Denver Real Estate Blog

I always like what Jean Chatzky has to say, even when it’s painful (what do you mean, I have to give up Starbucks to get out of debt?!).  Today is no different, as she reports on the Today show and on msnbc her advice for buying and selling in the midst of a Mortgage Crisis and Crackdown…

If you’re a buyer… 

Shop for a mortgage, then the house
Don’t settle for being prequalified — take the extra step so you’re preapproved by the bank for a certain amount of money. Knowing exactly how much you can spend will give you serious leverage when it comes time to negotiate with the seller. “Saying you have financing in hand is a golden card right now to get a great price on a house because sellers know it’s a shaky card,” says Corcoran. One caveat: These days, it’s not uncommon for mortgage commitments to stay good for only a week, as opposed to the previous standard of three months. Be sure to stay on top of yours. You can update it with a simple phone call to the lender.

Do your research
Give yourself a crash course on home prices in your area by visiting the open houses of homes similar to the one you’ve got your eye on. Then, get three competitive brokers to give you a cost estimate of what the home is worth. Once you’re armed with information, you can put in an educated offer. “A nice place to start is 15 percent below the asking price, if it’s properly priced, or 15 percent below what you believe the value is if it’s not,” Corcoran explains.

If you want to sell:

Price it like you mean it
Corcoran believes almost two-thirds of homes on the market are overpriced, even in today’s market. Why? Sellers let their emotions get in the way. The fact that your daughter took her first steps on the living room carpet or that you ate dinner together on a nightly basis in the dining room adds value to you, but don’t expect buyers to cough up extra cash for the home’s sentimental value. When you’re ready to sell it’s no longer a home; it’s a house. Even if you’re willing to negotiate a deal, if you price it too high, you run the risk of closing the door on potential sales.

Get an expert opinion on your home’s value, then check out other prices in the area. You can also use Web sites like Zillow.com to get a rough estimate.

Take a chance
Host what Corcoran calls a “Four-Hour Sale.” It’s not for the faint of heart, but if you can stomach it, follow her advice: Through surfing the Internet, asking local brokers or driving around the area, find the three lowest-priced homes in your neighborhood that have a similar bedroom and bathroom count. Then, price yours at 15 percent below that (I warned you — palpitations will follow) and spread the word that you’re going to be offering the home up for four hours only. “You’ll have a rush of buyers and you’ll get paid more than you actually deserve,” says Corcoran. “Basically, in a vacuum of no buyers, you’re creating a hype for buyers.” The key is to enlist the help of a broker so they can advertise the sale to their clients.

If you’re facing foreclosure:

Make the bank your friend
One thing to remember: The bank doesn’t want your house. It would much prefer to have your money, even if that means lowering your monthly payments, renegotiating your interest rate or waiving pre-payment penalties attached to your loser of a loan.

So pick up the phone, dial the lender and ask for the “work-out” department — so named because it’s their job to work out your difficulties. “The key is to call early. If you can call within your first three late payments or no payments, the bank is going to be happy to hear from you,” says Corcoran. Surprisingly, the less money you have, the better your negotiating position. If the bank knows that there’s nothing it can take from you other than your home — no savings or other major assets — it will be much more likely to cut you a deal.

Consider renting
History has shown us that when the sale market is down, the rental market is up. Makes sense — all of the would-be buyers turn into renters, and demand on the market can drive rents sky-high. But how does it benefit you? “It’s very typical that the mortgage that you have and the taxes you have to pay are less than what you can get in rent,” says Corcoran. That means you can rent out your home to cover the mortgage you can’t afford to pay, and then downsize your family into a less-expensive rental until you get back on your feet. The plus here is that you’ll still own your home when the market goes back up or you find some extra income.

Like I said, it’s sometimes painful, but it’s always great advice!

