I have recently been showing some relocation buyers around town who were looking for a nice single family home with acreage. Unfortunately, the areas they wanted to live in and the price point of the homes didn’t come with big backyards. This then brings up the inevitable discussion about how much land and home you get when you live on the East Coast. 

Yes, I know I am from the East Coast so I know and hear from relocation buyers all the time, “How come there are no backyards in Colorado?” My business partner Gary Lohrman once had a client in from the East Coast who quipped, “I expected to measure my land in acres, not inches.” Well put. 

Let’s assume one thing first before we get into the reasons why we have little yards. First, we are not talking about city properties. Even cities on the East Coast that were built on a grid like Denver and have small lots. What we are talking about is the difference in lot size for suburbs. 

Reason # 1 and I think you could have guessed this…MONEY! Yes, developers figured out that when they buy land, they should subdivide it into postage stamp size lots and build as many homes as possible on that land to increase their profit. This is not news to anyone which brings us to the question, “Weren’t developers on the East Coast interested in making money?” 

Answer: Yes they were, but a lot of development on the East Coast occurred prior to 1970 when land was not a premium like it is today, particularly in the outlying areas. Remember, there was a time when it was not cool to live in the suburbs so builders used large lots to lure people out of the city. 

Reason # 2. The California Influence. Right around 1970, builders around the country took notice of what was happening in California. Land was and has always been a premium in California and builders had to maximize their land with large homes on small lots in order to make a profit. Business was good and some of those builders brought their model to Colorado. Other builders in Colorado followed their lead and tada we have the large home with a blade of grass in the backyard. 

Since then, the trend has continued and proves to be a good business model for builders so we keep getting more of the same. There will always be some builders and I know of a few that will build on bigger lots at a reasonable price, but it will be in an outlying suburb to entice people to move there. 

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

Love at first sight only happens in the movies, right? Some believe it while some don’t when it comes to finding a mate, but what about when it comes to finding a home?

In today’s real estate market, would one be foolish to buy the first home they saw? Maybe not! There is no hard and fast rule about how many homes you need to see before making an offer. You could see three homes, find the exact one you are looking for, turn to your Realtor and say, “I don’t need to see anymore. Let’s make an offer on this one.” Somehow, over the last four to five years, we have gotten brainwashed into thinking that we need to see 40-90 homes before we can make an intelligent decision. That’s just hog wash. Chances are, after you have seen 20+ homes, they all start to look alike and you can’t remember which one had the main floor office versus the main floor master.

I have said it before and I’ll say it again. There is no perfect house, and if you find one that meets 85% or greater of your needs, then you’ve done well. Spending month after month and weekend after weekend looking for a home that meets 100% of your criteria is an exercise in futility. Many times, buyers fail to see the potential of the homes that they are looking at because they are in such a hurry to see what’s next on the list and what could be even better. I found that in life, sometimes we spend too much time looking for what’s better.

You may have looked at 1 home, 10 homes, or 100 homes and I bet for the people out there that have looked at 100, they came back to buy one of the very first homes they ever saw in their search. Trust your instincts when you are shopping for a home. If it feels right, it probably is and more shopping will only delay your purchase of that home. There is no shame in buying the first, second, or third home you’ve seen. In fact, I often say to my buyers after we’ve seen a home and they’ve had a positive response, “Is there any reason to see more or should we talk about making an offer on that home?” Remember what I always say, “Realtors are the only people meant to look at homes for the rest of their lives.”

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

These may seem like common sense to the seasoned real estate buyer, but you can’t believe how many people make these same five common mistakes year in and year out in buying real estate.

So without further ado, let’s get to the top five mistakes buyers make in the real estate transaction.

1)   People Over Buy. Yes, this is the exact problem that got many Americans in trouble and started this housing crisis. Buying too much home for your income happens less these days because of the recession and crash, but it’s still the number one problem in home buying. Remember, a good general rule is to add up all of your expenses including the new mortgage and it should not exceed 36% of your total monthly income.

2)   Misplaced Trust. We all know someone in the real estate business. Chances are, you were connected with your real estate agent from a referral. Even if the referral came from a trusted source, don’t be afraid to do your own research on the agent, mortgage lender, etc. Ask questions and conduct a good interview a maybe a background check.

3)   Oral agreement. Get it in writing for everything and keep a file with all of the paperwork. Even when you are talking about things over the phone with an agent, ask them to send you an email detailing what you just talked about so you have a paper trail and documentation. He said, she said never turns out well for anyone.

4)   Skipping the fine print. Read everything and read it again. I know it can be tedious and difficult language to follow, but if you don’t understand it, hire a lawyer to look it over for you. The cost won’t be much compared to being stuck with a bad deal on a home.

5)   Betting on resale. Be careful about buying the nicest, most improved home on the block. Remember, the homes on the block are going to sell according to the market average for size and features. If you think that you are going to cash in when you go to sell the house because it’s loaded, you might want to think again. Chances are, you may not get the cost of the improvements back when the time comes to sell.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and http://www.coloradodreamhouse.com/denverpost 

Today marks the one week anniversary of the end of the Mortgage Backed Securities Purchase Program (MBSPP). This monster $1.25 TRILLION stimulus program began in Early January 2009 and held rates under 5.00% for most of the year. So, what happened?

THE GOOD NEWS is, so far the change in the market has been TAME with rates rising only .250% from a week ago. Considering that the stimulus program caused rates to FALL over 1.00% at its onset, there were fears the opposite would occur at its end. The modest increase is just what we need to keep the momentum in the housing market.

