Citigroup Inc. announced Monday that it is putting a moratorium on most foreclosures as it reaches out to 500,000 home owners who are not currently behind on their mortgages but who are deemed to be a potential risk.The company will assign 600 salespeople to assist the targeted borrowers by adjusting their rates, reducing principal, or increasing the term of the loan.Citigroup reported losses in the last four quarters. Monday’s action is designed to stem the flow of red ink. "Typically the lender loses the most money when a house goes into foreclosure," says Barry Zigas, director of housing policy at the Consumer Federation of America. Source: The
Associated Press, Sara Lepro (11/10/08)
Thursday, November 13, 2008
McStain Neighborhoods goes virtual
Denver Business Journal
Denver-area home builder McStain Neighborhoods is shutting down its headquarters office in Louisville because of the soft housing market, and will have a “virtual office” instead, the company said Wednesday.
The builder, which specializes in environmentally friendly homes, expects to be out of its space at 400 Centennial Parkway in Louisville by the end of November. “There will be some real noticeable activity in the middle of next week, in terms of disassembling home studio and moving stuff out,” spokesman Steve Caulk said.
McStain co-founder Caroline Hoyt said in a statement that the change will make the builder “more nimble, efficient and in a position to give customers more attention and choice.”
The company’s office employees will become part of a new virtual office, with several small offices in and around the neighborhoods where McStain builds, according to the company. McStain has about 20 employees, down from a high a few years ago of 115, Caulk said.
Company president and CEO Eric Wittenberg resigned in August, after seven years with the company, to help control costs, according to Builder Magazine. Wittenberg told the magazine that it was “tough to put your own name on the cut list,” but it was the right thing to do for the company.
McStain founders Tom and Caroline Hoyt took on more day-to-day duties. The Hoyts founded McStain in Boulder in 1966.
In the past few years, McStain has cut its building significantly.
For 2007, McStain built 141 homes valued at a total of $51 million, according to the company. Those homes were priced at $361,957 on average.
In 2006, the builder constructed 303 homes valued at $100 million total, with an average for-sale price of $330,600.
McStain builds in neighborhoods such as Lowry and Stapleton in Denver, Indian Peaks in Lafayette, Hyland Village in Westminster and West Grange in Longmont.
Denver-area home builder McStain Neighborhoods is shutting down its headquarters office in Louisville because of the soft housing market, and will have a “virtual office” instead, the company said Wednesday.
The builder, which specializes in environmentally friendly homes, expects to be out of its space at 400 Centennial Parkway in Louisville by the end of November. “There will be some real noticeable activity in the middle of next week, in terms of disassembling home studio and moving stuff out,” spokesman Steve Caulk said.
McStain co-founder Caroline Hoyt said in a statement that the change will make the builder “more nimble, efficient and in a position to give customers more attention and choice.”
The company’s office employees will become part of a new virtual office, with several small offices in and around the neighborhoods where McStain builds, according to the company. McStain has about 20 employees, down from a high a few years ago of 115, Caulk said.
Company president and CEO Eric Wittenberg resigned in August, after seven years with the company, to help control costs, according to Builder Magazine. Wittenberg told the magazine that it was “tough to put your own name on the cut list,” but it was the right thing to do for the company.
McStain founders Tom and Caroline Hoyt took on more day-to-day duties. The Hoyts founded McStain in Boulder in 1966.
In the past few years, McStain has cut its building significantly.
For 2007, McStain built 141 homes valued at a total of $51 million, according to the company. Those homes were priced at $361,957 on average.
In 2006, the builder constructed 303 homes valued at $100 million total, with an average for-sale price of $330,600.
McStain builds in neighborhoods such as Lowry and Stapleton in Denver, Indian Peaks in Lafayette, Hyland Village in Westminster and West Grange in Longmont.
Wednesday, November 12, 2008
Blogging - The Killer Real Estate Business Tool
By Peyman Aleagha
RISMEDIA, Nov. 12, 2008-It’s a mistake to believe that a blog is not a website. It is just another way of organizing, updating and presenting content. A blog can be a part of your website, or it can stand alone and link to it. The key is to understand what a blog is all about, and how it changes the way in which your site visitors perceive you and interact with you.
What are you trying to accomplish with your Internet presence? Many would say that it is to showcase your services, expertise and listings. That’s correct, but it doesn’t go far enough, nor does it really address the importance of the Web to the average Realtor. So, what should we be trying to accomplish with our Web presence?
- We want to be considered the “go-to” expert on local area real estate.- We want our Internet presence to start a process that eventually creates a phone or in-person relationship with a visitor who wants to buy or sell real estate.- We want our site to help us in the generation of listings by impressing listing prospects.
When visitors first arrive at your site, they are rarely ready for the “go-to.” They want information about the area, real estate processes, and lots of listings to search (give them IDX). On these early visits, they do not want a phone call or e-mail unless they ask for it. You need to give them the information they want, and gradually build trust for a relationship.
So, what’s it going to take to get the first two goals realized? This is where the power of the blog comes in. What is so different about the weblog (blog) platform or structure that makes this possible?
The content is easily entered by the real estate agent without any HTML or special Web programming knowledge at all.
The setup and structure places the content properly, requiring no page design for each entry, article or “post” as they are called.
Search engines like regular fresh new content, which is the way blogs are posted. Search engines love the way blogs are structured and the way that they present fresh new content regularly.
Web visitors aren’t patient, and they are on a quest for information. So, several smaller posts about topics like “What’s a Title Binder” or “What’s Covered by Title Insurance” will be precisely on target for their search, and they’ll read it.
You can keep the information fresh when things change, so content is easy to keep updated.
The “Comments” function of a blog makes it easy for your site visitors to interact with you and other visitors.The RSS feed function puts out an update of your content as you place it-a type of press release. The world is informed every time you post new content.
Visitors who like what you write can subscribe to your RSS feed and receive every new item as it is released. This keeps them around until they are actually ready to contact you in a more direct and personal way.
Blogs and add-ons for features are set up to automatically work with social networking like Twitter, Facebook and LinkedIn.
The major difference with Internet marketing has to do with differences in the way Web consumers locate information and the ways in which they prefer to be contacted. Basically, they don’t want a phone call early in their real estate research process. They want to be anonymous, gathering information at their pace until they want to talk to a Realtor. Any effort to hold back information to force a phone or other direct contact is going to cost you prospects. Give them information they respect, and they’ll contact you.
The reason blogs work so well is that they pull the visitors into doing business with you instead of pushing them to contact you on your terms. They allow the prospect to learn about you, even the personality you show in your posts and content selection. They learn who you are and how much you know by keeping up with your content. They want to contact you at some point.
Blogs don’t change the basics. IDX should be in the site, and it’s just as easy to integrate into a blog as it is into any other site. IDX is what your visitors want when they first arrive in 90+% of cases. They may get there on a search for “YourTown real estate sold data,” but they will go from there to the listings search. They’ll also learn that you know what you’re talking about, because they found statistics about sold properties when they needed them.
Peyman Aleagha is the founder and President of RealtySoft.com. RealtySoft provides Realtors with Real Estate Web Design (http://www.realtysoft.com), Real Estate Print Marketing and Free IDX (http://www.realtysoft.com/freeidx.php) solutions.
For more information, visit www.RealtySoft.com.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Related real estate business development articles on RISMedia.com:
RISMEDIA, Nov. 12, 2008-It’s a mistake to believe that a blog is not a website. It is just another way of organizing, updating and presenting content. A blog can be a part of your website, or it can stand alone and link to it. The key is to understand what a blog is all about, and how it changes the way in which your site visitors perceive you and interact with you.
What are you trying to accomplish with your Internet presence? Many would say that it is to showcase your services, expertise and listings. That’s correct, but it doesn’t go far enough, nor does it really address the importance of the Web to the average Realtor. So, what should we be trying to accomplish with our Web presence?
- We want to be considered the “go-to” expert on local area real estate.- We want our Internet presence to start a process that eventually creates a phone or in-person relationship with a visitor who wants to buy or sell real estate.- We want our site to help us in the generation of listings by impressing listing prospects.
When visitors first arrive at your site, they are rarely ready for the “go-to.” They want information about the area, real estate processes, and lots of listings to search (give them IDX). On these early visits, they do not want a phone call or e-mail unless they ask for it. You need to give them the information they want, and gradually build trust for a relationship.
So, what’s it going to take to get the first two goals realized? This is where the power of the blog comes in. What is so different about the weblog (blog) platform or structure that makes this possible?
The content is easily entered by the real estate agent without any HTML or special Web programming knowledge at all.
The setup and structure places the content properly, requiring no page design for each entry, article or “post” as they are called.
Search engines like regular fresh new content, which is the way blogs are posted. Search engines love the way blogs are structured and the way that they present fresh new content regularly.
Web visitors aren’t patient, and they are on a quest for information. So, several smaller posts about topics like “What’s a Title Binder” or “What’s Covered by Title Insurance” will be precisely on target for their search, and they’ll read it.
You can keep the information fresh when things change, so content is easy to keep updated.
The “Comments” function of a blog makes it easy for your site visitors to interact with you and other visitors.The RSS feed function puts out an update of your content as you place it-a type of press release. The world is informed every time you post new content.
Visitors who like what you write can subscribe to your RSS feed and receive every new item as it is released. This keeps them around until they are actually ready to contact you in a more direct and personal way.
Blogs and add-ons for features are set up to automatically work with social networking like Twitter, Facebook and LinkedIn.
The major difference with Internet marketing has to do with differences in the way Web consumers locate information and the ways in which they prefer to be contacted. Basically, they don’t want a phone call early in their real estate research process. They want to be anonymous, gathering information at their pace until they want to talk to a Realtor. Any effort to hold back information to force a phone or other direct contact is going to cost you prospects. Give them information they respect, and they’ll contact you.
The reason blogs work so well is that they pull the visitors into doing business with you instead of pushing them to contact you on your terms. They allow the prospect to learn about you, even the personality you show in your posts and content selection. They learn who you are and how much you know by keeping up with your content. They want to contact you at some point.
