Dear Friends: Unlike the month of December where we reflect on the past, January is about the future and the opportunity to start a new year with a fresh slate. As we make our plans for the months ahead, there’s an optimism in the air--as people set goals to do better, be better, or simply try to make the world a better place. So as 2016 unfolds, here’s wishing you a wonderful journey ahead, filled with the attainment of your goals, whatever they may be.
Joey Cranford Broker Associate Direct: 303-268-0631 www.JoeyCranford.com Team@CranfordTeam.com
If one of your goals for the New Year involves real estate, I would be honored to assist you in any way that I can. Please don’t hesitate to give me a call. Best wishes for a wonderful year ahead!
The Front Range Realty Report Presented by The Cranford Team at RE/MAX PROFESSIONALS If your home is currently listed for sale, this is not intended as a solicitation.
JANUARY 2016
New Year and Old Debts: Tips to help manage your credit Most of us don’t give much thought to our personal credit scores until it’s time to apply for a loan. Unfortunately, by then it will be too late to make a difference in your score-and that can cost you a higher interest rate, or at worst, rejection of the loan. As we begin a new year (and before you need to apply for anything requiring a loan), here are some simple steps to help you manage your credit by managing your credit cards: One strategy many people take when attempting to improve their credit rating is to close out old credit cards. However, this is generally a big mistake, and can have the exact opposite effect on a credit score from what you were striving to achieve. To help figure things out, financial experts suggest you NOT close out the following credit cards: The card with the best terms: If you must close some accounts, consider closing those that are charging you more. If a credit card is providing you lots of attractive perks with no annual fee, no hidden charges, and at a very low interest rate, closing it will actually hurt your credit. The oldest account: Your credit score is also bolstered by demonstrating a long credit his-
tory. Therefore, it is not at all a good strategy to close your old credit card accounts in an attempt to repair your credit. The only card you have: Your credit score depends very much on how many different types of credit you are using. This way, having at least one credit card will actually help you improve your credit situation. An account where you still have a balance: When you close these cards, your total available credit becomes zero, but you still have a balance on it, which gives the impression that you have maxed out. Having a credit card that appears to be maxed out will adversely affect your credit score. Having said all this, taking a temporary hit to your score may be worth the satisfaction of canceling a credit card you don’t need or want anymore. Of course, since timing is everything, don’t do it just before a lender plans to check your credit history (such as when applying for a mortgage). For resources to help you with anything relating to credit card debt, here’s an excellent website: http://www.nerdwallet.com/blog/ credit-card-debt/
u The Denver metro area has been deemed “high cost” by the FHA. As a result, the Denver metro area loan limit on mortgages acquired by Fannie Mae and Freddie Mac will increase by $34,500 this year: with loan limits rising from $424,350 to $458,850. The FHA says most other cities nationwide will not see an increase in their loan limits because the agency determined that the average U.S. home value in the third quarter of 2015 remained below its level in the third quarter of 2007. u Good schools = higher priced homes, according to RealtyTrac. A recent study evaluated school test scores for nearly 27,000 elementary schools in more than 7,200 U.S. city codes. The study showed that of 1,823 ZIP codes with at least one good school, 65% of homes in the best districts were unaffordable for average wage earners, who would need to spend more than one-third of their income in order to purchase a median-priced home there. u According to the National Association of Realtors, for the 88-million-strong millennial generation, the oldest of which is 34 years old, the combination of high appreciation, low inventories and continuing tight credit conditions is making home ownership a stretch few can afford. As a result, first-timers made up only 32 percent of buyers last year, down from 50 percent in 2010. Do you have a specific real estate question about our market? Call me.
