RE/MAX Cherry Creek Newsletter

 

January, 2012

Happy 2012!

The year is starting out with the lowest number of properties in the market in 10 years! Interest rates are still hovering around 4% and we are seeing improvement in Colorado’s unemployment figures to below 8%. These are all very positive signs that 2012 could be the beginning of Colorado’s real estate recovery.

If you are thinking of buying or selling, or you know someone who is, give me a call I’m always happy to get your referrals.

All the best-Lynn

Email me with any questions!

Check out my website!

 

What’s Happening Around Town?


National Western Stock Show

National Western Complex

January 7-22


The 31st Annual Colorado Indian Market and Southwest Showcase

Denver Merchandise Mart

January 20-22


Mile-High Snowfest

Downtown Denver

January 25-30


Colorado Home and Garden Show

Colorado Convention Center

February 11-19

Featured Articles

Solutions to home irritations that won’t bust your budget

Setting straight common homebuying misconceptions

Qualifying for loans when buying investment property

RE/MAX Cherry Creek Newsletter

 

Now is the time to bulk up your investment property portfolio

It’s a new year, the time when many of us head back to the gym, vowing to finally get in shape. But it’s not only our bodies that can use some attention. Now is a good time to take stock of our financial health, as well.

For those looking to add muscle to their financial portfolios, the time has rarely been better to acquire investment property. “Record low interest rates, increasing rents, record-low vacancy rates and stable prices — the stars are aligned for people to take advantage of this unique opportunity,” notes Real Estate Insider.

Among the many reasons to act now:

  • Cash flow: Due to today’s low interest rates, investors can often rent their properties for more than their monthly costs of ownership.
  • Rents are on the rise: Rents rose more than 3% annualized in the third quarter of 2011, according to Lawrence Yun of the National Association of Realtors. Yun projects that this growth will continue, due to a rising number of young adults, people renting after being displaced by foreclosures and the low rate of apartment construction.
  • In-migration: Colorado remains a draw for those relocating from populated states. In 2010, Census Bureau figures show that we received a net 10,427 new residents from California; 5,892 from Texas, 4,600 from Arizona and 3,221 from Georgia. In addition, several major companies have their eyes on Colorado: Arrow Electronics will move its headquarters here; Coleman is considering the same; and General Electric is planning a $300 million solar-panel plant in Aurora — all factors that should enhance the real estate (and rental) market.
  • Low cash input: Most investment properties can be purchased with only 25% cash down, making it possible to acquire large amounts of real estate for relatively small amounts of cash.
  • Appreciation: According to NAR’s Yun, home prices are currently undervalued by as much as 14% and could double in 14 to 20 years.

If you’d like to learn more about how investment property can improve your financial outlook, call me. I would be happy to guide you to high-performing areas of the city. Meanwhile, I wish you a healthy 2012 — physically, financially and in every other way!

 

 

Solutions to home irritations that won’t bust your budget

When it comes to home upkeep, it’s not always the big things that make us crazy; it’s the crooked picture, the wobbly table, a few scratches on what used to be gleaming new stainless steel.

The good news is that it doesn’t take big money to solve these small irritations. Here are some products for under $5 that offer solutions to common household problems, recommended by Realtor Magazine.

  • Get it straight: Tired of putting dozens of holes in your wall before getting a picture centered? There’s no need to make Swiss cheese of your drywall any longer. Ook Shield offers picture hangers with adhesive backing. Stick them to the wall, then test the placement of your picture. If it’s wrong, simply unstick the hangar and move it to a new spot. When the picture looks just right, hammer the nails into the hangar. Voila! No extra holes. A 3-pack of 30 Ook Shield hangers is $4.98; acehardwaresuperstore.com
  • Take it off: That cute sticker looked fine when you first put it on the refrigerator–but that was five years ago. How can you scrape it off without damaging the refrigerator’s finish? Try ScrapeRite blades. Made from plastic sharp enough to remove adhesive, caulk and dried paint from windows and appliances, they’re also flexible enough to avoid scratching surfaces. A 5-pack of blades is $2.99; scraperite.com
  • Make it level: Do you have cabinets that lean and tables that tip? Buy these matchbook-sized vinyl wedges to even things out. Called Wobble Wedges, they’re often used by plumbers to stabilize wobbly toilets and can support up to 500 pounds. A 6-pack sells for $2.99; containerstore.com
  • Preserve what’s left: If you’re like many, you often buy a tube of caulk for a small project, then throw it in the cabinet, where it sits for months on end. By the time the next project comes up, the caulk is as dry as a desert. With Little Red Cap covers, your caulk will remain fluid for a year. Just pull the tiny rubber sheaths over the tip of the tube. A pack of 35 sells for $4.89; wwhardware.com

 

For-sale-by-owner advocate turns to real estate agent for results

When selling real estate, going it alone can often mean being mighty lonely. That was the case recently with Cory Sambrotto, founder of ForSaleBy Owner.com, a website that encourages homeowners to act as their own selling agents.

According to the Wall Street Journal, Sambrotto tried to sell his two-bedroom luxury Manhattan condominium for six months, using online listings and classified ads. Instead of being besieged by buyers, however, he found himself waiting for a crowd that never arrived. Finally, he decided to get the help he advocates others avoid: he hired a professional real estate agent. The agent discovered that Sambrotto had priced his condo too low and wasn’t attracting the right customer demographic. He suggested Sambrotto up the price to $150,000, at which point the condo sold.

