December 2009
WINTER
A great time to buy or sell
TAX CREDIT EXTENSION DASHING THROUGH Fro m
ELAINE PACKARD
THE SNOW
yo u r
720-985-4699 B ro ke r
elaine@coloradohomerealty.com
There are challenges and opportunities to buying and selling a home during every season of the year. My job is to help you take advantage of the opportunities while overcoming any obstacles. The need to buy or sell is not dictated by the seasons. Most people have real estate needs that are determined by life events (job change, marriage/divorce, birth of another child, etc.) and not by the calendar.
Buying A Home In Winter N ow may be one of the best times in recent memory to buy a
house AND save money. Interest rates are low and the Denver market, which never became severely depressed like other areas around the country, is recovering. The $8,000 tax credit for 1st time home buyers has been extended (but only to April 30, 2010) and a new $6,500 tax credit is available to repeat home buyers (See the article entitled “Mortgage Tax Credit Extension� in this newsletter for more details). While there are fewer homes on the market during the winter months, this factor is quite insignificant. There are about 10% fewer homes on the market right now compared to the number on the market at the end of June. The actual number of available single and multi-family homes right now is over 18,000! There is plenty of inventory! One big advantage of buying in the winter months is that sellers who do have their houses on the market tend to be more motivated. People are busy during the holidays. As a result, there are few discretionary sellers this time of year. If a house is on the market right now, the seller is a serious seller who probably needs to sell. Your odds of negotiating a better price or more concessions are highest in the winter.
Selling Your House In Winter The challenge for sellers in the winter, especially in December, is that the number of buyers in the market goes down significantly. About 3,800 to 4,200 buyers will purchase and close on a property each month in June and July, but that number decreases to about 2,000 in December. Holiday distractions account for the decrease in the number of transactions. The silver lining about early winter selling is: buyers who are out looking and writing offers are very serious buyers. They are motivated. They have some need that is pressing them to make time for house hunting at a hectic time of year. How can you capitalize on this?
The right showing conditions are crucial to success. • It’s a must that your house be clean, un-cluttered, lighted, and inviting to a buyer. • If it is the Holiday season, make sure your decorations are applicable to the season, but don’t keep decorations out longer than the Holiday. • During winter with snow and rain, water and snow damage can be a major issue for you as a home owner. The biggest issues for the viewers, will be their safety in getting to the house and their warmth once inside.
• If you have a fireplace, have it lit during showings. A warm home will encourage people to stay longer and view more of the home, whereas a chilly home can quickly drive viewers out. • If there is snow and ice on the ground, spend some time making the approach to your home safe and easy to navigate. • Driveways and walkways should be completely shoveled and clear and kept free of ice all day. • Keep a bag of de-icer on hand in case things get slippery. • Also take care to note whether falling snow from the roof could be a concern. • Another nice touch would be some plastic slip-ons so that viewers don’t have to remove their shoes when looking at the home. This also goes a long way towards protecting your floors. There is also something else going on this year that is going to make this a better winter selling season than normal: the federal tax credit for home buyers. The tax credit was in effect last year and resulted in strong activity in January and February. With the 1st time buyer credit extended and expanded to include repeat buyers, we will probably see strong activity again as the New Year begins.
T he Holly and the Ivy, the Mistletoe, the letters to Santa, and how’s that song go? The holiday season is
upon us! And that also means the end of the year is near. It is a time for quiet contemplation of the year that’s past. And what a year of truly world-changing events! We witnessed an historical inauguration, the economy was definitely FRONT AND CENTER, and most recently the NY Yankees won their 27th World Championship. OK, we didn’t change the world, but we are flourishing and there are so many different people to thank. But first, a heartfelt thanks to YOU.
for being interested. for taking a look. for closing a real estate or mortgage transaction with us, if you did. for referring us to your friends and family. for being involved in our amazing fundraiser for Max Fund and the Gabriel Foundation. for attending our Harry Potter Pre-Screening. for attending one of the various classes we held. (More to come.)
And here’s to next year. We’re already drawing up our resolutions for 2010. We want to include you in more events. We want to communicate with you more – our brokers are getting more and more involved with social media… and our web site will be up and running in the new year. We want to be more helpful (please send us all your tips, advice and ideas on how we can improve) We want to be famous (so tell all your friends about the relationship you have with us, they will thank you.) But most importantly, we want you to have a healthy and happy holiday season and to bring in the New Year with gusto.
