Colorado Springs Real Estate Blog

Black Forest Housing Prices

November 26th, 2007 8:15 PM

The big question these days seems to “What’s happening with housing prices in my area”? Well at least in the Black Forest, that doesn’t seem to be a very easy question to answer. The year to date numbers are fairly erratic and don’t seem to show any real trend, as the accompanying graph shows.

I thought this looked kind of strange given what we are seeing in the market today…So, I took a look at the number of new listing that hit the market as well as the number that sold. Additionally, I kept a running tally of what was left over, let’s call this inventory. This as I found out is where the real pain is in the market, at least in Black Forest. The most disturbing graphic is the steep red line the show the accumulating inventory.See Graph

Here’s the Good News: It’s a great time to be a buyer primarily because there is so much inventory. If you have to sell, it’s not a great time but if you price your home well and work with an aggressive marketing team you can sell. Some pundits think prices will continue to slide so at the end of the cycle, this could end up being a good time to sell.

Posted by Matthew Haynes on November 26th, 2007 8:15 PMPost a Comment (0)

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Colorado Springs Real Estate-Strategies For Home Buyers

November 11th, 2007 9:32 PM

Most of the news about housing these days is bad news. Countrywide Financial, the nations largest originator of home mortgages has reported it’s first quarterly loss in 25 years. Additionally, the Wall Street Journal says, home buyers have been sidelined due to better lender oversight and tightening of credit in the lending industry.

In the Colorado Springs Real Estate market we are feeling the effects of the changes in the lending industry in conjunction with a softening economy as well as a large number of foreclosures in certain areas and price ranges.

Although many buyers and investors have decided to sit on the bench and watch. We think this is a great time to be in the market as a buyer.

Buyer Strategies:

Bank Well-In this kind of market it’s important to remember that cash is king. As far as Realtors and home sellers are concerned a pre-approval from a “reputable” lender is almost as good as cash. The best thing a buyer can do in this market is to get their finances in order before ever looking at a property. Meet with a lender, look at options, find out how much cash you will need and figure out where it will come from. If there are credit issues better to find out now, not later. Additionally, if credit is an issue a good lender can help you figure out what you can do to improve your credit score.

Work with a Realtor-There’s an old saying in Real Estate, “You make your money when you buy, you don’t get it until you sell”. Unless you absolutely know what’s going on in the area you are considering buying in and are comfortable with the ins and outs of a real estate transaction, use a Realtor.

Cherry Pick-This market creates some great opportunities for home buyers. Don’t choose a home based on the margin you think you can “get it for”. Choose the home you want to buy based on a serious list of wants and needs, this is a home not a stock. The best houses are still selling fast in most areas, they are just selling for less then they would have a year ago.

Do your homework- Research pricing and sales history for the area you are considering. Your Realtor can give you a list of comps (comparable properties) and should provide a CMA.

Establish a logical offer- Base your offer on real data and don’t be afraid to share that data with the seller. Compelling reasoning will usuallyget a seller to come to the table and negotiate. Random “Low Ball” offers on the other hand, generally garner angry rejections and close off the possibility of negotiating a deal.

Get a Home Inspection- Always a good idea to get a professional home inspection. Make sure you use an ASHI certified home inspector. Don’t drop the ball at this point, just because you got a good deal doesn’t mean you shouldn’t do an inspection. You can expect to pay between $150 and $400 depending on the square footage of the home. You really need to know if there are problems with the home so that you can negotiate those through the inspection contingency in your contract.

This is a great time to buy. Why would you wait until the market picks back up? At that point there will be more competition in the marketplace. If you want to or have to move and have good credit, there are a lot of opportunities out there. If you would like to talk about buying feel free to give us a call 719-471-2300 or send an e-mail, we would be happy to help. If on the other hand, you have a home to sell, I will be writing about that next time so check back. For more information on Buying or Selling visit www.MatthewHaynesTeam.com

Posted by Matthew Haynes on November 11th, 2007 9:32 PMPost a Comment (0)

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10 Tips For Colorado Springs Home Sellers

November 11th, 2007 9:26 PM

Effective home selling these days requires the right attitude. The most effective sellers take the stance “We are no longer home owners, we are home sellers”. This attitude goes a long way in preparing the seller for what’s ahead. The following is a list of ten other things to keep in mind when getting ready to sell your home.

1. Realistic Pricing- September of 2007 saw 6,767 homes for sale in the Pikes Peak MLS. That’s compared to 5,929 in 2006. There are just a lot more homes to choose from. Buyers may look at 40 to 50 homes before they get to yours. By the time a buyer sees your home they have a pretty good sense of what the price should be and if they don’t their agent does. This is why pricing is so important, with so much inventory on the market the ones that are selling fast are the ones that are well priced. I’m not talking about bargain basement Crazy Eddie type pricing but thoughtful, realistic pricing that puts your home where it should be in the context of the marketplace.

