Mic Ortega

As Realtors, it seems like we almost always have an answer for your question, or at least know where to find it.  The one question that we can’t answer  is the one we get all the time, is this neighborhood safe?  Constrained by fair housing laws, we aren’t allowed to declare neighborhoods safe or “bad mouth” them either.  All we are allowed to do is suggest that you check out any area you are considering buying.

So the next question we obviously get is, where do I find out the safety of a neighborhood?  To get cold hard facts, you can always go online to get the latest crime statistics and reports.  These will give you a sense of crime rates, but if you aren’t familiar with the graphs and plots and what the numbers really mean, it can be quite confusing.  Luckily, I ran across this article on msn.com about what to look for in a safe neighborhood and found many of the points valuable.  There is no definitive way to know absolutely that a neighborhood is “safe” but these steps can certainly help give you a much better idea of what a neighborhood has to offer.

Trust your Gut

It’s what police have long said, for many situations: pay attention and trust your gut. Homebuyers certainly rely on it, often by taking a drive. Even safety officials reiterate the concept.

“I always feel like if your gut says there’s something wrong, there’s something wrong,” says Robbi Woodson, manager of the National Sheriffs’ Association Neighborhood Watch program, at USAonWatch. “If things don’t look right, then most likely they’re not right.”

But the gut is driven by real information, even when people aren’t aware of it. And some of that information may, in fact, be off, colored by preconceived notions of what a “safe” area is supposed to look like.

To be certain, experts say, prospective buyers need to know what to consider and apply the same methodical inventory they use to evaluate the home. Check off the boxes.

“A lot of people spend so much time looking at the physical configuration of the house, but they forget that they don’t just live in the house, they live in the neighborhood,” Saville says. “Their life is affected by the neighbors.”

A neighbor who cares
If you’ve been paying any attention to the news since the 1990s, when community policing came into vogue, then you’re familiar with the broken-windows theory.

Broken windows, nearly all criminologists agree, along with dilapidated buildings, abandoned lots, missing street lights, rampant graffiti, unkempt yards — basically any signs of neglect — attract crime. The reasons are both practical — dark, lonely spots sit out of view – and psychological — would-be vandals are, ironically, less apt to mess with nice stuff.

As a prospective resident, though, you have to consider an underlying question, too. Will people who let their lots fall into disrepair treat you badly as well? After all, it’s the neighbors, not the police, who will serve as the first and best line of defense.

Areas designed with safety in mind
Now, do you see people? Are they out and about? Can you clearly see the children playing in the park and the man walking to the store?

Crime Prevention Through Environmental Design, a program that brings safety considerations to the drawing board, asks these questions, and the solutions usually align with the adage “There’s safety in numbers.” Safe neighborhoods are those in which people are physically able to see each other. It means they need desirable places to go, and places that are visible from sidewalks and windows.

If you’re walking the neighborhood, here’s what to look for:

• Multiple-use areas: A park is used – and watched – when it’s near a coffee shop or post office. Think about it: Would you rather send your kids to a playground bounded only by tall shrubs and the backs of a few homes?
• Recreational areas with clear entries and exits: This is a form of marking territory. Places that have marked, visible entrances give users a sense of ownership and are less likely to be hijacked for criminal use. It need not be a tall fence, just a clear boundary.
• Land and buildings that are well-maintained: A homeowner, or homeowners association, that takes the trouble to maintain areas will be heavily invested in protecting those areas from crime.
• Unobstructed lines of sight:Shrubs and fences that border walkways should not be taller than 3 feet. Places where people walk and play should be visible from house windows. You want eyes on the street, Saville says.
• Real house fronts:Wait, don’t all houses have fronts? No, some have driveways and giant doors that are always shut. “If I drive down the front of a residential street and all I see is garages, that tells me the life of the house is in the backyard,” says Saville, who also blogs on safe neighborhoods. “What it does is it abandons the life of the street to the cars.”
• A neighborhood nightlight: “Do people keep their porch lights on? They don’t have to be high, bright lights that suck the energy out of the grid,” Saville says, just enough to see approaching figures, as if under a full moon.
• People out walking:“The more walkable a street is, the more likely it is that people are outside to watch you and protect you,” Saville says. “An active street life is one of the best defenses against street crime.”