Thanks again to all our friends, family, clients, partners, associates and fans for making 2009 an absolutely great year! Colorado Home Journal “Neither a lofty degree of intelligence nor imagination nor both together go to the making of genius. Love, love, love, that is the soul of genius.” Wolfgang Amadeus Mozart
P resident Barack Obama has approved the first-time home-
Effective Dates
The extension is part of a $24 billion economic stimulus bill that will extend the $8,000 tax credit for homebuyers who are purchasing their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to homeowners who have lived in their current home for at least five years and are seeking to relocate.
Types of Homes that Qualify
buyer tax credit extension which will extend the tax credit until April 30, 2010.
The following details apply to the homebuyer tax credit expansion:
Who is Eligible - First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the threeyear period prior to the purchase, may be eligible for up to an $8,000 tax credit. - Existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer�), may be eligible for up to a $6,500 tax credit. - All U.S. citizens who file taxes are eligible to participate in the program.
Income Limits Homebuyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000. - For married couples filing a joint return, the combined income limit is $225,000. - Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit. - The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000.
- The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.
- All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.
Tax Credit is Refundable - A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.
For example: - A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time homebuyer tax credit). - A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit). - All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return.
Payback Provisions The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase. Source: RISMEDIA, November 9, 2009 www.rismedia.com/2009-11-08/obama-signs-homebuyer-taxcredit-extension
C olorado is a winter wonderland. Why not explore some holiday
themed traditions, events and extravaganzas. How about a sleigh ride or a holiday themed amusement park? We are so lucky to live in Colorado…enjoy some local festivities.
Sleigh Rides A sleigh ride is a unique experience people should indulge in during the holidays. Enjoy the beauty of the mountains covered in snow. Take your special someone or your kids. Blankets are usually provided, but remember the weather may be frightful so dress warm and be prepared to snuggle up to the person next to you. Breckenridge Sleigh Rides –Breckenridge - 970-453-4405 Aspen Lodge at Christmas time - Estes Park - 970-586-8133 Two Below Zero – Frisco - 970-453-1520
Trail of Lights at the Denver Botanic Gardens at Chatfield - Littleton Experience true holiday charm at “Trail of Lights.” With the Colorado foothills as a backdrop, more than one million twinkling lights illuminate the beauty of Denver Botanic Gardens at Chatfield. While strolling the trail, don’t forget to pick up a pair of the always popular Holospex 3-D glasses, stop by the children’s play area (which includes a treehouse) and take a tour of a restored 1880s homestead decorated in Colorado Country Christmas motif. Sundays, Wednesdays, Thursdays, Fridays, & Saturdays. 5:30 p.m. - 10 p.m. (Through January 3)
Little House on the Prairie This American classic takes on a brand new frontier, as the wonderfully inspiring experiences of this pioneer family come to life in Little House on the Prairie, The Musical. Buell Theatre - www.denvercenter.org Dec 15-Dec 27, 2009
