Your Springs Agent ~ Melissa Kellerman

Locks, Lighting and Alarms; Protecting Your Home

2012-02-19T22:33:00.002-07:00

COLORADO SPRINGS, CO, Feb 19, 2012—Your home is your most valued investment. It’s meant to keep you—and your family—comfortable and safe, and it protects you from the elements. But what is protecting your home? When it comes down to it, the security of a home lies on the shoulders of the homeowner. While 911 is the standard go-to response in home emergencies, you can't count on the police for round-the-clock protection.

“While the local police may be the first to reach the scene of the crime, and perhaps they will be able to catch the perpetrator, they can’t keep the crime from happening,” says Joe Clement, Broker/Owner of RE/MAX Properties, Inc.. So what can you do? You can protect yourself. Luckily, technology has made that task a bit less daunting.

Locks
Burglars enter through an unlocked door or window in approximately 30 percent of robberies. Before you even start thinking about an alarm system, make sure your doors lock efficiently. All exterior doors should have keyed passage locks as well as deadbolts. “All windows, garage doors, Bilco doors and sliding doors should have sturdy locks as well,” Clement recommends.

Lighting
Lighting is the next item on the list. Burglars attack under the cover of darkness where they can hide. They won’t want to break into a well-lit home where any neighbor or passerby might spot them. Motion-detecting spotlights are particularly effective because they surprise the thief and scare them off.

Home Alarm Services

Alarm services are essential. “Many homeowners shy away from them because they think they’re expensive or unnecessary. But anyone who has had their home broken into knows that any precaution taken is well worth it in the end,” says Clement.

Not only do these systems scare off the bad guys and tip off the authorities, but they can also deter break-ins before the burglar has even entered the home. Alarm companies will provide you with a sign to post outside your home, so that all prospective burglars know you’re protected.

Here is a run down of a handful of the best security systems out there, according to Clement.

Brinks Home Security – This company is rated a Consumers Digest best buy. They have low basic prices, although their premium cost is a bit on the pricier end. One of their touted features is a simple one button turn-on, instead of requiring a sequence of button presses.

ADT Security Services – ADT offers a key chain that lets the homeowner arm and disarm the system from anywhere in the home. “This is helpful if your child or spouse accidently sets off the alarm coming in; you don’t have to scramble to the panel with an obnoxious noise blaring in your ear,” says Clement. Their prices are extremely affordable.

GE Security – GE is another home security standard. They offer basic home security systems, as well as protection products for multi-unit dwellings and offices.

Guardian Protection Services – Guardian’s main advantage is that they integrate burglary protection, fire protection, and personal emergency protection, as opposed to offering them separately like most of the other companies. Their prices vary regionally.

“Once you have chosen and installed a home security system, don’t forget to use it,” Clement reminds us. Consumer Reports found that 43 percent of people with home security systems fail to consistently use their systems when they leave home. “Turn it on whether you’re heading out to do errands for a few hours, or going on vacation for a few weeks,” Clement says. “Keeping your home safe should be a top priority, and knowing it’s protected will help you relax when you’re out, regardless of where you’re going or how long you’ll be away.”

Colorado Springs Named #2 in Safest Cities

2012-02-09T10:26:00.002-07:00

Study: Colorado Springs is second safest city in U.S.

A study by InsuranceProviders.com lists Colorado Springs as the second safest city in the U.S., based on crime rates, natural disaster risk and span of time between car accidents per capita. Arizona and Colorado account for five of the 10 safest cities.

The study looked at information based on three safety factors: crime rate, risk of natural disaster, and driving safety. Crime statistics were compiled from the FBI's Uniform Crime Statistics based on violent crime incidents per 100,000 people. Information from the United States Geological Survey and the National Oceanic and Atmospheric Administration was used to determine how likely a city was to experience a natural disaster such as an earthquake, hurricane or flood. Driving data from Allstate was used to determine the safest cities in which to drive based on the average number of years between accidents by drivers in each city.

As expected, being located away from coastal areas made a city safer, mostly due to the lower risk of hurricanes and earthquakes. Crime rates, on the other hand, had relatively little influence on a city's safety rating. While a high crime rate certainly knocked down a city’s safety rating, even cities with the highest crime rates compensated by having low rates of natural disasters and car accidents.

Joel Ohman of InsuranceProviders.com emphasizes that the concept of safety cannot be based on only one factor.

"To determine the safety of a city, it is important to account for a variety of factors," he said. "A city with extremely safe drivers but a high crime rate, for example, may rank lower in overall safety than cities with lower crime rates and less-safe drivers."

Arizona had the most cities on the top 10 list, with Phoenix, Tucson and Mesa ranked seventh, third, and first, respectively. Aurora came in at No. 9.

Report for this study

Colorado foreclosures fall to lowest levels since 2006

2012-02-09T08:46:00.003-07:00

Denver Business Journal by Mark Harden, New Media Editor

Colorado foreclosures in 2011 reached their lowest level since 2006, the state Division of Housing reported Wednesday.

New foreclosure filings in Colorado, which may or may not lead to the auction of a home, last year totaled 31,914, down 25 percent from 2010 levels. Meanwhile, foreclosure sales at auction totaled 19,622 in 2011, down 17 percent.

Both totals were the lowest statewide since 2006, the report said.

Last year’s Colorado foreclosure filings were down 31 percent from 2009’s peak of 46,394, while foreclosure sales declined 21 percent from the 2007 peak of 25,054.

In 2011’s fourth quarter alone, new filings declined 20.5 percent, to 8,540, from the fourth quarter of 2010, Foreclosure auction sales also fell between the two periods, by 13.5 percent, to 4,057, the state report said.

Sequentially, foreclosure filings rose 6.4 percent between the third and fourth quarters of 2011, while foreclosure auction sales fell 12.3 percent.

“Foreclosures really slowed down during 2011, but not all of that was due to improvements in the real estate markets. Many lenders slowed down the processing of foreclosures during the first half of 2011 to deal with legal issues,” Ryan McMaken, spokesman for the Division of Housing, said in the new report.

“Nevertheless, we do know that mortgage delinquencies are down and that home prices are stabilizing, so that also helped to push down foreclosure totals,” McMaken added.

> Click here to download the 2011 Division of Housing statewide foreclosure report.

The new report covers the entire state of Colorado. A separate monthly report series covers only the state’s 12 largest urban counties.

The most recent urban counties report, covering November 2011, said the 12 counties saw a year-over-year rise in foreclosure sales at auction for the first time in 14 months, but foreclosures for the first 11 months of 2011 were still well below 2010 levels.

Foreclosure filings are the first stage in the foreclosure process, which can either lead to a foreclosure sale of a property several months later or a homeowner avoiding a sale by paying off overdue amounts on a mortgage or settling with a lender.

Foreclosure sales figures include properties that revert to the lender as well as sales to a third party.

The state foreclosure data are mostly for homes, but include a small number of commercial properties and vacant land.

4 tax breaks for homeowners

2012-02-07T06:14:00.000-07:00

Buying a home complicates your tax return but may provide savings. Mortgage interest, points and PMI are deductible, and you may get tax-free profits when you sell.

By MSN Money partner

There are two things you can count on when you become a homeowner: You get more tax breaks, and your taxes get more complicated. Whether you’ve purchased a single-family home, townhouse or condominium, tax breaks are available to you.

It’s time to get familiar with Form 1040 and Schedule A, because that’s where you will have to provide all the details about your new tax-deductible expenses.

To take advantage of these tax breaks, you have to itemize your deductions. If this is the best choice for you, here some of the expenses you can deduct:

Mortgage interest. Owning a home allows you to deduct the interest you pay for your mortgage. This is usually the biggest tax break for most people, because a significant amount of your house payment goes toward interest during the early years of a mortgage. You can deduct all the interest you pay unless your loan is for more than $1 million. This includes any interest you pay on a loan to buy your home and, with some limitations, the interest on a home equity line of credit or home equity loan.

There are two conditions you must meet to get this deduction. You must file Form 1040 and itemize deductions on that form's Schedule A. The mortgage is a secured debt on a qualified home in which you have an ownership interest.

Points. When you finance a home, you may pay what are called "points." Points lower the interest rate on your mortgage by effectively prepaying a portion of the interest at closing. Points are paid by the borrower to the lender as part of the loan deal, and they are a percentage of the loan. Points may also be called loan origination fees, maximum loan charges, loan discount or discount points.

Points are deductible as interest, but you generally can’t deduct the full amount in the year they were paid unless you meet certain requirements. If you aren’t eligible to deduct your points the first year, you can deduct them over the life of the mortgage. To determine if you are eligible, reference the exact guidelines provided by the Internal Revenue Service.

PMI premiums on certain mortgages. If you make a down payment of less than 20%, you are required to carry private mortgage insurance, or PMI. This type of insurance is paid for by the buyer but protects the lender in case the borrower stops paying on the loan. PMI premiums can be deducted if the mortgage was issued after 2006. This deduction is effective for premiums paid through 2011. There are no limits on the amount of PMI premiums you can deduct, but your income may reduce the deduction amount.

Tax savings on the gain when you sell. This one seems almost too good to be true. When you sell your home, the amount of your gain from the sale is tax-free if you meet the criteria. If you are married, you can earn up to $500,000 on the sale, and you won’t have to pay tax on the earnings. If you are single, you can earn up to $250,000 without paying any federal tax. There’s only one catch: You have to own and occupy your home for at least two of the past five years.

10 Tips for Homebuyers

2012-01-27T08:28:00.003-07:00

Making the decision to buy a new home is a life-altering event…in a good way. But the process can be daunting. Take the following advice from CNNMoney into consideration before heading out on your home-buying journey.

Don't buy if you can't stay put. Given today’s challenging marketplace, don’t buy a home unless you can commit to staying there for at least a few years. The days of flipping for profit are long gone and you stand to lose money if you sell too soon after buying.
Shore up your credit. Securing a mortgage in today’s market requires excellent credit so take the time to clean up your credit report well before you begin looking for a home.
Be honest about what you can really afford. The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But CNNMoney recommends using one of the many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.
If you can't put down the usual 20 percent, you may still qualify for a loan. There are a variety of public and private lenders who, if you qualify, can provide options in terms of interest rates and down payments.
Schools affect home values. Even if children aren’t a part of your life now or in the near future, look at homes in areas supported by a good school system. Good schools are paramount for many homebuyers and have a direct impact on the value of your home.
Work with a real estate professional. Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Today’s market requires expert guidance through every stage of the home-buying process. That's why you need me, Melissa Kellerman.
Choose carefully between points and rate. When picking a mortgage, you usually have the option of paying additional points - a portion of the interest that you pay at closing - in exchange for a lower interest rate. If you stay in the house for a long time - say three to five years or more - it's usually a better deal to take the points, says CNNMoney. The lower interest rate will save you more in the long run.
Get pre-approved. This will help you avoid the emotional rollercoaster of falling in love with houses you can’t afford. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.
Make an educated bid. Work with your real estate professional to make the right opening bid. Bids should be based on the sales trend of similar homes in the neighborhood, so review with your agent sales of similar homes in the last three months.
Hire a home inspector. In addition to the appraiser your lender hires, you should also hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.

Source: Money.cnn.com.

Win at the Credit Scoring Game

2012-01-26T15:47:00.002-07:00

Win at the Credit Scoring Game

by Carla Fried with CNN Money

Toget the best deal on a loan, you need some new strategies to bump up your score- and keep it there.

Borrowing money today requiresimpressing an increasingly hard-to-please crowd. With creditors of all kindsmore cautious than ever, you need an A+ application to land the best terms --and that means an A+ credit score, the number lenders use to judge your risk ofdefault.

The most commonly used creditscoring system, called FICO, rates people from a very risky 300 to a pristine850. And right now we're in the middle of a credit score crunch: "You needa 750 or better today to have the same treatment you got with a 700 two yearsago," says John Ulzheimer, president of consumer education at Credit.com.

John D'Onofrio, CEO ofAutoloandaily.com, seconds that: "Two years ago a 680 was enough to get agreat car loan rate. Today it's often the minimum to qualify at all."

Think you're still in the clear?Don't be so sure. Lenders have been making changes that could cause your scoreto slip from excellent to average. Improve and protect your number with thesestrategies:

LearnYour Score. You have three FICO scores, based onyour credit reports at the three credit bureaus: Experian, Equifax, andTransUnion. The numbers tend to be in the same ballpark, so pony up $16 to getone representative score at myfico.com. You can get an estimate free at Creditkarma.com. But the FICO score gives you a better sense of whatlenders see.

Scoutfor Mistakes. Your scores are only as good as theinformation they're based on. And a third of people who've pulled their reportshave found errors, according to a Zogby poll. That's good reason to read yourreport.

When you buy your FICO score, you'llget a copy of the report it was based on. Get gratis histories from the otherbureaus via annualcreditreport.com(you're entitled to one free from each bureau every 12 months).

Spot an error? Request a correction,following the instructions on the bureau's website. Let's say the size of acredit line was misstated or an account was mistakenly marked delinquent.Getting the error fixed could raise your score as much as 200 points, saysUlzheimer, who has also worked for Equifax and FICO.

Never,Ever Be Late. As you'll see in the pie chart onthe right, the biggest chunk of your credit score comes from your paymenthistory. Just one late payment can shave 100 points off a 750-plus creditscore, says Ulzheimer. Lenders can't tattle on you to the bureaus until you're30 days past due, adds credit expert Gerri Detweiler. But don't risk it. Forall your bills, enter recurring due-date reminders on your computer calendar.

Missed a payment? Get back on trackwithin the next 30 days, and you should "get back the lion's share"of points lost, Ulzheimer says. More than 90 days late? The damage can stickfor years. If it was a one-off lapse, call your issuer and plea for a good-willadjustment to your credit report. (It's a long shot.)

Rememberthe Magic 20%. The second-biggest factor in yourscore is how much you owe vs. how much credit has been extended to you. Thepart of this that's easiest to finesse is your credit card utilization rate, oryour total card balances compared with your total credit limits, as well aseach card's balance relative to its limit.

Example: If you've charged $5,000 oncards and have $50,000 in credit, your rate is 10%. For the best score today,10% is ideal, but you can probably creep up to 20% and keep a high rating.