As a hefty bonus, all of the above also help create a sense of community. This improves the quality of life and bumps up home values.

Crime data on the Web
Now back to the crime data online. A growing number of sites are incorporating crime statistics into informative – dare we say, at times visually stunning – maps that can be searched by neighborhood, date and type of crime.

We’ve noted a few. Just keep in mind, says Saville, the former cop, that these don’t tell the whole story. Incidents are logged only when a person has reported a crime, police have responded and an officer has filed a report. This can skew the results.

The best bet, real-estate agents say: talk to your prospective neighbors. Or, rather, let them talk. Chat with a few and a decent picture of neighborhood concerns will become clear.

Still, the sites do offer useful comparisons. Many area police departments have their own, so check there. Here, too, are a few more:

• EveryBlock.com: Owned by MSNBC, the site compiles news and data for neighborhoods in 15 cities and includes a section for crime. Users can specify an area (up to an eight-block radius) and search by date and types of crime. The crime reports also appear in list form.
• CrimeReports.com: A national site that’s expanded to include information from 600 law-enforcement agencies in North America. Offers free searches.
• NeighborhoodScout.com: A multipurpose site that compares your neighborhood criminal stats with those of the city, state and the nation. It relies on statistical modeling to do so, but claims 87% effectiveness.
• Oakland Crimespotting: An easy-to-view, integrative map that shifts before your eyes. The developer appears to only have a map for Oakland, Calif., but the model could be adopted by other cities.
• National Sex Offender Public Web Site: A U.S. Department of Justice site that links to the public registries for all 50 states, the territories and the tribes.
• Family Watchdog:A national site, searchable by neighborhood, that shows where offenders live and work, and provides e-mail updates. Points out that nine out of 10 sexual assaults against children are committed by a person the child knew.

Mic Ortega

With more Americans nesting — the Census Bureau, no surprise, reports that far fewer people moved to a new home in 2008 than 2007 — and money tight, budget remodeling is in. Homeowners want to be comfy in their nests.

So what home improvements are hot, and which can you do on the cheap that will add value to your home? There are, in fact, improvements that cost less than $5,000 that will enhance your home — while you’re nesting and when you’re selling — and leave change in your pocket. Two of the hottest trends: new materials and kitchen and bathroom tweaks.

Bye, bye granite

New materials are pushing granite out of the kitchen and bath. “I’m seeing more natural stone like travertine, slate and limestone,” says Dean Bennett, president of Dean Bennett Design and Construction Inc. in Castle Rock, Colo., “in addition to colored glass tile on kitchen backsplashes and in showers.”

That’s not the only change in kitchens and bathrooms. “The bathroom tub is extinct,” says Michael Sauri, owner of TriVistaUSA, a design and building firm working in D.C., Maryland and Virginia. “Unless we’re remodeling for a family with young children, no one — but no one — wants a bathtub.”

Instead, homeowners are creating a spa feel in the bathroom. “People are going for larger or more open showers, dual showerheads and full body sprays, and full benches in showers,” says Marlaina Teich, owner of Marlaina Teich Designs in Merrick, N.Y.

“The big thing is heated floors,” adds Bernie Smith, CEO of Masterworks, a remodeling firm in Atlanta. “It’s not as expensive as it was in the past, and it’s luxurious,” concurs Teich. “Some people are even bringing it into the kitchen.”

Creativity in the kitchen and bath

Speaking of kitchens, they’re migrating. “Homeowners are moving their kitchen — or at least a part of it — into their master bedroom to create a mini ‘breakfast’ kitchen,” says Teich. “All you really need is a counter area for a coffee maker and a mini refrigerator underneath for milk or juice.”