2. Staged Well- There are home sellers and builders hiring professional home stagers. These are professionals that come in and visually prepare the home for market. In most cases the stager will bring in accent pieces and make minor adjustments to the home like re arranging furniture and lighting. In some extreme cases the stager will go as far as painting and bringing in different furniture. I describe this process because in many cases this could be what your competition is doing. Compare this with the seller that takes the attitude of “Hey, it was good enough for us, if the buyer doesn’t like it they can change it after they close”.

3. Exposure, Exposure, Exposure- These might be the three new most important words, at least in residential real estate. Cutting through the clutter in the marketplace has become the biggest challenge in marketing residential real estate today. Statistics tell us that most homebuyers, nearly 80% look to the Internet early in the process yet more money is spent on off line or print advertising then on line. When you ask a Realtor why, they almost always say the same thing “Sellers are demanding it”. Don’t pressure your Realtor advertise in the newspaper, spend the money online.

4. Make it easy to show- You’ve priced your home correctly, worked hard to get it staged, your Realtor has gotten you the right type of exposure and the buyers are ready to take a look. Don’t blow the opportunity by turning down the showing. Some local realtors estimate they spend close to $1,000 to get a potential buyer to walk through the door. In a market like this, showings can be rare don’t lose the opportunity.

5. Go Away!- Being present during showings is just a bad idea. Let the buyers’ agent do their job. In many cases, the buyers will have spent several days with this agent. They have probably developed trust and a working relationship. Let the agent sell your home. No matter how good your intentions are, in the buyers eyes you are still the seller. Occasionally, a buyer will have questions they want answered directly by the seller. This can be taken care during a second showing. Additionally, we want honest feedback from the buyers and their agent. If you are the center of attention, you are what they will remember not your home.

Be aware that at the very least, buyers feel uncomfortable when the sellers are present and it can actually kill a sale. Often buyers won’t even open closet or cabinet doors when the seller is present. If homebuyers cannot view the house comfortably, they’ll hurry up and move on to the next one.

6. Stand Out- Every home has those special features that make it unique. Often these features aren’t apparent, especially to the eye. Place signs or cards in your home in order to attract attention to those items or at least make sure your fliers tout the things that make your home unique. You never know what is going to stick in a buyers mind…it could be a hidden feature.

7. Listen to feedback- After showings have occurred, your agent should contact the Buyers Agent for feedback. You want to get a brutally honest assessment of what the buyers thought. If there is a problem, you want to know as soon as possible. As Winston Churchill said “Things do not get better by being left alone”.

8. Incorporate what you know- You know why you lived in your neighborhood. Incorporate area amenities into your marketing materials. People want to know how far it will be to the Supermarket, Hospital, Library, Starbucks, etc…

9. Use Video- Virtual tours were a big deal, three years ago. Now it’s video, there are a ton of distribution channels and buyers will soon expect like they expect multiple pictures, on yeah, make sure you have multiple pictures on the web and in the MLS.

If all of this seems like al lot, it is. That’s why 1st Capital Realty can be your best bet at successfully selling your home. If you are selling a home in the Pike’s Peak Region and would like this list of services in your corner visit www.MatthewHaynesTeam.com and learn more about our Seller Marketing services.

Posted by Matthew Haynes on November 11th, 2007 9:26 PMPost a Comment (0)

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HELP! ! ! ! My house WON'T sell!

November 11th, 2007 9:06 PM

6 reasons your home isn't selling

So, you're in agony because your home has languished on the market week after week. Here are some culprits that may be keeping buyers away in droves.

Has your lawn grown up around that "For Sale" sign? Have the wasps moved into the lock box on your front door? Did you just receive an invitation to your real estate agent's retirement party?

If so, chances are your home sale fizzled.

Here are the six most-common reasons why homes don't sell and what you can do about it.

Your home is overpriced

Optimistic home sellers love to parrot the old adage, "There's a buyer for every home." But they often leave off the qualifier: "at the buyer's price."

The fact is that buyers, not sellers, ultimately determine the market value of a home. You can ask for the moon and set your listing price well above comparable properties in your neighborhood, but at some point it will be up to you, the seller, to accept what the buyer thinks your home is worth.

Overpricing is the most common reason homes don't sell. When you ask an unrealistic price, it sets in motion a process that often works against you. Here's why:

Most real estate agents, and hence most qualified buyers, will see your new listing within 30 days. If it is overpriced by as little as 5%, it will be duly noted and interest in your property will wane, especially if you show no intention of coming off your asking price. You likely already priced out buyers who might have qualified for financing at a more reasonable price. Even if you manage to find a buyer at your inflated asking price, the property may not appraise at that figure and the financing will fall apart.

