed for the 60 days before starting work or worked less that full time (40 hours per week) for someone else during that period.

The IRS will be providing necessary forms and instructions within the next few weeks but, in the meantime, employers should obtain from each new employee a statement indicating that he/she meets the requirements of the Act.

To learn more about this new law, visit the Government Relations section of the Worldwide ERC® website.

YOU ONLY HAVE UNTIL APRIL 30^TH TO SIGN YOUR CONTRACT TO BUY

If you want to take advantage of the Federal tax Homebuyer’s tax credit, you must be under contract by April 30, 2010. Give us a call today, or you will miss out on this terrific opportunity to put money in your pocket !!!

JOKE OF THE WEEK

The difference between the short and long income tax forms is simple. If you use the short form, the government gets your money. If you use the long form, your accountant gets your money.

A fine is a tax for doing something wrong.
A tax is a fine for doing something right.

A couple of weeks after hearing a sermon on Psalms 51:2-4 [knowing my own hidden secrets] and Psalm 52:3-4 [lies and deceit], a man wrote the following letter to the IRS:

'I have been unable to sleep, knowing that I have cheated on my income tax. I understated my taxable income, and have enclosed a check for $150.
If I still can't sleep, I will send the rest.'

Making sausage and making tax laws have much in common. They both involve bloody processes, they both require that an innocent animal be slaughtered, and those of a squeamish disposition should not get involved in the making of either. Anonymous

The avoidance of taxes is the only intellectual pursuit that carries any reward. John Maynard Keynes

My problem lies in reconciling my gross habits with my net income. Errol Flynn

Enewsletter, April 19, 2010

Mon, 19 Apr 2010 15:52:00 GMT

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

IT’S MY ANNIVERSARY, SO PLEASE PARDON MY NOSTALGIA

Last week marked my 38^th year of selling Real Estate in Colorado Springs, and I couldn’t help but think back on what our local market looked like in those prehistoric times.

In 1972, I started selling model homes for American Builders, the developers of Southborough and Eastborough. The price range for these homes was $18,000-$19,000. (We also had resale homes for sale at slightly lower prices for those people who could not afford the new models). Mortgage interest rates for a 30 year, fixed-rate mortgage were running at 8%. (ARMs didn’t even exist yet).

At our first sales meeting in 1973, we were all dismayed to hear that our available inventory of $18,000-$19,000 homes was sold out and the builder was announcing a price increase. From that point on, $20,000 would be our minimum price for homes in the development. I remember thinking, “Where in the world will we find people who can afford to spend $20,000 for a home?”….

Flash forward to the present … Yesterday, I was driving on Academy Boulevard and spotted one of the first homes I sold, back in 1972. The home recently sold for $145,000. What a dramatic example of the benefits of investing in Real Estate. That home, which the original owner bought for a $500-$1000 down payment, has shown a 600% increase in value since 1972. That’s an average annual rate of return (or appreciation) of approximately 16%. That doesn’t even take into consideration such other benefits as tax deductions, etc.

But the dramatic growth in the value of that house doesn’t even tell the whole story. Let’s look at what “leverage” does for a homeowner. If the original buyer of that home put $1000 down and lived in the home for 7 years (That’s the average length of homeownership, according to NAR statistics), the selling price (using the 16% appreciation figure) would have been approximately $42,210, or 110.5% over the original purchase price. Or, to look at it another way, in seven years, the home realized a gain of just over 22 times the original investment of a $500- $1000 down payment. Eat your heart out, Warren Buffett !!

It’s also obvious that, even if you do not plan to move out of your family home, you should seriously consider purchasing rental property. Our present economic crisis has dramatically expanded the pool of high-quality, potential renters. Combine that with the fact that interest rates are as low as they are going to get and the result is that Investors may never see such great investment opportunities again.

The bottom line is, now is the time for you to do yourself a favor. Take advantage of today’s low interest rates of 5 – 5.25% for a 30 year fixed-rate loan and make the best investment you will ever make. Call us, right now, and let us help you buy your new home.

