HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

MORTGAGE RATES GOING UP – HOME PRICES GOING UP – BETTER BUY NOW !!!

Markets react quickly to economic events. Several recent events have demonstrated just how quickly these reactions can take place.

The Health Care Reform Bill which was signed last week, combined with already bloated federal spending, has already triggered an adjustment in mortgage rates. On Thursday, 30 year mortgage money rates increased by ¼% and on Friday, the rate went up another 1/8%, as the mortgage market adjusted for “a higher cost of capital”.

Another factor that will influence mortgage rates is the elimination of Mortgage Backed Securities (MBS). These securities will no longer be available after March 31, 2010. This will eliminate a major source of funding for home mortgages. Obviously, this will raise interest rates even further.

This upward trend in rates will be accelerated by the inflation that is kicking in daily. Experts predict that we will really begin to feel the price rise by the third quarter of this year.

The bottom line is that, if you buy a home today, either as a personal residence, or as an investment property, you should see a rise in the value of you investment before the end of the year. Your mortgage rate today will be lower than you will be able to obtain later this year. Your equity and the value of your investment will both go up by the end of 2010. Call us today, to explore these factors and to see how we might help you enhance your financial situation.  

NEWS FLASH – TECHNOLOGY AND THE real estate INDUSTRY JUST GOT MARRIED

The latest example of how technology is changing every aspect of our personal and professional lives is the announcement from the National Association of Realtors that they will soon introduce Realtors Property Resource, a web-based property data project which will give Realtors detailed information on more than 140 million properties across the country. This program cost NAR over $25 million to develop and will revolutionize the way real estate is sold in the future. We were excited to meet with one of the creators of this innovative, aggressive program at the recent Leading Real Estate Companies of the World national conference in Las Vegas.

RPR will enable Realtors to share with their clients such things as expandable map views, neighborhood walk-through views, value comparisons (for both listed and non-listed homes), a property’s sales, listing, tax and value history and will even adjust projected values based on improvements or planned improvements, and the improvement costs involved are based upon local, not national cost estimates.

Finally, RPR creates a multi-page, comprehensive, professional report on a property, which can be sent to the prospective Buyer and/or Seller as a PDF, or, as an email.

So, what does this wonderful new tool mean to Realtors? First of all, it will enable every agent in the US to offer their clients more information than has ever been available in the past. But, more importantly, because all agents will now be able to offer the same information to their clients, RPR will highlight the fact that the difference between mediocre agents and outstanding agents will be measured by their ability to negotiate the best deal for their clients. The bottom line for Buyers and Sellers: Look for the best negotiator you can find.

Realtors Property Report is presently being beta tested in selected areas, but it is not too late for Realtor input. Jeff Young, Senior Vice President of operations states that there are still tremendous opportunities for input from NAR stakeholders, including members. Nationwide release of the program is scheduled for  this Fall. To see a 28 minute demo video of this exciting property data project, visit http://blog.narrpr.com.

QUESTION:    WHAT DO HUNDAI, FORD, GM, JET BLUE, CARNIVAL CRUISE LINE AND SEARS HAVE IN COMMON WITH SALZMAN real estate SERVICES, LTD ?

ANSWER:   They all offer Job Loss Protection programs. The reason they offer these powerful programs is because many potential Buyers find this added level of comfort motivating. And it’s no wonder. As Pete Flint of Trulia.com points out, “Today, the number one cause of foreclosure is unemployment and there are now fifteen million Americans out of work”. The result of this unfortunate fact is that, as CNBC reports, “53% of potential Buyers are skittish, thus not currently willing to enter the marketplace”.

As we have explained in the past, our Job Loss Protection Program is a part of the HELP Program, which operates as a non-profit organization helping Americans avoid foreclosure should they fall victim to the current shifting job market. When foreclosure happens, the Buyers lose not only their homes, but their hard-earned equity, as well. Helping Buyers purchase with an added level of protection helps not only the Buyer, but also helps their surrounding community. We have chosen to become certified in this program and to offer it to our Buyers to demonstrate our commitment to looking out for our clients’ and our communities’ best interests.

The Job Loss Protection Program is available in all 50 states and will pay up to $2000 per month of the Buyer’s mortgage payment, for six months, should the owner lose his/her job. The cost of the program is only $500, paid by the Seller. And, considering the marketing advantage that the program offers to the Seller and the peace of mind it offers to the Buyer, that’s money-well-spent.

Some people have asked us if this program doesn’t introduce a negative in a market where we are trying to instill confidence. Our response is to ask whether that same concern should apply to offering Home Warranties, or Title Insurance. Imagine the Buyer who is faced with foreclosure because of a loss of employment, who discovers that, even though they qualified for the program, they were not even offered the opportunity to enroll. For us not to offer this program to prospective Buyers because we were worried that it might be perceived as a negative would be like refusing to talk about the elephant in the living room. Just because we don’t address it doesn’t mean that it is not on the minds of every Buyer in America who has access to newspapers, TV or the Internet.

And, we should point out that, in this competitive market, the Job Loss Protection Program offers Sellers a wonderful sales advantage over the other Sellers in their neighborhoods.

If you would like to learn more about the Job Loss Protection Program, please give us a call.

SELLERS ……HOW DO YOU COMPETE WITH FORECLOSURES??

If you’re selling your home in today’s market, you’re probably facing the toughest competition anywhere: FORECLOSED PROPERTIES.

How can you compete against a bank that’s desperate to sell their foreclosures? Here’s how (Thanks to relocation.com)

  1. Know your enemy.  Because banks are so eager to sell off their foreclosures, they are creating a market price that is artificially low. Appraisers don’t care if the house next to yours was sold as a foreclosure…”a comp is a comp”. The result is that, when “comparables” are listed, the list includes these foreclosures and they drag down the projected price of your home. The best advice is, if possible, wait until your neighboring foreclosure homes are sold and off the market, or, resign yourself to lowering your price to a level that can compete against these turkeys. 
  2. Keep it neat. Be sure your home is always presentable. Foreclosures are usually neglected and do not show very well.  
  3. Prepare your home for showing. Consider hiring a staging company to prepare your home for showing. They will probably recommend such things as repainting rooms in neutral colors, removing family pictures, etc.  The bank foreclosures in your neighborhood will probably look like what somebody else’s family thought was “cool”.
  4. Get real about pricing. Select a real estate agent who knows the market and who can advise you about realistic pricing and who can negotiate on your behalf. Be flexible and willing to consider all offers. Don’t take low offers personally. Yes, it’s “your home”, but, to a prospective Buyer, it’s just another house.

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

An angel appears at a Congressman’s weekly staff meeting and tells the Congressman that in return for his unselfish and exemplary behavior, God will reward him with his choice of infinite wealth, wisdom, or good looks. Without hesitation, the Congressman selects infinite wisdom. "Done!" says the angel, and disappears in a cloud of smoke and a bolt of lightning.

Now, the entire staff turns toward the congressman, who sits surrounded by a faint halo of light. One of his staff whispers, "Now that you have this great gift, what wise thing do you have to tell us?"

The Congressman sighs and says, "I should have taken the money."

QUOTE OF THE WEEK

W. C. Fields said this:

“You can fool some of the people, all of the time….and you can fool all of the people, some of the time…….But, if you play your cards right, that’s good enough”

FEATURED LISTING Clifton