What’s the #1 Problem stopping Denver real estate and the other national real estate markets from booming again?
The answer is - there are no more good Investor Loans!
Currently there are not enough buyers in the United States or in the Denver real estate market specifically, to purchase the entire outstanding extra inventory of homes. Typically, one in 10 to one in 15 homes are purchased by real estate Investors nationally. With the current mortgage mess and credit crunch, Investor Loans have nearly dried up or been wiped out completely. If you want to STOP the oversupply of homes for sale - you simply need to be generous and grateful to Investors with loans! Currently, the only loans available for Investors right now require a minimum of 10% down payment, debt to income ratios at 45% or BELOW, 6 months of documented reserves (401k/savings/mutual fund portfolios) and great credit scores above 680. Unfortunately, these requirements ELIMINATE 8 out of 10 potential Investors from getting a loan!
If you slash 80 percent of the potential Investor home buyers and then combine that with the 24 percent of regular homebuyers who have lower credit and can’t get financing now - you have a BIG DENVER REAL ESTATE PROBLEM!!! Worse yet, is that it’s even more disastrous nationally – as most other US cities aren’t as strong as the Denver real estate market (many Denver Metro are flat or still appreciating in value…despite what you might have read or heard on TV or the radio!). There will be NO RECOVERY until the US Government and Mortgage Banks decide to help the Investors get good (and easier to qualify loans.) Although the “super easy” $0 Down stated-income/stated-asset Investor loans of the past few years added to the real estate mess we have now, those same loans also enabled Investors to purchase much of the outstanding inventory in most major US cities, and helped Denver specifically with our high foreclosure home inventory. In my professional opinion, after closing nearly $100 million in real estate and mortgage transactions, is that we simply need a 95% fully documented Investor loan - even allowing real estate equity as reserves and modifying the 45% debt ratios. If not, we’ll NEVER recover from this housing over-supply mess …not unless they start offering 4% 30-Year Fixed FHA Loans next week!
If you’re a Denver home seller right now, or are planning on selling in the next few months - one of the biggest tricks we recommend now is to make sure your home is remodeled and as nice-looking as possible - so it’ll appraise for the highest dollar amount. Not only will it help you get a higher Purchase Offer, but the REAL REASON is so that the buyers can “roll-in” their loan closing costs into the purchase price of your house, in order to qualify to purchase it. This is because there are virtually no more zero down loans available - just the VA loans now. However, sharp Denver Realtor’s (like yours truly) can use a 3% down FHA loan for many buyers and “roll-in” the 3% down payment plus the approximate 2-3% closing costs into the purchase price of your house – thus converting a 3% down loan into a good $0 Down FHA loan. Don’t forget, FHA loan regulations allow parents & home sellers to contribute the down payment and closing costs, when documented properly by a real estate professional who knows how to write a FHA Purchase Contract.
If your Denver home will appraise for more than your list price or purchase price (that’s why we recommend remodeling) – many of us smart listing agents will advertise & market your home’s competitive advantage, thus typically slashing your listing and SOLD time frame by half the current time of 6-8 months in many “over-stocked” Denver neighborhoods! Why not remodel inexpensively now (ask me what you REALLY need to do!) and add value to your home now - so you “capitalize” on the Investor loan mess and appeal to more regular FHA homebuyers – who’ll be able to purchase YOUR home, despite the fact they have a big decrease in loan qualifying power now.
Write and call your Congressman and tell them to help the Investors Loan problem, and you’ll see most real estate markets recover in 6-12 months. If not, you’ll have 2 years or more years to absorb all the inventory of homes currently in Denver and the United States. This ‘genius’ solution is simply all about “supply and demand” - and the ability of American capitalism to easily fix this gigantic housing problem!
Monday, March 31, 2008
Friday, March 28, 2008
What's the #1 Home Selling Trick for Denver Real Estate in 2008?
One of the most shocking things for Denver real estate agents and homeowners to see as reported in Remodeling Magazine's Costs vs Value Report of 2007, is the confirmation that nasty ugly bathrooms with mold and mildew wall tiles need to be remodeled before you sell or list your house. Bathroom remodels returned 82.2% of your investment (ROI) or the seller's investment, yet realistically, according to most top Denver Realtors, bathroom remodels will help your home sell faster than any other remodel that you can do!
The reason bathroom remodels are so important is because many Denver homes have unattractive, dated and old colors for bathtub's, bathtub/shower tile and toilets. What person wants to buy a house with tan, gold, yellow, almond, or white patterned old tile - or worse yet, old mildew/moldy grout and caulk with water damage along the tub or shower? Bathrooms are often ranked as the #1 "turn-off" for most potential home buyers - as old nasty bathrooms and bathtub areas gives the appearance that the home sellers probably didn't keep up their house maintained very well either - right? Although wood deck additions returned 86.3% and basement remodels returned 83.8% of the remodeling cost, most home buyers don't care and put as much emphasis on those! Bathrooms get used 5 to 10 times a day (or more!) and that's where you and your kids shower and bathe in. Although minor kitchen remodels still remain #3 at an 83.1% ROI, bathroom remodels are 20 times harder to do yourself - and get forgotten about...and neglected to be remodeled the most.
