Colorado had snow last week and is having shorts weather this week. Fall is truly here. As is the perennial question I hear from folks about real estate, "Do homes sell in Fall and Winter?" The short answer is yes, at a slower rate. In the neighborhoods where investors reign king, the rate barely drops, except at year end. The peak of activity is still in early summer.
The more important question to answer for a savvy buyer or seller is, "What is going on in the neighborhood where I care about the real estate?" Looking at our latest heat map of neighborhoods in the Denver Metro area, I see several healthy neighborhoods, some beginning to feel the declines caused by distressed homes, many seeming to slow the descent or even turn around. The variation is really better measured on a neighborhood level. (If you want a copy of the heat map for your part of town, just contact me with your email and the address or neighborhood, so I can send you your map.)
Another valuable question to answer is, "How fast are homes selling in my area?" The adsorption rate quantifies this and is easy for anyone with the data to calculate. Adsorption rate is how many months it would take at this rate of sales to sell the current inventory. The number is described in terms of "months of supply". Ask your realtor for the adsorption rate. (Here's a more thurough explanation of adsorption rate.) If you're participating in a buyer's or a seller's market your strategy should shift.
There are some other important questions that are purely subjective. Questions around your ability to move, timing around other events in your life, your finances compared to what is needed in the market (a buyer and a seller consideration), and how you choose to position your home in the market as a seller all inform your decision to buy and/or sell.
For first time home buyers wanting to capture the $8000 tax credit, you have to get a home under contract to close by end of November. October is your time to snag the tax credit. Congress may or may not extend this savings.
Tuesday, September 29, 2009
Saturday, September 19, 2009
First Time Homebuyer Beware
This reminder is timely and well worth considering:
Want the Home Buyer Tax Credit? Don’t Shop for Furniture
Dow Jones Newswires, By Dawn Wotapka
September 18, 2009
Excited to move into a new home, some of these first-timers start hitting the stores shopping for new furniture, appliances or curtains.
Big mistake.
Real estate agents are reminding buyers to wait until the close to start buying stuff.
The reason: Lenders are occasionally running credit reports on closing day, and they might not like to see an increase in credit card debt or indications that debt could soon increase, says Lew Reich, a Realtor with Keller Williams Realty in Plano, Texas.
Buying is off the table, but so is serious looking: Don’t even think about checking out that new car or boat because even an inquiry on a credit report might raise red flags. Too many inquiries, Mr. Reich adds, might be detrimental, particularly for those who just met the lender’s minimum requirements.
“If someone’s squeaking by and, all of a sudden, they may be looking at increasing debt, the lenders will have a keener eye in looking at your loan,” he says.
“Don’t look until you’ve closed is basically what it comes down to. That’s the safest way. Stay out of the stores.”
While such measures have been used over the years, lenders, still dealing with the fallout from the boom’s lax lending standards, are being especially particular these days. Even buyers with great credit scores face scrutiny.
Agents also advise not moving money between accounts, so don’t join two savings accounts, transfer large sums out of savings or add more funding to checking. Emptying out an account could look like money’s being spent, and lenders might request a paper trail for the money flow, Mr. Reich explains. That could delay the closing or, in rare cases, terminate the loan. That wouldn’t necessarily free the buyer from the obligation to buy the home, he warns.
Dan Rider, a broker with Dickson Realty in Reno, Nev., says one of his recent closings was delayed by five days when lenders spotted a $500 deposit in a buyer’s checking account. It wasn’t a gift – it was a repaid loan from her mother – but it sparked concerns that the buyer needed help to close the deal. Though the buyer had a healthy checking balance, the lender wanted canceled checks and bank statements and both parties had to write an explanatory letter.
“The simplest things can create fairly major delays,” Mr. Rider says, adding buyers could face financial penalties for late closings.
And of course, with the clock ticking on that tax credit, there’s also the penalty of missing out on eight grand.
Although, delayed buyers could still get lucky: A Senate bill introduced Thursday seeks to extend the credit for another six months.
Want the Home Buyer Tax Credit? Don’t Shop for Furniture
Dow Jones Newswires, By Dawn Wotapka
September 18, 2009
Excited to move into a new home, some of these first-timers start hitting the stores shopping for new furniture, appliances or curtains.
Big mistake.
Real estate agents are reminding buyers to wait until the close to start buying stuff.
The reason: Lenders are occasionally running credit reports on closing day, and they might not like to see an increase in credit card debt or indications that debt could soon increase, says Lew Reich, a Realtor with Keller Williams Realty in Plano, Texas.
Buying is off the table, but so is serious looking: Don’t even think about checking out that new car or boat because even an inquiry on a credit report might raise red flags. Too many inquiries, Mr. Reich adds, might be detrimental, particularly for those who just met the lender’s minimum requirements.
“If someone’s squeaking by and, all of a sudden, they may be looking at increasing debt, the lenders will have a keener eye in looking at your loan,” he says.
“Don’t look until you’ve closed is basically what it comes down to. That’s the safest way. Stay out of the stores.”
While such measures have been used over the years, lenders, still dealing with the fallout from the boom’s lax lending standards, are being especially particular these days. Even buyers with great credit scores face scrutiny.
