Real Estate Information

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

DOES THE HOMEBUYERS’ TAX CREDIT ‘COST’ THE GOVERNMENT TOO MUCH ???

As we approach the end of the federal tax credit for Homebuyers (April 30 will be the deadline for signing a contract under this program), the explanation given by the government for not extending the program is, “Continuing this program would cost us too much money.”

This glib explanation sounds reasonable to people who don’t understand how the free market economy works. i.e. people who don’t understand who pays taxes and where they get the money to pay them. Let’s look at some of the various types of benefits to the government that are generated by the sale of a home:

1.  Federal income taxes
2. State income taxes
3. Capital gains taxes
4. Local Sales taxes
5. And, last, but certainly not least, JOBS, JOBS, JOBS

The following is a partial list of individuals and companies that typically receive income (and thus become liable for additional tax revenues) whenever someone buys a home:

• The Seller of the home
• The companies that the Seller hires to prepare the home for resale. E.g. the decorator, the stager, the remodeler, the landscaper, etc.
• The companies from whom the people named above purchase their supplies
• The Moving company
• The appliance stores
• The providers of services that the Buyer will hire. E.g. internet, TV, alarm services, etc.
• The Mortgage broker
• The Lender
• The Accountant
• The Realtor.
• Etc., etc., etc.

In other words, because this program produces more tax revenues to local, state and federal governments than it ‘costs’ , the Homebuyers’ tax-credit program should not be looked at as a “loss” to the government, rather, it should be viewed as a method for ‘priming the pump’  for additional tax revenues for all levels of government.

If this way of evaluating the benefits of the Homebuyers’ tax credit seems revolutionary, consider that the state of California has now passed similar tax-credit legislation that offers $10,000 to Homebuyers. Their legislature has recognized that the best way to increase tax revenues is to offer incentives to taxpayers. (Golly. It almost seems like Reagan was right. ..The best way to increase income to the government is to lower taxes. Whooda thunk it ?!!! )

Colorado, take note.   

HERE’S ANOTHER EXAMPLE OF HOW GOVERNMENT CAN STIMULATE THE ECONOMY

During the first week of the Governor’s Energy Office’s new rebate program, more than 22,000 Coloradans signed up to receive energy rebates. The office’s phone lines were overwhelmed on April 19, when the program launched and there are now waiting lists for rebates for dishwashers, refrigerators and tankless water heaters.

The rebates are available for energy-efficient appliances and energy-efficient improvements, such as insulation. Here’s a sample of the available rebates:

• Clothes washer              $75
• Furnaces                       $500
• Hot Water heaters          $200-$300
• Insulation and sealing    Up to $400
• Duct sealing                  Up to $75
• Energy audit                 Up to $100

We encourage our readers to take advantage of these rebates for several reasons. First of all, the result of these home improvements will be that your utilities bills will go down. Secondly, the energy-efficient upgrades to your home will improve the eventual marketability of your home. Prospective Buyers are often persuaded to buy because of low utility bills or a shiny new refrigerator. Keep in mind, however, that, if you are interested in applying for these rebates, be sure you register with the program before you make the purchase. They are not retroactive.

Again, the benefits of this type of program to the state of Colorado in terms of increased tax revenues and jobs are similar to the benefits from the Homebuyers’ tax credit program discussed above. This program was funded by $18 million from the American Recovery and Reinvestment Act

Let’s hope that our legislators are learning the lesson that when they let us have more of our money, their revenues go up.

THE COLORADO SPRINGS ECONOMY, LIKE THE ANNUAL HOT-AIR BALLOON FESTIVAL, IS SINGING, “UP, UP AND AWAY”

On Sunday, April 25, 2010, the Gazette reported the following encouraging data about our local economy:

• Hotel occupancy moved up to 51.7%
• Initial unemployment claims were down 43.3%
• Single-family home permits were up 111.3%
• Taxable retail sales were up 3.4%
• Foreclosure filings were down by 33%.

It’s good news like this that keeps our spirits up as we dig ourselves out from under our annual April blizzards. But, look at it this way. At least the chiropractors are getting rich.

NEW HIRING INCENTIVE SIGNED INTO LAW

Under the Hiring Incentives to Restore Employment Act of 2010 which was signed into law on March 17, 2010, employers that hire new workers after February 3, 2010, and any time during the rest of 2010, will be exempted from the employer’s 6.2% share of FICA for those workers, provided the workers were unemployed for the 60 days before starting work or worked less that full time (40 hours per week) for someone else during that period.

The IRS will be providing necessary forms and instructions within the next few weeks but, in the meantime, employers should obtain from each new employee a statement indicating that he/she meets the requirements of the Act.  

To learn more about this new law, visit the Government Relations section of the Worldwide ERC® website.

YOU ONLY HAVE UNTIL APRIL 30^TH TO SIGN YOUR CONTRACT TO BUY

If you want to take advantage of the Federal tax Homebuyer’s tax credit, you must be under contract by April 30, 2010. Give us a call today, or you will miss out on this terrific opportunity to put money in your pocket !!!

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

The difference between the short and long income tax forms is simple. If you use the short form, the government gets your money. If you use the long form, your accountant gets your money.

A fine is a tax for doing something wrong.
A tax is a fine for doing something right.

A couple of weeks after hearing a sermon on Psalms 51:2-4 [knowing my own hidden secrets] and Psalm 52:3-4 [lies and deceit], a man wrote the following letter to the IRS:

'I have been unable to sleep, knowing that I have cheated on my income tax. I understated my taxable income, and have enclosed a check for $150.
If I still can't sleep, I will send the rest.'

Making sausage and making tax laws have much in common. They both involve bloody processes, they both require that an innocent animal be slaughtered, and those of a squeamish disposition should not get involved in the making of either. Anonymous

The avoidance of taxes is the only intellectual pursuit that carries any reward. John Maynard Keynes

My problem lies in reconciling my gross habits with my net income.  Errol Flynn

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

IT’S MY ANNIVERSARY, SO PLEASE PARDON MY NOSTALGIA

Last week marked my 38^th year of selling real estate in Colorado Springs, and I couldn’t help but think back on what our local market looked like in those prehistoric times.

In 1972, I started selling model homes for American Builders, the developers of Southborough and Eastborough. The price range for these homes was $18,000-$19,000. (We also had resale homes for sale at slightly lower prices for those people who could not afford the new models). Mortgage interest rates for a 30 year, fixed-rate mortgage were running at 8%. (ARMs didn’t even exist yet).

At our first sales meeting in 1973, we were all dismayed to hear that our available inventory of $18,000-$19,000 homes was sold out and the builder was announcing a price increase. From that point on, $20,000 would be our minimum price for homes in the development. I remember thinking, “Where in the world will we find people who can afford to spend $20,000 for a home?”….

