“The steady improvement in the shadow inventory is a positive development for the housing market,” CoreLogic Chief Economist Mark Gleming said in a press release. “However, continued price declines, high levels of negative equity and a sluggish labor market will keep the shadow supply elevated for an extended period of time.”

Housing Prices Increase, but not Enough

Some more indication of baby steps toward a market recovery. For the fourth consecutive month, home prices were on the upswing in July compared to the previous month. But the bump wasn’t good enough to give the market a clean bill of health, yet. According to data released by S&P/Case-Shiller Home Price Indices, home prices across 20 major urban areas in July remained flat when adjusted seasonally, and down 4.1 percent compared to a year earlier, despite showing a 0.9 percent gain. The trend of prices rising is a good sign, analysts said.

“With July’s data we are seeing not only anticipated monthly increases, but some fairly broad improvement in the annual rates of change in home prices,” said S&P’s David Blitzer, according to an AFP story. However, he said, “if you look at the state of the overall economy and, in particular, the recent large decline in consumer confidence, these combined statistics continue to indicate that the housing market is still bottoming and has not turned around.” Prices across the country were at the level of 2003, according to the report.

Mortgage Rates Continue to Slide

Here’s more music for the ears of potential homebuyers. Nudged by the Federal Reserve’s proposal to reduce borrowing costs, mortgage rates fell to the lowest in Freddie Mac’s recorded history this week. Rates on a 30-year-fixed loan hit an unimaginable 4.01 percent, down from 4.09 percent. On a 15-year loan rates dropped to 3.27 percent. The lucrative rates are aimed to lure consumers toward buying and refinancing their existing mortgages. Many are taking the bait. According to the Mortgage Bankers Association, there was a 9.7 percent rise in loan applications last week. However, a good section of consumers have not been able to take advantage of the rates because of stricter lending standards.

Existing Home Sales Drop

Some good news for buyers which turns out to be not-so-good news for sellers. Sale of existing homes dropped 1.2 percent in August, according to an index by the National Association of Realtors. The measure shows that sales dipped to 88.6 percent in August from 88.7 percent the prior month. The data, which takes into consideration signed contracts but unclosed deals, shows that the numbers are higher when compared to the same period last year, but that’s hardly a consolation since last year’s showing was affected by the expiration of a federal tax credit for homebuyers. Lawrence Yun, NAR chief economist in a press release blamed the numbers on an uneven market.

“The biggest monthly decline was in the Northeast, which was significantly disrupted by Hurricane Irene in the closing weekend of August,” he said. “But broadly speaking, contract signing activity has been holding in a narrow range for many months.” If you are looking to buy, now may be a time to get involved in the market, Paul Dales, senior U.S. economist for Capital Economics, told the Wall Street Journal. But, a lot of people have been unable to cash in on the situation, he said. Some analysts blame the job market and slipping consumer confidence. In these shaky times, many people prefer to rent than invest their savings on a new home.

 According to Realtor mag short sales have increased 33% this year alone.   Short-sale transactions are starting to outpace foreclosure sales, as more banks see it as a better option to curb high losses from foreclosures. More mortgage servicers are also trying to increase the pace of approving short sales, a process that is generally viewed as drawn-out and lengthy.

A Short Sale is a perfect solution for many homeowners who have already missed a mortgage payment or know they inevitably will miss one soon.  In fact, a Short Sale is preferred by lenders as well as homeowners; it’s a win-win for everyone.

Please visit our website  for more information on short sales and foreclosure.  Let The Hightower Team take the stress of selling your home off your shoulders and help you avoid foreclosure.

The window of opportunity is short, so please call us or reply to this email so we can schedule a time to talk one-on-one. 303-325-5020

7724 S Birch

Description

Beautiful 2 story home located on a cul de sac in the prestigious Heritage Green Community.  The seller is doing several upgrades to the property.  Great Opportunity! Contact The Hightower Team Today!

Map View

First, what does it mean to buy a home as-is? It means that you are buying a home exactly in the condition that it appears, and the sellers aren’t making any warranties about the condition of the property. If there are things wrong with the house, from cosmetic damage to major structural issues, they will be the responsibility of the buyer to repair. In other words, as the house’s new owner, its problems are your problems.

Homes that are in foreclosure and short sales are typically sold as-is. In both cases, the seller is taking a loss on the property and understandably doesn’t want to sink more money into making repairs. In the case of foreclosures, the seller (usually a bank) hasn’t lived in the property and isn’t in a position to know everything that’s wrong with the house. Since foreclosures and short sales frequently occur below market value, it’s understood that the buyer will have to repair any issues at his or her own expense, adding to the costs involved when buying a house as-is.

