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Foreclosures and Home Prices in Douglas County are Easy to Track

Foreclosures and Home Prices in Douglas County

According to this website (realtytrac.com) there are currently 201 foreclosures in Douglas County, which equals one in every 532 housing units.

The foreclosure rate in the United States saw a small downturn in 2011. In fact, it has been reported that every single month except for December during the year 2011 saw its foreclosure rate fall when compared to the same month during the previous year. These statistics mean that the number of foreclosure filings in the United States was down about 30 percent from 2010 – and some specific states saw an even greater percentage decrease.

While the above statistics seem very promising the real estate market and foreclosures in Douglas County are not necessarily out of the woods.

You may remember that in 2011 many mortgage companies halted their foreclosure proceedings as they conducted examinations into their foreclosure practices. At first glance of 2011 foreclosure numbers and percentages it looks like the numbers went down from 2010. However, numbers may actually increase in 2012 due to the backlog and delays associated with the temporary halt in 2011. Banks now releasing their ‘shadow inventory’ will temporarily flood the market with foreclosures, however, banks have guaranteed they will approve and move their foreclosure inventory in a shorter period of time than years before.

Because of this issue alone, foreclosures in Douglas County may see a rise in the coming months. The result of an increase in foreclosures will most likely lead to home prices that will not rise significantly over the next year, more opportunities to purchase homes via short sales, a higher number of REO properties, and better opportunities for buyers to find great deals on real estate in every category.

Because of the number of foreclosures in Douglas County there are still plenty of opportunities for home buyers and investors to find great opportunities.

Anyone who is interested in following foreclosure activity in Douglas County can visit http://www.WiseListingSystem.com to find information on all properties that are currently listed as foreclosures.

Another great resource for anyone who is considering purchasing real estate in Douglas County is CityData.com. This website provides a huge amount of statistical information related to home sale trends, home sale prices, area demographics, and more.

Foreclosures in Douglas County are likely to continue until the economy recovers more significantly than it seems to have over the past few months, which means there will be plenty of opportunities to find great deals on property of all types. Douglas County is one of the most coveted places to live in the State of Colorado and the Wise Listing Team is here to help you find the best opportunities available. Call us today at (303) 814-3684 and we will be happy to provide you with detailed information on how to buy foreclosure properties and realize instant equity. Search Short Sale Homes in Douglas County Colorado Here

Why Be A Short-Sale Buyer? What Are The Pro's and Con's?

The thought of being a short sale buyer and getting a great deal on a nice piece of property is very appealing. However, it’s important to understand that the process of purchasing a short sale property differs from buying property the traditional way. There are additional steps involved in buying a short sale, and the seller’s lender plays an integral role in the acceptance of your purchase offer. Additionally, the process can be lengthy and frustrating. If you have a good idea of what to expect going into this type of transaction, you will greatly increase your chances of success.

The asking price for a piece of property listed as a short sale is not always determined by the lender. In fact, a lender is usually completely unaware of the asking price. In most cases, sellers, together with their agents, determine the asking price, and they usually price it low in hopes of receiving several purchase offers. After an offer is made, it is sent to the seller’s lender for approval. If the seller is not ultimately approved for a short sale, or if the offer is deemed too low, it will be rejected by the lender. Therefore, buyers often think they can purchase a home for a much lower price than what will ultimately be accepted by the lender, which can cause a potential short sale purchase to fail.

Focus on “approved” short sale properties. If a short sale offer was previously made on a property and the lender approved the purchase price but the sale ultimately fell through for a different reason, it can be assumed that a future offer on the same property for the same price will be approved by the lender. While approved short sale prices are not guaranteed, there is a good chance that if the price was approved once, it will be approved again.

Buying a short sale home that has more than one mortgage can be complicated. As a short sale buyer, it is important to keep in mind that purchasing a home that has only one mortgage simplifies the process. If you do wish to purchase a short sale home that has more than one mortgage, keep in mind that the purchase will likely take a while to complete.

If the price for a short sale home seems extremely low, it may be too good to be true. When a home is priced very low in order to draw in a short sale buyer and an extremely low offer is submitted to the lender, a response from the lender is likely to take a long time. In general, the lower the offer, the slower the response. Lowball offers are oftentimes rejected outright.

If the asking price for the home is significantly lower than the market comps, the offer is likely to be rejected. Most lenders are not willing to lose more than a certain dollar amount on each property they approve for a short sale. If you are a short sale buyer who wants to buy a home for less than market value, supporting documentation about the neighborhood and/or market comps should be submitted to the lender with the purchase offer.