Unfortunately, with banks loweringcredit limits and canceling unused cards, it's harder to maintain such a lowpercentage. In the previous example, if your available credit is cut to$20,000, your rate shoots to 25%. That could sink your score by as much as 50points, says Ulzheimer. The lesson: Know your limits, watch for changes, andstay under 20% on each card and in total (0% if you'll be applying for a loansoon).

Already above 20%? Paying down debtis the obvious way to lower your utilization rate, but another strategy is toapply for an additional credit card to increase your overall credit limit. Thatmay cause you to lose a few points in the short term -- so don't do it ifyou're about to apply for a mortgage -- but it should pay off in the long run.

KeepOldest Cards in Play. As noted,credit issuers these days are eagerly canceling cards that are not in use.Besides reducing your limit and increasing your utilization ratio, having anaccount closed can hurt you in another way, especially if it's among your olderones.

See, 15% of your score rides on thelength of your credit history. The longer you ably manage revolving debt, thebetter you look. So don't cancel your oldest cards. And don't let them getcanceled on you: Move a recurring charge to each so they stay active.

Already ditched or been ditched? Anew card (see previous) can help with your utilization rate, but there's littleyou can do to help the "history" component of your score, except tokeep other old accounts in use.

AcceptFate on the Rest. There are other factors involved inyour score, but they're not so easy to manipulate. For example, 10% is based onhow well you manage a mix of credit types, such as mortgages, car loans, andcredit cards. But you don't want to go out and, say, finance a car just for ascore boost; besides, you can easily get 750-plus with just a few well-tendedcredit cards.

Along the same lines, 10% is basedon "new credit," but the effects of a new application can be positiveor negative, depending on your history.

In other words, if you want to beamong the crème de la credit crème, accept what you can't change, and focus onwhat you can.

New Hope for Refinancing?

2012-01-26T08:40:00.001-07:00

During his State of the Union address on Jan. 24, President Barack Obama called on Congress to approve new legislation that would give all homeowners who are current on their mortgages the opportunity to refinance at record low mortgage rates.

According to a follow-up article by Nick Timiraos in The Wall Street Journal (WSJ), administration officials declined to immediately outline specifics of how the program would work, stating that details would be forthcoming as the legislation emerges in the coming days. In theory, however, the new legislation is intended to give responsible homeowners a chance to refinance without “red tape” or a “runaround from the bank,” as the President said in his speech.

The existing refinance program, which was unveiled in 2009, limited opportunities to borrowers with mortgages backed by Fannie Mae and Freddie Mac. This newest proposal would remove such limitations.

As Timiraos explains in his WSJ piece, while mortgages have fallen to their lowest recorded levels, many borrowers haven't been able to qualify because they owe more than their homes are worth, while others feel that refinancing isn't worth the upfront costs. According to CoreLogic, an estimated 28 million homeowners could cut the interest rates on their loans by more than one percentage point if they could refinance.

Some are speculating that the new refinance legislation would involve the Federal Housing Administration (FHA). FHA, Fannie Mae and Freddie Mac are already responsible for backing nearly nine in 10 new loans, reports the WSJ.

Refinancing has been particularly limited in five states that have seen the biggest home-price declines: Arizona, California, Florida, Michigan and Nevada. In those states, some 6.4 percent of borrowers with credit scores between 680 and 719 refinanced in 2010, compared with 9.7 percent of borrowers in the remaining 45 states, according to Federal Reserve data.

To read the complete Wall Street Journal article, visit online.wsj.com.

My QSC Rating

2012-01-25T09:30:00.001-07:00

What Is The Good Neighbor Next Door Program?

2012-01-24T12:28:00.000-07:00

What Is The Good Neighbor

Next Door (GNND) Program?

The GNND Program is a way to encourage renewal of revitalization areas by providing law enforcement officers, firefighters, emergency medical technicians and teachers an opportunity to purchase homes in these communities at a discount of fifty percent off the list price of the home.

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What Is Considered A "Revitalization Area"?

Revitalization Areas are HUD-designated geographic areas authorized by Congress under provisions of the National Housing Act. Revitalization Areas are intended to promote "the revitalization, through expanded homeownership opportunities, of revitalization areas."

The criteria for designating an area as a Revitalization Area relate to:

Household Income,
Homeownership Rate, and
FHA-insured mortgage foreclosure activity.

To see areas designated as Revitalization Areas check out HUD's Single Family Home Locator map.

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How Do You Qualifications For

The GNND Program?

You can only participate as one of the following:

As a law enforcement officer if you are employed full-time by a law enforcement agency of the federal government, a state, a unit of general local government, or an Indian tribal government; and, in carrying out such full-time employment, you are sworn to uphold, and make arrests for violations of, federal, state, tribal, county, township, or municipal laws.

As a teacher if you are employed as a full-time teacher by a state-accredited public school or private school that provides direct services to students in grades pre-kindergarten through 12. In addition, the public or private school where you are employed as a teacher must serve students from the area where the home you are purchasing is located in the normal course of business.

As a firefighter/emergency medical technician if you are employed full-time as a firefighter or emergency medical technician by a fire department or emergency medical services responder unit of the federal government, a state, unit of general local government, or an Indian tribal government serving the area where the home is located.

Your bid must be for the full list price.

You must live in the home for three years.

You must sign a second mortgage and note for the discount amount. No interest or payments are required on this "silent second" provided that you fulfill the three-year occupancy requirement.

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How Do I Find Properties Eligible For

The GNND Program?

Go to HUDHomestore.com and click the link titled "Good Neighbor Next Door" then click on the state you are looking in to see all the GNND eligible homes in that state. Or enter the specifications you are looking for in the Search Properties box.

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How Does The GNND Program Work?

Eligible Single Family homes located in revitalization areas are listed exclusively for sale through the GNND Program. These homes are only available for purchase through the program for five days.

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What If More Than One Person

Bids On A GNND Home?

If more than one person submits a bid on a home a selection will be made by random lottery.

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3 Home-Renovation Projects for Impact and Investment

2012-01-24T12:09:00.001-07:00

If you’re like many homeowners, the start of the new year finds you ready to finally tackle those home-improvement projects that have lingered on your wish list. But where do you begin?

First, prioritize those renovations that will have a maximum impact, both in terms of aesthetics and investment values. Also prioritize the projects that will enhance the livability and enjoyment of your home.

Next, decide whether or not it makes sense to handle these projects on your own or call in a professional for help. According to the experts at Sears Home Services, while taking on home remodeling yourself can seem daunting , enlisting the right help can make the process simple and seamless.

Here are three areas of the home to put at the top of your list this year:

The Bathroom
According to the National Association of REALTORS®, one of the best investments in a home is a bathroom renovation. Remodeling a bathroom that's more than 25 years old substantially increases the value of your home. While your bathroom may not need a complete makeover, updating cabinets, lighting, tiling or countertops can go a long way toward improving design and functionality. Or, consider a few quick fixes, such as a new towel bar, shower-curtain rod, robe hooks or showerhead.

The Kitchen
The kitchen is the heart of the home. And kitchen renovations don't need to be dramatic to be impactful—updates such as new countertops, cabinets, appliances or flooring can all dramatically improve the kitchen. These improvements can also help yield increased functionality and space throughout the kitchen. For a simple refresh, homeowners can give their kitchen a new look by replacing the hardware on cabinets, painting or updating fixtures.

The Floors
A great way to upgrade an area of your home and pull a room together is to install new floors. There are myriad options to choose from: carpeting, tile, laminate, porcelain or ceramic tile, vinyl or hardwood. Consult a home-improvement retailer or flooring expert to help make the best choice and to ensure proper installation.

Check out this Fabulous Home!

2012-01-21T11:12:00.000-07:00

5468 Plumstead Dr, Colorado Springs, CO | Powered by Postlets

Tips for Preventing Frozen Pipes

2012-01-20T20:08:00.002-07:00

On average, an approximate one-quarter-million homes and offices have at least one room damaged by a frozen pipe per year. In order to ensure your home stays safe and your pipes don’t freeze, the Federal Alliance for Safe Homes (FLASH)® suggests three easy-to-remember steps: Foam, dome and drip.

Foam: Insulate pipes exposed to the elements or cold drafts. For as little as $1 per 6’ of insulation, you can stop pipes from freezing and save energy. By keeping your water warmer, you reduce the amount of energy needed to heat water in the cold, winter months.

Dome: Place an insulating dome or other coverings on outdoor faucets and spigots to reduce the likelihood of water pipes freezing, expanding and causing a costly leak.

Drip: Allow a slow drip from your faucets to reduce the buildup of pressure in the pipes. Even if the pipes freeze, the released pressure in the water system will reduce the likelihood of a rupture. If you are going out of town and suspect the temperature will drop, turn off the water and open all of the taps to drain the water system. This way pipes won’t freeze and you won’t return home to a mess.

Your local home improvement store will have all of the tools and expertise you will need to complete these steps. Foam, dome and drip your way to a safe winter season free of costly home repairs.

For more information, visit www.greatwinterweatherparty.org.

De-Icing the Driveway Video

2012-01-20T08:09:00.001-07:00

<a href='http://realestate.msn.com/video/video.aspx?videoId=ed4778c5-7b87-2288-88d0-9ed77c7dee74&from=&src=v5:embed::' target='_new' title='2-Minute Fix-It - Fall: De-Icing' >Video: 2-Minute Fix-It - Fall: De-Icing</a>

2012 Housing Message Video

2012-01-19T14:46:00.000-07:00

Housing Market to Perk up in 2012

2012-01-19T13:27:00.003-07:00

Housing Market to Perk up in 2012- GREAT NEWS!!!!!!!!!!!

There appears to be signs of life out there for the housing market.

The up-and-down ride for real estate the past few years was seen again in the fourth quarter of 2011, according to a survey of HouseHunt real estate agents across the country. There are pockets of good news offset by bad, with home values and prices basically bumping along the bottom of the grid on a perceived never-ending rocky road.

But most of the surveyed agents are optimistic moving forward, and the majority say that buyers are out there and activity is up, but pricing remains stagnant, and in some cases inched downward a little more throughout the year.

"I've been just as productive now as I was in the heyday of real estate except that the prices are 50 percent less," said Chris Cochran, a broker-owner from Riverside, Calif. "It's good news for buyers and bad news for sellers because sellers are losing equity by the minute and buyers are able to get a fairly-priced home and a really, really low interest rate."

Cochran said that the inventory in his region of Southern California is crowded with short sales, which fuels a buyer's market mentality. He added that prices were flat during 2010 and the first three quarters of 2011 before edging down late in the year. A breakdown of listings, he said, were 65 percent short sales, 10 percent REOs and the rest investor-owned "flips."

Looking forward, he thinks the housing inventory will increase and prices will again drop slightly before stabilizing in the middle of 2012 with a slight uptick in the final few months.

"The banks that have this so-called ‘shadow inventory' just need to put it on the market and get rid of it," Cochran said when asked how he would get real estate rolling again. "Once we get rid of all that inventory, supply and demand will take over and prices will go back up."

Decreased prices haven't been a big problem recently in the Naples area of Florida, said agent Dawn Amato, whose territory is Marco Island. She said that homes that were previously reduced by around $50,000 are now reduced "by a couple thousand, if that."

"We're not getting near as many reductions as we did in the past," Amato said. "It's been turning around steadily over the past year. The office I just left sold over $200 million in 2011. That's just one office. People feel the bottom of the market is here, so they're buying, and eager to do so."

Amato, who said she's "openly optimistic" about 2012 and beyond, said a tight inventory of available houses is the main problem in her area. That scenario leads to faster sales and even prompted some 'price wars' the final two months of 2011.

"If it's on the water with a view and it's priced right, it could be sold in days," Amato said. "Same scenario, but priced too high, maybe a few weeks."

Overall, 22 percent of HouseHunt agents said the average time for houses on the market was 60 days or less, down from 26 percent in the previous quarter. Regarding inventory, figures were identical in the third and fourth quarters, with 68 percent saying supply was good and 32 percent reporting a tight market. The only significant difference from the third quarter to the fourth was 42 percent saying they were getting at least 95 percent of a listing's asking price, compared to 51 percent previously.

On the Boise outskirts of Meridian, Idaho, agent Jeff Stewart said inventory and foreclosures have been declining for a number of quarters, with short sales diminishing toward the end of 2011. Prices are basically stable, he said, and the average time houses are staying on the market has decreased "from eight to nine months of inventory" to a little less than three months.

"The market is actually better of late," Stewart said. "We actually have a shortage of good properties. I think people are confident that we’ve hit bottom. In fact, in some of the areas I cover, prices are ticking up a bit, and I think it bodes well for a slow curve of stabilization."

An upward trend also was reported by agent Kevin Bergin, who works in the Long Beach Island, N.J., shore area. Bergin said levels in his office for the year were back to 2008 levels, with 60 percent of house visits turning into sales.

"I think buyers generally feel better about the economy, the low interest rates and prices being down 15-20 percent," he said. "People are still very discouraged about the government on both sides of the aisle, but they feel that now is a good time to buy a second home."

Of Bergin’s clients, 10 percent were first-time buyers and 25 percent were buying a primary residence. The assessed value vs. the asking price remains an issue, he said, but "most of the people looking now aren’t the same tire-kickers as there were two years ago when they were just asking for ridiculous prices."

Overall, prices in his area are down 7 percent from 2010, Bergin said, but he’s optimistic about 2012.

"If the current trends and the way people are thinking continue and interest rates stay low, which they probably will, it’s going to be a pretty good year," Bergin said.

Optimism also is what Wanda Hardee is clinging to as the new year begins. The agent who works in the Anderson, S.C., area said she had two "big closings" in December to ring out 2011 on a high note. But while she said that "things are picking up here," Hardee added that it’s hard to get sellers to price their homes correctly because of increased competition from foreclosed properties.

"Foreclosures are still pretty prevalent here and we’re starting to see more and more in the higher-priced end," Hardee said, adding that another obstacle to home sales has been the difficulty of some people being able to secure financing.

Still, she said she loves the business and only knows one way to tackle it.