If you haven’t been to the Denver Zoo lately, you haven’t seen a lot of the great improvements and additions they have made to this Denver destination.  Whether you are looking for a fun afternoon with the kids, or a great place to take a date, the Zoo has some fun events coming up in the next couple months… 

August 26

Eat at Chipotle August 26 & Support Denver Zoo! – Chipotle Mexican Grill is hosting a fundraiser at all Denver-area and Northern Colorado Chipotle locations, Sunday August 26, 2007. Chipotle will donate 100% percent of sales generated on August 26 at these locations, up to $10,000 to Denver Zoo.  Visit www.chipotle.com to find the Chipotle nearest you. Chipotle’s commitment to keeping animals happy extends far beyond the zoo with its vision of Food With Integrity. Earlier this year, Chipotle started serving only naturally-raised meats in all of its Colorado restaurants. Naturally-raised meat comes from animals raised on a pure vegetarian diet, never given antibiotics or added hormones and always treated humanely. Chipotle’s support of Denver Zoo is part of its ongoing commitment to the communities it serves!

SEPTEMBER 2007

Brew at the Zoo
Date: Friday, September 7
Time: 6:30 p.m. – 10 p.m.
Cost: Tickets for Denver Zoo members are $40 in advance and $50 at the door and for non-members are $50 in advance and $60 at the door. Adults 21 and over.

Join the creatures of the night at Denver Zoo for an evening of beer, wine and hors d’oeuvres sampling at the 10th annual Brew at the Zoo and Wine Too! Guests can enjoy food and drinks from more than 25 of Colorado’s finest breweries and restaurants, music and dancing at the zoo after-dusk, while raising funds for the zoo’s educational programs. Funds raised through this event are directed to the Red Apple Fund for Life Long Learning, a scholarship fund of Denver Zoo that allowing children and families from low-income communities to participate in the Zoo’s education programs and services. The Brew at the Zoo and Wine, Too is hosted by Denver Zoo’s Wild Things Committee, a group of young professionals who are interested in giving back to the community. 
Purchase your Brew tickets now!
 

Grandparents Day
Date: September 9
Time: 9 a.m. – 3 p.m.
Cost: Activities free with zoo admission

Grandchildren are invited to bring their grandparents to spend a day on safari at Denver Zoo. Learn new and fun facts from live animal demonstrations and volunteers stationed throughout the zoo and explore games and crafts created for the young at heart. Activities will run from 9am-5pm. Guests ages 65 and older will receive free admission when accompanied by a child age 3-11. 

Senior Zoofari
Date: Tuesday, September 18
Time: 9 a.m. – 3 p.m.
Cost: adults ages 65 and older receive free admission

Join Denver Zoo Tuesday, September 18 for a wild safari trek through the zoo during Senior Zoofari. Visitors ages 65 an older will receive free admission all day. Guests will enjoy activities stations and strolling through the zoo for animal viewing. Stop by our senior resource booths to see how you can get involved with the zoo. Activities will run 9 a.m. to 3 p.m. Can’t make the journey to the zoo? Check out Denver Zoo’s Senior Safari and bring the zoo to you!

Click here for more information about other senior programs.

OCTOBER 2007

NEW! Morning Photography at Denver Zoo - Date: TBA - October 2007If you are interested in signing up for an October session, please email dparsons@denverzoo.org stating you would like information about future sessions. Thank you!Join us for an early morning photography session long before the zoo opens to the public at Denver Zoo with staff photographer Dave Parsons at 6:30 a.m.! (Rain or shine, tickets are non-refundable)

Get the morning light on a variety of animals including bighorn sheep, arctic wolves, harbor seals, eagles and many more! In addition to the early entry to the zoo, participants can enjoy an exclusive close-up photo session of macaws and raptors.

Photographers have the opportunity to explore on their own or join the group. The session is limited to 25 photographers, 18 years and older. Cost is $40 or $35 for members and includes a great variety of photographic opportunities for the entire day!

Wildlife Film Festival
Date: Saturday, October 13
Time: First showing at 12 p.m., last showing at 7 p.m.
Cost: Admission is free for children under the age of two $8.75 for non-members, and $5.75 for Denver Zoo and Denver Film Society members.

Denver Zoo has partnered with the Denver Film Society to bring animal lovers a film festival like no other! Denver Zoo’s Wildlife Film Festival will include hands on activities for all ages, including live animal demonstrations, wildlife crafts, interactive interpretive stations and some of the year’s best wildlife films.

Who knew conservation could be so easy? Proceeds from ticket sales will benefit more than 75 Denver Zoo field conservation projects in 28 countries and 7 states. So sit back, enjoy the movies and help wildlife worldwide.

