The Latest FHA News from DC

THE LATEST FROM DC:
1) FHA LEGISLATION TAKES A MAJOR STEP FORWARD
On late Friday afternoon, Senate Banking Committee members struck a deal on FHA modernization legislation. This is the key step on the road to enactment of the legislation in the next 30 days assuming the deal holds. The Committee is scheduled to mark-up the bill on Wednesday, September 19th. The FHA bill can now move expeditiously through the Senate because of the bi-partisan support. The key provisions are: (We will provide an in-depth analysis of the provisions after the mark-up)
a. Higher mortgage limits
The Senate bill will increase the FHA limits as follows:
FHA floor increases from 48% to 65% of the GSE limit (i.e. from $200,160 to $271,050)
The new floor will likely be effective upon signature by the President.
FHA ceiling will increase to $417,000
This provision will likely not be effective immediately. FHA will need to analyze local markets to determine whether an increase is justified. We do believe that FHA will move to increase limits ASAP.
b. Lower and more flexible down payment
The compromise will require 1.5% borrower cash investment. There will be a cap of 100% loan-to value ratio. However, the upfront MIP will apparently be required to be included in the 100% LTV effectively capping the loan amount at 98.5% assuming an upfront MIP of 1.5%. At first glance, our thoughts on this provision are:
1. The reduced cash investment (1.5% instead of the current 3%) provides flexibility in helping the borrower to qualify. For example, it would permit the seller to pay closing costs or the homebuyer to pay closing costs through premium pricing. Gifts from acceptable sources will certainly continue to be allowed.
2. If FHA does implement risk-based pricing administratively as they have indicated, the inclusion of the MIP in the 100% LTV calculation would likely require higher down payments from higher risk borrowers. For example, if FHA implemented a 3% upfront premium for a category of borrowers, the maximum LTV would effectively become 97% (100% -3% upfront premiums.
While some would like a lower down payment/cash investment requirement, this provision is probably the best we could hope for in light of current market conditions.

c. No mention of risk-based pricing
We understand there will be no mention of risk-based pricing in the bill. However it will permit a maximum upfront premium of 3% instead of 2.25% as well as an increase in the annual premium.
What is next and when the bill be enacted?
The compromise indicates that a bill is likely. In fact, we would now be shocked if an FHA bill is not passed this year. We would expect the process to be completed and signed by the President in the next 30 days barring some unforeseen circumstance.

That being said, there are several steps to go. First, the House will vote on the legislation on Tuesday. On Wednesday, the Senate Banking Committee will mark-up its bill (highlights above) and then its bill will be sent to the full Senate for action. That should be completed quickly assuming there are no problems at the mark-up.

Probably the most critical step remaining will occur when the FHA bill goes to a conference of House and Senate Committee leaders to reconcile differences in the two bills. Because of the nature of Senate rules (i.e. minority has considerable power), we would expect most controversial provisions to be resolved along the lines of the Senate bill although changes are possible. For example, there will be a House amendment to raise the FHA mortgage limits significantly in high cost areas (as high as $700,000). While it may pass in the House, its odds of inclusion in the final bill are much more questionable at this time. However, market events over the next several weeks could also have a significant impact on this provision and possibly others.

We will, of course, follow this process through the remaining steps that hopefully will end at a bill signing ceremony by the President. While there are still some issues to be resolved, we do believe that it is appropriate to start planning for implementation of major changes to the FHA program including higher mortgage limits and changes to the down payment calculation. By the end of this week, we should have more certainty as to the likely provisions.

2) RISK-BASED PRICING
HUD has indicated that they will be proposing a risk-based price premium structure in a notice early next week. HUD will be soliciting comments before making a final decision. They had wanted to implement this proposal in January 2008. However, based on feedback they are receiving about the time needed to implement such a change, we are hopeful that HUD will delay implementation for at least several more months.

Boulder County Housing Size

Notice to All Home and Land Owners of Unincorporated Boulder County

Be on notice that Boulder County has proposed a revision to the Land Use Code, if enacted, may substantially reduce the value of your home and land.

The reduction in the value of your property will result from a mandatory square footage reduction in the construction of new residences, or additions to existing residences. The current regulations provide for maximum building sizes of 25,000 sq. ft. The officials of Boulder County propose to substantially reduce residence sizes to no more than 4,500 sq. ft. in the mountains and 6,500 sq. ft. on the plains. Your family will feel its detremental effects at the time of construction or future sale of your residence.

We believe that our forefathers meant it when they said that a citizen may use his or her land in any reasonalbe matter so long as it does not create a nuisance for the neighbors. The proposed policy constitutes the taking of private property by the government, but it claims that such taking is justified because it is not taking too much property from too many people. History demonstrates that the erosion of the rights of citizens by government is successful where it is accomplished piecemeal, and only if citizens do not speak out against the denial of their rights in a timely manner.

The County's proposed policy also allows people who are wealthy to avoid the reduction in the value of their property, but effectively precludes people of moderate means from preventing the reduction in the value of their property.

The Boulder Area Realtors Association, which has expertise and experience in maintaining the values of the realty of citizens, recommends the establishment of an unbiased Blue Ribbon Study Panel and Survey to determine the economic impact the proposed revision to the Land Use Code to your property. The Land Use Coalition (http://www.landusecoaltion.org/) agrees with this sensible approach, and requestes the citizens of Boulder County to speak out against the denial of their rights in a timely manner.

Time is short. Now is the time to act to protect your rights. Notify the Boulder County Commissioners and the Boulder County Planning Commission that you will not tolerate the County enacting the proposed revision that is likely to substantially reduce the value of your home and land.

The Boudler County Planning Commission will meet to consider the proposed revision at 6 pm on September 19th, at the Boulder County Courthouse. For additional information, to to http://www.landusecoalition.org/.

Congress Ready to Tackle Mortgage Crisis

With Congress set to reconvene, the mortgage crisis is among lawmakers' top priorities.

Among some of the expected measures to be considered:
> A bill that would lift Fannie Mae and Freddie Mac's portfolio restrictions in an effort to add liquidity to the mortgage market.

> An anti-predatory lending bill that would federally regulate mortgage brokers and make mortgage-backed securities investors partially liable for problem loans. House Financial Services Committee Chairman Barney Frank (D-Mass.) is expected to propose the bill.

> Housing counseling to help curtail foreclosures. Sen. Charles Schumer (D-N.Y.) plans to propose that $100 million be earmarked in an appropriations bill for housing counseling.

> Meanwhile, President Bush has proposed enabling the Federal Housing Administration to back refinances of adjustable-rate mortgages in default or close to default.

> Kurt Pfotenhauer, Mortgage Bankers Association senior vice president of government affairs, says the trade group is in favor of uniform national lending standards. While he has no comment on the legislation to be introduced by Frank on anti-predatory lending, he does not think investors should be held liable for problem loans. Pfotenhauer also expresses concerns about an overreaction on the part of federal lawmakers, noting that "if we go too far in passing rules to protect people in the mortgage market, we could end up denying them access to credit."

Source: Daily Real Estate News

What's In Your IRA?

Many people know that housing is a good long-term investment, but how many consumers have integrated real estate into their retirement strategy?

These days, people can use pensions, 401k accounts, and IRA's to invest in real estate as part of a retirement plan. Self directed IRA's in particular allow investors the flexibility to invest in real estate As an added benefit, if investing through a Roth IRA, capital gains on the property are generally tax-free because contributions have already been taxed.

When considering whether to invest in real estate through an IRA, consumers should consult an expert, since the transaction can be complex, and mistakes can be costly. Intrepid investors,though, can benefit from adding real estate to their retirement portfolio.

The current buyer's market is a great time to invest!

Baby, You Can Drive My Car......

Right Into My Oversized Garage.....

It seems that America's love affair with cars extends to their homes. Despite rising gas prices, the percentage of home buyers who think having a garage with two or more spaces is very important has risen dramatically over the past three years.

According to the 2007 Profile of Buyer's Home Feature Preferences, 57 % of home buyers in 2006 said an oversized garage was very important, compared with only 41% in 2003-2004.

Other features high on buyer's lists included central air conditioning, a walk-in closet in the master bedroom, and a home that is cable/satellite TV-ready.