SO NOW WHAT? Our top industry analyst Barry Habib has forecast interest rates for 2010 ranging from just above 5.00% to potentially as high as 6.5% (I did say potentially). Here are three key factors that will influence this range:

INFLATION will be the NUMBER ONE factor in determining how and when rates will rise. Currently, inflation is very low, but rising oil prices or an improving economy could change this trend. 

DEMAND for Mortgage backed securities in the US and Worldwide is always a factor. This is exactly why the MBSPP stimulus program worked…it increased demand. Current demand is still strong as evidenced by the modest change in rates following the MBSPP. Historically, when investors are uncertain about the equities market, the have a healthy appetite for Mortgage Bonds. Also investor confidence in the US economy helps maintain demand. Watch for signs that either of these may change. 

VOLUME 2009 brought HUGE volumes of new mortgages, especially re-finances. With rates gradually rising, re-finances will decrease as we move thru 2010. Lower volumes of new mortgages require less demand…and could help mortgage rates remain low, or rise gradually.

A COMMONLY HELD MISPERCEPTION among our clients is that rates will remain low “because the Federal Reserve said they won’t raise rates anytime soon”. We hear this daily from your clients. Just a reminder that the Federal Reserve controls a short term rate called the Federal Funds Rate. There is little correlation between this rate and the direction of mortgage rates. You will see mortgage rates rise even while the Fed’s keep the Fed. Funds Rate low. Don’t let your clients be fooled by listening to the media on where rates are headed. 

BE AN ADVISOR TO YOUR CLIENTS Armed with the above information we hope you can help your clients who are trying to “time the market” realize that with regard to rates, NOW is a great time to make a buying decision.

In my previous 2 Blogs on DPA, I discussed and tried to dispel some of the myths surrounding down payment assistance. In addition, I highlighted some of the key factors in determining what it takes to qualify for DPA. Today, I will address who are the agencies out there who offer DPA and how doing a little research can help in deciding which program you should consider and how to find out if your lender works with that agency.

If you go to HUD’s website and search for down payment assistance, you will find that there are over 30 different state, county, and city agencies out there offering DPA programs out there for first time home buyers (http://www.hud.gov/local/co/homeownership/buyingprgms.cfm). Most of them are geographic specific (city and county) with a few of them being statewide. So understanding where you believe you want to live is absolutely critical determining what agency and program you should use. Let’s say for example you want to purchase a home in Denver that happens to be in Adams County. In this scenario, you could potentially use the following three different agencies/programs (CHFA, CHAC, and Adams County). Working with a lender that knows the subtle differences between the programs is paramount and will save you a small fortune in interest payments over the life of the loan.

Once of the best ALL AROUND programs is Colorado Housing and Finance Authority (CHFA). It is a statewide program that offers a multiple programs and options for first time home buyers. It serves the entire State of Colorado and never runs out of money. It has the highest income limits for first time buyers and some very accommodating credit requirements (FICO scores down to 580). They offer home buyer education (both online and class room) and the administrators to the Mortgage Credit Certificate Program (MCC) where first time buyers can “super charge” their federal tax savings by taking a 20% “interest tax credit” on their tax return. 

Check out CHFA’s website at http://www.chfainfo.com. Great programs offer by CHFA and you can find a list of approved CHFA lenders on the website as well.

In my last post, I discussed that the MAJORITY of first time home buyers are eligible for DPA here in Colorado. In this post, I am going to talk about what are the qualifications for DPA. You will be surprised how easy it is to qualify and it is not that restrictive in order to get your piece of the DPA pie.

The first factor that has to be considered for DPA is HOUSEHOLD INCOME.  Household income is defined as “everyone” in the household (that will live in the home) that earns an income. That total income has to be counted towards the income limits for that agency’s guidelines. For example, if a parent is going to live with a young couple, then that parent’s income has to be counted in the total income household income calculation. Different agencies/programs have different income limits and depending on which one you use you are subject to the income limitations.     

The second factor that you have to consider when analyzing DPA is the GEOGRAPHIC AREA in which you are looking to purchase. There are agencies that lend and cover the entire State of Colorado and others that only cover very specific areas. In many cases there are several options for assistance for the buyer. Understanding this and knowing which is best for the buyer is critical. The last thing you want to do is get stuck with assistance that does not work into your financial goals. You as the buyer should choose only one program over the other just because the lender does not offer both programs. Shop around, find a lender who can do both and provide direction and guidance for the program that best suits your individual needs. 

The last factor to consider when evaluating DPA is the TYPE of ASSISTANCE. Is a 2nd mortgage loan or is it an actual Grant from the agency? Assistance where there is a “repayment” of the assistance is becoming a very popular and common.

Grants for assistance are becoming less prevalent and generally have lower income limits that assistance that is repaid. Your Lender should be able to compare and contrast the different options and guide you the best option. 

So you think you want to buy a home.  You have a good job and reasonably good credit but you don’t have the 3.5, 5%, or 10% down payment that is required in order to purchase these days.  You’ve heard rumors about different down payment assistance programs (DPA) and how you can get in for as little as $100 or $1000.  Those programs are myths or urban legends correct?  Or those programs are designed to help only the under-served, the homeless, and the people who fall below the median income in this country……right?   THINK AGAIN! 

DPA is designed for one thing, to assist buyers in being able to purchase a home with very little money out of pocket.  Are there some income restrictions and geographic restrictions?  There can be but for the majority of first time (and some second time) home buyers in Colorado, DPA is available for the taking.  You simply need to ask and work with a lender that handles these types of programs.  If your lender serves this market, you will find it very easily.  

