Stuart Dobson

Thornton has been named a 'boomburb'

The March issue of Planning magazine has Thornton Colorado as the only Colorado city named with that moniker.  A 'boomburb' is defined as city with at least 100,000 residents that has experinced growth of at least 10 percent each decade since 1970, but that is still not the largest city in its metropolitan area.  According to the US Census, Thornton has grown at least 30 percent each decade and doubled in size between 1970 and 1980.  The current population is rated at almost 120,000 people. 

Much of the city's growth has occured in the last 5 to 10 years as the city has annexed new real estate.  However, Thornton Real Estate growth isn't just growth for growths sake according to the city's policy planning manager.  To provide a perpective of how much growth there has been, when Thornton first became a city in 1956, it had 786 acres of land, now it has almost 23,000 acres of land!  The city of Thornton has been planning for this land and housing growth, although it has somewhat stalled in the last couple years as the real estate boom and economy have soured.

Some of this growth is evidenced by the new Holly Sports Complex and the new Larkridge Shopping center at I-25 and Colorado Hwy 7.  There are still mixed use development being planned along the E-470 corridor and transit oriented real estate development around the (temporarily in limbo) FasTracks stations.  Additional new projects include the new Rangeview Library District's second city library that just broker ground March 28 at 128th Avenue and Holly Street, and the expansion of 136th Avenue between Cherry Street and Holly Street in front of Horizon High School.

All the action is on the lower end of the market

If you have a listing and it's not under the FHA loan limits ($417k in Denver), the odds of a quick sale are very low.  It can be an $800,000 house selling for $500,000, it still is not going to move very fast, if at all.  Right now, it's all about the FHA loans, and houses priced below $250k.  In those neighborhoods, and at those price ranges we're getting alot of first time buyers and people who still have jobs and have the down payments.  Not to mention that is where most of the real estate investors in Colorado are looking for bargains to flip or rent.

What's a broker to do?  follow the market. 

Although I'm not crazy about viewing $150k homes, it does feel really good to help out buyers who normally may be shunned by many agents.  I hate to admit it, but it's almost kind of a rush.  Like a big fish in a small pond sort of thing.  The home buyers are very greatful for the help and guidance, and I love working with people who are younger and actually listen when I make a recommendation or try to educate them about the real estate transaction.

The commission's aren't there, that's for sure.  $5,000 checks don't go very far, but the clients have become friends, and that is worth a lot!

One of the most important things I tell clients who list properties with me is that they must have clean windows, along with the curtains drawn back and the blinds open to let in the natural light.

This also goes along with having a cleaned house in general, but we all know the three most important things to clean:

1. Kitchen - No one wants to see dirty food in the sink.
2. Bathrooms - No one wants to see dirty anything here.
3. Windows - Finally, everyone wants to see through a window.

I happen to be fortunate enough to have run across a great couple of local college kids who have a window cleaning business here in Denver. I don't make it a practice to endorse businesses normally, but have been impressed by these guys so far.

Their info is:

Clear Choice Window Cleaning

Marcus Kirkwood

720-806-4849

They have done very well so far and I plan on using them in the future. I hope this helps if you have clients that need to have some pros clean there windows (inside and out) and screens.

Details on the Governments new $8,000 Home Buyer Tax Credit

There seems to be some confusion still regarding the new Homebuyer Tax Credit  available.  Also, in researching this I discovered that most sites, blogs, etc. neglect to mention a key restriction on qualifying for this refundable tax credit regarding home purchase from a related party.

How Much, Who, and When

1. Eight grand, new buyers: This credit is equivalent to 10 percent of the purchase price of the home, although it's capped at $8,000, and applies only to first-time home buyers and principal residences (or $4,000 for married couples filing separately). But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.

2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home, but not a principal residence, within the past three years, you would still qualify for the credit.

3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.  Please reference #2 above, the purchase date is the Title Transfer Date.

4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.  This means, for example:  that if you paid $1,000 in federal tax, and are eligible for the full $8,000 credit, you would receive a $7,000 refund check (lookout Vegas!)