When houses are considered teardowns or are otherwise in poor condition, it is common to present a purchase offer that is as-is. This communicates to the seller that the buyer is going to invest in the house and expects a lower price because they’re willing to assume full responsibility for everything that’s wrong with the house. For the same reason, it is also common to present an as-is offer when bidding well below the asking price, even if the house being sold is in good condition. In these instances, it indicates that the buyer has fewer hang-ups that may prevent a deal from going through. It also means that there won’t be ugly or expensive surprises for the sellers if issues are uncovered during the inspection period.

Just because a home is offered as-is, it doesn’t mean that the seller can lie outright as to the condition of the property. Regardless of the terms of sale, the seller is obligated to disclose any major issues with the house. Even if you purchase a home as-is, a major undisclosed issue can be found to be the responsibility of the seller, provided he or she knew of them prior to sale.

When a house is being offered as-is, there is always concern on the part of prospective buyers that something is wrong with the house. Once your offer to purchase a home as-is has been accepted, it is still essential to have a full inspection and to use your inspection period wisely. With the inspection report in hand, qualified tradesmen or contractors can come to the property to present you with bids to fix the issues that were uncovered. This will let you know exactly how much repairing your new house will cost and allow you to assess the purchase.

Even if your purchase agreement for a home states that you’re buying the home as-is, there is no reason that you can’t go ask the sellers to make repairs. If it’s an older home, you’ll certainly have uncovered things that they failed to disclose and some things that may cause the house to deteriorate if not addressed promptly. Sellers are not obligated to fix these issues. That said, pointing out nicely that they are sticking points in advancing the deal may encourage them to repair a few outstanding issues or provide a credit to you at closing.

Buying a house as-is with right to inspect can be a hornet’s nest, but most contracts are designed with clauses that allow the buyer to exit an agreement if the property proves to be uninhabitable or simply unappealing after the inspection period. Ultimately, this deal type has few drawbacks and can be a useful approach for getting a great deal on a home. Just be sure to budget carefully and consider all the costs involved when buying a house as is.

5038 Cameyo Rd

Wonderful mountain home on 10 acres. spacious eat in kitchen opens to dining room/living room area.  Beautiful wood beam cealings and detail throughout.

Map View

To sell or to rent. It’s a tricky question, especially in a down market. If you are relocating or just ready to move on from your ball and chain of a house, renting might make more sense than selling. Here is a quiz to help you decide whether you should sell or rent your home.

Can You Afford to Sell Your Home?
Here’s an example of a situation where a couple had to examine how affordable it was for them to sell their house. The couple knew they wanted to move to a new home, but they live in an area of Florida where houses have halved in value since the peak in 2006 – the same year their house was purchased. As they debated whether to sell their home, they realized that if they chose to sell, they would be forced to take a $150,000 cash loss, not including closing costs. They looked at the numbers and decided they could not afford to sell their home. For them, it made more sense to rent their home and purchase a second home that then became their primary residence. When you rent, you may take a loss on a monthly basis, but you do not have to come up with the cash to satisfy the loan immediately upon sale. If you sell at a loss, then there is no tax benefit.

Can You Afford to Rent Your Home?
Research the going rents in your market using tools like the MLS listings and craigslist.org. Look for comparable properties in your neighborhood or similar neighborhoods to get sense for what your home might bring in as a rental. It is important to take features like square footage, number of rooms and upgrades such as granite kitchen counter tops, location and proximity to desirable schools into consideration while looking for comps. You can also talk to real estate agents and property managers to get their take on pricing. If it turns out that you can’t cover your mortgage with the projected rent, then calculate how much of a loss you can take to still be able to afford to rent the house.

Do You Need Tax Deductions?
You can often take losses and costs from rental properties as tax deductions. In addition to deducting the cost of your mortgage beyond the rental income, landlords can often deduct all expenses associated with the rental, including property management and maintenance fees. Consult your accountant to ensure that you know what the costs and benefits will be from a tax perspective before you make the decision to rent rather than sell your home.