Agents also advise not moving money between accounts, so don’t join two savings accounts, transfer large sums out of savings or add more funding to checking. Emptying out an account could look like money’s being spent, and lenders might request a paper trail for the money flow, Mr. Reich explains. That could delay the closing or, in rare cases, terminate the loan. That wouldn’t necessarily free the buyer from the obligation to buy the home, he warns.
Dan Rider, a broker with Dickson Realty in Reno, Nev., says one of his recent closings was delayed by five days when lenders spotted a $500 deposit in a buyer’s checking account. It wasn’t a gift – it was a repaid loan from her mother – but it sparked concerns that the buyer needed help to close the deal. Though the buyer had a healthy checking balance, the lender wanted canceled checks and bank statements and both parties had to write an explanatory letter.
“The simplest things can create fairly major delays,” Mr. Rider says, adding buyers could face financial penalties for late closings.
And of course, with the clock ticking on that tax credit, there’s also the penalty of missing out on eight grand.
Although, delayed buyers could still get lucky: A Senate bill introduced Thursday seeks to extend the credit for another six months.
Tuesday, September 8, 2009
What Do Buyers Want? 6 Keys
FREE Information Can Save Sellers Thousands, Frayed Tempers, and Lost Time
Many homeowners got caught in the shifting market when they tried unsuccessfully to sell their homes. Others just got "lucky" and sold their homes. But was it really luck? Before starting to sell, consider the six key reasons home buyers chose the homes they did buy in 2008. Put knowledge of their patterns to use for your benefit. The Denver real estate market is shifting again--in many neighborhoods the number of expired and withdrawn homes is dropping and the market is picking up. There is more to selling than just the price war and the beauty contest. Yes, these are 2 of the factors according to a recent National Association of Realtor (NAR) survey. What are the 4 other keys? How do Denver buyers compare to the national norms?
...Find out Denver Buyers' 6 keys to insure your success.
Attend either FREE class:
*Saturday 9/12 from 10am-noon at Your Castle Real Estate conference room, 9085 E Mineral Cir, Englewood, 80112
*Wednesday 9/23 from 6pm-8pm at Jefferson Co Asso. Realtor, 950 Wadsworth Blvd, Lakewood 80214
RSVP here to secure your free materials. For more information call Beth (303-962-4272 x626).
Many homeowners got caught in the shifting market when they tried unsuccessfully to sell their homes. Others just got "lucky" and sold their homes. But was it really luck? Before starting to sell, consider the six key reasons home buyers chose the homes they did buy in 2008. Put knowledge of their patterns to use for your benefit. The Denver real estate market is shifting again--in many neighborhoods the number of expired and withdrawn homes is dropping and the market is picking up. There is more to selling than just the price war and the beauty contest. Yes, these are 2 of the factors according to a recent National Association of Realtor (NAR) survey. What are the 4 other keys? How do Denver buyers compare to the national norms?
...Find out Denver Buyers' 6 keys to insure your success.
Attend either FREE class:
*Saturday 9/12 from 10am-noon at Your Castle Real Estate conference room, 9085 E Mineral Cir, Englewood, 80112
*Wednesday 9/23 from 6pm-8pm at Jefferson Co Asso. Realtor, 950 Wadsworth Blvd, Lakewood 80214
RSVP here to secure your free materials. For more information call Beth (303-962-4272 x626).
Tuesday, September 1, 2009
Fall Garden Prep
Here are Fall garden tips courtsey of John Tedrick, one of our trusted property inspectors at National Property Inspections. His regular newsletters are full of tips. Feel free to ask him for your free copy at npiweb.com/tedrick.
Fall is the time of year to prepare your garden for the winter months ahead. Here are some tips to help you with your winter garden prep.
• Bring tropical and other plants inside for the winter.
• Dig and store summer and fall-flowering bulbs.
• Avoid heavy pruning of trees and shrubs going into the winter months.
• Apply a layer of mulch about 2 to 4 inches deep to the floor of the garden.
• Apply mulch or a wrap around the base of bushes and trees to protect them from the cold temperatures.
• Rake up any leaves that may have already fallen.
• Turn off the water supply to your hose tap and irrigation systems.
• Winterize garden furniture if necessary.
• Fertilize to give your garden one last nutrition boost before winter.
• Empty out and bring in any pots that could break in cold temperatures.
• Plant spring-flowering bulbs with their roots down.
To find out more, visit HGTV.
back to the top
• Avoid heavy pruning of trees and shrubs going into the winter months.
• Apply a layer of mulch about 2 to 4 inches deep to the floor of the garden.
• Apply mulch or a wrap around the base of bushes and trees to protect them from the cold temperatures.
• Rake up any leaves that may have already fallen.
• Turn off the water supply to your hose tap and irrigation systems.
• Winterize garden furniture if necessary.
• Fertilize to give your garden one last nutrition boost before winter.
• Empty out and bring in any pots that could break in cold temperatures.
• Plant spring-flowering bulbs with their roots down.
To find out more, visit HGTV.
back to the top
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