Although most typical bathroom remodels cost approximately $10,000-$15,000, one national company called Re-Bath can actually put in a brand new acrylic bathtub or shower, acrylic wall systems that are mold and mildew proof, all new plumbing and a shiny new bathtub or shower door for less than $6,000 in most cases! The amazing thing is that Re-Bath can actually install and remodel your nasty bathroom in one day - yes one day. They have been doing this since 1979 with nearly 1.9 million bathroom remodels, and currently are doing over 300 bathrooms remodeled a month from their Denver/Salt Lake City owned franchise, according to David Adamson. Re-Bath puts in such high quality tub, shower, wall and plumbing products that they actually guarantee "everything" they do for as long as you own the home. That includes the installation and labor for a LifeTime Guarantee. Re-Bath does not put in tile and grout that can get moldy again after a few years, they only install 100% mildew and mold proof non-porous Durabath SSP acrylic material. In most cases, they can remodel your master bathroom and your main bathroom for less than $11,000 - less than half the price on 2 bathrooms than what the local yellow page and big plumbing companies charge! Plus, you can have a brand new bathroom in just one day!
Even more appealing is that Re-Bath offers 12 months "zero down" deferred financing - so you can remodel one or two ugly nasty bathrooms now and pay for them the day after your house sells and closes - so you never actually have to spend a dime out-of-pocket!!! Learn more about Re-Bath of Colorado here at their web site and design your own new bathroom. See the 9News video interview here too.
Whether you're a homeowner or a Realtor, consider how much faster you can sell your home if your bathrooms DON'T look nasty like the other 10 homes for sale in your neighborhood - and think about the TRUE added value of doing a bathroom remodel. Since most home sellers have remodeled their kitchen already, maybe a new bathroom remodel or two bathrooms remodeled will be that "competitive edge" for you to get your home SOLD quickly and for top dollar! Don't forget, potential homebuyers will 'discount' your list price $10,000-$15,000 if you have one or two nasty ugly bathrooms - and especially if you have a nasty master bathroom! It might be smarter to consider a bathroom remodeling investment to 'lose' $1,958 in un-recouped bathroom remodeling investments (82.2% ROI x $11,000) than to get many purchase offers with "low-ball" prices of $5,000 to $15,000 below your list price - right? If you qualify for the deferred financing - it costs you nothing to sell your home faster and for a much higher purchase price...something many home sellers should STRONGLY consider if you have one or two nasty old outdated bathrooms in today's highly competitive Denver real estate market!
The reason bathroom remodels are so important is because many Denver homes have unattractive, dated and old colors for bathtub's, bathtub/shower tile and toilets. What person wants to buy a house with tan, gold, yellow, almond, or white patterned old tile - or worse yet, old mildew/moldy grout and caulk with water damage along the tub or shower? Bathrooms are often ranked as the #1 "turn-off" for most potential home buyers - as old nasty bathrooms and bathtub areas gives the appearance that the home sellers probably didn't keep up their house maintained very well either - right? Although wood deck additions returned 86.3% and basement remodels returned 83.8% of the remodeling cost, most home buyers don't care and put as much emphasis on those! Bathrooms get used 5 to 10 times a day (or more!) and that's where you and your kids shower and bathe in. Although minor kitchen remodels still remain #3 at an 83.1% ROI, bathroom remodels are 20 times harder to do yourself - and get forgotten about...and neglected to be remodeled the most.
Although most typical bathroom remodels cost approximately $10,000-$15,000, one national company called Re-Bath can actually put in a brand new acrylic bathtub or shower, acrylic wall systems that are mold and mildew proof, all new plumbing and a shiny new bathtub or shower door for less than $6,000 in most cases! The amazing thing is that Re-Bath can actually install and remodel your nasty bathroom in one day - yes one day. They have been doing this since 1979 with nearly 1.9 million bathroom remodels, and currently are doing over 300 bathrooms remodeled a month from their Denver/Salt Lake City owned franchise, according to David Adamson. Re-Bath puts in such high quality tub, shower, wall and plumbing products that they actually guarantee "everything" they do for as long as you own the home. That includes the installation and labor for a LifeTime Guarantee. Re-Bath does not put in tile and grout that can get moldy again after a few years, they only install 100% mildew and mold proof non-porous Durabath SSP acrylic material. In most cases, they can remodel your master bathroom and your main bathroom for less than $11,000 - less than half the price on 2 bathrooms than what the local yellow page and big plumbing companies charge! Plus, you can have a brand new bathroom in just one day!