In Part 2 of this series we will talk about the factors that determine the qualifications for down payment assistance and in Part 3 we will talk about the specific agencies and types of assistance available in Colorado and the Denver Metro area.

Last week, we began taking a look at rating your home for sale with a buyer’s eyes. What are buyer’s eyes and what do they look for when evaluating a home to buy? For that information and to re-read Part One of this series, go to www.coloradodreamhouse.com/denverpost and click on the “News” button at the top of the page.

This week, we’ll continue discussing the top categories that buyers use to rate your home. In Part One, we covered condition and location. Today, we’ll cover size, features, and amenities.

1)   Size: You know how this goes. Most people look to buy the biggest home they can for their money. So how does your home stack up size wise? When your agent did a market analysis of the homes for sale in the neighborhood, did you take a look at the competition and see how your home compared in total square feet and finished square feet? If you didn’t… do so and then give yourself a rating. Did your home land in at least the top four in size?

2)   Features: I am sure you know what your home has to offer, but you also need to know want your competition has to offer when it comes to features. In Part One, I told sellers to go see the other homes on the market in their neighborhood with their agent. Look for features while you are there and look at condition.

3)   Price: This is the biggie because in most cases, price can fix a lot of ills. Let’s say your home did not score very well in condition, location, size, and features. You may still be able to sell your home ahead of the others if it’s the best price and buyers see it as a value. Let’s say your home rated in the middle, but you need to sell quickly. Again, price could vault you to the number one choice of most buyers. Finally, let’s say you rated number one in all of the other four categories; then you do not have to be the cheapest home on the block to sell and sell quickly. Don’t get crazy either and price beyond what people would consider reasonable for the neighborhood.

Remember, proper positioning against the competition and rating your home with a buyer’s eyes may just be the edge you need to sell your home today.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

I must admit, for far too many years I originated loans and guided my clients by the philosophy to “buy as much home as you possibly can afford” believing that most people ended up “growing into their mortgage payment” as they continue to improve their employment skills and subsequently their income levels. While this might be true for some younger buyers, often that this is not the case. In addition, when you buy “maximum” house with your money you also get “maximum” utility bills, insurance, and property taxes that go along with that maximum mortgage payment. 

The meaning of “Less is More” is the notion that simplicity leads to better things.  In the case of homeownership, not being strapped to into a large mortgage payment leads to having more money to do other things in life. After interviewing allot of millenials (newest generation) lately, I believe this generation understands this concept very well. They’ve seen the results of their baby boom parents trying to “live the dream” with a large home, nicest cars, fancy clothes, etc., etc., by with both of their parents working 50-60 hour weeks, being tired and burned out at the end of the week, all for what?  So you can have a bigger or best house?

Today in the wake of a recession, 10% unemployment, and much uncertainty about what the future holds, I have changed my tune about how much house is too much. I believe that you should buy a home that “meets your needs” in terms of size, location, and budget (smaller is better). I think that the days of focusing on what the maximum house you can afford are over. There is allot more to life than being house poor.

For those of you new to the home buying process, a new change happened January 1st, 2010 that will make you life allot simpler in terms of shopping for a home loan. The new Good Faith Estimate (GFE) requirements have made lenders HIGHLY accountable for the interest rate and closing costs quotes on a home loan. In the past, mortgage lenders and brokers could play “fast and loose” with their Good Faith Estimates often quoting terms that were not available just to get the client “in the door”. Once you invested a few weeks with them and gotten the loan approved, the terms would change at the last minute. Consumers either were forced to take the different terms or start the process over with a new lender. The number one complaint by consumers to HUD was that their terms at closing (rate, closing costs, and cash required to close) was significantly different than they were originally quoted.

Today Lenders are now required to provide you with a “Good Faith Estimate” (GFE) that binds them to their quote (rate and fees) for a minimum of ten days. In addition, the new GFE discusses lock options much more clearly. Sections A of the new GFE (lenders origination charges) cannot change at all (other than decrease) and Section B (Other Settlement Services) cannot change by more than 10% of the original quote. If the section B charges are above the 10% tolerance, the lender is required to “refund” the difference back the borrower at closing.  So the consumer is very much protected from terms changing at all from the original quote. I recently attended a seminar and one of the points that the instructor made is that the acronym GFE should now stand for “Guaranteed Fee Explanation” and I could not agree more. Basically the new GFE has become that, a form that guarantees the fees and rates to the client. Good news and more transparency for the consumer.

So you are sitting on the sidelines right now missing out of the $8000 First Time Home Buyer Tax Credit because someone at the bank told you that your score was not good enough to buy right now. The banker probably did not provide much more information other than you “need to fix your credit and pay your bills on time” if you want to buy a house. 

What are you supposed to do get started on that path of homeownership? Are you going to try to figure this credit fix stuff out on your own? Worst yet hire a credit repair firm and pay thousands of dollars for them to make money and show meager results? Or just continue to sit on the sidelines and rent and miss out probably one of the best buying opportunities in the past 30 years? 

Here is a fact, 78% of the people who decide to buy a home ultimately by a home with 5 years of making that decision to buy. So the question is really not “IF” you are going to buy a home but “WHEN” are you going to buy a home. Problem is that most bankers and their loan officers don’t get this concept. They just see the never ending supply of other customers coming through the door and move onto the next customer. You are left to fend for yourself.

I have over 15 years of credit scoring and repair expertise. I have moved credit scores by over 100 points in 30 days. In addition, I have saved client tens of thousands of dollars is educating them on how to work out settlements with past due accounts. Before you give up on your dream of homeownership, get a second opinion on your credit. Your dream may be closer than you think!