Boo at the Zoo
Date: Saturday, October 27 – Sunday, October 28
Time: 9 a.m. – 5 p.m.
Cost: Activities free with zoo admission

Denver Zoo’s 23rd annual “Boo at the Zoo” steadily approaches so get your costumes ready. Trick-or-treaters can enjoy close encounters with the creepy kind, viewing vampire bats, reptiles, spiders and Denver Zoo’s other creatures.
 

The following was in USA Today this morning.  I think it’s a pretty good summary of the foreclosure crisis and what needs to happen in order to fix the problem.  Colorado is actually at the forefront in adopting new policies and programs to help correct and avoid lending problems, as well as try to keep people out of foreclosure, because our state started seeing really high foreclosure rates quite a while ago. 

Bottom line:  If you can’t afford the house, don’t buy it, even if you qualify.  Think reasonably about what you can acutally afford and look for something in that price range.

The July foreclosure numbers that came out Tuesday are a sobering reminder of just how bad the nationwide mortgage crisis is becoming. Fueled in large part by shaky lending to people with less than perfect credit, foreclosure filings nearly doubled from a year ago and are running at an annual rate of more than 2 million.

That’s still a small percentage of total households, but analysts warn that the big wave is still building. Many of the weakest loans were made in late 2005 and early 2006, and their two-year “teaser” rates will expire in the months to come. Many more homeowners could find themselves in trouble when their rates reset and their mortgage payments jump.

In reaction to the housing meltdown, Congress and regulators are already working to curb “liar loans” (no proof required that a borrower can actually repay) and other nutty lending practices. The Federal Reserve is moving to reassure jittery financial markets by pumping in billions of dollars and cutting the interest rate it charges banks.

That’s all well and good, but what about the people who are falling behind on their mortgages and losing their homes? This is, after all, more than just a personal tragedy.

Foreclosures, especially millions of them, can become a nasty, self-reinforcing cycle of falling home values. The credit markets have already been badly rattled by defaults in mortgages that were packaged and resold as supposedly safe securities. Together, this threatens the broader economy and makes it everyone’s problem.

As hard as it is to see people lose their homes, it’s easy to say what not to do: Don’t use taxpayer money to bail out lenders or borrowers. Deceptive and predatory lenders don’t deserve it, nor do borrowers who knew or should have known better. The market’s brutal efficiency is already meting out appropriate punishment. If government gets into the business of using tax money to protect people from the consequences of poor financial decision-making — a risk in proposals by some Democrats to aid homeowners — that virtually guarantees bigger problems down the road.

So, short of a bailout, what to do? There are at least three good ideas:

* Bankruptcy reform. About the only debt a bankruptcy judge can’t modify is a home mortgage. Borrowers used to get into trouble not because of unsustainable mortgages, but because they lost a job or got ill. Now homeowners commonly fall behind because they can’t keep up with their mortgages. Bankruptcy judges should get more latitude to rework mortgages along with other debt.

* Tax code changes. Sometimes, badly strapped homeowners can persuade lenders to reduce the size of a mortgage to reflect a home’s plummeting value or the homeowner’s inability to keep up with the payments. Sometimes, the lender forecloses and a homeowner can walk away with no house, but also no debt. That would seem to be the end of the story, but it isn’t to the IRS, which often considers either action as income to the borrower, and sends a big tax bill. It makes sense to alter the code to keep the tax collector from making a bad situation worse.

* Education and advice. Sometimes, a home could be saved if its owner only knew that it was possible to renegotiate the mortgage — and that a lender might prefer getting smaller payments to no payments at all. Scores of state organizations and non-profit community groups are working to educate and counsel homeowners, and in many cases to help them renegotiate their mortgages to keep their homes.

Congress’ Joint Economic Committee says the cost of mortgage counseling is often $1,000 to $3,300. But the cost of foreclosure — including lost home equity to the borrower, lost mortgage payments to the lender, lost tax payments to the local government and lower values in the neighborhood — is as much as $80,000. If that’s true, this could be a useful way for all of those parties to moderate their losses.

As the foreclosure numbers build, accompanied by wrenching personal accounts, the political pressure for bailouts is likely to mount. Policymakers must resist the pressure but should find practical ways to lend a hand.

