Freddie Mac’s weekly mortgage rate survey released on 9/9/10 was at 4.35% for a 30-year mortgage. This represents 30-year fixed rates locked nationally in the preceding week, some with points and some without points. The only time it’s been lower was for the survey released 9/2/10 when it was at 4.32%. Earlier this year on 2/18/10 it was at 4.43%. In the 33 year history Freddie has been tracking rates they have never been lower than our current rates. Here are a few “highlights”: 2009 averaged 5.04%; 2008 averaged 6.03%; 2007 was at 6.34%; December of ’71 rates were at 7.48% and in February of ’82 the 30-year fixed rate average was 17.60% (the good old days?).

To find lower rates than we currently enjoy you may have to speak with George Bailey in Bedford Falls at the Bailey Building and Loan Association when it really was a wonderful life in 1946!

It looks like prices of homes are beginning to increase in many areas in the Denver area anyone interested in purchasing a home either for the first time or as a “move up” should consider how the lower rates will leverage their affordability  with this uniquely low rate market.

Tim Hickey

Senior Loan Officer

Affiliated Financial Group, LLC

Direct: 303-740-1474

Cell:    303-669-4087

Efax:   720-241-7874

Email: thickey@afg-co.com

www.afgcolorado.com

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Good Luck! If we can help you by answering a few questions for you, just call one of us and we’ll do our best to help.

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It is the most critical element when selling any product, especially when you’re talking about something as large as a home sale. Homes that are listed with a Realtor® that are overpriced stand a slim chance of selling. Overpricing by owners makes it next to impossible!

Often times people want more money for their homes because they have done some kind of recent improvement. Not all improvements increase the value. For example if you replaced a roof, a furnace, hot water tank, or new appliances, don’t expect to see much payback on the money you invested.  It will probably help your home sale faster, but may not add to the price.

Lack of Exposure

Some for sale by owners do nothing more than put up a for sale by owner sign in the front lawn and expect that will do the trick. Then there are others that think that going in one of the for sale by owner sites like I sold my house.com, for sale by owner.com or buy owner.com is going to bring lots of traffic. WRONG!

These sites generate a pittance of traffic in comparison to the sites some of the top web savvy Realtors® use to promote homes. Just go to Google or any other major search engine and type in a local search with keywords a buyer would use, and see what you get. Go ahead and try it. You will find your search will be dominated by sites that show homes listed by Real Estate agents. These FSBO sites promise the world and deliver empty promises the majority of the time.

Buyers Want to Save the Commission and Looking For Bargains

One of the other factors associated with selling a home by owner is the fact that many of the people viewing the home are going to want to share in the commission savings. Many of the potential buyers who will be looking at for sale by owner homes are bargain hunters. Their line of thinking is since the seller is not paying a commission, they should be able to offer less for the home. Sellers end up receiving low ball offers on many occasions. Buyers will often take 5-15% right off the top regardless if the home is priced well or not.

Home Accessibility and Buyer Qualifications

These last two reasons are often overlooked by someone trying to sell their own home. It is hard to sell a home if a buyer can’t get in to see it. Often times when a FSBO is trying to sell they need to match their schedules with the buyer which sometimes is not that easy especially for those that work full time. A Realtor of course makes this part of the home sale process go much smoother. Lastly, home sellers need to be equipped with the knowledge of knowing how to qualify potential buyers. There is no point in having unqualified foot traffic going through a home. This is also part of a Realtors job. Most buyers that view homes today are pre-approved. As a FSBO you need to make sure that the same holds true when showing your home.

For complete information about what RE/MAX the Matthias group offers and the experienced we have to help you, just go to www.coloradorealestate.com and check us out.

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Every year there are a small number of people who decide to try to privately sell their own home and often walk away losing a lot of money, or worse are involved in a lawsuit that may take months to settle. We call them FSBOs or (For Sale By Owners). These sellers that try to sell their homes, without the aid of a licensed real estate agent, are in hope of saving some money and in today’s complex real estate market, most are very disappointed. Not only do these homeowners need help to prepare their home for sale according to demands of today’s buyer preferences, but they venture into the land of pricing, marketing, screening, scheduling, showing and paperwork that they are not prepared for.