Andy Jorgensen

Sr. Loan Originator

Guild Mortgage Company

7951 E. Maplewood Ave. Suite 290

Greeenwood Village, CO 80111

www.taxcreditforeveryone.com

Mortgage Originator License #MB100011854

303-753-9135 or 888-333-6944 office

303-753-8747 or 888-999-3594 fax

303-810-1191 cell

As realtors, we are always telling people why “today or now is a good time to buy” and many times we have good reason for that. The prices are down and there are a number of foreclosures available, buyer incentives, etc, etc. Maybe the best reason of all right now to buy is the interest rate.

I know mortgage lenders are always talking about this and advertising this, but we hear it so much that we forget to pay attention to it. If you really stop and think about it, interest rates may be the biggest influence on whether we can buy or not. Let’s face it, the vast majority of the population buy based on what they can afford in a monthly mortgage payment. Nothing affects that more or greater than the interest rate. Let’s take a look at a snap shot of a few figures to see the real impact when interest rates rise and what that does to your monthly payments.

According to Metrolist, at the end of 2009 the average price for a single family home was $281K. For this example, let’s call it an even $280,000 and let’s also base all of our calculations on a 30-year-fixed. We’ll take a look at a 5% loan, a 6%, and a 7%. We are also all in agreement that it’s unlikely that interest rates will go lower and the reality is that they are only going high from here.

a.      $280,000 at 5% = 1,503 P&I

b.      $280,000 at 6% = 1,678 P&I

c.      $280,000 at 7% = 1,862 P&I

Just the jump from 5% to 6% almost added $200 a month to your payment and we still haven’t added in taxes and insurance yet. If you have to add mortgage insurance, you could be easily looking at $2000 a month. It adds up quickly and that’s why interest rate is such an important factor. It’s also the main reason why I tell people who are on the fence about buying now or waiting not to wait any longer.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

Sure, as a new home buyer you are going to get your $8000 tax credit for buying a home  (provided you close before the deadlines) and you will begin to “itemize” your tax deductions (real estate property taxes, mortgage interest, and points) going forward each year.  All of these can potentially save you allot of money on your federal taxes which one of the many reasons people chose to buy rather than rent.  But did you chose the right loan program to enhance your tax savings or allow to you qualify for that extra $20,000 in purchase price?  The Mortgage Credit Certificate (MCC) program can potentially accomplish this.    

The MCC program is an enhancement to your loan that allows you to claim 20% of the mortgage interest you pay as an actual dollar for dollar tax credit (not a tax deduction) and this is for the life of the loan (not just one year).  The remaining 80% of the mortgage interest continues to qualify as a itemized tax deduction.   This is a significant tool to super charge your federal tax savings or increase your purchasing power when out there house hunting.

Talk to a “qualified MCC” lender for more details.

In this month’s news letter we’ll tell what new changes are coming to FHA loans and the details on our contest to win $250,000 dollars towards the purchase of your dream home. For more information about the contest read below. But first…what’s going on with FHA loans?

If you are a first time home buyer or even a second time home buyer and you were thinking about getting an FHA loan from HUD you might want to BUY NOW before they make it harder to get a loan. You may have noticed last week that Housing and Urban Development (HUD) announced they will be making changes to their FHA loan program.

Change # 1: HUD will increase the amount of mortgage insurance required on each loan. Right now it’s at 1.75% of the loan amount.  This gets rolled into the loan and you pay for it each month over the life of the loan.  HUD will most likely make the change this spring to 2.25%. HUD says this will help them rebuild their insurance reserves after massive losses with mortgage defaults.

Change # 2: If you have a FICO score of 580 or less you will be required to put down 10% as a down payment instead of the usual 3.5%. This will prevent some people from getting a loan. HUD says the risk is too high to loan people with a credit score less than 580 so they want the home owner to put up more money and have more skin in the game.

Change # 3: Going forward HUD will reduce the amount of seller contributions from 6% to 3%. This is probably the most significant change and impacts everyone getting a loan. For cash strapped home buyers having a seller contribute says $6000 dollars on a $100,000 purchase price is a big deal. Soon buyers will only be able to accept 3% (or $3000 dollars) towards closing costs or pre-paid items. Overall not a good thing so buyers should get under contract before this happens.

Bottom line FHA is still the best deal in town for a large majority of the population. There isn’t anybody else right now willing to lend you money with only 3.5% down so for that reason and that reason alone it still a good option.

Above all take advantage of the 6% seller contribution rule now and get under contract with a property before the rule changes.

Finally go to http://www.firsttimehomebuyerdenverco.com or http://www.taxcreditforeveryone.com for a chance to win $250,000 toward your dream home. It’s easy to win and you’ll get great information about the new tax credits and how to get $6500 or $8000 in your pocket right away.

Please feel free to contact me with questions or if there is any way I can be of help at 303-522-1161 or dpolimino@fullerproperties.com

Sincerely,

Dan Polimino 

At the end of last year, Move.com, the company that also owns the more popular Realtor.com, published a survey they conducted forecasting home buying in 2010. According to Move.com one in 20 Americans say they plan on buying a home within the coming year. While that doesn’t seem like a lot of people the most interesting part of the data are the demographics. The people most likely to buy will have a median age of 34 or younger and will be living in the South and West according to the survey.

If that’s true, it bodes well for Colorado. Denver has been one of the first cities to lead the charge out of the housing slump. Denver also has continued to grow through this recession because it’s an attractive place to live and work. Young people flock to Denver because of jobs, lifestyle, and climate. Corporations are relocating their headquarters here, or building new facilities. Along with that come new young workers.

