American Economic Recovery Act and the Department of Defense Housing Assistance Program (HAP) Expansion

The Homeowners Assistance Program was originally enacted by Congress in 1966. This law provides for assistance to eligible federal personnel who were stationed at or near an installation scheduled for closure or realignment and who, through no fault of their own, are unable to sell their homes under reasonable terms and conditions.

 Earlier in 2009, the President signed the American Economic Recovery Act which included expansion of the HAP to include Members of the Active Armed Forces (only) permanently reassigned during the mortgage crisis who meet certain criteria. In a nutshell, if you are a member of the active military and subject to a permanent reassignment that meets the HAP criteria, you may be eligible for assistance benefits under this expanded DoD program.

At the time of this writing the DoD had not yet finalized policy guidance on applicant processing and benefits, however potential applicants who meet the published criteria may still submit their applications to the appropriate HAP districts. No action will be taken on the applications until the change to the HAP authority has been enacted, the interim draft rule is published in the Federal Register and DoD guidance is received by the HAP districts.

The Current Published Criteria for Expanded HAP Eligibility Are:

•1)      Must be Military Personnel Only

•2)      Subject to a Permanent Change of Station (PCS) that requires move of more than 50 miles

•3)      Reassignment ordered between 1 February 2006 and 30 September 2012 (or earlier date designated by Secretary of Defense)

•4)      For a Property purchased (or contract to purchase signed) before 1 July 2006.

•5)      Property sold by the military owner between 1 July 2006 and 30 September 2012 (or earlier date designated by Secretary of Defense)

•6)      Property was the primary residence of the military owner

•7)      Owner has not previously received these benefit payments.

If you are a member of the Armed Forces who is PCSing or has PCSed, you are encouraged to download the application packet available at http://hap.usace.army.mil/homepage.html , carefully read all instructions, complete the application, and mail your completed application to the USACE district responsible for the area in which your home is. Once DoD implementing guidance is received the district will contact you concerning your eligibility and benefits.

I recently received the following question from a Military Wife needing to relocate her family before her huspand is deployed.

"My husband and I need to find a house and move within two weeks. IS THIS EVEN POSSIBLE? He's in the army, and wants to move our family - across the country - before his next deployment."

The following is my response:

Hi Kristen :o)

As an Army Veteran myself I specialize in helping members of our military relocate. I can tell you that ANYTHING is possible depending on how flexible your family can be with financing choices and properties. Since you didn't specify that you need to use VA financing I am assuming that you are also open to federally insured FHA loans which can often close much quicker than a VA guaranteed loan, and can also be less expensive with regards to costs because there is no required VA Funding Fee.

Through the use of the latest state of the art technologies, I have helped several members of our Armed Forces and their families relocate WHILE deployed and I would probably recommend this avenue for your family rather than putting yourselves through the severe stress that attempting to complete a real estate purchase transaction so quickly would cause.

I have many references from current and former Military Service Members and their families, including one family I just assisted to relocate from Ft. Leavenworth WHILE he was Deployed in Iraq. In fact they chose their new home before they ever moved to Colorado Springs.

I also have 2 sharp local lenders I can refer you to who are very familiar with the needs of military relocations and all the local issues that can effect a successful loan process.

You can read my testimonials here http://www.brianwess.com/clienttestimonials and I would be happy to put you in touch with the folks I mentioned above for a personal reference. These folks can also put you in touch with the local military community support assets for relocating military families.

Please let me know if I can do anything to assist you and your family have as simple and stress free a relocation as possible as you support one of our troops serving our country.

Brian L. A. Wess
CRS, GRI, ABR, ASR, e-PRO
Realtor®, Broker Associate
Residential & Investment Specialist
Pat Newell & Associates, Inc - Metro Brokers
Colorado Springs, CO
Direct: 719-528-6672 
Web: www.BrianWess.com 
             Your Real Estate Gladiator!^TM

Copyright © 2008 By Brian L. A. Wess, All Rights Reserved.

As a Home Loan Applicant...Did You Know?
The mortgage lender may run a second credit report just prior to closing.
Red flags that appear in this credit report can disqualify you for the mortgage loan at the last minute.
This often means that you will also loose your earnest money for failing to perform as contracted.