The National Association of Realtors^® researches and surveys these sales every year. For the past six years, their research has concluded that homes sold with a Realtor^® tend to net the seller an average of 15% more than those homes sold by the owner themselves.

More telling is the fact that 40 percent of all FSBOs sold their homes to someone they knew prior to the transaction. This means that only 7 percent of all home sales are open market transactions. The rest are simply unrepresented sellers in private transactions.

• 18% of FSBO indicated that preparing the home for sale was the most difficult task;
• 16% said understanding and preparing paperwork;
• 15% said selling within their desired time frame.

As for profit – after all is said and done, FSBOs don’t always come out with more money. Again, the numbers tell the truth.

Homes sold with the help of a real estate professional over the past five years sold on average for 32 percent more than FSBO sales. So if the median FSBO selling price is $187,200, the average price by using a Realtor^® would be $247,000.

Just Think For A Minute, If You Were A Buyer, Why Would You Want To Not Receive All The Free Services And Professional Help Provided By A Realtor^® And Buy A Home Direct From The Owner?

The only reason would be to save money, right? Or the home you are looking at is a one of a kind property that you have been waiting to come on the market for years, slim chance but possible.

Now For Sale By Owners: Why have you decided to sell it on your own without using all the services of a Realtor^®? Save money right? So both you and the buyer are trying to save the same money. Who do you think will negotiate the savings in this market? Or will both of you spend a lot of money hiring an attorney, paying too much for a mortgage, or not getting all the free services provided to both buyers and sellers by a professional real estate associate?

Here are just a few of the things we do at RE/MAX, the Matthias Group for our buyers and sellers.

For Buyers we will:

• Buyer Counseling Session
• Financing Pre-Qualification Options
• Buyer Needs Discussed at Group and Office Meetings
• Showing Booklets/Property Search
• Comparable Market Research
• Listing History of Interested Homes
• Professional Negotiations
• Building & Radon Inspection Recommendations
• O & E (Ownership & Encumbrances)
• One Year Home Warranty
• Professional Cleaning of Home if Needed
• Walk-Through Prior to Closing
• After Sale Service
• Excellence in Service With The Matthias Real Estate Group.  Support & Availability

For Sellers we will:

• Pre-Inspection
• 2 Hours of Handyman Service
• Home Warranty
• Pre-Title Commitment
• Professional Staging
• Professional Measurement To Verify Square Footage
• Professional Photography Pictures by 360house.com
• 360house.com Virtual Tour Placed On CD’s For The Home
• Showing Beacon
• Special Feature Silent Tour
• Website Publications
• Indoor/Outdoor Full Color Brochures
• Full Color Flyers At SMDRA Marketing Sessions
• Monthly Newsletters Featuring Listings
• New Listing Ad Featured In The Buyer’s Guide
• New Listing Ad Featured In Your Local Newspaper
• Input Into The MLS (Metro Listing Service)
• All Showings Followed Up & Agents Called For Feedback
• Open Houses When Available
• Once The Property Is Under Contract Meet The Appraiser With Comparables Of Your Home
• Professional Cleaning Before Closing
• Most Important: Consistent Communication Between You and Our Team

Don’t expect all Realtors® to provide the same services we provide as there is a huge difference in the services provided and the experience that a Realtor® has. We’d be glad to talk to you about selling your home, and review our qualifications with you—just give us a call!

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Check with your lender on any local programs that might help with closing costs or in other ways. Even though the media have pronounced the 100-percent-financing option dead, this is not always the case. Check it out for yourself and then get preapproved for a loan so you know how much house you’re able to buy.

Step 2. Be Specific in the Area You Want To Live
Educate yourself. Familiarize yourself with the neighborhoods you’re interested in, the taxes and school districts. This not only helps you narrow down your search when you need to move fast, but also helps you figure out potential mortgage payments. Search for homes in your desired neighborhoods.

Step 3. Find an Agent Specializing in the Area You Want to Live
This will save you time and effort. Once you’ve identified an agent, trust him or her to do the job. Agents who are thriving in this challenging market have proven their worth. They have the resources and skills to help you find your next home.