Source: NAR Home Delivery, Residentail Real Estate Trends
August 2007

Beautify Your Bathroom

Your bathroom may be the smallest room in your home, but remodeling it can feel like a huge project. Here are some tips from Home and Garden Television to help you get it done:

1. Function First. Like the kitchen, the bathroom is one of the hardest-working rooms in the house. Keep function in mind when planning any remodeling or decorating. Consider adding touches that make the room more user-friendly, such as a seat in the shower or additional lighting.
2. Determine layout. Consult the plumbing layout when you are planning to move bathroom fixtures. Think about your daily routine and plan accordingly, keeping fixtures within logical reach of each other (for example, keep the towel rack near the shower).
3. Choose color and style. Think about what you want from the room. Should is be calming? Elegant? Fun? Choose colors that fit your vision. Have fun with your theme or motif, but always keep in mind the size of the room. Too much will appear cluttered.
4. Accent with fixtures. Your faucet and other plumbing fixtures can add drama and appeal to your bathroom. Today’s products offer a plethora of styles and finishes, such as brushed metal, brass and stainless steel.
5. Lighten up. Bathroom lighting is important. Use task lighting for the sink and mirror so you can see clearly. The entire bathroom, however, doesn’t need to be drenched in glaring light. Use softer lighting elsewhere to enhance the mood. 6. Mix materials. Use fabrics and other soft objects to reduce the harshness of tiles and other hard surfaces. Choose soft and luxurious towels, mats and window treatments.

COUNTER INTELLIGENCE

Granite alternatives…. Concrete, glass and stone are gaining ground as popular materials for countertops. Concrete’s biggest advantage is that it can take any shape, and it’s not as pricey as some other natural stone materials. Because it is cast in molds, it can include subtle texturing and decorative objects such as pieces of metal, fossils or glass. If you are using concrete in the kitchen, consider placing raised strips of metal cast into countertops to support pots and pans near the sink and cooking area.

For those who crave ultra-modern design, another option is glass, which comes in nearly limitless colors, shapes, thicknesses and textures. And because it is nonporous, it is stain-proof and hygienic and can handle hot pots without cracking. Since it’s translucent, it can be combined with other design elements, such as glass over aluminum or decorative tile embedded into the slab. Installing lighting under the counter creates added drama and elegance.

Finally, consider engineered stone, which is slightly cheaper than granite. It’s made from quartz crystals and polymer resin, so it’s nearly maintenance-free. Plus, it’s heat- and cold-resistant, mildew-free, stain-resistant and harder than most things you put on it, so it won’t scratch. Finally, it comes in dozens of colors — some mimic the real thing while others are made to match a designer’s palette. The cost ranges from $70 to $120 per square foot with installation.

Outdoor Furniture Fixes

As the days get longer and the weather heats up, you’ll want to take advantage of the season by entertaining outside as much as possible. Tables and chairs that have been exposed to the elements all winter will probably need a good cleaning and perhaps a few repairs. Here’s advice for maintaining different types of outdoor furniture.

Good wood. Wood furniture should be kept under waterproof covers when not in use. To keep it in good shape, start off the season with a sealant such as teak oil for hardwood. If possible, don’t stand wood legs directly on grass because the moisture from the ground can rot untreated wood. For ongoing maintenance, wipe down tables and chairs every two weeks or so with a cloth that’s been wrung out from a solution of soapy wood cleaner.

Plastic fantastic. For resin furniture, guard against fading and brittleness from excessive heat and abrasive cleaners by washing with a mild all-purpose cleaner. When white plastic ages, it can yellow. If your furniture gets to this stage, you can use a mildly abrasive cleaner, which helps prevent black grime from getting embedded in the rough edges of the plastic. Soaking such a stain in a strong bleach solution — 2 1/2 tablespoons bleach to one gallon of water — also helps whiten it, but you may not get uniform results. If you can, position the chair so the bleach solution covers an even area. Rinse the solution off after 30 minutes.

Heavy metal. Metal furniture generally has a protective finish, so all you need to do is wash it with a cloth dipped in soapy water. However, if the coating has started to wear away, you can paint it again with a clear metal varnish. Most cast- or wrought-iron outdoor furniture will already have a clear varnish, but it can wear over time. To repair it, sand the damaged areas carefully before reapplying paint or varnish. Then, throughout the season, wipe down with a soapy cloth and dry very thoroughly.

Chill Out

Want to keep your electric bills from going through the roof this summer? Here are a few environmentally friendly steps you can take to keep things cool.
· Open windows and use portable or ceiling fans instead of operating your air conditioner. Even mild air movement can make you feel three or four degrees cooler.
· Without blocking air flow, shade your outside compressor. Change air filters monthly during the summer.Use a programmable thermostat with your air conditioner to adjust the setting at night or when no one is home.
· Don’t place lamps or TVs near your air conditioning thermostat. The heat from these appliances will cause the air conditioner to run longer.
· Install white window shades, drapes or blinds to reflect heat away from the house. Close curtains on south- and west-facing windows during the day.
· Caulking and weather stripping will keep cool air in during the summer.
· Turn off your computer and monitor when not in use.

The Nose Knows

Can the way your home smells have an impact on how it sells?
You bet!

A poll by Canadian real estate company Royal LePage shows that the odor of a home has a huge impact on buyers’ decisions about whether to buy a home. According to the poll, 53 percent of buyers said strong odors such as pet and cigarette smells had a stronger impact on their impression of a home than overall tidiness and cleanliness, strong wall colors or an outdated facade and landscaping.

Here are some tips for making sure your home has good scents:
· Don’t mask smells with candles or potpourri. Buyers will wonder what odor you are trying to hide.
· Keep the exotic spices and fish to a minimum when cooking the night before a showing. Work toward achieving a “clean” smell.
· Remove animals and litter boxes from the property.­­
Getting rid of repellent scents is the first step, but some staging experts also advise using “homey” smells to entice buyers. After all, who doesn’t love the aroma of freshly baked cookies or pie?

Is Your Home Baby Ready?

More than 2.5 million children are injured or killed each year in household accidents, according to the National Safety Commission (NSC). Fortunately, there are many things you can do at home to keep your child safe — just taking a moment to view your home from a child’s perspective will help you identify many potential hazards.

Suffocation is the most common type of accident in the home for children under four years old and the most common cause of accidental death in children under one. To prevent these accidents, make sure that all pull cords are secured and out of reach of children. Also remember to put all small objects – coins, rings, batteries, etc. – out of children’s reach. And in your child’s bedroom, crib bars should be no more than two-and-three-eighths-inches apart. The Consumer Product Safety Commission has a list of approved cribs on its Web site, www.cpsc.gov.

Another hazard in your home is hot water, which can burn or scald young skin. An easy fix is to set your hot water thermostat to no more than 120 degrees. If you are unable to control your water heater, anti-scald devices for faucets and shower heads can help regulate water temperature. To prevent electrocution, cover all outlets with outlets covers, which can be purchased at any hardware store. Be sure that they cannot be removed easily and are not small enough to be a choking hazard.

To find information on other child safety products and related information, visit www.cpsc.gov and www.nsc.org/library/facts/babyprf.htm.

GET SOME SPACE!

Small spaces can be warm and intimate. But if a room in your home feels more cramped than cozy, there may be a simple way to improve it.

Odette Lueck, of Odette Lueck Interiors in Oakland, Md., says the best way to stretch the size of a room is to start from the ground up. “The thing I use most is diagonal lines on the floor,” says Lueck, who suggests installing wood flooring or tiles in a diagonal line. “No matter which way you look, it’s expanding the border.”

If you’re not ready for a major project, you’d be amazed at what you can accomplish with just a few decorating tricks. First and foremost is color. To make your room appear larger, stick with neutrals and keep backgrounds (wall, furniture, draperies) the same color, says Lueck. But neutral doesn’t have to be boring. “Use your color in accessories,” says Lueck. But beware of patterns. Too many patterns can make a space seem cluttered.

Furniture placement is also important. The number of pieces should be kept to minimum and positioned against a wall. “Use glass coffee tables,” suggests Lueck. “It’s one less thing to be a solid focus in the a room.” Don’t be afraid to use a little creativity. For example, a stack of coffee table books next to chair can serve as a unique end table.

Another option is to embrace the room’s petite size. “More often than not clients
make the mistake of thinking that room always has to be larger,” says Lueck. “Small is
not necessarily bad. A lot of times, what you’re actually striving for is a more
intimate space.” To warm up a small room, include dark colors, lots of wood and plenty of cozy
fabrics.

The Call Of the Outdoors

If you think outdoor living simply requires a few folding chairs and a hibachi on your
back porch, think again. According to the Hearth, Patio and Barbecue
Association (HPBA), homeowners can set up
a basic outdoor living space consisting of a durable, high-performance grill, a dining area with table and chairs, lighting, a patio umbrella and a portable heater or fireplace for as little as $2,500. For larger spaces and budgets, high-end landscaping, an in-ground swimming pool and a kitchen island with appliances create an ideal place to entertain family and friends.

To get you started on building your ideal outdoor room, here are a few tips:
* Decide how you will use the space. Will you entertain family and friends, or use it as a relaxing hideaway for yourself?
* Create a wish list of features you want your outdoor room to have. Clip photos from magazines or keep a notebook of ideas.
* Consider your home’s architectural style, so your outdoor room design complements your indoor space.
* Work with a specialty retailer who can suggest products and guide you on your final plan.
* Sketch a layout of your outdoor room with the fireplace as the focal point. Then blend in the cooking and eating areas.
* Consider the foundation, such as retaining walls, fences and decks.
* For large-scale projects, implement your plan over a two- or three-year period, beginning with electrical and plumbing. Accessorize the space during the second year, and add landscaping last.
Once your outdoor room is complete, you won’t want to spend time anywhere else.

