MARKET CONDITIONS & OFFER PRICE

The intricacies of determining how much to offer on a home purchase is a very hot topic in the current buyer's market. It is especially important to consult with your Realtor at this time because, despite what you might hear on the nightly news, not all markets are declining. In fact, roughly half of the markets measured are actually seeing increases in value.

For example, recent reports from Florida show that condos in some areas that once sold for $150,000 are now selling for $30,000. However, if you look for a deal like that in Seattle, you won’t find one. You may even find yourself in a bidding war for a home. Price fluctuations can even vary from neighborhood to neighborhood within the same city. Keep in mind, all real estate is local. That’s why it helps to consult with your Realtor.

In the case of a seller’s market (where there are more buyers than there are homes for sale), the sellers tend to have the advantage because houses sell quickly and often for more than asking price. If you’re a buyer in this market, and you make an offer that is considered too low, you may be outbid by others and lose the house.

A buyer’s market like the one most areas are experiencing today, (more homes for sale than there are people buying), is often characterized by a more than six month absorption rate (the rate of time the average home takes to sell), homes often sit on the market for months with few or no offers. In this type of market, the buyer is clearly at an advantage, and you’ll likely have your choice of homes. The danger here is that if you wait too long to make an offer on a home, hoping that prices will go even lower, you could actually miss the lowest price and end up having to pay more as the market turns around.

Many real estate professionals advise that you treat your home as a long term investment that may not increase in value as much as you had hoped in the short term, but will pay off with patience. Keep this in mind also as you formulate an offer for any home you might be interested in. If you find a home you really like and can afford, waiting for some sort of arbitrary bottom may end up costing you the chance to get that home.

Remember that owning a home means you’re no longer paying someone else’s mortgage, equity and tax deduction by renting from them. You are personally reaping the benefits by building up your own equity (even if it’s not as quick as you’d hoped at the time) and tax deductions on the mortgage and property taxes. Housing markets are cyclical, and in the overwhelming majority of cases what goes down will go up again, it may just require some patience before that happens.

If you are an investor (or thinking about becoming one), you have another set of concerns to deal with when considering market conditions and your offer. You’ll need to consider what you want to do with the property. Are you going to fix it up and resell (flip) right away, or do you prefer to take on a landlord role and rent it out?

In a buyer’s market, it’s not as easy to make a profit by fixing and flipping properties. This is done best in a market where homes are undervalued. A buyer’s market can be a good time to buy a property to rent out. Just make sure that the price you offer will allow you to afford any necessary (ongoing) repairs, your mortgage and interest payments, vacancies and so on.

Your Realtor can provide invaluable assistance as to the offer you may want to make on a home. Ultimately it’s up to you, but your Realtor will have the experience and know-how to guide you in making that decision.

House Hunt at Your Leisure;
http://www.fortcollinsdreamhome.com/

http://www.lovelanddreamhome.com/

http://www.windsordreamhome.com/

http://www.wellingtondreamhome.com/

http://www.greeleydreamhome.com/

http://www.longmontdreamhome.com/

Please call me if you or someone you know are thinking of buying or selling and find out what today's local market means to you!

Home Down-Payment Gifts May Cease

Is it the End of Nehemiah and Ameridream Down Payment Assistance Grant Programs?

Proposed Aid Ban Would Deal a Blow To Nonprofit Groups

In what could be a crippling blow to down payment-assistance programs, the Department of Housing and Urban Development is proposing that home buyers using certain government-insured loans be prohibited from accepting downpayment gifts that are indirectly funded by the home seller.

HUD’s proposed rule threatens dozens of nonprofit groups, including Nehemiah Corp. of Sacramento, Calif., that have doled out hundreds of millions of dollars of payment assistance to mostly low-income home buyers across the country.

Such groups have been controversial because many provide down-payment gifts to buyers and are then reimbursed by individual home sellers and home builders. Critics say that some builders have included the cost of the gift into the price of the house, which inflates values. Critics also say that these gifts lead to higher than normal foreclosure rates.

HUD officials declined to comment beyond the rule. The rule comes one year after the Internal Revenue Service said many seller-funded gifts benefit profit driven sellers and may not qualify as charitable activity.

According to HUD, the overall foreclosure rate for FHA mortgages used to purchase homes in 2004 was 3% while such loans involving downpayment gifts from nonprofit groups had a foreclosure rate of 6.4%.

Supporters say down payment gifts have served low income home buyers better than subprime mortgages, which have even higher default rates.

