Cherise Selley

Colorado Springs Realtors as well as other real estate agents across the country have waited anxiously about whether the first-time homebuyer tax credit would be extended from November 30th until sometime next year.

Well…it looks like the extended homebuyer tax credit bill has passed both chambers of Congress and is expected to be signed into law on November 6, 2009.

Some details of the new bill includes the fact that the tax credit for first-time home buyers ($8,000 for married couples and $4,000 for those filing separately) would extend to contracts entered into by April 30, and thus closed by July 1, 2010. It is expected that income limits on those who are buying real estate would be increased to $125,000 for single individuals and $225,000 for married couples. This proposal covers a broader price range than previously seen with the 2009 tax credit limits of $75,000 for singles and $150,000 for couples.

The Colorado Springs Realtor can expect some boost from some of the other provisions with this particular tax credit extension. The bill offers some incentives for current homeowners who want to sell their homes in which they have consecutively kept as their primary residence for five of the last eight years. These individuals would receive a new credit of up to $6,500 for married couples and $3,200 for those filing separately.

I anticipate that this tax credit for the existing homeowners might bridge some of the gap seen with negative equity factors for those who want to list their Colorado Springs Real Estate properties with Colorado Springs Realtors of their choice.

From this past election of November 3^rd, the El Paso County voters made a definite statement by saying “NO” against raising property taxes.

Measure 2C would have increased property taxes to counterbalance budget shortages of nearly $30 million dollars for 2010.

While I’m a proponent of investing into parks and recreation, transit, as well as other city programs, from the perspective of a Colorado Springs Realtor, I do not believe it is reasonable to raise Colorado Springs Real Estate taxes on both residential and commercial properties to make these programs operate because of a budget deficit. And apparently, many voters feel similarly to me.

To raise property taxes would inevitable bog down the Colorado Springs Real Estate markets, especially the commercial market. Now isn’t the time to weigh down this segment of the market while national efforts are trying to stimulate the overall real estate economy.

Measure 2C was jam-packed with too many needs that would be placed on the property owner. Perhaps trimming the programs to fit a tighter budget might have been a better proposal? Or perhaps the suggestion of an increased sales tax?

From my experience, many Colorado Springs Realtors saw the disadvantages of 2C and are relieved at the recent election results.

It’s well documented that lead poisoning might cause several health illnesses, such as brain and nervous system disorders, as well as other circulatory irregularities like hypertension, especially for children six years old and under.

Colorado Springs Realtors are well-informed about these health risks, both educationally and empirically, as observed within the language of Colorado Springs Real Estate contracts.

Yet again, we’re witnessing front row seats to what appears as nationalization of all of our free enterprise markets in the United States, including the real estate industry.

Consumers and Colorado Springs Realtors already know that the federal government banned lead-based paint from housing in 1978 for the purposes to eliminate childhood lead poisoning and to strengthen lead poisoning preventions. This was a good thing. And to recognize these efforts practically and legally, lead-based paint disclosures are included as part of the Colorado Springs Real Estate contract.

But now, I wonder about the new EPA proposals and how these regulations might actually add to safety and prevention versus governmental control over the industry.

The EPA has announced that it will propose to modify the regulatory hazard standard for lead in dust so the information can be based on the most recent science. From what I’ve gathered, this means that pre-built 1978 homes will be subject to EPA testing for lead-based paint. In fact the EPA plans to work with the US Department of Housing and Urban Development regarding some proposals to modify the regulatory definition of lead-based paint. The standards for EPA testing remain speculative, yet the potential liability for having any dust evidence of lead-based paint on homes that are built prior to 1978 is potentially outrageous.

How does this affect the national real estate industry? It will re-define and literally re-shape the renovation business for investors, as well as contractors/subcontractors who work on renovations of older homes. We can’t overlook the possibility that the incentive to make the renovation business a viable vocation may become jeopardized. The concern is that the financial risks for the investor or contractor are unrealistically hazardous to his or her organization.

Let me reiterate this point. As a Colorado Springs Realtor, I openly support good and intelligent proposals regarding Colorado Springs Real Estate, especially if these provide benefit to both the environment and to the human condition. However, I’m leery about any proposals that simply encumber free enterprise business for unnecessary, bogged-down regulation.

Regardless of my viewpoint, it sounds like the EPA will comment on its proposal during late November, and it is expected to be finalized sometime by April 2010.

Although Colorado Springs populates around 600,000, including the outer ridges of El Paso County, this city truly has the “small town feeling” happening. And downtown Colorado Springs aptly fits this ambience perfectly. It seems like you’ll defy the realities of “six” here. Instead of being connected with someone anonymously through six different layers of networks, it seems like the number is far less for those who reside in Colorado Springs. Before long, you’ll run into someone who inadvertently knows someone else who just happens to know who you are.

This sense of “knowing” each other is typified in the downtown portion of Colorado Springs, whether perusing the shops, doing business or getting something to eat.

Depending on a sales tax-sharing agreement with the city, it looks as if the downtown might be getting somewhat of a facelift. According to an article authored by Becky Hurley of The Colorado Springs Business Journal, co-owners Perry Sanders and Raphael Sassower are planning to renovate the Mining Exchange Building, the Freedom Telegraph, Independence and Municipal Utilities buildings into a 150-room “boutique” hotel and conference center. If the sales tax-sharing agreement gets approved through City Council, this proposal might possibly employ 400 people, as well as bring additional tax revenue into Colorado Springs.

This addition would be great for the downtown Colorado Springs Real Estate property values. Regarding the US commercial office markets, the national vacancy rate for the third quarter of this year ended above 17%. While national corrections are still occurring, I, an Elite 25 Colorado Springs Realtor, think the addition of the downtown Colorado Springs Mining Exchange project would bring some added inspiration during these economic uncertainties.

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Presently, the US Senate negotiators might have reached a tentative agreement regarding an extension of the current tax credit for first-time home buyers. The deal would extend the existing tax credit of $8,000 for first-time home buyers as Colorado Springs Realtors have witnessed this measure over the past year regarding the sales of Colorado Springs Real Estate.

This particular program had a bolstering impact upon the Colorado Springs Real Estate market, especially relative to home sales under the $275,000 price range. As a result, slightly inflated listing inventory has dropped under 5,000 property listings, as recently observed.

Pertinent to the details of the newly tentative deal includes the fact that the $8,000 tax credit for first-time home buyers would extend to contracts entered into by April 30, and thus closed by July 1, 2010. It is expected that income limits on those who are buying real estate would be increased to $125,000 for single individuals and $250,000 for couples. This proposal covers a broader price range than previously seen with the 2009 tax credit limits of $75,000 for singles and $150,000 for couples.

The Colorado Springs Realtor can expect some boost from some of the other provisions with this tentative deal of the tax credit extension. The bill offers a new credit of up to $6,500 for some existing home owners. I anticipate that this tax credit for the existing homeowners might bridge some of the gap seen with the negative equity factors for those who have listed their Colorado Springs Real Estate properties.

Senate lawmakers appear to be close about the substance of the extended tax credit, but they are still mulling over other parts of the bill that influence other financial issues of federal unemployment insurance benefits.

The prevailing viewpoint about the tax credit is not that it is the "single catalyst" for our national real estate recovery, but that it assists with softening the harshness of the unemployment figures, expected to reach 10.5% sometime next year.

Regardless, any wiggle room to sustain our economic uncertainties brings optimism throughout 2010...