This afternoon, I had a great conversation about the Estes Park real estate market with Rich Flanery of Cherry Creek Mortgages (a local Estes Park Mortgage Broker who calls himself a “loan consultant” – I like that). In our conversation we talked a lot about where mortgage rates are, where they’ve been and where they are headed in the near future. Rich had so many good things to say, that I asked him to send it to me in writing so I could share it with all of you!

Life is all about second chances. If you are in the market for a new home it appears you may have been given a second chance. Just a few weeks ago, mortgage rates were at historical lows. However, in just two short weeks, mortgage rates have shot up dramatically. The main reason for this is the prospect of future inflation because of all the money the Federal Government is printing in the form of Treasury bills, notes and bonds. But I anticipate that we will see a reversal in this rate trend and will watch rates move lower. A word of caution, it is unlikely that we will see rates moves to the levels we were at just a few weeks ago.

Currently homes have never been more affordable, first time homebuyers are eligible for an $8,000 tax credit and rates should begin to slide back down again. If you are in the market than you have a second chance at very affordable housing. This window won’t last long as current economic indicators reflect that rates could start moving higher as we move towards the end of the year. Rich Flanery CMPS® Certified Mortgage Planner

Feel free to contact Rich with mortgage questions about Estes Park. I am sure he would be happy to help. Unfortunately, he tells me he really doesn’t have a crystal ball, though.

If you ARE interested in pursuing Estes Park real estate, now is the time to do it. Give me a call or email and we can formulate a plan for you to take advantage of one of the best real estate buying environments in a long time.

Real Estate jargon can be confusing to the average real estate buyer purchasing a property in todays real estate market. Fortunately, Estes Park has relatively few distressed properties compared to the rest of the nation. However, we are not exempt from troubled properties and it is good for buyers and sellers to understand the real estate terms associated with these troubled properties.

Many buyers and sellers (and even some real estate agents) have trouble differentiating between a short sale, REO property and the different stages of the foreclosure process.

Short Sale

A Short Sale occurs when the seller of a property owes more than the property’s market value. A short sale requires bank approval to forgive the difference between the purchase price and the loan balance. Typically, short sales are not approved without proof of hardship to the seller causing the sale of the property. Bank approval for a short sale can take anywhere from 2 to 6 months to process.

Short Payoff

A Short Payoff occurs when the purchase price of a property is less than what is owed, however, the difference is not forgiven. A settlement is arranged for the seller to make up the difference to the bank through an unsecured loan.

Foreclosure

The foreclosure process is the process by which a bank takes title to the property as a result of non-payment of debt on the part of the property owner. The process begins when the bank serves the property owner with a Notice of Election and Demand. The bank then schedules a public auction to take place 110-125 days after recording the Notice of Election and Demand. Check out this web site for more information on the foreclosure process in Colorado.

REO Property

REO stands for “Real Estate Owned” and is the same thing as a bank owned property. The foreclosure process has run its course and the bank now owns the property.


Are you looking to purchase a distressed property in Estes Park? Contact me for an up to date “Distressed list” of bank owned homes, short sale properties and fixer uppers.


Photo Credit: Jeff Turner

I get this question from just about everyone who knows that I am a real estate agent in Estes Park. The answer is a bit more complicated than a “Good” or a “Could be better!” answer.

Headlines proclaiming the latest astonishing statistic about the state of the real estate market can be found just about everywhere you look. Foreclosures, short sales, and distressed properties dominate the marketplace and media space in most parts of the nation.

Why is Estes Park Different?

The Estes Park real estate market marches to the beat of a different drum because it is a second home market. Typically, property owners who buy real estate in Estes Park are usually very well qualified to do so. Most buyers have 20% or more of the purchase price to contribute toward a down payment.

This financial strength among property owners (who eventually become sellers) tend to diminish urgency when it comes time to sell the property. Typically, they don’t have to sell immediately to avoid foreclosure, bankruptcy or to avoid some other financial catastrophe. Sellers are willing and able to wait longer to get their price.

Sellers who are financially able to wait are actually helping the market by not allowing drastic price reductions. Properties that are selling are still getting fairly close to their asking prices even if they are taking longer to sell.

What kind of activity is taking place right now?

Attractive properties at attractive prices are still selling. However, there are also a growing number of properties sitting stagnant without a lot of action from buyers.

