WHEN CAN I BUY A HOME

          So if you have had a foreclosure or short sale or bankruptcy – when can you buy a home? The chart attached from the Realtor Magazine, March 2013 provides some helpful information. All cases are different so this chart is not set in stone. We just closed a couple who short saled their home 2 years ago and they were ready to buy. The key is to re-establish good credit after the incident took place. If the house foreclosure/short sale is the only incident on your credit report, it’s explainable. The same holds true for bankruptcy.

          See attached, but give us a call if you are 2 years removed from your housing crisis. We may have a plan that can get you back into homeownership.

Thanks,

Brian

Click For Short Sale Chart

BETTER HURRY

          Its been awhile but that’s because its busy busy busy…. Prices across town are up to $300,000 and starting to rise and the market is a Sellers’ Market. If you are a seller, get your home on the market before rates go up and more competition. If you are a buyer, you should buy before prices and rates go up.

           Hope to see you soon!!

 Brian

1.      Get Qualified by a licensed professional mortgage lender. This is the first and most important step. A good lender with lots of experience are game changers.
          A.    Pull that credit score, the better the score the better the mortgage
          B.     Run the income to debt ratio to find out what you can pay as payment
          C.     Consider your down payment options thru Conventional, FHA & VA loan programs
          D.    Have some savings
          E.     Don’t buy that car or anything big until you buy your home first

 2.      Choose a Realtor

 3.      Pick an area

 4.      Get insurance-shop rates with reputable firms

 5.      Arrange moving
           A.    Movers
           B.     Utilities
           C.     Food for friends helping.

6.      MOVE IN AND ENJOY!!       

            I hope you like my brief tour of buying a home. Please visit my Facebook (The Brian Maecker Team) or website (www.maecker.com) for more details.

Thanks,

Brian

Dear Friends,

            I hope my letter finds you well and getting used to writing “2012” on everything. We are coming out of 2011 with one of our better years. We closed 173 homes which is right up there with some of our record years. How did we do it? Your REFERRALS were a big part of our success. Over 110 of those transactions were a result of past clients and referrals. THANK YOU!! Your support and trust mean the world to us. I take that very seriously and we do the best we can in every situation.

            The other part of our success is honest straight forward information. The Colorado Springs market has now been on a downslide for 5 years. In 2011 we saw across the board another 5% drop in prices. Foreclosures and short sales remain a constant factor in pricing. They are affecting all price ranges, and all areas. We are battling this everyday as buyers want “Good Deals”. As you can imagine, this is a hard conversation to have with seller clients.

            That said, there is Good News! In 2011 we saw inventory has dropped 24% from 2010. So far through February 2012 that figure is remaining constant. There are a lot less foreclosures and short sales in the market. I still expect there to be a constant supply of these homes for next few years. The other Good News! Interest rates remain VERY LOW! As of today Kevin Bent @ Academy Mortgage quoted 3.75 on 30 year fixed mortgage.

            So what are we doing to succeed in these times? In addition to being straight forward with information, we have embraced technology. My website at www.maecker.com is the hub of all activities. That site is linked with over 60 domain names. We capture leads here and Realtor.com as well as Remax.com. We use 24 hour hotlines that text message my phone, it provides instant information to buyers and notifies me. We blog at coloradospringsblog.net weekly. I provide updates of the real estate market and yep, we also do facebook. Come visit and become a fan of “The Brian Maecker Team” and most important is the lead follow up. This is one area that hasn’t changed-I call and or email ALL LEADS.

            What’s 2012 market going to do? Recover. I think the bottom is here right now, except for the high end market. I see stabilization. I see some improvement in lower and middle priced homes. I see interest rates remaining low into the summer. I think our city is on the mend as long as we keep all our military here and employed. We do need more higher paying jobs to help the high end market.

            I am here to serve your Real Estate needs. I’m in my 26^th year and have sold over 4000 homes. Let me know if I can help you or your friends. I REALLY APPRECIATE YOUR LOYALTY AND YOUR REFERRALS!!

Thanks,

Brian

Below is a letter from my great insurance agent E.J. Nusbaum of State Farm Insurance.

You will see below that roofs are now a major concern when purchasing or selling. Please call us if you have questions. Our number is 719-593-2963 and E.J.’s number is 719-597-5100.

Thanks,

Brian

Subject:  T- Lock Shingles      

Situation:

T-lock shingles are no longer being manufactured and the inventory of these shingles has been depleted.  Therefore, if a T-lock shingle roof is damaged, the entire roof will need to be replaced.  This situation has increased risk for insurance companies.  When roofers could get T-lock shingles, it was possible to repair a roof that was slightly damaged or only damaged on one slope.  Now, any damage, no matter how slight necessitates an entire replacement.

Because of the increased risk, insurance companies have reacted in various ways.  Some companies will not insure a home with T-lock shingles.  Others require a higher deductible when insuring a home with T-lock shingles.  Others are insuring the home, but modifying the coverage so that a roof loss is paid for using an “Actual Cash Value” (ACV) calculation.  An ACV calculation works as follows:

Full cost of replacing a roof:  $10,000

Age of roof at claim time:  6 Years

Life of roof:  20 years (determined at time of claim)

Policy Deductible: $1000

Calculation:

$10,000 x 14(Average life-age)/20 (Average life) = $7,000 – 1000 (deductible) =$6,000 Payment

This is $3000 less than a replacement cost claim

Recommendations:

Listings-If you have the opportunity to list a home that has a T-lock roof, it would be a good idea to have a qualified roofer inspect the roof to determine if there is any damage.  If the damage was caused by an insured peril, the current homeowner should be able to get the roof replaced.

Purchases-If you have the opportunity to assist a client that is buying a home with T-lock shingles, it would be a good idea to 1)have the roof inspected immediately and 2)have the buyer discuss the roof with their insurance carrier so that they will know how the insurance company will handle the T-lock roof.

This is a brief example of some of the coverages limitations.   It is not a recommendation of coverage.  All coverages are subject to the terms and conditions contained in the policy and endorsements.  Each situation is fact dependant and all parties should get individual counsel from their professional advisors for their specific situation.

Did you know that home affordability is down to 2004 levels? Yes, today’s prices are in line with values that were before the “bubble”. This data and statement are supported by the Wall Street Journal on Feb. 9, 2011. In the Colorado Springs area as well as most of the country we have dropped 15-20% from the peaks of 2008.

            In the years from 2004-2008 the only thing driving the market was “funny money” you know the creative financing. Today remains a great time to buy as interest rates remain around 5%

            So why aren’t more people out here buying a home? Are you thinking values will continue to fall? Let’s look at this. One other fact that needs to be introduced is that interest rates will go up. So let’s look at why “NOW” is a good time. For example today a $200,000 loan @ 5% is a $1074.00 a month payment principal and interest. Let’s assume prices drop another 5% and rates go up to 6%. So a $190,000 loan @ 6% = $1139.00 a month. See what I mean!

            The solution is offer and hope to get the 5% price savings now and get the good rates. A $190,000 loan at 5% = $1020.00 per month. Sellers are anxious to make this work. They will also help with closing cost.

            Call us at the Brian Maecker Team and we will show you how to take advantage of this market.

Thanks,

Brian

This week’s blog is courtesy of the Wall Street Journal’s Brett Arends. Below is his article on 10 Reasons to Buy a Home.