"We’re going gung ho," Hardee said. "With real estate, just like anything else, you have to have a positive attitude. We’re going to make it work."

Additional results from HouseHunt’s fourth quarter survey include:
• Sixty-five percent reported that they were getting multiple offers, the same figure as the previous quarter.
• Twenty-nine percent said customers were first-time buyers, up slightly from 27 percent in the previous quarter.
• Fifty-one percent reported a negative price appreciation, compared to 58 percent in the third quarter and 64 percent in the second.

For more information, visit www.househunt.com.

Twice as Many Housing Markets Seeing Positive Recovery - Colorado Springs

2012-01-19T13:23:00.000-07:00

Twice as Many Housing Markets Seeing Positive Recovery

Mon, 2012-01-09 17:24 — NationalMortgag...

The number of housing markets showing measurable improvement nearly doubled in January with the addition of 40 new metros to the latest National Association of Home Builders/First American Improving Markets Index (IMI). The IMI now boasts 76 improving markets, up from 41 in December, with 31 states and the District of Columbia represented by at least one entry. The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. New entrants to the list in January include the following (listed alphabetically by state):

►Florence, Ala.
►Tuscaloosa, Ala.
►Fayetteville, Ark.
►Denver, Colo.
►Greeley, Colo.
►Bridgeport, Conn.
►New Haven, Conn.
►Cape Coral, Fla.
►Jacksonville, Fla.
►Punta Gorda, Fla.
►Honolulu, Hawaii
►Ames, Iowa
►Des Moines, Iowa
►Dubuque, Iowa
►Elkhart, Ind.
►Indianapolis, Ind.
►Lafayette, Ind.
►Lake Charles, La.
►Worcester, Mass.
►Grand Rapids, Mich.
►Lansing, Mich.
►Monroe, Mich.
►Minneapolis, Minn.
►Columbia, Mo.
►Joplin, Mo.
►Fargo, N.D.
►Manchester, N.H.
►Cincinnati, Ohio
►Oklahoma City, Okla.
►Tulsa, Okla.
►Corvallis, Ore.
►Erie, Pa.
►Philadelphia
►Chattanooga, Tenn.
►Clarksville, Tenn.
►Nashville, Tenn.
►College Station, Texas
►Dallas
►Victoria, Texas
►Madison, Wisc.

"The fact that the list of improving housing markets nearly doubled this month shows that a significant, positive trend is developing, and is even more relevant when you consider the expanding geographic distribution of the list—which now includes 31 states and the District of Columbia," noted NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. "This trend could be even stronger if not for the numerous impediments that continue to slow a housing and economic recovery, including overly restrictive lending policies and the growing inventory of distressed properties in certain markets."

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac, and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metropolitan area must see improvement in all three areas for at least six months following their respective troughs before being included on the improving markets list.

"The substantial gain in the number of improving housing markets in January shows that more consumers are looking favorably at a home purchase in light of today's historically low interest rates and attractive prices, particularly in areas where job growth has picked up," said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company.

Only five metropolitan areas dropped from the NAHB/First American Improving Markets Index in January. These included Anchorage, Alaska; Fort Wayne, Ind.; Canton, Ohio; Scranton, Pa.; and Charleston, W. Va.

Avoid Money Pit Homes on Your Next House Hunt

2012-01-18T16:10:00.001-07:00

Homebuyers should pay close attention and avoidmoney pit houses as the rules of navigating local real estate continue tochange. These rapidly changing rules are happening in every area of the homebuying process. Some of these rules have to do with the condition of the homesthemselves. Bank owned properties and short sale homes tend not to be in thebest shape and could have hidden conditions. New requirements for homeownersinsurance policies have made changes on roof and sinkhole coverage limitations.Changes to Federal government regulations for banks and lending requirementsmake navigating an FHA loan quite tricky.

According to REALTOR® Ginny Zukowski, the “money pit” can not only be a homethat has hidden repair costs, but homeowners insurance policies may require therepairs to be made before they will write a policy. Also, banks are notaccepting all appraisals and often require a second and sometimes thirdappraisal before they will provide a loan. This can lead to a lower price thanthe original appraised amount and less than the contract price.

To help potential homebuyers, Zukowski reveals the following tips:

Tip 1: Be prepared for the new changes and have open communication with thereal estate agent and lender. Try to meet with them together and find out allof the upfront cash that will be needed to purchase the home. Buyers will needto pay for all inspections, appraisal, good faith money, and provide a downpayment. With new private mortgage insurance, this could be several thousanddollars.

Tip 2: Once the buying process starts, be prepared for the closing to take sometime. If it is a short sale, this could be four-to-five months. The loanprocess is also taking longer, around 45 days on the average, and additionaldelays often occur.

Tip 3: Be on the lookout for properties that will soon need a new roof or A/C.Home insurance policies can require new ones before they issue a policy and themortgage lender requires homeowners insurance. This can cost the buyers moreupfront dollars.

Tip 4: Before putting in an offer, ask the REALTOR® to explain all the possiblethings that could require more time and money at or before closing. As anexample, the bank may require additional appraisals. A bank-approved appraisermay be required.

Tip 5: Be sure the REALTOR® goes over all of the fine print before an offer issubmitted. Be aware of all the possible things that could go wrong and how itcould impact the buying process up front.

With a real estate professional to help both buyers and sellers navigate theprocess, you can be know what to expect in the home buying process...and whatto avoid.

Source: GoToRealty.net

Homeowners Unaware of Costly Repair Responsibility

2012-01-17T14:47:00.001-07:00

A recent national survey conducted by GfK Roper Custom Research finds that less than 50 percent of homeowners surveyed know that they are responsible for repairs to the water line on their property. Further, the report goes on to state that one-third of all homeowners responding actually assume that their local utility is responsible for the cost of a burst water line between their house and the street, when this is usually not the case.

"One of the challenges of homeownership is that the potential for expensive repairs is always out there," says Tom Rusin, chief executive officer of HomeServe USA. "The fact that homeowners don't know about their responsibilities in these situations serves to make unexpected and expensive repairs harder to handle."

To protect yourself in the case of an unexpected emergency, homeowners can be prepared with a service repair plan that helps cover the cost of expensive water service line repairs. Typically the homeowner is responsible for the water service line from the curb or well casing all the way to the home, connecting to the water heater, sinks, showers and more. Temperature changes, shifting soil or the age of the line can all cause the line to become damaged. Many times this results in a loss of water pressure or a loss of water altogether. In other instances, the effects will not be noticed until there is a spike in the water bill due to an underground leak. Repairing a water service line can cost more than $2,000.

A well-protecting plan provides consumers thousands of dollars in coverage for a low monthly fee and will dispatch a contractor to make any necessary repairs should a problem arise.

For more information, visit www.homeserveusa.com.

Education Fair!

2012-01-12T23:52:00.001-07:00

January 28, 2012 - 10 a.m. - 3 p.m.
Freedom Financial Services Expo Center || 3650 N. Nevada

Get smart at the PikesPeakParent Education Fair! PikesPeakParent.com in conjunction with Colorado League of Charter Schools & District 49 invites you to attend. From public schools to charter academies, you’ll get face-to-face with over 40 of the region’s top choices in education. Find the best educational fit for your family in time for Spring 2012 enrollment!

Enter to win a $500 cash prize!

FREE event and FREE parking available
Plus, education-related businesses and organizations such as The Fine Arts Center, SpringsMilitaryLife.com and the Cheyenne Mountain Zoo
Daycare provided by Rocky Mountain Montessori. Licensed providors will be on site running activities in a secured atmosphere

Public Schools
Home School Academy
District 11
District 20
District 38
District 49

Charter Schools
Atlas Prep
CIVA
Colorado Connections Academy
Colorado League of Charter Schools
CS Charter Academy
James Irwin Charter Schools
K12, Inc.
Life Skills Center of Colorado Springs
The Vanguard School

Other Education & Businesses
After School University
Champions
Cheyenne Mountain Zoo
Colorado Springs Christian School
Exceptional Dentistry
Fine Art Center
Peak Aviation
Pikes Peak Library District
Soccer Buddies

2011's Foreclosure Rate Lowest Since Recession Began

2012-01-12T15:57:00.001-07:00

2011's foreclosure rate lowest since recession began

January 12, 2012 7:56 AM

THE ASSOCIATED PRESS

IN THE SPRINGS:

The number of homeowners who fell into foreclosure in Colorado Springs and surrounding El Paso County fell sharply in 2011, though foreclosure activity remained historically high. According to a report on foreclosures released early this month by the El Paso County Public Trustee’s Office, foreclosure filings — the start of the legal process in Colorado that can lead to the loss of a home or other property — totaled 3,603 in 2011, a 25.4 percent decline from the previous year. Last year’s foreclosure filings were the fewest since 3,556 in 2007.

THE GAZETTE

NEW YORK — About 1.9 million homes entered the foreclosure process in 2011, the lowest level since 2007 when the recession began, according to a report Thursday by the foreclosure listing firm RealtyTrac.

The firm cautioned that the decline does not necessarily indicate that the housing market is getting better, as many foreclosures have been delayed due to confusion over documentation and legal issues involved in the process.

There have also been problems with the way some lenders were handling foreclosures. Specifically, signing off on home foreclosures without first verifying documents — a practice referred to as "robo-signing." Many of the nation's largest banks reacted by temporarily ceasing all foreclosures, re-filing previously filed foreclosure cases and revisiting pending cases to prevent errors.

"Foreclosures were in full delay mode in 2011, resulting in a dramatic drop in foreclosure activity for the year," RealtyTrac CEO Brandon Moore said in a statement.

The listing firm anticipates that 2012's foreclosure rate will be higher than last year's, but will remain below the peak of 2010.

High unemployment, a sluggish housing market and falling home values remain major factors in homeowners falling behind on their mortgage payments. Many borrowers also have simply stopped paying their mortgage because they owe more on the mortgage than the home is worth.

RealtyTrac said that 2011's foreclosure activity is 34 percent lower than 2010 and the lowest since 2007. The Great Recession began in December 2007 and ended in June 2009.

In 2011, Nevada, Arizona and California were among those with the most foreclosures. Other states among those with the highest foreclosure rates for the year were Georgia, Michigan, Florida, Illinois, Colorado and Idaho.

The company said that December's foreclosure filings on 205,024 homes were the lowest monthly total since November 2007. The figure was also 20 percent below the prior-year period's results.

In the fourth quarter, there were foreclosure filings for 586,133 homes in the U.S., down 27 percent from a year earlier.

Amazing Video about HUD buying process

2012-01-11T13:26:00.002-07:00

Video for HUD process

2011 Stats Are Out

2012-01-11T10:29:00.002-07:00

Question: In 2011 what went up in Colorado Springs?

a) hot air balloons at the Balloon Glow during Labor Day weekend

b) Air Force Thunderbirds performing an AFA air show

c) home sales in the Pikes Peak region

d) all of the above

If you guessed (d) then you are correct! That's right...2011 year-to-date home sales in our area surpassed total home sales in 2010 by 3.3% I know it's a small climb, but at least we are headed in the right direction!

In 2011 we saw 8,459 single family home sales here. Our average sales price dropped slightly by 4.9% this year. BUT...here's the biggest change of all: ACTIVE LISTINGS (meaning existing homes for sale) DROPPED BY 24% THIS YEAR. Whoa! Okay, let's summarize.

Sales are going up. Inventory is going down. Supply and demand are trading places. What will that do the market this year? Hmmm, I'm thinking prices are going to start going up again. It will most likely be a gradual increase in price, and I'll bet the lower price ranges will see the most rapid improvement. But I predict that 2012 will be an exciting year for real estate here!

by Nicole Happel
photo by By Beverly & Pack

Home price index holding on in Colorado Springs

2012-01-09T10:52:00.001-07:00

Home price index holding on in Colorado Springs

From Colorado Springs Business Journal

Home prices in Colorado Springs are stronger than the national average, according to data released today from real estate analytics firm CoreLogic.

Excluding the sales of distressed properties in short-sale, foreclosure and similar circumstances, existing home sales prices in Colorado Springs rose 1.1 percent from November 2010 to November 2011. They rose 0.4 percent from October 2010 to October 2011.

Nationally, home sales prices, excluding distressed properties, dropped 0.6 percent from November 2010 to November 2011, according to CoreLogic data. That was an improvement over October figures when the home price index dropped 1.6 percent.

Including the sales of distressed properties, national figures were even worse with a 4.3 percent year-over-year decline.

Colorado Springs home sales prices, including distressed properties, declined only 0.2 percent year-over-year in November.

Including distressed sales, the five states with the highest appreciation were: Vermont (+4.3 percent), South Carolina (+2.8 percent), District of Columbia (+2.1 percent), Nebraska (+1.9 percent) and New York (+1.7 percent).

The five with the highest depreciation were: Nevada (-11.2 percent), Illinois (-9.7 percent), Minnesota (-7.8 percent), Georgia (-7.7 percent) and Ohio (-7.2 percent).

What's a Short Sale?

2012-01-07T09:41:00.001-07:00

I am a CDPE certified Realtor.

PPAR-PR Free Radon Awareness Seminar - Thursday, Jan 12 6pm-7:30pm - Get free radon test kit

2012-01-06T13:35:00.000-07:00

Inan effort to raise awareness and encourage people to check radon levels intheir homes, El Paso County Public Health has organized a free radon seminarfor the public. This Radon Awareness Seminar is free to the public and will beheld Thursday, Jan. 12 from 6 to 7:30 p.m. at the CitizensService Center located at 1675 W. Garden of the Gods Road, Colorado Springs,Colorado. People who attend the seminar will receive a voucher for a free radon test kit.

All homes regardless of construction type, such as slab ongrade, basement, or crawl space, or style, such as colonial, raised ranch, orcondominium can have elevated radon levels. During the years 2005-2010: 8,729El Paso County home radon test results were submitted to the ColoradoDepartment of Public Health and Environment. Of those, 4,050 (46 percent) homestested at four or more picocuries per liter (4pCi/L). Exposure to 4pCi/L ormore of radon is associated with high risk of lung cancer, according to theAmerican Lung Association. All homes should be tested for radon.