DON’T BE LEFT ON THE DOCK, WATCHING THE BOAT LEAVE WITHOUT YOU !!!

The federal tax credit for Homebuyers is just about to expire. If you wait until May 1, 2010 to sign a contract to buy your new home, you will have missed out on the Federal Tax Credit for Homebuyers. That will mean that, if you are a potential first-time Homebuyer, you just threw away $8000. (or, $6500, if this would be a trade-up home). Call us today to avoid losing out on this free gift from your Uncle Sam. They are starting to cast off the lines and the ship’s propellers are turning, but there’s still time to get on board. Call us today !!!

IF YOU LIVE IN COLORADO SPRINGS, YOU’RE VERY FORTUNATE !!

At the April Economic Development Luncheon, the speaker was Dr. Tom Duening, the new El Pomar Chair for Business and Entrepreneurship at the College of Business at UCCS. He came here last August from Arizona State University, my Alma Mater. As a relative newcomer to the region, he is very enthusiastic about Colorado Springs and very correctly describes our city as a place “where people want to create their own community and life. People can find their own pathway here. The honesty, transparency and creativity of the business community of Colorado Springs far exceeds that of the larger cities I’ve lived in for the past 25 years”.

In support of this positive view of our city, the April 18^th issue of the Gazette featured an open letter to the citizens of Colorado Springs from the Greater Colorado Springs Chamber of Commerce, the City of Colorado Springs, the Colorado Springs Regional Economic Development Corporation, El Paso County and the Colorado Springs Convention and Visitors Bureau. The message of this open letter was to point out that “We are a community to be envied”.

The letter goes on to list the various areas in which Colorado Springs stands out. To list a few of their observations:

We are a city of accountability: We have adapted to the fiscal challenges which face all cities across the nation and we are solving our problems in a cooperative manner.

We are a city ready for the future: As Dr. Duening points out, “We are the leading edge of the Lifestyle Belt – and the Gateway to new expansion into the West”.

Our assets and resources are unmatched in communities our size: The Brookings Institute asserts that Colorado’s Front Range is uniquely empowered with all the essential ingredients for major economic growth and identifies Colorado Springs as a leading factor.

We are a city of scholarship: Our four universities, complimented by a cast of high-caliber educational institutions for adult learners, provide a complete suite of educational opportunities for the regions labor force.

We are a city of welcome and innovation: For example, we host the National Space Symposium, the largest symposium in the space industry, with over 9000 participants. This is just one of the meetings, seminars and conventions hosted by our local, world-famous local Tourism industry.

We are a city safeguarding the nation: The continued and growing presence of our military installations and commands, defense and national security enterprises has insulated our economy and, in addition, our almost 2000 non-profit organizations work to help and serve those in need in our community, across the nation and around the world.

We are a city of encouragement: We are a community of excellence for amateur sports and proud home to the United States Olympic Committee and Training Center. We have been rated the fittest city in the US and are home to a vibrant arts community. We are truly the “America the Beautiful” city.

We are a city working together: For example, The Southern Colorado Business Partnership has been formed to give businesses in three counties a voice at the state level. Twelve organizations from Castle Rock to Pueblo are working together on behalf of the region. Operation 60ThirtyFive outlines our region’s economic strategic plan and Dream City 2020 is a citizen-led effort to craft a vision for our city’s future, and work to turn the Dream into reality.

We are a city to be envied: We are proud that we own our own destiny and we are working diligently to make Colorado Springs a world-class community.

The open letter goes on to list some of the most recent recognitions that our city has received at the national level:

Best Place to Live – 2009 Outside, Online

Fittest City – 2010 (#4) Gallup

Best Places for Business and Careers – 2010 (#12) Forbes.com

National Winner “Cultural Diversity” – 2010 National Black Caucus of Local Elected Officials

