No matter how much you love or hate your job, you don’t want the day to come when your employer says “good bye” and slams the door in your face.  While the 7% unemployment rate in Denver is lower than elsewhere, these forced departures still happen all too often. If you’re a Denver home owner with a mortgage, loss of your major household income can throw you into a panic about how to pay the mortgage.  Even if you qualify for unemployment, that is hardly enough to pay the house payment, much less take care of all your other needs. 

Financial analysts always say that you should have three – six months of income in the bank, but most people living paycheck to paycheck are virtually a check away from homelessness.  Even if you have reserves like that, it takes people longer to find jobs these days so eventually you may have to confront the issue of how to keep the house in the absence of a regular income.

When your income drops, you need to develop a quick plan, if you don’t already have one.  All creditors feel they come first, but in reality, you need to pay your mortgage, insurance, utilities, and other necessities like food, followed by your car note, then your loans and credit cards.  If you have no reserves, obviously you will have to modify the list.

That brings up an issue that people usually consider last.  Do you want to keep the house?  Selling it may be a viable option, especially if being off work has made you evaluate whether you really need to maintain your former lifestyle.  This may be a challenging time to sell, but is still worth considering.  If you owe more on your loan than the value of your home, you may need to consider selling it as a short sale, where the bank agrees to accept less than the loan value as payment in full.  For this, you should consult an agent who specializes in selling distressed property, as selling short sales presents special challenges.  In any case, while you are off, this is a good time to do the projects that would be needed to get the home ready to sell if you decided to do so.  Times where no income is coming in may not be the time to consider a high budget project, but decluttering and painting take more time (which you have) than money (which you don’t.)

Assuming you want to keep the house, you need help and you need to help yourself.  First step - you need to contact your lender or an outside housing counselor who will do this for you. Your lender may be able to help you if you contact them early.  If you do this, you may qualify for some help in the form of reduced payments, forbearance (where you don’t have to pay for a short time), or a loan modification. 

For some of these plans to work, you need some income.  This may mean that you accept a job that pays less than what you were making but is enough to cover the house payment and your other basic expenses.  There is no point of jumping through all the hoops to get a loan modified if you will default in a few months because the payment is still too high for you.

The difficult thing is that lenders say they want to work with customers, but many distressed borrowers report that they can’t reach them, don’t hear back from them, or wait forever, only to be told that they don’t qualify or that they should apply to the Federal program. This is why it is often a good idea to talk with a HUD-approved counselor who might be able to get in touch with your lender or at least help you explore other resources before foreclosure looms.

At Bandy Homes, where Marianne Bandy is a Certified Distressed Property Expert, we can help you decide what the best course of action is if you are having trouble making your house payments.  Foreclosure does not have to be an option for you if you act quickly.  We can also assist you with buying or selling your home whether it’s in Denver itself or Littleton, Centennial, Parker, or anywhere else in the Denver metro area.

Marinane Bandy

Looking for a Mountain View Home?

Now that fall is here, many Denver-area homeowners decide it’s a great time to plant a tree or do some project that involves digging in the yard.  Perhaps it’s running an electrical line out to your detached garage or installing a fence.  This economical do-it-yourself project could be a costly venture if you dig without considering what could be buried beneath your lawn. 

Telephone, gas, and electrical lines are the most likely hidden dangers; striking one of these lines can knock out service to the home (yours and the neighbor’s), result in a leak, or even cause a fire or death if an electrical wire is severed.  Often, these lines were buried long before you moved in, so you do not know the location or how deep the wires are buried.  It is estimated by Common Ground Alliance, a group concerned about underground wire safety, that Americans strike underground utility lines once a minute.  Fortunately, homeowners and the professionals they hire can prevent service disruptions (and worse) by calling their utility companies before digging.  It’s actually a law that you must call.  There’s even a national call-before you dig number 811 that maintains 62 call centers throughout the United States and DC to dispatch someone to come out within two days and mark the location of lines with spray paint.  If you hit a line, you get a bill!

