08.28.08
Posted in Colorado Springs Real Estate at 8:08 am by Angela Byrne
When I talk to homeowners about selling the property they own, we always discuss value. I first prepare a 
Comparative Market Analysis (CMA) for the subject property. Because market value has been changing over the course of the last 18 months, I have had a lot more people say “we HAVE to walk away with x” or “well, we owe x, so we need to list for x”. It’s important to remember that our monetary obligations have nothing to do with what a qualified, able-bodied Buyer will pay.
So, how do we determine what the market will support? First of all, we look at what has been selling in the last 4-6 months in the surrounding area(s). If comparable properties are found in the subject property’s neighborhood, then we will not look in other neighborhoods (even if they’re close). We then make adjustments if they are necessary. For example, if the subject property has an additional bathroom, then we would credit the property for an improvement over the comparable property.
We can look at the “active” competition to see how it may affect marketing efforts. However, we don’t look at the “active” competition to determine value. Others may have their homes listed at unrealistic values. If a Seller prices their home based on the prices of those around them, they may never see a showing. Or, they may see showings, but no offers.
The key to determining value is to set aside any expectations or pre-conceived notions about the market and evaluate the data. Buyers are showing us every day what they are willing to act on. They are showing us what types of discounts they expect for a home in less-than-stellar condition. They are showing us that short sale and foreclosure properties are REAL competition for resale. It’s a time to be competitive. Selling a home now is a price war and a beauty contest. If a Seller keeps this in mind, they can make a move happen. Call me today if you’d like a pricing analysis on your home.
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08.17.08
Posted in Colorado Springs Real Estate at 1:13 pm by Angela Byrne
Any first-time homebuyer looking for monetary assistance for their home purchase may find themselves coming up empty handed. Many of the state (CHFA) or county-funded (El Paso County Bond) programs are out of money to give. I just helped a family sell their home (on Friday) and they were able to contribute to the 
Buyers’ down payment. Recent legislative decisions will end this. And, as of October 1, 2008 it doesn’t look like the homeowner is going to be allowed to provide this type of assistance either.
There may be a new alternative for first-time homebuyers, though. It is called the Housing and Economic Recovery Act of 2008. Here are some details about the program so you can decide if it’ll work for you.
1. The qualified home purchase must be made between April 8, 2008 and June 30, 2009.
2. The credit is maxxed out at 10% of the purchase price (not to exceed $7,500).
3. Can be used for the purchase of any single-family residence (condos/townhomes included) that will be a primary residence for the Buyer.
4. The credit reduces income tax liability for the year of the purchase. It’s claimed on the tax return for that tax year.
5. The program is available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).
6. The Recovery Act assists anyone who has not owned a principal residence in the 3 years previous to the purchase.
7. Here’s a biggie. The money can be recaptured. A portion (6.67 % of credit) is to be repaid each year for 15 years. If home sold before 15 years, then remainder of credit recaptured on sale.
As you can see, there are quite a few stipulations to working with this program. However, if a Buyer doesn’t have other options, this may be a blesssing. If you are considering utilizing the Housing and Economic Recovery Act of 2008, please contact me. I’d be happy to get you started.
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