Mark Smith

Well the tax credit has come and gone in Erie, Colorado! We saw a push to get homes under contract like most areas in the spring. The extension of the tax credit to allow for closings up to September will see many of the homes "under contract" FINALLY close. I have noticed that the homes that were on the market during the tax credit (thru June) have had to have some larger price reductions to garner attention now.

It is too early to tell but I, like many, believe we are seeing the hangover effect of pushing those buyers to move before they might have been ready. The lull in July/August of homes contracting will take a little while to subside. The bright news is the SUPER low rates - some down to 4.25%. I just hope many would be buyer's will start to realize that these rates WILL go up and eat away some of the bargaining power.

Did you know that if the rates go from 5% to 6% ( very likely from many sources) that you would have to get a $ 300,000 for 10% less or $ 270,000 to basically have the same payment? Do you think rates have a better chance of going UP or the home you like to go down 10% in the next year?

JUST A THOUGHT TO PONDER!

I have watched a few of the local builders in Erie, Colorado see a uptick in their sales. I understand that these builders have cleared much of their inventory with the recent tax credit. I spoke just recently with the Richmond American sales rep about their Canyon Creek subdivision. I have 2 clients looking in this Erie, Colorado new home subdivision. She explained with their shift to a smaller model series along with offering incentives, it has basically kept their sales moving briskly.

I have checked in with the Taylor Morrison sales rep ( Erie Commons Subdivision) and the Boulder Creek sales rep (Erie Village and Vista Ridge) and they report the same. The interesting thing is that it supports my analysis that Erie, Colorado homes sales under $ 330,000 are moving briskly. This should continue as rates hover at all time lows.

Please feel free to contact me at 303-908-7922 to get more info on Erie homes for sale.

I have been working with a lot of First-Time home buyers in Erie Colorado for the last few years. Sure most home buyers care most about the upgrades-like granite and stainless appliances. I also find the elusive 3 car garage is a sought after feature. Of course, the lot location and traffic play a big role too!

I go over all of that, but also present to my buyers the previous sale, the tax assessment, the loans currently on the property, and of course price reductions/time on market. The interesting thing with homes in Erie Colorado is the tax situation. A lot of the development prior to 2002 was on the Boulder county side. These areas tend to have a lower mill levy associated with them ( this is the factor they use along with the assessed value to come up the taxes).

Many of the newer developments in Erie Commons, Vista Ridge, and Vista Pointe are in Weld County AND in a special taxing district and have a much higher tax rate (mill levy). The interesting point here is for many buyers in Erie Colorado the same priced home in say Country Meadows (Boulder County) may be $ 100-200 a month LESS than in Vista Ridge (Weld County).

This presents some interesting dilemmas for these buyers who are trying to weigh out the benefits of a golf course community with it's own pool, clubhouse, and school. Erie Colorado first-time home buyers have a lot to think about and taxes can sometimes be a tough call-since they inevitably only go UP.

Anyone shopping for a home these days, has heard that Erie Short Sales may be a great DEAL! You see the price which maybe $ 20,000 or more below neighboring homes - Great deal found-Right? Well Erie Short Sales MAY be a deal but they are definitely not a short process. The average Erie Short Sale takes about 3-4 months to complete from offer to close. My first short sale was 5 years ago and it took almost 6 months- Not very short.

The lenders are getting SHORTED the amount of money owed by the seller's loan vs the buyer's offer (minus realtor fees). The seller's bank will be taking most likely a hit of $ 30k +. If there is a 2nd mortgage, that lender will most likely get nothing in a foreclosure and maybe a couple of thousand with a short sale.

I always call the agent listing the home and ask a short checklist of questions. The results of these questions will decide whether I recommend my buyer to make an offer. Did you know the national average for short sales that close is only 30%? This Erie Short Sale checklist has helped my clients close about 90% of the time.

Please feel free to contact me at 303-908-7922- if you have any questions about Erie Short Sales.