According to the survey, roughly one quarter of all potential buyers said that the number one reason that they would buy now is because prices appear to have bottomed out. That reason topped bargain-priced foreclosures, worries about rising interest rates, and a wide selection of homes. Now let’s take that data and see how it applies in our local market. Again, that fits in perfectly with what Denver has to offer and what we are hearing from buyers. With the exception of the luxury market, home prices bottomed out earlier this year and now are headed up. The buyers we are working with know that foreclosures are harder to come by, they don’t seem motivated by interest rates, and the inventory has not been historically high in Denver since 2006.

Of course, this is just one survey but it is encouraging for Denver and its surrounding suburbs. There is no question that if the recovery continues, Denver is poised perfectly to appeal to what buyers want and where they want it.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

Last week, we started taking a look at a checklist of items that every buyer should focus on when getting a home. The priority list should include location, size of home and lot size. Why are those the first and most critical pieces to buying a good investment? Go ahead and reread Part One of this series at www.coloradodreamhouse.com/denverpost.

Today, I want to focus on the things that you could live without and probably could sacrifice if you are buying a home on a budget.

1) Condition: Believe it or not, condition of the property does not make the top three in the priorities list. The reason is simple and that’s because even the worst properties can be fixed up. Now, I know that you are buying a home on a budget and may not have the resources to fix it up, but it doesn’t have to be done all at once. A project can happen slowly overtime, and if you are even remotely handy, it can be done with some classes at a home depot, a small budget, and a little hard work. 

2) Garage: It’s always nice to have a big garage. These days it seems like the three-car garage is the norm and some people can’t even fathom living with a two-car garage or no garage at all, but it doesn’t make the priority list. If you have to make some cuts and you can’t get everything you want, think about sacrificing here. Would you want a smaller house, but a bigger garage? Or a smaller lot and a bigger garage, or even a three-car garage, but a bad location? The answer is no, no, and no. Location, lot size, and size of the home will trump a garage any day. 

3) Layout: I hear this more often than you would think, “I don’t like the layout.” Layouts for the most part can be changed as long as you are not attempting to move a load bearing wall. Plumbing, electric, HVAC, and yes, rooms can be changed or moved. 

Remember, stick with the big three priorities: location, lot size, and size of the home. If you did well in those three categories, you got a great buy and a home that will be a good investment. 

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

Colorado Realtors Dan Polimino, Gary Lohrman and Mortgage Lender Andy Jorgensen are at it again.

This time the trio is giving the American public a chance to win $250,000 dollars in cash towards their Colorado Dream Home.

Maybe you have been wanting to buy a first home, maybe you have dreamed of buying land and building a home or maybe you just want upgrade. No matter the reason Dan, Gary and Andy want to give this money away.

Just visit www.firsttimehomebuyerdenverco.com or www.taxcreditforeveryone.com and click on the link that says “click here for your chance to win $250,000 toward your dream home.” It’s no gimmick and there are no tricks.

Dan, Gary and Andy have been so successful with their website helping people buy their first home and get an $8,000 dollar tax so they decided to celebrate. Why celebrate because the government extended the tax credit to April 30, 2010 and created a tax credit for non first time home buyers. Check out the information about the $6500 tax credit for everyone at www.firsttimehomebuyerdenverco.com and www.taxcreditforeveryone.com .

As always if there is anything Dan, Andy or Gary can do for you in the home buying or selling process don’t hesitate to contact them. Their contact information is on the site.

A husband and wife were just about set to buy a home. They had narrowed it down to the final two choices and wanted me to go out with them one more time to help them decide. It was Tuesday night when they had contacted me and we were meeting on Thursday. By Wednesday morning, the two final homes had grown to six. They decided to look at four more including their final two choices. By Wednesday night, two of the six dropped off their list and they added four new ones. If you’re doing the math at home, that’s eight homes to look at on Thursday.

Thursday came along, we looked at all the eight homes, and the two finalists were still the two finalists. They said, “Dan, which one should we buy?” I said, “It’s a no brainer in real estate; the first golden rule is location, location, location. The second rule is to buy the most house that you can for the money. Based on those two rules, house “a” is the clear winner over house “b.” Both homes had all the same amenities and both were similar in price. With that said, I patted them on the back, sent them off feeling confident that they had found their home after seeing at least 75 homes to date.

Surprise, surprise! A few days passed and the buyers decided that they wanted to see a whole new slew of homes in a neighborhood that they never considered before. When asked what happened to their two finalists, they said that they were worried they hadn’t seen everything and that they might miss out on a better deal.

Ok, let’s nip this in the bud right now. When you are eclipsing 75 showings, its official…YOU HAVE SEEN EVERYTHING.  The truth is, you could go on like this forever and feel like you haven’t seen everything. There will always be a story of someone that got a better deal. You can’t win that game, but you can ensure that you get a good deal for yourself, your price range, and your criteria. Stop chasing the deal of the century because you’ll end up frustrated, unfulfilled and without a home. Trust your gut instinct, stop over analyzing everything, make a decision, and get on with your life. Real Estate agents are the only ones that are supposed to look at homes for the rest of their lives.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

Colorado Realtors Dan Polimino, Gary Lohrman and Mortgage Lender Andy Jorgensen are at it again.

This time the trio is giving the American public a chance to win $250,000 dollars in cash towards their Colorado Dream Home.

Maybe you have been wanting to buy a first home, maybe you have dreamed of buying land and building a home or maybe you just want upgrade. No matter the reason Dan, Gary and Andy want to give this money away.