This event will offer a video presentation, “Radon: TheInvisible Killer,” and a question and answer session with a panel ofexperts.

Panelists will include:

Dr. James Burkhart, professor and chair of physics, and associate dean of theCollege of Letters, Arts and Sciences at University of Colorado at ColoradoSprings

Douglas Kladder, director of the Center for Environmental Research andTechnology

For more information call (719) 578-3199 or visit www.elpasocountyhealth.org.No registration is required.

Best Tips for Selling in a Softer Market

2012-01-05T22:53:00.001-07:00

Although selling in a recovering market can be a challenging task, there are still steps sellers can take to entice buyers to bite. If you've already followed the usual protocol for staging and curb appeal, try the following:

Get a professional opinion. Knowing what a professional appraiser deems your house to be worth will help you set realistic expectations for your sale. You can then compare your home to others in the same price range and discover what your property may be lacking. It will also give you a good idea of what kind of loans your buyers would need to get in order to purchase the home. At least this way, you can be confident that you are in the right ballpark on price.

A pre-inspection is a must. By getting a pre-inspection, you can find out if your home has any problem areas that need attention. This tells buyers that you care about the condition of the home and also that you have taken care of these potential issues. Don't be surprised if a buyer hires his or her own inspector, however. It's par for the course. However, with less red flags around, you have a better shot at nabbing an offer close to your asking price.

Throw in an added bonus, like a home warranty. Offering a home warranty with the sale may entice some buyers to make a bid on the house. This plan will provide assurance that if something goes wrong with any major appliance, the new buyer will not have to shell out loads of money to fix the problem.

Cover some post-moving expenses. Make the move easier for your potential buyers by offering to pay for some or all of the moving costs. Alternatively, hire a contractor to take care of the yard work or pool clean-up for the first summer. Covering some of these expenses may put you in the buyer's good graces and may just seal the deal.

By remaining flexible throughout the process, you can find the right buyer in any market who will be willing and able to make a deal that supports both of your interests.

Source: Bankrate

Fix That Foundation: Spending Some Now Can Save Thousands Later

2012-01-04T09:09:00.000-07:00

Most homeowners have a long list of things to get done around the house. However, very few are more important than making sure the residence foundation is in good shape and not threatened by issues that are easy to fix.

After the purchase of the house itself, one of the biggest expenses, especially in terms of out-of-pocket costs the homeowners may incur, is foundation repairs. Taking a pro-active approach to caring for the residence's foundation is economical, and the pay-off can be tremendous.

1. Homeowners should check the drainage around their residence by making sure gutters and spouts drain away from the foundation.

2. Plumbing leaks under the house foundation are not uncommon. The homeowner can have a plumbing pressure test done to make sure there are no leaks under the slab.

3. The ground moisture around the home's perimeter should remain as constant as possible. A periodical use of a sprinkler system and soaker hoses in the summer time is recommended, but can also be done in the winter time if the weather is dry.

If homeowners are pressed for time, they can contact any reputable foundation repair company to have an inspection conducted inside and outside the house. Most of the solutions are affordable and extremely important to the well-being of the structure.

Source: www.premierfoundationrepair.com

Colorado Springs Market Conditions

2012-01-03T23:44:00.002-07:00

By Rick Van Wieren

December home sales in Colorado Springs were UP 3.5% from December of 2011, at 651 homes sold.
Prices were still soft, with the average down 9.6% at $210,688, and the median (1/2 above, 1/2 below) down 6.8% at $185,000. The 90th percentile was $365,000.
The inventory of unsold homes dropped 25.5% to 3,225 homes, which is only a 5 month supply at the December sales rate, and thought by many to be a sign of a ‘normal’ real estate market, possibly even tipping toward a seller advantage.
This is the lowest number of active listings on the market in 10 years, since February of 2002.
The Selling Price to List Price Ratio was 97.5%, well in line with the longer term trends.
Sales for all of 2011 were up 3.3% over 2010.

The percentage of homes disclosed as distressed was 18.7%, or 122 homes. This particular figure is likely under-reported because of agents not wishing to disclose when a home is subject to short sale approval, in hopes of improving showing traffic. This is a jump from the prior couple of months, and may reflect the desire by banks to clear short sale and foreclosure property prior to year end.

Colorado Springs home buyers are continuing to take advantage of low interest rates, which in some cases are now below 4%. Low long term mortgage rates and higher rent prices are making the decision to buy rather than rent MUCH more attractive at this time.

For more details, see the Colorado Springs Homes Sales Trend Data

Pending Home Sales Rise Again

2011-12-30T16:17:00.001-07:00

Pending Home Sales Rise Again

DAILY REAL ESTATE NEWS | THURSDAY, DECEMBER 29, 2011

Pending home sales continued to gain in November and reached the highest level in 19 months, according to the National Association of REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, increased 7.3 percent to 100.1 in November from an upwardly revised 93.3 in October and is 5.9 percent above November 2010 when it stood at 94.5. The October upward revision resulted in a 10.4 percent monthly gain.

The last time the index was higher was in April 2010 when it reached 111.5 as buyers rushed to beat the deadline for the home buyer tax credit. The data reflects contracts but not closings.

Lawrence Yun, NAR chief economist, said the gains may result partially from delayed transactions. “Housing affordability conditions are at a record high and there is a pent-up demand from buyers who’ve been on the sidelines, but contract failures have been running unusually high,” he said. “Some of the increase in pending home sales appears to be from buyers recommitting after an initial contract ran into problems, often with the mortgage.

“November is doing reasonably well in comparison with the past year. The sustained rise in contract activity suggests that closed existing-home sales, which are the important final economic impact figures, should continue to improve in the months ahead,” Yun added.

Pending home sales are not affected by the recently published rebenchmarking of existing-home sales because the index uses a different methodology based directly on contract signings, and is adjusted for seasonality.

The PHSI in the Northeast rose 8.1 percent to 77.1 in November but is 0.3 percent below November 2010. In the Midwest the index increased 3.3 percent to 91.6 in November and is 9.5 percent above a year ago. Pending home sales in the South rose 4.3 percent in November to an index of 103.8 and remain 8.7 percent above November 2010. In the West the index surged 14.9 percent to 121.2 in November and is 2.9 percent higher than a year ago.

Source: NAR

Considering a Second Home? Make Sure Your Finances are Up to Snuff

2011-12-30T16:09:00.001-07:00

While the thought of a mountain cabin or a beachfront bungalow may seem like mere fantasy, according to Massachusetts-based mortgage executive, Chip Poli, with the proper research, your dream vacation home might actually be within reach. The first step, says Poli, is to start organizing your finances to make sure you can afford it without compromising the security of your other assets.

Poli offers the following five tips to help you assess whether or not you are ready to handle the financial investment of a second home:

1. Figure out what you can reasonably afford by looking closely at your income, savings, and spending habits. Future expenses need to be factored into your budget, such as the likelihood of replacing a car or adding to your family.

2. Check each of your three credit reports well before you start looking at houses or shopping for lenders. If your credit score needs improvement, contact a credit counseling agency or ask your mortgage company for advice.

3. Create a budget. A budget not only clarifies your current financial situation, but it also helps you identify places where you might cut back to save for a down payment.

4. Consider tax implications. Purchasing a second home has its benefits, but you should make sure you consider funds for property taxes on the second home as well as additional income tax if your home will be rented out. You should research the area's property taxes because some locations have significantly higher or lower property taxes.

5. Get some help. Seek the help of a professional real estate agent and mortgage professional. Today’s market is too unpredictable to go it alone.

Mortgage Rates Drop to Another 2011 Low

2011-12-25T00:55:00.001-07:00

Mortgage applications decreased 2.6 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending December 16, 2011.

The Market Composite Index, a measure of mortgage loan application volume, decreased 2.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2.8 percent compared with the previous week. The Refinance Index decreased 1.6 percent from the previous week. The seasonally adjusted Purchase Index decreased 4.9 percent from one week earlier. The unadjusted Purchase Index decreased 7.5 percent compared with the previous week and was 6.9 percent lower than the same week one year ago.

The four week moving average for the seasonally adjusted Market Index is up 0.26 percent. The four week moving average is down 1.53 percent for the seasonally adjusted Purchase Index, while this average is up 1.32 percent for the Refinance Index.

"Continued anxiety surrounding the fragile economic situation in Europe led interest rates lower last week. However, refinance applications fell slightly, and purchase applications dropped further as we head into the end of the year," said Michael Fratantoni, MBA's Vice President of Research and Economics. "Remarkably low rates are not enough, as many homeowners continue to hold back due to lack of equity in their properties, poor credit and a weak job market."

The refinance share of mortgage activity reached a high this year of 80.7 percent of total applications from 79.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to a low this year of 5.1 percent from 5.6 percent of total applications from the previous week.

The average loan size of all loans for home purchase in the US was $217,774 in November 2011, up from $213,430 in October 2011. The average loan size for a refinance increased from $217,153 in October to $220,523 in November. The average government purchase loan size declined from October to November, from $186,263 to $170,742. The largest purchase loans were made in the Pacific region at $308,307. The largest refinance loans were also made in the Pacific region at $304,509.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 4.08 percent, the lowest rate this year, from 4.12 percent, with points increasing to 0.49 from 0.45 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 4.44 percent, the lowest rate this year, from 4.47 percent, with points decreasing to 0.37 from 0.45 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.93 percent, the lowest rate this year, from 3.94 percent, with points decreasing to 0.63 from 0.68 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.39 percent, the lowest rate this year, from 3.44 percent, with points decreasing to 0.40 from 0.52 (including the origination fee) for 80 percent LTV loans. The effective rate also decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.90 percent, the lowest rate this year, from 2.93 percent, with points decreasing to 0.46 from 0.53 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week.

For more information, visit www.mortgagebankers.org.

More Housing Markets Show Improvement

2011-12-25T00:49:00.001-07:00

Steps to Take to Improve Your Credit Score

2011-12-22T12:19:00.001-07:00

Your credit score can affect many aspects ofyour life. The biggest, perhaps, is the ability to secure a mortgage should yoube in the market for a home. The better the score you have, the less your debtwill cost you in the long run. It's important to take control of your creditscore before beginning the buying process. If you want to boost your score,here are a few tips to get that number heading in the right direction.

If you don't know what your score is or you are worried it might have errors,don't hesitate to contactone of the three big credit bureaus and request a report. Eachbureau is required to give every requesting consumer one free report once ayear. Check your report for errors and get them corrected as soon as possible.Send the credit agency a certified letter explaining what is wrong and includeany documents that may support your claim. You don't want your score to sufferdue to inaccurate records.

If you have missed anypayments in the past, catch up as soon as you can. Within afew months, your score will improve if you get current and stay current. Thenegative weight on your score will lessen over time, erasing the negative marksfrom your record for good. Once you are current, do everything you can toensure that payments are on time.

Going forward, keepyour balances below your limit. Just because you have a certaincredit limit doesn't mean you have to use it all. The less available credit youuse, the better. Some credit card companies have been lowering credit amountswithout telling consumers. If this happens to you, it could negatively affectyour credit score because your utilization ratio will increase. The bureausrecommend using 33 percent below your available credit. Remember, a smallamount of debt on multiple cards is better than having just one or two cardswith a large bulk of debt. Spread out your spending, and keep those balanceslow.

Keep old accountsopen...even if you don't use them often. Part of your score isbased on how old your accounts are. Closing older accounts erases the credithistory that was accumulated through those accounts. To prevent a credit cardcompany from closing your account, use it every now and then to keep it active.Even miniscule charges will suffice and protect your account and history.

Don't be afraid to check your score as often as you want. You checking your ownscore is seen as a "soft inquiry" by the credit bureaus. By checkingoften and properly managing your debt, you can be well on your way to raisingyour credit score.

Source: WalletPop

Investment Tips for an Unpredictable Market

2011-12-20T09:18:00.001-07:00

The news media has made no secret of the factthat U.S. stock markets have been shaky for a while now and that continuedinstability is almost certainly in the cards. According to a recent Wall StreetJournal editorial, the “haphazard” nature of the stock market has made itdifficult for anyone but the savviest investors to truly generate profit.

However, becoming a smart investor is simpler than one might think, even intrying times. Dealing with a haphazard market is doable with a littleflexibility and an adapted investment strategy. Unpredictable markets don’t meanone should refrain from investing, but they do make calm, level-headed thinkingmore important than ever.

Keeping a cool head and remembering a long-term perspective are the foundationsfor these five tips.

1. Review the entire financial plan: Before investing, meet with a financialadvisor and take the big picture into consideration.

2. Diversify as much as possible: Volatile markets make it especially key tospread investments between stocks, bonds and cash investments.

3. Keep emotions out of it: Don’t allow frustration or anxiety to force unwisedecisions or intemperate investments.

4. Exercise self-discipline: Things like dollar-cost averaging can prove to beinvaluable tools for any investor.

5. Avoid market timing: This is going to be a big temptation during volatilemarkets, but it is ultimately a major risk that seldom pays off.

These tips are generally solid for any market condition, but this level-headedapproach is particularly integral during a shaky market or a tumultuouseconomy.

Source: Mitch Feinberg,Warren & Moore

Last Call for Energy Efficiency Homeowner Tax Credits

2011-12-15T10:57:00.000-07:00

The Alliance to Save Energy urges American consumers to give themselves the gift of energy efficiency this holiday season – and reap the benefits when they file their 2011 federal tax returns – by taking advantage of tax credits for energy efficiency home improvements. The tax credits of up to $500 are set to expire on December 31 and Congress may not renew them for 2012.

"The outlook for renewal of federal energy efficiency tax incentives is uncertain at best," stated Alliance President Kateri Callahan, "so we encourage homeowners to complete those upgrades before the ball drops in Times Square at midnight on New Year's Eve.

"Making efficiency improvements this year will lower home energy bills and improve home comfort for years to come, while also reducing 2011 federal income tax bills," Callahan added.

The specific home improvements that qualify for tax credits fall into a number of categories:

• Exterior windows, skylights and storm windows.
• Insulation, exterior doors, roofs, storm doors and products to seal air leaks such as caulking, weather stripping and foam sealants.
• Highly-efficient heating and cooling equipment, including central air conditioners, heat pumps, furnaces, boilers, water heaters and biomass (e.g. corn) stoves.