Your real estate agent may have approved or even suggested the inflated asking price to secure your listing. Conversely, other agents often use overpriced properties like yours to help sell their own listings. ("Here's what they are asking. Now would you like to take a second look at that first house I showed you?")

"If you have a house that really should be priced at $200,000 and you've got it listed at $260,000, you are trying to compete against homes that really are worth close to $300,000 and all of a sudden your home really is not competing well, You want to compete with what is available out there among homes similar to yours."

If your home remains on the market for too long, agents and buyers may begin to wonder if there are other, perhaps more serious reasons why it isn't selling.

"It becomes shopworn, the same as a jacket hanging in the store week after week, people are aware that it has been on the market a long time and agents stop showing it."

Your home doesn't 'show' well

Your home is competing against shiny new houses in those pristine subdivisions out in the suburbs with their attractive prices, incentives and community amenities.

Face it: Even the best old house needs a little makeover if it hopes to attract a qualified buyer.

The good news is most of the work will be cosmetic and relatively inexpensive: a new coat of paint, a few attractive window boxes, a thorough cleaning of floors and carpets. Voila! The place may look good enough to reconsider.

1st Capital Realty can advise you on where your time and money are best spent.

"Price and condition are two things that the seller can do something about, I always give people my 'honey-do' list. I think paint is probably a seller's best friend because it makes things smell fresh and look fresh. If it's time to paint, it's time to paint. It's the best return on investment."

You're in a bad location

Nothing has a greater effect on your home's value than its location. Your humble abode might be worth a king's ransom were it located in Palm Beach, Aspen or San Francisco. It might even jump thousands in value just two streets over in the next (and far superior) school district.

"If you're in one of the higher-ranked schools around, you're going to add to the price of the same house."

The point is, location rules in real estate.

If your home's location is less than desirable, your options are somewhat limited. A good real estate agent will do his best to help you accentuate the positive and eliminate the negative of your circumstances.

The best way to compensate for a poor location is to reduce your asking price or offer attractive incentives such as seller financing or a lease option with rent credit.

You have a lousy listing agent

Yep, they exist: Real estate agents who mislead, misfire and misbehave.

Their bad advice can cost you plenty in time, money and the sheer hassle of keeping the place show-ready 24/7.

The agent from hell will allow you to overprice your home ("Here's what I can get for you if you list with me!"), not market it properly, fail to screen for qualified buyers, be unresponsive to interest from other agents and keep you totally in the dark throughout the process.

What's more, if your agent is abrasive, arrogant or otherwise difficult to work with, other agents may not want the hassle of showing any of their listings to prospective buyers.

You are battling competition or market conditions

We've all heard the terms "buyer's market" and "seller's market." In real estate, market conditions are affected by any number of external forces, some of them predictable (the weather, sort of), some of them unpredictable (the local economy, interest rates, public optimism or pessimism).

In a "hot" or seller's market, homes go fast. Inventory (homes on the market) may be low, meaning less competition for you. Chances are better that you will get your asking price in a hot market; in fact, it is not uncommon to even be offered more than your listing price.

But in a "flat," "cold" or buyer's market, sales slow to a trickle, inventories grow and buyers can find bargains, especially when they know the seller is motivated (i.e., paying on two mortgages).

If you're trying to sell in a flat market, you're not only competing against all that vacant new construction, but against rentals as well. In this case, be prepared to settle for less than top dollar, or wait to sell until the pendulum swings once again in your favor.

You have ineffective marketing

Gone are the days when an agent could simply place your listing with the local multiple listing service, hold a halfhearted open house and wait for another agent to bring forth a buyer.

Today's top performers launch a multilevel marketing plan that includes listing tours for area agents, newspaper and even TV ads, weekend open houses, listing fliers and placements in local real estate publications.

Computers and the Internet also have changed the face of real estate. According to the National Association of Realtors, today more than one-third of all home buyers use the Internet for house hunting. The best real estate agents are computer-savvy. They have your listing in color on their laptops to show clients and communicate frequently via e-mail, a particular boon when working with out-of-town buyers.

Suffice it to say that if your real estate agent isn't listing your home online through the company Web site as well as with the local MLS, you may not be getting the exposure necessary to find a buyer.

"There are those who just put the listing in the multiple and pray it will sell and those that put a lot of effort into marketing their listings," says Fisher. "Unfortunately, with this weird system of compensation we have, they all get paid the same, whether they know nothing or have many years of experience."

The 1st Capital Realty Difference

When you are ready to sell your home with a real estate team that believes in honesty, truth and integrity, give us a call. Our team of professionals will give you the unbeatable service. We have 4 team members that all focus on a specific area of expertise to give your house the albsolute best opportunity to sell in todays market. If you are serious about selling and ready for the team to get it done, we will be here for you.

