Cherise's Blog

Now is the Time! Summary of the Housing Stimulus Bill

Cherise Selley (Heritage Realty) — Mon, 11 Aug 2008 18:18:58 -0500

Need more information on this Stimulus Bill? The following link will take you to the key points related to the recently passed as provided by the National Association of REALTORS® Summary of Key Provisions of H.R. 3221 - The Housing Stimulus Bill (as of 7/30/08).

What great news, especially for first time home buyers, which includes a $7,500 tax credit for qualifiying buyers. See the following link for more information, or contact us and we will put you in touch with a qualified lender. We must take advantage of these great opportunities for buyers!

http://www.realtor.org/gapublic.nsf/pages/hr_3221_key_provisions

Resurfacing - An Alternative to Repouring Concrete

Cherise Selley (Heritage Realty) — Tue, 05 Aug 2008 18:13:32 -0500

Here is a thought, instead of repaving a sunken or disfigured front porch or driveway, you can resurface it, using the latest techniques that are very resistant to Colorado's weather changes. There is an endless assortment of colors and designs, and this application works well for driveway resurfacing, basement floors, kitchen countertops, etc. It is a lower cost alternative to pouring new concrete - check it out at www.csd-dc.com. Pretty cool stuff!

The Garden Analogy

Cherise Selley (Heritage Realty) — Fri, 01 Aug 2008 17:24:16 -0500

Recently, when I was telling a close family member about what I do as a Realtor, it finally dawned on me: My business is like a garden; my clients are the flowers that have been planted. When the garden needs tending, the gardener simply knows when a good watering needs to happen. Sometimes leaves have to be plucked, branches have to be torn off, and sometimes certain plants have to be removed to allow others to grow. Many people over the years have asked me why I have been successful in real estate. It always amazes me to be asked that question since deep down, I oftentimes feel as fragile as the flower that is about to bloom in the garden. However, the gardener is not responsible for cloudy days, nor can the gardener control if a natural disaster shakes the very core of the garden. As the gardener, I have no ability to make any plant grow nor do I know the complicated science behind it. All I know is that I am supposed to tend to the crop that has been planted, and know that in due time it will be a gorgeous symphony of blooming life. "Just be patient and wait out the season until the vines ripen!" Even in a difficult market, there is still a garden of clients in the community. Typically, I find that the process of tending to the client requires leaning on that good old-fashioned gut level intuition ... clients still have to buy or sell a home and need good counsel. If I viewed myself as a sales person, I would have quit real estate a long time ago. However, when I view myself as the tender of the garden, I will wait with expectancy and allow the process of blooming to occur...

Housing & Economic Recovery by Bart Swan, CMPSR with credit to Marc Savitt, President of NAMB

Cherise Selley (Heritage Realty) — Fri, 01 Aug 2008 16:25:35 -0500

Here is an e-mail that I received from Bart Swan, CMPSR, President, Owner of Superior Home Loans, LLC with credit to Marc Savitt, President of NAMB concerning the Housing and Economic Recovery Act of 2008. I am blogging this by permission and would like for this to shed more light on the new bill:

"I am pleased to announce that yesterday morning President Bush signed into law H.R. 3221, the Housing and Economic Recovery Act of 2008.

After months of negotiations between the House and Senate, as well as an initial veto threat by the White House, I am confident that the final version of this bill will serve as a foundation for responsible solutions to the current market realities today and into the future.

H.R. 3221, perhaps the most significant piece of housing-related legislation we have seen in recent years, implements necessary consumer protections while promoting stabilization of the current market and industry through reforms to the Government Sponsored Enterprises, Fannie Mae and Freddie Mac, (GSEs) and the Federal Housing Administration (FHA) program.

I have heard many people talking about the passage of this law, and as can be expected with any new legislation, there have been some misunderstandings especially in regard to the "tax credit" for first time homebuyers of $7,500. Because you're a Realtor, I thought it would be beneficial to send some of the highlights from the bill. These highlights were sent to me via email by Marc Savitt, CRMS, President of the National Association of Mortgage Brokers (NAMB).