If you are having problems making your mortgage payment, talk directly to your lender.  They want to avoid foreclosure just as much as you do!

- Stacie

I spent an hour this morning trying to figure out a straight answer to this question, and I have concluded: Nobody really knows.

Sure, we can all look at the numbers that have been scrubbed by the media to support whatever story they have written - sales are down, prices are down, the world is ending, etc.

But when I talk to people who deal with Real Estate every day, I hear a totally different story.  Houses are selling.  Fix and flips are moving.  People are buying.  Hmmmmm.

So I looked where I always look lately when I am feeling uninspired, or just need a push to think about something in a different way, from someone who has been where I am - selling Real Estate in a difficult market - and who advises some of the most successful brokers in the country.  (I’m so glad their blog is free, because I’m pretty sure I can’t afford their advice…)

Today Marc Davison from 1000 Watt Consulting reminded me - with an analogy from Pulp Fiction, no less - that everything’s gonna be alright….here’s his post (I was just going to put part of it here, but seriously, it’s so brilliant -you gotta read the whole thing):

In the movie Pulp Fiction, hit man Vincent escorts his boss’s wife, Mia, around town. While Vincent is in the bathroom, Mia discovers his stash. She thinks it’s cocaine and promptly snorts some. Bad idea – it’s actually high-octane heroin. Vincent returns to find her writhing on the floor uncontrollably, nearing cardiac arrest.

Enter Lance, Vincent’s dealer. He hands Vincent a railroad-spike-sized syringe to bring Mia back to life. Here’s the scene:

Lance
OK, you’re giving her an injection of adrenaline straight to her heart. But she’s got breastplates. You’ve gotta pierce through that. So what you gotta do is, you gotta bring the needle down in a stabbing motion. [Makes 3 stabbing motions] 

Vincent
I gotta stab her three times?

Lance
No, you don’t gotta fucking stab her three times! You gotta stab her once, but it’s gotta be hard enough to get through her breastplate into her heart, all right? And then once you do that, you press down on the plunger. Vincent
OK, then what happens?

Lance
I’m curious about that myself.

Vincent does as instructed. Mia immediately bolts upright, eyes wide open. Apparently fully recovered.

Life imitates art

On Friday, world markets, pundits, consumers, and real estate professionals were borderline comatose, in cardiac arrest - the result of a high octane overdose of the credit market crisis. Enter the United State Federal Reserve with a space needle like syringe to plunge $120 billon of pure adrenaline liquidity through the breastplate and into the heart of the banking system.

Global markets bolt upright. The FTSE Eurofirst 300 index rallies, ending Friday 2.4% higher and clearing all its losses for the week. In London, the FTSE 100 bolts up 0.4% on the week.The S&P 500 index surged 1.82%.

Like Mia, the markets bounced back. But the underlying problem remains.

Analyst Hugh Whelan put it like this; “If you’re a leveraged financial institution, a leveraged individual, a leveraged hedge fund, on Monday when you walk in, you’re still facing the same stresses you faced today and yesterday.”

The American consumer, long addicted to purchasing on credit, reached for cocaine homes blind to the dangers the high octane debt heroin they were sold from the many Lance’s in the mortgage and real estate sectors.

A catastrophe.
A paralyzing blow.
An epic crash.

It finally caught up. It’s a problem that requires massive intervention.

The price of addiction

None of us can discount the realities that face us. Foreclosures continue to rise. Rates continue to rise. ARMs continue to reset.

But there’s hope.

While driving out for coffee this morning, I passed an open house. A couple was entering as another appeared to be leaving. I slowed down to observe. The couple leaving stopped, turned, and began pointing around the front yard.

They seemed like ordinary, everyday buyers. And I think:

Homes are going to continue to sell.
Buyers are going to continue to buy.
Agents are going to continue working.
And money will continue to be lent.

There will just be fewer Vinces, Mias and Lances.

Thanks for the pep talk, Marc!  Everything’s gonna be alright…

- Stacie

The Rocky Mountain News has a cool feature today, with pictures of letters off of signs all over the downtown area - do you know your ABC’s?

Here are some hints:

Click here for the answers!  Then get out there and have a fun, sunny Saturday! 

