Bill’s Blog

This has been a big question around the real estate world, what do we do with all of the real estate owned (REO) properties held by the government?  i.e. foreclosures.  After crunching the numbers and looking at the economics of the situation the solution is to continue to lend money and approve short sales.  (short sales are homes that are owned or in the process of being owned by the government/banks, they sell the home below market value to cover losses and get someone who can afford the home into the property).    The reasons behind continuing to loan and approve short sales are the negative affects of foreclosures.  When homes are foreclosed it is not just the homeowner that is hurt, but the entire community, the housing market, and the nation’s economy.  By keeping the homes off the market in occupied the economy will have a better chance of improving.

Bill Allen

303.441.5690.direct

303.415.2251.office

ballen@boulderco.com

RE/MAX of Boulder, INC

A homeowner in Glenview, Ill is having problems getting her house to sell, so to sweeten the deal she bought $1,000 worth of booze to entice prospective buyers to take a second look at the home and emphasize the nearby nightlife of the town.  Full Story here. 

My Opinion: This certainly is an interesting incentive to make buyers think twice.  But there are a lot of homes on the market so how do you make yours more noticeable?  The first and most important rule is to have your home prices right.  That does not mean what the homeowner thinks it is worth, but what the market is saying people will pay for it.  Especially in this market when home values are hurting, prospective buyers are looking for VALUE in a home, which comes to my second point.  The second most important rule is if you are serious about selling your home, it needs to be presentable.  I’m not saying it needs to be staged but it will give you a huge advantage over the home down the street.  In today’s market, especially, homebuyers are looking for that value and are looking for a home that they feel comfortable in and are ready to move into.  Lets say there are two homes on the market, both are priced correctly but home A is clean and staged, and B has 3 children and the house is a wreck…which home will sell?  -Getting back to the homeowner in Glenview, there are a lot of ways to make your home more vibrant to buyers, the $1,000 of liquor is a great idea.  Think of similar incentives to help your home be worth its value!

Bill Allen

303.441.5690.direct

303.415.2251.office

ballen@boulderco.com

RE/MAX of Boulder, INC

AOL Real Estate just released the 11 Fastest-moving Real Estate Markets.  Two Colorado cities made the list. Follow this link to see who made the list…
Slow, Tired, Gloomy day in Boulder. At least its already Wednesday.

Bill Allen

303.441.5690

ballen@boulderco.com

RE/MAX of Boulder, INC

BCBR.com reported Ball Aerospace and Technologies have won a $36million contract for a missile launch program.

‘Boulder-based Ball Aerospace will create the Moire Program, which will include optics and geosynchronous imaging that can help detect missile launches and track them, according to a press statement. The project will also include real-time video.
Of the work, 73.2 percent of the project will be done from Ball Aerospace’s Broomfield location, according to the press statement. Other work will be done in Goleta, California, 17.2 percent; Livermore, California, 7.2 percent; and Huntsville, Alabama, 2.4 percent.’-Beth Potter

Ball Aerospace revenue has been growing rapidly over the last year citing a near 15% growth from last year.  An increase from $18.6million to $21.7 million, second quarter numbers.  The company has also finished their 160,000sqft expansion of their manufacturing center and started expanding their satellite manufacturing facility in Boulder.

*read the full article at BCBR.com

Bill Allen

303.441.5690

ballen@boulderco.com

RE/MAX of Boulder, INC

Hello all,

I was reading through the news and found this article ‘Time For A New ‘New Deal” by Inman Real Estate News.  It is just a great article about the current ‘recession’ and an interesting take with economic facts of today.  Its a good short read from Inman Real Estate News.  I hope you read it.

Bill Allen

303.441.5690.

ballen@boulderco.com

RE/MAX of Boulder, INC

I stumbled on an interesting article today about a new type of loan modification program that has potential to save the economy.  Past loan modifications have only left us worse of and now banks are suing banks and the government is handing out money to corporations and now the people are standing up and fighting back, and with a brilliant solution at that.

The idea is for a new loan program that instead of the government to lend out millions of dollars to banks, the banks will just reduce the amount of principal on loans.  The statistics are as follows:

“If lenders would reduce all underwater mortgages to their current market value, the nation’s banks could pump $71 billion per year into the economy, create more than 1 million jobs annually and save families up to $6,500 per year on mortgage payments, according to The New Bottom Line, a collaborative of 1,000 faith-based and community organizations who want Wall Street held accountable for the mess it created.”  -Ann Brenoff, AOLreal estate

The idea behind this is that by reducing people’s loan payment, it allows them to spend their money on other things such as groceries, clothes, etc.  This would cause a spike in consumer demand and businesses would be doing better and lead to prosperity and jobs.

Tell me what you think, could this idea help revive the economy?

Bill Allen

303.441.5690

ballen@boulderco.com

RE/MAX of Boulder, INC

*for the full article on this issue follow this link

Home Affordability is near record highs (which is a good thing)  This rating means that American families are buying homes within their means.  The National Association of Home Builders said the affordability of homes sold in the second quarter for 2011 was 72.6%.  The national median income is $64,200.

At a time of high affordability it means prosperity, homeowners are purchasing within their limits and with the historic low interest families are getting great deals on homes and will be well financed to make affordable payments.  Unfortunately, the high level of affordability has not turned into more sales, actually, the national average of home sales dropped 3.5% in July from June sales.

*If you want to read the whole story check it out on RealtyTimes.com

Bill Allen

303.441.5690

ballen@boulderco.com

RE/MAX of Boulder, INC