Sept. 20, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

ATTENTION BUYERS ! YOU DON'T HAVE TO BUY A FORECLOSURE TO GET FORECLOSURE PRICES

We frequently receive calls from prospective buyers and investors who are interested in purchasing foreclosed properties. They have heard that there are some really good deals available on foreclosed properties and they want to take advantage of the current low prices. Are they on the right track??

Well, the truth is that both home prices and mortgage rates are very low right now and we encourage everyone to buy now, before rates go any higher, but, we also point out two often-overlooked facts. First, if you want to move into your new home in the near future, foreclosures might not be the answer. The unfortunate fact is that lenders have a habit of unnecessarily delaying acceptance of offers for these properties, resulting in delays of as much as six months. Obviously, if you are sitting there with a moving van full of furniture, such a delay is unacceptable.

Why do banks take months to accept offers for foreclosures? Who knows? Perhaps it's because the clerks handling such offers are afraid to make decisions. Perhaps lenders are fearful of flooding the market with foreclosed properties and thus forcing prices even lower. Perhaps it's because banks feel prices will go back up in the near future and they will get a better offer next month (This is really wishful thinking. Most experts agree that home price recovery will take two or three years). Whatever the reason for banks' slow response time, it's a national problem and many prospective buyers have become discouraged and cancelled their offers, as a result.

Is there any way around this slow-response time from lenders? It depends upon the lender. A couple of months ago, we presented a lender with an offer, supported by a recent appraisal, but received no response. Finally, last week, we intimated to the slow-moving clerk who was handling the property that we were going to buy stock in her corporation and, at the upcoming stockholders' meeting, we intended to bring her lack of response to the attention of the officers of the corporation. .Within 24 hours, we had an acceptance of our client's offer. Obviously, this solution won't work with every lender .(and we sure don't want to end up with stock in a bunch of unresponsive banks).

The second fact that prospective buyers often overlook is that, as a result of lenders flooding the market with low-priced foreclosures, prices on all properties on the market have been dragged down in order to stay competitive with foreclosure prices. Thus, buyers can get the benefit of foreclosure prices, even for properties which are not foreclosures.

Bottom line: Prices for available homes are very low, but home-mortgage rates are starting to rise and inflation is looming . Now is the time to buy. Call us.   

 

CALLING ALL DOCTORS ! YOUR PRESCRIPTION FOR A HOME LOAN IS READY

We recently were approached by a lender who will provide very liberal terms on home loans for professionals (Doctors, Lawyers, CPAs, Some business owners, etc.). This lender's market research tells them that professionals earn more income, have good payment history, know when to capitalize on the real estate and investment market and can even provide deposits. In fact, because of the stability of their target market, this lender does not even consider outstanding student loans in the qualification process.

One of our past clients, a doctor, contacted us last week about "trading-up" for a larger home to better accommodate his growing family. Based upon present market conditions, he is now considering turning his present home into a rental property and taking out a new loan on a larger house (at an interest rate that will be lower than he is paying for his present home). He was very excited to hear about this lender's "professional" loan. As an example of the type of loan this lender is willing to make to making to professionals, consider these terms:

Loan amount - $600,000 - $700,000, 30-year, fixed-rate of 5.25%, no money down, no origination fee, no discount points, additional .25% off interest rate when borrower takes out one of the lender's  credit cards,

If you fall into this category of borrowers, give us a call. We'll write you a prescription.

 

FORBES MAGAZINE SAYS COLORADO SPRINGS MARKET LOOKS GOOOOD

Forbes Magazine turned to real estate research firm Local Market Monitor to figure out which U.S. markets have the greatest likelihood of home-price appreciation. Because we offer a mix of jobs weighted toward growth industries, Colorado Springs came in as the 6th-best city for investors in the U.S. market. (Denver-Aurora-Broomfield came in at # 8).

Two years ago, Forbes ranked Colorado Springs as #7 in its Top 10 list of cities where home prices were expected to increase. In 2009, Colorado Springs ranked 10th on Forbes' Best Places for Business and Careers list. And, this year, Forbes ranked the Springs as the nation's sixth-most wired city for broadband connections.

How do you like them apples??

 

SOUTHERN COLORADO ECONOMIC FORUM COMING SOON

On a related topic, if you've ever wondered what our local economic future looks like, don't miss attending the Southern Colorado Economic Forum on October 1, 2010. Make your reservations now, for this "sell-out" event. 

 

LATEST STATISTICS

To see the latest sales and Listing statistics for the Pikes Peak area, click here

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