Your actions after receiving lender approval for a mortgage loan can disqualify you for the loan. A mortgage loan is conditionally approved, with the lender reserving the right to re-verify credit, income, assets and employment at anytime. The lender may cancel the loan if there are any adverse changes to your qualification status.

Debt-to-Income Ratio
Your debt-to-income ratio is your gross monthly income divided by the amount you spend on debt. Debt items include mortgage payments (including principal, interest, insurance, tax), car payments, credit card payments, student loans, child support payments, etc.

The lender considers debt-to-income ratio when approving you for a mortgage loan. Only 28 percent of your income can be used for your mortgage payment, which includes taxes and insurance; and 36 percent for the mortgage payment plus the rest of your debt. Anything you do to negatively affect your debt-to-income ratio may change an "approval" to a "disqualification."

Avoid Red Flags
A red flag is any inquiry made regarding your credit worthiness. If you decide to purchase a big ticket item - like a car, boat or furniture - prior to closing, you're at risk of having a red flag show up on your credit report.

Keep Your Money Where It Is
The balances of your liquid assets are considered when approving you for a mortgage loan. These liquid assets may include checking accounts, savings accounts, certificates of deposit, money market accounts, retirement accounts, stock and mutual funds.

Avoid changes to the balances of these accounts. Do not close accounts. Do not change banks. A large withdrawal or deposit to any of these accounts will trigger a red flag for your mortgage lender. If a red flag is triggered, you may be asked to produce a paper trail tracking large withdrawals and/or deposits.

Employment Status
For most employees a change of jobs to one of equal or higher pay will not trigger a red flag. However, sales people should not change jobs prior to closing on their mortgage loan.

Salaried Employees
If your income is strictly salary than you should not have a problem changing to another job of equal or greater income. If, however, your income includes salary and bonuses, commissions and/or overtime, you should not change jobs prior to closing.

Hourly Employees
If your income is based solely on a 40-hour work week without overtime, than changing to a job with equal or greater hourly pay should not be a problem. However, if your income is dependent upon overtime pay, do not change jobs prior to closing.

Commissioned Employees
If your income is from commission or a substantial portion of your income is from commission, then you should not change jobs prior to closing. Typically, mortgage lenders average your commissions over the last two year period to determine income. Changing employers eliminates the two-year commission history and places uncertainty on your income status.

Talk to Your Loan Originator
Do not make any changes to your financial and employment status without first talking to your loan originator.

Brian L. A. Wess
CRS, GRI, ABR, ASR, e-PRO
Realtor®, Broker Associate
Residential & Investment Specialist
Pat Newell & Associates, Inc - Metro Brokers
Colorado Springs, CO
Direct: 719-528-6672
Web: www.BrianWess.com 
             Your Real Estate Gladiator!^TM

Copyright © 2008 By Brian L. A. Wess, All Rights Reserved "The Last Minute Credit Check and Your Home Loan"

I recently received the following question from a home owner in financial distress:

"How do I do a short sell on my own house without having someone else do it? I dont want a middle man or women to make money from something maybe I could do myself?

Here is my response:

Hi Kathy :o)

I wish I could count the number of times I have heard someone ask a similar question concerning real estate transactions. Fortunately, I CAN count the number of folks I have successfully worked with after they expended a great deal of their own time and money attempting to sell their home or negotiating a short sale with their lender by themselves.

My Grandfather always used to say, "You don't know what you don't know until you get taught a lesson." This is true of many things and especially of real estate. Unfortunately for the less than 5% of people who have been able to sell their properties themselves, the lesson in real estate usually costs them a great deal not only in their time and effort, but also in lost equity. According to recent surveys, properties sold by a Realtor sold for 16% more money than properties sold For Sale By Owner. 

A short sale negotiation is an exceptionally complex process with many pitfalls and ramifications for you not to mention that banks are overwhelmed currently with the number of foreclosures and requests for work throughs. Simply the amount of time involved in negotiating short sales with lenders makes it virtually prohibitive for anyone who is employed.