Blogs don’t change the basics. IDX should be in the site, and it’s just as easy to integrate into a blog as it is into any other site. IDX is what your visitors want when they first arrive in 90+% of cases. They may get there on a search for “YourTown real estate sold data,” but they will go from there to the listings search. They’ll also learn that you know what you’re talking about, because they found statistics about sold properties when they needed them.
Peyman Aleagha is the founder and President of RealtySoft.com. RealtySoft provides Realtors with Real Estate Web Design (http://www.realtysoft.com), Real Estate Print Marketing and Free IDX (http://www.realtysoft.com/freeidx.php) solutions.
For more information, visit www.RealtySoft.com.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Related real estate business development articles on RISMedia.com:
James Lockhart, Federal Housing Finance Agency director, explaining a plan to ease mortgage payments for troubled borrowers.
WASHINGTON -- Fannie Mae and Freddie Mac, which are under government control, said they would help streamline the modification of loans for potentially hundreds of thousands of homeowners who are 90 days or more behind on their mortgage payments.
The Bush administration said it would use the mortgage giants to extend aid to struggling homeowners, a move met with criticism from a top federal regulator, lawmakers and others, who charged it doesn't do enough to stem home foreclosures.
The response intensifies an already fraught debate over the government's approach to the mortgage crisis, which has cast a long shadow over the U.S. economy, from restaurants to auto makers to retail stores.
The Federal Deposit Insurance Corp. and some lawmakers support using part of the government's $700 billion in bailout funds to spur much broader loan modifications. So far, the Treasury and White House have resisted and questioned whether that idea would be effective given the costs to taxpayers.
The potential reach of the program is constrained by the large number of mortgages, especially subprime, which have been bundled into packages of securities and sold to investors around the world. The practical and contractual complexities surrounding these securities renders the mortgages hard to change.
The voluntary plan, which officials hope will be adapted by other mortgage holders, would enable certain borrowers to receive more affordable loans that would make their mortgage payments at most 38% of their monthly income.
James Lockhart, director of the Federal Housing Finance Agency, which controls Fannie and Freddie, called the plan "a bold attempt to move quickly in defining a nationwide program that can quickly and easily reach many of these troubled borrowers." Mortgage servicers would be paid $800 for every loan they modify.
Fannie Mae's and Freddie Mac's participation could make the program standard practice for other loan servicers. To qualify, borrowers must live in their homes, not be in bankruptcy proceedings and have to owe at least 90% of the value of their home.
FDIC Chairman Sheila Bair questioned the plan's effectiveness, saying it "falls short of what is needed to achieve widescale modifications of distressed mortgages." Ms. Bair, a Republican White House appointee, said the government should use some portion of the financial-market bailout package to reduce foreclosures.
The government's move is the latest attempt from Washington and Wall Street to modify mortgages en masse. Led by Bank of America Corp., J.P. Morgan Chase & Co. and Citigroup Inc., the banking industry has announced measures to make loans more affordable. Citi said Tuesday it would modify terms on as much as $20 billion in mortgages for borrowers who are current on their loan payments but could fall behind.
Driving this movement is the increasing cost of foreclosures to investors as home prices continue to plummet. LPS Applied Analytics estimates that losses from foreclosures are averaging about 44% of the loan amount, up from about 29% a year ago.
Given the scope of the crisis, working with borrowers "case by case doesn't work," says Mary Coffin, head of loan servicing for Wells Fargo Home Mortgage. "It probably hasn't for several months."
The House Financial Services Committee is holding a hearing Wednesday, and the Senate Banking Committee is holding a hearing Thursday to examine why the government's efforts so far have not slowed delinquencies.
The response intensifies an already fraught debate over the government's approach to the mortgage crisis, which has cast a long shadow over the U.S. economy, from restaurants to auto makers to retail stores.
The Federal Deposit Insurance Corp. and some lawmakers support using part of the government's $700 billion in bailout funds to spur much broader loan modifications. So far, the Treasury and White House have resisted and questioned whether that idea would be effective given the costs to taxpayers.
The potential reach of the program is constrained by the large number of mortgages, especially subprime, which have been bundled into packages of securities and sold to investors around the world. The practical and contractual complexities surrounding these securities renders the mortgages hard to change.
The voluntary plan, which officials hope will be adapted by other mortgage holders, would enable certain borrowers to receive more affordable loans that would make their mortgage payments at most 38% of their monthly income.
James Lockhart, director of the Federal Housing Finance Agency, which controls Fannie and Freddie, called the plan "a bold attempt to move quickly in defining a nationwide program that can quickly and easily reach many of these troubled borrowers." Mortgage servicers would be paid $800 for every loan they modify.
Fannie Mae's and Freddie Mac's participation could make the program standard practice for other loan servicers. To qualify, borrowers must live in their homes, not be in bankruptcy proceedings and have to owe at least 90% of the value of their home.
FDIC Chairman Sheila Bair questioned the plan's effectiveness, saying it "falls short of what is needed to achieve widescale modifications of distressed mortgages." Ms. Bair, a Republican White House appointee, said the government should use some portion of the financial-market bailout package to reduce foreclosures.
The government's move is the latest attempt from Washington and Wall Street to modify mortgages en masse. Led by Bank of America Corp., J.P. Morgan Chase & Co. and Citigroup Inc., the banking industry has announced measures to make loans more affordable. Citi said Tuesday it would modify terms on as much as $20 billion in mortgages for borrowers who are current on their loan payments but could fall behind.
Driving this movement is the increasing cost of foreclosures to investors as home prices continue to plummet. LPS Applied Analytics estimates that losses from foreclosures are averaging about 44% of the loan amount, up from about 29% a year ago.
Given the scope of the crisis, working with borrowers "case by case doesn't work," says Mary Coffin, head of loan servicing for Wells Fargo Home Mortgage. "It probably hasn't for several months."
The House Financial Services Committee is holding a hearing Wednesday, and the Senate Banking Committee is holding a hearing Thursday to examine why the government's efforts so far have not slowed delinquencies.
House Financial Services Committee Chairman Barney Frank (D., Mass.) said he wants to rewrite rules that servicers say make it hard for them to modify loans. Rep. Mel Watt (D., N.C.) said Democrats planned to push for a 90-day moratorium on foreclosures. President-elect Barack Obama has suggested that any bank receiving money from the government as part of the rescue package should temporarily halt foreclosures.
Congress passed a housing-rescue package in July and its central plank, a program known as Hope for Homeowners, went into effect Oct. 1. It allows banks to move borrowers into government-insured loans if lenders agree to write down a portion of the principal. The program was supposed to improve upon an earlier effort, called Hope Now.
Hope for Homeowners was expected to help as many as 400,000 people, but in its first two weeks it helped just 42 homeowners, according to agency records. The U.S. Department of Housing and Urban Development estimated earlier this month the plan could help 19,600 people by the end of 2009. An agency spokesman said it was too early to judge the program because it takes time for loans to be processed.
"The problem is we've used so many incremental steps, none of which have been big enough to get ahead of the problem," said Sen. Mel Martinez (R., Fla.), a supporter of Ms. Bair and former secretary of the Housing and Urban Development.
In a sign of continuing woes, luxury home builder Toll Brothers Inc. Tuesday reported sales hit record lows last month. Robert Toll, the company's chief executive, said the financial turmoil sparked a wave of cancellations. Fears of jobs losses and the plummeting stock market drove "home buyers' confidence and our traffic and demand down to record lows." Mr. Toll said.
Bush administration officials said the effort announced Tuesday doesn't preclude other foreclosure-prevention measures. It remains unclear what other steps might be taken.
Several weeks ago, Ms. Bair began privately floating a proposal that would use roughly $40 billion from Treasury's $700 billion program to help roughly three million homeowners move into more affordable loans. The White House has been cool to the idea. Bush administration officials have said the FDIC's proposal could offer perverse incentives that might push more people into foreclosure, such as encouraging people whose mortgages were underwater to stop making monthly payments in order to qualify for aid.
The Treasury Department has so far directed its rescue spending into financial institutions, and isn't currently expected to buy distressed assets such as mortgages.
Few believe even the giant loan-modification efforts announced by financial institutions will be enough. That's because the programs focus primarily on mortgages wholly owned by the participating institutions. Most mortgages in recent years were sold to investors, and efforts to modify those are proving to be vexing, particularly when those loans have been carved into mortgage-backed securities that don't carry some government guarantee.
Of the $11.3 trillion in mortgage loans outstanding, $2.03 trillion were packaged into mortgage-backed securities sold to investors by Wall Street, according to Inside Mortgage Finance. Another $4.5 trillion are owned or guaranteed by Fannie Mae or Freddie Mac.
—Michael R. Crittenden, Deborah Solomon and John D. McKinnon contributed to this article.
Write to Damian Paletta at damian.paletta@wsj.com, Jessica Holzer at jessica.holzer@dowjones.com and Ruth Simon at ruth.simon@wsj.com
Congress passed a housing-rescue package in July and its central plank, a program known as Hope for Homeowners, went into effect Oct. 1. It allows banks to move borrowers into government-insured loans if lenders agree to write down a portion of the principal. The program was supposed to improve upon an earlier effort, called Hope Now.
Hope for Homeowners was expected to help as many as 400,000 people, but in its first two weeks it helped just 42 homeowners, according to agency records. The U.S. Department of Housing and Urban Development estimated earlier this month the plan could help 19,600 people by the end of 2009. An agency spokesman said it was too early to judge the program because it takes time for loans to be processed.
"The problem is we've used so many incremental steps, none of which have been big enough to get ahead of the problem," said Sen. Mel Martinez (R., Fla.), a supporter of Ms. Bair and former secretary of the Housing and Urban Development.
In a sign of continuing woes, luxury home builder Toll Brothers Inc. Tuesday reported sales hit record lows last month. Robert Toll, the company's chief executive, said the financial turmoil sparked a wave of cancellations. Fears of jobs losses and the plummeting stock market drove "home buyers' confidence and our traffic and demand down to record lows." Mr. Toll said.
