New Stonegate Neighborhood Clubhouse

“Have we hit bottom?”  This is the question I and most Realtors get on a daily basis.

How about a 6.35% value reduction in Stonegate home prices from 2007 to 2010.  See below.

The ANSWER IS YES we have BUT it also depends…on what your bottom is and what happens going forward with interest rates.

The only way I can show this is through actual real estate sales data from a specific neighborhood here in Parker Colorado. The data I will show you is from actual home sales in the Stonegate Neighborhood in Parker Colorado. I sell a lot of homes here, live here and know the neighborhood is one of the areas that many Parker Colorado Home Buyers will look in and want to live in.

Stonegate is a larger neighborhood in Parker CO that has a long history of steady sales. It isn’t a new neighborhood. It was started in the 1980’s and has homes as new as 2005. There are about 3000 homes in Stonegate.

You can see from the data below that the market has settled down and seems to have stabilized for the past two years. Over the past 3 years we can see a definite trend of steady sales prices and a more predictable market.

Stonegate home sellers make sure you price your homes reasonably within the market or you may be in for a long road before you sell.

Total Sales by Year: (2007 was obviously the down year for home sales in Stonegate.)

2007 = 79

2008 = 173   

2009 = 121

2010 = 131

Average Total Days on Market: (No real difference)

2007 = 70

2008 = 82   

2009 = 82

2010 = 76

Average NET Sold Price: (6.35% decrease in Value from high to low year.)

2007 = $329,191

2008 = $308,770   

2009 = $308,292

2010 = $308,938

This is so true because I was completing a market analysis earlier this week and basically told the seller of a Stonegate home that their home was worth about $23,000 less than they paid for it in 2006.

Total Volume of NET Sales By Year in Stonegate: (Two years of consistent sales volume show a market that may have leveled out)

2007 = $26,006,053

2008 = $53,417,205

2009 = $37,303,358

2010 = $40,470,934

Average NET $ or Price per sqft Sold: (Seems to have settled around the mid $130 per sqft mark)

2007 = $143

2008 = $138

2009 = $135

2010  = $138

Parker Colorado has Four Blackeyes

Home for Sale in Stonegate

Be a Voyeur in Your Neighborhood

Larkspur Perry Park

Three 1 Acre Lots For Sale in Perry Park in Larkspur Colorado!

Asking Price $44,900 but Please Make an Offer!

Here we have a super deal and great value on 3 lots for sale in Perry Park located in Larkspur Colorado.

ASKING PRICE for each of these lots is $44,900. MAKE AN OFFER you may be surprised.

Buy one or all three of these Larkspur lots for sale. Two of the lots are side by side so you could potentially have a beautiful home on one lot and free open space next to you.  You would have the ability to control who lives next to you! Everyone wishes they could do this.

Here is a link to the MLS Documentation for your review.

Photos Below.

The lots are gently sloping with massive views of unique rock outcroppings, rolling prairie hills and the foothills. Come out and take a look or enjoy the photos below.

These are fire sale prices however please do submit an offer. All offers will be considered!

For additional information Call Steven Beam at 303-941-4663 or shot me an EMAIL.

Parker Colorado neighborhood Info

Here is an excellent way to monitor ACTIVE and SOLD homes in very specific areas and neighborhoods. The Market Snapshot. This report is easily setup by me or by you that automatically emails you monthly or bi-monthly all the homes sold and active in a specific area or neighborhood.

(Sample Report Here)

As a Buyer: You can track a neighborhood that you want to move into and see exactly what is active and sold in that neighborhood.

As a Seller: Be a voyeur and see what your neighbor’s house really sold for or watch the market if you are contemplating selling in the near future.

Not only does it show you very detailed real estate stats it will also give you detailed map information about:

• Schools and locations
• Shopping
• Fire Protection
• Police
• Bars and Restaurants
• Recreation Locations (Parks)
• Houses of Worship

If you are interested in the Free service go ahead and use the link above to set it up or shoot me an email and I will set it up for you.

Yours truly,

Steven Beam

Parker Colorado Home Values

“Will a short sale help me sell

my Parker Colorado home?”

In today’s changing and declining real estate market it is becoming increasingly more difficult for many homeowners to sell their homes and fully satisfy the mortgages on the property as well as pay all the closing cost related to the sale.

Email Lou for quick answers to your short sale questions.

• Get Help With your Colorado Foreclosure.
• Colorado Foreclosure time line.
• I can’t make my mortgage payments so what now?
• Find out the market value of your property now.
• How do I Price My Colorado Short Sale ?
• Short Sale Scams in Parker Colorado
  

More and more Parker, Colorado homeowners are looking to short sales to enable them to sell their properties. Not everyone can qualify for a short sale on their property. The lender typically is not willing to provide a discount on a performing mortgage with a strong borrower. Certain conditions must be met before a lender will qualify a borrower for a short sale.

