My New Blog

The new FHA policy changes are designed to shore up the FHA's capital reserves and help the agency do a better job of managing risk.

How will it affect Buyers?

1. The FHA is raising its upfront mortgage insurance premium to 2.25% from 1.75%, which will boost the minimum down payment to 10% for borrowers with a credit score of 580 and below. This will affect first time home buyers who have not had a chance to build up their credit score and for other Buyers where the economy has affected their ability to save money for a down payment.

2. They will also reduce the permissable seller concessions from 6% down to 3%. This will affect the Buyer because these funds were typically used to help pay closing costs such as title insurance and the mortgage origination fee.

The up front mortgage insurance premium increase goes into effect April 5th.

Many homeowners have taken advantage of the 2009 American Recovery and Reinvestment Act and many more will.

What is it? The government will offer up to $1500.00 for energy efficiency measures made to existing homes during 2009 and 2010. Consumers may recover 30% of the cost of adding insulation materials and exterior doors, windows and roofs designed to help reduce a home's heat loss or gain. The credit also covers efficient central air conditioners, air-source heat pumps, hot water heaters and biomass stoves. So for example, if you spent $1000.00 on new insulation, you would get a $300.00 tax credit back!

To qualify for the credit the upgrade has to be more energy efficient than the 2006 and 2007 energy efficient program. It also must take place after February 17, 2009. To see if you qualify, visit www.irs.gov/recovery.  

Be advised...you have until the end of 2010 to make your upgrades.

Home inspections can often be a difficult stage in selling your home. They are also VERY important to have done for both sides of the transaction. I have had deals fall apart representing both Sellers and Buyers. I have also seen Buyers start to get overly picky because of all the little problems that could have been fixed PRIOR to the inspection. For Buyers, it is obvious why a thorough home inspection should be performed. There are dishonest people who try to hide known issues with their home. There are also people who would not have known about issues had the inspection not been performed. Buyers need to be informed as to what they may be purchasing and Sellers need to know what exactly they are selling. 

This post is for Sellers and what they can do PRIOR to selling their home. When I take a listing, I like to do a walk through with my Seller and look for things that may come up in an inspection report. I then advise my Seller to PREPARE for the future inspection when we get a Buyer, by having the issues remedied BEFORE an inspection is ever performed. Here are the most common:

1. Improper electrical wiring

 The most popular seems to be DIY basement finishes. Make sure that you pulled a permit before finishing your basement. Sellers could face municipal penalties and Buyers can request that the wiring is inspected...that means holes in your walls. I have also seen Sellers have extra outlets installed that were not properly grounded. Always make sure that you use a licensed and reputable electrician.

2. Roof deterioration

 Replace old or worn singles or tiles. This is a maintenance issue that should be performed every year. With the heat, hail and snow that we get in Colorado, this maintenance is very important. 

3. Plumbing problems

 Make sure your toilets are seated securely to your floor with no wiggle. Check for leaks under sinks by turning on your water and feeling for leaks around the pipes. Check your water heater for any corrosion. I have seen big problems with DIY basement finishes in this area as well. Always pull permits, your inspector will let you know if any plumbing problems exist while you are finishing your basement. It is better to do it right the first time.

4. Improper surface grading or drainage

 Make sure your gutters do not have any holes or cracks. Make sure all your downspouts are installed and direct water away from your home. While it is raining, grab an umbrella and see how the rain water is draining around your home. It should flow away from your home.

5. Poor overall upkeep

 Check all interior and exterior caulking. Make sure there are no penetrations in the caulk. Check that you don't have excessive peeling and fading paint on the exterior. Touch up the interior. Paint is one of the cheapest and simplest things you can do to your home. It also makes a huge impact on Buyers when the paint is uniform inside and out.

Well, there you have it. Inspections are very important. Sellers, take care of minor issues before the inspection ever occurs. Chances are, the Buyers inspector will find the same repairs and ask you to remedy them. Please call me at 719-492-2439 or send me an email to johnnyj@rtopproducer.com with any questions. 

Here is a summary of the changes:

1. The expiration date for the credit will now be April 30, 2010.

2. First-time buyers who have not had interest in a principal residence for three years are still eligible, and the maximum amount remains the same $8,000 for married couples, $4,000 for those filing separately.

3. Current homeowners, who have consecutively maintained the home they want to sell as their primary residence for five of the last eight years, are also eligible. However, the maximum amount for those homeowners is lower: $6,500 for married couples and $3,200 for those filing separately.

4. The tax credit may not be used to purchase a home for more than $800,000. All buyers who want to get the credit must include documentation of the purchase on their tax returns.

5. The income limits for both tax credits have been raised to $125,000 for single buyers and $225,000 for married couples.

Not all Realtors® are equal. Did you know that more people find their homes online through a Realtor® than any other way? The internet has changed how we all live and work. And this is no different when it comes to selling your home.

I have an incredible online marketing campaign that puts your home in front of the maximum amount of Buyers. My online plan includes things like online magazines, narrated virtual tours, Seller Statistics Reports, Agent Accountability Reports, unlimited photos, house website and Google® Earth Aerial maps.