Excerpts from a Wall Street Journal article dated, May 14, 2007

More Information at; http://www.irs.gov/newsroom/article/0,,id=156675,00.html

If you are thinking of Buying, Selling or Investing in Real Estate, contact me to work with a professional that has your interests in mind!

House hunt at your leisure and search ALL homes listed in Northern Colorado at any of the following websites;

http://www.FortCollinsDreamHome.com/

http://www.LovelandDreamHome.com/

http://www.WindsorDreamHome.com/

http://www.WellingtonDreamHome.com/

http://www.LongmontDreamHome.com/

http://www.GreeleyDreamHome.com/

Tips for Selling Your Home
How to Get Top Dollar!

With a little preparation and the guidance of a professional real estate agent, you can help make the sale of your home go much more smoothly. Key factors include setting the proper price, effective marketing, and making your home sparkle inside and out.

Inspect Your House
Before putting your house on the market, think about conducting a seller's property inspection. The inspection can help identify previously unknown problems; as well as give you time to make any necessary repairs or renovations. Likewise, many states require sellers to disclose known problems with their house. Consider hiring a professional home inspector, as they can often identify problems that are easily overlooked by a novice. Important things to look for include leaks, evidence of wood rot, structural integrity and a thorough assessment of major systems such as the plumbing, electrical, heating and cooling systems.

Find the Right Agent
The right agent can help you set an appropriate price, advertise and show the house to buyers, handle negotiations, draw up offers and coordinate the closing. In short, they can help you sell your home in less time, with less aggravation, and for more money. Contact me, your Northern Colorado Real Estate professional, and set up a meeting for a listing presentation. This is gives you an opportunity to hear my plans for selling your property, as well as learn other important factors such as:

• Information about the current market and comparable sales
• Plans for marketing the house, including advertising and open houses
• How much money you'll net based on different selling prices.

Give Your Home "Curb Appeal"
Even if your home is in good shape, there are probably a few things you can do to make it really sparkle. This is what's known as "curb appeal," and experts agree that making a good first impression is a crucial factor in attracting buyers. Improving your home's curb appeal can be as easy as tidying up the yard, washing windows, touching up exterior paint or even adding a new bed of flowers.

Cleanliness and Clutter
Houses look a lot smaller if they're crammed full of belongings–and you can't just hide it in the garage either. Buyers like to imagine storage spaces full of their belongings, not yours. Get rid of clutter, and give the house a top-to-bottom cleaning. In particular, make sure the kitchens and bathrooms are immaculate. Buyers will notice right away if these rooms aren't spotless.
If you want to go the extra mile, you might even consider "staging" your house for showings. This can be as simple as adding houseplants and some decorative lamps, all the way to hiring an interior designer to bring in elaborate rugs, antique furniture and expensive artworks.

If you or someone you know, are thinking of Buying, Selling or Investing in Real Estate, contact me to work with a professional that has your interests in mind.

House hunt at your leisure and search ALL homes listed for sale in Northern Colorado at ANY of these websites:

http://www.fortcollinsdreamhome.com/

http://www.lovelanddreamhome.com/

http://www.windsordreamhome.com/

http://www.greeleydreamhome.com/

http://www.wellingtondreamhome.com/

http://www.longmontdreamhome.com/

Thinking about a new home?

Now is the time to make a move!

Dreaming about more space or the perfect retirement spot? You’ve probably wondered how much more home you can afford.

Since the amount you can comfortably borrow and your other financial goals are relatively fixed, the answer rests in the successful sale of your current home. A strong selling price may well make the difference in reaching your lifestyle and location dreams.

Well-priced homes that are compellingly marketed sell quicker for more money. Partnering with me, an experienced real estate agent, is the best plan to get the most value out of your current home. Call today to schedule a free Comparative Market Analysis, and see what your home would sell for in today's market.

Thinking about buying your first home? If you are uncertain whether you can afford to buy and what your payments will look like, call me to get started. Whether you are interested in finding out information about the home buying process, or are ready to look into payment options and see if home ownership will work for you, call me, to work with a professional that has your interests in mind.