Bush administration officials said the effort announced Tuesday doesn't preclude other foreclosure-prevention measures. It remains unclear what other steps might be taken.
Several weeks ago, Ms. Bair began privately floating a proposal that would use roughly $40 billion from Treasury's $700 billion program to help roughly three million homeowners move into more affordable loans. The White House has been cool to the idea. Bush administration officials have said the FDIC's proposal could offer perverse incentives that might push more people into foreclosure, such as encouraging people whose mortgages were underwater to stop making monthly payments in order to qualify for aid.
The Treasury Department has so far directed its rescue spending into financial institutions, and isn't currently expected to buy distressed assets such as mortgages.
Few believe even the giant loan-modification efforts announced by financial institutions will be enough. That's because the programs focus primarily on mortgages wholly owned by the participating institutions. Most mortgages in recent years were sold to investors, and efforts to modify those are proving to be vexing, particularly when those loans have been carved into mortgage-backed securities that don't carry some government guarantee.
Of the $11.3 trillion in mortgage loans outstanding, $2.03 trillion were packaged into mortgage-backed securities sold to investors by Wall Street, according to Inside Mortgage Finance. Another $4.5 trillion are owned or guaranteed by Fannie Mae or Freddie Mac.
—Michael R. Crittenden, Deborah Solomon and John D. McKinnon contributed to this article.
Write to Damian Paletta at damian.paletta@wsj.com, Jessica Holzer at jessica.holzer@dowjones.com and Ruth Simon at ruth.simon@wsj.com
Green Can Mean Gold for Realtors® and The Home Buyers and Sellers They Serve
ORLANDO, November 08, 2008 From www.nar.com
Green buildings and business practices help conserve significant amounts of natural resources and can mean added business opportunities for Realtors®. As environmental concerns continue to grow among consumers, Realtors® attending today’s “Making Green Building Work for You and Your Clients” session at the 2008 REALTORS® Conference & Expo learned more about how to help buyers and sellers bring green into their homes.
Homes and buildings have a major impact on the environment. According to the U.S. Environmental Protection Agency, residential and commercial buildings account for more than one-third of the nation’s total energy use, 12 percent of water use, 68 percent of electricity consumption and 38 percent of carbon dioxide emissions.
“Realtors® build communities and are taking leading roles in promoting and encouraging green building practices,” said National Association of Realtors® President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “Green homes and commercial buildings are our future; Realtors® realize that environmentally sensitive building practices and home features are a good investment for both their clients and the planet.”
Realtors® who can educate consumers about green developments in real estate could find a rewarding niche, especially as energy-efficiency standards become more stringent. “Realtors® with green knowledge are valuable resources for environmentally conscious home buyers and sellers,” said Gaylord.
During the session, Realtor® Michael Kiefer with Green DC Realty in Washington, D.C., shared his insights on the growing green consumer base. “The green consumer is a market we as Realtors® cannot ignore,” said Kiefer. “It’s a targeted niche opportunity, and Realtors® must find ways to make green language a part of their business.”
U.S. Department of Energy representative Lani MacRea explained the benefits of retrofitting existing homes with energy efficient features. “Existing residential buildings represent the single largest source of potential energy savings,” she said.
Panelist Victoria Schomer, from Green Built Environments in Asheville, N.C, acknowledged the influence that the real estate industry can have on environmental issues. “We know that the building industry impacts the environment in a very major way,” she said. “The goal is to support clients and their families to live more sustainable, environmentally friendly lives.”
To help Realtors® provide green expertise and service to meet growing consumer demand, NAR launched a Green Designation course in early September, and Realtor® response has been overwhelming. The first Green Designation core course was completed just days ago here in Orlando – over 230 Realtors® have earned the designation.
Green buildings and business practices help conserve significant amounts of natural resources and can mean added business opportunities for Realtors®. As environmental concerns continue to grow among consumers, Realtors® attending today’s “Making Green Building Work for You and Your Clients” session at the 2008 REALTORS® Conference & Expo learned more about how to help buyers and sellers bring green into their homes.
Homes and buildings have a major impact on the environment. According to the U.S. Environmental Protection Agency, residential and commercial buildings account for more than one-third of the nation’s total energy use, 12 percent of water use, 68 percent of electricity consumption and 38 percent of carbon dioxide emissions.
“Realtors® build communities and are taking leading roles in promoting and encouraging green building practices,” said National Association of Realtors® President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “Green homes and commercial buildings are our future; Realtors® realize that environmentally sensitive building practices and home features are a good investment for both their clients and the planet.”
Realtors® who can educate consumers about green developments in real estate could find a rewarding niche, especially as energy-efficiency standards become more stringent. “Realtors® with green knowledge are valuable resources for environmentally conscious home buyers and sellers,” said Gaylord.
During the session, Realtor® Michael Kiefer with Green DC Realty in Washington, D.C., shared his insights on the growing green consumer base. “The green consumer is a market we as Realtors® cannot ignore,” said Kiefer. “It’s a targeted niche opportunity, and Realtors® must find ways to make green language a part of their business.”
U.S. Department of Energy representative Lani MacRea explained the benefits of retrofitting existing homes with energy efficient features. “Existing residential buildings represent the single largest source of potential energy savings,” she said.
Panelist Victoria Schomer, from Green Built Environments in Asheville, N.C, acknowledged the influence that the real estate industry can have on environmental issues. “We know that the building industry impacts the environment in a very major way,” she said. “The goal is to support clients and their families to live more sustainable, environmentally friendly lives.”
To help Realtors® provide green expertise and service to meet growing consumer demand, NAR launched a Green Designation course in early September, and Realtor® response has been overwhelming. The first Green Designation core course was completed just days ago here in Orlando – over 230 Realtors® have earned the designation.
Realtors® Against Full Privatization of Fannie Mae and Freddie Mac
WASHINGTON, November 11, 2008 From www.nar.com
To insure that there is sufficient capital to support mortgage lending to qualified borrowers, the National Association of Realtors® has adopted principles that recommend continued government involvement in the secondary mortgage market.
“As the leading advocate for housing issues, NAR developed these principles for consideration by the 111th Congress and the new presidential administration in light of disruptions in the credit markets and the conservatorship of Fannie Mae and Freddie Mac,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “NAR believes that the federal government must continue to play a role in the mortgage markets to insure the continued flow of capital.”
NAR’s Presidential Advisory Group on Government Sponsored Enterprises developed the new principles to encourage a strong, robust financing environment for homeownership. The principles call on the government to ensure an active secondary mortgage market; support affordable mortgage rates for qualified borrowers; establish reasonable affordable housing goals; require that institutions pass on the advantages of lower borrowing costs by making lower rates on mortgages available for qualified borrowers; require sound underwriting standards, and transparency and soundness with respect to disclosure and structuring of mortgage related securities; and establish rigorous oversight.“Safe and affordable mortgages must be available throughout the nation,” said McMillan. “This requires that the higher loan limits passed in the economic stimulus bill earlier this year be made permanent. The federal government must also insure that there is sufficient capital to support mortgage lending in all types of markets.”“Realtors® look forward to working with the new Congress and administration to help stabilize the housing industry and the U.S. economy, and to make sure we stem the rise of foreclosures and keep more families in their homes,” said McMillan.
To insure that there is sufficient capital to support mortgage lending to qualified borrowers, the National Association of Realtors® has adopted principles that recommend continued government involvement in the secondary mortgage market.
“As the leading advocate for housing issues, NAR developed these principles for consideration by the 111th Congress and the new presidential administration in light of disruptions in the credit markets and the conservatorship of Fannie Mae and Freddie Mac,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “NAR believes that the federal government must continue to play a role in the mortgage markets to insure the continued flow of capital.”
NAR’s Presidential Advisory Group on Government Sponsored Enterprises developed the new principles to encourage a strong, robust financing environment for homeownership. The principles call on the government to ensure an active secondary mortgage market; support affordable mortgage rates for qualified borrowers; establish reasonable affordable housing goals; require that institutions pass on the advantages of lower borrowing costs by making lower rates on mortgages available for qualified borrowers; require sound underwriting standards, and transparency and soundness with respect to disclosure and structuring of mortgage related securities; and establish rigorous oversight.“Safe and affordable mortgages must be available throughout the nation,” said McMillan. “This requires that the higher loan limits passed in the economic stimulus bill earlier this year be made permanent. The federal government must also insure that there is sufficient capital to support mortgage lending in all types of markets.”“Realtors® look forward to working with the new Congress and administration to help stabilize the housing industry and the U.S. economy, and to make sure we stem the rise of foreclosures and keep more families in their homes,” said McMillan.
Friday, October 10, 2008
New Daily Camera Ad
RE/MAX of Boulder is updating the look and feel of its advertising!The idea for this new ad is:
1. Highlight the development projects that our agents our doing. We believe we are the only company that has so many agents doing their own projects. This makes us unique and heads above our competition.
1. Highlight the development projects that our agents our doing. We believe we are the only company that has so many agents doing their own projects. This makes us unique and heads above our competition.
2. Feature the high end homes we have for sale. There will be pictures and basic information, as well as, a website link - this will promote your high end homes in a more effective way.
3. The old ad will no longer be used. It's not enough to say we're Number 1 - it's time to SHOW we're Number 1.
We would appreciate any feed back or ideas that you may have. To send your comments Email Tom or call him at extention x620.
Fewer homes on market, but sales up
By John Rebchook, Rocky Mountain News (Contact)
Published October 8, 2008 at 12:05 a.m.
It's as if the Denver-area housing market has gone back in time.
The number of unsold homes on the market in September dropped to the lowest level since December 2005 and the number of homes placed under contract jumped almost 22 percent from September 2007, the best September for sales in three years.
The average and median sale prices of homes, meanwhile, have fallen back to 2002 levels.
That doesn't mean that if you bought a home six years ago you can't sell your home for a profit.
