THE VERDICT IS IN – WE REACHED THE BOTTOM OF THE MARKET LAST YEAR

You cannot be certain that the bottom of the market has been reached until six months has passed. I told my clients and people I talked to last year that I thought the bottom had come and values were on their way up; but, there wasn’t solid data covering all the various segments of the market to support that opinion until the annual statistics were released last month. With a few exceptions, all … Continue reading...

WHAT DETERMINES THE VALUE OF REAL ESTATE?

The short answer is that buyers determine the value of real estate. Any commodity is only worth what someone is willing to pay for it. Sellers of real estate establish an asking price, which may be considerably more than what an informed buyer should be willing to pay; there are some typical errors that sellers make in projecting what their property is worth. Buyers who choose to be represented by … Continue reading...

FHA Loan Limits Slashed

The maximum loan amounts for two out of the three southwest Colorado counties for Federal Housing Administration (FHA) loans have been reduced significantly, along with other areas in the country. This will have a significant negative impact on first-time other homebuyers in the median price range who do not have 5% or more for a down-payment and/or whose ability to qualify for financing is … Continue reading...

MORTGAGE LENDING – A WHOLE NEW BALLGAME

The mortgage market meltdown in 2008 has dramatically affected the way loans are underwritten and the documentation required by lenders. The Dodd-Frank bill was enacted in 2009 as a knee-jerk response to address some of the practices that contributed to the collapse of the mortgage security market, demise of a number of prominent financial and insurance institutions, and the rash of foreclosures … Continue reading...