COLO. 7 UPGRADES AND REROUTING UNDER REVIEW

Eight municipalities in Adams, Weld and Boulder Counties and now working with the Colorado Department of Transportation (CDOT) to consider significant expansion and rerouting of Colorado 7 to accommodate future development and transportation planning. Under review is the section of highway stretching east from Lafayette, bordering Broomfield, Erie and Dacono, and that runs through sections of Brighton. The municipalities and CDOT are cooperating to raise the $700,000 needed to complete the planning. The goal is to determine where additional lanes, realignments, traffic signals and intersection improvements are needed. CDOT will add $350,000 to the funding. Brighton officials are very interested in rerouting around its downtown and to mitigate high volume, high speed traffic. Locally, Lafayette and Erie are cooperating to reroute the highway north along 119th Street to Arapahoe, mitigating the nearly 20,000 vehicles that pass through Lafayette daily. Once funded, the study will commence in January 2008.

Source: BARA/In Region

Local Real Estate 1st Quarter Report

Local Real Estate Report
1st Quarter 2007

Housing market stats for the 1st quarter of 2007 have been tabulated and show some pros and cons over the 4th quarter of 2006 as follows:

Q4 ’06 Q1 ’07 Q2 Forecast
Average Price $456,100 $469,000 ↑
# Homes on the Market 1,821 2,180 ↓
# Homes Sold 782 659 ↑
# New Homes Built 51 47 ↑
Avg # of Days on Market 107 124 ↓

In the Boulder area marketplace, we are continuing to see homes being sold at a higher than average pace and price range than that of the rest of the nation. The market is correcting itself however with some price moderation; the percentage of asking price vs. sold price remains at a respectable mid 90’s percentage range in Boulder County. Combined with historically low mortgage rates, home sales should continue at a steady pace – people still need homes!

The region added 5,900 jobs in the past 12 months. More jobs could also be added based on the weakness in the dollar, which helps the U.S. exporting companies. The forecast, as reported by Lawrence Yun, NAR Senior Research Forecaster: “Best guess is for home sales to show a year-over-year growth by the 4th quarter. The momentum will strengthen in 2008. Prices will also show a respectable rise in 2008. The market just needs to pass through the subprime loan implosion in 2007.”



Source: Information and Real Estate Services, LLC

REAL ESTATE - A LOCAL MARKET

First quarter statistics for the Boulder area real estate market are encouraging:

• The average price of homes in UP!
• Mortgage rates remain low!

According to NAR, the forecast for the second quarter indicates that the average price per home will continue to rise; the number of homes on the market will decline; the number of homes sold will rise; the number of new homes built will rise; and, the average days on the market will decline.

Integrity!

In today's dog-eat-dog world, the word "integrity" has become more of a concept than an actual character trait. Watch an old Jimmy Stewart movie sometime, you'll learn about old-fashioned integrity. Remember George Bailey in "It's a Wonderful Life?" He always did the thing he knew in his heart was right.

I wouldn't say that I'm anything like George Bailey, but I will say that in the business of real estate, integrity is my greatest asset, one that I protect with every decision, increase with every satisfied customer, and ensure with every positive action.

You deserve the absolute highest level of integrity in every transaction. And that's my pledge to you, and your friends or others that you might refer to me.

If there is any way that I can help you or an associate, please call at your convenience.

Spring Spruce-Up Tips

9 Spring Spruce-ups
On a Shoestring

LowesRealtorBenefits.com
Source - Reprinted with permission for our customers: © 2007 by Lowe’s®.
1. Spring into cleaning – Use a little elbow grease to
make your floors, windows, appliances and light
fixtures sparkle. Potential buyers feel more comfortable
when viewing a clean house.
2. Minimize clutter – “Less is more” when it comes
to staging your home for sale. Put anything in storage
that takes away from a room’s overall impact.
3. Organize closets – A well-organized closet will appear
roomier, which is what buyers want. There are
a number of affordable closet shelving and storage
systems that you can install yourself.
4. Paint works wonders – Fresh paint can be the
least expensive way to transform a room. Neutral
colors work best because a buyer can move in
now and choose their custom colors later.
5. Make a great first impression – Pretend that
you’re entering your home for the first time. If there
are cobwebs or peeling paint on your front door,
that first impression will be negative. Make needed
repairs and replace an overly-worn welcome mat
with a new one.
6. Add color with containers – Add container plantings
to your front entrance for a welcoming focal
point. The following plants are perfect for spring:
ivy, sweet alyssum, geranium, snapdragon, salvia,
liriope, and dianthus.
7. Fresh cut flowers – Fresh flowers bring the outdoors
inside, adding color and aroma. If your home
is painted in neutral tones, choose brightly colored
flowers. If your home is already full of color, opt for
lighter hues, such as white or yellow.
8. Spring touches – Lighten up your decorating
with throws and toss pillows that say “Spring”.
Pack away those heavier quilts and winter accent
pieces.
9. Hot color trends – This Spring, soothing mint and
bright foliage are two striking variations of this
season’s signature color: green. Other tones also
incorporate a hint of green, including light, airy
blues and deeper gray teals. Honey-hued yellows
and subtle shaded purples, along with bright white
round out the season’s palette.

Tax Time!

Look for New Breaks at Tax Time
Last-minute changes may affect your 2006 income taxes.


Before you file your 2006 income taxes, double-check that you and your tax preparer have digested the last-minute changes made with the Tax Relief and Health Care Act of 2006, passed December 20, 2006.

The good news: You may qualify for some of these deductions.

The bad news: The tax law changes were passed after the IRS's November print deadline for key 2006 forms, which means that some of the printed forms you have in hand could be inaccurate. Yes, those tax forms that are already difficult for most of us to decipher have the added level of difficulty with possible inaccuracies.

The IRS knew that special extenders could be passed by Congress, so some of their forms indicate that there was legislation pending. Still, the IRS decided not to reprint all of the 2006 tax forms that are affected. Instead, they are relying on you to find out about the changes to correctly fill out the paper forms or download the correct forms from their website.

Before you say that you've missed the boat on any possible way to take advantage of the changes because you have already filed your returns for 2006, stop that thought. Ask your tax preparer to help you make the correction on Form 1040X if you filed as an individual or Form 1120X if you filed as a corporation. In most cases, you have up to three years to file the correction.

Many of the changes include extensions to previously discontinued programs. Listed below are the changes that are most likely to affect you.

Health savings accounts (HSAs) function a lot like IRAs, except they are earmarked for healthcare expenses. If you have an HSA, you can claim a tax deduction for contributions that you — not your employer — make to your tax-deductible HSA in 2006. Planning for the rest of 2007, you can make pre-tax contributions equal to your annual deductible, up to $2,700. (These contributions aren't included in your gross income.) If you want to transfer funds into your HSA from your IRA, you can make a one-time transfer of $2,850. You can also make a one-time transfer from a flexible spending account or a health reimbursement account. There are restrictions on the maximum transfer amount, so check with your accountant before making changes.

IRA contribution limits have risen for the 50+-year-olds who have Roth and traditional IRAs: from $4,500 to $5,000 for 2006. If you are under 50, the limit is still $4,000. If you are 70-1/2 or older, you can transfer up to $100,000 tax-free to an eligible charity. This contribution counts toward your minimum required distribution, which means that it's a tax-free way of moving the required funds out of your IRA. (More information can be found at IRS News Release IR-2006-192.

Welfare to Work Credit (WTWC) and Work Opportunity Tax Credit (WOTC) concerns employers who hire economically disadvantaged employees — convicted felons, food stamp recipients under age 25, high-risk youths, etc. This credit had expired at the end of 2005 but was extended through 2007. If you have hired someone from a qualifying group, you can typically claim 40 percent of the qualified first-year wages, with a maximum of $2,400. If you've hired someone this year who may qualify you for this credit, keep in mind that WTWC and WOTC are combining into just the WOTC, which means more changes. (For more information, click here and here.

Sales tax claims have changed for states that don't have state and local income taxes. The IRS allowed those taxpayers to claim state and local sales taxes in 2004 and 2005. With the end-of-the-year extenders, those affected taxpayers can continue to claim sales tax (including any paid for houses, cars, and boats) through 2007. The sales-tax tables weren't included in the Form 1040, so you will need to visit the IRS website for Publication 600, which helps figure out the deduction that is done on line 5 of Schedule A with the notation 'ST' to the left of line 5. For more information, click here.)

