5280 Homes

It's heating up... Don't let your cooling costs get out of control

2011-06-03T11:12:00.000-07:00

The unofficial start to summer has come and gone and the weather is definitely getting warmer. As you start to turn on your a/c units or swamp coolers, make sure you do a few things.

1) If you are using a central a/c unit, spend the $100 and have it professionally cleaned and serviced. This act alone will likely save you more than $100 on your utility bill over the summer months.

2) If you are using a swamp cooler, have it professionally cleaned and serviced. Be sure to make sure your water connections are tight and leak free. Water leaks can get expensive in a hurry. It's easy to leak hundreds, if not thousands of gallons of waters if you don't check on a regular basis. On a roof mounted unit, you may not even notice because the water will go into your gutters and water the grass.

3) No matter what you are using, CHANGE YOUR FILTERS! On central a/c units, do it monthly. They are cheap. The dust clogs them up and makes the units work harder increasing your costs. On swamp coolers, check and clean the water filter monthly. Change the pads at the beginning of the summer. You may want to check and change them at the end of July or in early August as well.

4) Close the shades on the sunny side of your house. Pay particular attention to south and west facing windows.

5) Turn off the lights if you aren't in the room or don't really need them on. Lights give off heat and your cooling system is working against them. Turning out the lights is particularly important if you are using Halogen or incandescent bulbs. You may want to consider switching to CFL bulbs where ever possible. They produce about 70% less heat than incandscent bulbs AND they are much more energy efficient.

There are lots of things you can do to help reduce your energy bills. These are just a few simple ideas to get you started.

Fun short sale story

2011-05-25T12:50:00.000-07:00

I had a very interesting phone conversation about a short sale property this morning. I want to be clear this is not my listing or my buyer for the property being referenced. The buyer did contact me and wanted to discuss the situation as they wanted an outside opinion. Please keep in mind this is NOT legal advise and to verify the accuracy of this if you should come across a similar scenario you should contact an attorney.

Here is the scenario: The buyer put an offer in on a short sale property last month. The buyer worked directly with the listing agent to put the offer together and has provided all of the necessary documentation.

The listing agent (now working as a transaction broker as best as I can see) submits the offer to the lender for short sale approval. The lender has approved the short sale. Yay! Right??? Well, not so much. The listing agent DID NOT submit the offer for short sale approval to any of the other lien-holders against the property nor did the agent disclose there were multiple liens against the property. Now the agent is telling the buyer it will be necessary for the buyer to PAY OFF all other existing encumbrances PRIOR TO THE CLOSING to make the deal happen. Whoa there, what? This is called FRAUD and it is a FELONY. It violates a number of RESPA rules and damages the senior lien holder. If a BUYER, SELLER, OR AGENT engage in this activity, it could land them in jail. For a real estate agent, it would be grounds for immediate revocation of his or her license and a significant fine.

Short sales are tricky. I get it. But, it isn't worth going to jail to get one done. If you are ever in a position where you are asked to do something that seems shady in a real estate transaction you should immediately contact an attorney and walk away from the deal.

Colorado Owner Carry Financing Law

2011-05-17T10:50:00.001-07:00

One of the big real estate news items of 2010 was the passage of legislation that required home-owners to become licensed mortgage brokers in order to carry financing on properties they were selling. This was bad for the market and was legislation that did not make sense.

I want to set the facts on this matter straight. Owner carry financing is extremely important to the market and to the economic recovery. Governor Hickenlooper signed bill 11-1022 on March 1st to address this. Please see Bill 11-1022

This bill makes it perfectly legal for a homeowners to carry financing on properties without obtaining a mortgage originators license. A homeowner may finance up to three (3) properties every twelve months. If you are considering buying or selling a home and utilizing Owner Carry Financing, make sure you are working with an agent and more importantly, a title company who is knowledgeable with the laws in regards to this issue.

Please be aware, this is not an attempt to be legal advise. If you should need legal advise and how this law could impact you be sure to seek the help of a qualified attorney.

Community Responsibility

2011-04-29T15:10:00.000-07:00

I read lots of blogs talking about all of the great things people are doing with their businesses. I wanted to take a minute and let everyone know what 5280 Homes, Inc does outside of providing world class service to those wanting to buy or sell homes.