Flash forward to the present … Yesterday, I was driving on Academy Boulevard and spotted one  of the first homes I sold, back in 1972. The home recently sold for $145,000. What a dramatic example of the benefits of investing in real estate. That home, which the original owner bought for a $500-$1000 down payment, has shown a 600% increase in value since 1972. That’s an average annual rate of return (or appreciation) of approximately 16%. That doesn’t even take into consideration such other benefits as tax deductions, etc.

But the dramatic growth in the value of that house doesn’t even tell the whole story. Let’s look at what “leverage” does for a homeowner. If the original buyer of that home put $1000 down and lived in the home for 7 years (That’s the average length of homeownership, according to NAR statistics), the selling price (using the 16% appreciation figure) would have been approximately $42,210, or 110.5% over the original purchase price. Or, to look at it another way, in seven years, the home realized a gain of just over 22 times the original investment of a $500- $1000 down payment. Eat your heart out, Warren Buffett !!

It’s also obvious that, even if you do not plan to move out of your family home, you should seriously consider purchasing rental property. Our present economic crisis has dramatically expanded the pool of high-quality, potential renters. Combine that with the fact that interest rates are as low as they are going to get and the result is that Investors may never see such great investment opportunities again.   

The bottom line is, now is the time for you to do yourself a favor. Take advantage of today’s low interest rates of 5 – 5.25% for a 30 year fixed-rate loan and make the best investment you will ever make. Call us, right now, and let us help you buy your new home.

DON’T BE LEFT ON THE DOCK, WATCHING THE BOAT LEAVE WITHOUT YOU !!!

The federal tax credit for Homebuyers is just about to expire. If you wait until May 1, 2010 to sign a contract to buy your new home, you will have missed out on the Federal Tax Credit for Homebuyers. That will mean that, if you are a potential first-time Homebuyer, you just threw away $8000. (or, $6500, if this would be a trade-up home). Call us today to avoid losing out on this free gift from your Uncle Sam. They are starting to cast off the lines and the ship’s propellers are turning, but there’s still time to get on board. Call us today !!!

IF YOU LIVE IN COLORADO SPRINGS, YOU’RE VERY FORTUNATE !!

At the April Economic Development Luncheon, the speaker was Dr. Tom Duening, the new El Pomar Chair for Business and Entrepreneurship at the College of Business at UCCS. He came here last August from Arizona State University, my Alma Mater. As a relative newcomer to the region, he is very enthusiastic about Colorado Springs and very correctly describes our city as a place “where people want to create their own community and life. People can find their own pathway here. The honesty, transparency and creativity of the business community of Colorado Springs far exceeds that of the larger cities I’ve lived in for the past 25 years”.

In support of this positive view of our city, the April 18^th issue of the Gazette featured an open letter to the citizens of Colorado Springs from the Greater Colorado Springs Chamber of Commerce, the City of Colorado Springs, the Colorado Springs Regional Economic Development Corporation, El Paso County and the Colorado Springs Convention and Visitors Bureau.  The message of this open letter was to point out that “We are a community to be envied”.

The letter goes on to list the various areas in which Colorado Springs stands out. To list a few of their observations:

We are a city of accountability: We have adapted to the fiscal challenges which face all cities across the nation and we are solving our problems in a cooperative manner.

We are a city ready for the future: As Dr. Duening points out, “We are the leading edge of the Lifestyle Belt – and the Gateway to new expansion into the West”.

Our assets and resources are unmatched in communities our size: The Brookings Institute asserts that Colorado’s Front Range is uniquely empowered with all the essential ingredients for major economic growth and identifies Colorado Springs as a leading factor.

We are a city of scholarship: Our four universities, complimented by a cast of high-caliber educational institutions for adult learners, provide a complete suite of educational opportunities for the regions labor force.

We are a city of welcome and innovation: For example, we host the National Space Symposium, the largest symposium in the space industry, with over 9000 participants. This is just one of the meetings, seminars and conventions hosted by our local, world-famous local Tourism industry.

We are a city safeguarding the nation: The continued and growing presence of our military installations and commands, defense and national security enterprises has insulated our economy and, in addition, our almost 2000 non-profit organizations work to help and serve those in need in our community, across the nation and around the world.

We are a city of encouragement: We are a community of excellence for amateur sports and proud home to the United States Olympic Committee and Training Center. We have been rated the fittest city in the US and are home to a vibrant arts community. We are truly the “America the Beautiful” city.

We are a city working together: For example, The Southern Colorado Business Partnership has been formed to give businesses in three counties a voice at the state level. Twelve organizations from Castle Rock to Pueblo are working together on behalf of the region. Operation 60ThirtyFive outlines our region’s economic strategic plan and Dream City 2020 is a citizen-led effort to craft a vision for our city’s future, and work to turn the Dream into reality.

We are a city to be envied: We are proud that we own our own destiny and we are working diligently to make Colorado Springs a world-class community.

The open letter goes on to list some of the most recent recognitions that our city has received at the national level:

Best Place to Live – 2009 Outside, Online

Fittest City – 2010 (#4) Gallup

Best Places for Business and Careers – 2010 (#12) Forbes.com

National Winner “Cultural Diversity” – 2010 National Black Caucus of Local Elected Officials

Top 60 U.S. Hotspots for Young, Talented Workers - 2009 (#3)  Next Cities

Mid-Sized U.S. City Art Destination – 2009 (#25) American Style

Most Sports Obsessed Town in America – 2008 (#3) Men’s Health Magazine

America’s Best Midsize Metropolitan Areas – 2010 (#9) MSNBC

Best City to Raise an Outdoor Kid – 2009 (#7) Boy’s Life

America’s Best Bang For The Buck Cities – 2009 (#9) Forbes.com

Cities Ranked and Rated – 2007 (#4) Frommer’s Travel Guide

Fittest City in America – 2009 (#2) Men’s Fitness Magazine

Best City to Find a Fresh Start – 2009 (#8) Business Week.com

Most Wired City – 2010 (#6) Forbes.com

Friendliest Bike City – 2010 (#18) Bicycling Magazine

Best Cities for a Housing Recovery – 2009 (#3) Forbes.com

Cleanest Air – 2009 (#14) American Lung Association

Best Place to be a Woman – 2009 (#10) Women’s Health Magazine

Best City to Live in the U.S. -2008 (#3) MSNBC

UCCS – Best Regional Public Universities – 2010 (#6) U.S. News and World Report

Best Place to Raise a Family- 2008 (#9) BestLife Magazine

Best Cities to Work and Play – 2008 (#5) Kiplinger’s Personal Finance

Smartest Metro Areas – 2008 (#10) Bizjournals

National Undergraduate Programs – 2009 (#6) U.S. News and World Report

Come, join us.

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

A plane was taking off from Kennedy Airport. After it reached a comfortable cruising altitude, the captain made an announcement over the intercom, "Ladies and gentlemen, this is your captain speaking. Welcome to Flight Number 293, non-stop from New York to Los Angeles. The weather ahead is good and, therefore, we should have a smooth and uneventful flight. Now sit back and relax - OH, MY G-D!"