Your personal taxes If you are keenly tax-aware, you know that around November each year the IRS uses its authority to make some decisions that affect income tax filing, including those that involve cost-of-living deductions. A few of the other 2006 income tax changes that you should know about include the following:

Standard deductions typically change each year, based on cost-of-living changes. For married couples filing a joint return and qualifying widows and widowers, the standard deduction went up $300 to $10,300. For singles and married people who file separately, it rose $150 to $5,150. Heads of households have a standard deduction of $7,550 — up $250.

Standard mileage rates also change almost every year. For 2006, the mileage rate for business use of a vehicle was 44.5 cents per mile. The rate for this year, 2007, is 48.5 cents per mile. Also, if you are involved in helping out with any charitable building with Katrina, the mileage rate is 32 cents per mile for 2006, which is higher than the standard 14 cents per mile for other charitable services.

Direct-deposit tax refund choices have expanded for 2007. Starting with your 2006 federal income tax refund, you can split your refund among three bank accounts. You will need to complete Form 8888. If you want funds deposited in just one account, just use the direct-deposit line on Form 1040.

Overwhelmed? Tax laws and the IRS forms can seem daunting, but it's worth taking the time to check into these end-of-the-year changes. They could affect your income tax return this year and may even affect the way you are planning to manage the rest of 2007.

If you'd like more information about the last minute tax changes, check out IRS Pub. 553 Highlights of 2006 Tax Changes.

Source: Theresa Coleman is a freelance writer and editor based in Ambler, Pa. She has an extensive background in publishing with the National Association of Home Builders, covering job-site safety among other topics.

The Advantages of Working with a REALTOR

Working with a real estate professional who is a REALTOR® is in your best interest. That's because:

Not everyone who sells real estate is a REALTOR®. Possessing a real estate license does not afford instant REALTOR® status; an important distinction of which you need to be aware. A REALTOR® is a member of local, state and national professional trade associations and, as such, has access to a vast array of educational programs, research and resources. A REALTOR® subscribes to a strict Code of Ethics developed by the NATIONAL ASSOCIATION OF REALTORS®. REALTORS® pledge to provide fair treatment for all parties involved, protect the right of individuals to own property and keep abreast of changes in real estate practice through continuing education and interaction with other professionals.

REALTORS® also are committed to higher levels of education and professional development; many REALTORS® have earned professional designations or specialty certifications requiring intensive study. For example, REALTORS® who have obtained the Accredited Buyer Representative and Certified Residential Specialist designations have been trained in all aspects of serving as buyers' and sellers' representatives in real estate transactions.

Your REALTOR® can tap into numerous resources, like immediate access to full-time real estate attorneys who can provide objective up-to-the-minute counsel. Your REALTOR® also receives up-to-date information on a wide variety of legal, financial and economic issues and has access to an association with more than 80 years of experience in real estate. And, if things don't work out, your REALTOR® can offer arbitration as a choice instead of lengthy and expensive legal proceedings.

In addition to subscribing to the REALTOR® Code of Ethics and belonging to their local, state and national REALTOR® associations, some REALTORS® have undergone additional training to serve specific markets and client groups. If, for example, you'd like to work with a REALTOR® who is familiar with international transactions or a REALTOR® who works primarily with elderly clients, you might want to find REALTORS® who are designated as Certified International Property Specialists (CIPS) or Senior Real Estate Specialists (SRES), respectively.

E-Mail

Get Wired: E-mail Mistakes That Make You Say, 'Uh Oh'

Here are some easily avoidable mistakes you should know to keep your image and inbox in tip-top shape.

Failing to follow e-mail etiquette:
- Don't write when you're angry. Calm down. Have someone else edit your e-mail.- Don't use sarcasm. You may think you're clever, but the recipient will be put off.
- DON'T USE ALL UPPERCASE! That's the e-mail equivalent of yelling. Go easy on the exclamation marks, too. Overuse dulls their effectiveness.
- Use clear subject lines. That will help people decide whether to read the e-mail now or later.
- Keep it short. If your e-mail is more than two paragraphs, maybe you should use the telephone.

E-mail is almost like talking. We use it so much that we don't really think about it. But there are rules and courtesies, just as there are with talking. Giving them some additional thought could make your e-mail experience more satisfying and your recipients much happier.

Source: MSN.com

FREE SEMINAR

REAL ESTATE INVESTMENT SEMINAR

LEARN TO USE THE KNOWLEDGE OF INDUSTRY EXPERTS!

Seminar Details
Date Sunday, January 28, 2007
Time 1:00 ~ 4:00 p.m.
Location RE/MAX of Boulder, Inc.
Call to reserve your seat today ~ Space is limited
(303) 415.3590

Refreshments Provided

• Economic Outlook for Boulder & Colorado
• Investment Strategies In Today’s Market
• Foreclosure Investments ~ Pitfalls and Profits
• Panel Discussion ~ Ask The Experts!
  Bring All Of Your Questions And Ask The Experts For Their Advice!
  1031 Exchanges; Using Your IRA To Fund Investments; Mortgage Strategies;
  Title Commitments; Estate Planning, and Tax Advantages; and,
  Tenant-In-Common Investments
  
  
  Ask The Experts:
• Lou Barnes, Owner
  Boulder West Financial Services
  Attended Choate School & Brown University
  Colorado Real Estate Broker since 1978
  National Association of Securities Dealers Principal and Sales Licenses
  Author & Publisher of Mortgage Credit News, a national weekly newsletter
  Author of a finance column for the Boulder Daily Camera since 1992
• Mark Casey, Regional Director
  SCI Real Estate Investments, LLC
  MBA, Colgate Darden School, University of Virginia
  BS, University of Missouri
  20+ years of progressively challenging commercial real estate experience
  At the individual investor level, he has successfully structured ownership groups
  and facilitated tax-deferring 1031 Exchanges
• AJ Chamberlin, Broker Associate
  Residential REALTOR® since 1990
  Active member of National Association of REALTORS®
  Active member of Colorado Association of REALTORS®
  Chairperson of State Legislative Committee, Land Use/ CAR
  President, Property Owners for Sensible Road Policy
  Former President, Sugar Loaf Community Inc.
  Former President, Land Use Coalition
  Recipiant of Colorado Realtors Political Service Award, 2005
  BA, University of Colorado
• John Chamberlin, Broker Associate
  Residential REALTOR® since 1985
  Active member of National Association of REALTORS®
  Active member of Colorado Association of REALTORS®
  Active member of Real Estate Buyer’s Agent Council®
  Past Director of Boulder Area Realtor Association®
  Past member of Arbitration Committee, BARA
  Past member of Grievance Committee, BARA
  Past member of MLS Committee, BARA
  Past member of MAD Committee, BARA
  Former Owner/Broker of ERA 1st Choice Realty, Inc.
  New Home Sales Specialist/Former On-Site Builder Sale Manager
• Jim Hunter, Production Manager of Northern Colorado
  First National Bank
  Attended University of Maryland & Towson State University
  Certified Mortgage Lender (CML)
  Past president of Northern Chapter of the Colorado Mortgage Lenders Association
  Member Board of Directors, Northern Chapter Colorado Mortgage Lenders Association
  Member of Fort Collins Sertoma, a national service club
  Member of Colorado State Men’s Roundball Club
• Betty Marick, CES
  1031 Corporation Exchange Professionals
  Certified Exchange Specialist since 1998
  CES, Federation of Exchange Accommodators
  She was among the first in the nation to receive her CES designation
  Former escrow officer
  Former title examiner
• Colleen P. Weaverling, CPA
  Certified Public Accountant since 1982
  BS, Business Administration from Trinity University, San Antonio TX
  Specializing in Individuals, Small Business, International, Personal Service
  Corporations, Accounting and Taxation, Medical/Dental Practices
  Member of American Institute of CPA’s
  Member of Colorado Society of CPA’s
  League Coordinator of Boulder Tennis Association
  Founding member of Centennial Valley Tennis Association
  Past treasurer of Centennial Valley Tennis Association
• Karen Woolhiser, Senior Residential Mortgage Lender
  First National Bank of Colorado
  Top producer of residential mortgages since 1974
  Preferred mortgage lender with RE/MAX of Boulder for 6 years
  Major fund raiser for Boulder Community Hospital & Boulder County Hospice
  “My #1 goal is to design a loan program to meet your specific needs.”
• Catherine Wynne, VP
  Entrust New Direction IRA, Inc.
  Catherine Wynne is one of the two principals in Entrust New Direction IRA, Inc. New Direction is a self-directed IRA administrator which assists clients who want to diversify their IRA/401k plans into non-securities based assets like real estate. She has extensive background in buying and selling commercial real estate, both as an investor and an IRA administrator. The result is that Catherine is intimately familiar with what it takes to make a real estate investment — taxable or otherwise — work. She understands that assembling the investment and paying attention to the details of the transaction as well as the IRS rules is important. Working primarily in client asset acquisition she is well acquainted with the IRAs purchase of a wide variety of assets such as mortgages, notes, private placements and LLCs. Catherine has a BS in Structural Engineering from the University of Pittsburgh and spent the first part of her career in oil and gas production, later moving into nuclear power plant design with Westinghouse before moving into retirement plan administration.

