American Sunrise Communities will be holding a conference for “income-limited” potential home buyers in Northeast Denver on February 7th, 2009 from 10am to 2pm. ASC is a “tax-exempt 501(c)(3) not-for-profit organization that unites private builders, community lenders, public institutions, major employers, labor organizations and non-profit community groups to provide genuine affordable housing opportunities for income-limited Americans throughout the United States.”
Why might you be interested? The conference will be providing information about Stapleton’s 29th Drive Row Homes. These 1 – 3 bedroom units are currently priced from $113,800 to $169,400 (subject to change). Now that you’re paying attention let me mention the income requirements. Singles making less than $40k a year, couples less than $46k, or families of 5 making less than $62k qualify for this (and other) “income-limited” affordable housing.
Again, for those inteterested, the conference will be held in the Northfield Denver Improv Theatre located at 8246 E. 49th Ave, across from the Borders Bookstore. Registration is required and space is limited. Enjoy.
HUD stands for Housing and Urban Development which is a part of the United States Federal government (currently overseen by Alphonso Jackson (and to transition to Shaun Donovan in January, 2009), who sits on the President’s Cabinet). HUD homes are government owned properties that are for sale by the government using a bidding system outside of the standard buyer/seller multiple listing service (or MLS).
The government acquires many of these properties through foreclosures on loans that they guaranteed through the Federal Housing Authority (FHA). In times when foreclosures continue at reasonable levels, these properties tend to have significant wear and tear, and many times, significant damage. In our current market, foreclosures levels are unusually high, and the condition of some foreclosures can be much better than typical. In the bidding process for HUD homes, your licensed Real Estate Agent submits a price bid to HUD for a property. After the bid-acceptance deadline (varies by property) your agent will be notified via email if your bid was accepted. If your bid is accepted, you will close on your new HUD home 45 days later.
One major difference between buying HUD vs. buying on the “open market” or bank-owned home is that HUD requires you to already have funding prior to submitting a bid. This means you need more than a pre-qualification letter from a lender, you need an approved loan from a lender and documation of available funds. Also, if you have to extend your closing date for any reason, you will be fined a significant amount of money (currently $375 for each 15 day increment). Another difference is the way closing fees are typically split between buyer and seller in a normal transaction. When buying a HUD home, who pays the closing fees is not negotiated, and of course, the buyer pays for all of them. It may seem obvious, but just to be clear, all HUD purchases are bought “as is.” While you can inspect to heart’s content, the government orders (and pays for) an appraisal and an inspection, and discloses those to you through your agent. They don’t make repairs for you.
For more information, check out the HUD website. The HUD website has a pretty good FAQ on buying HUD homes here.
What a busy summer. Not too busy to check out a farmers’ market. I went looking for times and found Nina Davidson’s About.com guide a good starting place: Top Five Farmers’ Markets in Denver. Of course we like number 3 (as it’s short bike ride away from our home), although number 2 isn’t a long drive either and is close to Tattered Cover for a little book time.
I offically declare 2008 the year of the first time home buyer in Denver. Is this too bold? Perhaps, but maybe it’s not that contraversial of a statement anyway. I was watching a Real Estate broadcast about depreciation risk, and reflecting on who it most impacted. I looked up the three month old article to remind myself the details from the original report. I think this year (and probably next year) will be a great buyer’s market for new home buyers as well as rental property investors. For many lenders, first time home buyers are defined as someone who has not owned a home for the last three years (aka: one can be a “first time” buyer more than once). The advantages afforded first timers typically come from government insured programs (FHA) and attractive lender mortgage products (material for a future post I suspect). Of course the few people who need to move from a strong market to a weaker market will also benefit from the buyer’s market, but that is always true by definition. All that to say, I think right now Denver is a great place to own a home, and renters who can make the leap into home ownership should seriously consider this year a the time to jump. For a national perspective (which says “it depends on local factors”) see the Wall Street Journal’s recent article.