We are committed to be socially responsible. Out of almost every closing, a small donation is made to a local charity. Over the past two years we have donated money to the Carson J Spencer Foundation, Habitat for Humanity, Ronald McDonald House and other 501(C)(3) organizations. As the managing broker for the company, I have been determined to keep 100% of our donations in the local community. While I understand catastrophic events happen around the world, I can never forget about the people in my own community who so greatly benefit by keeping my donations local.

One of our broker associates is in the process of launching her very own not-for-profit organization. This charity will help to spread information about suicide prevention. This is a very personal issue for her and an extremely worth while cause. 5280 Homes, Inc is proud to be the very first donor to this charity and we look forward to providing financial and volunteer assistance in the future.

More from the land of short sales

2011-04-21T09:28:00.001-07:00

A recent news article I read in the Denver Post indicated that more the 20% of homes in Colorado are now worth less than the mortgage(s). I know far to many people who have lost their jobs or have had significant income reductions and just aren't able to readily afford their payments any longer. Couple this with a home that isn't worth the amount of the mortgage and you have all of the ingredients to lose a home to foreclosure.

To often, people in this situation don't ask for any help until it is WAY to late. Lenders are not nearly as forgiving in Colorado as other states when you get behind on your payments. Colorado has a unique Public Trustee system to handle foreclosures and they move very quickly once the initial foreclosure filing is submitted.

If you find yourself in this position, here are some things you MUST do right away!
1) Call your loan service provider and discuss your situation! If you do this right away, the will know you are serious about keeping your home and will be more willing to help you.
2) If you know you can no longer afford your payments, you must discuss what your options are for a "LOAN MODIFICATION."
3) If you don't qualify for a loan modification, consider a "short sale". A short sale is where you ask the lender to forgive part of your debt so you can sell your house. There are many different requirements that must be followed you need to work with an experienced short sale expert.

In my next blog post, I'll go over questions you should be asking when interviewing a short sale specialist.

Getting back on task...

2011-03-22T09:33:00.000-07:00

It has been too long since my last short sale post and for that I apologize. During this time, I have been busy working on a multitude of items, including becoming a father again.

5280 Homes, Inc still strives to help distressed home owners avoid foreclosure. While I have always run my business in accordance with newly implemented "Mortgage Asset Relief Services" or MARS, you should be aware of what the changes mean for the consumer.

1) No one (except a licensed attorney)may charge an UP FRONT FEE for providing loan modification or short sale services!
2) For a loan modification, a consumer may ONLY be charged once he or she has agreed to the new terms extended from the lender. If the consumer doesn't agree to the terms of a loan modification, there can be no charge.
3) Consumers cannot be encouraged to stop communicating with their lender(s)
4) An agent may not misrepresent the likelihood that a short sale will be approved. No one can guarantee they can get a deal closed and they should NEVER do it.

There are many more rules and regulations professionals must follow when it comes to short sales. If you have questions, please give us a call at 720-457-3890.

Foreclosure Filings

2010-07-29T11:59:00.000-07:00

Denver Metro area foreclosure filings:
(Notice of Election & Demand)for the week of 7/22 - 7/28;

Adams County - 64 NEDs filed
Arapahoe County - 113 NEDs filed
Boulder County - 16 NEDs filed
Broomfield County - 4 NEDs filed
Denver County - 93 NEDs filed
Douglas County - 34 NEDs filed
Jefferson County - 67 NEDs filed

There were a total of 391 NEDs recorded during the past 7 days. The previous 7 day period had 458 NEDs filed.

*Information is deemed reliable but cannot be guaranteed. All information is available from public records.

Short Sales - How to deal with Bank of America

2010-07-27T11:04:00.000-07:00

If you are looking at a Bank of America short sale, there are certain things you must be aware of.

1) The receive thousands of short sale file requests each week from distressed property sellers.
2) They are severely understaffed.
3) They are notorious for losing documents. It is ESSENTIAL to verify they have received documents and confirm what they have received.
4) They recently introduced a new short sale processing system through a system called Equator. Equator has helped to streamline the short sale process for Bank of America. While it has helped, they still are slow to process.
5) Did I mention they are behind on processing and the files take several months to be completed.