Or, consider minor enhancements in the kitchen. “You can save a lot of money by refinishing kitchen cabinets,” says Teich. “In one kitchen, we saved thousands of dollars by stripping and refinishing the cabinets and changing the hardware and backsplash. It was a brand-new kitchen for under $5,000.”

Bennett also does lower-cost bath remodels. “Do new fixtures, replace your toilet with a high-volume flush with an elongated bowl — which is more comfortable and has a bigger opening, and still conserves water — and change out the fan to a quieter fan, which is a big hit for under $300,” he says. “People are also switching from a Jacuzzi to a soaking tub, which is bigger and deeper. I’ve also put in a solar tube that diffuses the bathroom with light. It’s highly reflective and runs from the ceiling through the attic and out to the roof. For about $500 installed, it makes dark bathrooms light, and you’re not using light bulbs.”

Don’t forget the effect of minor accessories. “Change your whole look with lighting,” advises Teich. “Replace your chandelier and accent lighting, and add overhead lighting and floor lamps. That, along with a new area rug and accessories, can change the whole look of a room, even if you keep the same furniture.”

Martin Yeager

One of the most common questions homeowners face is when does it make sense to add an addition or remodel my home? This is more likely to be an issue in the Highlands neighborhoods as market values are on the rise. Where is the break-even point if you decide to sell? How much does a new bath or addition or basement finish really cost?

To help answer those questions, I am hosting a relaxed gathering at the Highlands Garden Café for clients, friends and neighbors to meet and discuss ideas with a group of trusted contractors, suppliers and artisans. The event will be this Sunday, January 31st from 2PM-5PM. I have included specialists and suppliers including cabinetry, flooring, tile and granite, appliances and fireplaces, windows, plumbing, and faux painting artisans. In addition, I will have General Contractors available as well as experts in recycling and mortgage refinancing.

The Highlands neighborhoods pose very unique challenges; finding a balance between the urban feeling and varied architecture to defining more contemporary space. We make do with one less bathroom than we prefer and convert an office to a bedroom when family and friends stay over. Its life in the Highlands and the amenities of the neighborhoods exceed the inconvenience of adapting to an older home. As my fellow agents at Live Urban will attest, there are more buyers looking in the Highlands and surrounding neighborhoods than those wishing to leave and ultimately, sell their homes.

The Highlands Garden Café is located on 3927 W 32nd and is the perfect backdrop for such an event. The Csafé was first converted from one Victorian home 16 years ago and expanded to the neighboring home a few years later. Additional dining rooms, offices and kitchens were added in a third phase, respecting the style and architecture of the original homes. The Café will provide complimentary wine and appetizers to sample why the Café is consistently rated nationally as one of the best restaurants in Denver.

I will have market analysis information and recent sales data to determine your current market values and I will be available to answer your real estate questions and ideas. Please RSVP at 303 668 9373 or online at HighlandsHomeExpo.com I look forward to meeting you on Sunday!

Stacie Staub

What’s your top 10?  I am always surprised, and a bit amused, when people start their home search looking for one type of house, and a list of “must-haves” which totally changes when they walk into that house that is “the one”.  I often start a home search by asking a bunch of questions - about lifestyle, mostly - because it’s important to hear from the buyer what is vital in their everyday lives, and what they think they want, but can most likely do without.  So what are the deal-breakers?  Of course, they are always different, but according to this article from Real Estate Magazine, based on findings from the experts at the International Builders Show - these are the Top 10:

Americans want smaller houses and they are willing to strip some of yesterday’s most popular rooms-such as home theaters-from them in order to accommodate changing lifestyles, consumer experts told audiences at the International Builders Show.”This is a traumatic time in this country and the future isn’t something we’re 100% sure about now either. What’s left? The answer for most home buyers is authenticity,” said Heather McCune, director of marketing for Bassenian Lagoni Architects in Park Ridge, Ill. Buyers today want cost-effective architecture, plans that focus on spaces and not rooms and homes that are designed ‘green’ from the outset,” she said. The key for home builders is “finding the balance between what buyers want and the price point.”