Can Your Credit Take the Hit of a Short Sale?
If you don’t mind sacrificing your credit score for a few years, you can’t afford to rent and you really need to get out of your house, then a short sale is always an option. A short sale is a real estate transaction in which the bank agrees to accept less than the amount owed on the mortgage to release the owner from their financial obligation. For example, if the mortgage on a home is $200,000 and a buyer makes an offer for $150,000, the bank may accept this offer and forgive the additional debt. Besides mucking up your credit, a short sale can also contribute to your tax bill. Often, the forgiven amount (in this case, $50,000) can be added to your tax bill as taxable income. It is important to consult a lawyer or accountant so that you know the details of how a short sale will impact your taxes and your credit before you move ahead.

Should You Sell or Rent Your Home?
Depending on your immediate financial situation and long-term outlook, it can make more sense to rent rather than sell. In some cases, a short sale is the best remedy for escaping an underwater property and moving on with your life. Before you make any decision about renting or selling, be sure to consult a lawyer or accountant for customized consultation so that you fully understand the tax ramifications and benefits given your unique situation.

When buying a home you’re bound to encounter some things that you don’t know anything about. They are things that outside of the home buying process you won’t ever run into. And since the average homebuyer only goes through this process a few times in his or her lifetime, it’s understandable that these things would be unfamiliar. A couple of items that seem to be perplexing are title insurance and the property survey, specifically how easements are represented.

When purchasing a home with a mortgage you need to get title insurance and a survey. This is required for all financed home purchases. An attorney or title company typically orders property surveys. Though the buyer has to pay for this service they usually don’t need to be directly involved in the process.

What is Title Insurance?

Title insurance is just another line item expense when purchasing your house, paid for one time at closing. Essentially, it is protection for you and your mortgage company that the person selling you the house has full and clear title to the property and was able to legally pass it to you. The title insurance company investigates the ownership of the property and then insures their work. If the seller didn’t rightfully own the home, and someone else does, the mortgage company and the homebuyer are financially protected. Fortunately, issues of title defects are relatively rare, meaning that title insurance isn’t too expensive and really not something to worry about.

What is a Property Survey?

A property survey is a carefully measured drawing that shows the land that is for sale and all structures on the property. It shows how large all the structures are and how far they are from each other and the borders of the property. Most importantly, it shows setbacks and easement lines.

Wait, what? It seems like the property lines and structures should be most important, but they are not. The setbacks and easement restrictions are actually the most critical elements of the survey because those are usually where the biggest problems are found.

What is a Setback?

A setback is the required distance between the house you wish to buy and other property features. For example, a city or county ordinance (or even a homeowners association) may require that homes be set back 20 feet from the road. So even though you own your front yard, you cannot extend your house any closer than 20 feet from the road.

Other setbacks indicate how closely you can build to your property boundaries or to your neighbors’ homes. If you live in an area with natural features like streams or lakes, certain special setbacks may also dictate how close you can build to these structures.

What is an Easement?

Easements refer to property with common usage rights. For example, you may own the land that a sidewalk is on, but anyone can walk on this part of your property.

Why Setbacks and Easement Restrictions Matter

What happens if the survey reveals that part of the house (the actual structure) up for sale sits within a setback or an easement? It’s a problem! In some instances it means that part of the house will need to be torn down before it can lawfully be sold. Otherwise title cannot be passed to a new owner because someone is attempting to sell property that was not built legally.

Surprisingly, this situation is not so uncommon. It may not affect the main domicile on a property, but garden sheds or pool equipment are occasionally located in an area where they don’t have a legal right to be. In these cases your lawyer has some work to do. Hopefully, you’ll discover that the structures are grandfathered because they were erected before certain setbacks were enacted. But definitely investigate these matters fully, as doing future improvements on the property may necessitate that they be corrected in the process.

Spend Some Time With Your Property Survey

For some, the survey process is one of those “check the box” items during home buying. Most get it done and move on. But it’s important to look over everything carefully and ask questions. Surveyors are happy to discuss the survey with you, and errors on surveys can occur. Spending 15 minutes looking this over will save you the headache of having it redone down the road when you want to build or make a change on your property.

The Hightower Team  is a full service real estate team in Denver, Colorado.  We have a passion for the outdoors and for helping people buy or sell their home no matter the situation.  Give us a call, you’ll be glad you did. 303-325-5020

We continue here with a look at wind power for home use, along with sources for further research and information.

Why is wind power important?

Simply put, it’s good for your pocketbook and for the environment. At a time when saving money is on top of everyone’s mind, regardless of an individual’s financial health, opportunities to reduce the cost of basic expenses such as utilities are worth considering. And just as wind is a renewable resource, the savings on wind power are sustainable for the life of your home.