5 Reason You Need A Realtor

5 Reasons You Need A REALTOR

A real estate transaction is complicated. In most cases, buying or selling a home requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page government-mandated settlement statements. A knowledgeable guide through this complexity can help you avoid delays or costly mistakes.

Selling or buying a home is time consuming. Even in a strong market, homes in our area stay on the market for an average of 77 days. And it usually takes another 35 days or so for the transaction to close after an offer is accepted.

Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with someone who speaks that language.

REALTORS have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. That’s why having an expert on your side is critical.

REALTORS provide objectivity. Since a home often symbolizes family, rest, and security, not just four walls and roof, homeselling or buying is often a very emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you keep focused on both the business and emotional issues most important to you.

REALTORS are members of the NATIONAL ASSOCIATION OF REALTORS, a trade organization of more than 1 million members nationwide. REALTORS subscribe to a stringent code of ethics that helps guarantee the highest level of service and integrity.

Freddie Mac Announcement

Freddie Mac economist says worst of US housing slump over

Nov 15, 2006
WASHINGTON (MarketWatch) -- The worst of the nation's housing slump is over, and the market should show signs of a pickup around mid-2007, a senior economist at Freddie Mac (FRE) said Wednesday.

"I think the worst is behind us in terms of the downturn in the housing market," said Frank Nothaft, Freddie Mac vice president and chief economist, at a luncheon in Washington, D.C.
While Nothaft felt the market may not have reached its "trough" yet, he said it was unlikely that housing starts would plummet as dramatically as they did from the third quarter of 2005 to the third quarter of 2006, when they fell by 18%.

"Housing starts will trend a bit lower, and we have them bottoming out at some point in the first half of 2007," Nothaft said. "I think by the midpoint of 2007 we're going to consistently see some positive signs," he added.

Those predictions for the housing market coincide with Nothaft's expectations for below-trend overall economic growth in the first half of 2007, followed by an uptick in the second half of next year, with overall gross domestic product growth coming in at 3.2% for 2007.

Real Estate Real Talk!

Are you all tired of being beaten up by the press about how bad the real estate market is?

Don't they realize that LOCALLY this is our second best year ever? 2005 was the best!

Don't they also realize that the market slows down about this time every year?

Yes, we have higher amount of inventory, but the prices are still inching up!

Here is a breakdown of September 2005 - September 2006 average house price changes:

Boulder + 5.8 %

Broomfield + 1.7 %

Erie + 0.4 %

Lafayette + 3.5 %

Longmont + 3.5 %

Louisville + 6.7 %

Superior + 5.4 %

Mountains + 9.9 %

Plains + 8.2 %

MEDIA HYPE

Economists Challenge Media's Negative Drumbeat on Housing

By Kenneth R. Harney, Realty Times Columnist: Is it a housing bust or a media-driven panic? Mike Moran, chief economist for Wall Street's Daiwa Securities America, says he's surprised that virtually nobody has challenged the constant drumbeat of negative headlines and TV news warnings of imminent crashes and home price meltdowns.

"It's really been way out of line with reality," says Moran, whose firm specializes in the bond market. When a 1.7 percent decline in the median home price nationwide sparks headlines about the "housing bust," that is "just pure sensationalism about what is going on here," he said in an interview.

The housing market "is going through a correction that's badly needed" after five years of record sales and price appreciation. "The key issue is whether it is orderly or disorderly" - and it's clearly the former. Yet the financial press and TV news programs are "portraying it as a catastrophe."

Moran got indirect support for that view from other economists, including the Mortgage Bankers Association of America's chief economist, Doug Duncan, who said "the rhetoric is just way overwrought" - the sky is not falling in the real estate and mortgage sectors.

To the contrary, even the Federal Reserve's vice chairman believes the current correction will not be dramatic or even that long-lived, and that the housing slowdown will not have dire side effects on other parts of the economy.

In a speech that went virtually unreported by major media, vice chairman Donald L. Kohn told New York analysts that the "rebalancing" of prices to better fit current demand that is under way in many metropolitan markets is a normal, cyclical event - not an incipient disaster. In fact, it may even be a healthy and necessary part of the cycle: "The reported declines in new home prices in a number of areas should help facilitate the rebalancing of supply and demand" - i.e., lower prices should help gradually expand the number of serious buyers looking for houses.

Thanks to strong underlying demographic factors - new household formations and population growth - the current down phase may be relatively short-lived, Kohn suggested. New housing "starts may be closer to their (low point) than to their peak." If one takes mid-summer 2005 as the peak of the multi-year housing boom, Kohn appeared to suggest that the low point of the cycle - and the beginning of the eventual turnaround - could be just over the horizon.

The latest pending home sale index from the National Association of Realtors, which showed a surprising 4.3 percent jump in the number of sales in the contract stage, but not yet closed, supports that conclusion.

Kohn also noted that other economic conditions today do not point to a deep housing price recession or bust. For example, long-term mortgage interest rates are about a point above their historic lows, the Fed itself has stopped raising short-term rates, gas prices are falling, and the unemployment rate just dropped to 4.6 percent.

The current "situation stands in sharp contrast to some past downturns in the housing market" - in the early 1980s especially - "that followed actions by the Federal Reserve to tighten credit conditions significantly."

"Continuing growth in real incomes should underpin the demand for housing," said Kohn, "and as home prices stop rising, help to erode affordability constraints."

How come you're reading about the Fed vice chairman's moderately upbeat speech here rather than watching it on the evening news or reading about it in your newspaper?

Good question.

SUPPLY & DEMAND

There has been a lot of news media in the recent past about the "slowing housing market"....

Did you know that this year ranks among one of the highest in home sales? Well, probably not, the news media isn't talking about that.....

There are times when the economy is brisk and everyone feels confident about the future. As a result, people spend money. They eat out more, buy new cars, and they buy houses!

In a slowing market where the supply of available houses is greater than the supply of buyers, appreciation may slow and prices may even fall. If you are lucky enough to purchase a home during a slow period, you will probably have lower interest rates available for financing, you can be reasonably certain the economy will begin to show strength again and along with it higher appreciation rates.

Well, we are in that SUPPLY & DEMAND timeframe, interest rates are low AND NOW IS A GREAT TIME TO INVEST IN A HOME PURCHASE!

Since 1983, we have had two failrly long expanses of hot real estate markets with only a slight recession in between each. You would not want ot wait nine years to buy a home, would you? You could miss out on a substational amount of appreciation by waiting, and end up paying much higher prices.

BUY NOW - THERE IS A FABULOUS SUPPLY - LOW INTEREST RATES - LOW PRICES!

Best Of The Best

We're Number One!

Boulder ranks high in many national publications lists.

And, RE/MAX of Boulder, Inc. , once again wins the destinction by being voted "Best Of The Best" - Boulder Realtors!

READY - SET - BUY

WHETHER THE HOME YOU ARE ABOUT TO BUY IS NEWLY BUILT OR PREOWNED - ESTABLISHING YOUR PRIORITIES EARLY IN THE HOUSEHUNTING PROCESS IS VITAL!

• Identify FAMILY priorities: Begin with a family discussion of priorities, a "must list". Establish a price range and mortgage amount that you can qualify for. Determine how long you expect to live there and its location. Select a competent and experienced REALTOR.
• Define INDIVIDUAL priorities: Identify privacy needs, family and individual activity requirements, and space needs to accommodate your current and anticipated lifestyles and preview homes that fit those priorities as closely as possible.
• Establish MONETARY priorities: Expect some anxiety - it's normal whether you are a first time buyers or veteran movers. Avoid "qualification anxiety" by meeting with a lender early-on so that you know what price range you can qualify for and search with your REALTOR in an appropriate range.

WHY RENT WHEN YOU CAN OWN

Home Ownership - A Good Investment In Your Future!

As a general rule, homes appreciate about five percent a year. Some years will be more, some less. The figure will vary from neighborhood to neighborhood, and region to region.
Five percent may not seem like that much at first. Stocks, may at times, appreciate much more and you could currently earn 4.87 % with 30 year treasury bonds, the safest investment of all.
Over the last 10 years, the cost of renting housing in the U.S. has increased an average of 3% per year. That means that an apartment or home renting for $1,000 per month will cost more than $1,300 per month in 10 years. If you rent the same home for 10 years, the total amount you would pay for rent will equal $137,567!

None of that $137,567 is returned to you, either through savings or as an investment. Homeownership, on the other hand, has tax advantages that renting does not, and those advantages can help you save money! Unlike your monthly rent, part of your monthly mortgage payment “comes back to you” in tax savings.

