Mid January blog/rant/etc. 

We are going to go over some strange mortgage information that should give you a bit of an advantage. 

Let’s start out with some good news on the lending front.    Did you know that in the past if you wanted to buy a home which was a really good deal, say 10% to 30% below market value and do a bit of work on it and then sell it for a bit of a profit, you were limited to whom you could sell it to…  Wait a minute the last time I looked this was America the land of free enterprise, make a profit if you can and basically do business.   Well our government was watching out for  everyone.  They felt that if a buyer was getting an FHA loan (Gov. backed) the buyer should not help make the seller make too much money.  This was just amazing.   The seller after making the initial purchase had to wait 90 days to sell to a buyer with a gov. backed loan.   Well the good news is, that restriction has been dropped, unless the new purchase price is more that 20% more than the original cost, then the lender will have really look closely at the loan.  Please note that if you upgraded or repaired the home that can be added to the original cost too.  But, but it just seems wrong that the gov. can restrict the amount of money you can make.   

Bad news…Does everyone know who and what a loan underwriter is??  This person holds more power than the President.  They are the individuals that go over loan applications with a fine and I mean fine tooth comb to source out anything that could possible cause a loan to go bad.  Now I realize they have been charged with an awesome responsibility by the investor and that is ok.  The bad news is that now they are really, really looking at everything and causing many loans to be denied.  If only they would have done that a couple of years ago.  More knee jerk reactions.  What this means is that to get a home loan you probably better be squeaky clean. 

We are seeing an uptick in buyers; I think there is a huge pent up demand for Real Estate.   From an early age it was beat into our brains that owning property was the way to go.  We strived to reach a point where we could own land or a home.  Americans (I think) still have this passion for owning Real Estate and now they see these huge bargains on REO property and it fuels the passion even more.   Well that’s ok, owning property is still a good thing.  Remember if we don’t own it someone else will and then we will be at their mercy.  Not good!  

So what to do??  Well mortgage rates are still good and if you can get a loan, do it now.  If you are having problems getting a loan, ask for owner carry, you may have to pay a bit more, but you can reach your goal.  Buy smart, look at price per square foot, look at location, and negotiate.  Buyers don’t hesitate to make an offer; you never know what will happen.  Sellers, remember this is just business don’t get offended with a low offer, counter back, keep the ball rolling and you may get your property sold. By the way this negotiation program work a bunch better when you have a Realtor do it for you.  Buyers and sellers can let emotions get in the way and possibly blow a deal.    Negotiation is the most important part of our service to you the buyer and seller.  

I try to keep this to one page, but mortgage information is important and I think we will be seeing more changes as time goes on, both good and bad. 

Thank you for your time. 

Sincerely,Scott ScarboroughOwner/BrokerMontrose-realestate.comIf you do not want to receive these e-mails, please let me know.scott@montrose-realestate.com 

New Year Update 

Hopefully everyone had a great holiday season, Christmas, New Years, very busy and fun time.  Much news from the holidays and this week, both political and scary stuff.  Flying is going to get tougher and tougher and that is probably the plan of our enemies, but that is another story. 

Many responses from my little survey on the economy, it seems that confidence is not too high that home prices will stabilize and start going up.  Well it is too early in the year to call the game, so we will keep an eye on this.  

News that you can use… Never pass up the chance to visit with people, especially mortgage folks.  New and exciting programs coming out every day and some old stuff that still works.Sellers, did you know that you can contribute up to 6% of the purchase price to the buyer?  3% on conventional and 6% on FHA loan.  A good move vs. lowering the price.  Buyers, keep this in mind when negotiating.  You can use this money for a number of things, such as an interest rate buy down.Mortgage wraps could be coming back in style. In the late 80’s this was a popular way to get into a home.  Many things you need to know before getting into this boat, so talk to someone, Realtor, mortgage banker or attorney.  Another option in these crazy times.Josh Applegate with Primelending  went over these options when he stopped by.  Again, take time to visit with folks. 

January Realty Times news letter link below.  Hope you take some time and look over it.http://realtytimes.com/134/ScottScarborough 

The whole deal with this blog and the newsletter is to help keep you the buyer or seller informed on what is going on and some ideas on how to get a home sold or buy one.  If you have any personal experience that worked out well and want to share it, let me know and I will post it. 

Oh yes, buy of the week, can’t forget this.  Looking to build in the country?  Look no further. A 1.3 ac lot on Spring Creek Mesa.  We searched the MLS  prior to pricing, both sold comparables and what is on the market.  Average sold price in the last 12 months was around $77k.  Currently the lowest priced lot on Spring Creek Mesa is $69,900.  Our price $64,900.  We are way below sold average and below anything else.  This is a great lot in a great subdivision. This is not in foreclosure or a short sale, just a good deal and a sign that it is a good time to buy.  

Sincerely,Scott ScarboroughOwner/BrokerMontrose-realestate.comIf you do not want to receive these e-mails, please let me know.scott@montrose-realestate.com 

First day of winter.We need a good cold winter to set the fruit trees and kill off the bugs and keep people from looking at homes.  It used to be that in the winter sales (in this area) did slow down, in the past boom times it was busy even in the coldest time.  Sales statistics show a modest increase in sales in November.  Remember you can look at my web site and see the sold stats.  This will help you as a seller to know what you are up against and as a buyer you can see that it is a good time to buy. 

What will the New Year bring in Real Estate?  As a Realtor I get this question a bunch.  I look at the person, put on my best smile and say “I don’t know”.  Not to informative.  Well I don’t know.  It seems to change from day to day. What you hear out of Washington and the banks seems optimistic; however the street news is a bit more realistic and dire.  If you have been trying to sell your home for the last 8 months with no offers and the creditors are at the door, I don’t think you are too optimistic. 

Perhaps as readers and people who are interested in Real Estate have a better feel for the market, or would at least like to prove to yourself that you are smarter than the rest. So here how this works, send me your 2010 Real Estate forecast.  Categories (to keep it simple) are;Housing market will stay the same.Housing market will improve at least 10%Housing market will continue to decline ( more foreclosures, prices will decline) 

Try to get me your forecast via e-mail scott@montrose-realestate.com by the end of Dec. and I will post the percentages for the three categories.  By midyear 2010 we should have a good idea where we are going.  You will know if you were right and I will know who I should contact for more good advice. 

A couple of marketing items.  We have a really nice custom, professionally decorated vacation rental here in Montrose.  If you are looking at skiing in this area and would like a 2500 S.F. home with 3 beds and 3 baths let me know.  We can save you a bunch of money over resort lodging.  We also can arrange shuttle service to Telluride from here.  If you are a qualified buyer coming out to look at homes we will give you a substantial discount on the rental while you are in town.  

We also have some very nice rentals, starting at $950 going up to $2500.00 per month. 

Ok enough business; take some time to enjoy the Christmas and New Year’s Holidays.  Back on board in Jan. 

Sincerely,Scott ScarboroughOwner/BrokerMontrose-realestate.comIf you do not want to receive these e-mails, please let me know.