Posted by Matthew Haynes on November 11th, 2007 9:06 PMPost a Comment (0)

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Northgate of Colorado Springs-Real Estate Market Report

October 30th, 2007 12:27 PM

October is over and not soon enough, clearly not a great month for the Colorado Springs Real Estate market. Although it would be really easy to stand back and be cynical about the current market conditions we feel like our clients are better served if we try to clearly examine the facts, look at the numbers, decipher the evidence and try to develop a sense of where the market is really heading as opposed to where it is.

Having said that, let’s take a look at where the market is, as of the end of September, at least in the Northgate of Colorado Springs

There were 19 new listings that came onto the market in the Northgate area of Colorado Springs, their average List Price was $417,968

There were 7 Homes in the Northgate area of Colorado Springs, CO that went Under Contract in the moth of September. Of those homes the Average List price was $405,128

In the month of October 8 Homes sold in the Northgate area of Colorado Springs, Colorado and their Average Sales Prices were $412,986

It is important to note that there is a $4,982 delta between the average price of a newly listed home in Northgate and the average price of a home in the same Colorado Springs real estate market area that sold in the month of October. This is a fairly conservative margin, we attribute this to the reluctance of builders to negotiate their sales prices.

Of those homes that sold in the Northgate area during the month of October their average number of days on the market was 110

Months supply of available homes for sale in Northgate has dropped from 10.17 months of inventory in August to 8.45 in October.

On The Upside:
When we take a look at the Northgate area of Colorado Springs the numbers are not that impressive…Fortunately, those numbers do not tell the complete story. Even though there is not a lot of residential activity in this area, there is a lot of commercial activity.

The Tri-Lakes area just to the north, first experienced significant residential growth followed by commercial development. Conversely, Northgate has seen limited residential growth but is experiencing significant commercial growth and development.

Our opinion is that this commercial infrastructure in this area will drive the residential development over the next couple of years. Exciting new projects like, Colorado Crossing, a mixed-use project featuring a 12-theatre complex, Interquest Market Place will feature a Brunswick Zone, Hollywood Theatres and Renaissance Hotel and Conference Center. Additionally, The Club at Flying Horse is completed and can only be described as truly impressive.

Keeping all of this in mind our opinion is that we can’t help but think Northgate is poised for significant residential growth. Additionally, this area features primarily builder product with a small percentage of resale homes. These builders have done a great job of predicting the current market situation in advance and stopped their speculative builds. From a supply and demand standpoint we look for builder sales and price increases in the 2nd. & 3rd. quarters of 2008.

On The Downside:
The Colorado winters are always a roll of the dice. If we do have a cold winter and the progress of the mixed-use commercial projects is slowed, the market recovery could be delayed into the next buying season.

Some Advice For:
Home Buyers: If you are in the market for a home and you have decent credit as well as money for a down payment….We think the time to buy is now, or at least within the next four months! There are some great opportunities in this area for buyers. If you are planning on waiting until the spring to buy you should also plan on having more competition we also think sellers less likely to make concessions. We think/hope the press is so bad and the market perception right now that it can’t get a lot worse. We are advising our investor clients to buy now, most savvy buyers in this market are thinking like investors.

Home Sellers: If you can wait until the first quarter of 2008 to sell, do it, we think the market should heat up by then. If you need to sell now, don’t mess around, list with someone that does a good job of pricing and marketing your home, someone that can and will get you exposure on both the Internet and to other Realtors. The chances are good that the person that ultimately buys your home will see it on the Internet first, chances are also good there will be another Realtor involved. At 1st Capital Realty, Inc. we think we do an exceptional job of getting our listings exposed to both homebuyers and Realtors. If you are considering selling your home now or in the future, you owe it to yourself to visit with us and review a personalized marketing plan created for your home.

In conclusion, we think this is a great time to buy. If you have to sell, please make sure you work with a pro, you’ll be glad you did.

Posted by Matthew Haynes on October 30th, 2007 12:27 PMPost a Comment (0)

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THE FUTURE IS LOOKING BRIGHTER

October 30th, 2007 12:17 PM

Well, we all have seen the news. The media continues to spread Gloom & Doom. But what are the real facts about the current Foreclosure Situation. Here are some recent stats that we think you will find interesting!

* 97.4% of all mortgages in the US are current. That means that 2.6% are either late or in foreclosure. It is estimated that .6 are late and 2.0 are in foreclosure.

* 75% of all foreclosures occur in 5 states

* Florida – heavy investment market
Michigan – automobile industry effects
California – impacted by soaring values in recent years
Nevada – heavy ARM market
Arizona – heavy ARM market

* The remaining 25% of foreclosures are spread over 45 states.

* In Colorado – there currently are 10,000 foreclosures, but many are multiple properties owned by the same person – so there are not 10,000 PEOPLE in default. The cities where there are the most foreclosures in Colorado are Denver and Pueblo.

Posted by Matthew Haynes on October 30th, 2007 12:17 PMPost a Comment (0)

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