For many buyers, their next house will be smaller than their current one, said Carol Lavender, president of the Lavender Design Group in San Antonio, Texas. Large kitchens that are open to the main family living area, old-fashioned bathrooms with clawfoot tubs and small spaces such as wine grottos are design features that will resonate today, she said. “What we’re hearing is ‘harvest’ as a home theme-the feeling of Thanksgiving. It’s all about family togetherness-casual living, entertaining and flexible spaces,” Lavender said.

Paul Cardis, CEO of AVID Ratings Co., which conducts an annual survey of home buyer preferences, said there are 10 “must” features in new homes:

1. Large kitchens, with an island. “If you’re going to spend design dollars, spend them where people want them-spend them in the kitchen,” McCune said.

2. Granite countertops are a must for move-up buyers and buyers of custom homes, but for others “they are on the bubble,” Cardis said.

3. Energy-efficient appliances, high-efficiency insulation and high window efficiency. Among the “green” features touted in homes, these are the ones buyers value most, said Cardis. While large windows had been a major draw, energy concerns are giving customers pause on those. The use of recycled or synthetic materials is only borderline desirable.

4. Home office/study. People would much rather have this space rather than, say, a formal dining room. “People are feeling like they can dine out again and so the dining room has become tradable,” Cardis said. And the home theater may also be headed for the scrap heap, a casualty of the “shift from boom to correction.”

5. Main-floor master suite. This is a must feature for empty-nesters and certain other buyers, and appears to be getting more popular in general. That could help explain why demand for upstairs laundries is declining after several years of popularity gains.

6. Outdoor living room. The popularity of outdoor spaces continues to grow, even in Canada. The idea of an outdoor room is even more popular than an outdoor cooking area, meaning people are willing to spend more time outside.

7. Master suite soaker tubs. Whirlpools are still desirable for many home buyers, but they clearly went down a notch in the latest survey. Oversize showers with seating areas are also moving up in popularity.

8. Stone and brick exteriors. Stucco and vinyl don’t make the cut.

9. Community landscaping, with walking paths and playgrounds. Forget about golf courses, swimming pools and clubhouses. Buyers in large planned developments prefer hiking among lush greenery.

10. Two-car garages. A given at all levels; three-car garages, in which the third bay is more often than not used for additional storage and not automobiles, is desirable in the move-up and custom categories.

Mic Ortega

Should I rent or should I buy, the million dollar question in Real Estate.  The government sure has done its part in the past few months to encourage people to get out of their apartments and into a new home.  Whether to rent or buy is a complex decision, but timing is important. In many U.S. cities, the premium to buy–the difference between what you’d pay monthly to own a home, rather than rent–has dropped dramatically.

If that’s the case in your metro, Denver/Aurora/Broomfield ranked in the top 10, the next thing to consider is whether your home will appreciate. In these 10 cities the step up from renting to buying is a much smaller one than usual, according to data from Dallas-based Witten Advisors, an apartment market consulting firm, and the five-year S&P/Case Shiller home price outlook is particularly good.

To read more details on how these cities were chosen and go more in depth on the buy verse rent proposal, click here.  More great news for Denver and with the First Time Tax Credit set to expire, there has never been a better time than now to pull the trigger.

Metropolitan Statistical Area: Denver-Aurora-Broomfield, Colo.

Stacie Staub

Not sure if you will qualify for the Repeat Purchase (or Move-up Buyer Credit) if you buy another house this year?  The IRS has released the official guidelines for the $6,500 federal tax credit for repeat home purchases, which answer the questions that homeowners have  been asking.

Owners of existing homes — specifically, taxpayers who have occupied the same property as a principal residence for five consecutive years during the previous eight years — may now be able to claim a tax credit on a purchase of another house they intend to use as a principal residence.