Even more appealing is that Re-Bath offers 12 months "zero down" deferred financing - so you can remodel one or two ugly nasty bathrooms now and pay for them the day after your house sells and closes - so you never actually have to spend a dime out-of-pocket!!! Learn more about Re-Bath of Colorado here at their web site and design your own new bathroom. See the 9News video interview here too.
Whether you're a homeowner or a Realtor, consider how much faster you can sell your home if your bathrooms DON'T look nasty like the other 10 homes for sale in your neighborhood - and think about the TRUE added value of doing a bathroom remodel. Since most home sellers have remodeled their kitchen already, maybe a new bathroom remodel or two bathrooms remodeled will be that "competitive edge" for you to get your home SOLD quickly and for top dollar! Don't forget, potential homebuyers will 'discount' your list price $10,000-$15,000 if you have one or two nasty ugly bathrooms - and especially if you have a nasty master bathroom! It might be smarter to consider a bathroom remodeling investment to 'lose' $1,958 in un-recouped bathroom remodeling investments (82.2% ROI x $11,000) than to get many purchase offers with "low-ball" prices of $5,000 to $15,000 below your list price - right? If you qualify for the deferred financing - it costs you nothing to sell your home faster and for a much higher purchase price...something many home sellers should STRONGLY consider if you have one or two nasty old outdated bathrooms in today's highly competitive Denver real estate market!
Saturday, March 22, 2008
Put A Fork In Denver Real Estate?
Why is it that with so many home buyers and home sellers and Denver want to put a "fork" and write-off Denver real estate? The reality is, when looking at the Denver MLS sales statistics for the 1st 2 1/2 months of 2007, that nearly 68% of the home sales - in MOST Denver suburban cities - are equal to or greater than what they were last year! How shocking! Yes - Denver real estate is not dead! It's actually thriving...
The biggest problem right now is that many home buyers are having a tough time getting a loan to purchase their next home or their first home. That's also causing the problem for home sellers who have inexperienced Realtor's that bring buyers out house shopping - and who write contracts on houses that they can't qualify for - or get loans on! Hello McFly!!!! If you go out house shopping NOW, you'd better have the world's best Lender Letter and a very good preapproval - or you're just wasting everyone's time...
That's the only problem out there right now that's stopping Denver from actually booming (like many Texas markets are!) Sitting on the fence and waiting for a lower interest rate is another silly idea now, because in this mortgage and real estate professionals opinion, these are going to be the lowest interest rates we see all year. Don't forget, all of these national lenders going out of business like Bear Stearns, etc. need to make up for their mortgage losses - and as soon as the roller coaster stockmarket settles down, they will begin raising mortgage rates on ALL new loans to offset all the low rates they've been offering for the last year. Does it really take a genius to figure this one out? There are just way too many great deals out there in the Denver real estate market right now to sit and watch them drift away while you continue to "blow money" on rent...
It might shock you but there are still zero money down loans (around 6% on 30 yr fixed rates) out there available for people with good credit and FICO scores above 620, savings or 401(k) accounts, and a good job history. FHA loans may help you to but you'll need 3% down and a 45% backend debt ratio to qualify for - although this money can be gifted by your parents - or "rolled-in" to the purchase price if you hire a 'sharp' Realtor that knows how to wrire these Contracts and close them! Now's an amazing time to buy - and you'll thank me a year from now when you got a 5.75% 30 year fixed loan - instead of a 7% rate by Christmas...it's coming!!
The biggest problem right now is that many home buyers are having a tough time getting a loan to purchase their next home or their first home. That's also causing the problem for home sellers who have inexperienced Realtor's that bring buyers out house shopping - and who write contracts on houses that they can't qualify for - or get loans on! Hello McFly!!!! If you go out house shopping NOW, you'd better have the world's best Lender Letter and a very good preapproval - or you're just wasting everyone's time...
That's the only problem out there right now that's stopping Denver from actually booming (like many Texas markets are!) Sitting on the fence and waiting for a lower interest rate is another silly idea now, because in this mortgage and real estate professionals opinion, these are going to be the lowest interest rates we see all year. Don't forget, all of these national lenders going out of business like Bear Stearns, etc. need to make up for their mortgage losses - and as soon as the roller coaster stockmarket settles down, they will begin raising mortgage rates on ALL new loans to offset all the low rates they've been offering for the last year. Does it really take a genius to figure this one out? There are just way too many great deals out there in the Denver real estate market right now to sit and watch them drift away while you continue to "blow money" on rent...
It might shock you but there are still zero money down loans (around 6% on 30 yr fixed rates) out there available for people with good credit and FICO scores above 620, savings or 401(k) accounts, and a good job history. FHA loans may help you to but you'll need 3% down and a 45% backend debt ratio to qualify for - although this money can be gifted by your parents - or "rolled-in" to the purchase price if you hire a 'sharp' Realtor that knows how to wrire these Contracts and close them! Now's an amazing time to buy - and you'll thank me a year from now when you got a 5.75% 30 year fixed loan - instead of a 7% rate by Christmas...it's coming!!