There is nothing to prevent you from attempting to negotiate a short sale with the leinholder(s) on your property except the time it takes to do one and the instutional barriers that are inherent and unique to each lender.

Knowing what I know, my first instinct is to advise you that this is not something you want to try yourself unless you have many free hours and days available to you for what is likely to be a long and frustrating education into the process.

The best advice anyone could give you would be not to try it without some kind of professional assistance.

However, if you choose not to use a Realtor who is EXPERIENCED in short sale negotiation, then you should at the very least consult an attorney who specializes in real estate and is familiar with short sale negotiation and prepare yourself to spend hours and weeks on hold on the telephone and faxing in paperwork to the lender.

You will also want to make sure to consult with a tax advisor regarding any possible tax ramifications.

Brian L. A. Wess
CRS, GRI, ABR, ASR, e-PRO
Realtor®, Broker Associate
Residential & Investment Specialist
Pat Newell & Associates, Inc - Metro Brokers
Colorado Springs, CO
Direct: 719-528-6672 
Web: www.BrianWess.com 
             Your Real Estate Gladiator!^TM

Copyright © 2008 By Brian L. A. Wess, All Rights Reserved "Can I do a Short Sale?"

I recently received the following question from a home owner in Colorado Springs.

"I bought a new Pulte townhome in Feb 2007. Since then the builder has dropped prices about $30k. I seriously need to move but now I am really upside down. What are my options?"

Here is my response:

Hi Mandy :o)

I am very sorry to hear about your situation and I know such uncertainty creates a lot of stress, but you should know that you are not alone. The current market correction is making it very difficult for sellers who have purchased their homes in the last 3 or so years to sell now because, in most instances, they have 97% to 100% financing and any appreciation they would have experienced has been eaten up by the downward market pressure on prices.

However, you need to remember that existing properties are often more attractive to buyers because they already have many items that the builder either didn't include or offer as an incentive. These can include, Additional Finished Areas, Decks, Landscaping, Sprinkler systems, A/C, window coverings and other interior or exterior amenities...so all is not lost.

If you absolutely have no other option than to sell now as you indicated, you have a few options available to you:

1. There may be a possibility, albeit small from what you said about the builders prices, that your property might be able to sell on the market for at or near what you paid. You first need to consult with a Realtor professional, who has experience and education in property valuation or a licensed appraiser to give you a very tight analysis of what the approximate current market value of your property is. A Comparative Market Analysis (CMA) form a Realtor and/or an appraisal are in reality just educated snapshot in time guesses of what your property should be worth, so it's very important that you use an experienced Licensed Appraiser or a Realtor with extensive continuing education that has included how to properly perform a tight CMA.

If your property is indeed worth less in the current market than it would take to pay off your loan and you do not have the financial wherewithal to make up the difference, you can:

1. Ask the Realtor you choose to work with how much the going rental rates are in the area of the property to see if it's possible for you to rent it out at a rate that will allow you to make the loan payment each month. If you can verify for a lender that you are receiving a steady income from a property that you have converted to an investment rental, it is still possible for you to qualify for a loan on another property to use as your primary residence wherever you relocate to. A word of caution, you should go over your loan agreement with your current lender to make sure that there is no language in the agreement that would prevent you from renting the property out to others. You should also have a Realtor professional perform and investment analysis of your property to ensure that you can at least break even by renting the property out. While it is possible to do, I don't recommend to any investor placing yourself in a negative cash flow position with regard to the debt service on an investment property, unless they have a strong income stream from other sources and can afford to use any loss on a particular property as a write off or carry over on their taxes. If this is the case for you, then I highly recommend that you consult a Tax and/or a Financial Advisor to make certain that you have the proper advice and counsel. I would also recommend that if you are relocating out of town or the state that you use a professional property manager to manage your rental property. It's very worth the usually minimal 10% of the monthly rent in order to make sure the property is protected and well maintained by the tenants and that any maintenance, code enforcement, law enforcement or other issues can be addressed in a timely manner.