The credit is for up to 10 percent of the price of the replacement home, capped at $6,500. The purchase contract must be dated from Nov. 7, 2009, to April 30, 2010 and the closing must occur no later than June 30.

Members of the armed forces and federal diplomatic and intelligence personnel stationed overseas get an extra year to claim the credit.

The maximum purchase price on houses eligible for the credit is $800,000.

Your modified adjusted gross income must be $125,000 or less if you are single, $225,000 or less if you are married and filing jointly. Above these limits, the allowable credit amount begins to phase down in increments and is eliminated once incomes hit $145,000 for singles and $245,000 for married joint filers.

Purchasers are not required to sell their previous home, but they must be able to demonstrate that the replacement house is or will be their principal residence.

On 2009 and 2010 tax returns, buyers should attach the following:  

– Form 5405, which can be found on the IRS website at  http://irs.gov

– A copy of the signed HUD-1 settlement sheet, including the contract sale price and the date of closing. This is to document that the timing of the transaction meets the program’s requirements.

– Evidence of long-term ownership and occupancy of the previous house to meet the five-consecutive-years requirement. This can be property tax records, homeowner’s insurance records or IRS Form 1098 mortgage interest statements for the five-year period.

– For buyers claiming a credit on a newly constructed home, for which a HUD-1 settlement sheet is not available, the IRS will accept a copy of the certificate of occupancy showing the purchasers’ names, the property address and the date.

– For buyers of mobile homes who are not able to get a settlement statement, the IRS will accept a copy of the executed retail sales contract showing the property’s address, purchase price and date of purchase.

Congress mandated all this extra documentation after audits uncovered widespread abuses by applicants for the $8,000 credit. Among these were fictitious home purchases in which taxpayers or tax preparers sought — or obtained — credits on properties that never were sold or bought. This time around, the IRS says it will rigorously investigate all claims filed, starting with a review of the documentation submitted. 

Consult with a tax professional if you are still unsure whether you will qualify for the credit!

An advisory posted by the IRS this month spelled out situations in which recipients of tax credits may have to repay them to the government. These include taxpayers who sell their houses within 36 months after purchase. Recipients must also repay the credit if they convert their principal residence to a rental or business property, or if their lender forecloses on the house.

With all the rules now available, here’s the action message to potential tax-credit seekers: Speed up your search for the house you want to buy. Get moving. There are only 14 weeks to sign a contract and just five months to go to closing. 

Mic Ortega

Better Homes and Gardens recently revealed proprietary research and insights on what consumers are looking for in their next home and overall priorities guiding current and future home improvement projects.

In a speech at the NAHB International Builders Show, Eliot Nusbaum, Better Homes and Gardens Executive Editor Home Design, presented the results of the Next Home Survey along with reported trends from a nationwide network of field editors, the magazine’s Home Improvement Challenge and editorial coverage.

The survey of nationwide potential new home buyers and existing home owners who are planning improvements in the next few months found top priorities to include price, energy-efficiency, organization and comfort.

“Not surprisingly, we continue to see a ‘cents and sensibility’ approach when it comes to buying or improving a home, with practicality and price being top priorities,” said Nusbaum. “Today’s homeowner is also looking for a home that fits the entire family–from a multi-tasking home office, to expanding storage space needs, to a living room that can adapt to advancements in home entertainment and technology.”

Future Home Buyers

A Smaller and More Energy-Efficient Home

Continuing the “downsizing” trend, more consumers (36% in 2009; 32% in 2008) expect their next home to be “somewhat smaller” or “much smaller.”

A greener home will be a priority, with 87% planning to have high-efficiency heating/cooling in their next home and 86% planning to have high-efficiency appliances; 24.9% will have geo-thermal heat.

When asked how today’s housing market and economic turmoil have impacted priorities for their next home, 76% said energy-efficient heating and cooling systems will be “more important” and for 70%, Energy Star appliances will be “more important.”