Here are the general conditions for a short sale qualification:

• You must provide proof that you are experiencing a hardship through such things as unemployment, marital problems or medical issues.

• You must show that the value of your property has fallen so the lender can justify the sale of the property at the present market value.

• You must provide evidence that you are behind or about to fall behind in your mortgage payments.

• You must not have substantial assets that the lender can view as a resource to pay your ongoing mortgage obligation.

• You must have a qualified buyer to purchase the property. Your Realtor can provide a buyer from their listing and marketing of the property. This typically is not a problem.

• The lender must agree to the short sale.

By pricing the property in relation to a negotiated short sale discount the homeowner is able to attract qualified buyers who are looking for a competitive price on their new home or investment. With the multitude of short sale and bank owned properties currently listed for sale a short sale discount may be the best avenue for a homeowner to market and sell their home.

Short sales are a specialized form of real estate transaction. A homeowner should work with an experienced and qualified Realtor who specializes in this type of transaction. Your Realtor and their staff will insure that all of the elements of this transaction will take place properly.

Parker Colorado Short Sales and Foreclosures

Understanding the terms used in foreclosure.

Every Parker, Colorado homeowner facing a possible short sale or foreclosure needs to know this information about options and possibilities that can help you take control of your situation.

Too often in Parker and Douglas County Colorado I see homeowners to ashamed or embarrassed to seek out help before it’s too late. Don’t let your home go to foreclosure when there may be another option to get you out in one piece. Short Sale.

When homeowners are facing hard times and need to consider a work out with their mortgage lender there are a number of directions that can be taken. Understanding the terms associated with those options is critical if you are going to begin discussions with your lender.

There are two roads you can take when doing a work out with your lender.

Options when you can keep your home.

Reinstatement or Cure:

Your lender may allow you to make a lump sum payment to bring your mortgage current if you can show that funds from a tax return, bonus, or other source may be available in the near future. Many homeowners facing a family hardship typically do not have this option available to them.

• Get Help With your Colorado Foreclosure.
• Colorado Foreclosure time line.
• I can’t make my mortgage payments so what now?
• Find out the market value of your property now.
• How do I Price My Colorado Short Sale ?
• Short Sale Scams in Parker Colorado
  

Forbearance:

When a hardship has been overcome and the borrower’s income has returned, a forbearance may be available from their lender. This forbearance provides for the borrower to restart making the original payments on the existing note. An additional fee is added to the base payment in an effort to repay the delinquent principal and interest to the lender. This added payment can be added for a period of a few months to a few years depending on the amount of the deficiency and the ability of the borrower to repay.

Partial Claim:

This remedy is only available for an FHA insured loan. HUD/FHA has a provision which provides a onetime relief for the borrower to agree to an interest free loan for the deficiency amount. This loan is a second position note and does not have to be repaid until the property sells and the original FHA loan is paid.

Loan Modification:

The primary loan modification program in place today is the Making Homes Affordable program. This program is administered by HUD and provides incentives to the lender to modify federally insured & guaranteed loans (FHA & VA). The arm of this program associated with moan modification is called Home Affordable Modification Program or HAMP. Typically a HAMP modification will require the borrower to enter into a temporary arrangement with the bank to modify the mortgage for a period of typically 9 months. If the borrower is able to comply with the temporary program thy may be permitted to enter a permanent modification on their original loan. The borrower must be employed and able to show a verifiable income and the ability to pay to be accepted into this program.

Options when you cannot keep your home.

Foreclosure:

A foreclosure is the end result of the process the lender takes to recover the property after a loan default and all the legal remedies have been exhausted. The foreclosure will result in the most negative impact on the borrower’s credit and remains on his credit report for a period of up to seven years. The foreclosure also does not restrict the lender from perusing a deficiency judgment against the borrower for any deficiency left on the loan after they resell the property and all the fees and expenses have been paid. The only relief the borrower would have from this judgment would be bankruptcy.

Deed in Lieu of Foreclosure:

A remedy offered from the lender to the borrower in a situation where the lender is perusing a foreclosure on the borrower’s property. The Deed in Lieu of foreclosure gives immediate title and possession to the property to the lender so they can begin marketing it for sale. The benefit to the borrower is that, if they leave the property in good condition, the lender can pay them for some or all of their moving expenses and agree not to file a deficiency judgment against them personally.

Short Sale:

A very commonly used vehicle to provide for the sale of the property to a new buyer before the lender takes back the property through the foreclosure process. Most lenders have become very receptive to working with the borrower and their Realtor to facilitate the short sales so they are not additionally burdened by an increase to the number of properties they now own and are trying to sell in this market. The short sale will cancel any foreclosure action by the bank and typically provide for a quicker credit recovery for the borrower.

