Happy New Year! May 2012 be your best year yet!

So … The New Year is here. 2012! Did 2011 go by fast enough?  Was it really 12 months long? Wow! Naturally, this means we all have got resolutions to make, and if you haven't made them, you better do it now. If you don't make them you're either smarter than the rest of us (which we all know is not true), or simply find them to be silly.

While thinking you do not need a resolution is your fair right, please read on with an open mind …

Should we resolve ourselves to Start something, or Stop something?

Start: Working Out

Stop: Smoking

Start: Spending more time with family

Stop: Eating so much

Start: Staying on a budget

Stop: Wasting time

Start: Drinking less

Stop: Drinking more!!

Clearly, this Start/Stop list could go on and on and on and …

No matter your resolution, it is a good idea to look at the past and to make efforts to improve our future actions and habits. You know the saying: 

Yesterday is History, Tomorrow a Mystery, Today is a Gift, That’s why it’s called the Present. 

This has so much truth to it! Read it again just a bit more slowly: 

Yesterday is History, Tomorrow a Mystery, Today is a Gift, That’s why it’s called the Present. 

Don’t you agree?

To be honest, I quit making New Year resolutions long ago, but mostly because mine were always too lofty, and I failed, so I quit.  But this year is different. I have a resolution that I have already made and will keep. It only has one very simply “Start” command: Start: Focusing on each day, one at a time. 

Sounds easy, right?  Well I am going to have to make a concerted effort to do this, because I know that I, (and I’ll bet you, too), spend a lot of our time thinking about our past and our future … and POOF … Today is gone.

There is nothing better than looking at each day as a new day that holds opportunity, certainty and surprises. We all know those “live in the moment” quotes …

Today is the first day of the rest of your life. Charles Dederich

We are always getting ready to live, but never live. – Ralph Waldo Emerson

The best thing about the future is that it comes only one day at a time. – Abraham Lincoln

Today is life – the only life you are sure of. Make the most of today. – Dale Carnegie

If you’re still talking about what you did yesterday, you haven’t done much today. Anonymous

Pretty good stuff.

So, here is my promise to myself: As I go through the New Year, I am going to enjoy the beauty of each day.  My conversations with people. The gift of each person, friend and family member. The gift of one more day.

Let’s face it, tomorrow may never come … and yesterday is old news!! If we make the best of each day, the weeks, months and years will take care of themselves. Simple stuff and probably easier said than done – but, I am up for the challenge and ready to take it on.

  

So … Let us not live in the past or in the future. Simply let us savor each day.

DWS

PS:  Almost forgot, there is no better time to buy a home than today!!

Contentment

So …

Mick Jagger said it a long time ago (feel free to sing while you read): "I can't get no…Satisfaction".

Why not?  Need more money?  Need more popularity? Need more stuff?  Need more number 1 hits?

We all suffer from the problem.  We want a nicer car, a bigger house, more clothes, more vacations, more thrills… more stuff.  So what is contentment? Are "need and desire" the same?

With our massive economic down turn, (which is global), we have all begun to take another look at our desires vs. our necessities.  As the reality of the value of our "wishes" has come into question, our desires have begun to be reshaped.  We do know… we all actually need food, water and shelter…simplistic, but true!!

Food… We use coupons, shop at the Costco's of the world, eat more meals at home, make larger quantity purchases of paper goods, etc.  All of these changes are good! Good because we are learning to conserve, and good because we have begun to get a grip on the waste of time, money and product.

Water… Water used to be a no brainer!  Water the lawn, take as long in the shower as possible, wash the car, (leave the hose running!),… water used to be the least of our concerns. But times have changed. Water bills have soared, restrictions have been mandated by municipalities, water quality is compromised in some areas and future supply has come into question. Reality has come, and everyone knows water is a necessity, but not a luxury. We have learned recently, it is not something to be wasted.

Shelter… In the past, shelter has not always been looked at as a necessity. We have grown the American Dream to include necessary "McMansions" in epic numbers. Working hard to earn "high-end" homes is commendable. But today I have witnessed that exercise is being questioned by many who can afford them. Property taxes have significantly increased, heating costs are beginning to soar, maintenance costs and building square footage has resulted in a refreshing trend that includes new terms such as: "green", down-sizing", "xeroscape", "energy efficient", "commute time", "remodel", "refinance", "mortgage-free", etc.

Aside from the financial strain and stress this economic downturn has had on many, the economic downturn has also helped many redefine their "needs", their "necessities" and their "desires". The new order in "need vs. want" is an enjoyable awareness to entertain. It has allowed us all to consider the exchange of quantity for quality. We can always want for "more", but more is simply not equal to better … or to contentment. How good is that? 

