Your Trusted Real Estate Advisor

A broker in my office who handles a lot of bank owned properties sent out a warning. Some crooks take information from a public site that accesses the Multiple Listing Service (MLS) and use it to scam people looking for a house to rent.

Information about one of her listings showed up as a rental property on Craigslist. A woman called in to the office and said that “she had sent in a rental application complete with her social security number and paid deposit and rent money and wanted access to her new home.”

Banks never rent out the homes they have taken in foreclosure. Some banks have had to evict scammed “tenants” who thought they had legitimately rented a property.

The woman who called evidently didn’t check it out thoroughly. She lost her deposit and rent money, and now her identity has also been stolen. Even more, she didn’t have a place to move to.

If you know people who want to rent a property, pass this along. It may save them some serious hassles.

Where can you go for information or help specifically designed for Senior Adults? A great resource I've come across is 9News Senior Source.

This web site is being redesigned to help Senior Adults (including empty-nesters, Baby Boomers, retirees, and older adults). Seniors need a Realtor^® who is trustworthy and is concerned about his clients' needs on all levels.

If you know of someone who is thinking of moving (whether they are a Senior Adult or that Senior's children or grandchildren) forward this information to them.  Point them also to this page: Seniors Face Housing Choices for some ideas of the factors involved in deciding what to do with their home.

“The median price for existing single-family homes in the Denver area is down by 6.6 percent in the first quarter, the National Association of Realtors said Tuesday. “ See the entire article at: Denver Business Journal May 13, 2008. 

This sounds like bad news. However, it could be good news because a drop in the median price could just mean that more of the lower priced homes are selling. If more lower priced homes are selling, those sellers will be able to move up.

For a different perspective, see this article from 5280 Magazine .

Some neighborhoods are not only holding up well, but are appreciating. So, the answer to the question of “How is the real estate market in Denver?” should be changed to “Which neighborhoods in Denver are appreciating, and which are depreciating?”

In a previous post I referred to a short article I wrote on "What you should know about Short Sales" for those who may be thinking about what to do with their house that is "upside-down" financially.

Since then I've received some follow-up questions that refer to a situation where the house in question is owned by a divorced couple.  That brings in some specific issues in addition to the usual ones related to Short Sales.

Here is one example in reference to a situation where one party wants to sell via a Short Sale and the other doesn't want the ding on their credit that a Short Sale will bring, even though it will mean the two borrowers will have to bring a lot of money to the closing. They don't agree on how to list the house--as a Short Sale or not. The question is "Does the bank have to approve a short sale before the house can be placed on the market?"

My answer: "The bank does not have to approve a short sale before it can be placed on the market. The only thing that is required is for both borrowers to agree (1) to put it on the market, and (2) under what terms it will be sold. It helps a lot to start the conversation with the bank about a short sale before putting the house on the market, because only through that conversation can a borrower start to understand what approach the lender will eventually take."

More questions to come in future posts.

Check out the article itself, and call me if you have any questions.  303-284-3609

Duties, Responsibilities, and Liabilities

So, you think you might want to be a Personal Representative (P.R.) of an estate? Or maybe you don’t want it but you find you have become one by default or request. You might know this role under the older title of “executor” of an estate.

Now what do you do? I recently sold a home that was in the estate of the mother of the Personal Representative. It seemed to me to be an overwhelming task—and a thankless one at that. The link below will help you clarify your general duties, specific responsibilities, and possible liabilities.

Land Title Guarantee Company has produced a “technical bulletin” about Personal Representatives that addresses these issues.

The technical bulletin is written by attorneys and is a condensation of material from the Colorado Bar Association. As such, it deals with the legal issues involved.

There is more to being a P.R., though than just the legal matters. I would add these other items you should know:

1. The P.R.’s people skills and relationship skills will be challenged. The death of a loved one can bring out the best and the worst in people. Some will want everything they can get without regard for the interests and feelings of others. Some will want to please everyone regardless of whether the others involved are people who can be satisfied.

2. Timely, frequent, and honest communication is one of the P.R.’s primary tools for keeping the situation as peaceful as possible.

3. Rely on professionals whenever possible—trust your attorney, accountant, Realtor^®, and others to give you their honest expert advice. Then take that advice and act on it.

4. There won’t be enough time in your day to do everything you want to do as well as you want to do it. All you have to do as a P.R. will take all the time you allow it to take. Do what you can, and ask others who can help to do what they can.

5. Take care of yourself first. This doesn’t mean to take things from the estate for yourself first. You will have legal responsibilities there. Rather, it means that you, the P.R., are hurting too if you are related to or close to the deceased. Seek emotional, spiritual, and other support for yourself in order that you can carry out your P.R. duties without being overwhelmed.

Have you heard the term "Short Sale"?  It refers to an alternative to a foreclosure for a homeowner who has trouble paying their loan or selling their home in a depressed market.

I've written a short article on "What you should know about Short Sales" for those who may be thinking about what to do with their house that is "upside-down" financially.

Check it out, and call me if you have any questions.  303-284-3609

Builders' 3rd quarter earnings reports are in, and it doesn't look good for them.  Some, as seen in this article report losing 2/3 to 3/4 Billion dollars in 2007, and seeing record cancellations of existing orders for the quarter.

This is bad news for builders, but not necessarily so for buyers.  Clients of mine bought five new homes in 2007 from 3 different builders.  Each of them got extra upgrades or discounts or both.  When the market turns around (as it eventually will), they stand to gain a lot of equity in comparison to those who bought at the builders' regular prices.

Call me if you are thinking about buying a new home.  I can represent you as your agent and the builder will love paying me to do it.  They need the business and welcome Realtors bringing in buyers.

The chart shows what has taken place with single-family homes over the past 4 years in the Denver Area. Figures are from Metrolist, Denver's Multiple Listing Service.

Over each of the past 4 years fewer homes have sold each year than the prior year, and the number of homes on the market has increased. The trends indicate that at some point in the future the lines would meet and we would have as many homes on the market as sold in an entire year.

However, that kind of "linear projection" gives a false picture. Nothing stays the same, including trends in Real Estate. The line will go up someday, maybe this year.

This chart doesn't show the number of Days on the Market (DOM), but when I look at those stats, certain areas look better than others. So, we can't look at one chart and say what the market is doing in a specific area.

For example, the DOM for Highlands Ranch is 66 (2007 data), while in the Brighton area it is 134. Aurora North DOM was at 115 and Aurora South at 93. For all areas the DOM for single family homes was 102. The same concept applies to other data (sales relative to homes on the market, average sale price, etc.).

2008 signals major changes for foreclosures and "short sales".  A new Colorado Foreclosure law took effect January 1, and some new Colorado Real Estate Commission (CREC) rules and forms will be mandatory March 31.