Silence followed, and after a few minutes the captain came back on the intercom and said, "Ladies and Gentlemen, I am so sorry if I scared you earlier; but, while I was talking, the flight attendant brought me a cup of coffee and spilled the hot coffee in my lap. You should see the front of my pants!"

In unison, all of the passengers shouted back, “You should see ours!" 

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

UP, UP AND AWAY !!!  LOCAL SALES ARE LOOKING GOOD

Our local Residential real estate market experienced another solid gain through March 31, 2010. The 723 residential sales in March, 2010, represent an increase of 27.7% over March, 2009 and 26.4% over February, 2010. Our average sales price is now $215,625, an increase of 4% from February, 2010. Our median sales price is now $189,900, an increase of 4.3% from February, 2010. These increases represent 9 consecutive monthly increases in local residential sales. How many other communities can say that??

In addition to the rise in home sales, another significant indicator of our local economy’s strength is the income derived from sales taxes. Sales tax revenues were up 3.38% from March, 2009. This was the fifth consecutive month of increases and demonstrates our citizens’ confidence in our economy.

ONE MAN’S TRASH IS ANOTHER MAN’S TREASURE – OR – TO PUT IT ANOTHER WAY, ONE MAN’S FORECLOSURE IS ANOTHER MAN’S OPPORTUNITY

Even if you already own your home and don’t intend to sell, the real estate market has some opportunities that you should explore. First, let’s quote from some recent headlines: “Home Resales Continue to Streak” (The Gazette). “Check the Real Estate: It Is Time to Dive In” (The Wall Street Journal). “Homebuyers Scramble as Rates Jump” (Associated Press).

Are these headlines accurate? Well, all we can say is that we have negotiated more contracts in the past four weeks than we have in the last six months. Obviously, home prices are trending upward and people are jumping into the market, before they get priced out of it.

In addition to the rise in basic home prices, mortgage rates are also rising. On April 9, the Wall Street Journal reported the published mortgage rate from Freddie Mac was 5.21% and the Associated Press reported, “more than 5.3% in the past week”. These rates represent an 8 month high for 30 year, fixed-mortgages. This rise in rates can be traced to several factors e.g. An improving economy, the end of the government’s push to make mortgages cheaper by means of mortgage-backed securities, the beginnings of inflation, etc.

What do these trends mean to prospective homebuyers? Well, for every 1% rise in rates,300,000 to 400,000 “would-be-buyers” are priced out of the market. The rule of thumb is that, with every 1 percentage point increase in rates, a buyer’s purchasing power is reduced by about 10%. This means that the buyer who can qualify for a $300,000 home today, will only qualify for a $268,500 home when interest rates go from 5% to 6%.

Is this news bad for everyone? Well, for prospective buyers, it could represent bad news. It means they might have to settle for a less expensive home, or, if they are near the bottom of the ladder, they might have to defer purchasing in favor of renting. For investors, however, the current upward trend in prices and rates means that their pool of prospective renters will increase. To put it another way, for every buyer who is lost, another renter enters the market.

If you would like to explore the benefits of owning rental property, please give us a call. The time is right to consider this opportunity.

NEGOTIATING MEANS – “EVERYBODY WINS”

Since we announced our certification by CNE as a Certified Negotiation Expert, we have been asked by several of our clients and fellow Realtors why we are so strongly emphasizing the Realtor’s role as a negotiator in today’s real estate market. The answer is simple. When we consider that all Realtors, as well as their clients, now have access to all of the same internet sources of information about properties on the market, it’s obvious that the role of the Realtor must change.

In today’s market, the Realtor cannot remain merely the conveyor of data from the Buyer to the Seller, but must become, rather, the facilitator for resolving differences between the Buyer and the Seller. If Realtors cannot or will not serve as that facilitator, they really have nothing of value to contribute to the process. I was reminded of that fact just last week, when another Realtor submitted an offer on one of our listings.

Our client, the Seller, had ‘dug their heels in’ with an “absolute minimum” selling price of $319,000. The prospective Buyer had ‘dug their heels in’ with an offer of $315,000. At this point, the only options were to call off the deal, or, to negotiate. i.e. to make winners of both the Buyer and the Seller.

So, after reviewing the current market data with the Buyer’s agent, as a facilitator, we took the opportunity to point out several significant factors:

• The market has taken a turn for the better and, based upon the most recent sales data from all national and local sources, the experts say that it does not appear that prices will go down any further. In fact, prices have now started to rise
• Last month, properties in the neighborhood involved sold for 99.2% of their listed price, indicating that the Seller’s asking price was appropriate and reasonable.
• The difference between the two parties was only $4000. That translates into an increase in the monthly mortgage payment of only $22.08, or $1324 over the five-year period that the Buyer will probably own the house.
• When the income tax deduction on the loan interest is factored in, the actual difference between offer and demand is closer to $1000 over the five-year ownership period.
• The federal tax credit expires at the end of this month
• Through our preferred lenders, we had access to a better interest rate for the mortgage than the Buyer did. (That, alone, should have sealed the deal)

Considering all of these factors, the Buyer chose to sign the contract and both parties left the table happy. That’s the goal of negotiation and demonstrates the new role of the Realtor.

Today’s Realtor must know and understand the latest statistics and must be familiar with the local market. He/she must have developed good local resources for funding and services and must be willing to serve as a negotiator and facilitator. That way, “Everybody Wins”.

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

We don’t know why the following joke seems, somehow, timely.

The photographer for a national magazine was assigned to get photos of an enormous forest fire. Smoke at the scene was too thick to get any good shots, so he frantically called his office to ask them to hire a plane.

"It will be waiting for you at the airport" his editor assured him. 

As soon as he got to the small, rural airport, sure enough, a plane was warming up near the runway. He jumped in with his equipment and yelled, "Let's go! Let's go!" The pilot swung the plane into the wind and soon they were in the air.

"Fly over the north side of the fire," said the photographer, "and make three or four low level passes." 

"Why?" asked the pilot.

"Because I'm going to take pictures! I'm a photographer, and photographers take pictures!"  the photographer replied impatiently.

After a long pause the pilot said, "You mean you're not the instructor?" 

AND BY THE WAY

Aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it deosn’t mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt tihng is taht the frist and lsat ltteer be at the rghit pclae. The rset can be a total mses and you can sitll raed it wouthit porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Pettry amzanig huh? 

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

LOCAL real estate INDICATORS LOOK GOOD

Last week, Summit Economics, LLC, published their Monthly Economic Indicators Report for the Colorado Springs Metro area. The report contains data through February, 2010, and contains encouraging news for the local real estate market.

In a comparison between February 2010 and February 2009, the numbers show:

             Initial claims for unemployment                            -16.4%

            Single-family home permits                                +213.2%

            Taxable retail sales                                             +4.7%

            Foreclosure filings                                             -16.4%

It’s obvious that our local residents are loosening up their purse strings and are starting to spend, again.