Return On Investment

If you bought a $250,000 house, obtained a mortgage, and put as much as 20% down—that would be an investment of $50,000. At an appreciation rate of 3% annually, a $250,000 home would increase in value $7,500 during the first year. That means that you earned $7,500 with an investment of $50,000—an annual “return on investment” of 15 %!

Plus Income Tax Savings &Tax Advantages

Because of income tax deductions, the government is basically subsidizing your purchase of a home. All of the interest and property taxes you pay in a given year may be deducted from your gross income to reduce your taxable income.

For example, assume you purchase a home that costs $250,000. Your down payment is $50,000 (plus closing costs incurred to actually process the transaction). You finance the balance with a 30 year fixed rate mortgage at 7 % interest, making your initial loan balance $200,000. During the first year you would pay $13,935 in interest. If your first payment is January 1st, your taxable income would be $6,135 less due to the IRS interest rate deduction!
Property taxes are deductible too. Whatever property taxes you pay in a given year may also be deducted from your gross income, lowering your tax obligation.

Tax Advantage & Home Ownership

Annual Taxable Income $50,000
Interest Deduction -13,935
Property Tax Deduction - 2,500
Taxable Income $33,565
Tax Liability $10,069

Annual Tax Savings $3,401
Return on Investment $7,500
Principal Payment $2,031
Ownership Advantage $12,932

Freedom & Individualism

When you rent, you are normally limited on what you can do to improve your home. You have to get permission to make certain types of improvements. Nor does it make sense to spend thousands of dollars painting, putting in carpet, tile or window coverings when the main person who benefits is the landlord, not you.
When you own a home, however, you can do whatever you want. You get the benefits of any improvements you make, plus you get to live in an environment you have created.

Your rate of return when buying a home is higher

than most any other investment you could make!

It's Easy Being Green!

Have A BBQ!

You knew grilling was a healthy way to cook vittles, but did you know it was good for the air? Outdoor grills take less energy than electric kitchen stoves. They also keep heat out of the house, lowering air conditioning costs.

Stick with grills that use propane or natural gas; they emit 5.6 pounds of carbon dioxide into the atmosphere while a charcoal grill belches 11 pounds of the air-polluting compound.

One more thing - dine on reuseable plates, not disposable paper ones.....The Tress Will Thank You!

Economic Outlook & Real Estate

Excerpts from The Kiplinger Report:


Will housing's slump cause a recession?
* No. But it will slow growth a lot through next year, until the balance of supply and demand for residential property returns. Next year...2.5% economic growth TOPS, and it may well be closer to 2%.

Housing is delivering a triple economic whammy:
* A sharp, sudden drop in housing construction, financial strains on many homeowners' incomes and a major chill in consumer confidence.
* Energy prices remain the linchpin on whether the economy sinks or swims in 2007.
A big increase in costs of oil and other fuels would be too much for U.S. consumers to bear on top of the hit they're taking from housing.
* Most likely, oil prices have peaked and will start a slow easing after Labor Day. But supply disruption risks are rising as conflicts in the Middle East gain intensity.
* Average home prices will stay flat through about the middle of next year. By then, builders will have curtailed supply enough to allow the current overhang of about 300,000 houses nationwide to start to be absorbed by the market.
* Still, sellers will face a dismal spring, usually the best sales season.
* We see starts sliding to 1.7 million next year from 1.85 million this year. Population trends argue for an average of 1.8 million homes to be added annually, but builders surpassed that level in 2004 and 2005.
* Much of that surplus went to speculators, but the demand has vanished.
* Housing will play a big part in slowing job growth. Next year, net employment growth will slacken to an average of 117,000 a month.
* Home building and related fields...mortgage finance, furnishings, design, landscaping, etc...have made up 25% of overall job growth since 2002.

The housing cooldown will have a broader reach than expected just a few months ago. Back then, it seemed that the bulk of the downturn would be restricted to former boom areas, located mainly on the coasts. But sluggishness in some industries, especially autos, is taking its toll on some inland areas, notably Ind., Mich., Ohio and parts of Pa. and N.Y.

That doesn't spell a shift from a market correction to a crash. The market is adjusting, albeit very quickly, from an extended period of unusually robust activity made frothy by investment-led purchases. By late 2007, homeownership will resume its historical role as a relatively secure store of value that also provides shelter.

Strong global demand is putting a firm floor under oil prices, keeping them between $70 and $75 a barrel through Nov. at least.
* Of course, any new threat to supplies will produce sharp price spikes.
* Gasoline prices WILL start coming down after Labor Day, as usual.
* But motorists may hardly notice. In past years, pump prices fell about 15% between the end of summer and early Jan. This year, the drop will be about half that, to $2.75 a gallon, on average, from $2.95 now.
* Diesel fuel...down only about a dime, from $3.11 a gallon.
* Heating oil...up about 30¢ a gallon, on average, this winter from $2.80 this summer. That's about 25¢ a gallon higher than a year ago.
* Natural gas will be much costlier by year end as well, increasing to $10 to $12 per million British thermal units, from $7 now, as demand for electricity to heat homes puts pressure on scant supplies.

Although many large U.S. companies are flush with cash... Not all are prosperous. Public company bankruptcies are rising this year for the first time since 2001 and will keep climbing for years. Among the reasons: Higher interest rates, a cooling housing market and high energy costs will bedevil firms struggling to pay off debt.

HOW A NEW CAR PAYMENT REDUCES YOUR PURCHASE PRICE!

BUY THE HOUSE FIRST!

When determining your ability to qualify for a mortgage, lenders look at what is called your "debt-to-income" ratio. A debt-to-income ratio is the percentage of your gross monthly income that you spend on debt. This will include your monthly housing costs, including principal, interest, taxes, insurance, and HOA fees if applicable It will also include your monthly consumer debt, including credit cards, student loans, installment debt, and ..... car payments.

For example, suppose you earn $5,000/month and you have a car payment of $400. At current interest rates you would qualify for approximately $55,000 LESS than if you did not have the car payment. Even if you feel you can afford the car payment, mortgage companies approve your mortgage based on THEIR guidelines, not YOURS!

However, if you have not already bought a car, remember one thing. Whenever the thought of buying a car enteres you mind, think ahead.....Think about buying a home first. Buying a home is a much more important purchase when considering your future financial well being.

Do Not Buy The Car First -- Buy The House First!

Buying A Home Is A Good Investment!

As a general rule, homes appreciate about four or five percent in a year. Some years will be more, some less. The figure will vary from neighbohood to neighborhood and from region to region. Boulder County has generally seen much higher appreciation rates over the years.

Five perdent may not seem like much. Stocks can sometimes appreciate much more and treasury bills or bonds are a pretty safe return on investment.

Let's take a look at a property investment....

• If you bought a home for $200,000 with a 20% downpayment, your initial investment would be $40,000. At an appreciation rate of 5%, your home would increase in value by $10,000 during the 1st year. Not bad on a $40,000 investment!
• You are also making mortgage payments and paying property taxes. However, since the interest you pay on your mortgage and your property taxes are both tax deductible, the governments is essentially sudsidizing your home purchase.

Your rate of return on your home purchase investment is higher than most any other investment you could make!

Pikes Pike Bicentennial Celebration

July 14 - August 15

Original Pike documents from the National Archives will be on display at the Colorado Springs Pioneers Museum. This will be the first time these documents have been seen in this region since Zebulon Pike was here 200 years ago!

Pikes Peak was first seen by Zebulon Pike on November 15, 1806.

Many activities to celebrate are going on throughout the year.

Visit www.zebulonpike.org for more details.

ARE YOU READY FOR SOME FOOTBALL?

The first pre-season Broncos football game is just 8 days away!

Are you ready?

The game is at Detroit but will be televised on CBS.

Remember the time difference!

Don't miss a minute!

7:30 p.m. EDT from Ford Field

IMPACT ON EDUCATION

Crayons to Calculators Helps Boulder Valley Students

Start School Ready to Learn

Do you know that over 4000 students in the Boulder Valley School District (BVSD) who are from low-income homes routinely begin school without adequate supplies? Not only are these students unprepared, they never experience the excitement of starting school armed with new supplies.

To ensure that these students start school prepared, Impact on Education, along with five other non-profits, is involved with Crayons to Calculators, a community-wide school supply drive for students in need. The drive is a partnership among Extras for Education, Family Learning Center, Foothills United Way, “I Have a Dream”® Foundation of Boulder County, Impact on Education and Sister Carmen Community Center. It is sponsored by the Boulder Rotary Club Foundation and Corporate Express and supported by about 15 local financial institutions, corporations and organizations.

Crayons to Calculators aims to ensure that all BVSD students start school ready to learn. But the drive needs your help. Individuals can support the drive by filling a backpack for a student in need, donating cash online or donating loose supplies at one of about 30 supply drop-off locations. To learn more, log on to www.CrayonsToCalculators.org or call (303) 245-5880.
You also may send a check to Crayons to Calculators, care of Impact on Education, 75 Manhattan Drive, Suite 205, Boulder, CO 80303. Together, we can ensure that all BVSD students start school prepared.