Step 4. Don’t Shy Away From Houses That Need Some Work
Just because a house needs some paint or cosmetic fixes doesn’t mean it’s not a good buy. Most real estate agents have an address book full of trusted businesses they work with to help you fix up your new home. There’s an HUD program known as 203(k) that enables you to fold repair money into a primary mortgage; ask a RE/MAX agent in your market about the program.

Read more about the 203(k) program.

Step 5. Be Prepared To Act
Sometimes the first home you see is the right one for you. Don’t discount it. Remember, good deals still go fast. Take advantage of the electronic tools your real estate agent has to offer. In many instances, real estate agents have access to better information than what you can find in a standard Internet search.

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(Denver, CO – June 1, 2010) For the second consecutive year, RE/MAX is listed among the top 2 percent of U.S. companies that have made a commitment to America’s veterans and military families. RE/MAX was named to the “2010 Top 100 Military Friendly Employer” list by G.I. Jobs magazine. RE/MAX was the only real estate company represented in the Top 100, a list that was narrowed down from more than 5,000 companies that have generated at least $500 million in revenue.

“It’s been a privilege to have the opportunity to hire those who serve our country,” said Dave Liniger, RE/MAX Chairman and Co-Founder. “RE/MAX recognizes the unique skills of our dedicated servicemen and women, and is pleased to help them find rewarding careers in the real estate industry.”

Companies were judged on criteria that included the percentage of new hires with prior military service, and also their policies toward National Guard and Reserve service. Many RE/MAX employees and top ranking officers, including Dave Liniger, have served on active duty in the military.

RE/MAX promotes military hiring to its offices through the innovative employment program, Operation RE/MAX. Along with helping military personnel find jobs in real estate, RE/MAX has also made a specific commitment to helping military spouses and has been featured on the “Top Ten Military Spouse Friendly Employer” list by Military Spouse magazine the last three years. “Military families make sacrifices for us each and every day,” added Liniger. “Providing career opportunities to military spouses recognizes their sacrifice, but also provides income and security for their whole family.”

As a result of the success of the program, RE/MAX was honored with the Office of the Secretary of Defense Exceptional Public Service Award in 2007. The prestigious award is one of the highest given to civilians, and was presented to Gail Liniger, Vice Chairman of the Board and Co-Founder, in a special Pentagon ceremony.

RE/MAX is joined on the G.I. Jobs Top 100 list by other high-profile organizations such as ITT, General Electric, Bank of America, and Waste Management. This list is featured in the magazine’s May 2010 issue.

For information about how we can help you with your real estate needs, contact The Matthias Group at RE/MAX Professionals.

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This survey suggests further growth in the FHA’s market share, which has already grown considerably in recent years. In the first quarter of 2010, almost half of all home buyers used an FHA loan to purchase a home.

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The tax credits are expired and all those home buyers that were able to take advantage of the government programs are happy campers today. Just yesterday one of my buyers called to let me know they received their $8000.00 check and have plans to spend it wisely. It helped a lot of buyers but didn’t really change the real estate market in most areas.

In Colorado, especially around Denver, the market is recovering well and buyers are once again out looking for a dream home to meet their needs and are finding a good selection of affordable homes to choose from.

The really good news is we have historically low interest rates which means lower monthly payments for home buyers. We have never seen interest rates as low as they are today and have been that low for several months. Just look at this graph and see how fortunate we are to be buying at around or below 5% interest.

I went into real estate in 1973, yes I was really young, with interest rates about 7% and had no idea what was ahead of us. As you can see rates started climbing in the 70’s and actually peaked out around 18% in 1981. We found out that if a home didn’t have an assumable loan, or the seller was not willing to finance the home, it just didn’t sell. Many of the ways to assume and carry back are not allowed today so it would have been much worse if we were working under today’s mortgage guidelines.

Yes interest rates are terrific, so let’s talk about price. The Denver area is very complex and in some areas the prices of homes are down 10% or more from just a few years ago. Condo’s and town homes have taken a larger reduction than single family homes, however there are many areas that are doing just fine and are seeing home values on the increase. The best areas are those with average home prices in established neighborhoods. Areas like Highlands Ranch, Littleton, Centennial and most areas of Aurora are doing well as they were not boom town subdivisions off the beaten path and the job market remained fairly stable.