"It's the mix of homes," that resulted in the median price of a single-family home falling 11.6 percent to $216,150, and the average price falling 14.8 percent to $260,118 from a year earlier, said Gary Bauer. Bauer, an independent broker, released one of three reports on Tuesday that analyzed data from Metrolist.
But if you bought a home in 2002, and you can afford the mortgage and you have no compelling reason to move, you probably won't put your house on the market, competing with foreclosures and otherwise distressed homes.
"People are afraid to put their homes on the market and are going to wait until next year," said Jim Levy, of RE/MAX Classic.
Levy said the southeast area, including Highlands Ranch and Castle Rock, is not experiencing the pain of cities with large pockets of foreclosures, such as Aurora. And Denver's housing market is in far better shape than almost every other U.S. city, he said.
But the reluctance of move-up buyers to sell leaves more lower- priced homes on the market, driving down the average and median prices.
"I don't think you can paint a very rosy picture for the market," said Jason Miller, managing director of Realty Source Financial. "We'll be seeing job losses sooner, rather than later. And when you have no equity in your home and you lose your job, that is a recipe for a foreclosure."
Miller said the lower end of the market may have hit bottom because there are so many investors shopping in that price range.
"There are homes in Montbello that had sold for $190,000 and are now selling at $75,000 or $80,000, and as rentals, they will cash flow," Miller said.
With the credit crisis, it is almost impossible for custom builders to get permanent financing for ultra-expensive spec homes, which means more foreclosures are on the horizon at the upper end, Miller said.
Still, Bauer said he was surprised so many homes were placed under contract in September: 5,269 or 21.7 percent more than 4,329 in September 2007. He said he doesn't expect the trend to extend into fall and winter, and because homes sold then to be lower-priced, he thinks a large percentage won't make it to closing.
Published October 8, 2008 at 12:05 a.m.
It's as if the Denver-area housing market has gone back in time.
The number of unsold homes on the market in September dropped to the lowest level since December 2005 and the number of homes placed under contract jumped almost 22 percent from September 2007, the best September for sales in three years.
The average and median sale prices of homes, meanwhile, have fallen back to 2002 levels.
That doesn't mean that if you bought a home six years ago you can't sell your home for a profit.
"It's the mix of homes," that resulted in the median price of a single-family home falling 11.6 percent to $216,150, and the average price falling 14.8 percent to $260,118 from a year earlier, said Gary Bauer. Bauer, an independent broker, released one of three reports on Tuesday that analyzed data from Metrolist.
But if you bought a home in 2002, and you can afford the mortgage and you have no compelling reason to move, you probably won't put your house on the market, competing with foreclosures and otherwise distressed homes.
"People are afraid to put their homes on the market and are going to wait until next year," said Jim Levy, of RE/MAX Classic.
Levy said the southeast area, including Highlands Ranch and Castle Rock, is not experiencing the pain of cities with large pockets of foreclosures, such as Aurora. And Denver's housing market is in far better shape than almost every other U.S. city, he said.
But the reluctance of move-up buyers to sell leaves more lower- priced homes on the market, driving down the average and median prices.
"I don't think you can paint a very rosy picture for the market," said Jason Miller, managing director of Realty Source Financial. "We'll be seeing job losses sooner, rather than later. And when you have no equity in your home and you lose your job, that is a recipe for a foreclosure."
Miller said the lower end of the market may have hit bottom because there are so many investors shopping in that price range.
"There are homes in Montbello that had sold for $190,000 and are now selling at $75,000 or $80,000, and as rentals, they will cash flow," Miller said.
With the credit crisis, it is almost impossible for custom builders to get permanent financing for ultra-expensive spec homes, which means more foreclosures are on the horizon at the upper end, Miller said.
Still, Bauer said he was surprised so many homes were placed under contract in September: 5,269 or 21.7 percent more than 4,329 in September 2007. He said he doesn't expect the trend to extend into fall and winter, and because homes sold then to be lower-priced, he thinks a large percentage won't make it to closing.
Buffett: My fix for the economy
Investment guru proposes getting private investors involved in the mortgage bailout and warns that the $700 billion price tag may be too low.
LISTEN TO WARREN BUFFETT
By Chris Isidore, CNNMoney.com senior writer
Last Updated: October 2, 2008: 4:44 PM ET
(Fortune) -- Warren Buffett suggested Thursday that the U.S. Treasury team with private investors to buy the distressed mortgage assets at the center of the controversial $700 billion Wall Street bailout, and said the price tag of the rescue plan may have to rise.
Buffett, the chairman and CEO of Berkshire Hathaway, called the problems facing world markets "unprecedented" and warned of a "disaster" if Congress does not move faster to shore up the economy.
"We had an economic Pearl Harbor hit," he said during an appearance at FORTUNE's Most Powerful Women Summit in Carlsbad, Calif. "For a couple of weeks we've been arguing about who's at fault [and] fooling around while things have gotten a lot worse."
On Wednesday, the Senate passed a $700 billion bailout package. The House is expected to vote soon on the revised bill after rejecting an earlier version Monday.
Buffett said the bill isn't perfect, but it's a crucial step in the right direction. He then warned it will take a while to work and that the economy is going to struggle even with its passage.
"It will cost more to solve this problem today than it did two weeks ago," said Buffett, referring to when Treasury Secretary Henry Paulson's first proposed that Congress help rescue Wall Street after Lehman Brothers went bankrupt, Merrill Lynch was sold to Bank of America, and American International Group had to be rescued.
"If we don't get it solved next week," added Buffett, "I may go back to delivering papers."
Treasury to get paid first
Buffett didn't estimate how much more money would be needed to buy enough toxic mortgage investments in order to create a more stable market and get credit flowing again.
But he described a plan he thought of Thursday morning on the way to the Summit that would allow Treasury and private investors to buy assets together. He said his proposal would kickstart demand for mortgage-backed securities, help find a market price for these troubled assets and make it more likely that taxpayers would be made whole or even come out ahead in the bailout.
Under Buffett's plan, Treasury would lend hedge funds, Wall Street firms or any other investors 80% of the price for distressed assets. Investors would benefit from borrowing at lower rates available to the Treasury. But the government would get first claim on the sale of those assets, which means it would get its loan back plus interest and possibly turn a profit. Only then would investors see a penny.
"Now you have someone with 20% skin in the game," explained Buffett. "Believe me, I won't be overpaying if I'm buying with that kind of leverage. And you have someone [the investors] to manage the assets to the extent they need to be managed."
Buffett also noted that the presence of the government in the transactions would raise the price of assets above the absolute firesale levels for which they could now be sold. That would benefit the banks trying to unload them.
Kissing frogs
Since the credit crisis started, Buffett has made a $5 billion investment in Goldman Sachs and a $3 billion investment in General Electric.
He said he was able to give an immediate answer Wednesday morning when GE called to request the cash infusion, suggesting he agreed to the deals without even consulting his own board of directors.
Buffett also said that, in return for his investment, top executives at Goldman Sachs and GE both agreed not to sell their stock in their respective companies for three years.
"There's an enormous advantage to being to act fast at a time like this," said Buffett. "People know they can call me and they can get an answer in 10 seconds....And we try to make them pay for the fact that it's an advantage to them."
The credit crisis has increased the volume of calls he's gotten from companies looking for Buffett to invest, he told the Summit.
"The fellow on the other end, usually the CEO, says 'The market looks at us as a toad. Berkshire Hathaway is looked at as a princess. And if you would just kiss us, we would turn into this handsome prince,'" said Buffett. "And I say, 'No, we would turn into a toad.'" Even so, he added, "we've kissed a few."
Buffett suggested he is still looking for deals and thinks it is a good time to be buying in the market.
He also praised some government officials dealing with the current crisis. He said Treasury Secretary Henry Paulson, who he described as a friend, is the right man to be guiding the government's rescue efforts and that he hopes whoever is elected president asks him to stay on.
And he singled out Federal Deposit Insurance Corp. Chairman Sheila Bair for particular praise for her work dealing with recent crises at Washington Mutual and Wachovia . Washington Mutual collapsed and, in a deal brokered by the FDIC, was immediately sold to JPMorgan Chase. Similarly, regulators orchestrated the sale of Wachovia's banking assets to Citigroup in order to prevent a failure there.
"In my book she stands higher than any CEO I know of in America today," he said, a statement met by applause by the women executives attending the Summit.
Sinners and saints
In a subsequent interview with CNNMoney.com, Buffett said he wasn't interested in placing blame for the crisis.
"I don't worry too much about pointing fingers at the past," he said. "I operate on the theory that every saint has a past, every sinner has a future."
He said the problem boils down to widely-held assumption during the housing boom that prices could only go up. And while the theory's flaws are all too apparent now, the misconception is understandable, said Buffett, pointing to previous asset bubbles going back centuries.
"There are not bad guys in that situation," said Buffett. "It's a condition of human nature."
First Published: October 2, 2008: 12:21 PM ET
LISTEN TO WARREN BUFFETT
By Chris Isidore, CNNMoney.com senior writer
Last Updated: October 2, 2008: 4:44 PM ET
(Fortune) -- Warren Buffett suggested Thursday that the U.S. Treasury team with private investors to buy the distressed mortgage assets at the center of the controversial $700 billion Wall Street bailout, and said the price tag of the rescue plan may have to rise.
Buffett, the chairman and CEO of Berkshire Hathaway, called the problems facing world markets "unprecedented" and warned of a "disaster" if Congress does not move faster to shore up the economy.
"We had an economic Pearl Harbor hit," he said during an appearance at FORTUNE's Most Powerful Women Summit in Carlsbad, Calif. "For a couple of weeks we've been arguing about who's at fault [and] fooling around while things have gotten a lot worse."
On Wednesday, the Senate passed a $700 billion bailout package. The House is expected to vote soon on the revised bill after rejecting an earlier version Monday.
Buffett said the bill isn't perfect, but it's a crucial step in the right direction. He then warned it will take a while to work and that the economy is going to struggle even with its passage.