House hunt at your liesure and view ALL homes listed for sale in Northern Colorado at: www.FortCollinsDreamHome.com

Carrie Holmes, GRI, REALTOR

Coldwell Banker Residential Brokerage

970-988-0242

Carrie.Holmes@ColoradoHomes.com

www.CarrieHolmes.com

Top 7 Reasons to Use a Buyer's Agent
When Purchasing Your Home

Purchasing a home is a big step, and a big decision. The average person spends around 1/3 of their income on their home. The home that you choose has a big impact on your life, and can have a big impact on your finances, as well. It always surprises me when Buyers attempt to "go at it alone" because of the possibility of mistakes. A good Buyer's Agent is invaluable to a Buyer, and can be the difference between a wonderful transaction, and a nightmare.

1) Full Access to the MLS
The Multiple Listing Service (MLS) is a powerful tool that only Realtors have access to. When listing agents market a home for sale, they typically allow any Realtor to present the home to potential buyers, and to present contracts for purchase. The MLS is a database of all homes listed by Realtors, and represents roughly 99% of the homes for sale in any given market. As technology advances, so does the MLS. It has evolved into an extremely powerful search engine that allows your buyer's agent to enter in search criteria, and returns only homes that match those specific parameters. Buyers can find a lot of this information online through IDX feeds available on many websites, but this information is a "watered down" version of the MLS because the IDX search engines aren't quite as powerful, and don't return as detailed profiles as the MLS.

2) Maximize Your Time
While driving neighborhoods is an excellent idea to help you decide which locations you prefer, it's not a very efficient way to find your new home. Gas is expensive, and your time is valuable. Your Buyer's Agent will listen to your needs, make fantastic suggestions based on your likes & dislikes, and provide you with a list of homes that ALL match your wants & needs. Your Buyer's Agent has helped MANY new homebuyers through MANY purchases, and will help you better organize your search & decision making process – saving you valuable time.

3) Representation
Listing Agents enter into legally binding agreements that require them to ALWAYS act in the best interest of the seller. They are the seller's "coach" and will make sure that their clients' best interests are looked after. Luckily, your Buyer's Agent is there to make sure YOUR best interests are accounted for. With your expert Buyer's Agent in your corner, you can rest assured that you're on, at least, even ground with the home seller. A football team would be at a pretty significant disadvantage without a coach – just as you would be without a Buyer's Agent.

4) Negotiating Power
The MLS maintains a record of, not only all homes listed by Realtors in a given market, but also the sales price of those homes. Your Buyer's Agent will run a Comparative Market Analysis (CMA) to determine a prospective home's Fair Market Value (FMV). In simpler terms, your Realtor will look at similar homes in the same neighborhood that have sold recently. This way, you will know whether or not the seller has their home priced fairly. If the home is priced over Fair Market Value, your Buyer's Agent can present your "under asking price" offer with plenty of firepower – and a greater chance that the offer will be accepted.

5) Experience
The average person buys 3-5 homes in their lifetime. A good Buyer's Agent will assist in 3-5 home purchases every month. What might seem complicated and intimidating to you is fairly common and familiar to your Realtor. Your Buyer's Agent will know what to expect, and will know when to alert you if anything out of the ordinary occurs.

6) Industry Contacts
It takes a lot of people to close a real estate transaction – Buyer's Agent, Listing Agent, Loan Officer, Inspector, Appraiser, Insurance Agent, General Contractors, and sometimes more! A good agent will come with a strong closing team that has performed in the past, and will continue to perform. A transaction is only as strong as its weakest link – with your strong Buyer's Agent & their closing team, you can rest assured that you will have plenty of support.

7) Piece of Mind
If you are like most people, your home is the largest purchase you will ever make. The average person spends around 1/3 of their total monthly income on their home. This is a big decision and you don't want to go at it alone. When you use a trusted Buyer's Agent, you know that your best interests are accounted for, and that you can feel confident in your purchase.

Purchasing a home can be a fun and exciting process. I specialize in working with Home Buyers and my experience as such, helps to ensure that you are making the right decisions. If you would like to find our more, please call me at 970-988-0242, to discuss how I can be of assistance. Feel free to visit my website at www.CarrieHolmes.com where you can search for ALL homes listed for sale in Northern Colorado.

New Tax Deduction Will Make Housing More Affordable

WASHINGTON, Dec. 9 /PRNewswire/ -- A new tax deduction will make homes more affordable next year by allowing many American home buyers to write-off premiums for private and government mortgage insurance. The deduction, which will help families who can't afford the traditional 20 percent down payment for a home mortgage, will be effective for the 2007 tax year.

