Filed under: Real Estate tidbits
It’s good to know that I’m in good company with my thinking! What Does Warren Buffet Think About Buying A Home?.
Filed under: Real Estate tidbits
1. Sometimes, I carry a clipboard. Sometimes, I dress like a lawn guy and carry a rake. I do my best to never, ever look like a crook.
2. The two things I hate most: loud dogs and nosy neighbors.
3. I’ll break a window to get in, even if it makes a little noise. If your neighbor hears one loud sound, he’ll stop what he’s doing and wait to hear it again… If he doesn’t hear it again, he’ll just go back to what he was doing. It’s human nature.
4. I’m not complaining, but why would you pay all that money for a fancy alarm system and leave your house without setting it?
5. I love looking in your windows. I’m looking for signs that you’re home, and for flat screen TVs or gaming systems I’d like. I’ll drive or walk through your neighborhood at night, before you close the blinds, just to pick my targets.
6. Avoid announcing your vacation on your Facebook page. It’s easier than you think to look up your address.
7. To you, leaving that window open just a crack during the day is a way to let in a little fresh air. To me, it’s an invitation.
8. If you don’t answer when I knock, I try the door. Occasionally, I hit the jackpot and walk right in.
Sources: Convicted burglars in North Carolina, Oregon, California, and Kentucky ; security consultant Chris McGoey, who runs http://www.crimedoctor.com/and Richard T. Wright, a criminology professor at the University of Missouri-St. Louis, who interviewed 105 burglars for his book Burglars on the Job
Protection for you and your home:
If you don’t have a gun, here’s a more humane way to wreck someone’s evil plans for you. (I guess I can get rid of the baseball bat.):
WASP SPRAY
A friend who is a receptionist in a church in a high risk area was concerned about someone coming into the office on Monday to rob them when they were counting the collection. She asked the local police department about using pepper spray and they recommended to her that she get a can of wasp spray instead.
The wasp spray, they told her, can shoot up to twenty feet away and is a lot more accurate, while with the pepper spray, they have to get too close to you and could overpower you. The wasp spray temporarily blinds an attacker until they get to the hospital for an antidote. She keeps a can on her desk in the office and it doesn’t attract attention from people like a can of pepper spray would. She also keeps one nearby at home for home protection… Thought this was interesting and might be of use.
Filed under: Real Estate tidbits
1. Of course I look familiar. I was here just last week cleaning your carpets, painting your shutters, or delivering your new refrigerator.
2. Hey, thanks for letting me use the bathroom when I was working in your yard last week. While I was in there, I unlatched the back window to make my return a little easier.
3. Love those flowers. That tells me you have taste… and taste means there are nice things inside. Those yard toys your kids leave out always make me wonder what type of gaming system they have.
4. Yes, I really do look for newspapers piled up on the driveway. And I might leave a pizza flyer in your front door to see how long it takes you to remove it..&nb sp;
5. If it snows while you’re out of town, get a neighbor to create car and foot tracks into the house. Virgin drifts in the driveway are a dead giveaway.
6. If decorative glass is part of your front entrance, don’t let your alarm company install the control pad where I can see if it’s set. That makes it too easy.
7. A good security company alarms the window over the sink. And the windows on the second floor, which often access the master bedroom – and your jewelry. It’s not a bad idea to put motion detectors up there too.
8. It’s raining, you’re fumbling with your umbrella, and you forget to lock your door – understandable. But understand this: I don’t take a day off because of bad weather.
9. I always knock first. If you answer, I’ll ask for directions somewhere or offer to clean your gutters. (Don’t take me up on it.)
1 0. Do you really think I won’t look in your sock drawer? I always check dresser drawers, the bedside table, and the medicine cabinet.
11. Here’s a helpful hint: I almost never go into kids’ rooms.
12. You’re right: I won’t have enough time to break into that safe where you keep your valuables. But if it’s not bolted down, I’ll take it with me.
13. A loud TV or radio can be a better deterrent than the best alarm system. If you’re reluctant to leave your TV on while you’re out of town, you can buy a $35 device that works on a timer and simulates the flickering glow of a real television. (Find it at http://www.faketv.com/)
Filed under: Real Estate tidbits | Tags: CDPE, Certified Distressed Property Expert, short sale
An ancient Chinese proverb says “may you live in interesting times” and these are certainly interesting times! The housing crisis has been the leading wave of the economic tsunami that has permeated every aspect of our lives. Foreclosures are rampant and a new term has been added to the real estate lexicon: Short Sale.
A short sale is a method of foreclosure avoidance that involves selling real estate for less than what is owed with the permission and cooperation of the lender.
Short sales are new in our thought process but not actually new to the system. In fact, I bought a beautiful home in a short sale nearly 20 years ago. It just wasn’t known as a ‘short sale’ at that time.
Historically the short sale process has been uncertain and lengthy. Banks have been reluctant to cooperate and have dragged their collective feet so buyers were never certain if their attempt to buy a short sale would be successful or not. That uncertain scenario isn’t very comforting for a buyer with timing considerations. With the recession much deeper than anyone had foreseen, banks are now beginning to cooperate in the short sale process with the understanding that they will recover more of their asset from a short sale than they would by letting the property go to foreclosure. It becomes a win-win for both borrower and lender.