(Although our local economy is rebounding, the national picture is not universally good. We regularly speak with Realtors from around the country and many of them still do not see a light at the end of the tunnel. Their comments, combined with data from print and internet sources show a somewhat-fragile real estate market in many parts of the country.)

Another indicator that the real estate slump may be ending comes from the Case-Shiller Index of the 20 Major U.S.Metropolitan Areas. This organization normally tends to see the glass as half-empty, but their latest report shows increases for the last eight months and indicates that “the worst of the declines are behind us and we can at least move forward from here”.

On a personal note, during the past two weeks, we have received more inquiries, made more appointments, written more contracts and scheduled more closings than we did during all of the rest of 2010. It felt great !!!

Do all of these good indicators indicate a permanent upward swing in the economy? We hope so, but many of our Realtor friends are concerned that the recent increase in business is only a result of the fact that the Federal Tax Credit for Homebuyers will no longer be available for contracts written after this month. They fear that, when the program is finished, the slow times will resume.  It’s true that many previously-undecided Buyers are rushing to take advantage of this “Free Money”, before it is no longer available, but we are all hoping that the current flurry of business is just the beginning of an upward trend, rather than merely the end of a government stimulus.

Keep in mind, you must be under contract before April 30, in order to qualify for the tax credit of either $8000 or $6500. If you have any questions about this “Free Money”, please give us a call immediately, so we can get you started before the deadline.

Remember the time-honored formula, “Knowledge minus Action = Regret”

WHY ARE THERE MORE FORECLOSURES IN THE SUBURBS THAN IN THE CITIES??

Nick Turner, Managing Director at the Rockefeller Foundation, thinks the answer lies in the cost of transportation. The Rockefeller Foundation funds the Center for Neighborhood Technology (CNT) and that organization has just released an analysis of “Affordable Housing”. The analysis examined 337 metro areas across the country and encompassed 161,000 neighborhoods and 80% of the US population. It includes some startling facts.

Traditionally, the rule of thumb to determine whether a house is “affordable” has been that housing costs should represent 30% or less of the household income. Most Buyers use this rule-of-thumb in making their decision to buy. Using this measure, seven out of ten US communities have been considered “affordable” for the typical household. The CNT study shows, however, that, when transportation costs are added to the mix, the number of “affordable” communities declines from “seven out of ten” to “four out of ten”. This means that over 48,000 neighborhoods that have traditionally been classified as “affordable” are, in reality, unaffordable for the typical household.

The CNT study points out that transportation costs are the second largest household expense and can range from 12% of household income in efficient neighborhoods to 32% in locations where driving long distances is the only way to reach essential services.

The H+T Index gives a reliable estimate of each neighborhood’s average household transportation costs, a strong move toward a ‘no surprises, no sticker shock’ home buying or renting experience.

To see the complete study and check out your city and neighborhood, visit www.cnt.org

NEW EPA RULES RELATING TO LEAD BASED PAINT

A new rule from the Environmental Protection Administration addresses Renovation, Repair and Painting (RRP) activities in single and multi-family housing built before 1978. It requires that contractors, renovators, etc. be trained and certified in lead-safe work practices.

Property managers, if they use outside contractors to do RRP work, must use contractors who are trained and certified on the new rules. If managers use their own in-house workers to do RPR work, they must require that those workers be certified in lead-safe work practices and must notify tenants.

Realtors should make sure that any contractors they work with on a regular basis, or recommend to clients, must be trained and certified on the new rules, or the Realtor could be held liable.

Do-it-yourselfers will still be able to RRP work on their own without getting fined.

The new rules go into effect April 22, 2010.

QUIZ FOR THE DAY

To what conclusion do the following facts lead you?: 

• The Federal Reserve is going to stop buying mortgage-backed securities from Fannie Mae and Freddie Mac
• Shortages of building supplies such as lumber and copper are going to fuel Inflation
• Increasing bank regulations will soon raise the costs of borrowing money
• If I wait until after April 30 to sign a contract on my new home, I will lose the federal tax credit

Possible Conclusions (Pick one): 

1. I better wait until next year to buy my new home
2. I better buy my new home right now, or, kick myself for the next thirty years

If you picked #2, Call me ASAP, so we can discuss how to get you the best deal possible.  

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

Explanation of Microsoft computer messages

It says: "Press Any Key"
It means: "Press any key you like but I'm not moving."

It says: "Press A Key"
(This one's a programmers joke. Nothing happens unless you press the "A" key.)

It says: "Fatal Error. Please contact technical support quoting error
no. 1A4-2546512430E" It means: "... where you will be kept on hold for 10 minutes, only to be told that it's a hardware problem."

It says: "Installing program to C:\...."
It means: "... And I'll also be writing a few files into c:\windows and c:\windows\system where you'll NEVER find them."

It says: "Please insert disk 11"
It means: "Because I know darn well there are only 10 disks."

It says: "Not enough memory"
It means: "I don't CARE if you've got 64MB of RAM, I want to sell you an upgraded computer."

It says: "Cannot read from drive D:...."
It means: "... However, if you put the CD in correct side up..."

It says: "Please Wait...."
It means: "... Indefinitely."

It says: "Directory does not exist...."
It means: ".... any more. Whoops."

It says: "The application caused an error. Choose Ignore or Close."
It means: ".... Makes no difference to me, you're still not getting your work back."

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

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

THE WALL STREET JOURNAL REPORTS “GOOD NEWS” – HOUSING STARTS ARE DOWN

The Commerce Department reports that the pace of new-home construction fell roughly 5% in February to 563,000 units at a seasonally adjusted rate. Strangely enough, the Wall Street Journal reports this in an upbeat manner, since the fact that housing starts are down is good news for anyone concerned about the bloated housing market.

The pace of home building already has fallen sharply, to a low of 488,000 units last April from a peak of nearly 2.3 million in mid-2006. That has helped cut excess inventory of new homes, which has fallen to its lowest level since 1971.

Despite this reduction in new-starts, experts say more thinning is needed. While new homes for sale shrank to 234,000 in January, this is dwarfed by the 3.25 million existing homes also on the market. Added to this in an additional 5 million properties estimated to be in the late stages of delinquency or the early stages of foreclosure. Little wonder that, according to their own trade association, builders’ confidence sank to a level of 15, from a level of 17 the previous month. Their confidence has been below the 50 level since April 2006.

There are a variety of government programs that have been introduced to keep all of the foreclosed properties from hitting the market all at once. Government loan-modification and foreclosure-prevention programs as well as bank-approved short sales should help clear the market gradually.

It is far too early to say that housing is ready to rebound and, until that happens, it looks like it would be better for everyone if builders aren’t feeding the glut. Sorry, fellas ! 

INTEREST RATES VS. INFLATION …IT’S A BALANCING ACT

The Federal Reserve, must strike a balance between stimulating the economy and encouraging inflation. If the Fed raises rates too soon or too aggressively, it could undermine the recovery. If it waits too long, it could fuel inflation.

