Help for Denver Homebuyers

If you are buying a home in the City and County of Denver in the near future, you will be eligible for a federal income tax credit.

For the life of the loan, 20% of the interest on your mortgage loan will be returned to you in the form of a tax credit.

The Mortgage Credit Certificate Program is anticipated to last through December 31, 2011, but if the $25,000,000 available is used before then, the program will cease.

Available to first time buyers (defined as persons who have not owned real estate for 3 years), the program also has income limits and purchase price limits.  Non-first time buyers are eligible for the program if they purchase within one of several targeted areas in Denver.

For families of 1-2 persons, maximum income limits are $88,600 if the home is in a non-targeted area, and $91,200 for a home purchased in a targeted area.

For families with 3 or more persons, the income limits are $101,900 and $106,400.

Homes in non-targeted areas must have a maximum price tag of $354,900.

Homes in targeted areas can cost up to $433,800.

This program requires that the buyer attend a class and receive a certificate once completed the course.

Qualifying for this program does not preclude your eligibilty for the $8,000 federal tax credit that is currently available through November 30, 2009.

For more information on MCC, please click here.

If you’d like to be put in touch with one of the mortgage lenders that is participating in this program, please give me a call or email me.

to sell or buy, call…

DEBBIE PALLAI

www.debpallai.com

debpallai@comcast.net

Radon: what is it? why should you care?

You can’t smell it.  You can’t taste it.  You can’t see it.

Radon is a naturally occurring radioactive gas that causes cancer.  It is the  leading cause of lung cancer among non-smokers in the United States.

Radon can be easily detected and mitigated.

When you are purchasing a home, have your home inspector do a radon test.  If the readings come in higher than 4.0, have a radon mitagation company fix the problem.  It is relatively inexpensive both to test for radon and bring the levels within EPA standards.

You can test your home yourself.  Home testing kits are available in many home improvement stores.

Click here to learn more about radon.

debpallai@comast.net

www.debpallai.com

Denver Homebuyer Green Program Incentive

The Denver Board of Realtors® reported today that Denver is conducting a green pilot study for homebuyers. 

The program includes a free walkthrough of prospective homes, and discounts on furnaces, insulation and appliances.

In order to qualify, the home must be a single family detached home, have a Denver address and be built before 2000. 

This is a voluntary program with no requirement that the buyer purchase any upgrades.

 For further information, please contact: 

Matt Gibbs
University of Colorado Denver
Director, GAAN and IGERT programs in Sustainable Urban Infrastructure
MATTHEW.GIBBS@email.ucdenver.edu
(303) 501-9075

debpallai@comast.net

www.debpallai.com

3 Lenders Suspended by FHA

FHA cracking down on violators

Three lenders, Golden First Mortgage Cop., Beneficial Mortgage Corp., and Great County Mortgage Bankers are being investigated for allegedly violating FHA regulations.  They are prohibited from originating FHA loans until the investigation is complete.

The suspension is likely to have a serious impact on the volume of loans these companies originate, as FHA loans are currently very popular. 

FHA has increased its vigilance against unscrupulous lenders.

For more details, and further links, click here.

debpallai@comcast.net

www.debpallai.com

Walk Score Comes to Denver Metrolist

Denver Metrolist has added a new field to its program:  walk score.

Brokers can now search for homes for their clients by putting a minimum walk score into the search parameters.

A home’s walk score is calculated by locating nearby stores, parks, restaurants and more. 

Metrolist is responding to the growing demand by some buyers to purchase homes in neighborhoods where their environmental footprints will be reduced.  The demand for homes that are located in areas where one can live a car-light or car-free lifestyle is increasing.  Although public transportation is not part of the walk score calculation, light rail has added to the consciousness about this issue.

The higher the score, the less driving required to live in the neighborhood.

• 0-24       Car-dependent.  Virtually no destinations within walking distance.
• 25-49     Car-dependent.  Few destinations within walking distance.
• 50-69     Somewhat walkable.
• 70-89     Very walkable.  It is possible to manage without a car.
• 90-100   Walkers paradise.  Most errands can be done on foot and many folks in the neighborhood don’t own cars.      

For more information go to www.walkscore.com.

If you’d like help calculating the walk score of your current home, please email me at debpallai@comcast.net or call me at 303–883-8837.

I Repeat: $8,000 First Time Buyer Tax Credit

The first time buyer tax credit won’t be around forever.

Transactions must be completed by December 1, 2009 and purchasers must occupy the property as their primary residence.  This program is for first time buyers, defined as anyone who has not owned a home for 3 years. 