6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)


Frequently Asked Questions (FAQ's)

What's a Primary Residence?

A primary residence is a residence in which an individual lives most of the time. A primary residence can be a house, condominium, co-operative apartment, houseboat, or mobile home.
Because the tax credit is for people who purchase their primary residence, individuals may qualify for the tax credit even if they own a vacation home or rental property as long as those properties were not their primary residence for at least three years preceding the purchase of their new home.

Who Cannot claim the credit?

The first-time homebuyer tax credit is not allowed under any of the following circumstances:
•  The property is acquired from a related person as defined (26 U.S.C. § 36(c)(3)(A)) (see below);
•  The property is acquired by gift or inheritance (26 U.S.C. § 36(c)(3)(A));
•  The buyer is a nonresident alien (26 U.S.C. § 36(d)(1)); or
•  The buyer disposes of the property (or the property ceases to be the principal residence of the buyer and, if married, the buyer’s spouse) before the end of such taxable year (26 U.S.C. § 36(d)(2)).

What acquisitions from related persons do not qualify for the first-time homebuyer tax credit?

A buyer is ineligible for the first-time homebuyer tax credit if the property is acquired from certain related persons, including, but not limited to, the following:
•  The buyer’s spouse, ancestors (such as parents and grandparents), or lineal descendants (such as children or grandchildren);
•  A corporation in which the buyer owns more than 50% of the outstanding stock; or
•  A partnership in which the buyer owns more than 50% interest. (26 U.S.C. § 36(c)(3)(A) (citing §§ 267 and 707).)

As with all real estate related decisions where tax and legal considerations are relevant factors, you should consult with your attorney or tax advisor.  If you are a Realtor or Real Estate agent or Broker advising a buyer in regards to utilizing this credit or recommending a purchase partially due to this credit, I strongly suggest you have a signed document that specifically mentions your client should consult a tax advisor and legal advisor.

Kids, vandalism, and Realtors

This last Sunday as I was just getting ready to watch Supercross with my kids (it's somewhat of a Sunday afternoon tradition this year), we heard some noise coming from the small construction project behind our house.  A couple of teenage boys were throwing rocks at the earth moving equipment.  Before I could step out onto the back deck to tell them to knock it off, one of the rocks found a window and shattered it.  At this point they decided to pick up their skateboards and walk away.  Becuase I hate vandalism and don't want to see anyone take an unjustified economic loss in these times I called the police, gave a quick description, location, and mentioned that I could still see the kids and the police should hurry if they want to catch them...the dispatcher said the police would come when they could get around to it...

I thought about that as the kids disappeared around a corner, my kids were seeing all this too and decided to make sure the right thing happened this time.  I hopped in the car, circled the block and saw them just as they were about to enter a local store.  I pulled the car over, got out told them they should stay right there as the police were coming.  At that point, I had my cell phone, I called the police back, told them I had the kids in front of me and they might want to respond a bit quicker...two squad cars rolled up in two minutes!

After a brief statement from me, one kid confessed, I wrote a statement, showed an officer the damage and went back home to watch the races with my son.

A hour or so later I saw what was probably some of the kids family come out with him to the construction site, take some pics and leave.

How this relates to us Realtors

What struck me about this little incident was how everyone makes mistakes in life, some pay for them now, some later in other ways, but we all do the best we can with our kids, ourselves and our businesses (which may be like kids sometimes).

I think I set a good example for my kids.  Hopefully the kids that were vandalizing property will not do it again and will think twice before getting into any trouble in the future. 

In business we make mistakes, we pay for them and we move on to the best of our ability.  I'm sure the parents or family of the kids are doing the best job they feel they can do too.  This is the important thing though, what is right for some, is not necessarily right for all.

We are all different

Some agents like commercial real estate, some residential, some specialize in vacation areas.  The list of differences goes on and on...We all do what we feel is best for us, our clients, our businesses, families, etc.  There is no perfect way or one right answer.  And at times we make mistakes and have to pay for them too.