-Stacie

It’s all over the news again today.  The Mortgage Crisis of 2007 has, hopefully, peaked.  On 9News this morning they had a segment featuring a couple in California who had found the home of their dreams, who had pre-qulaified for a Jumbo (over $417K) loan through Countrywide, and who were on their way to the closing table.  Unfortunately for them, Countrywide just put a stop to all Jumbo loans, as did most of the lenders in the country.  Most of the lenders who are still offering this type of loan are now charging more than 8% interest on a 30-year conventional.  Ouch.

There are stories like this all over the media, including this one on USAToday.com - Mortgage pinch causes domino effect of pain and this one locally in the Rocky Mountain News - Bad and getting worse: New-home starts hit 10-year low.

Here’s a highlight: 

Analysts said the housing problems are worsening because of rising mortgage defaults, especially in the market for subprime loans. That is dumping more homes on an already glutted market and causing banks to tighten lending standards, making it harder for prospective buyers to qualify for new mortgages.

“Declining starts and permits clearly reflect deepening problems in the mortgage market, which erupted earlier this year in the subprime sector and now have spilled over into other components of mortgage finance,” said David Seiders, chief economist for the National Association of Home Builders.

The group’s builder confidence survey fell to 22 in early August, the lowest point since January 1991, when the country was going through another severe downturn in housing.

Seiders said it would be some time before housing would start to rebound. He is forecasting sales will stop falling by the end of this year and construction will stabilize in the middle of 2008.

Other analysts said to expect more bad news before housing stabilizes.

“As bad as July’s numbers were, they are bound to get worse in the next one to three months because of the turmoil in financial markets today,” said Patrick Newport, chief U.S. economist for Global Insight. “A mortgage is getting harder to get, especially for those who cannot qualify for prime loans.”

So where is the silver lining in this big, black cloud?  I think it’s clear for those that qualify for FHA and VA loan programs, which are still getting funded.  There are TONS or great properties on the market, and most are underpriced.  Those that HAVE to sell are seriously desperate to do so - I have seen prices slashed by as much as 20% in the last few weeks, probably people who have purchased a new home and are carrying two mortgages, who are trying to avoid foreclosure, or who need to relocate due to a job or other obligation.

So, if you have been thinking about buying your first home, or if you are looking for an investment property to lease out or flip in a few months, there are some great opportunites all over the Denver Metro area.

Denver has tons of fun evening activities to give you a chance to get out and enjoy this great summer weather!  Daytime can be scorching but nights are cool and enjoyable.  The Riverfront Park Fashion Series, at the base of the Millenium Bridge, has become one of the highlights of the summer season.   A different original designer presents their sizzling fashions each month while the stylish crowd sips on wine and samples the fabulous appetizers from a top Denver restaurant. 

Tonight is the last in the fashion series for 2007, with fashions by Garbarini, food provided by Sullivan’s, and wine, spirits and beer flowing freely.  Black is the color of the day so put on that little black dress and come on down and enjoy the best people watching on the planet.   Tickets start at $40 with a portion of the proceeds benefitting the Railyard Dogs dog park, more info at www.riverfrontfashion.com.  See you there!

-Sue

Ok, am I the only one that feels like I spend my days rushing from air-conditioned office to air-conditioned car to oh-so-cool swamp coolered (I think I just made up that word!) house?

Rylie started school today — shouldn’t it be nice and cool, with the smell of autumn in the air?! The stores are full of jeans and sweaters (aren’t you glad that argyle is back?  I love the little sweater vest they featured on the Today show over the weekend - it was black and pink argyle with bright green skulls - this is not your gramma’s argyle!) and I sent Ry off to start 3rd grade in a t-shirt and crocs because, well, it’s just too hot for anything else!   

Because preschool doesn’t start for another couple of weeks - argh - I was stuck trying to entertain Hudson and Ellie today - and I didn’t want to burn their little bootys on the outdoor slides at the park - so I came up with these fun things to do with the kiddos in the Denver area when it’s HOT out!

1. Breakfast at McDonald’s — I know, I saw Fast Food Nation, I know the food’s not ideal - but Whole Foods doesn’t have an indoor playplace with maxed-out AC!  Where else can you get some breakfast into the kids while they entertain themselves in the climbing tunnels?  Plus, bottomless Diet Coke…need I say more?