Just visit www.firsttimehomebuyerdenverco.com or www.taxcreditforeveryone.com and click on the link that says “click here for your chance to win $250,000 toward your dream home.” It’s no gimmick and there are no tricks.

Dan, Gary and Andy have been so successful with their website helping people buy their first home and get an $8,000 dollar tax so they decided to celebrate. Why celebrate because the government extended the tax credit to April 30, 2010 and created a tax credit for non first time home buyers. Check out the information about the $6500 tax credit for everyone at www.firsttimehomebuyerdenverco.com and www.taxcreditforeveryone.com .

As always if there is anything Dan, Andy or Gary can do for you in the home buying or selling process don’t hesitate to contact them. Their contact information is on the site.

Have a great weekend and Happy Thanksgiving.

I am sure by now that you saw the news from two weeks ago about the first-time home buyers’ tax credit being extended through April 30, 2010 and Congress creating a new credit for people other than first-time home buyers.

This was one of the best scenarios we could hope for. The only way that this could have been better is if it was a $15,000 tax credit for first-time buyers and everyone else, but we’ll take what they passed. More importantly, there are several reasons why this will continue to help the housing market and the economy overall.

First, you have seen me write this before the first $8,000 tax credit really did work. It got people off their couch, in the market, sold homes, put people to work, and stimulated the economy. Second, as I have said before, this crisis started with housing and housing will lead the way in turning the economy around. That’s why this critical legislation needs to be extended. It had a proven track record of success and will continue to benefit the country.

The $6500 tax credit for everyone else is also a strong move to get more people to buy homes. There are some preconditions here like you must have lived in your current home for at least five years before you can upgrade and cash in on the $6500. There are also some income limitations to be eligible for the tax credit, but overall, the incentive will bring more buyers into the market. (To find out all the fine details about the tax credit go to www.firsttimehomebuyerdenverco.com.)

Finally, there are a lot of reasons to buy a home right now: historically low housing prices, low interest rates, plenty of selection, motivated sellers, and cash incentives from the government. It’s almost the perfect storm for buyers. I say “almost” because the one piece of the puzzle that still needs to come around is the loosening of credit for buyers. We need to put pressure on Washington to get the banks to lend out more money with more favorable conditions.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

On Wednesday, Move.com, the company that also owns the more popular Realtor.com, published a survey they conducted forecasting home buying in 2010. According to Move.com one in 20 Americans say they plan on buying a home within the coming year. While that doesn’t seem like a lot of people the most interesting part of the data are the demographics. The people most likely to buy will have a median age of 34 or younger and will be living in the South and West according to the survey.

If that’s true it bodes well for Colorado. Denver has been one of the first cities to lead the charge out of the housing slump. Denver also has continued to grow through this recession because it’s an attractive place to live and work. Young people flock to Denver because of jobs, lifestyle and climate. Corporations are relocating their headquarters here or building new facilities and along with that come new young workers.

According to the survey, roughly one quarter of all potential buyers said the number one reason they would buy now is because prices appear to have bottomed out. That reason topped bargain-priced foreclosures, worries about rising interest rates and a wide selection of homes. Now let’s take that data and see how it applies in our local market. Again that fits in perfectly with what Denver has to offer and what we are hearing from buyers. With the exception of the luxury market home prices bottomed out earlier this year and now are headed up. The buyers we are working with know that foreclosures are harder to come by, they don’t seem motivated by interest rates and the inventory has not been historically high in Denver since 2006.

Of course this is just one survey, but it is encouraging for Denver and its surrounding suburbs. There is no question that if the recovery continues Denver is poised perfectly to appeal to what buyers want and where they want it. 

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

“Will it appraise?” This is the question that every buyer must ask themselves these days before they make an offer on a property. Appraisals are becoming more and more of an issue when it comes to buying a home. Why? Well, there are several reasons for this and I’ll detail some, but not all below. 

1. When sellers put their home up for sale many times, they are unwilling to sell it at market value. As such, their idea of the worth of the home and the appraiser’s valuation may not be in sync. With vast drops in property values, we see this situation played out more and more.
2. We know that organizations like Fannie and Freddie Mac who buy mortgages from lenders have come down hard on appraisers, enforcing new rules and guidelines. This has made a lot of appraisers scared and conservative in their valuations, to say the least.
3. In conjunction with the new rules and guidelines, a buyer could have an appraiser working on their contract that is not from the area nor are they familiar with the neighborhood. I am not saying that the appraiser will do a poor job, but having an area or neighborhood of expertise certainly helps for fair valuations.

Now that we have documented a few of the problems associated with appraisals, lets take a look at an example of what could go wrong and often does.

A buyer finds a home that they want and the asking price is 200k. They’ve looked at everything, believe the 200K is a good deal for this home, and they make a full-price offer. The seller accepts, the lender orders the appraisal, and it comes in at 185K. In this case, there are three remedies: a) The seller reduces the sale price to 185K and the buyer agrees to continue with the contract. b) The seller won’t or can’t reduce the price to 185K, but the buyer can move forward if they come with an extra 15K cash out of their pocket at closing. c) The buyer can terminate the contract and move on.

While this seems straightforward and academic, you cannot believe how many times we are running into this on a daily basis. A word to the wise: buyers, before you make an offer on a home, get with your agent and really make sure that the home you are making an offer on will appraise at the price you are offering.

Next week we’ll tackle what sellers can do to make sure their property will appraise at the asking price.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

The two most frequently asked questions I am getting these days are: 1) Is there still time left to get a home and qualify for the first time home buyer’s 8,000-dollar credit? 2) Will the government extend the first time home buyer’s tax credit?