Top 60 U.S. Hotspots for Young, Talented Workers - 2009 (#3) Next Cities

Mid-Sized U.S. City Art Destination – 2009 (#25) American Style

Most Sports Obsessed Town in America – 2008 (#3) Men’s Health Magazine

America’s Best Midsize Metropolitan Areas – 2010 (#9) MSNBC

Best City to Raise an Outdoor Kid – 2009 (#7) Boy’s Life

America’s Best Bang For The Buck Cities – 2009 (#9) Forbes.com

Cities Ranked and Rated – 2007 (#4) Frommer’s Travel Guide

Fittest City in America – 2009 (#2) Men’s Fitness Magazine

Best City to Find a Fresh Start – 2009 (#8) Business Week.com

Most Wired City – 2010 (#6) Forbes.com

Friendliest Bike City – 2010 (#18) Bicycling Magazine

Best Cities for a Housing Recovery – 2009 (#3) Forbes.com

Cleanest Air – 2009 (#14) American Lung Association

Best Place to be a Woman – 2009 (#10) Women’s Health Magazine

Best City to Live in the U.S. -2008 (#3) MSNBC

UCCS – Best Regional Public Universities – 2010 (#6) U.S. News and World Report

Best Place to Raise a Family- 2008 (#9) BestLife Magazine

Best Cities to Work and Play – 2008 (#5) Kiplinger’s Personal Finance

Smartest Metro Areas – 2008 (#10) Bizjournals

National Undergraduate Programs – 2009 (#6) U.S. News and World Report

Come, join us.

JOKE OF THE WEEK

A plane was taking off from Kennedy Airport. After it reached a comfortable cruising altitude, the captain made an announcement over the intercom, "Ladies and gentlemen, this is your captain speaking. Welcome to Flight Number 293, non-stop from New York to Los Angeles. The weather ahead is good and, therefore, we should have a smooth and uneventful flight. Now sit back and relax - OH, MY G-D!"

Silence followed, and after a few minutes the captain came back on the intercom and said, "Ladies and Gentlemen, I am so sorry if I scared you earlier; but, while I was talking, the flight attendant brought me a cup of coffee and spilled the hot coffee in my lap. You should see the front of my pants!"

In unison, all of the passengers shouted back, “You should see ours!"

Enewsletter, April 12, 2010

Mon, 12 Apr 2010 15:52:00 GMT

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

UP, UP AND AWAY !!! LOCAL SALES ARE LOOKING GOOD

Our local Residential Real Estate market experienced another solid gain through March 31, 2010. The 723 residential sales in March, 2010, represent an increase of 27.7% over March, 2009 and 26.4% over February, 2010. Our average sales price is now $215,625, an increase of 4% from February, 2010. Our median sales price is now $189,900, an increase of 4.3% from February, 2010. These increases represent 9 consecutive monthly increases in local residential sales. How many other communities can say that??

In addition to the rise in home sales, another significant indicator of our local economy’s strength is the income derived from sales taxes. Sales tax revenues were up 3.38% from March, 2009. This was the fifth consecutive month of increases and demonstrates our citizens’ confidence in our economy.

ONE MAN’S TRASH IS ANOTHER MAN’S TREASURE – OR – TO PUT IT ANOTHER WAY, ONE MAN’S FORECLOSURE IS ANOTHER MAN’S OPPORTUNITY

Even if you already own your home and don’t intend to sell, the Real Estate market has some opportunities that you should explore. First, let’s quote from some recent headlines: “Home Resales Continue to Streak” (The Gazette). “Check the Real Estate: It Is Time to Dive In” (The Wall Street Journal). “Homebuyers Scramble as Rates Jump” (Associated Press).

Are these headlines accurate? Well, all we can say is that we have negotiated more contracts in the past four weeks than we have in the last six months. Obviously, home prices are trending upward and people are jumping into the market, before they get priced out of it.

In addition to the rise in basic home prices, mortgage rates are also rising. On April 9, the Wall Street Journal reported the published mortgage rate from Freddie Mac was 5.21% and the Associated Press reported, “more than 5.3% in the past week”. These rates represent an 8 month high for 30 year, fixed-mortgages. This rise in rates can be traced to several factors e.g. An improving economy, the end of the government’s push to make mortgages cheaper by means of mortgage-backed securities, the beginnings of inflation, etc.