Almost half (48%) say green building practices/materials will be “more important” when purchasing their next home.

An Organized, Multi-Tasking Home with No Wasted Space

The home office is a priority as 59% of consumers plan to have one in the home. Of those, only 28% want a separate dedicated home office space (compared to 64% in 2008), with one-third (33%) now wanting a more multi-purposed space, such as combined office/computer/hobby/craft/art room.

A well organized home is key, with 66% of respondents listing “no-space-wasted” design and 62% listing ample storage space as attributes that will take on more importance.

Also on the ‘wish list’ for the next home is: a separate laundry room (85%); an outdoor grilling and living area (68%); a kitchen with eating area (67%); and an extra bedroom with bath (65%).

America’s love affair with the large garage continues to flourish with 37% of consumers now wanting a 3-car or larger garage compared to 29% in 2008.

A Family-Friendly Home

Nearly two-thirds (62%) of consumers consider a comfortable family gathering space to be top priority in their next home.

Of lesser interest this year is a kitchen, family and everyday eating area combined in one space (49% vs 56% in 2008) replaced by significantly greater interest in a family room partially separated from the kitchen (42% vs 27% in 2008).

There is also an increased desire (51% vs 44% in 2008) for a wall-mounted flat screen TV in the main family living area and for networked computers/home entertainment center (48% vs 43% in 2008).

Home Improvers

“With the economy still a major concern, right now it’s more about the ‘got to’ improvements than the ‘want to’ improvements,” said Nusbaum. “The focus is now on low-cost improvements that will pack a big punch.”

With only 16% feeling “now is the right time to spend” on home improvements vs 38% saying “now is not the right time to spend,” 52% are focusing their efforts on needed repairs and maintenance.

Three-quarters (76%) say the economy has had an impact on their home improvement plans, with half (50%) having changed their home improvement plans during the last year.

Smaller projects prove to be the most popular, such as painting a room (54%), replacing/adding flooring or carpeting (38%), decorating/redecorating a room (35%) and landscaping the yard (30%).

Energy-efficiency is also a focus of future home projects, with respondents placing importance on installation of Energy Star windows/doors (34%), high-efficiency heating/cooling (31%) and Energy Star appliances (31%).

Mary Lemieux

This fabulous Vitorian in the heart of West Highland is an eclectic blend of old and new - it has so many original features, with some modern amenities.  It just took a price reduction, and it’s ready to go, so I’m holding it open this Satruday from 1-4, stop by and check it out, you will love it.

Spacious Victorian with tons of charm!

Tree lined street just 5 blocks from Highlands Square, shops & restaurants.

Fruit trees, a patio and a storybook gazebo make this yard a great place to hang out, relax, and entertain. 

The real bonus in this backyard is the 2-story heated garage with space to create - whether it’s an artist space or workshop, this is valuable, functional space that isn’t included in the property’s square footage!

Charming backyard with gazebo and garage/studio!

Light, spacious front room with working fireplace.

Mic Ortega

With all the negative side effects of this recent recession, it is hard to keep track of its far reaching impact.  In terms of Real Estate, one item that often gets overlooked is the impact the recession is having on home maintenance.  With people tightening their wallets and watching what they spend, those home projects and repairs that typically might have been done immediately in the past appear to be getting pushed off.

As agents, we have always strongly pushed for our buyers to get home inspections on every home, especially foreclosures.  The average foreclosure will sit for months vacant with no maintenance, making a thorough inspection crucial.  But with maintenance appearing to be more lax on owner occupied homes as well, a complete and top notch inspection is crucial for all homes.

Deferred maintenance is when homeowners put off doing regular upkeep and repair to their homes. Maybe they can’t afford to replace the roof, or they’re underwater on the mortgage and don’t want to put money into a new hot-water heater when they might not be able to afford the home anymore.