Natural gas power vs. wind power
From a short-term cost perspective, natural gas power, currently at a low price, is the better deal. However, even after considering the expense of installation, a wind power system is the most cost-effective way to go, thanks to a 30 percent tax credit for systems in service before December 31, 2016.

Environmentally speaking, although natural gas is among the cleanest of the fossil fuels, it still releases pollutants. Wind power systems do not, once the manufacturing and installation processes are complete.

In terms of reliability, natural gas power comes out on top. It’s readily available, whereas wind can be intermittent. This takes us to a look at the most ideal circumstances for wind systems to be most effective.

A flat, open expanse makes for the best situation in harnessing wind energy, as tall buildings and close, surrounding homes break wind patterns. In this situation, you have the option of going completely off the grid. In a more developed area, it’s not practical to expect there will be enough wind to run all your energy needs.

Want to see if you live in a region that has powerful winds? Find high-resolution wind maps and estimates of wind resource potential at Wind Powering America.

How does a wind energy system work?
The most common home system involves the use of turbines, which convert the kinetic energy into mechanical power. (Wind turbines/windmills are among the oldest forms of renewable energy, dating back to medieval times!) The kind of turbine you’ll need depends on where you live and how much you plan to use wind as your source for energy.

If you live in a remote area where wind is easy to come by (and height restrictions are less stringent), you have a choice of a rooftop turbine or one that sits on the ground and towers over your home. The latter can go as high as 120 feet!

As noted, living in a developed area isn’t conducive to using wind for all your power needs so a small rooftop turbine should be enough to generate the most feasible amount of energy in that environment.

Learn more about small wind systems for your home through the U.S. Department of Energy’s FAQs.

Where can I find home energy kits?
Save money at the start by doing it yourself! A quick search on the Internet yields a long list of sources for wind energy systems, so finding one will be easy enough. The key to finding the right one is doing some thoughtful research. Whether you make and install your own system or have it done for you, refer to the American Wind Energy Association for some helpful tips first.

In general, alternative home energy installation is the wave of the future. In fact, already there are those who would prefer the word “alternative” no longer be used as “renewable energy” becomes more mainstream.

Converting to renewable energy in an existing home is a major commitment. Be prepared to spend a lot of time on research, looking at the history of your energy use and predicting what it will be in the future. A growing family will gradually need more while empty-nesters may begin to use less. Saving money and “doing good” can only be positive things, but you’ll have to decide if all the work is worth it. We close with some general comments for your consideration.

Is renewable energy for me?
If you’re thinking about transitioning from fossil fuels for your energy needs, whether for financial or environmental reasons, the same considerations apply.

How much do you intend to use it? Where will you put it? (A wind or water turbine is more cumbersome than the nice flat panels of solar power.) What is your budget? What are the local zoning laws? Do you want to do it yourself?

Advantages and disadvantages of renewable sources of energy
First, the good news. The sun will shine and the wind will blow. Generations hence, these natural sources will be in abundant supply. The same can’t be said for fossil fuels.

Renewable sources don’t release toxic chemicals into the atmosphere, making them environmentally sound and safe for all.

While initial costs to transition to renewable energy can be steep, the long-term cost-savings can be substantial. If you start with these alternatives in a new home, the savings are more immediate.

As for the not-so-good news, the main drawback (other than initial costs for existing homes) relates to the first note above. While the sun will shine, there will be cloudy days when not enough sunlight can be harnessed. Likewise, the wind may be, well, less windy. These can be worked around by storing energy during peak conditions, but it will take extra effort and solid planning.

It is a German tradition, they used to use Hedgehogs but when the German settlers came to PA they used groundhogs instead

Groundhog Day is rooted in a German superstition that says if a hibernating animal casts a shadow on Feb 2, winter will last another 6 weeks, if no shadow spring will come early

Punxsutawney was first settled by the Delaware Indians in 1723, the name comes from the Indian name for the location “ponksad-uteney” which means “Town of Sand Flies”

Phil’s full name is Punxsutawney Phil, Seers of Seers, Sage of Sages, Prognosticator of Prognosticators and Weather Prophet Extraordinary, the Punxsutawney Groundhog Club in 1887 declared Punxsutawney to be the weather capital of the world

Phil is 100 years old, he is given a mysterious Groundhog Elixer, which magically lengthens his life for seven years.

Phil lives in a climate-controlled home at the Punxsutawney Library and is taken to Gobbler’s Knob and places in a heated burrow underneath a simulated tree stump and pulled out at 7:25am on Ground Hog Day.

There is only 1 Phil, all others are imposters!