"Making the cost of mortgage insurance tax deductible helps those who need it most: low- and moderate-income Americans, primarily first-time home buyers, who are financially responsible but simply don't have the means to amass a 20 percent down payment," said Steve Smith, Chief Executive Officer of The PMI Group, Inc. and President of Mortgage Insurance Companies of America (MICA). "We congratulate Congress for taking this important step to address a key barrier to homeownership that so many Americans face."

Borrowers closing loans to purchase homes in 2007 who have annual household incomes of $100,000 or less will be able to get a low down payment mortgage and deduct the full cost of their mortgage insurance premiums on their federal tax return.

"We are pleased that policymakers have recognized mortgage insurance as a cost of finance just like mortgage interest," said MICA Executive Vice President Suzanne Hutchinson. "Mortgage insurance plays a crucial role in maintaining the stability and continued health of the mortgage finance system. In today's climate of steadily rising interest rates and slowing home price appreciation, an insured loan is often the most borrower-friendly alternative."

The legislation has been supported by a broad range of consumer, business, taxpayer, civil rights, civic and labor groups.

Find your new home by searching ALL HOMES FOR SALE in Northern Colorado at:
www.FortCollinsDreamHome.com
or
www.LovelandDreamHome.com
or
www.GreeleyDreamHome.com

Call Carrie Holmes, GRI to schedule time to look for your new Dream Home! 970-988-0242

TIPS FOR SELLING A HOME IN A BUYER'S MARKET

The following are suggestions for sellers who want to speed the process.

Price Your Home According to the Current Market: Just because a house comparable to yours sold for a very high price last year does not mean you will be able to realize the same price when selling your home now. Work with a full-service real estate professional to determine the appropriate, competitive listing price for your home. Remember that in this market, your sales associate may encourage a list price in accordance with other homes currently on the market, rather than those previously sold. Visit www.FortCollinsDreamHome.com and request a Free Comparative Market Analysis.

Be Thankful for Appreciation: While price appreciation has slowed in some markets in 2006, it is important to look realistically at the financial gains you have made over the years through your home equity. According to the Office of Federal Housing Enterprise Oversight over the last five years through June 30, 2006 existing homes in the U.S. appreciated more than 56%.

Make Your Home More Marketable: When a buyer sees your house for the first time, a critical first impression is made. If applicable, maximize curb appeal by trimming trees and planting flowers. A fresh exterior coat of paint might also prove valuable. Consider neutral colors for interior walls and carpets. Dark colors on walls, along with unnecessary clutter, make rooms look smaller.

Conduct a Full Home Inspection: If repairs are required, it is a good idea to go ahead and fix the problems. Potential buyers will cast an extremely critical eye over your home and, in a situation when more houses are available on the market from which to choose, they may take a pass on a home that needs too many repairs. Be sure to have the home inspection report available for prospective buyers itemizing all of the repairs that have been made and the associated cost for each.

Offer a Seller's Contribution: A seller can sweeten the deal by including offering assistance to the buyer in ways that do not require lowering the asking price. These tactics can allow your home to stand out from the crowd.

For example:

1. Offer to buy down the interest rate on the buyer's mortgage.
2. Offer to pay a portion of the buyer's closing costs.
3. Cover the buyer's mortgage payments for up to the first six months. Depending upon the size of the mortgage the buyer can save several thousand dollars and the seller still gets the original asking price for the home. Again, depending on the mortgage, the seller will get more for the home than if he or she dropped the asking price by $10-, $20- or even $30,000.
4. Many condos and houses across the country belong to home owners associations that require annual dues. Paying the first year?s fees could be a big incentive to a buyer nearing the limit of his or her liquid assets.
5. Offer to pay off a buyer's bills. According to Realty Times, some loan programs allow sellers to pay off the credit card debt or auto loans of the buyer which will help him or her qualify for a better mortgage and prevent the need to buy a smaller, less expensive house.

Don't Worry. Properly priced homes that do stand out from the competition are selling. Ask your sales associate how long a properly priced home should remain on the market. The consumer sometimes believes a market's home inventory is how long it will take for a home to sell. This is likely not the case. Time on market is a different statistic that is usually more important to the seller.

FIND OUT WHAT YOUR HOME IS WORTH

& FIND YOUR NEXT NORTHERN COLORADO DREAM HOME;

www.FortCollinsDreamHome.com

www.LovelandDreamHome.com

www.GreeleyDreamHome.com

Or call your Northern Colorado Realtor to get your Free Comparative Market Anaylsis; Carrie Holmes 970-988-0242