Last Tuesday, the Federal Reserve announced that it would not raise interest rates in the near future, which probably means several more months. They will also end, as planned, one of its main supports for the US economy – purchases of $1.25 trillion of mortgage-backed securities – allowing a nascent economic recovery to stand with less government support. These purchases helped drive up the value of these securities and maintained existing mortgage interest rates at the lowest level in over 40 years.

Mortgage rates are not expected to rise immediately as a result of the Feds decision to stop buying mortgage-backed securities, according to Scott Simon, a managing director at Pacific Investment Management Company, a big mortgage securities investor. He stated, “Private investors, who stepped aside when the Fed jumped into the market, are ready to return. It is not as though credit is all of a sudden going to become much more difficult to get. The big problem for the housing market is unemployment”.

Keep in mind, however, that, until we know what entities are going to step forward and start buying the mortgage-backed securities that the government has been purchasing, interest rates could start creeping up.

John Lonski, chief economist at Moody’s Investor Service says he isn’t expecting the Fed to move until private-sector job-growth is tracking above 100,000 a month for three months. Even if such job growth resumes, the Fed is clearly focused on getting the economy somewhat closer to “maximum employment”,- which before the Great Recession meant a jobless rate of roughly 5% - before it feels comfortable raising rates. The risk is that the Fed loses control of stable prices as a result of postponing an increase in rates.

The bottom line to all of this is – Right now, while inventories are high, and prices and rates are low, you will never find all of these competing influences working this hard in your favor, again. Better buy that house right now !!!!

 LAST CALL FOR FEDERAL TAX CREDIT

 Attention, all prospective homeowners !!! If you plan to buy a home anytime in the near future, keep in mind that, in order to obtain the Federal Tax Credit for homebuyers, you must be under contract by the end of April and must close by June 30, 2010. You will really kick yourself, if you let these deadlines pass.

FOR real estate AGENTS, THE FUTURE IS CLEAR – OFFER MORE INFORMATION TO CLIENTS, WORK HARDER FOR SMALLER COMMISSIONS, AND LEARN TO NEGOTIATE

The Inman News, a website dedicated to helping Realtors prepare for the future, featured an article titled, “real estate Darwinism”, March, 2010. The article lists some of the realities that will shape the future of the Real Estate market and predicts that the agents who survive and lead us out of this current mess are going to be those most willing to change. They will share three key attributes: they will be the most competent in their craft, utilize all available technology and be the most dedicated to customer service. Externally, technology will continue to drive industry change. Internally, change will come in the form of   technology and reduced commissions. Some of the predictions in the article were:

•  Online sources for information will enable customers to learn everything about specific properties before they even talk to an agent. We are almost there now.
• In order to justify a fair commission, agents will have to be transaction and negotiation experts to add value to the transaction
• There will be a shift back to the local and regional broker
• The brokerage office of the future will have far fewer agents, each handling many more transactions (Already, board memberships are falling in most areas. NAR membership is almost back down to 2004 levels).
• Independent contractor status will begin to evolve into employee status, with transaction bonuses

The article points out that these changes are market-driven and Realtors are facing the Darwinian reality that they can change, or be left behind. In 1975, a $1 million producer won awards and could feed a family. Today, they still get the award, but are barely making a living. These agents will cease to exist: the part-time agent will generally not fit in. You can see this evolution at work today in the growing number of “teams” working within brokers.

The article concludes by pointing out that all “free” markets move to an equilibrium of efficiency based on supply and demand, but the real estate industry has not yet made that adjustment. However, it appears that agents will eventually evolve into account managers with standard work schedules and quotas.

FEBRUARY SALES TAX REVENUES WERE UP

On March 16, 2010, The Gazette reported that in February, Colorado Springs sales tax collections rose 4.74% compared with those of February 2009. Sales tax collections fund more than half the city’s annual budget for general services such as police and fire protection, parks and roads.

Categories of goods that produced the greatest increase in sales taxes were furniture, appliances and electronics, up 17.76%; utilities, up 8.4%; department and discount stores, up 7.09%.

Decreases were posted by auto repairs and leases, down 11.02% and building materials, down 7.93% from the year before. This ties in with our other story about the decrease in home-building.

COUNTY PROJECTIONS SHOW THAT OUR AREA CONTINUES TO GROW

Prospective home owners and investors will be interested in the following chart from our County Government Planning Dept. As you can see, it shows that our area is one of the few parts of the country that is looking at continued growth through the foreseeable future.

THANK YOU, AGAIN, TO OUR GREAT CLIENTS

At the recent conference in Las Vegas, we were very pleased to be awarded the Platinum Producer Award for 2009 by the sponsoring organization, Leading real estate Companies of the World. It goes without saying that we are well aware the award was the result, not of our efforts, but of our clients’ loyalty and support, and we want to take this opportunity to thank all of you for your friendship and for your business. Stop by the office to see your award and we’ll buy you a cup of coffee.

Thanks, folks. 

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

Someone asked us what was meant by the expression, “Welfare Mentality”. We thought the following joke explains it perfectly:

Two old friends meet passing on the street one day. But one looked forlorn, and almost on the verge of tears. His friend asked, "What had the world done to you, my old friend?"

The sad fellow said, "Let me tell you. Three weeks ago, an uncle died and left me forty thousand dollars."

Friend: "That's not bad."

"But you see, two weeks ago, a cousin I never even knew kicked the bucket, and left me eighty-five thousand free and clear."

Friend: "Sounds like you should be grateful..."

"You don't understand!" he interrupted. "Last week my great-aunt passed away. I inherited almost a quarter of a million."

Now his friend was really confused. "Then, how come you look so glum?"

"This week... nothing!"

Margaret Thatcher said it best …”The problem with Socialism is that, eventually, you run out of other peoples’ money”

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

HOLD ON TO YOUR HATS - FHA IS TIGHTENING UP

We just returned from the annual week-long convention of the Leading real estate Companies of the World. There were over 780 Real Estate companies represented at the conference (23 from outside the U.S.). As always, the meeting featured a lot of fascinating seminars and trade show booths and we enjoyed having the opportunity to meet and greet Realtors from all over the country and the world. We were also very pleased to hear from many of the attendees that they are receiving and enjoying our eNewsletter. We’ll try to keep it interesting for you.

This year, most Realtors at the Leading RE conference were asking, “How long will it be before we see sales going up?”. In many parts of the country, the market is extremely soft. In Detroit, for example, the Realtor’s commission sometimes turns out to be higher than the actual selling price of the property. Fortunately for us, Colorado Springs is a real “Magnet Market”, and we received a lot of inquiries and interest in our local market from other conference attendees. However, although we have not suffered the steep declines that many of our fellow Realtors have seen, we still have a long way to go.

For us, the highlight of the conference this year was the presentation by Dave Stevens, the newly-appointed head of the Federal Housing Administration. Prior to his appointment, Dave had been with Long and Foster Realtors, the largest real estate company in the world. (They have over 10,000 Realtors working with them, primarily along the East coast.) So, Dave knows and understands the problems that the industry now faces.