What do these trends mean to prospective homebuyers? Well, for every 1% rise in rates,300,000 to 400,000 “would-be-buyers” are priced out of the market. The rule of thumb is that, with every 1 percentage point increase in rates, a buyer’s purchasing power is reduced by about 10%. This means that the buyer who can qualify for a $300,000 home today, will only qualify for a $268,500 home when interest rates go from 5% to 6%.

Is this news bad for everyone? Well, for prospective buyers, it could represent bad news. It means they might have to settle for a less expensive home, or, if they are near the bottom of the ladder, they might have to defer purchasing in favor of renting. For investors, however, the current upward trend in prices and rates means that their pool of prospective renters will increase. To put it another way, for every buyer who is lost, another renter enters the market.

If you would like to explore the benefits of owning rental property, please give us a call. The time is right to consider this opportunity.

NEGOTIATING MEANS – “EVERYBODY WINS”

Since we announced our certification by CNE as a Certified Negotiation Expert, we have been asked by several of our clients and fellow Realtors why we are so strongly emphasizing the Realtor’s role as a negotiator in today’s Real Estate market. The answer is simple. When we consider that all Realtors, as well as their clients, now have access to all of the same internet sources of information about properties on the market, it’s obvious that the role of the Realtor must change.

In today’s market, the Realtor cannot remain merely the conveyor of data from the Buyer to the Seller, but must become, rather, the facilitator for resolving differences between the Buyer and the Seller. If Realtors cannot or will not serve as that facilitator, they really have nothing of value to contribute to the process. I was reminded of that fact just last week, when another Realtor submitted an offer on one of our listings.

Our client, the Seller, had ‘dug their heels in’ with an “absolute minimum” selling price of $319,000. The prospective Buyer had ‘dug their heels in’ with an offer of $315,000. At this point, the only options were to call off the deal, or, to negotiate. i.e. to make winners of both the Buyer and the Seller.

So, after reviewing the current market data with the Buyer’s agent, as a facilitator, we took the opportunity to point out several significant factors:

The market has taken a turn for the better and, based upon the most recent sales data from all national and local sources, the experts say that it does not appear that prices will go down any further. In fact, prices have now started to rise
Last month, properties in the neighborhood involved sold for 99.2% of their listed price, indicating that the Seller’s asking price was appropriate and reasonable.
The difference between the two parties was only $4000. That translates into an increase in the monthly mortgage payment of only $22.08, or $1324 over the five-year period that the Buyer will probably own the house.
When the income tax deduction on the loan interest is factored in, the actual difference between offer and demand is closer to $1000 over the five-year ownership period.
The federal tax credit expires at the end of this month
Through our preferred lenders, we had access to a better interest rate for the mortgage than the Buyer did. (That, alone, should have sealed the deal)

Considering all of these factors, the Buyer chose to sign the contract and both parties left the table happy. That’s the goal of negotiation and demonstrates the new role of the Realtor.

Today’s Realtor must know and understand the latest statistics and must be familiar with the local market. He/she must have developed good local resources for funding and services and must be willing to serve as a negotiator and facilitator. That way, “Everybody Wins”.

JOKE OF THE WEEK

We don’t know why the following joke seems, somehow, timely.

The photographer for a national magazine was assigned to get photos of an enormous forest fire. Smoke at the scene was too thick to get any good shots, so he frantically called his office to ask them to hire a plane.

"It will be waiting for you at the airport" his editor assured him.

As soon as he got to the small, rural airport, sure enough, a plane was warming up near the runway. He jumped in with his equipment and yelled, "Let's go! Let's go!" The pilot swung the plane into the wind and soon they were in the air.

"Fly over the north side of the fire," said the photographer, "and make three or four low level passes."

"Why?" asked the pilot.

"Because I'm going to take pictures! I'm a photographer, and photographers take pictures!" the photographer replied impatiently.

After a long pause the pilot said, "You mean you're not the instructor?"

AND BY THE WAY

Aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it deosn’t mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt tihng is taht the frist and lsat ltteer be at the rghit pclae. The rset can be a total mses and you can sitll raed it wouthit porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Pettry amzanig huh?