COLORADO CORNER
Colorado’s best winter entertainment: Ice and Snow Festivals Over the next 10 weeks there’s an amazing array of snow and ice festivals held around the state. An Internet search on the festival name will provide greater details. • Ouray Ice Festival: Jan 14-17. The best ice climbers in the world scale Ouray’s frozen waterfalls. • Winterskol in Aspen: Jan. 14-17. Come celebrate Aspen’s Nordic heritage with this 4-day fest of on-mountain activities, a canine fashion show, broomball, the Fat Cycle Challenge and more. Estes Park Winter Festival: Jan. 15-18 with ski and snowboard demonstrations, ice-skating, beer and wine tasting and more. • Breckenridge Budweiser Int’l Snow Sculpting Championship: Jan. 26–30. Worldwide teams spend a week carving intricate sculptures from 20-ton chunks.
• Steamboat Springs Winter Carnival features ski-jumping competitions, dog-sled pulls, obstacle races, a tubing party and a spectacular fireworks display. Feb. 3–7. • Winter Park Winter Carnival: Feb. 6-14. Live music, fireworks, ice-skating lessons, sled races and much more family fun. • Cripple Creek Ice Festival: Feb. 12-14 and 20-21. Main Street is “abuzz” as artists use chainsaws to carve amazing ice creations. Tackle the ice maze then sip hot coco with friends. • Pagosa Springs’ Winterfest: Feb. 12-14. Hot air balloons, polar plunges, a Chili-cookoff and those wonderful hot springs! • Ski Joring & Crystal Carnival in Leadville: March 5-6. Fearless skiers navigate a course connected by a towrope to a galloping horse-down the middle of town. (Plus lots of other snowy activities.)
January’s Free Report: “Beef Up Your Cyber Security and Internet Safety in 2016.”
The U.S. government has budgeted $14 billion for cybersecurity in 2016, so clearly this is a serious problem. But what can you, as an individual, do to help protect your identity, your finances and the privacy of your life? Turns out there’s quite a bit.
Ask for the January Report . . . and see for yourself! It’s free.
Home improvements can help or hurt when it comes to recouping costs If you’re thinking about sinking some money into home improvement projects this year, keep a few things in mind. What you’ll get back on your investment depends on the value of your house, the value of houses in your immediate neighborhood, the housing market where you live, how soon you sell after making improvements, and the quality of the project itself. However, before you commit to an expensive remodeling project, analyze the overall structural integrity of your home. Putting money into maintaining the roof or the plumbing system isn’t as exciting as adding granite countertops, but there is no better investment in your home’s value than staying on top of maintenance issues. Assuming your home is well maintained and you’re looking for investments that provide the highest ability to recoup your expenses, according to a Remodeling Magazine survey, springing for a kitchen or bath remodel is a sure-fire investment, often returning more than 100 percent of the cost. You can expect to recoup 60%120% of your investment on a kitchen remodel, as long as you don’t go overboard. A good rule of thumb is to not make your kitchen or bathroom considerably fancier than the rest of the house or neighborhood. These days, buyers shop for homes with energy efficiency in mind. Old, drafty single-pane windows are a major turn off. Energy Star claims that adding Energy Star-rated windows can save you up to $500 a year in heating and cooling costs by making your
home more energy efficient. Outdoor living spaces have become more desirable, especially since more people stay home for vacation (referred to as a staycation). As a result, adding a deck increases the value of your home. If you make your deck and your backyard more appealing, your house will be more appealing to prospective buyers when you decide to sell. It is estimated that homeowners recoup 65-90% of their investment by adding a deck. On the opposite end of the spectrum are a list of projects that are best to be avoided, in terms of hoping to recoup your expenses. This doesn’t mean you shouldn’t go ahead with any of these improvements, but do so because it’s something you’d truly enjoy having in your home, and not because you think you will recoup the expense when you sell your home. Here’s a list of home improvements that probably won’t increase the resale value of your home: • In-ground swimming pool • Whirlpool bath • Sunroom • Room additions (unless it’s a much needed additional bedroom.) • Home office remodeling • Mid-range or upscale garage addition • Family room addition If you’re giving thought to making some rather extensive improvements to your home, before making that kind of investment, consider checking out the market to see if it would make more sense to move than to improve. Don’t hesitate to call or email if you’d care to discuss details of our market.