The bottom line, short sales are a long and cumbersome process. Bank of America is a little slower than most of the other banks. It is understandable with the HUGE amount of requests why they take just a little bit longer.

If you need more information about the short sale process please visit http://www.my5280homes.com and click on the Short Sale Specialty tab. 5280 Homes is a short sale negotiation expert and with the experience to help both buyers and sellers complete the short sale transaction.

Why short sales are good for banks

2010-07-26T12:11:00.000-07:00

As we are entering into possibly another downturn in the real estate market, it's more important than ever to understand why a "short sale" may be in the banks best interest.

First and foremost, the foreclosure process is expensive. An example of some of the fees the bank will incur during the foreclosure include:
- Legal fees
- Property acquisition fees
- Clean up fees
- Property maintenance fees
- Appraisal fees
- Real estate agent fees
- Property settlement fees
- Loss of home value because the bank has taken possession of it

These costs can often sky-rocket to 10s of thousands of dollars.

The next reason why banks may accept a short sale is to get a "bad" loan off of the books and take the write off. Bad loans go against a banks balance sheet and to many of them scare investors away. While not 100% of short sales are going to be approved, the banks actively want to approve short sales and are willing to work with most borrowers who are not able to modify or catch up their loans.

The third reason why banks accept short sales is because homeowners in foreclosure don't keep up with maintenance on their homes. This lack of maintenance and the very real possibility of extensive damage being done to the home after a foreclosure can cost banks in excess of 20% to 30% of the home's value.

In a soft market like the one we are experiencing, it is often in the banks best interest to move the asset without completing the foreclosure process. Ever deal is a different but often times the bank ends up losing LESS money by approving a short sale.

Short Sales - For Buyers

2010-07-21T11:12:00.000-07:00

Short sales are a reality for thousands of buyers in the Denver area market. As discussed in previous articles, getting a short sale approved is a long and cumbersome process. There are many pros and cons to purchasing a short sale.

Some of the pros are:
-Buying a house below market value
-Extended wait time for approval scares lots of buyers away so there is less competition for the homes
-Being able to get sweat equity in a home that needs a little bit of work.

Some of the cons:
-Extended wait time for approval
-The sale is not guaranteed to happen
-The bank may counter offer back at a MUCH higher price than the accepted offer between buyer and seller

What can a buyer to ensure the best chance for successfully closing a short sale deal?
1) Ensure you are working with a CERTIFIED DISTRESSED PROPERTY EXPERT. If the sellers agent is not a CDPE, then make sure your buyer's agent is and ask for your agent to negotiate directly with the bank.
2) Make sure you fully understand the Short Sale Disclosure form. There is a paragraph which allows the seller to accept multiple offers. If you want to be the only offer the bank reviews, ensure your contract is written to indicate that.
3) Ensure the negotiating agent is following up with the lenders on a consistent basis and get weekly updates. Good agents will readily provide you the information.

5280 Homes is a short sale expert and we love to help both buyers and sellers complete short sale transactions. Ben Grisinger is a CDPE and has the experience to give you the best chance of success.

If you have more short sale questions, be sure to visit http://www.my5280homes.com and click on the 'Short Sale Specialty' link. If you are interested in buying a short sale, you can search for only short sale properties on the website.

Denver Area Short Sales - Seller Information

2010-07-20T10:45:00.001-07:00

If you are a seller who is in financial distress and may be facing foreclosure (whether you are in it now or will be soon), a short sale may be an alternative. Here are few items you need to be aware of:

- Your credit will be damaged by a short sale, though it will likely not be as damaging as a foreclosure.
- Short sales take time to process and they are very complicated transactions. They often take 3 months or longer to negotiate with the bank(s). You NEED to have a professional helping you complete the short sale.
- You MUST be able to document a financial hardship for the bank to consider your short sale.
- You will need to be prepared to provide all of your financial documents to the lenders for review. This will include two years of tax returns, recent bank statement, verification of assets, a full and complete monthly budget, recent pay stubs, any monetary award letters (e.g. Social Security benefits, VA benefits, unemployment)
-If you are using a professional like 5280 Homes, you will have to sign an Information Release Authorization so we can help negotiate.
-You will need to list your home and allow potential buyers to visit during reasonable hours.
- The difference between what the bank receives and what you owed on the house may become taxable income. You will want to get advice from a tax professional to discuss how this might affect you.