Call 811 can’t help with hidden lines for systems installed after the home was built. If your yard has an automatic sprinkler system, for example, there is very likely a grid of PVC pipes buried a few inches below the surface.  Experts suggest you find the main water supply pipe and then carefully dig up the area around where pipes might be hidden before digging any deeper (or with any power tools!)  Hitting a water delivery line will not kill you like slicing a power line might – but repairs are messy, time consuming, and potentially expensive.  Similarly, if you have landscape lighting along the driveway or wiring that leads to a lighted outbuilding, dig cautiously!  Better yet, call a professional who can scope out the area for any hidden lines.

Especially in older neighborhoods, oil tanks or even gas or chemical tanks could lurk below the surface and leak remnants of fuel or chemicals into the soil.  If you suspect there may be an old tank in the yard, you should call the local EPA for directions on how to remove, test, or officially abandon the tank before digging.   Click here for a fuller discussion of how to deal with an old tank.  Your attempt to plant a tree could cost thousands in environmental damage if you hit a tank.

If you’re thinking of buying a home in Denver or a neighboring community like Parker or Highlands Ranch, the pros at Bandy Homes can help you find your next home quickly and easily.  We even offer free buyer reports with tips for buying a home with no unpleasant surprises.

Marianne Bandy

Local Denver Resources

Who would have thought that the nearness of your Denver home to shops, grocery stores, schools, and parks would make your home more valuable?  In this “green” conscious age, “walkability” is an asset as it reduces the dependence on cars, impacts global warming, and promotes healthy living.  According to a recent study of 94,000 real estate transactions in 15 U.S. cities, homes in close proximity to social and shopping amenities sold for $3,000 - $34,000 more.

The study, Walking the Walk: How Walkability Raises Housing Values in U.S. Cities, conducted by CEOs for Cities, used the Walk Score concept developed by Sightline Industry, to analyze transactions by a large real estate company. What makes an area walkable?  According to the Sightline Institute, a walk-friendly area has these characteristics:

·         There is a center like a “main street” where businesses are clustered.

·         The businesses are close enough to the street to encourage people to walk into directly, in contrast to entering from the parking lot.

·         Population density in the area should be substantial enough for local businesses to flourish and for public transportation to run frequently. 

·         The area should featured mixed-use housing for residents of different income levels that is near workplaces, schools, and other popular destinations.  

·         The streets should be handicapped accessible

·         The city should be built on a grid to allow easy access to different locations from several direction by car or on foot. 

·         Streets should feature pedestrian medians, protected bus shelters, and bike paths.

Walkability scores are determined by how accessible services are; any amenity within .25 miles is considered walkable until it is one mile away.  The composite scores are organized on a 100 point scale.  The Walking the Walk study also considered home size, the number of bathrooms and bedrooms, age, neighborhood income levels, distance from the Central Business District and access to jobs in the calculation.  They found that a one point increase in the walk score increased the home’s value by $500 to $3,000.

Though Denver was not among the 15 cities studied, it did appear on a Brookings Institute report of the Ten Most Walkable Cities, as it offers an average of five walkable places per person.  The walkability of Denver as a whole has walkability score of 66, but within the city, some neighborhoods score in the high 90’s: Lodo - 97; Golden Triangle – 96; Capitol Hill – 93; and Cherry Creek – 90.  These Denver areas are considered Walkers' Paradises, but the whole area fares well as 43% of Denver residents have a Walk Score of 70 or above, 81% have a Walk Score of at least 50, and only 19% live in Car-Dependent neighborhoods.  (Click to see an interactive map of the Walk Score for Denver neighborhoods.)

The walkability for a particular address can be obtained by entering the exact address at www.walkscore.com.  Homes in one development laid out over 10 acres would have different walk scores according to where they were located.  Based on the Walking the Walk study, a home nearer to the entrance to the development would sell for more than a home a mile or two from the entrance.  Homes on winding streets with big lots will probably score lower than housing units that are close together.

The walk score of a property is only one consideration when you are buying a home.  The pros at Bandy Homes will help you consider –all the factors effecting values homes in Cherry Creek or any of the the communities in the city of Denver or its suburbs like Parker (Walk Score 91), or Castle Rock (83).

The beauty of the area alone might compel you to buy a home in greater Denver, but recent market statistics underscore that you will be making a sound investment as well as getting a great view!  Denver real estate has generally fared better than it has elsewhere over the last year or so, but a number of signs in the market indicate sustainable economic recovery. 

