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

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

What is the market value of your property?

The market value of your property as seen by a buyer and an appraiser

The market value of your property is not:

• what you have in it
• what you have to get out of it
• what you want to get out of it
• what you owe against it
• what it appraised for
• what your neighbor got for his/her home
• what the county assessor has said it is worth
• what the homes cost where you are moving
• how much it is insured for
• how you value your memories  

The market value of your home is what a buyer is willing to pay for it, what you are willing to sell it for, and what an appraiser values it at, based on:

• current market conditions
• current competition and buyer’s choices
• current interest rates and mortgage lending conditions
• the buyer’s perception of the condition of the property
• the location
• current normal marketing time
• accessibility of property for showings

As a seller you control:

• the price – price the property near the “front of the line”
• how the property presents – stage your home
• terms – offer attractive terms:  financing, timing, inclusions
• condition – make appropriate repairs
• access to the property – provide reasonable access for showings

As a seller you do not control:

• market conditions – supply and demand
• interest rates and credit conditions
• location
• competition’s motivation
• motivation and ability of buyers

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.

When You List Your Property With Me…

Your home will be advertised on MANY websites, including:

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

Seller Alert – Get Cashier’s Check at Closing

The mortgage crisis and the global economic crisis are affecting title companies.

Protect yourself and your investment.

There have been title company failures, mergers and buyouts.

If you are one of the lucky sellers who has been able to find a qualified buyer for your property, and expect to walk away from the closing table with some profit, be sure you get your funds as “good funds”.  A cashier’s check is best.  Wired funds can be rescinded within 3 days of receipt.  A cashier’s check provides more reliable funds.

MLS Statistics October 2008

Residential and Condominium Homes

All Areas

Information from Multilist and deemed reliable but not guaranteed.

 

		Change vs
	Oct 08	Prior Month %	Year Ago %
Single Family (Res + Cond)
Active	23,120	-3.36	-20.08
Under Contract	4,504	-14.52	-3.04
Sold	4,282	0.40	11.28
Avg DOM	95	-1.16	-1.69
Avg Sold Price	$232,284	-2.98	-12.42
Residential
Active	17,842	-3.54	-18.70
Under Contract	3,649	-14.00	-0.76
Sold	3,386	0.59	12.23
Avg DOM	93	-2.11	-2.11
Avg Sold Price	$250,172	-3.82	-13.66
Condominium
Active	5,278	-2.75	-24.39
Under Contract	855	-16.67	-11.67
Sold	896	-0.33	7.82
Avg DOM	102	0.00	0.00
Avg Sold Price	$164,686	1.68	-6.55

© 1998-2008 Metrolist, Inc. All rights reserved.

 

Conservatorship for Fannie Mae and Freddie Mac

The rumors were correct.  Yesterday the federal government placed Fannie Mae and Freddie Mac into conservatorship.  This will cost the taxpayers tens of billions of dollars.  Stockholders in the companies will not get dividends.

Fannie Mae and Freddie Mac together hold 5 trillion dollars worth of mortgage liability.  The failing housing market and poor U.S. economy have put stresses on these companies that they could not withstand.  So the Feds have stepped in.  Some economic experts say this will be a great help in the short run, but will fail in the long run.  Time will tell.