If you have additional short sale questions, please visit http://www.my5280homes.com and click on the 'Short Sale Specialty" tab. 5280 Homes is a short sale negotiation expert and we can help you navigate through the short sale maze and help you avoid foreclosure.

Denver area short sale information

2010-07-19T15:07:00.000-07:00

In yesterday's blog article, I gave a very brief definition of what a short sale is. The focus of today's article will be to discuss who qualifies for a short sale.

A short sale is an alternative to foreclosure for many homeowners. It is a last resort to be used if the seller is unable to modify the terms of his or her loan and does not have the ability to continue making payments.

The seller will have to show some type of "hardship". Often, this is loss of employment, divorce, death, serious medical conditions, etc. The lender will want a detailed explanation about the sellers personal circumstances to make a decision on approving the short sale.

A short sale IS NOT intended for borrowers who are eligible for loan modifications or who are capable of making payments but have chosen to stop doing so.

If you want additional short sale information, please visit our website at http://www.my5280homes.com and click on the "Short Sale Specialty" tab.

Short Sale Properties

2010-07-18T15:38:00.000-07:00

Over the next few days, I'm going to be going over the different aspects of buying and selling short sale properties. Today, I am going to focus on a question I get a lot: What is a short sale?

In Colorado, a short sale is a LENDER approved transaction where the lender agrees to take less than the full payoff amount to release a deed of trust (often referred to as a mortgage).

If you would like more short sale information, be sure to check out the "Short Sale Specialty" on my website at http://www.my5280homes.com.

Look for tomorrows short blog article about who qualifies for a short sale.

5280 Homes has earned the CDPE Designation

2010-07-16T10:53:00.000-07:00

Did you know, Ben Grisinger, Managing Broker, of 5280 Homes earned the Certified Distressed Property Expert Designation? 5280 Homes specializes in helping clients purchase foreclosure properties. We also specialize in assisting sellers who are upside on their mortgage complete a short sale if they are no longer able to keep up the payments.

The foreclosure and short sale markets are likely the fastest growing segments in the Denver real estate market and it is imperative an agent who understands how to navigate the complexities of foreclosure and short sale properties.

If you are in the market to buy a foreclosure or short sale property give 5280 Homes a try. If you are in financial trouble let the 5280 Homes help you complete a short sale on your home.

It's been way to long

2010-05-20T09:19:00.000-07:00

It's been way to long since I have blogged, but I wanted to provide some updates. As expected, the tax credit ended on 4/30/2010 and sales in May will definitely struggle. However, the market hasn't completely seized and 5280 Homes continues to have new visitors to the website and interested buyers. With extremely low interest rates and a lot of inventory, it is still a great time to get into the market. There are buyer's for entry level homes and motivated sellers for step up buyers.

Check back in the next few days for a complete update of market statistics.

Lower End Homes Show HUGE Gains

2009-11-24T07:58:00.000-08:00

Low-priced neighborhoods show biggest percentage price gains - In the third quarter, 80223 was the top-performing ZIP code in metro Denver with a 37.6% gain, compared to the third quarter of 2009. This ZIP code includes part of Athmar Park and the historic Baker neighborhoods. Adams was the only county to show overall appreciation year-over-year in the third quarter. The overall median price in Adams County rose 5.3% in the third quarter from a year earlier to $160,000. That was the lowest median price of all the counties.

City	ZIP	Median Price	YOY % Increase
Denver	80223	$150,000	37.6
Denver	80246	$227,000	35.3
Denver	80204	$149,900	39.3
Denver	80237	$215,000	26.5
Denver	80239	$117,250	22.4

http://insiderealestatenews.com/2009/11/low-priced-neighborhoods-show-biggest-percentage-price-gains/

First Time Home Buyer Tax Credit

2009-11-05T10:02:00.000-08:00

Breaking news this morning suggests Congress is going to be extending the first time home buyer tax credit and will be expanding the credit to home buyers who have owned their primary residence for at least 5 years.