Higher priced homes over $450,000 were hit the hardest and multimillion dollar homes have been close to a standstill. Just in the last few months we have started to see jumbo loans come back and are now helping  the buyers needing a mortgage over $417,000, so a few of those more expensive homes are starting to sell.

The number of homes going on the market in all price ranges are going up, which means the selection is on the buyer’s side of the ledger sheet once again.

So I agree with many other professionals that now is a great time to buy a home.  If you have an existing home to sell, get it on the market early and price it right. Don’t expect to buy a new home contingent upon selling your home first, as sellers are not willing to take that gamble.

There is a big difference in real estate agents, so interview a few and make your decision on who to represent you based on their experience, their desire, and the services they offer. Make sure you can talk to them and they are available to take care of your needs. If you’re trying to hire an agent based upon the fee they charge you will most likely get what you pay for.

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All the fashion stars return for “Sex and the City 2,” including Manolo and Dior. And RE/MAX becomes the latest brand to be featured in the smash-hit TV and movie franchise.

The RE/MAX Balloon appears in a TV commercial as characters Carrie Bradshaw and John “Mr. Big” Preston channel surf before bedtime.

The highly anticipated film opened Thursday in 30 countries, and is expected to keep pace with ticket sales of the first “Sex and the City” movie, which earned more than $415 million worldwide, according to Reuters.

HERO Entertainment Marketing offers RE/MAX opportunities for valuable exposure by providing branded props and accessories to movie and TV crews for use in television and film productions. RE/MAX signs, magnets, coffee mugs and notepads have appeared in movies such as the indie film “Ping Pong Playa,” “Lakeview Terrace” and “The Tooth Fairy.”

This month’s ads
In addition to a cameo in “Sex and the City 2,” RE/MAX TV ads dominate the airwaves through June, targeting the real estate demographic on cable channels HGTV and DIY. Commercials will appear during popular shows such as “Kitchen Impossible,” “Desperate Landscapes” and “My House is Worth What?”

They also will air during rebroadcasts of your favorite prime-time shows and on Spanish-language television.

This year’s RE/MAX television ads highlight the challenges – and opportunities – facing consumers today. The new commercials, which feature RE/MAX CEO Margaret Kelly, are viewable on the REMAX YouTube channel.

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by Scott Matthias, CRS, CDPE

Despite guidelines from the federal government to streamline short sales and improved fraud prevention, home sellers experiencing financial distress continue to be discouraged with the often confusing short sale process. Realtors® at the Midyear Legislative Meetings & Trade Expo learned how to better educate and advise sellers to overcome the hurdles of a short sale.

“As the leading advocate for homeownership, the National Association of Realtors® believes education on short sales is imperative in today’s market to Realtors® and their clients,” said Colorado Association of REALTORS® Treasurer Scott Matthias.  “Streamlining short sales is essential to real estate recovery, but buyers and sellers alike continue to be frustrated with the inefficient short sale process. NAR and its members are helping to reshape the real estate industry by supporting a short sale uniform process with standard forms and deadlines, as well as increased protection against predatory scams.”

“There is so much information online relating to short sales, but at the same time, there is so much misinformation out there,” said CAR Treasurer Matthias. “As a Realtor®, it is imperative to provide sellers with accurate advice and make sure they understand the entire process as well as the legal ramifications.”

Realtors® Help Counsel Distressed Sellers Through Short Sale Process.  Scott Matthias earned his Certified Distressed Property Expert (CDPE) certification earlier this year and stressed the importance of sellers receiving legal advice when working with a lender during a short sale. By educating themselves, Realtors® can reduce liability and make sure the short sale transaction is the best option for their client, Matthias said.

NAR has several resources for its members relating to short sales, including a Short Sales and Foreclosures Resources Certification Program. Resources and handouts for buyers and sellers involved in a short sale transaction are available on NAR’s website. NAR also provides additional information and guidelines on the Home Affordable Foreclosure Alternatives Program, a recent federal government program intended to streamline the short sale process and provide incentives for homeowners and servicers.  The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

For more information on Distressed Properties contact:

Scott Matthias

RE/MAX Professionals

scott@coloradorealestate.com

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