As we enter the New Year, I hope we each think about where value really is, what our needs really are, and what is driving our quest for more.  

The result? That's the good part… it's Contentment!

DWS

No Risk-It, No Biscuit

So ... what's going on?  

Tebow is goin' on in a big way!

The football season is nearing an end for this year,  but Tebow is new, the Broncos are new, and the results are new!  How refreshing and fun is this?  There is a lot of hype and dialogue about this transformation, but I think what sums it up best is : 

NO RISK-IT,

 

NO BISCUIT!

Every coach, every fan, every sports talking head, everybody that has followed football at all, have… considered Tebow a risk. They have come up with hundreds of reasons why he can't do what he does, even when they watch it with their own eyes.  Hello?! Yet, there he is on national television, transforming team attitudes, refusing to listen to the negatives and he's winning football games!

Who took the risk?  Well, his little league coach, his high school coach, his college coach, and now the Bronco organization took a risk on Tebow.  It seemed like a big risk from day one, and when you take risks you open yourself up to ridicule.  But there is one person who saw it differently, and that one person was Tim Tebow himself.  He has never thought of himself as a risk. He knew and saw something completely different from all the others. Tebow see's opportunity. Really? Yes, without question. He see's opportunity in everything he looks at. Opportunity to learn, improve his game, study, help others, contribute … and that results in a "Winner". Risking it, for Tebow and the Bronco organization, has resulted in a very big and enjoyable biscuit for us Bronco fans and football fans in general.

We Fan-atics are loving the "winner part".  But what about the opportunity part?  What about the learn and study part? And what about the risk part? We all want to be a winner, so to speak, but some of us forget to look at the bigger long-term picture and we avoid risk at all costs. Let's take a quick peak at my favorite topic … that's right … Real Estate. (You knew that was coming!)

We are in a RISK-IT market: 

* Fact: Real estate values have been in a downward spiral for almost 3 years!

* Myth: Banks won't lend money. 

* Fact: Inventories of property have been at all time highs.

* Fact: Appraisals?  Torture!

* Fact: Job security, not so good.

* Result: Fear.

Where there is RISK-IT, there is also a BISCUIT:

* Fact: Interest rates are at all time low … like since the beginning of time!!

* Fact: Distressed property values have caused increased inventory  in every market.

* Fact: Banks really are making loans - you have to qualify, but they are making loans for cheep (re-read first bullet).

* Fact: We all want to live somewhere "happily ever after" - that will never change.

* Fact: All ingredients for opportunity are present…right now.

* Fact: This definitely will not last. Re-read that line and give it some thought.

There is risk, but if you look at the BIG picture, the opportunity has never been greater.  All we have to do is, learn, improve our game, study, and contribute … and we too can obtain winning results!

I wish you all a very Merry Christmas, and Happy New Year!  

I hope you have a "biscuit" on your wish list!

DWS

Decorate Your Real Estate - It's Christmas Time!

What an awesome time of the year. I have been inspired by how others decorate their homes at this time of the year. If you have photos of your home that you would like to share, please email them to us and we will post them!
Enjoy!
April

How 2011 Property Taxes Affect Your 2012 Closing

When it comes time to close on a transaction, the most frequently asked question we receive regarding the HUD or Settlement Statements is about the proration and payment of property taxes. When are they paid? How are they prorated? What if the seller is late on their payment? What if the taxes go up or down in the following year? The list goes on and on … 

Over the years, Dale and I have used Land Title Guarantee Company (shout out to Joe Hubert and our awesome closer, Elionore Gruber!). They recently published an article that answers several questions about property taxes and the procedures Land Title uses. Enjoy!

Side Note: If you like the property in this photo and want its property taxes to be your responsibility (which are very reasonable, I might add), call us - this awesome property is for sale!

Courtesy of:

TWO OPTIONS FOR PAYING PROPERTY TAXES

There are two options available for paying real estate taxes in Colorado.

The first option is to pay the entire amount of the prior year’s taxes in full on or before April 30. It is also possible to pay the real estate taxes in two installments—the first installment on or before February 28 and the second installment on or before June 15.

PROPERTY TAXES AND YOUR CLOSING

Depending on the time of year that a property closes and which method the lender uses to pay property taxes, Land Title will follow one of several procedures for collecting taxes at closing.