The first time buyer tax credit will still be up to $8,000.00 and for repeat buyers the credit will be up to $6,500.00. This credit should open the floodgates to sellers who may have been sitting on the sideline waiting to sell as they may be able to offset some of the market losses they have taken over the past three years.

Click HERE for the full article.

Please call if you have further questions about this tax credit and how you might be able to take advantage of it.

Ben Grisinger
5280 Homes, Inc
720-936-4449 (direct)
720-457-3890 (office)
ben@my5280homes.com
www.my5280homes.com

First time home buyer tax credit

2009-10-28T16:56:00.001-07:00

Check out the latest news regarding the first time homebuyer tax credit.

For those of you who were on the fence about buying, now would be a great time to jump in the market. We're in the off season and sellers are more willing to deal right now.

Call Ben with questions.

Ben Grisinger
5280 Homes, Inc
Managing Broker / Owner
720-936-4449 (direct)
720-457-3890 (office)
ben@my5280homes.com
www.my5280homes.com

Denver Market Statistics

2009-10-21T11:23:00.001-07:00

Denver's market for the most affordable homes, has seen a great year. On average, these less expensive homes have seen almost a 14% increase in overall value since March. The total number of home sales has declined slightly, due largely in part to a rapidly declining inventory of these properties. There are currently 2.5 months of available homes in the under 210k price point available to be purchased. This is a hot seller's market and many sellers are actually seeing their homes sell for a premium to the asking price.

Visit my Denver Market Statistics Page for more information.

University Hills September Sales Data

2009-10-08T08:04:00.001-07:00

Local MLS activity for University Hills as of October 8, 2009:

There are currently 31 homes actively listed on the MLS. The average asking price is $249,752.00. The median asking price is $225,000.00.

There are currently 8 homes under contract.

MLS shows 9 home sales in the neighborhood during the month of September. The average sales price was $250,978.00. The median sales price was $195,000.00. The September average sales price is skewed because 3191 S Evelyn Way, a new build home, sold for $695,000.00. Adjusted average sales prices are $195,475 and the median price remains the same. This was up from 5 home sales in the month of August with an average sales price of $186,050.00 and median sale price of $180,000.00.

For questions or to get an estimated value for your property, please give me a call at 720-936-4449.

Ben Grisinger
Managing Broker / Owner
5280 Homes, Inc
720-936-4449 (direct)
720-457-3890 (office)
ben@my5280homes.com
www.my5280homes.com

Data was retrieved from Metrolist and is deemed reliable but cannot be guaranteed.

$8,000 Tax Credit Extension

2009-09-21T09:38:00.000-07:00

FROM REALTY TIMES: The Congressional Ways and Means committee could act as soon as next week on this bill. This bill would extend the first time home buyers tax credit for one year to Armed Services members and would eliminate the requirement for Armed Services members to repay the credit if they should sell their home before three years if they are required to transfer stations. As a former Airman in the USAF, I have mixed feelings about this. I think this sets a dangerous precedence where an argument could be made that ANY person who transfers jobs would be allowed to sell their house before the three year requirement and not have to pay back the credit. I also think that adding an additional year to the credit will come at an extraordinary cost to tax payers (the program is already 3 times larger than initially anticipated) and could result in a continuing expectation the credit will always be there.