In his capacity as head of the FHA, he meets regularly with Congressmen, Senators, Cabinet Members and the members of the Press and they all ask the same question, “Who created the present mess?”. Dave’s regular response is, “My neighbor. ….The one who bought the house he couldn’t afford”.

Some of the pertinent facts about the market that Dave brought out in his presentation were:

90% of all residential loans originated in the first quarter of 2009 were sold to either Freddy Mac or Fannie Mae

• 80% of insured loans in 2009 were to first-time Buyers (So it looks like the tax credits to these Buyers did work)
• FHA did a “terrible job” of monitoring lenders. Within the past 6 months, FHA has suspended the licenses of 359 lenders …That’s more than all of the suspensions since the year 2000.
• The cost of FHA insurance to Borrowers has been increased by 35%. This represents an increase in closing costs and monthly charges. The increase was to make up for the costs of foreclosures and short sales and to bring FHA’s charges into proper balance as a federal agency.
• When Seller concessions of up-to 6% were allowed, over 50% of the loans became delinquent. For that reason, FHA reduced the maximum allowable concessions to 3%.
• As of January 1, 2010, every loan officer must be licensed.

In conclusion, Dave Stevens said he sees himself as a “Professional Temporary” employee of the FHA. He emphasized his Faith and Trust in the real estate industry and pointed out that a market as large as the Real Estate market moves very slowly, but it is turning around.

THE WALL STREET JOURNAL SAYS, “IT’S TIME TO BUY YOUR NEW HOME”

In the Saturday, March 13, 2010 issue of the Wall Street Journal, two separate articles emphasized the need for speed in making your decision about buying your new home.  The first article emphasized that mortgage interest rates will soon rise. Predictions about the size of the increase vary, depending upon which expert your read, but all of the experts say a rate increase is coming. What will the increase mean to a typical Buyer. Well, for example, if a couple has a combined pretax income of $100,000 a year and debt obligations (excluding mortgage) of $500 a month, they would qualify for a $590,000 house, at the present interest rate of 5%. However, if rates go up to 6% (as some experts predict, that same couple would only qualify for a $540,000 mortgage.

In a separate article, the Journal writer explains that, in order to qualify for the soon-to-end Buyers-federal-tax-credit, you must be under contract by April 30 and must close by June 30. As we have mentioned before, it does not look like this tax credit will be renewed.

The WSJ writer also points out that appraisals are now a challenge for prospective Buyers. With home prices still falling in some areas of the country, you might find that the property appraises below the purchase price. That means the Buyer must come up with more down-payment, or, the Seller must lower the purchase price to keep the deal alive.

To get the best advertised rates, you must have a credit score of at-least 720, out of a possible 850. According to Fannie Mae, the big mortgage buyer, every 20 point drop in your credit score below 720 results in a steeper origination fee.

All of these factors point to the fact that these costs and rates are rising and, when inflation hits, will rise even more quickly.

There are many more factors that will affect the cost of your home purchase, but the two conclusions that are obvious are: 1. The home you look at today will cost you more tomorrow and, you will need some expert advice about all of these factors, so, give us a call right now.   

IN LAS VEGAS, I WAS DEFINITELY A ‘LICENSED’ REALTOR

As a means of publicizing and promoting our local community, and as a conversation starter at the Leading RE conference in Las Vegas, I decided to break the ice with the attendees by wearing my Colorado auto license on my chest, in addition to the traditional name tag. My Colorado license plate reads, RELOC8 and it really helped to start-up conversations with a lot of people. It seems that everyone is interested in Colorado and the Realtors were also intrigued by the idea of advertising their services on their license plates. If fact, the license plate even got us a couple of leads. We got inquiries from two employees of the Wynne Hotel, the host hotel for the conference, who wanted to talk with us about relocating to our area and a from a Realtor from Italy who loves skiing and is thinking about moving over here. Hey, this “Thinking Outside of the Box” stuff really works !!.    

LET’S MAKE A DEAL !

One other pleasant surprise for us at the Leading RE conference was the high level of interest from other Realtors in the “Certified Negotiation Expert” program that we recently completed. They were fascinated in the details about how negotiating skills can be learned and used to benefit both the Buyer and the Seller in a typical transaction. It goes without saying that, in every transaction, the Buyer and Seller both have the same goal, namely, the completion of the sale. However, that sale cannot be consummated until both parties are satisfied about such details as completion dates, down payment, terms, seller-provided furnishings, etc. Unfortunately, failure to resolve conflicts about such details often causes the deal to fall apart. That’s where negotiating skills on the part of the Realtor are so important. Identifying the goals of both parties, explaining options, suggesting solutions should all be part of the Realtor’s duties. That’s why we are so pleased to have recently completed the CNE certification process. It enables us to help both Buyer and Seller achieve their respective goals.        

And, please remember, I would be honored to serve as your Broker and negotiate on your behalf 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

In honor of St. Patrick’s Day, we offer the following classic:

An Irishman walks into a bar and orders three glasses of Guiness, drinking them one at a time. Noticing this odd ritual, the bartender explains that beer goes flat when poured and informs the man his beer would be much fresher if he ordered one glass at a time.

The Irishman explains he began this custom with his two brothers, who have moved to America and Australia, respectively. This is their way of remembering all the time they spent drinking together.

The man becomes a regular at the pub, well-known for always ordering three beers at once. One day he walks in and orders only two beers. Assuming the worst, a hush falls among other patrons.

When the Irishman returns to the bar to order his second round, the bartender quietly offers his condolences. The man looks confused for a moment, and then explains, "No, my brothers are both just fine, but I have given up beer for Lent."

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

DO YOU HAVE MONEY TO BURN ?

If you are not under contract by April 30, 2010 to buy your new home, you will be throwing away your chance to cash in on the federal tax credit of between $8000 and $6500. That’s when this program expires (and it doesn’t look like it will be renewed). Also, consider this: New FHA rules go into effect on April 5, 2010 and they will make it even more expensive for you to buy your home after that date.

Finally, just one more piece of evidence that inflation will begin to hit the housing market within the next two quarters (and thus, will increase the price you will have to pay for your new home) ….Builders use lots of copper in the construction process (wiring, piping, etc.) and earthquake-stricken Chile is the 3rd largest producer of copper in the world. In our last issue, we pointed out that a lumber shortage is beginning to affect building prices. Now it appears that a shortage of copper will also begin to be a factor for builders. Don’t be a Mugwump. Call us.

IT’S HARD TO CLIMB INTO THE LIFEBOAT WHILE YOU’RE STILL UNDER WATER

The Wall Street Journal (March 3, 2010) featured an interesting article explaining why the federal programs designed to help troubled homeowners stay in their homes have had such limited success. In theory, homeowners should be lined up to take advantage of these programs. Around 37% of all borrowers with 30-year conforming fixed-rate mortgages have mortgage rates of 6% or higher. Many of these homeowners could refinance at today’s rates and reduce their rates by a full percentage point, thus saving, on-average, $2,600 every year. Yet, through December, only 188,000 borrowers who owe between 80% and 105% of the value of their homes had refinanced.