Sambrotto’s story illustrates the value in hiring a professional. Realtors research the market, know the right price points and bring in customers homeowners can’t often access. They save homeowners time and, as this case illustrates, often significant amounts of money.

In addition, their many years of experience allow them to offer insight and solutions to the myriad of issues that can arise during any sales or purchase transaction — something no website can provide.

 

 

Fact vs. myth: Setting straight common homebuying misconceptions

While today’s homebuyers are relatively savvy when it comes to knowing the ins and outs of the purchase process, many are still confused when it comes to specific details. According to a recent survey of 1,000 people by Zillow, homebuyers still commonly hold five main misconceptions:

MYTH: Home values will appreciate by 7% a year.

Fact: Historically, home values in a normal market appreciate by 2 to 5% in a year.

MYTH: Homebuyers must purchase private mortgage insurance, regardless of the amount of their downpayment.

Fact: Buyers only need to purchase this insurance if their downpayment is less than 20% of the home’s purchase price.

MYTH: The appraisal determines if a home is in good condition.

Fact: An appraisal estimates fair market value. It’s the home inspector’s job to determine if the house is in good condition.

MYTH: Buying homeowner’s insurance is optional.

Fact: Lenders require homebuyers to purchase homeowner’s insurance.

MYTH: A prospective buyer owns a home after the purchase contract is signed.

Fact: The purchase and sales agreement is just the beginning of the sales closing process. It can take much more time until a potential buyer finally takes ownership.

 

RE/MAX Cherry Creek Newsletter

Denver Zoo wins award for green initiatives

From its polar bear exhibits to its concessions stands, the Denver Zoo is making other zoos green with envy over its sustainability advances. The zoo was recently honored with the first Green Award at the annual conference of the Association of Zoos and Aquariums in Atlanta, Georgia.

According to the Stapleton Front Porch, which reported the award, the Denver Zoo has been working on its green efforts for ten years. In that time, the staff has implemented many environmentally friendly initiatives.

To increase water conservation, for example, the zoo xeriscaped, reducing the amount of water required for its landscapes. It also renovated water filtration systems in the polar bear and sea lion exhibits. Such initiatives lowered the zoo’s annual water usage by approximately 60% from 1999 to 2010, a savings of 227 million gallons.

The zoo also began feeding its animals locally grown produce. Exotic birds, gorillas and others now eat Colorado apples, melons, lettuce, collard greens and cucumbers, reducing the zoo’s carbon footprint in regard to food transportation.

And once that food is digested, the resulting waste will soon provide energy for the institution. The Denver Zoo is developing a new “waste-to-energy” biomass gasification system in the Asian Tropics exhibit scheduled to open in the spring of 2012. The system is designed to convert 90% of the zoo’s animal waste and human trash into usable combustible gas, generating electricity for exhibit buildings, hot water to heat the elephant center and other facilities and even to thaw snow and ice on sidewalks.

 

 

RE/MAX Cherry Creek Newsletter

Qualifying for loans when buying investment property

If you are considering acquiring investment property, as we suggest in today’s newsletter, take note that the guidelines to obtaining a loan in this case are slightly different than when financing a primary residence. To take out a loan for investment property, you:

  • Must make a minimum downpayment of 20-25%.
  • Must demonstrate that you have cash reserves equal to six months of the investment property’s mortgage payment (including principal, interest, taxes and insurance).
  • Will need an investment appraisal. In this case, the appraisal includes a rent analysis and, therefore, will run $100-$125 more than a standard appraisal.
  • Should expect interest rates that are 3/8 – 3/4% higher than those for owner-occupied properties.

For more details and advice, call or email Guild Mortgage today. Ask for Lisa Miles or Julie Whalen 303-320-1556; www.guildmortgageofcherrycreek.com.

 

Metro Market at a Glance

Residential Market Data

November 2011 Ocober 2011 November 2010 Vs. 1 year ago

Active

10,213

11,504

15,232

-32.95%

Under Contract

2,736

3,068

2,482

10.23%

Sold

2,468

2,482

2,142

15.22%

Avg Days on Market

99

102

108

-8.33%

Avg Sold Price

$275,951

$269,503

$281,466

-1.96%

Condominium Market data

November 2011 Ocober 2011 November 2010 Vs. 1 year ago

Active

2,421

2,652

4,649

-47.92%

Under Contract

629

776

619

1.62%

Sold

600

701

524

14.50%

Avg Days on Market

105

102

125

-16.00%

Avg Sold Price

$153,526

$160,723

$165,113

-7.02%

*Includes active and under contract. Based on information from Metrolist, Inc. for the period 11/1/10 through 11/30/11.

Note: This representation is based in whole or in part on content supplied by Metrolist, Inc. Metrolist, Inc. does not guarantee nor is in any way responsible for its accuracy. Content maintained by Metrolist, Inc. may not reflect all real estate activity in the area.

RE/MAX Cherry Creek Newsletter

RE/MAX Cherry Creek Newsletter

 

Sent to *|EMAIL|* — why did I get this?unsubscribe from this list |
update subscription preferences*|LIST:ADDRESSLINE|*
*|REWARDS|*

 

  • Newsletter
  • Facebook
  • LinkedIn