Short sales are a specialized form of real estate transaction. A homeowner should work with an experienced and qualified Realtor who specializes in this type of transaction. Your Realtor and their staff will insure that all of the elements of this transaction will take place properly.

Parker Colorado Luxury Homes

This is a report for the Luxury Home Sales in Parker and Franktown Colorado.

The high-end luxury home sales in Parker and Franktown Colorado is moving ever so slow at the moment. The report below will show you luxury home sales fron January 2010 to October 2010.

High-end homes are defined here as any home that sold and closed at or above the $750,000 price point.

I did not include homes sold in Elizabeth and Castle Rock but I can post that report later.

• Total homes sold above $750,000 = 34
• Average total days on market = 214
• Average NET sold price = $994,619
• Highest sales price in Parker and Franktown Colorado = $2,200,000
• Currently there are 7 homes in the luxury market that are under contract.
• Currently in Parker and Franktown there are 119  homes for sale in the Luxury Market.

See All homes in Parker for Sale between $700,000 and $900,000.

See all homes in Parker Colorado for sale over $900,000

Home Appraiser

The wonderful new system that our government has forced upon us is the HVCC. Home Valuation Code of Conduct. When you combine this with appraisers that are incapable and or incompetent then boy do you end up with a cluster… I’m not going to go into the full details of the HVCC but I did add a link above that you can go read and learn.

Here’s my story I wanted to share about my experience and how I believe the current new system is setup to:

• Prevent natural appreciation of a home, neighborhood, city or area.
• Allows appraisers, underwriters and banks the ability to control appreciation and market value in our real estate market versus the buyer and seller.
• Completely removes “Market Value” from the real estate industry. Market value being defined as what a ready willing and able buyer has agreed to pay a ready willing and able seller.

I have a seller that purchased a home next door to his mother. He bought the home years ago at a very low price and totally gutted the property. He took it down to the studs and replaced everything from the electrical system to the roof to the floors, kitchen and I mean everything.  It was basically a NEW house. There is not an old surface in the house. He did the same on the exterior. It was a CLASSIC over improved property for this neighborhood. He knew this and was reasonable in his understanding that he was not going to get all of his money back out of this property. Not even close. He was probably going to be forfeiting $50,000 or more from what he had in the property but it was all fine. He used and enjoyed the house for several years while living next door to his mother when he was in town. He has several other homes in other states and travels almost constantly. Got the picture?

So we listed the house $60,000 under what he had in the house. When we originally talked about listing the house last year there were several arms length closings and a few foreclosures and of course the short sales closings. We had comps that were going to be about $25,000 less than what we were going to list for. I seriously didn’t think it would be an issue once the appraiser and bank saw the comps and the upgrades in this home. I figured we could garner at least $25,000 for the more than $100,000 he had put into it.

Once we listed the house with it’s upgrades and ideal location it was an immediate showing success. We secured an offer within about 2 weeks and agreed on a contract price which was about $5,000 under asking. All was good and we were trucking to closing.

Weeks later I met the appraiser at the property and handed him some comps and the full list of everything that was done on the house. Showing the over $100,000 in repairs and upgrades that he could easily see and touch.

Then the bottom fell out.

Even though I had a comp (that he used) that sold for $20,000 more than this house he said our house was only worth EXACTLY what the last foreclosure in the neighborhood was worth.

How is this possible?

How can a remodeled home be EXACTLY worth a trashed out foreclosure DUMP?

I called the bank the other broker and the lender. They all agreed that their must be a major issue. We were over 20% off the contract price. This has never happend before to me, the buyer’s agent or the lender. What was going on? Lots of questions to be answered. How could a comp that sold for $20,000 over this one not matter?

The buyer really wanted this house and was still willing to proceed so we waited several days for an appraisal review. At this point the seller and the buyer agreed that as long as they got it close we would all do whatever we could to make it happen.

Oh yes it came back the same. No change at all. Didn’t even add one cent to the appraised price. Basically a dead deal at this point…No hope.

The underwriter, lender , buyer, seller and both brokers all agreed that the appraisal was wrong but the controlling forces wouldn’t change the price.

Obviously I believe the appraiser was so inept and a major idiot probably with an axe to grind so he took it out on this seller and buyer. Maybe he was so freaking stupid and scared to lose his license he wouldn’t step out on a limb and give the property a true value. I think a lot of it has to do with stupidity and laziness in the industry. He knew he was getting his check from the bank so what the heck. Why should he do any extra work and try to determine the real value of the house with it’s upgrades. WTF? Lazy, lazy, lazy.