IF YOU’RE CLOSING EARLY IN THE YEAR

For closings that take place during the first couple of weeks of each year, before the counties have certified new mill levies, Land Title will normally escrow from the seller 120% of the previous year’s property tax amount (or use the most recent assessed value, if higher). These are short-term escrows, and no escrow fee is charged. Land Title can provide you with the complete escrow instructions and W-9 forms that are needed. Once the mill levies are certified and the actual tax amount is available, the prior year’s (2011) taxes will be paid from the escrow, and the difference will be refunded to the seller.

THE LENDER’S PROCEDURE FOR HANDLING PROPERTY TAXES

Lenders also play a role in how the title insurance company determines what real estate taxes to collect at closing. At this time of year, lenders typically request that we handle the payment of the prior year’s (2011) real estate taxes in one of two ways. The first option is to collect from the seller (by means of a debit entry on their Settlement Statement/HUD-1) the entire amount of taxes due and remit that amount to the appropriate county treasurer prior to April 30. The second option is for Land Title to pay only the first half of the prior year’s (2011) taxes.

WHEN PAYING ONLY THE FIRST HALF OF THE PRIOR YEAR’S TAXES

In the event that the new lender requests that Land Title pay only the first half of last year’s property taxes to the county, Land Title typically follows this procedure:

1. The seller will be debited and the buyer credited for the entire amount of 2011 taxes. 2. The buyer will be debited for the first half of the 2011 tax amount and Land Title will pay this amount to the county. The lender will collect a tax escrow and will pay the second installment when it comes due. 3. The buyer and seller will both execute a Memorandum of Understanding Regarding Payment of 2011 Real                Property Taxes. This document explains to the buyer and seller that Land Title has paid the first half of the taxes in accordance with the instructions from the buyer’s lender and that the lender will be remitting the second half of the taxes on or before June 15.

TAXES DISBURSED BUT NOT RECEIVED BY THE TREASURER

By the first part of February, parties to a real estate transaction often encounter the problem of what to do when the payoff statement indicates the prior year’s (2011) taxes (either all or half) have been disbursed from the escrow account by the 

existing lender but have not yet been received by the treasurer. When this is the case, these options are available: 1. Land Title will accept an escrow of 110% or more, depending on the county, of the prior year’s (2011) real estate taxes 

from the seller/owner until such time as payment of the taxes can be confirmed with the county treasurer. These are short-term escrows, and no escrow fee is charged. Keep in mind that by the time payments can be confirmed, taxes may be past due. 2. On streamline refinances where escrows are being transferred to the new loan to pay for 2011 taxes, an indemnity letter is required from the lender stating that the lender will be responsible for the payment of said taxes. 3. Land Title will accept an indemnity from the lender (who paid the taxes) stating that the taxes have been paid in full (or that the appropriate half has been paid). In this case Land Title will close without collecting a duplicate payment from the sellers. 4. The last option is for Land Title not to pay the taxes and have this shown as an exception on Schedule B-2 of the title commitment and Schedule B-II of the policy. The title policy would be issued insuring only the previous year’s (2010) taxes as being paid. New lenders requesting a mortgagee’s policy will not, in most cases, accept this option.

Disclaimer: This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal or accounting advice or other expert assistance is required, the services of a competent professional should be sought.

Empty Nesting

So…There is a new chapter in life?  

    -The kids flew the coop? 

    -Moved on? 

    -Split? 

    -Went to college? (They'll come back!)

    -The nest is empty?

It happens to all of us, so if your kids are still home…SAVOR it….time moves so quickly.

Anyway…So it's just me and the Mrs. rattling around in the 4 bedroom house, with a family room, play room, 3 empty bedrooms, the bikes aren't in the garage anymore, soccer balls are gone, no skate boards in the garage and somehow I'm still cleaning it all up.  The only thing left is the kid's STUFF they want to save, but don't want to take with them. (How does that work?)  FYI - you're not really not an empty nester until the kids take their stuff out of the basement!

The buzz word is "Down Sizing".  Is it real?

Here is a fact:

10,000 people will turn 65 every day for the next 19 years!  

Read that line again: 10,000 people will turn 65 every day for the next 19 years. 

Yes, "Empty Nest" is very real.  We are living longer, and living more years after the kids are gone than ever before in history. Lots of us, and I mean lots of us, are moving to smaller homes.  Homes with few or no stairs, less square footage, no "rec" rooms, wide hallways, and little to no landscape maintenance. 

Moving from the "Family Home" can be a tough one, but many of us are doing just that. 