http://realtytimes.com/rtpages/20090921_washingtonreport.htm

First time buyer tax credit

2009-09-16T08:12:00.000-07:00

Fight looming on tax break to buy houses - Some people are asking whether the housing market can function without the $8,000 tax credit. This year, as many as 40% of all home buyers will qualify for the credit. It is on track to cost the government $15 billion - more than twice the amount originally projected. The real estate industry, as well as some economists, believe that the money is well spent - encouraging recovery in the housing market. According to analysts, the credit is directly responsible for several hundred thousand home sales. The National Association of Realtors wants Congress to extend the credit at least through next summer, to expand the program to $15,000 and to allow all buyers, not just those who have been out of the market for at least three years, to qualify. The price tag on that plan: $50 billion to $100 billion. Mortgage applications increased nearly 10% for the week ending Sept. 3 from late August, the largest gain since early April and the latest of many signs of life in real estate. The upturn can be attributed to several factors: the return of confidence, very low mortgage rates, and prices in some markets that are at decade-low levels. The looming expiration of the tax credit seems to be playing a role too, particularly in relatively low-cost markets like Phoenix, Las Vegas and Dallas.
http://www.msnbc.msn.com/id/32872167/ns/business-the_new_york_times/

Mortgage Rates are Still Low

2009-08-29T08:30:00.000-07:00

Low Mortgage Rates Helping to Stabilize Housing Market - The 30-year fixed-rate mortgage averaged 5.14% with an average 0.7 point for the week ending August 27, 2009, according to Freddie Mac's Primary Mortgage Market Survey. Last week, it averaged 5.12%, and a year ago it was 6.40%. "Long-term mortgage rates were barely changed this week, remaining historically low, which is helping to sustain a high level of affordability in the home-purchase market," said Frank Nothaft, Freddie Mac vice president and chief economist. "Low rates contributed to existing home sales rising for the fourth consecutive month to an annual pace of 5.24 million in July, the most since August 2007, according to the National Association of Realtors®."

http://realtytimes.com/rtpages/20090828_rates.htm

Not so great news for lots of Denver homeowners

2009-08-18T09:32:00.000-07:00

Almost 38% of homes are "underwater" - Some 37.8% of mortgaged homes in the Denver-Aurora-Broomfield area had negative equity in the second quarter of this year, according to a study released yesterday by First American CoreLogic Inc. The national rate was 32.2%, down from 32.5% the first quarter reflecting a flattening of monthly home price changes. “Negative equity continues to be the dominant driver of the mortgage market … Given that negative equity did not increase this quarter, and home-price declines are moderating or flattening, it may indicate we are at the peak of the negative-equity cycle,” Mark Fleming, First American’s chief economist, said in a statement.
www.bizjournals.com

New listings

2009-08-03T13:51:00.000-07:00

It's been a busy last couple of weeks. I have two new listings that have hit the market recently.

Listing # 1 is a 4 bed / 2 bath home located in Lynwood. The home is just a couple blocks from the Cherry Creek Trail. It backs to open space. The seller is updating the kitchen with new granite counter-tops. The wood floors have been refinished. It could use a coat of paint, but is priced $25,000 below recent sales in the area. Listed at $250,000.00. MLS # 796773. The address is 7012 E Arkansas Ave, Denver, CO 80224

Listing # 2 is a 3 bed / 1 bath home located in the highly desired Harvey Park neighborhood. This home has been completely renovated from top to bottom. New roof, new plumbing, new floors, new appliances, etc... This home features over 1,200 finished square feet and fantastic open floor-plans. The kitchen features all new appliances, tile floors, and granite counter-tops. Priced at $164,900.00, the sellers are definitely motivated to move this one. MLS # 798271

Mortgage Demand News

2009-07-15T16:12:00.000-07:00

Mortgage demand rises for second week, an article from MSNBC.com, reports that U.S. mortgage applications rose for a second straight week, driven by a jump in demand for refinancing as interest rates tumbled. The Mortgage Bankers Association's seasonally adjusted index of mortgage applications (includes both purchase and refinance) increased 4.3% to 514.4 for the week ended July 10. Refinances accounted for 54.9% of the applications - up from 48.4% the previous week.
http://www.msnbc.msn.com/id/31920135/ns/business-real_estate/

Let's go blogging

2009-07-14T13:35:00.000-07:00

Thanks for tuning in to my new blog. I will be updating the blog on weekly basis with happenings in the local market.

For a little bit of information about me: I'm a third generation REALTOR in the Denver metro area. I recently opened up my own brokerage firm, 5280 Homes. I have enjoyed great success since opening my doors in May and look forward to many years of helping investors and first time home buyers alike buy and sell properties.