First things first: yes, there is still time left to get qualified and find a home but you need to move NOW. Have a discussion with a lender as soon as possible about your credit, down payment, or down payment assistance and how much you qualify for. Then get out with a realtor and start looking for a home, condo, or townhome. This may take a little while because in the final 60 days of this tax credit, we expect to see a lot of people trying to buy a home. That means that there might be more people vying for the same home than you would normally see at this time of the year. Most transactions take at least 30 days to close. That means that you need to be under contract with a property no later than November 1^st.  If I were a first time home buyer, I would take the first two weeks of October to get my lending situation in order. I would find a good realtor no later than mid-October. Take the final two weeks or less to find a home and make a solid offer on a home that could be accepted by November 1^st.

Our second question is, “Will the government extend the tax credit?” The National Association of Realtors has been working hard on this with Washington lawmakers for many months now. My guess is that Congress will approve a second home buyer tax credit, but in what form is any body’s guess. Some say that they will merely extend the $8,000 credit we have today for first time home buyers. Some say that the $8,000 will be for any buyer and others think that the tax credit may even go as high as $15,000.

With that said, DO NOT WAIT! One thing we know for sure is that Congress is unpredictable at best. If you are counting on them to make a better deal for you to buy a home, you are gambling with the odds not in your favor.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

Dan Polimino from Fuller Sotheby's International Realty is letting prospective buyers stay in his listing for the weekend to test drive the house and see if they want to buy it. Polimino is interviewed on KUSA 9 news in Denver, Colorado.

View the video at http://www.youtube.com/watch?v=hR6hpmBnahM

No question that the best opportunity to buy a home these days is for the first time home buyers. Oakwood homes specializes in building homes that meet the needs of first time home buyers and Director of Marketing Kristen White wanted to get their attention.

At the same time, Fuller Sotheby’s Realtors Gary Lohrman and Dan Polimino, along with Platt Park Mortgage Lender Andy Jorgensen approached Oakwood’s Kristen White with an idea to give away a home to first time home buyers. White listened to their ideas and after one short meeting, immediately partnered with the three.

On July 1st, they launched www.firsttimehomebuyerdenverco.com with two simple premises: First, educate and help people who are interested in the buying their first home, help them qualify, and help them take advantage of the $8,000 tax credit. The second premise was to offer people a chance to win their first home if they can’t afford to buy one right now. Moreover, it’s a $250,000 home from Oakwood Homes.

Just 30 days into a three-month promotion, more than 2,000 people have visited the site and tried their lucks at winning a home.  White says, “Given the economic times, not everyone can afford to buy a home. So why not try to win one?” White also says “that the response has been amazing and more than exceeded her expectations.” Mortgage lender Andy Jorgensen says that the best part of the website and the promotion is that he has spoken to a lot of potential first time home buyers who never thought that they would qualify to buy a home. Jorgensen says, ““People are amazed after I speak with them that they can qualify, that there is help with their credit, and help with their down payment. I tell them that they just need to ask instead of listening to bad news, assuming that they’ll never be able to buy a home.”

Realtor Gary Lohrman says that he’s excited about helping people buy their first homes and notes that this is the time to take advantage of these opportunities. “When you combine low interest rates, low home prices, and a tax credit from the government, it’s like the perfect storm and it makes it the right time to get a great deal on your first home.” Lohrman also points out that first time home buyers need to be closed by Dec 1^st to get the 8,000 dollars which just leave 4 short months left.

If you would like to find out more information about the first time home buyer program or take a chance at winning a $250,000 home from Oakwood, visit www.firsttimehomebuyerdenverco.com

I am happy to announce a special opportunity for all buyers! On July 1^st, we launched a new web site called www.Firsttimehomebuyerdenverco.com. The purpose of this website is to educate and help first time home buyers purchase their first home. Buying your first home can be an overwhelming experience and we wanted to take away the hesitation or the fear that someone might have in taking this big step. The government is offering an $8,000 dollar tax credit for first time home buyers and while people would like to take advantage of that, they have questions and are not sure if they qualify. www.Firstimehomebuyerdenverco.com answers all the questions about tax credit, who qualifies, and even how you can use your tax credit for your down payment. My partners Gary Lohrman and Andy Jorgensen are experts in this field. Andy can even help you clean up your credit in 30 days or less. I know, I know, but HOW DO YOU WIN THE MONEY?             

It doesn’t matter if you are a first time home buyer or a 10^th time home buyer. Any Colorado resident, 18 years or older can visit www.firsttimehomebuyerdenverco.com and enter to win $250,000 from our partners at Oakwood Homes. There is nothing you need to do except fill out your contact information and then try to guess seven numbers. If you guess the right seven numbers you could win $250,000 from www.firsttimehomebuyerdenverco.com and Oakwood Homes. Good luck, and spread the word to all your friends to check out the website. After all, who couldn’t use $250,000?

I heard these words come out of a buyer’s mouth the other day, “I have looked at over 100 homes and still have not found my perfect home.” I cringed when I heard that sentence and thought to myself, “If she has looked at 100 homes and still has not found her perfect home, chances are, she’s not going to find it.” Then I thanked my lucky stars that I was not her real estate agent.

Listen, no one needs or should be looking at 100 homes to find the perfect home and here are the whys:

The perfect home doesn’t exist. There is no such thing and even people who built their own homes from start to finish will admit that after they are done, they would have and should have made more changes.