2. You can attempt to negotiate a short sale with the lender or lenders who hold your home loan(s). A Short Sale is generally described as a negotiated settlement with a loan holder for less than the amount due on the loan. This is usually more common if the loan is delinquent, in foreclosure, or less commonly, if you have been attempting to sell the property on the market for a long period of time and the offer you receive will not cover the full amount of the loan. Negotiating short sales is a very complex and time consuming process, so if this is an option you wish to explore I would highly recommend you have professional assistance from a Realtor with a good deal of verifiable experience successfully working short sales and a strong short sale negotiator on his team. I happen to have one of the best.

There are definitely some options open to you and some things you may be able to do to get out of this situation, so don't give up hope and make sure you talk to someone with the proven experience and education to properly counsel you. If you like I will be happy to sit down and discuss your options further.

Brian L. A. Wess
CRS, GRI, ABR, ASR, e-PRO
Realtor®, Broker Associate
Residential & Investment Specialist
Pat Newell & Associates, Inc - Metro Brokers
Colorado Springs, CO
Direct: 719-528-6672 
Web: www.BrianWess.com 
             Your Real Estate Gladiator!^TM

Copyright © 2008 By Brian L. A. Wess, All Rights Reserved.."Homes Selling for less than bought in 2007"

I recently received the following question from a home owner attempting to sell his own property For Sale By Owner (FSBO) without professional assistance.

"What is the "normal" time period to make a price reduction on a home for sale? My condo has been up for sale almost 30 days. I've had tons of traffic and my flyers seem to be disappearing daily. Feedback received is that our condo is beautiful, looks brand new, shows like a model, but buyers are putting bids in on cheaper condos. Condos in my neighborhood are going from $140k - $250k. We are listed at $156k. We are offering 3% buyer agent commission, so we are a bit flexible with the price, we just need someone to put the offer in to negotiate."

Here is my response

Hi KC :o)

Your question highlights just one of the multitude of reasons it's important to use a Realtor professional when selling your property. All real estate is local and can be so local as to differ from neighborhood to neighborhood, so there really is no "Normal" unless you are speaking with a specialist in your market.

Unfortunately, as a FSBO you are already placing yourself at a significant marketing disadvantage since according to a 2006 survey of buyers and sellers properties sold by a Realtor sold 16% HIGHER than properties sold FSBO. Since most markets average 5% to 7% for listing fees, a FSBO is leaving 9% to 11% of their equity on the table.

The general rule of thumb on pricing is if you haven't received significant showings, and what is "significant" also varies by your market area and current market conditions, within a 30 day time period, then something isn't right about your listing. That something can be any number of things (price, the way it's being marketed, etc.) There is an old saying in real estate "Price Fixes Everything"...so it just depends on how flexible you are on price.

If you have had a significant number of showings and are getting good general feedback but no offers, then it is usually safe to assume that your price is not attractive. Realtor professionals know which questions to ask when soliciting feedback to help you develop the best strategy.

An important thing to remember is that you don't want to over price your property for the market simply because it may be a buyers market and you think you will receive offers lower than your asking price. First off, if your property is priced right for the current market from the beginning, you may not receive offers significantly less than the asking price. Secondly, statistics continually demonstrate that the longer a property stays on the market, the less it will sell for vs what it might have sold for if it had been priced right from the beginning. This is one of the reasons that properties I market for sale sell about 30% faster than the market average and within 99% of their asking prices.

You would be best served to find a Realtor who is a specialist in your market...preferably a Certified Residential Specialist (CRS). The CRS, also known as the PhD of real estate, is the highest designation awarded to professional residential Realtors and though less than 4% of the over 1.3 million Realtors qualify to receive the CRS, they do more than 25% of all the residential sales in the country each year.

Brian L. A. Wess
CRS, GRI, ABR, ASR, e-PRO
Realtor®, Broker Associate
Residential & Investment Specialist
Pat Newell & Associates, Inc - Metro Brokers
Colorado Springs, CO
Direct: 719-528-6672 
Web: www.BrianWess.com 
             Your Real Estate Gladiator!^TM

Copyright © 2008 By Brian L. A. Wess, All Rights Reserved.. "Normal" Home Price Adjustments"

I recently received the following question from a home seller in Colorado Springs:

"Who would you say is the best realtor company in Colorado Springs, Co?"