Each product category also must meet specific energy efficiency requirements, which are spelled out on the Alliance's tax credits web page.

Percentage and/or dollar limits on particular energy-efficient upgrades include:

• 10% of the cost of insulation and sealing materials, exterior doors and roofs.
• 10% of the cost, up to $200, of exterior windows or skylights.
• Up to $300 for electric heat-pump water heaters, electric heat pumps, central air conditioners, biomass stoves and natural gas, propane or oil water heaters.
• Up to $50 for advanced main-air circulating fans.
• Up to $150 for natural gas, propane or oil furnace or hot-water boilers.

For more information, visit http://ase.org/.

New-Home Sales Rise 1.3 Percent in October

2011-12-14T14:32:00.001-07:00

Sales of newly built, single-family homes inched up 1.3 percent to a seasonally adjusted annual rate of 307,000 units in October, according to newly released data from the U.S. Commerce Department. The gain is from a downwardly revised rate in the previous month, and marks the best pace of new-home sales activity since this May.

"Builders have been seeing some marginal improvement in sales activity over the past few months, particularly in select markets where consumer confidence is higher due to improved economic conditions," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "While this trend is encouraging, overall sales activity is still well below normal due to the effects of overly tight credit conditions for builders and buyers, the continued flow of distressed properties on the market, and inaccurate appraisal values on new homes."

"Today's report is right in line with our forecast for modest and gradual improvement in sales activity through the remainder of the year," said NAHB Chief Economist David Crowe. "Particularly encouraging is the fact that builders continue to hold down their inventories to match the current sales rate, with the number of new homes for sale now down to a sustainable, 6.3-month supply."

Regionally, new-home sales held unchanged in the Northeast and gained 22.2 percent in the Midwest and 14.9 percent in the West in October.

Meanwhile, the nationwide inventory of new homes for sale held at an all-time record low of just 162,000 units in October, which is a 6.3-month supply at the current sales pace.

For more information, visit www.nahb.org.

Colorado foreclosure filings down nearly 29% in 2011

2011-12-14T11:23:00.000-07:00

by KERRI PANCHUK

Foreclosure filings in Colorado fell 28.6% in the first 11 months of 2011 when compared to numbers from a year ago, according to a new report from the Colorado Division of Housing.

During that same time period, foreclosure auctions in the state fell 20.7%. New foreclosure filings fell from 2,932 filings in November 2010 to 2,296 filings this year.

"It looks like the big decreases in foreclosure filings that we saw during the first half of the year are behind us, but even with some recent increases in new foreclosure activity, Colorado is still going to end 2011 with far fewer foreclosures than it saw during 2010," said Ryan McMaken, a spokesman with the Colorado Division of Housing.

"From last fall through last summer, foreclosure activity was really pushed down by a lender-initiated slowdown in foreclosure processing, but the effects of that seem to be lessening now," McMaken said.

Foreclosure auction sales through November fell year-over-year from 18,727 in 2010 to 14,854 this year.

Meanwhile, foreclosure filings plummeted from 32,982 last year to 23,556 during the first eleven months of 2011.

Upbeat Job Market Expected for Colorado Springs, CO MSA | Manpower U.S. Pressroom

2011-12-13T11:24:00.000-07:00

Upbeat Job Market Expected for Colorado Springs, CO MSA | Manpower U.S. Pressroom

A Focus on Fixtures: Simple Upgrades Give Your Home a Modern Feel

2011-12-10T10:54:00.001-07:00

RISMEDIA

By Keith Loria

Getting your home ready to be put on the market can be a huge undertaking, however, upgrading your home’s fixtures is an easy way to give your home a new feel without spending a lot of time and money.

If you have old, outdated fixtures in your home—whether it’s lighting, faucets or doorknobs—it’s easy to find nice and affordable fixtures at your local home improvement store and do the upgrades yourself.

“There’s nothing that can brighten up a home and give it a more modern feel than new, updated fixtures,” said Margaret DeLorenzo, a lighting consultant with Lamps Plus. “It is a relatively easy and affordable task that can make a real difference in a buyer’s mind.”

A home stager can also recommend upgrades through a home consultation, explaining what fixtures will look best in your home as well as what today’s buyers are looking for.

“Homeowners should stay away from brass and lean more toward the stainless steel and chrome looks because brass fixtures seem very 1980s,” said New York-based home stager Cynthia Bryant. “A simple change like this can totally alter the look and feel of a room for a minimal investment.”

If you’re not sure where to start, a simple Web search will reveal thousands of impressive looking fixtures that are reasonably priced.

“If you have a living/dining room, make sure the upgraded fixtures mesh well,” Bryant said. “They don’t have to be the same fixture, but a silver fixture doesn’t go well with a dark bronze fixture.”

For the bedroom, new lighting can totally transform a walk-in closet. Since most builders typically install basic, flush mounted fixtures in closets, a simple upgrade can do wonders when it comes to adding more light. Contemporary track lighting systems are a great way to throw extra light into the furthest corners of your closet.

If you’re making changes in the bathroom, you should always try to make sure everything matches. In other words, if you are upgrading the faucets in the sink, you should complete the room with new faucets for the bathtub and shower.

When it comes to lighting, the rule of thumb is that more is almost always better. A dark home can look gloomy or uninviting and you want potential buyers to feel welcome.

If your home has a kitchen pantry, check to see if the lighting fixture is outdated, and update it if necessary so that you create a harmonious look throughout the home. Also, make sure all the bulbs in any under-cabinet lights are working. Now is also the perfect time to replace older florescent lights that “hum” when they are turned on.

DeLorenzo also suggests that light from an overhead fan doesn’t do a room justice and when rooms are dimly lit, it can leave a bad impression.

“I recommend using two or three lamps in a large room like a living room or master bedroom to provide optimal lighting,” she said. “Basic or outdated lighting can stick out like a sore thumb. Make sure to replace those old outdated lighting fixtures and make your whole home look more modern.”

Kitchen Upgrades to Give Your House an Advantage over the Competition

2011-12-10T10:47:00.001-07:00

RISMEDIA

By Keith Loria

Whether they are entertaining, creating new recipes or sharing culinary ideas with their spouses, today’s homeowners are spending more time in the kitchen than ever before. Not only can an updated, professional looking kitchen make food preparation easy and even enjoyable, spending some time and money in the kitchen before listing your home for sale is a great way to get buyers interested in your home.

The first step in making sure your kitchen is up to par is to upgrade to more durable products by adding stainless steel kitchen sinks, refrigerators and ovens. Not only does stainless steel resist scratches, it is also easy to maintain.

“Stainless steel, as it is a neutral color, is easy to match with just about any modern kitchen décor. These appliances usually come in a high-shine, mirror finish or a less bright, but still beautiful, brushed stainless steel finish,” said Lenore Anders, an associate for Kitchens of Colorado, a kitchen showroom. “Stainless steel can withstand very hot and very cold temperatures, making the material ideal for appliances. Unlike plastic or ceramic, stainless steel does not break easily, even if dropped. Stainless steel may dent, but it will not shatter or chip the way other materials will.”

Some home designers recommend wood cabinets as a way to contrast, complement and even add a warm, organic element to kitchens with stainless steel appliances. A nice backsplash can also do wonders.

For those looking for rich color along with durability, cast iron is a good alternative for sinks. If you have the room, you may want to think about adding additional sinks. Not only will multiple sinks simplify the cooking process, it also allows for better cleanup and organization.

Another great amenity for the kitchen is a pot filler, or an extendible faucet that can be installed next to your stovetop or prep sink for easy water access.

For the home chef who wants a professional place to cook, granite and quartz are the leading choices for countertops, especially for pastry chefs seeking an expansive workspace and a cool surface for rolling out dough.

If you’re looking to make food preparation even easier, moveable cutting boards, rinsing baskets and various trays and receptacles will help get the job done quickly and properly.

Whether you’re updating your kitchen for your enjoyment or to help your house stand out among the competition, these ideas can do wonders in opening up the eyes of a potential buyer.

Market Conditions for Colorado Springs Nov 2011

2011-12-09T00:05:00.001-07:00

November home sales in Colorado Springs were UP 19.2% from November of 2010, at 646 listings sold. Prices were still soft, with the average down 5.8% at $219,711.
The median (1/2 above, 1/2 below) down 6.6% at $185,000.
The 90th percentile was $380,000.
The inventory of unsold homes dropped 22.8% to 3,666 homes, which is under a 6 month supply at the November sales rate, and thought by many to be a sign of a ‘normal’ real estate market. This level has remained stable for several months now, indicating supply and demand are roughly in balance.
The Selling Price to List Price Ratio was 96.42%, a bit lower than the longer term trends.

The percentage of homes disclosed as distressed was 14.7%, or 95 homes. This particular figure is likely under-reported because of agents not wishing to disclose when a home is subject to short sale approval, in hopes of improving showing traffic, however this figure has steadily declined since January from a high of 27.2%, and is hovering near its lowest point since September of 2007.

These figures show buyers are taking advantage of low interest rates, which in come cases are now below 4%. Low long term mortgage rates and higher rent prices are making the decision to buy rather than rent more attractive at this time.

For more details, see the Colorado Springs Homes Sales Trend Data

Analysis by Rick Van Wieren

10 remodeling projects that pay back most

2011-12-02T16:17:00.001-07:00

Remodeling costs are plummeting, but so is the return on every dollar spent. Remodeling Magazine says these 10 projects have the highest return on investment, and they all focus on maintenance, replacements and enhancing curb appeal.

By Marilyn Lewis of MSN Real Estate

Here are Remodeling's top 10 projects. You'll notice that these are not ambitious, vanity jobs. All are projects that replace worn or aged home components, bring parts of the home up-to-date or add living space without expanding the home's footprint:

Replacing exterior siding with upscale fiber cement. Siding pays back a whopping 78%, on average, of the $13,461 average cost. The most cost-effective thing you can do to your home this year is to replace old siding with new, higher-end fiber cement.
Replacing an entry door with a midlevel 20-gauge steel door is an inexpensive upgrade at $1,238 on average, but it pays back 73% and greatly improves curb appeal.
A midrange attic bedroom remodel involves popping out a dormer for a 5-by-7-foot bathroom with shower, insulating and finishing the walls and ceiling, adding four windows, extending the heating and air conditioning and improving wiring and lighting. The payback is 72.5% on the $50,148 expenditure. More living space is being sought as adult children are driven back to their parents' homes by the shaky economy and as older parents join the households of their adult children. (The Census Bureau says 18% of American households aredoubled up now, up from 17% in 2008.) An attic remodel is the cheapest way to add space and a bathroom within the house. A basement remodel is the next most cost-efficient way to add living space, although code requirements for headroom and exterior doors make that project more complicated and more expensive, Alfano says.
A midrange minor kitchen remodel paid back 72.1% of the $19,588 investment. Included are new laminate countertops and new sink, faucets and appliances. The floor is untouched and cabinets are kept in place but refaced with new hardware added. "You're taking what's there and giving it a face lift," Alfano says. "The kitchen really looks good and the average cost for this is under $20,000 – less than what a lot of people would pay for a car." In today's austere climate, kitchen and bath remodels are pale imitations of the lavish vanity projects from the housing boom. Most consumers are shunning the expensive spa baths and chef's kitchens that involve moving electrical services, plumbing and walls.
A midrange garage door replacement may not be high on many wish lists; it's one of those jobs that you do because it's needed. But it adds curb appeal and function, and it pays back 71.9%, on average, of the $1,512 average cost.
A high-end garage door replacement recoups almost as much: 71.1% of the $2,994 average cost.
A new wood deck earns back 70.1%, on average, of its $10,350 cost at resale this year.
New foam-backed vinyl siding replacement keeps the house warm and pays back 69.6% of its $14,274 average cost. The average project involves 1,250 square feet of siding, including trim.
New midrange replacement vinyl siding upgrades the look of the home and pays back 69.5% of the $11,729 average price.
Upscale vinyl replacement windows have a 69.1% payback on the $14,328 cost. The project involves replacing 10 double-hung 3-by-5 windows. The new windows are low-emissivity glass and are insulated with simulated wood-grain trim.

For the entire article: http://realestate.msn.com/10-remodeling-projects-that-pay-back-most

Tax Advantages of Homeownership

2011-12-02T12:44:00.001-07:00

Although tax considerations probably aren't the motivating force behind most home purchases, the tax advantages associated with homeownership are significant enough that they may factor into the decision process. Here's a quick review of federal tax benefits available.

The mortgage interest deduction

If you itemize deductions on Schedule A of Form 1040, you're generally able to deduct the interest you pay on debt resulting from a loan used to buy, build, or improve your principal residence, provided that the loan is secured by your home (the ability to deduct mortgage interest also generally applies to second homes, though special rules apply if you rent the home out for part of the year). Interest you pay on up to $1 million in mortgage debt ($500,000 if you're married and file a separate federal income tax return) can qualify for the deduction (different rules may apply if you incurred the debt prior to October 14, 1987).

Interest on qualifying home equity debt (basically, debt on a loan secured by equity in your main or second home that is not used to buy, build, or improve your home) of up to $100,000 ($50,000 for married individuals filing separately) is generally deductible regardless of how the loan proceeds are used. Note, however, that if you're subject to the alternative minimum tax (AMT), the AMT calculation doesn't allow a deduction for interest on debt that's not used to buy, build, or improve your home.

Qualified mortgage insurance premium payments made prior to 2012 can be deducted in the same manner as qualified mortgage interest, provided the mortgage insurance contract is issued after 2006. The deduction is, however, phased out for those with adjusted gross incomes exceeding $100,000 ($50,000 for married couples filing separate federal income tax returns).

Deduction for real estate property taxes

If you itemize deductions, you can also generally deduct the real estate taxes that you pay on your property in the year that you pay them to the taxing authority. If you pay your real estate taxes through an escrow account, you can only deduct the real estate taxes actually paid by your lender from the escrow account during the year. For purposes of calculating the AMT, however, no deduction for state and local taxes, including any real estate tax, is allowed.

