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October, 2011
Happy October everyone! Mortgage rates continue to be at all time lows. Please call me if I can help with any real estate or mortgage related needs. Chip Parrish, RE/MAX of Cherry Creek, 303.331.4534. chip@ul5280.com
Mindy
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What’s Happening Around Town?
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Featured Articles
 Denver’s housing market fares far better than other cities
Grant fund helps first-time homebuyers in the military
Study ranks RE/MAX first in customer satisfaction
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Denver’s housing market fares far better than other cities
Gloomy pronouncements about the national housing market have become a staple of news reports ever since the market peaked in 2006. But what many fail to understand is that housing markets differ immensely from region to region.
This is vividly illustrated by the June Case-Shiller Index report showing that the housing downturn hasn’t been nearly as drastic in parts of Colorado as it has in other states.
The study tracks monthly residential home values in 20 metropolitan regions. While cities such as Las Vegas, Phoenix, Miami and Detroit have seen downturns in prices ranging from 59.3% to 48.5%, Denver’s drop in home prices through June 2011 was much smaller by comparison, registering at 10.2%.
Moral of the story? It’s impossible to paint the nation’s housing picture with the same brush. When it comes to market news, always ask for details specific to your area.
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Don’t overlook building permits when remodeling your home
In the midst of a remodeling project, homeowners face dozens of decisions: Should the cabinets be stained or painted? Would the plumbing fixtures look better in pewter or gold? Is it important to have granite countertops or will Formica do?
With so many details to consider, it’s no wonder many overlook the most important detail of all: pulling a building permit for the work. Failing to get the right permits — and the validation they provide that the work meets safety codes — can cause major obstacles when selling the home down the road.
Any changes to the structure of a home generally require a permit, even projects as seemingly insignificant as installing a window. To obtain a permit, the homeowner or contractor (whoever is doing the work) is required to file paperwork with the correct municipality, pay a fee and make themselves available for inspections once the work is done.
The permit cost is based on the valuation of the remodel. For example, in Denver if the cost of the work is $2,001-$25,000, the fee would be $35 for the first $2,000, $8 for each additional $1,000 of work. (Residents can find further explanation of fees here.)
Because of the time and money involved, contractors and homeowners are often tempted to skirt the permit process. But this can present major problems when selling the home.
Inspectors and appraisers working on behalf of the buyer often ask sellers to disclose any remodeling work that has been done and to verify the permits. If caught without the proper permits, homeowners may be required to pay fines, or even rip out the project to accommodate required inspections. Instances have arisen where sellers faced a costly lawsuit when unpermitted work was discovered after closing.
In short, it’s far better to suffer comparatively minimal cost and time hassles up front than to find yourself facing expensive consequences after the fact.
If you’re planning a remodeling project and have questions about the process, we would be happy to offer guidance. We look forward to hearing from you!
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Grant fund helps first-time homebuyers in the military
Did you know that members of the military are eligible for help when buying a home?
Active duty, Reserve and National Guard personnel, as well as veterans, retired military and employees of the U.S. Department of Defense and the Department of Homeland Security can apply for as much as $5,000 toward a down payment and closing costs when purchasing their first home.
The money, available to those of modest means, is provided by the nonprofit PenFed Foundation through its Dream Makers program and may be used at any financial institution. For more information, go to www.PentagonFoundation.org.
Guild Mortgage is happy to provide other tips and advice on financing a home purchase. Call or email today. Ask for Lisa Miles or Julie Whalen: 303-320-1556; www.guildmortgageofcherrycreek.com.
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Study ranks RE/MAX first in customer satisfaction
We were delighted to see that RE/MAX tops the list when it comes to customer satisfaction!
The fourth annual J.D. Power’s “2011 Home Buyer/Seller Study” has named RE/MAX the best national real estate company in meeting the needs of home buyers and sellers.
The study measured both the home-buying and home-selling experience for customers of the largest national real estate companies, taking into account such matters as the agent/salesperson, office, marketing and other services. RE/MAX ranked number one in both categories.
The study also measured other factors involving real estate agents, finding that:
- Agents appear to be more adept at matching buyers with the right homes this year. The average number of homes that buyers were shown prior to making a purchase this year was 9, down considerably from the average 17.5 showings in 2010.
- On the seller side, the news was also positive. The average number of times a home was shown to buyers prior to sale in 2011 was 8.6, down from an average of 12.1 showings in 2010.
- Online marketing lost some of its importance this year. In 2011, just 58 percent of sellers indicated using a website listing to market their home, compared with 82 percent in 2010.
- Agents are increasing their word of mouth marketing. In 2011, 60% of buyers and sellers reported that their agent asked for a referral or recommendation–up from 47 percent in 2010.
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Spurred by 9/11, Realtors offer millions in relief funds
Last month, Americans observed the tenth anniversary of the Sept. 11, 2001 terrorist attacks. While we all recall the terrible carnage that resulted that day, many Realtors also remember it as a time when they turned their shock and grief into action.
“This was our Pearl Harbor,” then president-elect of the National Association of Realtors Martin Edwards recalled recently in Realtor magazine. “We agreed that Realtors were going to want to do something to help this country.”
The next day, Sept. 12, 2001, the NAR founded the Realtors Housing Relief Fund. Its goal was to raise enough money so that family members of 9/11 victims facing financial difficulties in the aftermath wouldn’t be forced out of their homes. NAR made the first donation — $1 million — and vowed that 100% of the funds it raised would go to family members.
Ten years later, the results are inspiring: the Housing Relief Fund has collected more than $22 million — not only for survivors of the 9/11 attacks, but also for those affected by many subsequent tragedies, including Katrina, the Joplin, MO tornado, the Japanese earthquake and tsunami and the floods in North Dakota.
The fund is a source of pride for the real estate community.
“Many people think we just sell property,” 2001 NAR President Richard Mendenhall told Realtor. “In actuality, we help people find the place they will call home, the place they will call their business. We help people find quality of life. And when we see others lose their quality of life through tragedy, we take action. The work of the foundation is an extension of who Realtors are. It cannot be measured, except by the heart.”
Speaking of the many Realtors who responded to the Housing Relief Fund’s call to action ten years ago, Edwards echoes Mendenhall’s sentiment.
“I’ve often said, and I believe, it was our finest hour.”
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Denver Market Summary, August 2011
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Residential Market Data
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August 2011
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July 2011
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August 2010
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Change vs August 2010
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Active
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14,662
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15,229
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18,218
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-19.52%
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Under Contract
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3,552
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3,386
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3,189
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11.38%
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Sold
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3,177
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3,082
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2,474
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28.42%
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Avg Days on Market
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96
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99
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94
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2.13%
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Avg Sold Price
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$284,065
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$298,654
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$295,516
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-3.87%
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Condominium Market data
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August 2011
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July 2011
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August 2010
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Change vs August 2010
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Active
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3,502
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3,874
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5,397
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-35.11%
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Under Contract
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985
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864
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777
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26.77%
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Sold
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796
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753
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605
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31.57%
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Avg Days on Market
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111
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109
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100
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11.00%
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Avg Sold Price
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$168,050
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$153,058
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$159,382
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5.44%
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* Includes active and under contract. Based on information from Metrolist, Inc. for the period 8/1/10 through 8/31/11. Note: This representation is based in whole or in part on content supplied by Metrolist, Inc. Metrolist, Inc. does not guarantee nor is in any way responsible for its accuracy. Content maintained by Metrolist, Inc. may not reflect all real estate activity in the market.
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