Here is my response:

Hi Alice  :o)

This is a very tempting question to ask someone in the real estate profession, because it begs them to respond "I am I am!"

Let me first say that I have worked with many Realtors in the Colorado Springs area who are professional and knowledgable. Unfortunately, I have also seen some who do not fit that profile.

As is so often the case, "Best" is pretty subjective, however I believe most people agree that biggest is not necessarily the Best. Rather you would want to look for who is recognized for the Superior Knowledge and Customer Service they offer and what kind of meaningful evidence can they provide to back it up? (i.e. - Customer Testimonials, Sold transactions prices, Average sales vs asking price).

For example, Wal Mart is the worlds biggest retailer, but I am sure that most will agree that while they provide good prices, their individual customer service and product knowledge is not the best.

"After all...when selling a house what matters more...How Many homes the Realtor Sells or HOW MUCH the Realtor sells YOUR home for?" ^TM ©

I could tell you that my company, Pat Newell & Associates, Inc. - Metro Brokers was VOTED "Best Realty Company in Colorado Springs 2007 - Silver Award" by the readers of the Colorado Springs Independent News, coming in between 2 huge national franchises, or that I was VOTED "Best Realtor in Colorado Springs 2006 - Gold Award" by the readers of the Colorado Springs Independent News, but you would still need to know that, because we are a small independent company, these awards were not voted on by our own associates, but by past clients and friends who know the high level of customer service and knowledge we give.

As you are looking for a company to help you sell your property, it's important to remember in a challenging market such as now, those that work the smartest in marketing your property for you are going to be most successful. Even for Realtors who work with "teams", the individual Realtors education, knowledge and experience is what's most important to a successful transaction.

There are a number of ways to find a competent Realtor, but if you want the best for you and your property...Interview.

When looking for a Realtor Professional you should first look for a Realtor who first and foremost treats their profession as a profession and then interview a some using the following questions to see who you feel most comfortable having represent you.

1. Are they a Full Time, Full Service Realtor? (This eliminates those who see real estate as a "Hobby" or "extra income" and is a wide definition as to what constitutes "Full Service")

2. How long have they been practicing real estate? (Too long and they may be out of touch with current practices and marketing trends. Too little and they may not have the experience to avoid the multitude of transaction pitfalls or negotiation faux pas)

3. Have they continued their real estate education beyond just getting their real estate license and when was their last continuing education class? (for example: the CRS *Certified Residential Specialist* designation is considered the PhD of real estate and is the highest designation recognizing education and performance that a Residential Realtor can receive. While only about 4% of the over 1.3 Million Realtors qualify for the CRS Designation, they do about 25% of all the business in the United States each year.)

4. When were their last 5 listing transactions and what was the result for their seller clients? (Do they have more experience working with buyers or sellers and how much did they get for the seller asking price vs. sold price)

5. Ask about their methodology for doing a CMA (Comparative Market Analysis) to help you price your home correctly for the market. (How do they determine what's a good comparable and can they back it up with market facts specific to your area? Are they giving a price estimate that might be too high just to get your listing only to have to ask you to lower that price several times after wasting your time with your property just sitting stale on the market.)

6. How will they communicate with you about your property? (are they Internet Savvy or e-PRO Technology Certified, do they use tools to keep you up to date on what's going on with your property, how will they provide showing feedback)

7. What tools do they use to market your property? (Do they invest in their business by using tools and technologies to get your property in front of as many potential buyers as possible or do they just rely on the MLS and a few pictures. How do they keep up with the ever changing market. Are they on the cutting edge or still just using newspapers and magazines)

8. Ask if you can call any of their past clients about your service to see what they have to say. If they don't have several to refer you to...that can be an indication of their past service or lack there of.

There are literally thousands of Realtors in the Colorado Springs area who will be happy to take your listing, but you need to carefully examine how they do business and their past success at selling properties as a gauge of how they will market your property.