* All-Originator Registry: Establishes a nationwide loan originator licensing and registration system that will set minimum standards for loan originator licensing substantially improving the oversight of all originators. In addition, all loan originators - lenders, banks, credit unions and mortgage brokers - must register with the Nationwide Mortgage Licensing System and Registry and go through a criminal background check (except loan originators working for Federally-chartered institutions).

* First Time Homebuyer Credit: Allows first-time homebuyers of a principal residence in the United States to take a tax credit of 10 percent of the purchase price of the residence (not to exceed $7500).

The credit will begin to phase out if single taxpayer's income exceeds $75,000 per year or the couple's income exceeds $150,000. The credit will be paid back over 15 years and applies to residences purchased between April 9, 2008 and July 1, 2009.

* FHA Modernization: Effective January 1, 2009 it increases FHA loan limits for single-family residences to the lesser of 115 percent of the local area median home price (but no lower than a floor of 65 percent of

$417,000) or 150 percent of the GSE high cost loan limit of $417,000 or $625,500 (similar increases for other 2-4 unit single-family properties); establishes a 12-month stay on FHA's proposal for risk-based premiums; sets the down payment requirement at 3.5 percent; and prohibits seller-funded down payment assistance (both direct or through a third party). Authorizes a

$25 million appropriation to improve technology, processes, program performance, eliminate fraud and provide appropriate staffing.

* GSE Loan Limit Increases: The loan limits were set at thegreater of 115 percent of the local area median home price or $417,000 for a mortgage secured by a single-family residence, $533,850 for a 2-family residence, $645,300 for a 3-family residence, and $801,950 for a 4-family residence. These limits will take effect January 1, 2009. For high-cost areas, the loan limits are adjusted to a cap of 150 percent of the GSE limit of $417,000 for a one-unit property or $625,500. These limits will take effect January 1, 2009.

* GSE Oversight Reform: Creates a new regulator (five-year term,appointed by the President, confirmed by the Senate) with oversight authority similar bank regulators, establishes a new affordable housing fund and capital magnet fund to be funded by a 4.2 basis point fee on all new loans, significantly changes the affordable housing goals and raises the conforming loan limit to the higher of $417,000 or 115% of the local median home price, not to exceed $625,500 (effective January 1, 2009).

* FHA Rescue: Creates a voluntary program for lenders to writedown the loan balance in exchange for an FHA guaranteed loan not to exceed 90 percent of the newly appraised value of the home. The lender would pay a 3 percent FHA loan origination fee. To qualify, the borrower must have a debt-to-income ratio above 31 percent on the original loan. The program is capped at $300 billion.

* GSE Stability: Authorizes the Treasury Secretary to temporarilyincrease the GSEs' line of credit and to, if necessary, buy equity in the GSEs in order to provide confidence to credit markets. Also provides a role for Treasury and the Federal Reserve in GSE oversight to ensure safety and soundness.

* TILA Reform: Requires TILA disclosures to be delivered sevendays prior to loan closing, requires that disclosures include examples of how payments would change based on rate adjustments in addition to disclosing the maximum possible payment under the loan terms and mandates that the consumer receive early disclosures before paying anything more than a nominal fee that covers the cost of a credit report."

Colorado Springs Market Update

Cherise Selley (Heritage Realty) — Thu, 24 Jul 2008 17:21:25 -0500

Here are the latest MLS summaries from June 2008:

Average Home Price for a Single Family Home is $256,829 (down 7.0% from $276,148 in June 2008).

The total active listings are about at 6,595 which is 4.0% less than last year.

Single Family Sales for El Paso County are down 22.5 from June 2007 (867 sales in June of '08 vs. 1,118 sales for June '07).

One of my favorite appraisers recently told me that she is seeing about 5-10% play in the market on the contracts that come in that she is reviewing.

BUYERS: Interest rates are creeping up to the mid and upper 6's so I recommend that now is the time to buy. Remember that each MLS area has a different list price to sales price differential (for instance in Briargate, homes are on average selling within 97.7% of their list price (after their last reduction).