"It will cost more to solve this problem today than it did two weeks ago," said Buffett, referring to when Treasury Secretary Henry Paulson's first proposed that Congress help rescue Wall Street after Lehman Brothers went bankrupt, Merrill Lynch was sold to Bank of America, and American International Group had to be rescued.
"If we don't get it solved next week," added Buffett, "I may go back to delivering papers."
Treasury to get paid first
Buffett didn't estimate how much more money would be needed to buy enough toxic mortgage investments in order to create a more stable market and get credit flowing again.
But he described a plan he thought of Thursday morning on the way to the Summit that would allow Treasury and private investors to buy assets together. He said his proposal would kickstart demand for mortgage-backed securities, help find a market price for these troubled assets and make it more likely that taxpayers would be made whole or even come out ahead in the bailout.
Under Buffett's plan, Treasury would lend hedge funds, Wall Street firms or any other investors 80% of the price for distressed assets. Investors would benefit from borrowing at lower rates available to the Treasury. But the government would get first claim on the sale of those assets, which means it would get its loan back plus interest and possibly turn a profit. Only then would investors see a penny.
"Now you have someone with 20% skin in the game," explained Buffett. "Believe me, I won't be overpaying if I'm buying with that kind of leverage. And you have someone [the investors] to manage the assets to the extent they need to be managed."
Buffett also noted that the presence of the government in the transactions would raise the price of assets above the absolute firesale levels for which they could now be sold. That would benefit the banks trying to unload them.
Kissing frogs
Since the credit crisis started, Buffett has made a $5 billion investment in Goldman Sachs and a $3 billion investment in General Electric.
He said he was able to give an immediate answer Wednesday morning when GE called to request the cash infusion, suggesting he agreed to the deals without even consulting his own board of directors.
Buffett also said that, in return for his investment, top executives at Goldman Sachs and GE both agreed not to sell their stock in their respective companies for three years.
"There's an enormous advantage to being to act fast at a time like this," said Buffett. "People know they can call me and they can get an answer in 10 seconds....And we try to make them pay for the fact that it's an advantage to them."
The credit crisis has increased the volume of calls he's gotten from companies looking for Buffett to invest, he told the Summit.
"The fellow on the other end, usually the CEO, says 'The market looks at us as a toad. Berkshire Hathaway is looked at as a princess. And if you would just kiss us, we would turn into this handsome prince,'" said Buffett. "And I say, 'No, we would turn into a toad.'" Even so, he added, "we've kissed a few."
Buffett suggested he is still looking for deals and thinks it is a good time to be buying in the market.
He also praised some government officials dealing with the current crisis. He said Treasury Secretary Henry Paulson, who he described as a friend, is the right man to be guiding the government's rescue efforts and that he hopes whoever is elected president asks him to stay on.
And he singled out Federal Deposit Insurance Corp. Chairman Sheila Bair for particular praise for her work dealing with recent crises at Washington Mutual and Wachovia . Washington Mutual collapsed and, in a deal brokered by the FDIC, was immediately sold to JPMorgan Chase. Similarly, regulators orchestrated the sale of Wachovia's banking assets to Citigroup in order to prevent a failure there.
"In my book she stands higher than any CEO I know of in America today," he said, a statement met by applause by the women executives attending the Summit.
Sinners and saints
In a subsequent interview with CNNMoney.com, Buffett said he wasn't interested in placing blame for the crisis.
"I don't worry too much about pointing fingers at the past," he said. "I operate on the theory that every saint has a past, every sinner has a future."
He said the problem boils down to widely-held assumption during the housing boom that prices could only go up. And while the theory's flaws are all too apparent now, the misconception is understandable, said Buffett, pointing to previous asset bubbles going back centuries.
"There are not bad guys in that situation," said Buffett. "It's a condition of human nature."
First Published: October 2, 2008: 12:21 PM ET
August pending home sales jump 7.4 percent: NAR
(2008-10-08)
By Lynn Adler
NEW YORK (Reuters) - Pending sales of existing U.S. homes unexpectedly jumped in August to the highest in over a year, data from a real estate trade group showed on Wednesday.
The National Association of Realtors Pending Home Sales Index, based on signed contracts, rose 7.4 percent in August to 93.4 from an upwardly revised 87.0 in July on pent-up demand as affordability improved.
The jump may be fleeting, however, as global financial markets chaos has since escalated, some analysts said.
August's reading was 8.8 percent higher than a year earlier and was the highest since 101.4 in June 2007. Economists polled by Reuters had expected sales to drop by 1.8 percent.
"What we're seeing is the momentum of people taking advantage of low home prices," the association's senior economist Lawrence Yun said in a statement.
"Home buyers in July were hampered by overly stringent lending criteria in the months before the government takeover of Fannie and Freddie," in early September, he said. "August shows some unleashing of pent-up demand before the credit crisis accelerated in September."
Home funding giants Fannie Mae and Freddie Mac , the largest buyers of U.S. mortgage bonds, were taken under government control on September 7.
Yun said it is unclear how contract activity will be disrupted by the crisis on Wall St, "but we're hopeful most of the increase will translate into closed existing-home sales."
Pending home sales gained across all regions in August: up 18.4 percent in the West, 8.4 percent in the Northeast, 3.6 percent in the Midwest and 2.3 percent in the South.
"The pending home sales data is not a signal of where we are going. Foreclosed homes at bargain prices have probably been supporting it," said Nigel Gault, chief U.S. economist at Global Insight in Lexington, Massachusetts.
"We shall see if these sales close and if those people will go through the transaction because people's finances have worsened since that time," he added. "Housing at first impacted the economy and the economy is now impacting housing in a vicious cycle."
The 30-year fixed mortgage rate will average 6.1 percent in the fourth quarter, rising to 6.6 percent by the end of next year, the NAR predicts.
The trade group forecasts U.S. existing home sales at 5.04 million this year, rising to 5.41 million in 2009, and new home sales of 503,000, falling to 471,000 next year.
Housing starts, including multifamily units, should drop 28.2 percent to 973,000 units this year, and fall further to 843,000 in 2009 as builders clear inventory, it added.
(Additional reporting by Julie Haviv; Editing by James Dalgleish)© Copyright 2008, REUTERS
By Lynn Adler
NEW YORK (Reuters) - Pending sales of existing U.S. homes unexpectedly jumped in August to the highest in over a year, data from a real estate trade group showed on Wednesday.
The National Association of Realtors Pending Home Sales Index, based on signed contracts, rose 7.4 percent in August to 93.4 from an upwardly revised 87.0 in July on pent-up demand as affordability improved.
The jump may be fleeting, however, as global financial markets chaos has since escalated, some analysts said.
August's reading was 8.8 percent higher than a year earlier and was the highest since 101.4 in June 2007. Economists polled by Reuters had expected sales to drop by 1.8 percent.
"What we're seeing is the momentum of people taking advantage of low home prices," the association's senior economist Lawrence Yun said in a statement.
"Home buyers in July were hampered by overly stringent lending criteria in the months before the government takeover of Fannie and Freddie," in early September, he said. "August shows some unleashing of pent-up demand before the credit crisis accelerated in September."
Home funding giants Fannie Mae and Freddie Mac , the largest buyers of U.S. mortgage bonds, were taken under government control on September 7.
Yun said it is unclear how contract activity will be disrupted by the crisis on Wall St, "but we're hopeful most of the increase will translate into closed existing-home sales."
Pending home sales gained across all regions in August: up 18.4 percent in the West, 8.4 percent in the Northeast, 3.6 percent in the Midwest and 2.3 percent in the South.
"The pending home sales data is not a signal of where we are going. Foreclosed homes at bargain prices have probably been supporting it," said Nigel Gault, chief U.S. economist at Global Insight in Lexington, Massachusetts.
"We shall see if these sales close and if those people will go through the transaction because people's finances have worsened since that time," he added. "Housing at first impacted the economy and the economy is now impacting housing in a vicious cycle."
The 30-year fixed mortgage rate will average 6.1 percent in the fourth quarter, rising to 6.6 percent by the end of next year, the NAR predicts.
The trade group forecasts U.S. existing home sales at 5.04 million this year, rising to 5.41 million in 2009, and new home sales of 503,000, falling to 471,000 next year.
Housing starts, including multifamily units, should drop 28.2 percent to 973,000 units this year, and fall further to 843,000 in 2009 as builders clear inventory, it added.
(Additional reporting by Julie Haviv; Editing by James Dalgleish)© Copyright 2008, REUTERS
Monday, October 6, 2008
Increase your Income to $500,000
Did you have gross commissions of over $100k but less than $500k? Want to have it closer to the $500k? Then the RE/MAX Ultimate Agent program is for you. The RE/MAX Ultimate Agent program is powered by Buffini and Company and will be administered by our own Buffini Certified Mentor, Duane Duggan.
Over four weeks, twice a week, you’ll participate in fast paced training sessions where you’ll learn:
• How to turn good clients into great clients
• How to build a dynamic network of business owners
• Powerful dialogs for today’s market.
• How to increase your effectiveness and efficiency on a daily basis
You’ll also learn proven ways to work with frustrated sellers and buyers on the fence, be more efficient, effective, and productive; take control of your finances; and better manage your time and energy.
You’ll receive a student kit which includes your Ultimate Agent workbook; five Conference Call CDs on working by referral, building your business network, and using “words to win with.” You’ll also get personal note cards, and a Business Directory presentation tool that helps you attract business owner’s to your directory.
The tentative dates for the program:
11-17 Turning Good Clients into Great Clients-Working by referral overview
11-21 The Personalization Plan
12-3 Building Your Business Network-Your Business Database
12-4 Building Your Business Network Part 2-Build a Sense of Community
12-10 Words to Win With, Priceless Phrases
12-11 Words to Win With Part 2 Buyer and Seller Dialogs
12-17 The E2 Agent-Effectiveness, Top 10 Activities, Utilize Financial Controls
12-18 The E2 Agent-Efficiency, Leveraging your Time, Energy and Resources
All sessions will begin at 9:00 and run for approximately 90 minutes.