Some mortgage bankers say that higher fees by lenders have undermined the effort to encourage refinancing. For example, a borrower with 20% down and a 695 credit score seeking to refinance must pay fees equal to 1% of the loan amount. These fees rise for borrowers with weaker credit scores, higher loan-to-value ratios or other risk factors. These fees “have defeated the Fed’s purchase program”, according to Alan Boyce, a mortgage-securities-market veteran. These loan fees are “partly responsible for why there’s been no refinancing boom.”

Furthermore, many homeowners are so far underwater that refinancing is out of the question. For example, John Albright, a retired Navy officer in Manassas, VA,, hasn’t been  able to refinance because the value of his home has plunged. He figures the market-value of his home is now around $275,000, but he and his wife owe more than $500,000 on their mortgage. When he tried to refinance, his lender told him he would have to come up with about $200,000 to pay down his mortgage before refinancing would be possible. Falling home values are one of the biggest factors raising borrowers refinancing costs. Furthermore, borrowers with less than 20% equity may have to pay for mortgage insurance.

As a result of all of these factors, borrowers who are now refinancing tend to be those who need it least. They are people who have very good credit “and the savings really aren’t going very far down the credit spectrum”, according to Michael Fratantoni, the head of research and economics for the MBA.

The Obama administration is planning to extend for a year a program launched last April to help homeowners with little or no equity to refinance. Last September, it was even expanded to include borrowers who owe up to 125% of their home value, but fewer than 2,000 borrowers have used the program through December. The program, which had been set to expire this June, was called “a failure” last week by analysts at Barclays Capital.

The bottom line is that, unless something changes, it looks like troubled homeowners will just have to keep paddling as fast as they can for a while.  

HOMEBUYERS EXPECT THEIR AGENTS TO BE GOOD NEGOTIATORS

In 2009, the National Association of Realtors published the results of their survey of home Buyers and Sellers.  The comments from the survey respondents reinforced our long-held opinion that that the negotiating skills of agents are a huge factor in bringing real estate transactions to successful and satisfying conclusions. Some of the survey responses indicated that:

• 99% of Buyers believe negotiation skills are “Very Important”. or, “Somewhat Important” in their real estate agent
• Only 42% of all Buyers felt that their agent negotiated “better contract terms” on their behalf
• Only 36% of all Buyers felt that their agents “negotiated a better price”
• Buyers gave “Negotiating Skills” the lowest satisfaction rating of all agent skills and qualities.

Just a few of the areas of a typical real estate transaction in which negotiating skills become a factor are:

v  Establishing current market value/price

v  Listing details – What stays and what goes, allowances, etc.

v  Amount of earnest money required

v  Choices in financing

v  Establishing and coordinating performance dates

v  Inspection, replacement, repairs of problems

v  Special add-ons such as Warranties, Job-Loss-Protection, etc.

With these facts as background, we were excited to hear that the real estate Negotiation Institute had scheduled their Certification Program for Real Estate Professionals this month in Colorado. This would mark the first time this program has been available in our state. Because we have always been convinced that negotiating on behalf of our clients is one of our major responsibilities, we immediately enrolled in this important CNE program and are pleased to announce that we have successfully completed the training and have been awarded the coveted “Certified Negotiation Expert” designation by the CNE. We are especially proud of this achievement, since only 5000 of the 1.1 million Realtors nationwide have been awarded this certification.  

And, please remember, I would be honored to use my negotiating skills 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. 

COLORADO SPRINGS IS WIRED

Forbes.com has ranked Colorado Springs as the nation’s sixth-most-wired city in its annual ranking, ahead of technology hotbeds such as Boston and San Jose, California. Our first appearance on the list was triggered as a result of higher broadband usage than in previous years – 69%. Or, just 2% less than top-ranked Raleigh, NC., and eighth among all cities. We rank 11^th in the number of companies providing broadband access with 15, and also 11^th in Wi-Fi hot spots. How about that !!!

LATEST STATISTICS LOOKING GOOD !!

On Friday, March 5, 2010, The Gazette reported that “home sales and prices rose again last month in the Pikes Peak region, continuing a string of better showings for the local resale market”. Single family/patio home sales in February were 504, compared with 464 in February of 2009. New listings were 1,389, compared with 1,312 in 2009. It was the eighth straight month that year-over-year sales have improved, after nearly three years of declines. For the first two months of the year, sales totaled 1,035, a 12.9% increase over the same period in 2009. It looks like we are well into a rebound from the recession.

LAS VEGAS, HERE WE COME !!

This week, we will be attending the annual meeting of “Leading real estate Companies of the World”, in Las Vegas, NV. This is a great opportunity for us to keep current on the latest information about Real Estate and relocation and it helps us serve our clients more effectively. Many of our readers will also be there, so we look forward to seeing you all there. 

JOKE OF THE WEEK

With Springtime just around the corner, we thought it might be time for a couple of jokes about robins from Aesop’s fables. The first one warns us about complacency and the second one urges us to control our appetites.

1      Two robins were sitting in a tree. "I'm really hungry", said the first one. "Me, too," said the second. "Let's fly down and find some lunch." They flew to the ground and found a nice plot of plowed ground full of worms. They ate and ate and ate and ate until they could eat no more. "I'm so full I don't think I can fly back up to the tree", said the first robin. "Me, either. Let's just lay here and bask in the warm sun", said the second. They plopped down, basking in the sun. No sooner had they fallen asleep than a big fat tomcat sneaked up and gobbled them up. As he sat washing his face after his meal, he thought, "I just love baskin' robins."

2      Two robins were sitting in a tree. "I'm really hungry", said the first one. "Me, too," said the second.    "Let's fly down and find some lunch." They flew to the ground and, in the middle of the road, they found some road apples (Our urban readers will have to find a horseowner to translate that expression for them). They ate and ate and ate and ate until they could eat no more. Then, they flew into the front yard of the adjacent lot and perched on the handle of the homeowner’s lawnmower to rest. Unfortunately, they had gorged themselves so much that, when they tried to fly off, they both had heart attacks and fell to the ground, dead. The moral to the story is, “ Don’t fly off the handle, if you are full of road apples”.

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

INFLATION IS COMING !! ......... INFLATION IS COMING !!

Last week, we pointed out how the costs of building materials and rising credit card fees were indicators of oncoming inflation. So, it’s no surprise that, this week, the U.S. Commerce Department reported that the U.S. economy grew at the rate of 5.9% in the fourth quarter of 2009. This “good” news was reported in the Wall Street Journal on February 27, 2010. Now, growth is good, but, the rule of thumb that is generally accepted is that quarterly growth over 2-2 ½% in any quarter means that inflation will increase within the following two quarters. That’s the ‘down” side of the good news. The NAR data on the 2009 fourth quarter median prices for homes referenced below, shows that Colorado Springs home prices are going up, which will only add to the inflationary pressure. Better buy now !!!