The tax credit is for 10% of the purchase price, up to $8,000.  There are some income limitations.

If you know anyone contemplating a purchase this year, please let them know this program exists.

For more details, please click here or send me an email or give me a call.

debpallai@comcast.net

303-883-8837

Carbon Monoxide Detectors Required Upon Sale

and in rentals.

Colorado HB 1091  requires that sellers or landlords of residential properties install a CO alarm within 15 feet of the entrance to each room lawfully used for sleeping.  This law goes into effect on July 1, 2009.

So, if you are planning to sell your home soon or have income property, it would be prudent to install the necessary carbon monoxide detectors now. 

Even if you are not planning to sell your home, a CO detector will help alert you and your family if readings are high.

Protect Yourself! Read the HOA Docs.

“I WON’T read the docs!”

“You MUST read the docs!”

“I WON’T read the docs!”

 

 

  

“You MUST read the docs!”

 

“I’ll save you, Nell.”

 

 

While I always encourage my clients to consult with an attorney when they are buying property, this is one thing I wouldn’t leave to anyone else. 

YOU MUST READ THE HOMEOWNER ASSOCIATION DOCUMENTS!

Your attorney doesn’t know if:

• You sing opera in the shower at 2 am
• You take in your sister’s pit bull for 2 weeks every year when she is on vacation
• You plan to bring clients into your home
• You plan to rent out the basement

Rules and regulations, Declarations, Covenants and By-Laws vary from community to community.  These are the governing documents for the entity. 

Just as municipal, state and federal laws define what are acceptable and punishable behaviors, so do community docments.  These documents help preserve the peace and safety of the members of the community, as well as the property values.

As a buyer, you will also be provided copies of financial documents and copies of the minutes of recent homeowner meetings before closing.

PLEASE review all materials CAREFULLY.

And PLEASE check the zoning laws, as well.

I have heard numerous sad stories over the years of folks who didn’t bother to read  the condo or neighborhood rules–stories of buyers having to give away their beloved pets, for example, and stories of folks thinking it wouldn’t be a problem for them to bring clients to their home for massage or psychotherapy.  Many condos and neighborhoods do not permit businesses to operate out of the homes.  Many have pet restrictions.

If you are among the folks who don’t like restrictions, do not buy into a condominium or neighborhood with rules.  It will only make you and your neighbors unhappy.

debpallai@comcast.net

Greening My Business

I’ve been taking small steps to practice real estate in a more sustainable way.

I drive a hybrid car.

When I print MLS descriptions for my clients, I reuse paper.  I’ll use the back of brochures and flyers I’ve received at the office and the back of left-over brochures from my listings. 

I used to leave 8-10 packets of disclosures on each property I listed.  Now I upload those documents to DocBox on our MLS system.  Selling agents can access them there, or call me to email them the disclosures.  This reduces my paper use and eliminates my driving to listed properties to replenish the disclosure packets.

These are modest and easy ways to care for our planet.  I urge my colleagues to join me in this effort and to share their strategies and techniques for reducing our impact on the environment.

debpallai@comcast.net

Inspect Your New (new construction) Home

Even a new home can have problems.

When you buy a new home, you generally have the opportunity to do a “walk-through” before closing.  During the walk-through, you’ll make a “punch-list” of issues that the builder will generally address after closing.  These are usually cosmetic issues.  Perhaps there’s a nick in the paint, or a missing switch plate.  The builders generally have a system in place to get these issues fixed quickly.

And because you are buying a new home, and permits have been pulled and a Certificate of Occupancy has been granted by the appropriate local government entity, you assume that all systems have been installed properly.  After all, they’ve passed inspection.

I recommend you have an independent home inspector check the house for you before closing.  On one new construction home purchase in which I was representing the buyers, the inspector found three significant problems, one of which was a serious safety issue.  The builders repaired all three issues before closing.  The buyers and I were very glad they had hired the inspector, even though it cost them about $200 to do so.

In Colorado, there is no licensing or certification of home inspectors.  Anyone can call her/himself a home inspector.  Be sure you are hiring someone with experience and training. 

Founded in 1976, The American Society of Home Inspectors (ASHI) is the oldest professional organization of home inspectors.  Prospective members must pass a Standards of Practice Exam and pledge to adhere to a Code of Ethics.  The organization offers classes for their members, and keeps them current on the safety and health issues of home construction. To learn more about ASHI and to find an ASHI inspector in your area, go to their website at www.ashi.org.