Saturday, March 15, 2008
NO Loans for Denver Real Estate?
The NEW PROBLEM most Denver Realtors, home buyers and home sellers are dealing with is that it is VERY difficult to get mortgage loan financing today. The sellers are faced with dealing with Purchase Offers that have unrealistic financing options - many that are not available in our current market. Denver Real Estate Agents need to ensure that their buyers have talked to their lenders and make sure they have the financing they're writing into the contracts.
Way too many Denver Realtors and agents are writing Purchase Offers with financing that's NOT AVAILABLE anymore - putting their license at risk for a lawsuit - and wasting buyers and sellers time and energy! The best advice and "words of wisdom" for all Denver Realtors is to accept our changing market and changing financing options! Loans have changed and been altered dramatically, so you have to know what is currently available or you will waste time writing Purchase Offers. Call the lender and make sure you get a printed computer Loan Pre-Approval, Good Faith Estimate, Truth in Lending Disclosure and written Lender Letter describing the loan and loan closing costs - or you may end up LOSING the home of your dreams...
Realtors need to write realistic financing in your contracts and encourage buyers to have a strong Pre-Approval completed before EVER getting started or getting in the car to see homes! You'll save time and energy by being prepared and essentially being a cash buyer with a strong Pre-Approval Letter. Buying and Selling Denver and Highlands Ranch real estate should not be a tough chore when you have all your mortgage loan financing done in advance!
Way too many Denver Realtors and agents are writing Purchase Offers with financing that's NOT AVAILABLE anymore - putting their license at risk for a lawsuit - and wasting buyers and sellers time and energy! The best advice and "words of wisdom" for all Denver Realtors is to accept our changing market and changing financing options! Loans have changed and been altered dramatically, so you have to know what is currently available or you will waste time writing Purchase Offers. Call the lender and make sure you get a printed computer Loan Pre-Approval, Good Faith Estimate, Truth in Lending Disclosure and written Lender Letter describing the loan and loan closing costs - or you may end up LOSING the home of your dreams...
Realtors need to write realistic financing in your contracts and encourage buyers to have a strong Pre-Approval completed before EVER getting started or getting in the car to see homes! You'll save time and energy by being prepared and essentially being a cash buyer with a strong Pre-Approval Letter. Buying and Selling Denver and Highlands Ranch real estate should not be a tough chore when you have all your mortgage loan financing done in advance!
Friday, March 14, 2008
Luck of the IRISH Buying/Selling Denver Real Estate?
It might take a bit more than "luck" of the Irish to help you buy or sell your next Denver Colorado home - with the deteriorating mortgage market situation. However, good loans still exist for those borrowers who haven't had credit problems! Some parts of the Denver real estate market are selling WELL too - with multiple purchase offers - including the DTC area (Centennial/Greenwood Village) and Highlands Ranch.
The most challenging part of of buying or selling - is being able to secure a mortgage loan in advance that you qualify for. Even buyers with great credit are facing an uphill battle and higher monthly mortgage insurance when applying for loans. Gone are the days of easy qualifying...so please do plan in advance to get pre-approved for your mortgage loan financing. Most experienced Realtors, like yours truly, won't even take you out house shopping until you have mortgage financing completed FIRST!!! You'll be crying in your green beer if you lose the "home of your dreams" because you procrastined getting a Loan Approval done, only to find out you weren't easily qualified like you were 2-3 years ago.
It takes more corned beef and "cabbage" to get loans closed now - so NEVER wait until the last minute. Many fine home deals are available now - and some very nice foreclosure buys too - if and only if you can get a loan! Don't miss out on a great time to buy in many Denver suburban neighborhoods - the bottom of the pot-of-gold in NOW.
The most challenging part of of buying or selling - is being able to secure a mortgage loan in advance that you qualify for. Even buyers with great credit are facing an uphill battle and higher monthly mortgage insurance when applying for loans. Gone are the days of easy qualifying...so please do plan in advance to get pre-approved for your mortgage loan financing. Most experienced Realtors, like yours truly, won't even take you out house shopping until you have mortgage financing completed FIRST!!! You'll be crying in your green beer if you lose the "home of your dreams" because you procrastined getting a Loan Approval done, only to find out you weren't easily qualified like you were 2-3 years ago.
It takes more corned beef and "cabbage" to get loans closed now - so NEVER wait until the last minute. Many fine home deals are available now - and some very nice foreclosure buys too - if and only if you can get a loan! Don't miss out on a great time to buy in many Denver suburban neighborhoods - the bottom of the pot-of-gold in NOW.
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