JOB LOSS PROTECTION PROGRAM JUST GOT BETTER

Last Summer, Salzman real estate Services, Ltd. became the only Colorado Springs source for the Job-Loss-Protection Program for Buyers. We are still the only local Realtor to offer this revolutionary program which has been so well-received by local HomeBuyers. The way the program works is that, within two years after closing, if a covered Homebuyer gets laid off from his or her job and is receiving unemployment benefits from their state, the JLP program will make their mortgage payments for them, for up-to six months.

When we introduced this program in 2009, the maximum monthly payment covered by this program was $1800. However, this past week, we were notified by the program sponsor that they had raised the maximum monthly payment to $2000. This increase should make the program even more appealing to prospective HomeBuyers. We are also pleased to announce that, through our network of relocation specialists, we are able to offer this plan to our out-of-state clients, as well.

The Job-Loss-Protection Program is funded by the Rainy Day Foundation, a non-profit organization, based in Washington, DC, and is marketed by Creative Alliances.

CAN MORTGAGE MONEY GET ANY CHEAPER ? 

Last week, the great home mortgage rates that are now available were dramatically demonstrated to one of our clients who is moving into the area from Kansas. To their delight, we were able to find them a 30 year mortgage, with a rate of only 4 7/8%. However, after shopping around, we were also able to find them a 15 year mortgage, without any origination fees or discount points, with a rate of 4 3/8%. Just that small difference in rates will enable them to pay off their home in half the time they had planned for. The moral of the story …These rates can’t last forever …Don’t be a “Mugwump”…. Buy now.

LOOKING FOR WORK? CHECK THIS OUT

Every year, we attend the Annual real estate Cyberspace Convention. Since 2002, this event has regularly featured exciting ideas and tips about technology and marketing for Real Estate professionals. This year, they also featured a website designed to assist our clients and prospective clients who might be seeking employment. If any of our readers fit into that category, here’s a site that might be of help. www.currentlocaljobs.com. This site claims to have found 4064 jobs in the Colorado Springs area. Good Hunting !! 

NAR QUARTERLY REPORT

Call us to receive the Quarterly report of housing prices from the National Association of Realtors.

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

It's the first day of school and the teacher thought she'd get to know the kids by asking them their name and what their father does for a living.

The first little girl says: "My name is Mary and my daddy is a postman."

The next little boy says: "I'm Andy and my Dad is a mechanic."

Then one little boy says: "My name is Jimmy and my father is a loser who prefers to lay on the couch all day and watch TV, while Mom goes off to work to support us."

The teacher gasps and quickly changes the subject, but later in the schoolyard the teacher approaches Jimmy privately and asks if it was really true what he had said about his father.

He blushed and said, "I'm sorry but my dad plays hockey for Team USA, and I was just too embarrassed to say so."

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

ANOTHER  REASON TO  BUY NOW !!! (OR, WOULD YOU RATHER BE A MULE?)

In previous issues, we have pointed out that when the looming Inflation hits, home prices will necessarily have to increase. Well, it doesn’t look like we will have to wait until the third or fourth quarter for the predicted inflation to begin. Last week, the Wall Street Journal’s Commodities Report noted that lumber prices have climbed 32% since January 1, 2010. This sudden climb in prices is the result of a shortage of lumber caused by the cut-backs of 45% in production at the lumber mills.

Between 2005 and 2009, lumber prices showed a consistent decline. However, as a result of the 2009 fall-off in residential construction, lumber mills laid off workers and decreased inventories. That kind of cut-back cannot be reversed overnight.  It will take time for mills to re-hire workers and return to full production, and that will happen only when the mill owners are convinced that there is a sustainable rebound in residential construction. The predictable result of this present lumber-shortage is that builders will now have to delay construction as they wait for deliveries and will have to pay more for lumber, when it becomes available. That cost increase will be passed along to home buyers.

This impending cost increase reflects two basic facts of life. First of all, as we all learned in Economics 101, Supply and Demand will always balance each other out. When a commodity is in short supply, it will cost more…and that includes two-by-fours. The second lesson may not be familiar to most present-day city dwellers. Old-time mule-skinners used to say that the first step in training a mule was to hit him between the eyes with a two-by-four. That got the mule’s attention and helped him concentrate on learning. Well, it seems that the mill-owners have just hit us between the eyes with a two-by-four. Will it help us to learn our lesson?? We remind all prospective home buyers that the home you buy today will definitely be worth more tomorrow.

CREDIT CARD CHARGES GOING UP

As of today, new federal regulations governing credit card companies will go into effect. As with all governmental regulations, these new regulations will increase the credit card companies’ cost of doing business and will be passed along to the users of credit cards (in other words, to everybody). Just another example of how inflation is creeping in.  

4TH-QUARTER STATS NOW AVAILABLE FROM SOUTHERN COLORADO ECONOMIC FORUM

The Southern Colorado Economic Forum of the University of Colorado at Colorado Springs has just published its 2009 fourth-quarter report. This comprehensive report contains invaluable information about our local economy and will assist you in making sound decisions about your real estate investments. It covers such topics as:

• The Business Conditions Index: An overall view of 10 separate activities of products and services
• Single-family permit trends
• Multi-family permits
• Year-to-date single-family home sales
• Monthly single-family home sales
• Average home-sale prices
• Median home-sale prices
• El Paso County foreclosure statistics
• Multi-family vacancy rates
• Emplanement trends at Colorado Springs Airport
• Colorado Springs sales-tax collections
• New car registration statistics

Please give us a call, if you would like us to forward a complete copy of this report. It will help you analyze our market and make good decisions about your home-buying and/or selling decisions.

ATTENTION !!! HOME BUYERS TAX CREDIT WILL EXPIRE ON APRIL 30, 2010

We urge you to take advantage of the Federal Tax Credit to Home-Buyers and BUY NOW !!!. This valuable tax-credit is a gift to you from Uncle Sam and may not be extended. If you would like to take advantage of this tax-credit, you must be under contract by April 30, 2010 and must close by June 30, 2010.

COLORADO SPRINGS CONSUMERS HAVE DECIDED TO START BUYING AGAIN

This past Wednesday, the city reported that city-sales-tax revenues in January, 2010 were 6.8% higher than in January 2009. While this gain was down 6.9% from the beginning of the Recession in January, 2005, it was still the largest percentage gain in two years. This is a good indication that local consumers are tired of waiting for someone to announce that the recession is over and they have decided that it’s time to start buying again. As the man said, “I heard there was a recession, but, I decided not to participate”.  It’s great news !!!

SALZMAN NOW OFFERS THE “NEIGHBORHOOD PREFERRED CUSTOMER PROGRAM”

Salzman real estate Services can now provide clients with a 15% discount on all painting and decorating products, through the Sherwin Williams “Neighborhood Preferred Customer Program”. As a member of this money-saving program, we can now offer these discounts to our clients in every

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