Market Value = what a ready willing and able buyer is willing to pay a ready willing and able seller.

Market Value = What we the appraisers fell like valuing your house for on a particular day if we feel like working that day.

This just lets us know that if the appraiser and bank don’t want your neighborhood to appreciate it ain’t going to happen.

So maybe all the people fixing up their homes right now should NOT do it? Are home remodels a total waste of time and money?

With a system like this neighborhoods cannot appreciate.

Details:

List price $265,000

Contract price: $255,000

Over $300,000 in the house for the initial purchase and remodel. Top of the line beautiful remodel. Move the house across the reservoir into Greenwood Village and it would have sold for $400,000 +.

Comps. #1 = $283,000, #2 = $205,000 and #3 = $212,000.

The house appraised for $205,000. REALLY? What a dumb-ass.

I feel better now at least I got this off my chest.

Are tax deductions worth the interest?

Should you pay off your mortgage? I think most people should.

Today I’m talking about mortgages, paying them off and what I consider to be a load of crap pushed on home buyers by the lenders of America, accountants and YES the real estate brokers.

I’ve never understood why everyone says “oh you have to have a mortgage because you get the tax write off.”

I say BS. Wouldn’t it be better to have a paid for house with no interest payment and just pay the tax?

Here’s my way of thinking and no it didn’t originate from me. I was raised by two depression era grandparents that were basically in a steady savings cycle preparing for the next GREAT DEPRESSION.

(BELOW-I may be off a little but I hope you are getting the picture. I’m going off memory as I did not go into the basement and dig out my tax returns to write this post.)

Two years ago I remember looking at my year end taxes and seeing that my wife and I had paid around $14,000 in interest to the bank over the year. I also noticed that my WONDERFUL tax deduction was around $2,400.

So basically I have to pay a bank ~ $14,000 in interest to keep from sending the government $2,400. Is this the Great American Home Tax Deduction everyone says is so wonderful?  Not to mention over the life of these mortgage loans you pay hundreds of thousands in interest to get in my opinion “NOT MUCH” in the way of a deduction.

It looks like a load of goods the banks & government put together to make us feel batter about all the interest the banks charge us.

Personally I think I would rather send the government their tax and just keep all my interest. Besides living in a paid for house has got to be a GREAT FEELING. Think about it. You are recession proof. If you lost your job you could easily go work at an hourly job and make the yearly tax and insurance payments. Hopefully it would only be temporary..right?

Vacations Paid For in Advance

I talked to my accountant about ways to payoff our house and told him that  over our lifetime it would save my wife and I nearly $200,000 in interest. He told me “oh, well if you do that you won’t get your deduction.” I explained my theory to him and he still tried to tell me I needed this deduction. When I asked repeatedly why I have to have this deduction he couldn’t give me a real answer. He like so many others in the country have been brainwashed into thinking that we MUST have our deduction. Again BS.

Pay your house off and live like a Prince or Princess and have your income to save, invest and SPEND as you wish. Can you imagine that?

The other side is my investment adviser. He says “Steve you need to be putting money away for retirement.” Well, we are still saving. He says all that money in the house could be earning more money in the market. REALLY. Have you seen the market? I don’t know about you but a few more of these every 10 year implosions and I’m done with “the market.” I have highly paid professionals begging for alternatives to the stock market. They all love  real estate right now. YEAH.

If you have your house paid for at an early age and have the remaining years of your working life to save, invest and actually enjoy a paid for vacation how would that feel? I think it would feel pretty damn good wouldn’t it.

No matter how you do it I think paying off your home as quickly as possible is the best way to go. Here is a recent article to help prove that it isn’t just me thinking this way. A lot of Americans are starting to see the benefits of being free from all debt and especially the home mortgage.

I think this guy, Dave Ramsey, has a lot going on in his debt free classes. A few years ago my wife and I went to his Financial Freedom class in Colorado Springs. We were basically on his program without knowing it. His word is true and if you stick with it you too will live like no one else so you can then live like no one else. Think about it. If you live frugally for several years to payoff all your debt it will allow you to live the rest of your life debt free. Plus along the way you will learn tricks (personal self control)  that you apply once you become debt free that will save you money after you become debt free.  In our society putting off our instant gratification so we could possibly live a better and more financially rewarding life in the future is a TOUGH sell.

I’m sure there are people out there that have different circumstances, needs and investment goals so this may not apply. But I believe for the average middle class person/family this is a viable option and should be explored. Just a few years ago talking about this to friends and clients was a dead end and they all thought I was a crazy person but now they seem to be coming out of the wood work to share their new goals of paying off their house.

Steven Beam is a CRS Realtor in Parker, Colorado. See client testimonials.

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