SELLERS: Don't despair, prepare! Staging, accurate pricing, strong Realtor negotiations, and patience are the key for you to have a successful selling experience. This is not a "test the waters" type of market, so if you can wait until the market picks up, I think it is advisable.

All in all, Colorado Springs is a very desirable place to live and we still have lots of clients moving here from all parts of the country. If you have further questions, call us ... we are here to help!

Just how many Realtors are there in the Pikes Peak Region????

Cherise Selley (Heritage Realty) — Tue, 22 Jul 2008 13:33:33 -0500

I have heard rumors that up to 1/2 of Realtors have dropped out of the Pikes Peak Association of Realtors. It is time do dispel some of this underlying fear and let folks know that this is simply not the case. I just got of the phone with PPAR, and they said that we have approximately 3,750 members for the Pikes Peak Region, which is not that large of a drop off from approx. 4,000 members the last time that I inquired about a year ago. Realtors, unite!

Making a Decision...

Cherise Selley (Heritage Realty) — Wed, 16 Jul 2008 16:36:19 -0500

Amazing, there really are some buyers out there! However, my personal experience is that they are treading more carefully than ever. Many of them that I personally have been working with over these months are feeling overwhelmed at the surplus of inventory available in their price range. I would say that most buyers are waiting for ... da, da, da, "The Deal." However, it has become more and more of my job to help lead our buyers to the right point of decision for their personal needs. Ultimately, I will never push or demand, but will invite them to make the best choice with the best data that we can provide. Maybe some of the points below may remove some of the "overwhelm" from the process:

Financing First: Having the right kind of financing in place is more important than ever. A quick prequal from a mortgage broker just doesn't cut it anymore. Guidelines have changed. Having a down payment is essential, credit scores have tightened up more than ever, and loan programs have disappeared at a rapid rate. Getting loan approval from a reputable lending institution that you and your Realtor are comfortable with is a must before looking at properties. Have an approval letter in hand before ever looking, along with a Good Faith Estimate which breaks down the cost of getting the loan.
Prioritize: Decide what the "have to's" are in the house and area. If it is driving distance to work, schools, location, etc.
Set Correct Expectations: Understand list price vs. sales price for your particular market. Our MLS actually breaks each area of our town and averages out the sales prices for that region. It oftentimes surprises buyers who enter into town from another market area only to discover that here, their preferred housing area may be selling within 2-3% of list price (Yes, even in this market).
Foreclosures vs. Bank Owned: In reference to forclosures in our market, be prepared that the entire sum for the awarded bid is due at the time of auction. Many buyers do not realize that the majority of homes awarded with a certificate of purchase are actually bought back by the bank. I have personally found that for most buyers, finding a bank-owned home is a better fit for them as they can get a loan on a bank-owned home.
Short Sales: Dismiss the word "Short" from the term Short Sale and be prepared that it can take up to 3-4 months to hear back from the bank on these homes.
Live Life: OK, we are all experiencing the sting of the economy to some degree or another. However, having a home and the stability associated with settling into a home is worth the risk.

Collapsible Business Model

Cherise Selley (Heritage Realty) — Wed, 25 Jun 2008 21:34:23 -0500

Having a "collapsible" business in times of economic uncertainties is one of the beautiful things about having a real estate business. In times of market changes, you can adjust your business to respond accordingly. There are many areas where cuts can be made to a business without compromising the services to the client. A small example: I discovered recently that we were paying for four additional "back up" phone lines, available if our internet ever needed to return to the old dial-up days. For quite some time we were paying for something that we didn't use (thankfully have not had to revert back to the dinosaur days of dial-up internet speed). What areas can you streamline in your business? I encourage you even as this may be the middle of your busy season to look at your expenses and trim the areas of excess spending. It will set you up to maximize profits. I have come to the conclusion that I would rather invest in the people around me rather than things that add little to no value to the team.

Is the Sky Falling in Colorado Springs?