Brian L. A. Wess
CRS, GRI, ABR, ASR, e-PRO
Realtor®, Broker Associate
Residential & Investment Specialist
Pat Newell & Associates, Inc - Metro Brokers
Colorado Springs, CO
Direct: 719-528-6672 
Web: www.BrianWess.com 
             Your Real Estate Gladiator!^TM

Copyright © 2008 By Brian L. A. Wess, All Rights Reserved.. "Who is the Best Realtor or Real Estate Company in Colorado Springs?"

I recently received this question from a home buyer in Colorado Springs

We have a contract to buy in Co Springs, but mortgage companies are telling us it's a declining market We will need to sell in summer of 2011, is this a good time to buy?? We're paying about $93/finished sq ft and on a 1/4 acre

Here is my response:

Hi Becky  :o)

Real Estate is Local...so local as to differ from neighborhood to neighborhood. Some neighborhoods in Colorado Springs are experiencing modestly declining prices while some are stable and a few of the most desirable areas have even increased.

Unlike some markets across the United States, Southern California, Las Vegas and Southern Florida to name a few, the 2005 study of home prices found the Colorado Springs market prices not to be much over inflated so when the current downturn began there wasn't much value to be lost.

The Colorado Springs market is currently showing stability with about as many homes coming on the market as are sold each month and while this leaves the market in an oversupply, buyers market position, the market remains healthy.

We are seeing signs that the market has stabilized and will begin it's recovery in early 2009 once the uncertainties from the Presidential Election and the current reorganizations in the lending industry all shake out.

So, based on historic real estate appreciation trends, if you purchase now; in a stable or appreciating area of Colorado Springs; and buy at the right price for the current market based on a solid market analysis and uninfluenced appraisal; you should be in an ok equity position to sell in late 2011 and at least break even after costs. Of course this is barring any local or national economic catastrophe that would make all this moot.

Brian L. A. Wess
CRS, GRI, ABR, ASR, e-PRO
Realtor®, Broker Associate
Residential & Investment Specialist
Pat Newell & Associates, Inc - Metro Brokers
Colorado Springs, CO
Direct: 719-528-6672 
Web: www.BrianWess.com 
             Your Real Estate Gladiator!^TM

Copyright © 2008 By Brian L. A. Wess, All Rights Reserved.. "Is this a good time to buy in Colorado Springs?"

I recently received the following question from someone looking to purchase a home in Colorado Springs

"Do buyer's agents in Colo Sprgs charge a retainer upfront for looking at $120,000 price range for a home?"

Here is my response

It's important to make certain distinctions before answering your question. The first thing anyone holding a real estate license in the State of Colorado is required to do upon having their first significant contact with you is provide a copy of the Real Estate Commission approved Definitions of Working Relationships Form (Available Online Here http://www.dora.state.co.us/Real-estate/contracts/2005Contra... )

In Colorado, until you have a written agreement with the Realtor or licensee you are working with, they operate as a Transaction Broker by Default. This means that they cannot advise or advocate for your best interests as either a Buyer Agent or Seller Agent would, but simply act as an intermediary.

With that said, while no one Realtor can speak for the business practices of another and approximately 95 to 98 percent of all residential real estate transactions take place through the local MLS.

In Colorado, a Realtor or anyone with a real estate license (and yes there is a big difference) may be paid in a number of ways as long as both parties agree: by a percent of commission based on the gross sales price of the property purchased, by an hourly rate set by the practitioner, and by a nonrefundable retainer fee that may or may not be credited against any other fees payable to the practitioner.

Retainer fees for Realtors exist for the same reasons that Attorneys charge them, so that some someone cannot take advantage of the Realtors advice, time, education and expertise without having to compensate the Realtor for them.

In general, especially in today's lending market, an experienced Realtor will ask if you have been prequalified for financing BEFORE beginning your property search. This is an advisable step for both parties for a number of reasons. It saves the buyer from looking at properties that may be beyond their abilities to finance and thus prevents them from becoming disenchanted with properties of lesser price that may serve their needs just as well. It also saves the Realtor from expending valuable time and gas showing the client properties for which they are not able to qualify. It also allows for an offer to be acted upon quickly once an acceptable property is identified as almost all sellers are requesting some form of verification from the buyer that they are able to perform on a contract prior to accepting an offer to save them valuable time should they buyer not be able to perform. It also allows the lender to prepare certain aspects and documentation of the loan package in advance which can be crucial in the current market as many lenders are taking 2 and even 3 weeks to get a file out of underwriting.