DALE’S TOP 10 REASONS TO DOWN SIZE:

10.  You have 2 people living in the house. That's 2 people!!!

9.    You probably only need one bed!

8.    You really don't like house guests to…. like, spend the night.

7.    Do you really want to heat 3000 "extra" square feet for fun?

6.    You can actually do something on the weekends besides yard work.

5.    Your list of "Honey Do's" will be reduced by pages.

4.    You might be able to have a second home, or a good vacation!

3.    You won't have to have those "Open House" parties with 75 people.

2.    You can redecorate and buy new furniture real fast without a new mortgage!

1.    The kids can come home anytime, but if you've downsized, they won’t move home!!

CAUTION:  Down sizing means actually buying a smaller house!!

It is fun to do!!

DWS

Buyer Tips 101

As some of you may know, my husband AJ and I are not only purchasing our first home together, but we are diving headfirst into building it. Yikes! We are beyond excited to start this chapter of our life! Throughout this buying process, we have been reminded of how complicated and overwhelming being a “buyer” can be. 

AJ and I thought long and hard about where we wanted to settle down and make our home together. For us, this was an emotional and exciting process. We definitely considered looking at the foreclosure/short sale market. After all, it is well known that you can get a “great deal” and the buying process has significantly improved in 2011 making it less of a pain (although still a pain, in my opinion) than in 2010. 

Our decision about where to buy ultimately came down to location, lifestyle and budget. We first decided that we wanted to live closer to the Tech Center, near both of our offices. We additionally decided our budget did not afford us a custom home in some of the more prestigious neighborhoods south of Denver such as Cherry Hills Village, Buell Mansion, the Preserve or Ravenna (yet!), but that a semi-custom home would be within our means. Every time we would take a day to look at properties, we continually found ourselves driving back to Backcountry, a new home community in Highlands Ranch, located just outside Denver, Colorado and backs to hundreds of acres of open space. For us, it was the feeling we got as we drove through the gate – the kids playing in the street, the parks throughout, the sounds of laughter from the community pool and the hiking and biking opportunities on the trails and the simplified buying process (special shout-out to Austin Ellis, the onsite broker, who was knowledgeable, super friendly and very patient with us!). Although we do not have children (another “yet”!), we felt that Backcountry provides for many of the same luxuries our parents had “back in the day”. We want our kids to be able to ride their bike to their friends’ homes, have neighborhood play dates any day of the week, walk to school, and ride their bikes up to the swimming pool in the summer. And so – we did it! In August we contracted for a home, to be constructed and completed by June of 2012 (no pressure, Austin!). 

For me as a real estate agent, going through the buying process has been a great reminder of what it actually feels like to be a buyer. I have to admit, I got a bit emotionally attached at times and found it necessary to remind myself that buying a home is a “business decision”. Ha! Yes, while it is true that purchasing your home is a business decision since it has the potential of being one of your greatest financial investments, it is also true that buying a home is an emotional decision. As AJ & I went through the buying process, I was reminded of some Basic Buyer Tips I hope you find helpful: 

GET PRE-QUALIFIED 

Initially, BEFORE you begin your home search, you really should meet with a lender. Even if they are not the lender you end up using, they will be able to provide you with your boundaries for your purchase. They should be able to provide you with a MAX of what you would qualify for, a MINIMUM of what you need to have down and an APPROXIMATE mortgage payment based on the current interest rates. Please make sure the monthly mortgage amount they provide you includes PITI: Interest, Principal, Estimated Taxes (an estimate which will vary based on the specific property), and Insurance (again, will vary based on the property). You will have to add in a monthly cost for homeowner’s association dues, if applicable. All of these costs add up. So, the more accurate in your estimates, the better. No one likes surprises! You can get ballpark monthly payment by using a mortgage calculator. However, if you are a more serious buyer, we recommend you speak with a lender. Several of our past clients have worked with, Mo Robinson with On Q Financial. Feel free to give her a call or send her an email. We also encourage you to shop around – various lenders can offer different types of loans at different rates. 

ENGAGE A PROFESSIONAL 

At first glance, this does not seem imperative, but it is. Dale has been representing buyers and sellers for over 30 years. I have been representing clients for 11 years. We have exceptional experience and take representation very seriously. Your real estate broker (preferably us!) should add value to you and your transaction. Brokers work solely on your behalf, negotiate on your behalf and act as your advocate. They are far more than simply a “tour guide” (it is our opinion that showing houses is the easy part – it’s what happens when a buyer writes an offer that buyer representation becomes critical). Your broker should know the market, have access to information that is not available to the general public, be a skilled negotiator, have deep relationships with inspectors/industry professionals and possess have significant experience in conducting real estate transactions.

BE GRATEFUL AND RESPECTFUL OF YOUR BUDGET

Let’s face it: everyone has one. If you ignore your budget, you will undoubtedly regret it later. 