If you have looked at 100 homes and still have not found a home that suits you, then anyone of the following three things could going on here:

a.      The home you are looking for is not on the market or does not exist.

b.      Your criteria are too stringent. That’s a nice way of saying that you’re being too picky.

c.      The real estate agent has not done a good job at listening to your wants and needs and has not shown you the properties that meet those criteria.

In reality, if you have a good real estate agent that has done his or her job, you are being realistic about what you can buy for the money, and you use the 85 percent rule, then you should be able to find a terrific home that meets your wants and needs in 12 to 20 showings. By the way, the 85 percent rules says that if you find a home that meets 85 percent of everything you want, then buy it because you have done well in your house hunting.

Finally, looking at 100 homes will just make you numb to the whole process, you’ll become paralyzed by over analysis and in the end, you’ll find it very difficult to pull the trigger and buy anything at all. Remember, buying a home is supposed to be fun. It’s not an exercise in analytics or running a marathon.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com

Last week, we stared looking at opportunities for first time home buyers with the $8,000 tax credit. We also started talking about some obstacles that are keeping people from taking advantage of the program. To find out if you qualify for the first time home buyer program and to find out how to clean up your credit, you can re-read last week’s column at www.coloradodreamhouse.com/news

This week, I want to tackle two more obstacles that are getting in the way of people buying their first homes. We said that credit score, fear of losing their job, and down payment were the primary barriers to buying a first home. Let’s take a look at down payment and see how you can overcome this issue. FHA is offering loans with only a 3.5% down payment. Let’s say you buy a home for $170,000, 3.5% of that purchase price is roughly a $6000 down payment. The Colorado Housing and Finance authority has a program that will lend you up to $6000 for a down payment at it does not violate FHA rules. The premise here is that local, state, and government agencies are moving quickly to lend people down payment money against their tax credit. Once you receive your refund, you’ll be obligated to pay back the down payment loan. For more details on this program, go to http://www.chfainfo.com and search for the “jump start” program.

Finally, how about the risk of losing your job? This is a very real and solid reason for not buying a home, but there are some things that you can do if you decide to go forward with a home purchase. First, make sure that your mortgage is a very small percentage of your total monthly bills. If you think your job might be in jeopardy be proactive and don’t wait to get laid off. Update your resume and start looking for new opportunities. If you need to switch occupations, enroll yourself now in night classes while you still have a job during the day.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com

Ok, first time home buyers; this is a reminder that the $8,000 dollar tax credit is only good until Dec 1^st, 2009. So you need to purchase a home by that time and if we do the quick math, it looks like you have about 6 months to get that done.

Let’s go over how the program works: First, if you haven’t owned a home for at least three years, you qualify. Second, you need a credit score of at least 620 and if you go with an FHA loan, all you need is 3.5% of the purchase price for a down payment. Combine that program with incredibly low interest rates and home prices and this really is a good opportunity to get into your first home. One other note about the program is that the IRS will send you a REFUND this year for homes that close between April 9^th and December 1^st 2009. You can actually get a check in the mail for $8,000 dollars. You can also amend your 2008 return and collect the tax credit/check this year.

Now I know what you’re saying, “The tax credit/refund is great, but I am not buying my first home because I am afraid of losing my job, my credit isn’t so good, or I don’t have enough money for a down payment/closing costs.” Well you are not alone. As I speak with first time home buyers, those were the exact three obstacles that prevent them from taking advantage of this offer. So let’s address each problem and see how we might be able to overcome each obstacle.

First, credit can be repaired and in some cases, in 30 days or less. So see a qualified lender who can help you clean up your credit report. Not every lender specializes in credit counseling so be careful who you speak with.

Next week we’ll tackle the second and third obstacles mentioned above and talk about possible solutions.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com

The story goes like this. An agent with buyers wants to see a home on short notice. The sellers have indicated in the MLS they need a 24-hour notice for showings. But the buying agent asks the selling agent if they can see the house with only a two-hour notice. The selling agent asks the sellers and they say no, but insist they’d like to set it up for another time. The sellers never hear from the buying agent again because the buyers went up the street to see a house they could get into and bought it later that day.

What’s the moral of this story? Be flexible. I know it’s difficult to have your home ready in a moment’s notice, but this is still a buyers’ market, and they are in control. For years realtors have loosely used the term “there are only a handful of buyers out there.” Now, however, it’s actually true. So when they come through your neighborhood, you better be ready.

I tell my sellers to keep their homes show-ready at all times. And I mean all times – when they leave for work, when they leave for vacation and when they leave to go shopping for the afternoon. Agents will tell you most of the time if they’re lucky they’ll get a day’s notice that a buyer wants to go out and shop. Most of the time buyers call and ask if they can go see homes later that same day. Changing plans to accommodate buyers puts everyone in a tough position, including agents, but that’s how it goes.

You may be thinking that a 24-hour notice request generally only applies to high-end listings. Yes, traditionally that has been true. But the bigger problem I’ve seen is when homes of all price ranges don’t look their best for showings or they aren’t even available. In this market, every showing and that’s every showing counts.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.

Trading homes is not a new idea, but in this economy it is becoming a more valuable option. I know a builder that had a custom home for sale last year. Some potential buyers wanted it but needed to sell their home first. The builder took a look at the buyers’ home, liked it, bought it and moved into it. The buyers took the new custom home and paid the builder the difference. This wasn’t exactly an even trade, but a trade plus cash can work just fine in this environment as well.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.

Most people don’t want to buy in the low. They want to sharp shoot for the bottom. But let’s face it. If you can predict the market’s bottom and buy at the perfect time, you’re either clairvoyant or have impeccable timing. In all the years I’ve owned different businesses, I haven’t met too many people who can honestly claim either.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.