The cost of the program is $395. Deadline for sign up is 11-1.
Contact Duane x611 or Email Duane - for a complete outline and to sign up.
Over four weeks, twice a week, you’ll participate in fast paced training sessions where you’ll learn:
• How to turn good clients into great clients
• How to build a dynamic network of business owners
• Powerful dialogs for today’s market.
• How to increase your effectiveness and efficiency on a daily basis
You’ll also learn proven ways to work with frustrated sellers and buyers on the fence, be more efficient, effective, and productive; take control of your finances; and better manage your time and energy.
You’ll receive a student kit which includes your Ultimate Agent workbook; five Conference Call CDs on working by referral, building your business network, and using “words to win with.” You’ll also get personal note cards, and a Business Directory presentation tool that helps you attract business owner’s to your directory.
The tentative dates for the program:
11-17 Turning Good Clients into Great Clients-Working by referral overview
11-21 The Personalization Plan
12-3 Building Your Business Network-Your Business Database
12-4 Building Your Business Network Part 2-Build a Sense of Community
12-10 Words to Win With, Priceless Phrases
12-11 Words to Win With Part 2 Buyer and Seller Dialogs
12-17 The E2 Agent-Effectiveness, Top 10 Activities, Utilize Financial Controls
12-18 The E2 Agent-Efficiency, Leveraging your Time, Energy and Resources
All sessions will begin at 9:00 and run for approximately 90 minutes.
The cost of the program is $395. Deadline for sign up is 11-1.
Contact Duane x611 or Email Duane - for a complete outline and to sign up.
1st Annual Fall Real Estate Conference
THE FALL REAL ESTATE CONFERENCE IS THIS THURSDAY. Headlined by Brad Blackwell, Executive Vice President of Wells Fargo Mortgage, who will deliver 2 talks, and serve on 2 panels. Brad, who is a Boulder native, comes to us fresh off of a similar conference in Berkely California, where he served on a panel with Ben Bernake. We are also excited that Tracy Harlow, the Communication Director of ConocoPhillips, will talk to us about their plans for the STC site in Louisville. We have over 400 registrants, and expect to max out at 500 sometime prior to Thursday. There is an outstanding lineup of speakers, with John McEleven leading the Urban Living Panel, along with Steven Tebo and Bill Reynolds. The luncheon will be attended by about 400 people should be fascinating with Brad, Lou Barnes, Keith Dickelman (Bank of the West) and John Richert (Terrix.) The Forecast finale will be the crown jewel with DB, Scot Smith, Tracy, Brad, and Rocky Scott. The emails that I have seen from the CPA's promise a myriad of information about tax changes that are coming. There will be cocktails, (cash bar) food and the Salsa Band, Onda from 6:30 to 8:30. For informaiton, Tom Kalinski 303-441-5620
Friday, September 19, 2008
Properties Available to Trade
At our Wednesday REMAX Meeting, we discussed clients who have real estate that is not moving in this current market, who may be open to “exchanging their property” for something else..
Here's a list that other agents developed.
1. 1279 Elder (575843 ) $599,000 open Bill Allen 690
2. 109 3rd Superior (567421 ) 1.25 acres, plus one lot, plus 1800 sf bungalow.
Total price$775,000 trade for improved property up to $1 million- Kent Madson 632
3. 4975 Twin Lakes Rd #78 Twin Lakes beauty. 3rd floor, great views, one bedroom, beautiful finishes, new appliances. $169,000 trade for Longmont house around 200g.- Tom Kalinski 620
4. 1045 Spruce (luxury condos)(572840)(572841)(572839)$750,000 to $1,000,000.. submit ideas
5. 2 Table Mesa Houses (Butler and 45th) for income property
6. 4 Unit 831 Meeker, Longmont and sfr on Tulip in Longmont.. submit ideas
7. Another 4 unit on Meeker and sfr on Fox.. submit ideas
8. Gate N Green Broomfield $190g, house on Scott drive (Longmont) and home in Windsor ..submit ideas
9. Heatherwood home for Loft in Downtown Boulder
10. Home in Lyons for smaller property to rent (564840 )
11. 4 unit on Vivian in Longmont for Monroe or Wimbledon Unit
Duane Duggan 611
Here's a list that other agents developed.
1. 1279 Elder (575843 ) $599,000 open Bill Allen 690
2. 109 3rd Superior (567421 ) 1.25 acres, plus one lot, plus 1800 sf bungalow.
Total price$775,000 trade for improved property up to $1 million- Kent Madson 632
3. 4975 Twin Lakes Rd #78 Twin Lakes beauty. 3rd floor, great views, one bedroom, beautiful finishes, new appliances. $169,000 trade for Longmont house around 200g.- Tom Kalinski 620
4. 1045 Spruce (luxury condos)(572840)(572841)(572839)$750,000 to $1,000,000.. submit ideas
5. 2 Table Mesa Houses (Butler and 45th) for income property
6. 4 Unit 831 Meeker, Longmont and sfr on Tulip in Longmont.. submit ideas
7. Another 4 unit on Meeker and sfr on Fox.. submit ideas
8. Gate N Green Broomfield $190g, house on Scott drive (Longmont) and home in Windsor ..submit ideas
9. Heatherwood home for Loft in Downtown Boulder
10. Home in Lyons for smaller property to rent (564840 )
11. 4 unit on Vivian in Longmont for Monroe or Wimbledon Unit
Duane Duggan 611
Home-builder confidence improves in September
Builders more optimistic about future sales following government actions
By Rex Nutting, MarketWatch
Last update: 1:09 p.m. EDT Sept. 16, 2008
WASHINGTON (MarketWatch) -- U.S. home builders grew more confident about their business in early September, with builder sentiment rising for the first time in seven months, a national industry trade group reported Tuesday.
The builders' sentiment index rose to 18 in September, from a record low 16 in August, the National Association of Home Builders said. Still, the index shows that barely one in five builders is optimistic.
Economists expected the index to rise to 17 in September. See Economic Calendar.
The index peaked at 72 in June 2005. It was at 20 a year ago.
Lower mortgage rates, a loan disguised as a tax break for first-time buyers and the government takeover of mortgage giants Fannie Mae and Freddie Mac have encouraged builders to think new-home sales may finally be at a turning point, said Sandy Dunn, president of the builders' group and a builder from Point Pleasant, W.Va.
All three components of the builders' index improved in September.
The index measuring current single-family sales rose to 17 from 16. The index gauging future sales soared to 30 from 24. The index of prospective buyers rose to 14 from 13.
All four regions posted better scores in September than in August. Conditions improved the most in the tiny Northeast region, rising to 22 from 16. Sentiment rose by two points in the other regions: to 15 in the Midwest, to 22 in the South and to 12 in the West.
The report comes a day before the Commerce Department releases its estimate of housing starts and building permits for August. Economists are looking for starts to fall to a seasonally adjusted annual rate of 955,000 in August from 965,000 in July.
The builder index is highly correlated with single-family permits. End of Story
Rex Nutting is Washington bureau chief of MarketWatch.
By Rex Nutting, MarketWatch
Last update: 1:09 p.m. EDT Sept. 16, 2008
WASHINGTON (MarketWatch) -- U.S. home builders grew more confident about their business in early September, with builder sentiment rising for the first time in seven months, a national industry trade group reported Tuesday.
The builders' sentiment index rose to 18 in September, from a record low 16 in August, the National Association of Home Builders said. Still, the index shows that barely one in five builders is optimistic.
Economists expected the index to rise to 17 in September. See Economic Calendar.
The index peaked at 72 in June 2005. It was at 20 a year ago.
Lower mortgage rates, a loan disguised as a tax break for first-time buyers and the government takeover of mortgage giants Fannie Mae and Freddie Mac have encouraged builders to think new-home sales may finally be at a turning point, said Sandy Dunn, president of the builders' group and a builder from Point Pleasant, W.Va.
All three components of the builders' index improved in September.
The index measuring current single-family sales rose to 17 from 16. The index gauging future sales soared to 30 from 24. The index of prospective buyers rose to 14 from 13.
All four regions posted better scores in September than in August. Conditions improved the most in the tiny Northeast region, rising to 22 from 16. Sentiment rose by two points in the other regions: to 15 in the Midwest, to 22 in the South and to 12 in the West.
The report comes a day before the Commerce Department releases its estimate of housing starts and building permits for August. Economists are looking for starts to fall to a seasonally adjusted annual rate of 955,000 in August from 965,000 in July.
The builder index is highly correlated with single-family permits. End of Story
Rex Nutting is Washington bureau chief of MarketWatch.
1st Alpine Unit Sold
Whew. After sometime on the market, Bill Allen sold and closed on one of the three - 1.5 million dollar - units that he and partner Natalie Baumgartner built at 1316, 1318 and 1320 Alpine. Bill said that he started working on this project some 2 years ago. The concept was to produce a comfortably modern upscale townhouse project in the North Boulder area close to the Pearl Street Mall. The units are built Green Featuring high quality low maintenance, energy efficient design and naturally sustainable products and resources.
The "Terrace" project is located diagonally across from Ideal Market, now Whole Foods. Bill said, "the market for high end luxury residences changed and softened between the design stage and the time we brought them to market. We often hear from interested buyers that they are sitting on the fence, uncomfortable with the state of the economy, they are reluctant to commit preferring to 'wait and see how everything shakes out'."
This was a second home for the buyers and was a cash transaction. They looked at a lot of properties, thought about it for a long time, and were quite demanding through out the buying process.
Bill is optimistic that having someone living there in the middle unit will create the energy needed to drive the project. The project had been listed for over 5 months and hand only about 12 agent showings, but commonly draws over 20 groups of people to Sunday open houses.
The "Terrace" project is located diagonally across from Ideal Market, now Whole Foods. Bill said, "the market for high end luxury residences changed and softened between the design stage and the time we brought them to market. We often hear from interested buyers that they are sitting on the fence, uncomfortable with the state of the economy, they are reluctant to commit preferring to 'wait and see how everything shakes out'."