In only two instances in my years as a Realtor, have I asked a client for a retainer fee that would be credited against my commission as a demonstration of their good faith and security for the time I spend on their behalf in assisting and advising them. In both instances these clients were persons looking to have me teach them how to invest in real estate and to help them purchase properties for investment. In both cases the clients agreed to the retainers because, while all buyers involve a good deal of advice and education, persons wanting to be real estate investors usually require a great deal more time, advice and education to be successful than does the normal buyer transaction.

Brian L. A. Wess
CRS, GRI, ABR, ASR, e-PRO
Realtor®, Broker Associate
Residential & Investment Specialist
Pat Newell & Associates, Inc - Metro Brokers
Colorado Springs, CO
Direct: 719-528-6672 
Web: www.BrianWess.com 
             Your Real Estate Gladiator!^TM

Copyright © 2008 By Brian L. A. Wess, All Rights Reserved.. "Realtor Commissions and Retainers"

I recently received this question from a home buyer who may be relocating to Colorado Springs

We are looking at a possible job relocation to Colorado Springs within few months. How has the housing market held up (good incentives on builders, resales, etc?) and what are some good communities. We have three children ranging from 4 to 13 so looking for a 3K square foot home. Thx, Paul

Here is my response 

Hi Paul  :o)
 
While the Colorado Springs market has fared much better than the markets in Southern California, Florida, Las Vegas, etc...according to my CRS Realtor Friends in those markets and my own experiences here...the market in the Springs area is still solidly buyer friendly.

We have seen modest decreases in resale pricing in most areas of the metro area. Based on an analysis of the information from the Pikes Peak REALTOR Services Corp, who handles the local Multiple Listing Service (MLS) for the Pikes Peak Association of Realtors, the number of available properties on the market has been decreasing steadily over the last few months from the levels they were at the same time last year and while sales are still lower than same time last year, they have increased over the last few months as smart buyers have taken advantage of the market.

The information indicates that we are beginning to see stability in the market and, with Colorado Springs being a very active real estate market due to the large military presence, I would predict...barring any unforseen catastrophe...that this stability will last into early 2009. After that we should begin to see market conditions begin to swing back as we receive a large influx of Military transfers from Texas and as the uncertainty in the mortgage markets finishes its shake out.

Most builders in the Springs area, though there have been 1 or 2 who failed to read the tea leaves properly and had too many spec or standing inventory homes, have not adjusted their prices significantly, though almost all have been offering very attractive incentives. Unlike an existing home seller, builders offer incentives in order to entice buyers without drastically dropping prices. They do this, among other reasons, to help keep the assessment levels in a phase or subdivision relatively close for comparable properties.

As far as areas of the Springs to consider, that's really dependent on what you are looking for and how much you are able to afford. Though I am still organizing some of it, you can find information on the areas of Colorado Springs on my website at http://www.brianwess.com/Neighborhoods as well as school district and school performance information at http://www.brianwess.com/SchoolsInfo .

Something to consider if you may be moving again in the future is resale values and there are a few areas of the Springs that historically performed well in this category. Generally the northern parts of town have had the best historical appreciation and retention of value.


"Based on information from the Pikes Peak REALTOR Services Corp. ("RSC"), for the period 1 April 08 through 31 May 08 and compared with same times in 2007. RSC and Brian Wess do not guarantee or is in any way responsible for its accuracy. Data maintained by RSC may not reflect all real estate activity in the market.

Brian L. A. Wess
CRS, GRI, ABR, ASR, e-PRO
Realtor®, Broker Associate
Residential & Investment Specialist
Pat Newell & Associates, Inc - Metro Brokers
Colorado Springs, CO
Direct: 719-528-6672 
Web: www.BrianWess.com 
             Your Real Estate Gladiator!^TM

Copyright © 2008 By Brian L. A. Wess, All Rights Reserved.. "Relocating to Colorado Springs"