Georgetown Christmas Market Each December the town of Georgetown transforms for two weekends into a bustling Christmas scene reminiscent of Christmas of long ago. Thousands come to this tiny mountain town to experience a traditional holiday where Christmas hasn’t changed in 100 years: roasted chestnuts, holiday shopping, horse-drawn wagon rides through historic Georgetown, and wonderful sights and smells. Visitors enjoy appearances by St. Nicholas in his traditional dress and the daily procession of the Santa Lucia, as well as carolers in Victorian costume, dancers, and other family entertainment. Adorned with lights and Christmas greenery and blanketed with snow, the quaint, historic town of Georgetown, Colorado has been a Christmas tradition for generations of Colorado families. December 5th, 6th, 12th and 13th, 2009 10:00am to 5:00pm on 6th Street in Georgetown www.historicgeorgetown.org
The North Pole A Christmas Themed Family Amusement Park This enchanted family theme park has something for every member of the family. Meet Santa Claus and his elves. Ride with the unique Christmas Tree Ride, swing through the sky on the Enterprise Space Shuttle, and enjoy a whimsical ride on an Antique Carousel. You can fly through the sky on an Aerial Tram or stay on the ground with the Miniature Train. There are more than two dozen family-friendly rides for your pleasure. At the base of Pikes Peak in Cascade, CO Through Dec 23 10:00 am – 5:00 pm Closed Wed & Thurs December 24 Open 10:00 am – 4:00 pm www.santas-colo.com
E V E R G R E E N 803747 $89,900 H A R T S E L 792434 $30,500 L I T T L E T O N 823173 $74,900
1560 1876 978 4718 1294 1711 1602 1445 993
LOT SIZE 29620 217800 13204
S E R U T
O T ACRES 0.68 5 0.3
CORNER UNIT WITH UNDERBUILDING PARKING, ENCLOSED LANAI END UNIT, WOOD ENTRY, STAINLESS, TREX DECK, 2 CAR GARAGE TRAVERTINE SINKS & FLOOR IN BOTH BATHS, HI-END LITE FIXTURES; DENVER CITY & MTN VIEWS, SPA 3 STORY TWNHOME, HEART OF CC NORTH, ELEVATOR, 3RD FLOOR OUTDOOR OASIS BEAUTIFUL RANCH BEING SOLD FULLY FURNISHED, GREAT INCOME PROPERTY PROVIDENCE MODEL BROWNSTONE, WALK TO CIVIC GREEN PARK, PRIVATECOURTYARD MAIN FLOOR MASTER +2 BDRM/1 BTH LOFT UPSTAIRS, FENCED PATIO AREA +BALCONY, POOL END UNIT, 2 MASTERS, WOOD BURNING FIREPLACE, APPLIANCES INCLUDED, QUICK POSSESSION MOUNTAIN GATE END UNIT ON 2ND FLOOR SOUTH FACING DECK, RESERVED COVER PARKING SPACE
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LITTLETON
$167,500 $185,000 $119,500 $1,499,000 $260,000 $338,000 $225,00 149,900 $129,900
NEW FLOORS, NEWLY LANDSCAPED FRONT YARD, CULDESAC CUTE A-FRAME ON BEAUTIFUL 1 ACRE LOT, ASPEN GROVE, LEASE OPTION RECENTLY UPDATED, NEAR LIGHT RAIL, PARKS, UPCOMING AREA. TOTAL REMODEL IN BERKELEY, HUGE YARD, PRIVACY PRIME LOCATION IN CCN! 2 A/C UNITS, 2CAR GARAGE, FRONT PATIO W/GARDENS DTC, CUST TILE FLOORS, HUGE LOT, NO HOUSES BEHIND CUL-DE-SAC, OPEN SPACE, MOUNTAIN VIEWS, HOT TUB, MEDIA ROOM CULDESAC, GREAT ROOM, 52 INCH TV AND SOUND SYSTEM IN LIVING ROOM INCLUDED GREAT STARTER, WALK TO SCHOOLS. WORKING WITH FANTASTIC SHORT SALE CO ROXBOROUGH, MAIN FLOOR MASTER, LOFT AREA, UPSTAIRS LAUNDRY 1+ ACRE, END OF CUL-DE-SAC, OPEN SPACE, VIEWS, WALK-OUT BASEMENT STATE OF THE ART SOLAR ENERGY EFFICIENT HOME TO BE BUILT UPGRADES GALORE, LARGE OPEN BASEMENT, PROFESSIONALLY LANDSCAPED FABULOUS ROCK FIREPLACE, RE-FINISHED BASEMENT, WALK TO SCHOOL, CULDESAC HUGE COVERED PORCH WITH DRY BELOW, 4 CAR GARAGE, MASTER SUITE, FIREPLACES HORSE PROPERTY, MIN TO DT PARKER, 5+ ACRES, BARN, SHED, DET 4 CAR GAR W/TACK RM
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DENVER
808985 760206 825449 528217 777747 808853 757220 826025 785043
1872 1116 1116 1350 3639 1913 2472 2220 1827 1995 3702 2000 2257 3696 3074 7090
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$224,500 $139,000 $52,900 $274,900 $899,000 $279,900 $364,900 $355,000 $203,500 $230,000 $484,900 $369,900 $399,900 $545,000 $499,500 $1,499,999
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DENVER
HIGHLANDS
822656 785042 822201 825208 796019 812068 814629 819709 825197 733544 810512 823164 810279 819439 811869 759702
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LISTING NUMBER P R I C E
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LITTLETON
condos RESIDENTIAL LAND
A U R O B A I L
LARGE LOT IN SUNSET RIDGE, PRIVATE PAVED DRIVE, POSSIBLE BUILD TO SUIT YEAR ROUND ACCESS, EASY BUILDING SITES, POWER & ROAD EASY ACCESS TO C-470, BUILDER BUILDS STATE OF THE ART SOLAR ENERGY EFFICIENT HOMES