There are a few indicators showing improvement in the outlook for the real estate market over the next 6-18 months. Mortgage interest rates are at a 50-year low, and according to industry analysts, should stay low in the coming months. The Fed’s rate-setting Federal Open Market Committee did the inevitable this week and kept its target for the federal funds rate unchanged, at a range of zero percent to 0.25 percent. As a result, the prime rate remains 3.25 percent. That means interest rates will stay unchanged for consumer debt that is pegged to the prime rate, including home equity lines of credit and some credit cards. On top of that, the Fed will more than double its purchases of mortgage-backed securities. That should put a ceiling on the 30-year fixed mortgage rate, which has been below 6 percent all year and could conceivably park itself below 5.5 percent for months to come.

A general improvement in the credit climate overall would help, and the government could also step in by having the federal reserve buy jumbo loans. it looks like Summit County might avoid some of the worst impacts seen in Pitkin County. The Aspen Times reported that there is a “potential sea of unbuilt or half-built buildings” at Snowmass Village, where developers suspended work, citing an inability to secure financing. Construction on the partially built Little Nell Residences Snowmass stopped last week for the same reason, according to The Aspen Times.

Some sellers are approaching the market with a positive attitude, realizing that they may not get quite as much as they would have a year ago, but that they are still getting a good return on their initial investment.

First of all the national mortgage mess means higher mortgage interest rates to all home borrowers here and nation wide. Losses accumulated from those home owners who are not or have not paid the mortgage for which they are responsible have to be offset from other sources. Some of those losses will be made up with higher mortgage rates from quality borrowers. Some of the losses will be made up once the homes in foreclosure are sold, and hopefully sold for amounts equal too or more than the amount owed on them. And finally some of the losses will be written off as bad uncollectible debt by the mortgage investors.

So now that we all understand that a few bad apples did spoil the bunch where do we go from here?

Currently the few national mortgage investors that still have their doors open and wanting new business have tightened up the lending guidelines. Just a few short six months ago if you had average credit scores you could borrow the entire purchase price of a home. Now you will be expected to actually make a down payment of five to ten percent of the purchase price.

In addition to higher rates and higher down payments the short term Adjustable Rate Mortgages that historically had lower interest rates now have higher rates than conventional thirty year fixed rate mortgage. This hurts those who planned to invest in second homes or rental properties as they now have to borrow purchase funds at a higher rate and to offset the higher payments they charge higher rents.

Another happening that is just starting is the rise in the conventional loan limits for conforming loans. It was recently limited at $417,000.00 and now Fannie Mae and Freddie Mac, along with FHA, are allowing non jumbo loans to $729,750.00. This means that higher jumbo rates start at that new higher limit.

By raising the conforming limit, which currently expires at the end of this calendar year, mortgage investors may sell those mortgages as meeting Fannie and Freddie guidelines. As of today, a very few investors have changed their internal conforming limits to that higher amount. And in talking to one national lender earlier today I was told that it is causing a problem as their investors have not accepted the new higher limit.

To compound this fact not every locale in the country will have the higher limit. So if you buy a home in Summit, Eagle or Pitkin counties the limit is $729,750.00. If you buy in Park or Grand County your limit is still $417,000.00.

Now after all of this, and with the changes in the mortgage marketplace that are occurring on what seems to be a hourly basis I suggest that you contact your friendly neighborhood mortgage professional to learn how it all effects you. Get the correct information directly from the head of the horse and you will not end up being the other end of that horse.

REAL ESTATE RESOURCE.

If you would like additional information about real estate in Breckenridge Colorado as well as anywhere in Summit County Colorado contact us at 1-800-791-3990 ext 421.

Jeffery McClintock is a real estate broker in Summit County and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions.

Jeffery has been a licensed Realtor since 1995. During this time he has successfully closed over 135 million dollars of residential real estate, and 40 million dollars in un-improved land amounting to 660 real estate transactions. His professional experience includes the Denver Colorado front range and the Second Home market in Breckenridge, Colorado located in Summit County.

Mortgage rates followed other interest rates lower this week, with the average 30 year fixed rate mortgage now at the lowest level in almost four years. Freddie Mac’s weekly report says 30-year fixed rate mortgages averaged 5.48 percent this week, down from 5.69 percent last week. It is the fourth consecutive week mortgage rates have declined.

While real estate is always a wise investment, Breckenridge real estate is a brilliant one. Breckenridge has been growing in leaps and bounds, and with the completion of the newest lift and lodging at the resort, Breckenridge will continue to be an international destination. The newest gondola has completed all connections for the four peaks that make up the ski area, catapulting Breckenridge further into the world-wide spotlight for its outstanding winter sports.

As the population and tourism increases in Summit County, it will outpace the national averages. This means that Breckenridge, as well as its real estate value, will be growing faster than the rest of the country. Land in Breckenridge has become increasingly more valuable, more quickly. It’s as simple as that.

Breckenridge has four mountains with terrain for any ability level and one 140-year-old Victorian town with shopping and dining for every taste–just think great snow, rich history, and vibrant nightlife.
Here are some things to keep in mind if your planning a day on the slopes.

Colorado Ski Condition Report

Rental Resource
A FREE Colorado Rental Property Resource for both landlords and tenants can be found at http://www.coloradorentalproperty.net . Online land lords can post detailed information regarding their rental property, including 5 color photos. The ad can be self directed by the landlord to their cell phone or property management company. This is a service provided FREE by RealEstateColorado.Net and the ad will remain on line until it is asked to be removed.