Activity on the Buyer side has picked up quite a bit since Christmas. EVERYONE is looking for a “deal” and it is very common for offers to be 10% to 15% or more off the list price. Most times these offers never even come together, but from time to time a buyer gets lucky.

The biggest problem buyers are running into these days is financing…but that is a topic for another day.

Here are links to more information about the Estes Park Real Estate Market:

Still can’t find what you are looking for? Contact me with your specific questions.

Graphic provided by http://bigphoto1.blogspot.com/

Here are the 5 Myths:

1. Sellers today are desperate
2. Don’t buy before prices have bottomed
3. You can’t buy a home unless you have 20% down
4. Now’s the absolute worst time to sell
5. Before you refinance, shop around

Does this apply to real estate in Estes Park?

I am definintly seeing these myths permeating the attitudes of buyers and sellers the local Estes Park real estate market.

1. The majority of sellers in Estes Park are not desperate. In the video, Barbara Corcoran mentions the ratio that 1 in 10 Sellers are “desparate.” However, I would venture to say the ratio is more like 1 in 20 (or more) Sellers in Estes Park because of the large presence of 2nd home and vacation home owners. These people are usually financially capable of waiting for their price. Of course, there are properties available that are more desperate than others. (As a side note, I do keep a running list of distressed homes for sale. Contact me for more details.)
2. Prices in Estes Park are not declining as you can see in my market statistics commentary on this blog. In Estes Park, we are seeing a decrease in demand because people are fearful of prices dropping due to all the negative hype in other markets. I believe there is a lot of pent up demand waiting to buy property. As soon as demand starts to pick up again, I think we are going to see a huge jump in the number of homes sold in the next couple of years.
3. This is also true for Estes Park. While you may get the most favorable terms with 20% down, having less to put down does not eliminate you from buying a home. My recommendation is to talk to a mortgage broker and/or your bank about what programs you may qualify for before ruling out a home purchase.
4. While it may be difficult to sell a property in Estes Park right now, it is not impossible. Buyers are still buying property but they are only looking at property where they know they are “getting a good deal.” The most important thing in this market is to be a better value than your competition. In other words, price your property correctly or you may be waiting a very long time to sell. You need to be the most attractive home at the best price to get any attention from buyers.
5. My opinion is to go ahead and shop around but don’t forget about your current bank when considering a refinance. Be sure to weigh all costs involved including closing costs and other fees. Also be careful about how many inquiries you make that may count against your credit score.

Thanks to Ines Hegedus-Garcia of Miamism.com and Agent Genius Fame for the video. See her original post here.

Comparing the recent performance of the stock market and the real estate market in Estes Park, Colorado, I would have much rather bought a home or condo in the last 2 years than invested money in the stock market.

Take a look at this comparison between the last two years of the Dow Jones Industrial Average and Median prices of Homes and Condos in Estes Park (trailing 12 month totals). Median Prices for homes and condos have increased 10% over the last 2 years compared to a drop of over 20% for stocks.
This time frame also represents a time when the median prices of the national real estate market dropped considerably. When the national real estate numbers “correct” themselves, Estes Park could be in for another jump in prices.

I stumbled upon this phenomenal artical on one of the real estate news sites that I follow and I really think you should take a look. This is by far the BEST commentary on what is going on our financial markets. Its easy to understand and make sense of the issues at hand and how they affect the real estate industry and ultimately the local Estes Park real estate market as well. Enjoy the article compliments of and credit to Jeff Corbett via Agent Genius real estate blog.

If you’ve been anywhere near national news web sites in the last several days, I’m sure you’ve at least seen or heard the names of Fannie and Freddie pop up once or twice. Just do a Google News search for Fannie and Freddie (or click the link since I already did all the hard work for you) and you’ll have plenty of reading material for the rest of the day. You might even learn a thing or two about the national mortgage market and how our mortgage system works.

I’ll spare you the boring details and get to the bottom line of what this means to buying a home in Estes Park. Mortgage rates are extremely low. Local mortgage broker Harriette Woodard of Estes Park Mortgages, is now quoting rates as low as 5.5% for qualified buyers which is big drop from previous weeks.

There is a lot of talk in the mortgage world trying to predict just how long these low rates are going to stick around. The only thing I can say is “there are no guarantees” in the mortgage world these days. If you have had thoughts about purchasing property and were worried about rates, NOW is the time to buy property. Give me a call or email and we can get started on the process of buying you a home today.