Some other things that I do includes a 1-800 call capture system, follow up on all showings, always providing the Seller with an accurate view of the current market conditions throughout the listing term in case we need to change marketing strategies, full color brochures with multiple contact points for prospective Buyers and more. Please give me a call at 719-492-2439 or send me an email to johnnyj@topproducer.com if you would like to schedule an appointment to meet.

NUMBER 1

Rock Bottom Restaurant and Brewery is probably my wife and I's favorite place to eat or just to hang out and have a drink. We used to live right up the street from them in Springs Ranch. It is located right next door to the Cinemark IMAX at Carefree Circle. It is great to have dinner and go catch a movie afterwards. We have been going their since they first opened their doors.

We have tried almost half the menu and have not found anything we do not like. They brew their own beer in house. You can order a Bud if you want, but their beers are far better. They offer anything from lights to ambers to stouts and specialties. We were there the other night and to our surprise they added a bunch of new items. My wife had the Brewers Club sandwich. I had one of the new dishes. It is called the Baja Tuna. It is a sushi grade piece of Tuna cooked medium rare with a pineapple and green pepper sauce on top...unbelievable! They also have great steaks like the Texas Fire Steak that comes with jalapeno butter! The BBQ Stout ribs are awesome. The BBQ sauce is made with their Stout Beer, which is awesome by itself. (I had that the other night). They also brew soda.

The ambience is also very nice. Not a whole lot of light, lots of booths and nice, relaxing colors. The wait staff is always great. I also noticed that they were starting an open mic night soon, which sounded weird for the place, but who knows. We will check it out and let you know how it is.

 Here is their link:

 http://www.rockbottom.com/

NUMBER 2

Salsa Brava Fresh Mexican Grill is great! I am kind of biased though, my sister works there.

First the wait staff is incredible...Stacie and Rick, you know who I'm talking about. The Manager, Ally, makes sure everything is perfect. Their website states traditional mexican with a twist...perfect. I was there last week for lunch. I had a Taco Salad with pork in a taco shell. We have all had taco salads, but theirs is by far the best. I have had many other dishes and I have not been disappointed. They serve fresh chips and salsa when you are sat at your table. The fresh guacamole is incredible!

The ambience is very laid back and relaxing. This is especially true when night falls and you feel like eating outside. They have a beautiful patio with a fire pit. 

Here is their link:

http://salsabravaonline.com/

NUMBER 3:

Coming Soon.

Here are two BIG reasons:

1. Abnormal Appreciation 

Historically, home prices appreciate at about 5% per year. During the six years between 2000 and 2006, appreciation was at 89%. So, instead of 5% appreciation during the 5 year span, we had nearly 15% appreciation per year! Today's correction is a move toward stability.

1980-1985   Homes appreciated 25%

1985-1990   Homes appreciated 27%

1990-1995   Homes appreciated 25%

1995-2000   Homes appreciated 29%

2000-2006   Homes appreciated 89%

2. Lots of listings create depressed prices.

A normal market should contain about 5-6 months worth of inventory. To obtain this number of inventory, you would take the total inventory and divide it by the number of houses sold per month.So an example of a normal market would be if 100 houses sell a month, there should be 500 to 600 houses in active inventory.

In our current market of excessive inventory, there are not enough Buyers to support the number of active inventory. This in turn, drives home prices down. In a "Sellers Market", there is much less inventory which drives prices up, because Buyers are forced to "move quickly" on making an offer due to the competition of other Buyers and not much inventory.

So, what should we do?

Well, as you can see, this is a tremendous market to buy in. Rates are low, home prices are low and there are benefits like the new $8,000 tax credit available for first time home buyers or buyers who have not owned a home in the last 3 years.

My wife and I got a great deal on a Bank-Owned property almost a year ago. It is a part of town that is pretty far out from "civilization", but our goal is in the long run. We are currently doing minor upgrades and plan to sell when the market corrects itself. Hopefully we will realize a great profit and be able to move to exactly where we want.

We are in a market correction. This is not the first time, nor the last time we will see this happen to the real estate market. Real estate has always been a fabulous investment, and it will be like that again. We just need to be patient and look on the bright side that if you have the means, or a goal of first time home-ownership, or "moving up", or buying a second home then now is definitely the time to do it.

Please give me a call at 719-492-2439 or send me an email to johnnyj@topproducer.com

Sponsored by: Fucothin

What a great time for first time home buyers! I want to be sure that all first time home buyers and previous buyers who have not owned a house in the past three years know about the $8,000 tax credit. Here it is:

• True Credit: The $8,000 requires NO payback, making it a true credit, unlike last years $7,500 "credit" which is required to be paid back interest free over the course of 15 years.
• Purchase Date: The purchase date needs to be between January 1, 2009 and November 30, 2009 in order to qualify for the credit.
• First time buyer definition: Buyer must not have owned a home during the past three years and must live in the purchased house for at least three years (primary residence).
• "How do I receive the credit"?: All you need to do is claim it when you do your taxes. Taxpayers who have already filed may file an amended return for 2008 to claim the credit. 
• Restrictions on Income: Single Buyers must not make more than $75,000 per year and Married Buyers must not make more than $150,000 per year.  

I hope that helps. If you or someone you know is interested in buying a home and utilizing the $8,000 First Time Home Buyer Credit, please call me at 719-492-2439 or send me an email to johnnyj@topproducer.com