Cherise Selley (Heritage Realty) — Tue, 17 Jun 2008 16:27:48 -0500

The housing market ... is it really that bad in Colorado Springs? The latest MLS stats help to shed some light on those fears. According to the numbers posted for May 2008, the Average Home Price for a Single Family Home is $251,543 vs. $267,361 for May 2007. This is a difference of about (5.9%). The total active listings are about 6,396, about 2% less than May 2007. Single Family Sales for El Paso County are down 18.6% from May 2007 (there are 840 MLS recorded sales for May 2008 vs. 1032 recorded sales for May 2007). All in all, Colorado Springs experiences gradual levels of market gains and losses, and it appears we have been somewhat insulated from some of the huge market changes experienced in other parts of the country.

With that said, if you are a buyer, you may not have a better time than now to buy! This is the best market that I have experienced for buyers in the last 11 years of selling real estate.

If you are a seller, we can still get your home sold! Staging, accurate pricing, strong Realtor negotiations, and patience are keys for you to have a successful selling experience. This is not a "test the waters" type of market, so if you can wait until the market picks up to sell, I think it is advisable.

All in all, Colorado Springs is a very desirable place to live and we still have lots of clients moving here from all parts of the country. If you have further questions, call us ... we are here to help!

Colorado Springs Realtor - Cherise Selley - Team Work

Cherise Selley (Heritage Realty) — Mon, 12 May 2008 12:31:41 -0500

Colorado Springs Realtor -Cherise Selley - If you happen to be a part of a real estate team, I encourage you to resolve any conflict within the organization. Research shows that conflict is actually the top reason that teams do not work. It is not what one would think, given concerns about resources, unrealistic deadlines, market conditions, just to mention a few. In order to forge onward, teams must be able to tone down negative thinking and interpersonal warring against the vision and purpose of the organization. We must work together to endure this cyclic real estate correction.

Colorado Springs Realtor - Cherise Selley - Average Home Sales Price

Cherise Selley (Heritage Realty) — Thu, 08 May 2008 15:06:15 -0500

Colorado Springs Realtor - Cherise Selley - There has been a positive trend regarding the monthly summary of average sales price for single family/patio homes from February 2008 through April 2008. The Colorado Springs market registered a negative (11.1) percent for average home sales price for February, but gained momentum to a negative (7.2) percent for March and continued to climb to negative (5.2) percent for April. The average homes sales price for April 2007 was $252,610 and for April 2008 is $238,578. Accordingly, this is a buyersâ€™ market, yet the seller will still be able to unload his or her personal inventory and navigate to other areas in Colorado Springs to accomplish upward residential moves. These progressive increases in the average home sales prices are very good for the first quarter of 2008 and show that the market still presents with flurries of activities. For May, our team already has ten closings scheduled on the board. The two important components for survival during these times hinges on commitment and then skill. Part-time Realtors, in all likelihood, will struggle the most within the current market conditions today.

Colorado Springs Real Estate - Focus on the local market

Cherise Selley (Heritage Realty) — Tue, 08 Apr 2008 11:52:06 -0500

It is extremely important to focus on local market conditions instead of doom and gloom national reports. Specifically related to the Colorado Springs Real Estate market, there has been an increase of sales of 4% from Feb 08 to Mar 08. People still need a good local realtor, someone who has sufficient knowledge about the market so the consumer can accurately adapt to change when needing to purchase real estate.

Anybody Out There?

Cherise Selley (Heritage Realty) — Wed, 13 Feb 2008 16:36:58 -0600

Is there anybody out there that truly believes that the spirit of fear (through media and politics) is the strongest influence regarding today's market? Regardless of the market conditions, we, as realtors, have the power to correctly influence our clients during both the buying and selling process. In Colorado, during the "gold rush" of real estate, just two to three years ago, a $300,000 home was not as upgraded nor was it financed at a better interest rate than what is offered today. And today's market is considered only slippery and unstable. Wiggle room or reason still exists in the market. Mindsets need to be changed. Decisions and the rhythm of good business development and movement still can occur. If it is all doom and gloom, then what is the point of doing any business. I do not believe that reacting to negative stimuli should take precedence over reasonable thought and innovative investments.