Short sales can take a long time. Anyone who wants to buy a short sale property must be patient. There are many reasons the sale might not be approved, so you’ll need to be prepared to hang in there for the long haul.

A short sale buyer usually wants to get a good deal on a piece of property. While buying a home for a low price is certainly a benefit, the short sale process can be lengthy and complicated. The Wise Listing team can help you find short sales that meet your requirements, and we will help you make the best and most reasonable purchase offers possible. We know what lenders are looking for, and we will help you make your short sale purchase successful. Call Doug James at The Wise Listing Team today at 303-814-3684. We will help you get started today!

Comparing Real Estate Investing with Other Options

Comparing Real Estate Investing to Other Investing Ideas

Steve Harney recently posted Real Estate: Today’s Golden Opportunity comparing the current housing market to the market for gold about a decade ago. Some folks commented on the fact that you can’t compare gold to real estate as an investment as gold is a very liquid asset and it would take more time and effort to sell a house. They were not trying to make the case for real estate vs. gold as an investment in the blog. They were just showing that all investments go through cycles and that the best time to buy any investment may be when everyone is saying not to.

However, since the subject of comparing real estate to other investments has come up, let’s take a closer look. There are two major advantages to investing in a home of your own rather than another option:Wise-Listing-System-Real-Estate-Investing

You Can’t Live in Your IRA

Today, in the vast majority of the country, renting is actually more expensive than owning a home.

History has proven that tenants DO NOT invest the difference in their rent and mortgage payments.

Today, study after study shows that owning a home is no more expensive than renting a home. However, even if this wasn’t the case, history shows that owning a home creates greater wealth.

Paying a mortgage creates what financial experts call ‘forced savings’. The Joint Center for Housing Studies at Harvard University released a study earlier this year titled America’s Rental Housing: Meeting Challenges, Building on Opportunities. In the study, they actually quantified the difference in family wealth between renters and homeowners:

“Renters have only a fraction of the net wealth of owners. Near the peak of the housing bubble in 2007, the median net wealth of homeowners was $234,600—about 46 times the $5,100 median for renters. Even if homeowner wealth fell back to 1995 levels, it would still be 27.5 times the median for renters.”

There Are Tremendous Tax Advantages to Investing in a Home

There is no doubt that selling an investment such as gold is easier than selling your home. However, this liquidity comes at a price. The price is called capital gains. That is the tax you pay on any financial gain you receive from the investment. This tax doesn’t apply the same way when you sell your primary residence:

Theresa Palagonia, a CPA and the Accounting Manager for the firm G.S. Garritano & Associates, was good enough to explain the Home Sale Exclusion Rules:

“You may qualify to exclude from your income all or part of any gain from the sale of your main home.

Maximum Exclusion

You can exclude up to $250,000 of the gain on the sale of your main home if all of the following are true:

You meet the ownership test.

You meet the use test.

During the 2 year period ending on the date of the sale, you did not exclude gain from the sale of another home.

If you and another person owned the home jointly but file separate returns, each of you can exclude up to $250,000 of gain from the sale of your interest in the home if each of you meets the three conditions listed above.

You may be able to exclude up to $500,000 of the gain on the sale of your main home if you are married and file a joint return and meet the requirements. (Special rules apply for joint returns.)

Ownership and Use Tests

During the 5 year period ending on the date of the sale, you must have:

Owned the home for at least 2 years, and

Lived in the home as your main home for at least 2 years

Certain exceptions exist in which you may qualify for the exclusion without satisfying the tests listed.”

Bottom Line

Every investment has pros and cons. That is why there is such an assortment of great opportunities. Real Estate has been, is and always will be one of those opportunities. Call Doug James and The Wise Listing System today to discuss your unique situation, we can show you a way to invest in real estate and not break the bank. Our direct line: 303-814-3684.

As always, we recommend to all our clients that they consult with their financial advisor(s)/CPA when interpreting the tax laws. Please call us with questions…and let us know how we can help!

Do You "Qualify" For A Short Sale On Your Home?

Do You Qualify For a Short Sale?

Let’s talk about who will qualify for a short sale. When a mortgage company agrees to a short sale, it means that the lender is willing to accept less than the amount owed on the current mortgage to settle the debt owed to them. Oftentimes, lenders are willing to offer short sale opportunities to homeowners who they believe may end up in foreclosure if it were not for the short sale option.