·         Housing inventory is falling.  In fact, the current active single family and condominium inventory of 20,850 is the lowest October inventory in more than 5 years. This inventory drop is a good sign that the market is coming more into equilibrium and is positive for prices.

 ·        The average number of days on the market has fallen for both single family homes and condos.  Currently, single family homes remain on the market 94 days and sell for an average of $273,972.  Condos are on the market 98 days and sell for an average of $167,090.

·         The average list to sale price in Denver is 96.8% of current list price.  (Previous price reductions may have been made.)  A big difference in the selling and asking price means that the market is out of balance.  Now signs are that the “buyer’s market” of the last couple years is giving way to a more balanced market, especially in home priced under $250,000.

·         Though number of properties sold between August & September decreased by 1.4%, this is much less than the 3-5% reduction seen in prior years for the same month.

These figures are encouraging to both buyers and sellers.  Buyers, spurred on by the $8,000 first time homebuyers tax credit, have bought up much of the current inventory in their typical price range.  Homeowners who were reluctant to try to sell their homes in anticipation of having a long wait time to sell for a reduced price may now have incentive to put them on the market and move up.  There is talk in Washington that the tax credit may be renewed and/or expanded, which would continue to sustain buyer interest.

For more insight into these numbers, contact Bandy Homes today.  We can show you homes with breathtaking mountain views in Denver great family homes in Castle Rock,  or trendy urban townhomes in downtown Denver.

Marianne Bandy

Consider Relocating to Denver

If you are a first time homebuyer thinking about  buying a new home in the Denver area this fall, you face a couple of interesting challenges. 

The most obvious is the $8,000 tax credit, which has brought 1.2 million buyers in the market, according to the National Association of Realtors.  That is expiring soon. Unless you have a deal in progress, it is almost too late to use the credit if you want to have your sale closed by the November 30 deadline.  Now, after months of talking about extending the credit, there is serious discussion underway that may result in an extension.  (On October 13, the House already approved an extension for military personnel who served abroad for 90 days in 2009.)  If the credit really is what makes the difference for you, your decision is whether to start the process now, with the extension uncertain.

The second issue is more of a concern.  If you are like most first time buyers, you are likely to be shopping for a home priced more towards the lower end of the spectrum – typically $200,000 or less.  Because of the rush of buyers, the number of homes in this price range have decreased. 

Actually, local housing stock has decreased; of 20,225 homes on the market in August, 2009, 19,834 remain)– compared to 23, 923 units last September.)  In September, sales also declined 9.8% since September 2008 and 1.05% since August 2009.  The decline may reflect the usual September slowdown, as families tend to align their moves with the school year, now in full blast.

Prices, meanwhile, are moving up.  On single family homes, the average sold price of $274, 433 is 5.5% higher than last year.  The median price of $225,000, which does not reflect the highest and lowest prices, is 4.09% higher than in September 2008 when it was $216,500.  Meanwhile, condos sold with an average price of $168,288 and a median price of $145,000 in September, up 3.65%.  All this means that “move-up” buyers, perhaps buying their next home, are starting to get active too.  Sales in the price range often sought by this group - $200,000 to $300,000 – have increased.

This state of affairs may put you out of the running as a first time homebuyer right now, if the prices of available homes are more than you can pay!  You obviously don’t want to get in over your head. 

In either case, this is a great time to call Bandy Homes, where we are committed to finding you an affordable home.  We will, first of all, discuss your options and, perhaps, bring in our lending partner to see if one of the options they have available would make home buying feasible for you at this time.  We will also show you appropriate homes that meet your needs in Aurora, Centennial, and other fine communities in the Denver Metro area.

Not only has Federal Reserve Chairman Bernake said the recession is “very likely over” in the U.S. but local Denver economist Richard Wobbekind recently predicted that Colorado will rebound quickly.  At a gathering of clients of a local financial planning firm, University of Colorado economist Wobbekind offered a few predictors that showed why Colorado is likely to emerge ahead of other states:

·         Business and technology spending, which recover more quickly than consumer spending is expected to increase in the state

·         Higher commodity and energy prices will help the state, especially in rural areas

·         Retail sales, after a 10% fall, are expected to increase 4.4% next year

·         Job growth, negative this year, is expected to be slightly (.4%)  positive next year

The best news of all from Wobbekind is that he expects that the recovery will stick, so Colorado does not slip backwards into a second phase of recession.