Mortgage interest deduction threatened?

Recent discussions relating to reducing the budget deficit have cast a spotlight on itemized deductions, including the mortgage interest deduction. Could the mortgage interest deduction ultimately be eliminated? That seems unlikely, but elimination or reduction of the deduction has remained part of the ongoing debate, and was included among the recommendations contained in the National Commission on Fiscal Responsibility and Reform's December 2010 report.

Energy tax credit

Though not as generous as it has been the last two years, a credit is available to individuals who make energy-efficient improvements to their homes. You may be entitled to a 10% credit for the purchase of qualified energy-efficient improvements, including a roof, windows, skylights, exterior doors, and insulation materials. Specific credit amounts may also be available for the purchase of specified energy-efficient property: $50 for an advanced main air circulating fan; $150 for a qualified furnace or hot water boiler; and $300 for other items, including qualified electric heat pump water heaters and central air conditioning units.

There's a lifetime credit cap of $500 ($200 for windows), however. So, if you've claimed the credit in the past--in one or more tax years after 2005--you're only entitled to the difference between the current cap and the total amount that you've claimed in the past. That includes any credit that you claimed in 2009 and 2010, when the aggregate limit on the credit was $1,500.

Capital gain exclusion

If you sell your principal residence at a gain, you may be able to exclude some or all of the gain from federal income tax. Generally speaking, capital gain (or loss) on the sale of your principal residence equals the sale price of the home less your adjusted basis in the property. Your adjusted basis is the cost of the property (i.e., what you paid for it), plus amounts paid for capital improvements, less any depreciation and casualty losses claimed for tax purposes.

If you meet all requirements, you can exclude from federal income tax up to $250,000 ($500,000 if you're married and file a joint federal income tax return) of any capital gain that results from the sale of your principal residence. In general, this exclusion can be used only once every two years. To qualify for the exclusion, you must have owned and used the home as your principal residence for a total of two out of the five years before the sale. If you fail the two-out-of-five-year test, you might still be able to exclude part of your gain if your home sale is due to a change in place of employment, health reasons, or certain other unforeseen circumstances.

It's important to note that special rules apply in a number of circumstances, including situations in which you maintained a home office for tax purposes or otherwise used your home for business purposes. Special rules may also apply if you are a member of the uniformed services.

According to the U.S. Census Bureau, the estimated homeownership rate in the United States at the end of 2010 was 66.5% (Source: U.S. Census Bureau, Housing and Household Economic Statistics Division).

Article from

It's Not Too Late to Beat Winter's Wrath

2011-12-01T15:31:00.001-07:00

Winter is almost here, but there is still time to protect homes and wallets from its harsh blow. Homeowners can use the time that remains in late fall to complete a critical weatherizing project: filling gaps and cracks with silicone caulk. It's an easy, quick, and affordable DIY project that can seal in valuable energy, trim heating bills, and save money for the long term.

According to EnergyStar, properly sealing and insulating can save more than $200 a year in heating and cooling costs, or up to 10% on total energy bills – a significant annual savings that many American families can appreciate during challenging economic times. Following are a few tips on how to master the caulk gun, an often underrated ally in the yearly tug of war to keep the thermostat low and the energy and cost savings high.

1. Find the Leaks –A critical first step is to find the hidden leaks that allow cold air to sneak inside.

• Leaks usually occur around the outside of a home and in non-regulated temperature areas like attics and basements that are exposed to harsh elements throughout the year.
• Obvious areas include the frames around windows and doors. Be sure to pay close attention to where the floor frame rests on the foundation on the inside of a house and where siding meets the corner boards on the exterior.

2. Choose the Right Caulk – Go beyond the advice to simply "caulk gaps and cracks." Not all caulks are created equal, and not all caulks provide long-lasting energy savings.

• Acrylic caulk is vulnerable to the very elements it is supposed to seal against, meaning it can break down over time allowing energy to escape. A silicone caulk, on the other hand, protects for the long haul.
• Leaks frequently occur in and around homes in places prone to extreme temperature fluctuations and heavy rain, snow, ice or wind. Impervious to these damaging conditions, silicone has excellent flexibility and is 100% waterproof.

3. Get to Work – Master the caulk gun to reap measurable energy savings. Work with caulk in above freezing temperatures and clear off snow or ice.

• Remove old caulk, dirt, and loose particles with a caulk-removing tool or wire brush. Make sure the surface is dry. Apply painter's tape to either side of the joint to create a straight edge.
• Cut nozzle to desired bead size. Pierce the inner seal with a stiff wire or other similar object. Insert the cartridge into the caulking gun. Hold the caulking gun at a 45-degree angle and seal around unsightly cracks or spaces inside and outside the home. Keep a steady, constant grip and try to get as long of a bead as possible; then repeat.
• Use a finger or a wet caulk-smoothing tool within two to five minutes of application. Remove painter's tape immediately after smoothing caulk. Wipe hands with a dry cloth before washing with soap and water. Use mineral spirits to clean up.

By taking the time to properly seal and caulk any air leaks in your home, you will be able to reap the benefits on your utility bills all winter long.

Source: www.momentive.com

Home-sale incentives help, but price is key

2011-11-29T10:06:00.001-07:00

Throwing in a car or boat along with the house may get buyers' attention, but it’s a competitive price that will sell.

By Michele Lerner of Bankrate.com

© Tetra Images/Getty Images

Home sellers in markets around the country these days are sometimes eager enough to get their property sold that they will offer buyers a BMW, a personal watercraft or even a pet to sweeten the deal. Real-estate agents say that while these enticements create buzz, buyers today are more attracted by the right asking price than a gimmick.

"We're in a price war and a beauty contest," says Tony Vehon, broker and owner of Weichert Realtors — Lake Realty in Gold Canyon, Ariz. "Every home has to be priced right and look perfect. After that, a special incentive might drive traffic, especially if you offer something that grabs attention, something a little beyond the norm."Home sellers in markets around the country these days are sometimes eager enough to get their property sold that they will offer buyers a BMW, a personal watercraft or even a pet to sweeten the deal. Real-estate agents say that while these enticements create buzz, buyers today are more attracted by the right asking price than a gimmick.

Over-the-top incentives
Vehon says one of his agents worked with a seller of a high-end house in a vacation-home area.

"The client decided to make the home move-in ready, selling it with brand-new furniture, linens and kitchen gadgets and even a car in the garage," Vehon says. "The house sold, but the people who bought it didn't actually want the car. They asked for a credit on the price instead."

Orhan Tolu, broker for Century 21 Realty Alliance in San Francisco and San Mateo, Calif., says that in high-end homes, buying new furniture for the listing or giving buyers a gift card for $2,000 or $3,000 at an interior design studio can attract attention.

"In order to create some news, the sellers sometimes throw in a Mercedes or a boat if the home sits on waterfront property," Tolu says.

Martha Thorn, a sales agent with The Thorn Collection at Coldwell Banker Residential Brokerage near Tampa, Fla., says sellers in her area have offered personal watercraft along with a property, and one offered a custom-made fishing cart to buyers.

"The house was a $4.9 million mansion on a bluff overlooking the water, and the homeowner had someone make an electric cart that looked a bit like a cross between a wheelbarrow and a lawn mower that made it easy to get fishing equipment from the house to the water," Thorn says.

Not all incentives go along with high-end property. Thorn says one seller included season tickets to the Tampa Bay Buccaneers' football games on a home priced at less than $200,000.

"The buyers were thrilled with the tickets, but that certainly wasn't the reason they bought the house," Thorn says. "The most important thing is always the price."

Linda O'Koniewski, broker/owner of Re/Max Heritage in Melrose, Mass., says she has heard of sellers offering a cat or a dog along with their home.

"The sellers see it as an enticement, but I've never actually seen someone successfully pass on their pet to a buyer," she says.

Seller incentives that work
O'Koniewski says that besides having a home priced to sell and perfectly staged, cash is usually the most effective seller incentive.

"An offer to pay condo fees for a year or so will definitely create some buzz, and at least get a buyer to take a second look at a property," O'Koniewski says.

Tolu says offering a bonus, such as an additional 1 percent or 2 percent commission, to real-estate agents will encourage them to show a property, which can help it stand out in a crowded market.

"Another option is for the sellers to offer their own financing," Tolu says. "Most sellers cannot offer this, but sometimes someone who is retiring and has a lot of equity in their home will be willing to offer financing because they get a decent return on their money."

Thorn says the seller incentives that work most are those that bring traffic to the home, even if the incentive is given to a charity rather than directly to the buyer.

"We've organized charity events at a home that's on the market, with the sellers donating money to the local charity and raising funds at the event," Thorn says. "The event gets people into the home, which increases the chance that someone will see it and want to buy it."

Price is key
O'Koniewski says sellers need to realize that, "no amount of marketing will make a dent if the price is not right. If you are not competitive on the price, you cannot sell your house."

Beyond price, O'Koniewski says sellers should have great photos online and a truthful description of the property.

Vehon says sellers should focus on identifying the appropriate price for their property first, and then work on curb appeal and staging.

"Sometimes clients won't even get out of the car if the house doesn't look good from the outside," Vehon says. "Buyers need a reason to take the next step and go inside the house."

Once inside, buyers expect to see a home in excellent condition that has been staged to show off its advantages, Vehon says.

"The most important thing to remember is that if a house is priced correctly, it can even get multiple offers," Thorn says.

Colorado Springs Ranked in Top 20 Best Educated

2011-11-28T15:55:00.001-07:00

MEN’S HEALTH MAGAZINE (Oct. 2011) evaluatedthe Top 100 Cities to see which are the “Best Educated”. They looked at high school graduation rate,school enrollment, education level of people over 25 and student loans foradult education. Here’s their results:

1. Madison, WI

2. Plano, TX

3. Raleigh, NC

4. Burlington, VT

5. Seattle, WA

6. San Diego, CA

7. Honolulu, HI

8. Fargo, ND

9. Portland, ME

10.Lincoln, NE

11.Boise, ID

12.Columbia, SC

13. Colorado Springs, CO.

50. Denver, CO.

70. Aurora, CO.

Happy Thanksgiving Everyone

2011-11-24T11:48:00.001-07:00

Advice on working with a Lender- Video

2011-11-23T11:17:00.001-07:00

Great video about Lending

Why 20% Downpayments Don't Always Make Sense (or Dollars)

2011-11-22T08:36:00.001-07:00

by Brien McMahon

RISMEDIA, Tuesday, November 22, 2011— Despite the “doom and gloom” in today’s headlines, in the current economic climate, homeownership is more affordable than ever, thanks to low interest rates and lower home values. For those buyers who manage to have a 20% (or more) downpayment, they believe this will get them the lowest monthly mortgage payment. However, simply because buyers can afford to put down this amount does not necessarily mean they should.

Those buyers who have saved enough to put 20%—or more—down on the purchase of a home may want to consider another approach—preserving some of their cash for savings, investing or other purposes. It may sound counterintuitive, but with today’s interest rates and the competitive pricing of private mortgage insurance (MI), borrowers can retain some of their money by putting less money down on a home—say only 10%—and still get a low monthly payment.

Real estate professionals have a responsibility to all home buyers to help them evaluate their purchasing power based on existing assets as well as future need. The right counsel can help home buyers leverage their current assets while keeping sufficient reserve for any immediate or future financial needs, not to mention all the trips to the local big box hardware store that seem to come standard for any new homeowner.

As a real estate professional, you are perfectly positioned to guide prospective home buyers throughout the transaction process. At the very beginning, it is imperative to look at the borrower’s overall financial picture—taking into consideration current cash flow, debt and all future financial obligations.

Help your borrower think beyond just their interest rate and downpayment, as these are not the only keys to securing the lowest possible mortgage payment. By having a general understanding of the current financing options, you can better understand what your buyer can responsibly afford, which, in some instances may be more than they think.

While you are not a financial advisor, by asking these types of insightful questions, you can help make sure your buyers better frame conversations with their loan officer, thus increasing the value you bring to the table and the likelihood of a positive outcome for all parties.

While in the past the adage was, “The more you borrow, the more you leverage,” in today’s financial times, the scenario is much different. Today, borrowers can leverage private MI to put as little as 5% down on a home and still have a competitive payment. And for those potential buyers who have stayed out of the market over worries of declining property values, they can still purchase a home without funneling all of their available cash into the downpayment. By utilizing this strategy, home buyers are able to leverage their current assets, while still keeping sufficient cash reserve.

So, while putting 20% down on a home doesn’t always make sense (or dollars), buying at a time of high affordability does. And by understanding the current financing options available to buyers, and helping them discuss what those options mean for their downpayment needs or monthly payments, you can help point them in the right direction with their loan officer, overcome their investment fears and make the sale, all while helping them achieve their goals.

5 things your first home must have

2011-11-21T18:06:00.001-07:00

You've decided it's the right time to buy. Here's what to look for in your starter house to make sure it's the right one and to maximize its resale value.

By Claes Bell of Bankrate.com

© Corbis

"We tell people right now that they should plan on staying in a home seven to 10 years," Shuman says.These days, the term "starter home" is a little misleading. It implies a temporary home soon to be traded in for a bigger, fancier model. But because there's no end in sight to the real-estate market's troubles, moving up to a new home won't be easy or quick, says Ken Shuman, spokesman for real-estate website Trulia.com.

What constitutes a good first home is more important now because first-time homebuyers have become a larger share of the market. In 2010, first-time buyers made up about 50% of the total homebuyers in the U.S. market, says Paul Bishop, vice president of research for the National Association of Realtors.

"Just on a dollars-and-cents basis, a lot of first-time buyers made the decision to stop renting and buy a home because it seemed to be the better financial decision," he says.

The expiration of the federal government's first-time-homebuyer tax credit last year may make the decision to buy a little tougher than it was in 2010. But if you decide the time is right, here are some key things to look for in your starter home to make it the right decision for your family and to maximize its resale value when it comes time to sell.

1. An affordable price
An affordable price on a first home is one of the biggest priorities for first-time homebuyers, and with good reason, Bishop says.

"Unlike a trade-up buyer, they don't have any equity to roll into the purchase of their next home, so coming up with a down payment and the financial aspects of buying a home is the first concern," he says.