This was a second home for the buyers and was a cash transaction. They looked at a lot of properties, thought about it for a long time, and were quite demanding through out the buying process.
Bill is optimistic that having someone living there in the middle unit will create the energy needed to drive the project. The project had been listed for over 5 months and hand only about 12 agent showings, but commonly draws over 20 groups of people to Sunday open houses.
Government Bailout Plan
Sept. 19 (Bloomberg) -- House Financial Services Committee Chairman Barney Frank said Congress will quickly pass legislation authorizing the Treasury to take on financial companies' troubled assets to help stabilize markets.
"I'm pretty sure this will be Treasury being the one that executes it because you don't have time to create a new agency,'' Frank said today in an interview to be broadcast this weekend on Bloomberg Television's "Political Capital with Al Hunt.'' Congress will act on the plan "within two weeks'' and will consider broader regulation of Wall Street next year, the Massachusetts Democrat said.
Federal Reserve Chairman Ben S. Bernanke, Treasury Secretary Henry Paulson and Securities and Exchange Commission Chairman Christopher Cox met with Frank and other congressional leaders in Washington late yesterday to propose a plan to calm financial markets roiled by the biggest housing slump since the Great Depression.
The initiative would remove devalued mortgage-linked assets from financial companies' balance sheets. Frank said Bernanke and Paulson told him the implications of not acting would mean "disaster, the financial system going into a mode of very little activity.''
"The Treasury will buy selectively,'' and the plan will cost taxpayers "ultimately not a great deal,'' Frank said. The bad debt will cost "maybe double-figure billions over a few years,'' he said.
Second Stimulus
The U.S. House of Representatives will pass legislation to implement the plan by the end of next week and the Senate will act soon after, Frank said. The measure should include a second stimulus package with funding for infrastructure, he said. It will not contain rebates for U.S. families.
Frank said Congress next year will move to apply rules similar to those governing commercial banks to hedge funds, private-equity firms and investment banks. This will include capital requirements and limiting leverage, he added.
He endorsed the SEC's decision to temporarily ban short- selling in the shares of financial companies. The prohibition, which affects the shares of 799 companies, is effective immediately and will be in place through Oct. 2, the SEC said today.
"They banned it some, they should go even further,'' Frank said.
After the interview, Frank said he and Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, have directed members of their staffs to develop a plan for using the initiative to "maximize the beneficial effects here on foreclosures.''
"This is clearly an opportunity for us, while we are responding to the economic problems'' to also reduce foreclosures, Frank said. "Our staffs are already working on making sure that we have that piece done.''
Thoughts:
Immediately, Fannie, Freddie and the Treasury will increase their purchases of Mortgage Backed Securities (MBS) to provide more liquidity in the mortgage markets and stimulate the home sales market. Over the weekend the Congress and Treasury will hammer out the details of a plan to remove the poison assets (read bad subprime loans and securities) from Institutional balance sheets so they can get back in the business of providing the money markets that keep the country running and improve liquidity that way. Look for this to be an RTC style program to manage the bad assets to conclusion without them taking down the institutions that own them.
Short sales of financial institutions are immediately forbidden. Going to stay that way for a while.
Stock Market loves it as does the MBS market. Could be a rare case of Stocks and Bonds BOTH going well.
Regardless of your views on such things-it is good news for us. Rates will be better for your typical buyer, more programs will be available, regulatory oversight is going to be tight and will never go back to where it was, so get ready for the rules to get more like 10 years ago. No Doc lending in ANY form is gone and is going to stay gone. If you have been operating with clients who have to have that kind of financing, they are going to have to find another way to fund their deals. Those kinds of loans are exactly what brought down Lehman this week. (There was a local angle to that. Aurora Lending, a local company, was the firm that made those loans nationwide. They were owned by Lehman)
Clearing up the bad assets choking the pipelines throughout the industry may have one positive effect-Jumbo money may get easier to find once those securities have been separated from the junk they have been lumped in with to date. Not overnight, but I can see that helping a lot down the road.
President Bush is speaking now calling for bipartisan action to pass legislation approve the purchase of these illiquid assets from the market. He is reiterating a lot of what Paulson said. My guess is there will be legislation next week.
This is a strong plan. It’s going to cost the taxpayers a bundle, but the alternative might cost us everything.
"I'm pretty sure this will be Treasury being the one that executes it because you don't have time to create a new agency,'' Frank said today in an interview to be broadcast this weekend on Bloomberg Television's "Political Capital with Al Hunt.'' Congress will act on the plan "within two weeks'' and will consider broader regulation of Wall Street next year, the Massachusetts Democrat said.
Federal Reserve Chairman Ben S. Bernanke, Treasury Secretary Henry Paulson and Securities and Exchange Commission Chairman Christopher Cox met with Frank and other congressional leaders in Washington late yesterday to propose a plan to calm financial markets roiled by the biggest housing slump since the Great Depression.
The initiative would remove devalued mortgage-linked assets from financial companies' balance sheets. Frank said Bernanke and Paulson told him the implications of not acting would mean "disaster, the financial system going into a mode of very little activity.''
"The Treasury will buy selectively,'' and the plan will cost taxpayers "ultimately not a great deal,'' Frank said. The bad debt will cost "maybe double-figure billions over a few years,'' he said.
Second Stimulus
The U.S. House of Representatives will pass legislation to implement the plan by the end of next week and the Senate will act soon after, Frank said. The measure should include a second stimulus package with funding for infrastructure, he said. It will not contain rebates for U.S. families.
Frank said Congress next year will move to apply rules similar to those governing commercial banks to hedge funds, private-equity firms and investment banks. This will include capital requirements and limiting leverage, he added.
He endorsed the SEC's decision to temporarily ban short- selling in the shares of financial companies. The prohibition, which affects the shares of 799 companies, is effective immediately and will be in place through Oct. 2, the SEC said today.
"They banned it some, they should go even further,'' Frank said.
After the interview, Frank said he and Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, have directed members of their staffs to develop a plan for using the initiative to "maximize the beneficial effects here on foreclosures.''
"This is clearly an opportunity for us, while we are responding to the economic problems'' to also reduce foreclosures, Frank said. "Our staffs are already working on making sure that we have that piece done.''
Thoughts:
Immediately, Fannie, Freddie and the Treasury will increase their purchases of Mortgage Backed Securities (MBS) to provide more liquidity in the mortgage markets and stimulate the home sales market. Over the weekend the Congress and Treasury will hammer out the details of a plan to remove the poison assets (read bad subprime loans and securities) from Institutional balance sheets so they can get back in the business of providing the money markets that keep the country running and improve liquidity that way. Look for this to be an RTC style program to manage the bad assets to conclusion without them taking down the institutions that own them.
Short sales of financial institutions are immediately forbidden. Going to stay that way for a while.
Stock Market loves it as does the MBS market. Could be a rare case of Stocks and Bonds BOTH going well.
Regardless of your views on such things-it is good news for us. Rates will be better for your typical buyer, more programs will be available, regulatory oversight is going to be tight and will never go back to where it was, so get ready for the rules to get more like 10 years ago. No Doc lending in ANY form is gone and is going to stay gone. If you have been operating with clients who have to have that kind of financing, they are going to have to find another way to fund their deals. Those kinds of loans are exactly what brought down Lehman this week. (There was a local angle to that. Aurora Lending, a local company, was the firm that made those loans nationwide. They were owned by Lehman)
Clearing up the bad assets choking the pipelines throughout the industry may have one positive effect-Jumbo money may get easier to find once those securities have been separated from the junk they have been lumped in with to date. Not overnight, but I can see that helping a lot down the road.
President Bush is speaking now calling for bipartisan action to pass legislation approve the purchase of these illiquid assets from the market. He is reiterating a lot of what Paulson said. My guess is there will be legislation next week.
This is a strong plan. It’s going to cost the taxpayers a bundle, but the alternative might cost us everything.
Saturday, September 13, 2008
Real Estate Outlook: Recession Fears Put to Rest
by Kenneth R. Harney
The latest national economic growth numbers should finally put to rest fears of a recession that could choke the real estate recovery now getting underway.
The latest national economic growth numbers should finally put to rest fears of a recession that could choke the real estate recovery now getting underway.
Second quarter Gross Domestic Product (or GDP) came in at an upwardly-revised 3.3 percent -- far above the 1.9 percent the federal government had previously estimated.
Key reasons for the robust economic performance: Exports, which have been riding the weak dollar to record levels, and lower imports because the prices of foreign-made goods have been priced higher.
Why should anyone interested in real estate care about GDP? Well, number one, when the economic growth rate accelerates, consumer confidence in the economy rises. That, in turn, pulls potential buyers off the sidelines and opens the door to higher housing sales.
And sure enough, the consumer confidence numbers for August, released last week by the Conference Board, are up by 5 points.
We're already seeing some impressive jumps in home sales in places that haven't seen positive news in two to three years -- central Florida and even some of the hardest-hit parts of California. According to a new report from the real estate tracking firm, DataQuick, sales in southern California jumped 16.7 percent in July over June, and were 14 percent above the pace of July the year before.
Another encouraging sign: Last week's mortgage rates dropped to 6.39 percent for 30-year fixed rate loans, according to the Mortgage Bankers Association of America. Fifteen year rates are still just under 6 percent. Applications for loans to buy homes jumped by 6 percent for conventional loans and an impressive 19.9 percent for FHA mortgages.
The federal government's latest quarterly survey on home prices reveals that the best price appreciation performances are now coming from areas that barely got noticed during the hottest years of the housing boom -- markets like Charleston, West Virginia ( up 6 percent for the year), Greenville, South Carolina (up 5.8 percent), Tulsa, Oklahoma (up by nearly 5 percent) and Scranton, Pennsylvania, where values were up by 4.7 percent..
All these markets -- and there are dozens more spread through Texas, the Midwest and the South -- never experienced the wild days of double digit appreciation.