A “buyer’s market” favors individuals and companies that are buying real estate. This is caused by an excess of supply over demand. The “market” refers to a local real estate environment (a city, town, neighborhood). This is not to say that state-wide and national factors don’t impact local markets, but it does mean that local factors (job markets, local economies, crime rates, education oportunities, etc) will almost always trump national factors. So a “buyer’s market” implies that it is a good time to have access to money in order to purchase real estate. The implications of a “buyer’s market” on buying and selling are foder for many future posts, but some signs would look familar to us right now. Signs of a buyer’s market include higher than average for-sale inventory (homes actively for sale), a list-to-sell average dipping well below 100% (homes are consistantly being sold for less than the sellers are initially asking), and days-on-market averages (time a home has been for sale) rise beyond the three month mark (my own line in the sand).
A “seller’s market” would be the oposite. When inventories are low and demand is high. When it is uncommon for property to be sold without a bidding war between multiple possible buyers, it is a strong seller market. More commonly, a seller market looks like flat or decreasing inventory levels, prices increase, and appropriately-priced houses moving off the market quickly.
NPR had an All Things Considered episode that was really good today. What happens when you buy a really old house and decide to make it the picture of the environmental movement? Major renovation becomes a massive understatement. Can synthetic materials suppport “green ends”? When is plastic your friend? Stay tunned for these an more riddles, same bat time, same bat channel.
I have been enjoying www.denverinfill.com and its blog. Talking to some comercial real estate friends, they tell me the author has really made a name for himself, and it’s clear why. It’s fascinating to see all the plans for buildings that might fill in our skyline. I have to admit, I find this post particularly humorous.
I enjoyed reading the post on Lighter Footstep on ten ways to lighten your impact on the planet. It’s kind of a first things first approach that puts personal ecological improvement within reach. I confess, I was pointed to the article by the Organized Home blog which I frequently enjoy. Surprisingly, of the ten first ways to lessen your eco-load, only one duplicated my article on five ways to start green in your new home (the CFL light bulbs). It seems quite possible a Spring cleaning list of twenty five or thirty ecologically savvy once a year things could be a great resource. Anyone seen a good one of these? Let us know.
State Senate Bill 187 would require Carbon Monoxide Detectors in all homes sold after July 1st! Not just new homes, but any home sold. Apartently from the 9news article I read, the bill has just been brought out of committee, which means it has several steps before becoming state law. As far as I can tell, the biggest impact of the bill is found in this clause (skip ahead if you want my “transalation”):
NOT WITHSTANDING ANY OTHER PROVISION OF LAW, EVERY EXISTING SINGLE-FAMILY DWELLING OFFERED FOR SALE OR TRANSFER ON OR AFTER JULY 1, 2008, THAT HAS A FUEL-BURNING HEATER OR APPLIANCE, A FIREPLACE, OR AN ATTACHED GARAGE SHALL HAVE AN OPERATIONAL CARBON MONOXIDE ALARM INSTALLED WITHIN TEN FEET OFTHE ENTRANCE TO EACH ROOM LAWFULLY USED FOR SLEEPING PURPOSES.
My translation (remember, I’m not a lawyer or legislator): Assuming there is not a more stingent law, this law would require all future homes sold in Denver (since all homes in Denver have some method for heating), to include Carbon Monoxide Alarms to be installed properly (within 10 feet) of all bedrooms. Read more »
After seeing a great article in the local Greater Park Hill News, I checked into the state’s foreclosure prevention campaign. Apparently run by the Colorado Housing Counceling Coalition, the primary support they are providing is a toll-free hot-line (1-877-601-4673) that connects concerned homeowners with free counseling to help them avoid foreclosure. They even have a video on youtube.
The content is pretty good, although the ending is a little dramatized. I’m sure it’s not far off in terms of the sentiments expressed, but isn’t up for any academy awards either. That said, I’ve included the video below if you’re interested. They have three positive options as examples, and the final example is someone who did not get help and lost their home to foreclosure. The positive scenarios end with a pre-foreclosure sale, a negotiated repayment plan, and a morgage refinance. Enjoy the video! (8 minutes long)