Insert taken from Boulder Valley School District Newsletter

The Honeymoon Is Over

The media has recently been reporting that the real estate market is slowing. Boulder County sales statistics substantiate these reprots with year to year sales comparison ot be off 5% and inventory of homes up by 16% in the singel family residence category. Condos & townhomes sales are virtually even but the inventory is up by 13%.

The market is increasingly strong for long-term investments, whether it's for your primary residence or a part of your financial portfolio.

Investors who purchase fix & flip properties must approach the market with caution. In the past, properties purchased at discounted prices and fixed could be resold for a tidy profit due to appreciation. In the current market, fix & flip properties need to be purchased at bargain basement prices and will most likely sell closer to current competitive pricing and linger on the market longer.

In terest rates continue to rise and the economic outlook for 2007 predicts that market conditions will be more balanced.

Let Me Help You Invest Wisely

As Your Buyer's Agent!

Lawn Tonic

There has been a lawn tonic recipe circulating for some time that reportedly keeps your lawn green while using less water in our drought conditions. This "home brew" uses beer, mouthwash and a few other unorthodox ingredients. There are many variations of this mixture, this one seems to work well in Colorado......

Lawn Tonic Recipe

1 can beer - do not use "light" beer

1 can soda - do not use "diet" soda

1/2 cup liquid soap - do not use antimicrobial soap

1/2 cup liquid ammonia

1/2 mouthwash

Put the ingredients in a 10 gallon hose sprayer and water your lawn with the mixture.

Results - green lawn using less water!

IDENTITY THEFT

Identity theft is a serious crime. It occurs when your personal information is stolen and used without your knowledge to commit fraud or other crimes. Identity theft can cost you time and money. It can destroy your credit and ruin your good name.

The NAR (National Association of Realtors) has teamed up with the FTC (Federal Trade Commission) to provide consumer information to help our real estate clients with the issues of identity theft. The program is called

"DETER - DETECT - DEFEND"

Follow the link and learn more about the program and how you can avoid theft!

BOLDER BOULDER

Bolder Boulder - Memorial Weekend Race

The Chamberlin's (all four family members; AJ, John, Alex, and Landrum) walked the Bolder Boulder in 1:28. As AJ reminds everyone, "with a little help from the shuttle" we finished the race walking with the kids! What a great event for the family!

What Makes One Home More Valuable Than Another?

Buying or selling a home can seem like an overwhelming task. But the right REALTOR can make the process easier - and more profitable. For many home buyers, understanding what makes one home more valuable than another seems a bit arbitrary. But the reality is that various features can add thousands of dollars to the value of a home. Some of these include:

• Square Footage: How big is the house?
• Design: Is it a colonial or a ranch?
• Floor Plan: How well do the rooms "flow"?
• Quality Of The Neighborhood: Is it a highly desirable locale?
• Quality Of The Public School System: Whether or not you have children who will attend the schools is irrelevant.
• Proximity to public transportation, religious centers, shopping, and schools
• Quality Of Construction: Was it built by a reputable builder?
• Lot size, view, and quality of landscaping
• How Busy Is the Street: Houses located on "double-yellow line" streets are less valuable than those on streets less traveled.

Working with the right REALTOR can help you understand why these factors are important and how best to gauge your home's true valve, perform a comparative market analysis (CMA) - an informal analysis of comparable homes in your neighborhood, and recommend a certified appraiser, who can calculate the value of your home at any given time.

Call for a no strings attached, no-hazzel CMA! Log on to www.chamberlinteam.com or http://ajchamberlin.com for more information on buying or selling your home.

Money-Saving Tips

Money-Saving Tips For Your Home

With the cost of energy at an all-time high, we can all save money on our engergy bills with relatively simple solutions! According to the Alliance to Save Energy, Department of Energy and Environmental Protection Agency, American consumers and businesses spend approximately $21 BILLION annually, on lighting alone, and could cut their costs in half with energy-efficient light bulbs and fixtures while improving the environment. Installing efficient lighting in our homes and businesses would reduce carbon dioxide emissions by 140 million tons each year! Isn't that amazing?

We found a website (sponsored by the EPA and the DOS) that shows how to save money on energy bills by incorporating their energy efficiency suggestions. It's http://hes.lbl.gov/. Let us know if you have tried any of their suggestions and how much money you saved.....

Trends

Trends in Bathroom and Kitchen Designs

In a quarterly Home Design Trend Survey, the American Institute of Architects (AIA) determined the latest trends in kitchen and bath features and products. Here are their findings:

Bathrooms

• Larger bathrooms and more of them
• Upscale showers, including multihead showers, steam showers, separate his-and-her showers and walk-in showers with no doors for better accessibility
• Double sinks or multiple vanities
• Heated floors, heated towel racks, towel-warming drawers and fireplaces
• Decreasing in popularity: heat lamps and whirlpool baths

Kitchens

• Larger kitchens and more of them throughout the home, including a separate food storage facility, food preparation area or outdoor kitchen
• More pantry space
• Upper-end appliances
• Integrated living areas near the kitchen such as a family room
• Natural stone countertops and natural wood cabinets
• Drinking water filtration systems

How does your kitchen or bath stand-up to these latest trends?

Be sure to choose your remodeling projects wisely - not all remodels will provide the return on investment when selling your home!

Internet Use Rises

Home-Buyer Reliance On Internet Rises

According to the National Association of REALTORS in a recent survey, nine out of ten buyers still use a real estate agent. The internet, however, plays a growing role in the home-search process:

% Buyers who use the net % Buyers who found their

to search for a home: home on the net:

2005 77 24

2004 74 15

1995 2 2

Visit our website to search for all properties in Boulder County! www.chamberlinteam.com

Boulder Valley School District

Congratulations Boulder Valley School District!

Did you know that in a recently released report that 2 Boulder High Schools ranked in the TOP 1,000 high schools in the nation?

# 233 Fairview High School
# 236 Boulder High School

Just one more magnificent reason to live in Boulder!

Outdoor Wood & Spring Cleaning

Each year around this time, it is a good idea to consider the care of outdoor wood around your home, whether it is decking, fencing, or siding. Here are some suggestions for the care and maintenance of outdoor wood.....

First, a word of caution: The wood you buy at any lumber store will not retain the color and texture you see right after it's installed. Water and sunlight, specifically UV or ultraviolet light, over time will change both the color and texture of wood. Water repellent preservatives and sealers can help maintain a consistent color, but they will not give the same color or tone you see in the lumber rack.

For longevity of your outdoor wood, apply a preservative to the wood. A clear preservative will most often darken and enrich the natural color. Choose a product with UV protection. Some preservatives also have color added with will stain the wood.

Decks require either annual or semi-annual maintenance, depending on exposure to weather and use. A maintenance program consists of cleaning the deck, removing any mildew that might have accumulated and applying a new coat of preservative.

The best way to clean a deck is with a pressure washer, although for smaller decks a stiff bristle brush and a lot of elbow grease will also work! In shaded, moist areas, mildew buildup can be a problem. To solve this, wash with a weak bleach solution - 1/4 cup of bleach to a gallon of water - to kill the fungus before pressure washing.

Once cleaning is completed, allow the deck to dry for a day or so. Then apply two coats of UV protective water repellent sealer or stain.

If this sounds like a lot of work - it is! The reward, of course, is a summer outdoors in pleasant surroundings and prolonging the life of your investment. It's well worth the effort!

Why Use A Realtor?

Some homeowners decide to sell their home by themselves to save the commission charged by a real estate agent. The commission rate may vary but it is usually around 6% of the selling price. Selling your home by yourself means you will be responsible for placing ads, answering phone call inquiries, and showing your home to strangers.

FACT: Home buyers who know you are trying to save money on the real estate commission will offer less for your home, wiping out the amount you saved on real estate fees. FSBO home sale transactions generally can sell for up to 20% less than if a Realtor was used to sell the same property!
FACT: In the last 10 years, there has been a decreasing trend in homeowner's successfully selling their homes - the process has become more complicated, time-consuming, and costly.


What A Realtor Can Do For You:

• Help you establish a fair market price for your home
• Create a marketing program to effectively promote your home through MLS listings, websites, direct mailings, real estate magazines and advertisements, e-mail postings to area Realtors, conduct open houses.....
• Schedule showings to prospective buyers
• Pre-screen buyers so only qualified buyers are shown through your home
• Help negotiate the sale of your home with the buyer
• Make recommendations for "staging" your home, making it more attractive to potential buyers
• Provide all of the necessary forms and documents for the sale of your home
• BE YOUR ADVOCATE throughout the sales and marketing transaction!