Coming up with a firm price target for a first home and sticking to it is the key for first-time buyers, says Scott MacDonald, president of Re/Max Gateway in Chantilly, Va.

"Make sure the house is within your budget. A lot of people try to push it and go for the maximum dollar amount they qualify for, trying to keep up with the Joneses. Stay within a reasonable budget so that you don't overextend yourself and get yourself into trouble," MacDonald says.

High home affordability is making things easier on first-time buyers because so many markets have stagnated or declined in price in recent years, Bishop says. Also helping first-time homebuyers stay within their budget is the wide selection of housing options. The U.S. housing inventory is still larger than normal. As of March 2011, it would take more than eight months to work through.

2. A house for the next 10 years
Because you'll probably be there longer than you think, Shuman says your first home should be able to accommodate not only the family you have now but the one you plan to have over 10 years.

"Have that conversation. If you're just getting married, ask, 'Do we plan to have kids? How many kids do we plan to have? How many bedrooms are we going to need?'" he says. "The biggest bit of advice I can give for a starter home is to really think about what your future looks like."

Shuman says that because many first-time homebuyers do have growing families, space should be a higher priority than fancy features such as granite countertops.

"Because a starter home is usually a smaller home, in today's market especially you don't want to overpay for features and amenities, or remodels, that you're not going to be able to recoup later on," he says.

Quality of space is also important, MacDonald says. While you want to have at least two bedrooms, a lot of bedrooms aren't going to be much help if they're too small to be useful.

3. Location, location, location
Everyone's heard the old cliché "location, location, location," but what does it really mean for first-time homebuyers? Three years after the implosion of the housing market, the keyword is "stability," MacDonald says.

If you're looking at potential first homes in a housing development governed by a homeowners association, one way to assess a neighborhood's stability is to learn the number of delinquencies for HOA dues. A high rate of delinquencies can mean a neighborhood is headed for hard times, MacDonald says."Find a neighborhood that's stable -- where yards are maintained, where there's not a lot of 'for sale' signs, where there's not a lot of 'for rent' signs, where you have longer-term people living in that neighborhood -- because those are the ones that are going to get you the best return later," MacDonald says.

Beyond that, Bishop says first-time homebuyers should seek the same characteristics of a prime location that all homebuyers seek.

A neighborhood with well-maintained, attractive homes.
A location convenient to local amenities.
Proximity to work.
A quality school district, especially for first-time homebuyers who plan to have children.

4. A history of proper maintenance
Whether a first home has been properly maintained can have a huge effect on your housing costs in the future, MacDonald says.

MacDonald says a few key areas of the home can give you a general idea of whether the previous homeowner was diligent about maintenance. If you see these issues, consider looking elsewhere.

Rotten trim on the exterior.
Dirty air-return ducts or a dirty filter in the heating and air-conditioning system.
A crumbling roof or damaged gutters.

But while a spot check of these features can help you narrow down prospective first homes, a thorough inspection is essential before closing, Shuman says.

"It's pretty important that you have (an inspector) who you really trust -- who you know is going to do a thorough job, who's going to get up on the roof, who's going to run all the water, who's going to look at the electricity," Shuman says. "Do a very in-depth walk-through with them and understand exactly what you're buying."

5. Recent updates in key areas of the home
First-time homebuyers on a limited budget may not get a totally up-to-date home. If you have to choose, Shuman says, prioritize these updates:

Energy-efficient windows.
Updated electrical wiring with sufficient outlets.
A new roof.
A new water heater.

"When a lot of folks go into a starter home, they don't want to have to put a lot of money into it because they know it's not their home for life," Shuman says. "If you look at what the big budget items are that may come up during the next seven to 10 years and know that you're in good shape on some of those, that's definitely part of the checklist."

MacDonald says there are some rooms in a prospective first home where recent renovations help resale value the most. "Bathrooms and kitchens are the most important pieces of the puzzle when buying a house," he says. "If they have those renovated, or if the house is new or been updated by the previous owner, those are things that give it the most attraction when you go to sell your house later."

Getting a mortgage after foreclosure

2011-11-21T10:05:00.001-07:00

There are some additional hurdles for homeowners who have gone through a foreclosure, short sale or bankruptcy, but a little patience and some financial hard work will go a long way.

By Marcie Geffner of Bankrate.com

Still, it's not impossible to buy a home after financial difficulties, says Dan Keller, a mortgage banker with Hometown Lending in Everett, Wash. In fact, Keller says, people who have cleaned up their credit and are otherwise qualified to get a mortgage can buy a home as soon as they have outlasted a prescribed waiting period after the bankruptcy, foreclosure or short sale.Buying a home is a challenging goal for most hopeful homeowners. But for those who have experienced a bankruptcy, foreclosure or short sale, the hurdles are even higher.

Wait a while
The waiting period can last one to seven years, says Kirk Chivas, chief operating officer at First Commerce Financial in Wixom, Mich. The one-year requirement applies to buyers who complete a Chapter 13 bankruptcy, have a spotless subsequent credit history and want to get a new loan insured by the Federal Housing Administration or guaranteed by the U.S. Department of Veterans Affairs. The seven-year requirement applies to buyers who experienced a foreclosure and want to get a new conventional loan that can be sold to Fannie Mae or Freddie Mac.

In between are a number of two-, three- and four-year timelines based on similar criteria and other factors such as whether the buyer's previous mortgage was current at the time of a short sale or the size of the buyer's new down payment as a percentage of the home's purchase price.

Generally speaking, the waiting periods after a bankruptcy tend to be more black and white while the waits after a foreclosure or short sale have more gray areas, Keller says. And in some cases, a waiting period can be waived or shortened if the buyer's bankruptcy, foreclosure or short sale was due to extenuating circumstances or a hardship beyond his control.

Technically, it is possible for a buyer whose prior loan wasn't in default at the time of a short sale to get a new FHA-insured loan with no waiting period, Chivas says. But he adds that he's never encountered anyone in that situation.

Clean credit
Buyers must have very clean or perfect credit histories before they can buy homes after bankruptcy, foreclosure or short sale. A slip-up as small as one late credit card payment could disqualify a post-bankruptcy buyer from some loan programs, even if the waiting period has been completed, Keller says.

"Bankruptcy is a serious word," he says. "If you do it, it's a get-out-jail-free card. But once you get out of bankruptcy, you need to be flawless in your credit. Don't even drop a gum wrapper."

Credit dings can be difficult to sort out for buyers who experienced a loan modification or short sale, in part because, as Chivas says, there's "no consistency" in how lenders report those events to the credit bureaus. Buyers should review their credit reports and correct any errors or clarify the circumstances of adverse items.

Stable employment can be a plus, too, Keller says, noting that some loan programs are more lenient than others. "If there was a gap," he says, "it needs to be explained."

Consult a loan pro
Given these complexities, buyers are advised to consult a loan officer or mortgage broker early on for advice that applies to their situation.

"They may think they're fine, but if they're not talking to a professional, their hopes can get dashed or crushed," Chivas says. "That's why you want to speak to someone as soon as you start dreaming it up in your head" that you want to buy a home after a bankruptcy, foreclosure or short sale.

How to Buy Your Dream House by Age 25 - Video

2011-11-18T11:23:00.001-07:00

It is refreshing to see some young folks with their priorities straight and a good head on their shoulders. The Key is SAVING.

Great Promotional Video of Colorado Springs in the 1950's

2011-11-16T00:26:00.001-07:00

It's funny to see what has changed and what remains the same.

Tip 12 of 12 Easy DIY Fall Fix-Ups

2011-11-14T12:01:00.001-07:00

12. Quick Change: Flush the Water Heater

Sediment build-up displaces water and prevents the heater from operating at full capacity. By flushing the tank once a year, usually before winter, you won't be wasting cash by heating this gunk. Start by turning off the heater and letting the tank cool; then shut off the water supply. If gravity is on your side, connect a hose to the drain cock and run it to a floor drain. If you don't have a drain, send the water to a sink or bucket using a drill pump (a $15 attachment that will suction water out of the heater). Draining 3 gallons is usually enough, but you may have to fill and flush a few times until the water's clear.

Tip 11 of 12 Easy DIY Fall Fix-Ups

2011-11-14T11:58:00.001-07:00

11. Quick Change: Set, Then Forget, the Thermostat

It's human nature to fiddle with the temperature on an unusually hot or cold day. But overriding the pre-sets on a programmable thermostat wastes energy and reduces the technology to an old-school rotary dial. Achieve peak performance and save up to $180 a year in heating and cooling costs by keeping the temperature fixed for at least eight hours at a time, such as while you're asleep.

Tip 10 of 12 Easy DIY Fall Fix-Ups

2011-11-14T11:56:00.001-07:00

10. Quick Change: Screw in LED Exterior Bulbs

Shorter days mean you need outdoor lights to find your way without tripping. So take this opportunity to swap burned-out incandescents for LED bulbs, which screw right into your existing fixtures. For a bright beam that?s equal to a 75-watt incandescent, try Sylvania's Ultra High-Performance Series LED Narrow Flood, $50; Lowe's. While pricey, LEDs are more durable and use 75 percent less energy than incandescents. They can also last 22 years or more, so you ?may never have to climb a ladder to change a burned-out bulb again.

Tip 9 of 12 Easy DIY Fall Fix-Ups

2011-11-12T12:00:00.001-07:00

9. Lengthen Stubby Downspouts

WHY NOW:
Heavy winter rain can cause pooling near your home's foundation if your downspout kick-outs are too short. That water can then infiltrate the foundation and be wicked up the side of the house, wreaking havoc along the way in the form of mold, insects, or rot, says Roger Cook. Telltale signs may be a wet spot in your basement after a rain or widening cracks in the foundation.

HOW TO DO IT:
Attach a flexible downspout extender that's connected to a length of drainage pipe buried just below grade; the pipe should direct water at least 10 feet away from your home's foundation. Rather than sending that diverted water into a dry well or losing it to the storm drain, put it to work by attaching another length of perforated pipe, wrapped in landscape fabric, that'll disperse the water to feed your flower beds. To allow for proper drainage, lay the perforated pipe on a 3- to 6-inch bed of washed stone.

THE PAYOFF:
You're spared $10,000 to $30,000 to jack up the house and replace a rotted main beam, plus $1,000 to $3,000 to repair damaged joists.

Tip 8 of 12 Easy DIY Fall Fix-Ups

2011-11-12T11:58:00.001-07:00

8. Patch Cracks in the Driveway

WHY NOW:
Small fissures and holes in asphalt can quickly expand into large gaps and potholes if snow and ice get into them.

HOW TO DO IT:
Wait for a mild day; tar-like asphalt repair products work best when pliable. Clean out loose debris in the hole, and ensure the surface is dry. Using a caulk gun, inject a sealant (try Dupont 7906 Driveway & Repair Caulk, about $18 per four-pack) into the opening. Use a wood craft stick to tamp the sealant level.

THE PAYOFF:
Keeping on top of minor cracks can save you $3 to $6 per square foot to resurface the whole driveway.

Tip 7 of 12 Easy DIY Fall Fix-Ups

2011-11-12T11:57:00.001-07:00

7. Replace Damaged Asphalt Roof Shingles

WHY NOW:
Many leaks are caused by a broken shingle or a rusted nail that allowed a shingle to slip out of place. A drip now can become a flood later, and the last place you want to be on a frigid winter day is on the roof.

HOW TO DO IT:
Spot damage from the ground using binoculars, or get a closer look from a ladder at the eaves. On the roof, use a pry bar to loosen the shingles above the one that's broken. Then pry out the nails holding the damaged shingle to remove it. Slip in a new shingle that's the same width, and secure it with nails.

THE PAYOFF:
Catching a leak before it happens can save you $300 or more to repair a ceiling or wall and up to $6,000 for mold remediation.

Tip 6 of 12 Easy DIY Fall Fix-Ups

2011-11-11T10:13:00.001-07:00

6. Install a Solar Roof-Vent Fan

WHY NOW:
In winter, trapped heat can melt snow on the roof, which then refreezes, clogging gutters with ice. Water runoff from the roof gets trapped by the dam and eventually backs up the roof, travels under the shingles, and leaks into the house.

HOW TO DO IT:
"The trick is to keep the top and underside of the roof the same temperature," says Tom Silva. One way to do that in unfinished attics is with a solar roof-vent fan that draws in cold outside air through existing soffit or gable intakes and exhausts warm air that?s built up under the roof. Powered by the sun, the fan, which costs about $300, further saves you money in summer by cooling the attic so your air conditioner doesn't have to work as hard.

THE PAYOFF:
You're spared $5,000 to replace rotten roof framing, as well as ceiling and wall damage.

Tip 5 of 12 Easy DIY Fall Fix-Ups

2011-11-11T10:06:00.001-07:00

5. Remove Aggressive Vines

WHY NOW:
On brick or stone home facades, climbers with suckers, such as Virginia creeper, pull the lime out of the mortar, creating entry points for water. Vines also hold moisture against walls, which can wreak havoc on wood clapboards, slowing their ability to dry out after a rain and causing rot. If vines get between boards, they can push them apart.

HOW TO DO IT:
"Pull all the vines off, working from the top down; cut them at the base, and dig out the roots," says TOH landscape contractor Roger Cook. To remove any residue left behind on wood siding, do a quick pass with an orbital sander. Come spring, paint an herbicide on any new growth.

THE PAYOFF:
You'll avert having to spend up to $25 per square foot for professional mortar repointing. For wood houses, dodge up to $3,000 to re-side and rebuild a rotted clapboard wall.

Tip 4 of 12 Easy DIY Fall Fix-Ups

2011-11-11T10:05:00.001-07:00

4. Seal Exhaust Vents

WHY NOW:
Exterior vents, particularly those for a clothes dryer or a whole-house fan, allow heated air to seep out of your house, while letting cold outside air in.