REAL ESTATE RESOURCE

If you would like additional information about real estate in Breckenridge Colorado as well as anywhere in Summit County Colorado contact us at 1-800-791-3990 ext 421.

Jeffery McClintock is a real estate broker in Summit County and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions.

Jeffery has been a licensed Realtor since 1995. During this time he has successfully closed over 135 million dollars of residential real estate, and 40 million dollars in un-improved land amounting to 660 real estate transactions. His professional experience includes the Denver Colorado front range and the Second Home market in Breckenridge, Colorado located in Summit County.

I have been a licensed Realtor since 1995. During this time I have successfully closed over 135 million dollars of residential real estate, and 40 million dollars in un-improved land amounting to 660 real estate transactions. My professional experience includes the Denver Colorado front range and the Second Home market in Breckenridge, Colorado located in Summit County.

Eight percent of people now go on-line to start their home search, (NAR). If your going to sell your home make sure the agent has a real estate website he or she can feature your home in that is ranked in the top 5 in Google, MSN and Yahoo in the organic search term results and most importantly in the same market your home is located in. For example your home is located in the Denver Colorado market. Make sure the website is ranked as I’ve described for search terms Denver Colorado Real Estate or Denver Colorado Homes. You would think Denver would be enough but there are over 7 cities named Denver located throughout the United States. If they are not ranked in the top 5, the benefit of your home being featured on their website will be virtually non-existent. Most pay per click sites are irrelevant and lack content. Here today gone from the search position tomorrow. Thats why the search engines don’t give them a high organic ranked placement. They suck!

Relocation companies have outlived their usefulness. The internet can put you in touch with experienced Realtors in just about any area imaginable. How better to decide if a particular Realtor is the right one for you, then you! Financial incentives to you offered by a “relocation company or corporate buyout”, usually come back to you in the form of poor service, working with inexperienced agents and at a cost of thousands to you. The number of years a person has a real estate license is not the standard you should use to determine if they are qualified to work with or not but the number of transactions and sales volume. The average Realtor sells between 12-15 homes a year. The majority sell between 6-8.

Relocation companies get their money to offer these so called “deals” buy getting into the pockets of agents they refer you too. High quality agents will refuse to play the game. This is because after they invest their time and resources to help you, split with their broker, pay taxes and pay a relocation company financially, it is a “bad” business decision for an agent to get involved in. All the relocation company does is search the internet for a agent in your area or the intended area your considering to move, call up the agent and procure a referral agreement before sharing information about you to them or visa versa. Some even try to control the sales process placing the brokerage firm in a legally compromising position.

With the amount of information available to you on the internet these days. Relocation companies are a thing of the past and have worn out their true usefulness. If you decide to work with a Relocation company, Interview several real estate agents before selecting the one for you. It is important to meet with at least three. Don’t feel obligated to accept the one that an agency assigns to you. All Realtors have access to the same resources. They are required to use the same State real estate approved forms. What varies and can make a huge difference in both the overall experience of the transaction and the introduction of quality of homes that fit your needs and your budget, is the level of service they deliver, and the overall knowledge gained through experience. Again the amount of transactions and sales volume closed is the method of measurement you should go by, not years “in the business”.

Many people interview agents to list their home for sale but never consider interviewing them to help them look for a new home. Both endeavors are equally important. The agent that “sold you the house” may not be the best agent to “sell your house”. Having an increased knowledge and skill of a particular area does not in itself make you a “marketing genius”. Most agents either work primarily with one of the other. Only a few really get it and can do both equally well.

Don’t ask your agent for predictions. Like any commodity that is bought and sold real estate market will fluctuate, no one can predict what will happen during the buying and selling process.

Flipping real estate is great, but be sure to hire an agent with house-flipping experience. I’ll say it again at the risk of irritating our readers. Experience should be defined as “the amount of transactions and sales volume closed by the agent as the method of measurement” you should go by, not years, “in the business”. Be careful with buzz words like Foreclosure Expert, Investment Expert, First Time Buyer Expert and Relocation Expert or Nostalgic Home Expert.

Despite conventional wisdom, the smell of baking cookies does not make a home more appealing to potential buyers. To enhance the chances of selling a home, ensure that the home always looks and smells good, and is well-lit inside and out, clean and offers an organized appearance.

Arranging an open house to attract potential buyers doesn’t necessarily work. Nosy neighbors and real estate agents will be attracted to the event but not serious buyers. There is two reasons home sell. Price and Exposure. Thats it! You can throw all the marketing at the wall you want but if people don’t see value in what your asking therm to pay, the home will sit on the market. If you are within 3% of where the market indicates you really need to be priced you should have an offer within 12-15 showings. Not Realtor previews, open house attendees but qualified buyers through the door. If you don’t, you know the marketing is working and the problem is price. Only make pricing adjustments by 2-3%. Then sit tight and wait for another 12-15 buyers to walk through the door before you make another price adjustment. If you follow this strategy you will find the top of your market in what ever market condition that exists.

Never price your home based on what everyone else is asking. Use like kind property that have sold within the past 3-4 months to determine market value. Websites like housevalues.com or zillow.com are very in accurate. They do not take into account the proper appraisal standards which can vary from one geographic location to another. They just can’t develop a cost effective website that can truly do a good job. Rely only an experienced local Realtor and or Appraiser for the this type of information.

Resource
A Colorado Rental Property Resource for both landlords and tenants can be found at http://www.coloradorentalproperty.net . Online land lords can post detailed information regarding their rental property, including 5 color photos. The ad can be self directed by the landlord to their cell phone or property management company. This is a service provided FREE by RealEstateColorado.Net and the ad will remain on line until it is asked to be removed.