What does this mean to the average citizen of Denver, who perhaps is hoping to buy a home in the metro Denver area? Wobbekind does not include anything about the real estate market but Colorado did not experience the roller coaster ride in the real estate market as other states did.  Recent sales figures for Denver homes show a median price of $225,000 for single family homes and $145,000 for condominiums.

Critics of Wobbekind’s forecast are quick to mention that recent government spending may have artificially propped up the economy and made recovery seem closer than it is.  Proponents of this “what-goes-up-must-come-down” theory claim that the next descent could be worse than the first.  This type of thinking, though, discounts the role of consumer confidence in propping up the economy.

Homebuyers who buy appropriate homes for their needs and their budgets can make a move in confidence.  The new home may be smaller, more energy efficient, or be closer to work and provide savings to offset some of the increase in payment.  These days, no one should go into real estate in anticipation that they will make a killing; the fact remains that over the long term, real estate usually provides a decent return in addition to comfortable shelter for the family plus a myriad of intangible returns.

Considering buying an affordable Denver home?  The pros at Bandy Homes will show you appropriate properties you’ll love to own in Denver, Parker, Castle Rock, Aurora, and the whole Denver metro area.

Marianne Bandy

Outstanding Denver Schools

(Thanks to Callie Hamblin of Aurora for submitting this blog idea)

Aurora, CO recently washed out the competition to win the award for best tasting water in the Rocky Mountain Section of the American Water Works Association’s taste test.  The competition was open to AWA members in Colorado, New Mexico, and Wyoming.  A five judge panel composed of news media representatives and water taste test professionals chose Aurora water over that of Denver, Centennial, and out of state competitors and concluded that it had the best appearance, smell, taste and overall impression.  In June, 2010, Aurora will represent the Rocky Mountain Section of the AWA in Chicago at the Association’s AWWA Annual Conference and Exposition (ACE) “Best of the Best” Taste Test.

Aurora water meets and exceeds state and federal regulations and has always complied with the Safe Drinking Water Act.  The fact that the water also has a superior taste is no accident.  The excellent taste of the water is due to its state of the art processing techniques, not just the intrinsic quality of the natural product.  Aurora Water is one of six water utilities in the country to have passed a rigorous evaluation that now ranks it as one of the top producers of high-quality water. 

Aurora’s water supply comes from three river basins of the Colorado, Arkansas, and South Platt Rivers and is collected in reservoirs throughout the area. The city has some dependence on groundwater found deep in the earth, but replenishes its supply from melted snow in the Rocky Mountains and rainwater. To make the water fit for drinking, it is put through a series of treatment processes, including lime softening (to remove hardness), coagulation, recarbonation (to reduce pH after softening to a more stable level), high rate filtration, fluoridation, and disinfection.  How this treatment process is carried out is what gives Aurora’s water the edge.

Like many cities in the west, Aurora, CO is always concerned about water shortages, especially since water supply depends on yearly precipitation.  The area is growing so Aurora is ever vigilant of new sources of water, but also promotes water conservation and reuse to keep up increasing demand. Currently, Aurora is in the final phase of the Prairie Waters Project, designed to pull more water from the Platt River Basin.

The recently expanded Wemlinger Water Treatment Plant, which serves Aurora, treats 80 million gallons a day from two reservoirs in Aurora and Ramparts.  It is supported by a top quality laboratory, which maintains water standards as laid out in the 1998 Water Master Plan Update. The Wemlinger Water Treatment Plant has received numerous awards in its quest to assure clean, great tasting water for the Aurora area.  For more information on Aurora’s water supply, see Aurora Water Facts at a Glance.

Want to have excellent water at your fingertips?  Bandy Homes can show you fine homes in Aurora, as well as other nearby Denver homes for sale.  Quality water is just one of the amenities you will come to enjoy in this beautiful area of Colorado. 

Marianne Bandy

Local Denver Resources