HOW TO DO IT:
Swap your dryer's louvered or metal flapper-style vent for a Dryer Vent Seal (About $20;Battic Door), which consists of an elbow pipe topped with a plastic cap and shuttle. When the dryer is in use, the floating shuttle beneath the hood rises to let warm air, lint, and moisture escape. When not in use, the shuttle drops down to seal the hole and prevent drafts. For a whole-house fan, construct a simple box-shaped cover out of rigid foam insulation (use foil-type duct tape for the seams) to enclose the fan during cold months, when it's not in use. From inside the house, fit the cover over the fan, and secure it to the frame with adhesive-backed Velcro strips. Just remember to remove the cover before you switch on the fan come spring. This kind of DIY cover can also help insulate in-wall or window air-conditioning units that are left in year-round.

THE PAYOFF:
Vent sealing can prevent 4 percent of your home's heated air from escaping.

Strong demand fuels record high apartment rents

2011-11-10T16:31:00.001-07:00

RICH LADEN
THE GAZETTE

Colorado Springs-area apartment rents soared to a record high in the third quarter and are expected to continue climbing as demand for multi-family living remains strong.

The average monthly rent reached $778.35 for the three-month period ending Sept. 30 — nearly $50, or 6.7 percent, higher than a year ago at the same time, according to a report released Thursday by the Colorado Division of Housing and the Apartment Association of Southern Colorado.

The third-quarter rent hike was the biggest year-over-year increase in the Springs in the last decade, said Ron Throupe, an assistant business professor at the University of Denver and the report’s author. It also marked the seventh straight, year-over-year increase in quarterly rents. Year-over-year rents last fell in the fourth quarter of 2009

The biggest third-quarter rent increase came in apartments on the Springs’ southeast side — jumping $87 a month to an average $692.55 from the same period last year, the report showed.

Southeast side apartments typically have some of the lowest rents in the area, but landlords and property owners now are playing catch-up, in part to pay for maintenance they’ve been putting off for years, said Housing Division spokesman Ryan McMaken.

Rents are rising across the area as apartments are filling up; the local vacancy rate fell to 6.2 percent in the third quarter, down from 6.4 percent in the second quarter and 6.6 percent in the third quarter of 2010.

Vacancies have fallen as more troops have arrived at Fort Carson, the local population has increased, more people have moved to the Springs, the number of households is expanding and more jobs have been added, albeit at a slow pace, said Ken Greene of Apartment Realty Advisors in Denver, one of the report’s sponsors.

“Rents will continue to rise,” Greene said. And, he said, it’s possible vacancies will fall to 5 percent or below, which “will certainly spur more rent growth.”

The combination of rising rents and lower vacancies has triggered a wave of apartment construction planned for the Springs area; few new projects have been built in recent years, which also contributed to falling vacancies.

Two projects are under way in northern Colorado Springs and Monument, while Nor’wood Development Group of Colorado Springs has announced plans to build four apartment projects — one in Fountain south of town and three in the Springs with a California-based partner.

All told, those projects would add nearly 1,500 apartments in the Springs area, which currently has about 44,000 units.

The Springs market, which has been absorbing 700 to 800 apartments a year, should have no trouble filling those units, Greene said.

“That really is not enough to overwhelm the market, even in these tough times,” he said.

Tip 3 of 12 Easy DIY Fall Fix-Ups

2011-11-10T10:49:00.001-07:00

3. Button Up Interior Doors to the Basement and Garage

WHY NOW:
It's not just the front and back doors that you need to worry about. Cold air can also enter the house through gaps around any door leading to an uninsulated space, such as a garage or basement.

HOW TO DO IT:
Weatherstrip the top and sides, and add an inexpensive door sweep to the bottom. TOHgeneral contractor Tom Silva recommends a wood sweep that you can stain or paint to match your door and that has an attached nylon brush to follow the contours of irregular flooring or carpeting. Sweeps usually need to be cut to size, so be sure to measure the width of the door first. To insulate the top and lock-side jambs, use peel-and-stick high-density foam tape or nail-on vinyl gaskets. For the hinge-side jamb, a premium adhesive-backed strip made of EDPM rubber will retain its shape after years of use.

THE PAYOFF:
For $20 and 30 minutes of your time, reduce cold air infiltration by as much as 11 percent.

Illustration: Joe McKendry

Door Weatherstripping How-To

A. Apply peel-and-stick or nail-on strips to the door stops on the top and lock-side jambs.
B. Use a peel-and-stick rubber strip for the hinge-side jamb.
C. Secure a brushed sweep at the bottom of the door.

Tip 2 of 12 Easy DIY Fall Fix-Ups

2011-11-10T10:44:00.001-07:00

2. Add Storm Windows

WHY NOW:
Old single-pane windows leak copious amounts of air, which makes for chilly drafts come winter. By installing triple-track storms, you can dramatically reduce air infiltration and protect those lovely wavy-glass panes from the elements.

HOW TO DO IT:
Measure carefully to determine whether you can use standard-size storms or need to custom order. When you're ready to install, position the unit in the window opening to check fit. Clean the window's exterior frame and trim. Apply a bead of elastomeric caulk on the back of the storm's surrounding fins, at the top and sides. Do not caulk the bottom of the storm: Moisture needs to drain through the pre-drilled weep holes. Position the storm unit in the window frame, pushing up snug at the top, and secure with screws. Adjust the storm's built-in bottom extender bar to rest on the sill.

THE PAYOFF:
Storms cost a fraction of replacement windows, $60 to $110 compared with $300 to $700, and yield energy savings of 13 percent (21 percent with low-e storms).

Storm Window How-To

A. Caulk the storm's side and top fins, but not the bottom.
B. Insert the unit inside the window frame.
C. Secure the storm's fins to the frame by driving in screws around the unit's perimeter.
D. Tap down the storm's extender bar.

12 Easy DIY Fall Fix-Ups - Tip 1

2011-11-10T10:41:00.001-07:00

By: LAURA FISHER KAISER, This Old House magazine

Photo: Bruce Forster/Getty Images

1. Beef Up Insulation in an Unfinished Attic

WHY NOW:
Baby, it's cold outside—or it will be soon. "So pop your head up in the attic and check insulation levels," says Mike Rogers of GreenHomes America, which specializes in energy-efficient improvements. In addition to sealing gaps in the attic floor and framing, Rogers recommends upping insulation levels to R-49 or even as high as R-60 for most areas of the country.

HOW TO DO IT:
If insulation is level with or below the ceiling joists, add loose fiberglass or cellulose—even over existing batts—using a rented blower. Make sure the material is well distributed, with no low spots. "Even a small gap greatly undermines performance," Rogers says.

THE PAYOFF:
Up to 10 percent savings on your utility bills.

7 Tips for Fall Tree Maintenance

2011-11-10T10:28:00.001-07:00

Trees are often overlooked during the summer when it comes to watering. Yet, when trees go dormant for autumn and winter – meaning active root growth comes to a standstill – and deciduous trees lose their leaves, they make up for deficits and absorb as much water and nutrients as they can hold. Enter fall's first rains, windstorms and freezes, and homeowners are guaranteed a dose of trouble.

Homeowners are advised to follow seven guidelines this fall to avoid tree problems year round.

#1 Hydrate
Trees with deep root systems typically do not need extra water, while trees with shallow roots do. Your tree is thirsty if it is brown in places, or if some of its branches are dead or brittle. If needed, place mulch at the base of the tree to help the soil retain water.

#2 Plant for all seasons, and for your region
It is best to plant trees that thrive in your home city's weather. Young trees planted in locations subject to harsh weather should be staked until their root balls have grown strong enough to support them. Protect against nibbling animals by placing a small fence around the base. And be sure to check with local jurisdictions on permits needed or other restrictions.

#3 Remove troublemakers
If a tree is located next to a foundation, path or fence, or along an irrigation, sewer or utility line, fall is a good time to move it, or even remove it.

To remove a tree quickly, and effortlessly, a chainsaw can be used to cut the tree down piece by piece (consult an arborist for larger projects or when tree falling has the potential to harm property or people). For safety and efficiency, keep the chainsaw chain sharp.

#4 Prune
Fall is the time to prune most trees. With an expert's help or on your own, prune to open up the tree's crown and remove excess limbs and dead or weakened wood. Use your chainsaw to complete the job quicker.

#5 Remove fallen leaves
Remove fallen leaves to be certain that the base of your tree can "breathe," and to remove a haven for tree-damaging insects. This also assures that any plants below the tree get adequate water and light.

#6 Spray
If an insect is attacking a tree, fall is the best time to apply dormant spray on fruiting trees.

#7 Fertilize
Most trees don't require fertilizer although fruiting and flowering trees may benefit from it. Late fall is a good time to fertilize because winter rains will prevent chemical burn. Fertilize after the first frost to prevent new, tender growth from damage.

Requiring very little maintenance in the fall, trees provide strong focal points to landscapes. Deciduous trees present various colors and appearances throughout the year, and evergreens breathe life and color year-round. Take care of your trees and you will enjoy them for years to come.

Amazing New Listing in District 20!

2011-11-03T10:08:00.002-06:00

Check out my Newest Listing! Ranch Style with 2 Master Suites!

Common Home Defects All Buyers and Sellers Should Be Aware Of

2011-11-03T08:39:00.000-06:00

Home defects come in all shapes and sizes. From structural problems to air flow and ventilation issues, a lot of things can go wrong with your home. Whether you're buying or selling your home, or simply staying put, you should be aware of some of the common home defects that abound so you can fix them quickly and easily before they become catastrophes.

Poor Drainage
Poor drainage is the most common problem found by home inspectors. To improve your drainage, you may have to install a new system of eaves, troughs and downspouts to better aim water away from the house. Inadequate drainage can be a devastating defect. Water can damage basements, garages and crawl spaces, compromising the foundation of the home and creating mold. Taking care of this issue is of dire importance, and buyers should avoid purchasing homes that may have drainage problems.

Rotted Wood
Another important defect to watch out for is rotted wood, both inside and outside the home. Wood exposed to excess moisture is bound to rot. This can happen in bathrooms, on flooring or even in the kitchen. Find these problem areas in your home and protect them with a special paint or finish. Don't forget to check your deck and outside trim as well.

Bad Roofing
Always be attentive of a structure's roof. Damaged shingles or improperly installed flashing are severe warning signs that trouble lurks ahead. Check for leaky ceilings as a sign of a damaged roof. Repairing the roof is crucial in order to prevent further damage later. Although it may be an expensive repair, it's always best to take care of it before it affects other parts of the home.

Inadequate Ventilation
Without proper ventilation, a build-up of moisture can attack a home's interior walls and structural components. Ventilation fans are a good idea for bathrooms without windows, and opening all of the home's windows during bouts of good weather also helps keep the air moving. Doing so can help prevent drywall replacements or other more expensive structural replacements. Find out the best way to keep your house ventilated and keep that air flowing.

Poor Overall Maintenance
Has the house been properly maintained over the years? How confident are you in the previous owner's repair skills? Sometimes improper maintenance can affect many parts of the home, such as the plumbing and electrical systems. Scope out any makeshift repairs and have a professional take a look, if necessary. Faulty wiring jobs and plumbing situations are not cases to be taken lightly. If a house doesn't look well-kept, this may be reason enough to send buyers running.

With the proper maintenance, any home defect can be righted to ensure a safe living environment for any family.

For more information, visit http://www.elsahomeinspections.com and http://www.hometeaminspection.com/

3 Ways to Know You’re Getting a Great Deal on a Home

2011-11-02T15:03:00.000-06:00

By TARA-NICHOLLE NELSON |

PETER GRIDLEY / GETTY IMAGES

From Kim Kardashian’s wails that she lost a $75,000 earring in the ocean, to Real Housewives of Beverly Hills’ Dana Wilkey’s boasts that she dropped $25K on sunglasses, reality TV starlets seem to get a rush out of broadcasting how much they paid for their bling. In this way, they are contrarians — not their usual trendsetting selves — because bragging about how much we’ve saved on everything from our clothes to appliances to our phone services has become a new American pastime.

The bigger the purchase, the bigger the bargain potential — so when it comes to the biggest purchase of all, our homes, the deal potential is especially enticing. But home purchases are much more complex than everyday retail transactions, so it can be much tougher to know whether you’re actually getting a good deal on your home, or not.

Here are three steps to take to determine whether you’re getting a good deal on your home:

1. Check the comps. It’s impossible to truly know whether you’re getting a good price on your particular home without checking the “comps,” real estate shorthand for comparable sales. Most major real estate websites will surface recent sales prices of similar, nearby homes when you enter an address; buyer’s agents also often offer comparable sales data.

You know you’re getting a good deal for a home if you’re paying a price near or below the recent sales prices of the “comps.” But it’s important to make sure you’re comparing apples to apples when you compare your price to the comps:

look for ‘sold’ prices, not just list prices of comparable properties;
check to be sure you’re comparing your deal with similar transaction types — foreclosures to foreclosures, short sales to short sales, “regular” equity sales to the same; and
make sure that the “comps” are actually similar in terms of bedrooms, bathrooms, square footage, location and condition.

2. Check the list price-to-sale price ratio (LP:SP). One measure of a good deal is how much of a discount you were able to negotiate off the list price — especially relative what negotiating power is typical for buyers in your area. Your agent can help you calculate the typical LP:SP ratio for the comps. If you’re in a very depressed market, it’s normal to see an LP:SP ratio over 1 (meaning that homes sell for below their list price) and vice versa — in those rare seller’s markets that do still exist, it’s normal to see an LP:SP ratio below 1 (meaning that homes sell for more than their asking prices, on average).

To determine whether your deal is a good deal, do the math! Divide your home’s list price by the sale price, and see what ratio results. Ideally, your LP:SP ratio should be no lower than average; the higher it is, the more likely it is that you negotiated well.

3. Can you afford it? Ultimately, you can negotiate an amazing price and get all sorts of incentives thrown in, but if you are overextending yourself beyond the bounds of your personal budget, then even the best deal is just not a good deal. Some buyers have a tendency to start out with a conservative personal price limit that is lower than the max they are approved for, then to let their “top dollar” creep up throughout the house hunt.

The best way to prevent that is to (a) have clarity on the max housing costs your personal finances can bear before you start looking at homes, then (b) to double-check with your mortgage pro on what your down payment, monthly payment and closing costs will be before you submit an offer or agree to a price.