Whatever the reason, must-do repairs aren’t being done, to the detriment of owners, future owners and neighbors alike.

We’re seeing the evidence at home improvement stores. Home Depot’s third-quarter 2009 net sales were down 8 percent from the previous year, and Lowes reported a 29.5 percent drop in net earnings in the same time period.

“If owners cannot afford to at least maintain their investments, or are underwater and make the decision not to preserve their investment, those homes will deteriorate more rapidly,” says Stephen Melman, director of economic services for the National Association of Home Builders.

Not only does this have a lasting impact on each individual home, but it can also have a negative impact on neighborhoods and communities as well.  It is very easy for a neighborhood to gain a reputation for the quality of the homes in its boundries, and with this decreased maintenance, it could have a far reaching impact.

Experts recommend doing everything you can to stay on top of the major mainenance items.  A neglected minor fix today could easily turn into a major, four figure fix in a matter of months.  For homeowners, it is important to conslut experts about maintenance items and for future buyers, make sure your inspector is well qualified and an expert.  By taking precautions now, you can easily save thousands down the road.

Martin Yeager

On Monday, the Housing and Urban Development Office temporarily waived restrictions regarding reselling homes purchased and resold within 90 days. For the past three years, HUD would not guarantee FHA loans for a home that had been acquired by the seller within the previous three months, Buyers using government backed mortgages were unable to purchase homes that had been reconditioned until the mandatory 90 days had passed. For the next year, that restriction is removed in hopes of stimulating the sale of foreclosed and distressed properties.

The new policy recognizes that most foreclosed homes require improvements and that investors provide the capital, resources, and manpower to bring the home up to an acceptable standard. The 90-day rule added an additional cost to the investor, as it required incurring 3 months of additional interest payments and loss of available funds for other investments, diminishing the return on the investment. With prices falling for the past two years, the additional restrictions only fueled the problem. The result was discouraging investments into neighborhoods as homes stood vacant and often vandalized and deteriorating over time.

There are other aspects that are required as part of the revised policy.

First, the sale must be at an arms length. In short, you cannot sell a home you purchased less than 3 months ago to a family member or someone with an “identity of interest.”

Second, if the new sales price exceeds 20% of the original acquisition costs, there must be substantial documentation in the file as well as 1-2 appraisals. In addition, the lender must order an inspection to be completed with the report provided to the buyer prior to closing. The lender has the right to recover the costs from the buyer.

Third, the loan must be a new loan and does not apply to Home Equity Conversion loans. For a full review of this policy, please visit http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

The bottom line for investors; You are now able to shorten the time between acquiring a property and placing it back on the market for buyers using Government back mortgages. If the new sales price is more than 20% from the price you purchased the home for initially, you will be asked to provide documentation to justify the increases. Best practice is to establish an independent account detailing expenses and fund used. It will ultimately depend on the appraisals to warrant the increase is within market pricing and neighborhood values.

The bottom line for Buyers You now have the advantage of finding a recently updated home without having to wait till the seller exceeds 90 days. If you are using a Government backed mortgage program such as FHA, you will have access to more home buying options sooner. In addition, credible investors insure your new home has been brought up to current building codes and improved the style and décor, minimizing your initial expenses as well. Be aware that the process will require documentation from the seller to justify the sales price if greater than 20% and two appraisals are likely. In addition, the lender will most likely charge you for an inspection they originate regardless of the outcome of the inspection. This may be independent of the Inspection deadline and resolution deadlines you present in your offer to buy. Best practice is to discuss this scenario with your lender before entering into an agreement or contract with a seller.

Investment in real estate often provides higher returns in comparison to other traditional and less secured sources. Combined with the incentive to new buyers, it is beginning to shift the landscape to a more balanced marketplace. Denver recovers faster and often, neighborhood by neighborhood. It is important to be fully aware of the history of the home and to know what has been done to improve the property. Remember, compared to other investment opportunities, real estate often outperforms traditional sources.