BE FINANCIALLY PREPARED

Yes, this means a down payment. What we used to call “funny-money” (i.e. 0% mortgages or money back at closing) no longer exists. Times have changed and you now must have a significant amount of money down to qualify for a loan (with the exception of FHA financing, which typically requires 3.5% down). In addition, closing costs, inspection costs, furnishings, window coverings, landscaping, title fees, etc., are all additional costs you may expect to incur throughout your buying process. Stretching just to afford your down payment is not the best of all plans – being over prepared is.

DEFINE YOUR PARAMETERS: MAKE A LIST OF YOUR WANTS AND NEEDS

This is YOUR home and it should fit your lifestyle. Think about it and do not be afraid to draw parameters. If you “need” four bedrooms, do not look at homes with three bedrooms. Know how you live, where you want to be relative to your work/family/schools, how you spend your time when you’re inside your home, what the next five-ten years look like for you, etc. These things will help you better determine what you need and what you want in order to live comfortably. 

TAKE NOTES

When you and your real estate broker look at properties, look at the big picture first. Rule “in” and “out” certain areas and neighborhoods. Then, for the areas that fit your desires, take photos of each prospective home and the surroundings. Do you like the surroundings and location? What is next door? Across the street? Immediately after leaving the home, rate the home from 1-10, 10 being the highest.

MAKE A SHORT LIST AND RE-VISIT

When you re-visit your short list of homes, your agent, (Dale and myself, of course!!) should call the listing agent to find out the particulars regarding each property. Some of this information may be helpful in your purchasing decision and negotiating position.

MAKE AN OFFER, DO YOUR DUE DILIGENCE, SECURE FINANCING, CLOSE, MOVE-IN, LIVE HAPPILY EVER AFTER

All joking aside – each of these topics merit their individual blog entry … so, of course, stay tuned! 

If you have hopes to buy a home in 2012, please give us a call! We welcome the opportunity to help you establish a purchasing plan, to work solely on your behalf and to representing you in your home purchase.

Take care,

April

Giving Thanks

Thanksgiving!!

So…..I hope we all had a fun day of friends, family and food!

Did you have enough room to seat everyone?  We didn't!  So do we need a bigger house so we can seat 15 people for dinner once a year?  My wife says we do….I say we don't!!

The empty nester house today often goes without a formal dining room and instead opts for a large "eating area", an over sized eating nook and seating at a kitchen island.  That works great for me! (364 days a year).

My wife did a great job making our large eating area a formal dining room for all!  A little creativity can allow everyone to sit together and enjoy a meal together.  Just because you don't have a conventional formal dining room does not mean you have to sacrifice all the fun of sitting together and enjoying the real meaning of sharing a meal together.  

Remember, the time spent together on holidays or with friends is not in the size of the room, but in the size of the heart and time together!

So ... Don't go buy a dining room with a house attached!!

Hope your Thanksgiving was the best ever!

DWS

Was That Today?

Ok…Do you buy now because rates are low?  Quite honestly, they’re so low it is nuts!  Do you buy now because home values are at a twenty+ year low?  If you are thinking you want to buy low and sell high … let me know how that works out for ya!

Boats have sailed away without me many times before, and I’m no worse for the wear. In 20/20 hindsight, I do wish I had gotten on a couple of them.  In the 80’s the word “Condo” was like a disease.  I didn’t want to list them, sell them, see them or buy them!  Unfortunately, that boat sailed away without me …. I should have bought all the “Condos” I could find. There were many I could have purchased for $7,500.00!!  Knowing what I know now, I should have been on that boat; but no, I thought it was safer on dry land and found myself left on the dock. 

My son just bought a house and has elected not to sell his current residence … he and his wife want to buy low, but do not want to sell low, so they have elected to rent their current house since the rental market is strong, allowing them to take advantage of buying low today. They just locked in an FHA loan at 4.25% and only had to put 2.5% down (the seller/bank is paying up to 1% of their closing costs!). That is one, and very creative way, to skin the cat!

Let’s face it, we all have to live somewhere, and odds are we are going to have to pay money to do so!  (Haven’t figured out how to avoid that one.)  So, if you want to be in the fortunate group of those who bought low, when rates were at a 50-year low, and had the opportunity to pay 40% to 60% less than replacement cost, now is the time.

But, let’s not buy just because there is a “SALE”.  My wife does that all the time!!  (Sorry honey, I’m sure you aren’t alone!)  In addition to being a major investment, Real Estate has always had emotion attached - and still does.  If you’re thinking of buying, now is the time to act. 

Don’t miss your boat!

-DWS