Home Appraisals

Home Appraisals and the Home Buyer

A home appraisal determines what a house is worth. This number is especially important when you're looking to purchase a particular house. Your lender will make a decision regarding the amount of your loan based on the appraisal value of the property. The appraiser not only takes into account the house in question, but similar homes sold in the area, as well as several other factors. The appraised value of a house can also help you with assessing taxes and estate planning when buying a home.

Due to the varying factors that go into an appraisal, there are cases when the appraised value of a house will differ, sometimes greatly with the asking price. When this occurs you may be suddenly held responsible for a greater down payment than origianally calculated. To protect yourself from this occurence, you should insist that the real estate contract includes a financing contingency. The contingency may include the opportunity to cancel the contract and get your earnest money refunded or state that the seller will reduce the price of the house to the appraised amount.

Working with a knowledge Real Estate Broker can make a huge difference when buying or selling your home and can help to protect your interests by using contingencies like this!

Call AJ or John Chamberlin, they can help you through the many details of buying or selling a home!

AJ: 303.588.8999 - or email - aj@chamberlinteam.com

John: 303.579.4455 - or email - john@chamberlinteam.com

Spring Maintenance Tips

Keeping your home in good working order means it will last longer, be more enjoyable - and worth more when you want to sell it!

Here are twelve suggested maintenance items which most homeowners should check annually:
1. Inspect your roof for leaks or other damage.
2. Repaint as needed.
3. Repair damaged grout and ceramic tile in bathrooms and kitchen areas.
4. Insure that all plumbing fixtures are working efficiently.
5. Caulk or weatherstrip around leaky windows and doors.
6. Keep your driveway in good condition.
7. Clean or replace furnance filters every 3 months.
8. Check batteries in smoke detectors.
9. Repair damaged decks or porches.
10. Prune trees and shrubs.
11. Look for damage from termites or other pests.
12. Maintain proper drainage away from your home's foundation.

Establishing a home maintenance schedule can keep you on top of these jobs. For instance, one month you can make sure your deck is sturdy, and the next month you'll look for roof leaks. However, be careful, when doing jobs you aren't used to - make sure to seek professional help, or even just another pair of hands, when needed.

Congressman Mark Udall Meet & Greet

Area REALTORS are invited to "Meet and Greet"

Congressman Mark Udall

April 17, 2006 from 11 a.m. to 12:30 p.m.

Back Country Brewery

Frisco, Colorado

It is beneficial for REALTORS to stay involved with their Congressional leaders. It is an opportunity to let them know what our concerns are and to develop a relationship with them. We have already captured the attention of Congressman Mark Udall, and he will be at the Back County Brewery to listen to your concerns and speak about issues in the real estate community. There is much to be concerned about these days. For example:

• The President's Advisory Panel on Federal Tax Reform recommends that the mortgage interest deduction maximum debt eligible for a tax credit would be limited to 125% of the median sales price for homes in their county. It would only be available on principal residences. The deduction would be eliminated for equity line mortgages! Any implementation of this reform may have a drastic negative affect on your income!
• NAR opposes legal rulings by the Office of the Comptroller of the Currency (OCC) to expand the ability of national banks to engage in real estate development and ownership and in merchant banking.
• 25% of REALTORS have no health insurance. Thus, NAR is pushing for association health plans.
• NAR supports increasing the current loan limits in high cost market areas to make available homeownership opportunities for first-time homeowners and minority homebuyers.

If real estate is your career then politics is your business!

The cost is free for the first 50 people to reserve, and includes a soup, salad & potato bar, with marinated chicken garnished with mango salsa. Let's show our Congressman we care and that we are a constituency that must be listenend to. Space is limited, so please RSVP as soon as possible.

To register, Call Sally Stoffel at (303) 415-3590, fax to (303) 449-8554, or email sally@chamberlinteam.com. Include: Name, Brokerage, Address, Phone # and email address.

This event is not a fundraiser, and contributions for Udall's re-election are not required for attendance. However, the Congressman will happily accept any voluntary contributions.

Organized by Colorado Association of Realtors; Federal Political Coordinator Members

Timing Your Decision To Sell

Because most sellers finance a new home purchase with the sale of their present home, they usually put their homes on the market before they begin their search for a new home. Learning the price you can expect from the sale of your present home often sets the pricing parameters for your new home search.
Obviously, it's not wise to wait until the sale of your property closes completely before beginning to look for your new home. Timing your search properly with the buyers' transaction can make the difference between having the available funds to buy a new home and cutting down on the interim period between homes.
In terms of supply and demand, historically the best months for home sale transactions have been March, April, May and June.
By beginning now, your home can be staged and ready for marketing during the prime selling months of 2006!
The Chamberlin Team can help you through the mirade of details to assure the best possible price for the sale of your home and help to make the sales transaction smooth and as effortless as possible.
Call or e-mail AJ or John for a free, no obligation CMA for your home. You'll be glad you did!
AJ: 303.588.8999
aj@chamberlinteam.com
John: 303.579.4455
john@chamberlinteam.com

Mortgage Rates on the Rise

Mortgage rates have climbed and are expected to climb at a slow rate over the next several months with the retirement of Alan Greenspan. If you are considering selling your current home and buying a new home, it is advisable to lock in your rate as soon as possible to assure the best possible interest rate on a new loan or refinancing an existing loan. Knowing your credit score and upgrading your credit history are also important aspects of obtaining the most favorable mortgage rates. The first step in the process is making sure that you have a current copy of your credit report. Congress recently amended the Fair Credit Reporting Act so that consumers may now receive one free credit report annually.
Go too ww.annualcreditreport.com to request your free copy for 2006.

Making Your Home More Saleable

The National Association of Realtors suggests that sellers spend as little as possible on pre-sale repairs and improvements. For example, while new tile might really spark up your kitchen, potential buyers probably won't increase their purchase offers enough to compensate your expense. Instead, focus on the small, relatively inexpensive touch-ups that will give your home a polished, well-maintained appearance. Before you put your home on the market, take an impartial look at your property, inside and out. You may have only one chance to pique potential buyers' interest when they view your home, so don't let easily correctable flaws stand in the way. The Chamberlin Team can assist you with "staging" your property to help make your house stand out to buyers and to enhance your home's salablility.

Boulder Real Estate Market Trends

Investing in real estate is being recognized as a more solid and lucrative investment each year by investment analyzers.
IN 2005

• Residential sales increased by 11.8%
• Attached dwellings increased by 4.3%
• And, income property increased by 8.3%

DAYS ON MARKET

• MLS-Wide was 108
• Chamberlin Team DOM listed properties was 66, which on the average, is 42 days less than the rest of the market!

DAYS TO OFFER

• MLS-Wide DTO was 87
• Chamberlin Team DTO was 49, nearly 50% quicker than the market!

DAYS TO SOLD

• MLS-Wide DTS was 134
• Chamberlin Team DTS was 83.5 on listed properties, 38% quicker than the rest of the market!

When you work with Aj and John Chamberlin, you benefit from two professionals who are both dedicated to your needs and both know what it takes to create excellent results!

Thinking of Selling Your Home?

You've probably already considered your personal reasons for selling your home. Now you need to take into account the other factors involved, such as market conditions, your property's value and tax implications.
There's a rule of thumb to keep in mind when deciding to sell your home: Your home is only worth what a qualified buyer is willing to pay at the time it's on the market.
The current real estate market fluctuates based on supply and demand, interest rates, general economic conditions, and demand, interest rates, and other factors. The same house may sell for more or less under a different economy.
The Chamberlin Team can inform you of the going price for homes in your area at the current time; this data is included in a comparative market analysis (CMA), prepared exclusively for the marketing of your home.
Like finding the right house, selecting a REALTOR you can trust and comfortably work with is paramount. When you work with AJ and John Chamberlin, you benefit from two professionals who are both dedicated to your needs and both know what it takes to create excellent results.

AJ Chamberlin
Broker Associate
ABR CRS FPC GRI

John Chamberlin
Broker Associate
ABR E-PRO CRS GRI

AJ and John Chamberlin

Welcome! We've started this blog in conjunction with updating our web site, http://www.chamberlinteam.com. We were looking for a way to easily post information for potential and returning clients to read and comment on. A blog was suggested because readers can make public comments or email us, and we can easily create posts.

We plan to provide readers with information of real estate, the arts, schools, restaurants, recreation, and social issues in Boulder and the surrounding communities. After living in the area for over 20 years, we've seen significant changes and trends in all of Boulder County. Being active in the communities where we work with clients to buy and sell real estate, we can provide you with a true insiders view of life here. We would love to hear your views or be able to answer questions you have about the area. We understand there are many considerations when buying a new home. We also know everyone is different. So, you may also see posts here by others to give you a different perspective.

Come back often to get to know both of us and get a feel for Boulder and surrounding area!

Two Unique Personalities, One Powerful Combination.