A short sale sounds like a great idea to homeowners who are desperate to sell their homes and know that they are underwater with their mortgage. (“Underwater” means that they owe more on their mortgage than their homes are currently worth.) The catch with short sales, however, is that homeowners must meet certain criteria in order to be considered.

Lender Guidelines:

Every mortgage company has different guidelines when it comes to short sale qualifications. Typically, qualifications revolve around the homeowner’s employment situation, whether the home’s mortgage is in a default status, how many months the home has been listed for sale, and how much the home’s value has decreased in the past several months or years.

· Your Home Is Worth Less than Your Mortgage: it is a growing trend for homeowners to simply walk away from homes when their property is worth less than their mortgage. To try and alleviate this from happening, lenders are more likely to approve a short sale if it can be proven that the home’s current value is less than the amount owed.

· Bankruptcy: When you file for bankruptcy, it’s a sign that you are in severe financial distress. This is a good indication to mortgage companies that you cannot continue to make your house payments and that your house may fall into foreclosure. Rather than go through the foreclosure process, many mortgage companies will approve a short sale to try and get the house sold as quickly as possible.

Reasons You Might Not Qualify for a Short Sale:

There are many factors that go into a mortgage company’s decision on whether or not to approve a short sale. There are some reasons, however, that are usually not taken into consideration. For example, mortgage companies are usually not willing to take a loss for the following reasons: you have a baby and simply want a bigger house, you don’t like your house and want to move, you have found another house and you want to move as soon as possible, or you have the financial means to continue paying your mortgage while your home is for sale.

Hire a Real Estate Agent with Short Sale Experience

Applying for a short sale involves a lot of paperwork, organization, and follow-up with your mortgage company and the necessary steps can be confusing and complicated. Let Doug James and The Wise Listing Team help you! We understand the short sale process and can answer all of your questions. We can tell you if will potentially qualify for a short sale and we will assist you every step of the way. Call us today at 303-814-3684

How Many Castle Rock, Colorado Real Estate Options are There?

There are many Castle Rock Colorado real estate homes for sale, and it’s not practical to look at every single one of them before deciding which one to buy. Buying a house is a very big decision and it sometimes takes a while to find the perfect one. With hundreds of homes currently on the market in Castle Rock, it is too time consuming to see every single one in person.

A question that people often ask us is, “How many homes should we see before we decide on one?” While there really isn’t a specific number that can be recommended, there are ways to drastically reduce the number of homes that must be seen in person before you find the perfect home.

The Internet

We live in the age of the internet, which makes looking for houses a whole lot easier! Most Castle Rock Colorado real estate is listed online. In many cases, the listing agent will take the time to post pictures of interiors and exteriors. Most realtors also take the time to write descriptions of amenities and neighborhoods. All of this information helps potential homebuyers narrow down their search.

In some cases, however, realtors do not post pictures and/or great descriptions of their listed properties, which makes it difficult to get an electronic glimpse of what the homes look like ahead of seeing them in person. Also, homes that are listed as FSBOs (“For Sale by Owner”) are not always accessible on-line.

Is There Something Better Out There?

Many potential homebuyers are burdened by the “Is there something better out there?” dilemma. This question often pops up when people are having apprehensions about putting an offer on a house. They wonder if there might be something else available that is just a tiny bit better than the home they’ve come close to choosing. With so many Castle Rock real estate options, it can be hard to make a decision. Potential homebuyers should never feel bad about asking their real estate agent to see more homes. The last thing a realtor wants is for their clients to buy a home that they are not completely convinced is the best one available. Buying a home is a huge decision and commitment, and you need to be sure you make the right choice! A seasoned Realtor will do their homework before they ever put you in their car. Meaning, they should speak to the listing agent to ask pertinent questions about the house on your behalf, therefore, eliminating the houses that just don't match your criteria at all.

Buying the First House on the List

After narrowing down your list of homes to see in person, and venturing out with your agent to see all of them, you might decide that you have fallen in love with the very first home on the list. This is not uncommon! However, it’s a good idea to look at several houses that have the top items and/or characteristics that you are looking for in a home, and compare all of them. Then, if you decide that the first one you saw is actually “the one,” make sure to visit it at least one more time before making an offer. With all of the Castle Rock Colorado real estate currently on the market, the choices are abundant and there is no doubt that the perfect house is ready and waiting for you! And according to Doug James, The Wise Listing System, "And when you find it, you'll know it, it will feel "just right"!!" I've been helping folks find the home of their dream for over 30 years and I can tell you, it's just a feeling you get when the right home comes along, you'll know it and so will I. Give us a call today and I'll help you find your dream home!