2. The Butterfly Pavillion - it’s always chilly in there, even when it’s 100 degrees outside!  They have added a ton of new features, and they have one of the most affordable family memberships in town.  Make sure to stop and pet Rosie the tarantula - and bring your own lunch or munchies, the snack bar sucks.

3. Hit the Mall - At most of the nicer malls, there is a place for kids to call their own - we like Big Food at Cherry Creek Mall - because there is usually a table open so you can sit without getting run over or into - and because the play area is VERY padded and open - a half-wall surrounds it, which is also good for keeping track of the toddler crowd!

Our other fave is Flatiron Crossing - depending on the weather, you can play inside on the giant dinos or outside in the huge sandbox.  The food court at Flatirons is great, with everything from pizza to falafel to a Paradise Bakery -yum.  I hear they are working on a new play area as well - see ya there!

4. The Children’s Museum - I know this seems like a no-brainer, but we love it, so I’m mentioning it again.  The AC at the CM can’t be beat, and they are always coming up with new stuff to keep the place interesting for repeat customers - good thing, because the family memberships aren’t cheap - to make it worth it you have to keep going back!  There is something for every age group, and even Rylie, who’s 8, still enjoys a day in the woodshop, the forest, the fire truck area, and the basketball arena!  We usually pack a lunch and eat outside, then cross our fingers that the train is running - it’s surprisingly relaxing to hop on the vintage trolley and tour the valley from REI to Mile High Stadium, and the kids dig it.

5. The Arvada Library - have you been there lately? It’s pretty awesome.  The new building feels so fresh and modern, and the kid’s area and programs are really nice.  My kids love the self-checkout system, and we have never had to stand in line.  The story times are also never crowded, and they have some really entertaining readers.

The courtyard outside could be in any big city - with a fountain park, shady trees, and an abundance of mom-and-pop owned cafes and restaurants nearby, Olde Town Arvada is perfectly anchored by the beautiful new library.   

6. The Apex Center - this place is a lifesaver, especially if you want to swim without worrying about sunscreen all day!  The indoor water park is great for all ages, from the zero-entry baby pool with slides, fountains, and tons of interactive features to the giant slides and lap pool.  There are two hot tubs - one for the whole family and a super-hot adults-only one.  There are always a ton of lifeguards on duty, and they are very attentive and well-trained.

There are always plenty of tables and chairs - and there is free WiFi!  Plan to go early, especially in the summer, because Day Care Centers and Camps also know that kids love this place, and they tend to pile in by the dozens around 11 am.  If you get there at 9 you will practically have the place to yourself.

The Apex Center also has two ice-skating arenas, a giant indoor playgound called The Treehouse, Child care for kids over 6 months, and fantastic workout facilities.

Tomorrow I will have a list of things to do WITHOUT the kids when it’s hot…because I will have a nanny but it will still be a thousand degrees outside.

-Stacie

Northfield Stapleton is way cool.  That’s what I decided last weekend when I dragged Hudson and Ellie out to see Dora the Explorer.  There is a great outdoor shopping experience, fantastic restaurants and fun stuff for the kiddos - what else could you want on a Sunday afternoon?

I picked up this calendar for their Summer Concert Series - here is what is left:

August 10 - Nina Storey and Jubal, 6 pm at Northfield Stapleton, plus exhibitions by Skate Legends and Rythergy!

August 17 - Nacho Men Classic with Martini Shot, 6 pm at Northfield Stapleton

August 24 - Cojunto Colores with Railbenders, 6 pm at Northfield Stapleton

August 31 - Chris Daniels and The Trampolines, 6 pm at Northfield Stapleton, plus Skate Legends and Rythergy

Also, they had another flier for their Summer Kids Club called Lil’ Explorers, which is on Wednesdays at 11:30 at Borders, and on Saturdays at 1 on the Main Street Plaza. 

A heads-up tip if you are going: your kids are going to want to ride the train - pick up a token for $2 at Guest Services BEFORE you get in line…

I love how Colorado’s shopping destinations are really stepping it up with their offerings for kids and families!  Check out Northfield Stapleton’s website here.

-Stacie