They offer affordable housing prices and moderate - but steady and slow - price growth. They're not flashy -- never have been, probably never will be -- but that's why they're still producing positive appreciation numbers, while the boom to bust markets are not.
Published: September 9, 2008 Realty Times
Mortgage rates drop; investors applaud Freddie, Fannie rescue
By Adam Shell, USA TODAY
Wall Street staged its biggest rally in a month Monday as stock investors bet that the government's move to seize and backstop the USA's two largest mortgage finance companies will help stabilize the housing market, thaw credit markets and boost the ailing economy.
The Dow Jones industrial average jumped 289.78 points, or 2.6%, to 11,510.74. But common shares of Fannie and Freddie were essentially wiped out, since common-stock shareholders are last in line in any claims.
The jubilant response to the historic federal takeover of Fannie Mae and Freddie Mac was driven by a belief among investors that a financial panic can be averted. Investors had feared that home buyers wouldn't be able to get credit if the two institutions folded.
Still, investment pros caution that the intervention won't cure the crisis in the housing and mortgage markets or lead to any immediate economic recovery.
"It takes one of the major issues off the table: the uncertainty of what would happen if these two entities failed" under the weight of a tsunami of unpaid mortgages, says Chuck Carlson, a portfolio manager and contributing editor of Dow Theory Forecasts.
Michelle Clayman, chief investment officer at New Amsterdam Partners, says the rescue "calmed fears" and sent a message to investors, homeowners and potential home buyers that cash to fund real estate purchases and transactions would not dry up.
But, she adds, "There's still some worrying data out there. Home inventories remain high. Foreclosure data is high, with 9% of all mortgages delinquent. That's huge. And you will continue to see financial institutions in distress. Is this an all-clear signal? Not necessarily."
The housing market has been suffering from falling prices, a record spike in foreclosures and a weak economy. The government's plan to inject up to $100 billion in each of the two government-sponsored entities has already helped lower mortgage rates, reducing costs for borrowers.
It's anyone's guess whether Monday's gains in the stock market will stick. Stocks rallied furiously on two other recent occasions when the government stepped in to avert a meltdown in the current financial crisis: In mid-March, when it orchestrated JPMorgan's purchase of Bear Stearns, and in mid-July, when it first announced plans to prop up Fannie and Freddie if necessary.
Both rallies stalled, and stocks fell to their prior levels within a week. Scott Black, president of Delphi Management, says this rally may also be fleeting. One big problem, Black says, is that there's no quick cure to the oversupply of homes for sale.
The government's decision to take over the two publicly traded companies generated some skepticism in Washington. Senate Banking Committee Chairman Chris Dodd, D-Conn., said he wasn't necessarily opposed to the move but needed to know a lot more detail and plans to hold a hearing later this week.
Peter Schiff, president of Euro Pacific Capital, argued that the government's intervention will actually prolong the housing downturn. The plan, he says, is designed to keep home prices from falling. And that means prices will remain artificially high, setting up the government-controlled lenders for a wave of fresh foreclosures in the future.
"It will make the problem bigger," Schiff says.
Others agree that beyond Monday's celebratory bounce on Wall Street, it's far from clear that the government's move will solve other problems related to the housing crisis.
Here's a look at some possible consequences:
Mortgage rates
Average rates on 30-year fixed-rate mortgages, which have hovered well above 6% for months, plunged from 6.5% Friday to near 6% Monday, says Bankrate.com, according to national overnight averages. And most analysts expect the government's takeover of Fannie and Freddie to extend that decline, at least in the short term.
In part, that's because in taking control of the two companies, the U.S. Treasury will buy mortgage-backed securities, thereby driving their prices up and mortgage yields down. The takeover should also shore up confidence in Fannie and Freddie and the mortgages they own or guarantee.
"Early indications are that mortgage rates are dropping about half of a percentage point," says Greg McBride, senior financial analyst at Bankrate.com. "It remains to be seen if this will hold, because investors are bound to be concerned about how much debt Uncle Sam is taking on."
As of Friday, mortgage rates were a full percentage point higher than they would be expected to be based on the benchmark 10-year Treasury yield, he says, noting that the spread between the two rates was the widest it had been in 22 years.
"That spread will improve as a result of the takeover by the government," McBride says. "But the spread will not immediately go back to the historical average, because there is still a lot of uncertainty about the quality of outstanding mortgages."
With Fannie Mae and Freddie Mac having placed their primary focus on merely surviving, McBride says, they were buying fewer loans and charging higher fees on the loans they did buy, resulting in higher rates for borrowers.
"Short term, this is a definite win for borrowers," he says. "The availability of mortgage credit is not in question. Borrowers will see better terms."
Cameron Findlay, LendingTree chief economist, says borrowers will see better rates, but maybe not as attractive as they'd hoped. He cautions that lenders might not pass all the benefits on to borrowers.
California firm plans 300,000-sqaure-foot complex in Lousiville
Daily Camera
Tuesday September 9, 2008
Tuesday September 9, 2008
A California company finalized a $3.8 million land deal Wednesday and plans to build a nearly 300,000-square-foot commercial complex at the site in Louisville's Colorado Technology Center.
Passco Companies LLC purchased 20 acres within the 580- acre center, located along Dillon Road just north of the planned ConocoPhillips campus. The company plans to build a 268,000-square-foot office and commercial complex there, with the first phase completed by next spring.
The site includes two existing approved planned unit developments, which allow the company to begin construction without first undergoing lengthy city reviews. Companies already housed at the Colorado Technology Center include Lockheed Martin, Nautilus/Schwinn Fitness Group Inc. and Boulder Sausage.
Wednesday, September 10, 2008
Buyers, Owners See Bailout's Silver Lining
By John Rebchook, Rocky Mountain News
Tuesday, September 9, 2008
Mark Bossard's timing to refinance his 2-year-old mortgage might be perfect, given the government's bailout of Fannie Mae and Freddie Mac.
"It could be a boon for me," said Bossard, a software engineer.
On Monday, a day after the government stepped in to prevent a collapse of the two mortgage industry giants, rates dropped substantially to about 6 percent for a conventional, 30- year-loan, from about 6.25 percent on Friday, said Peter Lansing, head of Universal Lending in Denver.
The rates could fall even more to near their 50-year low of 5.25 percent.
Bossard has an 8.55 percent mortgage that is about to adjust to more than 9 percent, so he is eager to lock in the best rate he can as soon as possible.
"If I can get another half-point off my rate than it would have been otherwise, that would be pretty significant," he said.
Although he has dramatically improved his credit score from when he locked in his current rate, he is still concerned that his home in Westminster will not appraise high enough for him to get the best deal on rates.
It will be less complicated for first-time home buyers, who some experts believe may get off the fence if rates drop quickly.
Roy Alexander, head of the Colorado Housing and Finance Authority, which primarily provides loans to lenders for low- and moderate-income first-time home buyers, said that could happen.
But more important, the government's takeover provides stability to the housing market, he said.
"This injection of capital by the Treasury avoids the worst-case scenario, at least temporarily," Alexander said. "The stability should result in keeping rates down. The alternative would be not to step in and run the risk of rates getting away from us."
But Greg Gold, a trial attorney looking to buy a home or condo in downtown Denver or a surrounding neighborhood, is more concerned about getting a great deal on a price, rather than locking in a lower mortgage rate.
"What I'd like to do is get a $700,000 home for $500,000, or a $500,000 home for $300,000," said Gold, who just launched his own law firm.
Even if rates drop, he said he is in no hurry to buy, and thinks prices will be lower next year.
"It seems improbable with all of the construction and the supply of homes increasing downtown, and demand staying basically the same, that prices won't drop," he said.
Lansing, of Universal Lending, said that while he welcomes lower rates, he is worried that the government may loosen underwriting guidelines too much in order to spur home buying.
"Isn't that what got us into trouble in the first place? It's a tough problem," Lansing said.
Tuesday, September 9, 2008
Mark Bossard's timing to refinance his 2-year-old mortgage might be perfect, given the government's bailout of Fannie Mae and Freddie Mac.
"It could be a boon for me," said Bossard, a software engineer.
On Monday, a day after the government stepped in to prevent a collapse of the two mortgage industry giants, rates dropped substantially to about 6 percent for a conventional, 30- year-loan, from about 6.25 percent on Friday, said Peter Lansing, head of Universal Lending in Denver.
The rates could fall even more to near their 50-year low of 5.25 percent.
Bossard has an 8.55 percent mortgage that is about to adjust to more than 9 percent, so he is eager to lock in the best rate he can as soon as possible.
"If I can get another half-point off my rate than it would have been otherwise, that would be pretty significant," he said.
Although he has dramatically improved his credit score from when he locked in his current rate, he is still concerned that his home in Westminster will not appraise high enough for him to get the best deal on rates.
It will be less complicated for first-time home buyers, who some experts believe may get off the fence if rates drop quickly.
Roy Alexander, head of the Colorado Housing and Finance Authority, which primarily provides loans to lenders for low- and moderate-income first-time home buyers, said that could happen.
But more important, the government's takeover provides stability to the housing market, he said.
"This injection of capital by the Treasury avoids the worst-case scenario, at least temporarily," Alexander said. "The stability should result in keeping rates down. The alternative would be not to step in and run the risk of rates getting away from us."
But Greg Gold, a trial attorney looking to buy a home or condo in downtown Denver or a surrounding neighborhood, is more concerned about getting a great deal on a price, rather than locking in a lower mortgage rate.
"What I'd like to do is get a $700,000 home for $500,000, or a $500,000 home for $300,000," said Gold, who just launched his own law firm.
Even if rates drop, he said he is in no hurry to buy, and thinks prices will be lower next year.
"It seems improbable with all of the construction and the supply of homes increasing downtown, and demand staying basically the same, that prices won't drop," he said.
Lansing, of Universal Lending, said that while he welcomes lower rates, he is worried that the government may loosen underwriting guidelines too much in order to spur home buying.
"Isn't that what got us into trouble in the first place? It's a tough problem," Lansing said.
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