From my perspective as a residential Realtor, dealing with short sales in an intelligent and efficient way became a business priority; and that’s why I’ve completed the Certified Distressed Property Expert (CDPE) class. I now carry this designation and have the tools to counsel potential clients who may be experiencing mortgage difficulties about the various methods of foreclosure avoidance. If they qualify for the short sale solution and it is the best choice for them, I have the tools to deal with the situation as efficiently as possible with respect to both borrower and lender.
What’s in store for us? Credit Suisse has published a graph of adjustable rate mortgage resets that shows that we are currently emerging from the worst of the ‘sub-prime’ mortgage resets. That’s good news! The bad news is that while the sub-prime resets have been difficult on our housing market, the Credit Suisse projections show a huge new wave of more exotic ARM loan adjustments in our near future. Based on the Credit Suisse graph, (see: http://www.robbpickard.com/cdpe.html) a new wave of resets is due near the end of 2009 and is anticipated to last through 2011. Significant mortgage default is anticipated from this round of resets.
The exotic Option-ARMS and Alt-A loan programs generally addressed higher price point properties and were reliant on anticipated real estate appreciation. These loans were fundamentally negative amortization loans so, rather than equity growing as principal is paid down, principal balances grew month to month and equity shrank; a formula for disaster. Couple that with how the indexes and rates can grow huge with the adjustments borrowers saddled with the exotic loans will be bailing out left and right.
If you (or someone you know) are experiencing difficulties with your mortgage payments or anticipate unmanageable increases in rates, DO NOT WAIT. Call your lender and begin a discussion about your loan. Secondly (and maybe more importantly) call me so that we can begin the process of determining the best course of action for your circumstances. Obviously I cannot speak for your lender or how they will respond to your phone call but I can go over all of your alternatives and position you in the best possible way with your lender. Short selling is not a get-out-of-your-mortgage-free process but is a viable method to avoid foreclosure and minimize damage to your credit history.
For more information visit www.robbpickard.com or www.cherrycreekshortsales.com.
Filed under: Market | Tags: decisions, Denver, HomeCard, Market, neighborhood, real estate
The most common question that a Realtor hears is “how’s the market”. The answer is much more complicated than I can fully explain here but I’m going to try.
The media is full of doom and gloom; and to a certain extent, it’s on the mark. However, the reality in Denver is not entirely negative.
Real estate convention uses inventory statistics as a fundmental gauge of how the market is doing. Active inventory (the number of properties actively for sale at a point in time) divided by the number of sold properties for a given month equals how many months it would take to “clear” the inventory. Six months of inventory is considered a balanced market. Fewer than six months inventory equates to a “sellers” market and greater than six months is a “buyers” market. Fundamental supply and demand at its finest.
According to Dave Liniger, Co-Founder of RE/MAX International in a recent seminar, the national average inventory currently sits at about 10.5 months. Some markets, such as southern California, are seeing as much as 17 months of inventory. There’s no question that it’s a buyers market nationwide.
Denver has also moved to a buyers market (as if you didn’t know) however the Denver market is much closer to balance with 6.5 to 8.5 months of inventory. Well below national averages.
Being an engineer by education, I tend to favor looking at the numbers to find out the facts, so I ran some stats for myself today to verify. The overall Denver market is running 7.6 months of inventory for all residential units (single family homes, townhomes and condos). When you dig into specific areas of the city you find these numbers ranging from mid-6 to mid- 8 months.
So, how’s the Market? The simple answer is it really depends on your neighborhood. Don’t rely on national statistics because they simply won’t apply to your home. Don’t even rely on city statistics. You must look at a neighborhood level.
The best way for you to get a good answer to the magic question, “how’s the market”, as it applies to your circumstances is to call your Realtor and ask about your specific neighborhood. This is what I do…helping my clients make decisions that are good for them by providing information that impacts their decision making ability.
To get a look at current activity in your own neighborhood visit my website, register for your own personal HomeCard and enter specific search criteria that identifies your neighborhood including the Sub Area name.
Filed under: Real Estate tidbits | Tags: cherry creek, credit scores, Denver, FICO, real estate
Until recently, the secrets of credit score calculation have been very closely guarded. It is now possible to estimate how your score is put together.
Payment History = 35%
· Do you pay your credit on time?
· Length of positive credit history
· Severity & quantity of delinquencies
Amount Owed = 30%
· Quantity of credit Accounts-too many credit cards with balances can lower a score.
Length of Credit History = 15%
· The longer the history, the better.
· How long have your credit accounts been established?
· How long has it been since you used certain accounts?
New Credit = 10%
· Research shows that opening several credit accounts in a short period of time does represent risk – especially for people who do not have a long established credit history.
Types of Credit in Use (Healthy mix) = 10%
· 2 installment loans
· 3 revolving accounts with balances
· Balances on revolving debt below 30% of the credit limit (*see below)
· No collection accounts
· No public records
· No foreclosures
· No late payments
* Keep your individual card balance at or below 30% of their max limit. (eg: If you have 3 credit cards each with a $10,000 limit and 2 have small balances while the third has $9,000; redistribute the balances so that each of the three cards has $3,000. Credit scoring practices prefer distributed balances rather than all debt concentrated on one card.
If you wish to get more information about Credit Scoring, please visit my web site or give me a call at 303.331.4542.