Baby steps to living a greener life
Parties aside, the New Year typically brings hope for a more prosperous and happy 365 days. Here are also some fun facts and trivia associated with the celebration: The top three places to celebrate New Year’s Eve are Las Vegas, Disney World and of course, New York City. In Italy, people wear red underwear on New Year’s Day to bring good luck all year long. In Colombia, Cuba and Puerto Rico, some families stuff a large doll, which is called Mr. Old Year, with memories from the past year. They also dress him in clothes from the outgoing year. At midnight, he is set ablaze, thus burning away the bad memories.
It’s good luck to eat foods like black eyed peas, ham and cabbage because it is thought they bring prosperity. Forth-five percent of Americans make New Year’s resolutions. The top 10 resolutions are usually to lose weight, eat more healthily, exercise more, stop smoking, stick to a budget, save money, get more organized, be more patient, find a better job and to just be a better person overall. Unfortunately, twenty-five percent give up on their resolutions in the first two weeks. And if your car wasn’t stolen, consider this: more cars are stolen on New Year’s Day than on any holiday in the United States.
Q: What is the most expensive zip code in the country?
REAL ESTATE TRIVIA A: According to a 2015 survey by Forbes Magazine, Atherton, California’s 94027 zip code holds the most expensive real estate, with a median home price of $10,564,038.
Most of us would like to live a “greener” life, but change isn’t always easy. So here’s a list of uncommonly simple steps we can all do to help our environment, one small step at a time: Leave shoes at the door. Wearing shoes indoors means you’re embedding toxins in your carpets which affects your indoor air quality. Don’t toss-donate. Much of what we toss in the garbage can be donated and reused by others. Turn off the lights. Every time you leave a room, turn off the lights. Every bit of energy saved will quickly add up. Reuse plastic bags or look for a recycling bin for plastic bags at your local grocery store. Lower your water heater. For each 10º reduction in water temperature you can save between 3%–5% in energy costs. Lower your water heater to 120 or even 115 degrees. Turn down your thermostat. You can save as much as 10% a year on your heating and
cooling bills by simply turning your thermostat back 10% to 15% for 8 hours. Use common household products to clean. Use natural products such as vinegar and baking soda to clean your home rather than toxic laden household cleaners. For great recipes, check out: http://www.keeperofthehome. org/2013/06/homemade-allnatural-cleaning-recipes.html
Wash clothes in cold water. With cold water, you’ll save about 90% of the energy your machine uses to wash clothes. Use reusable containers. Doing so keeps those little plastic sandwich bags out of landfills. Switch from paper to cloth napkins. Cloth is more environmentally friendly. Save water by installing aerators and low-flow shower heads and toilets. Need a new appliance? Look for those rated Energy Star and you’ll be buying the most energy-efficient models.
Two simple tasks that can knowyourstuff.org. This program is created could sell your home for today. by the Insurance Information Institute. protect your home in 2016 January is an excellent time to review your automobile and homeowners insurance policy to make sure you are ready for whatever the new year may bring. For example, you may have made upgrades or purchased new items that could impact the amount of insurance coverage that is needed. Conducting an annual review of your insurance policies helps to ensure that your home is fully protected. You may be pleasantly surprised that it is fairly quick and easy to conduct the annual review. Begin by doing a home inventory of your possessions. There are a variety of Internet websites to help you create your own inventory (or to update your current one), but one of the most popular websites is www.
After you’ve thought through or conducted your home inventory, call your agent or insurance company to discuss your policy and any possible changes you may want to consider. Check whether the policy pays replacement cost or actual cash value for a covered loss. Actual cash value takes depreciation into account. As a result, the compensation received may be much lower than the retail price of a new item. Your policy should insure the structure for the full replacement cost. The replacement cost is the amount necessary to rebuild the home with construction materials of like kind and quality. Replacement cost should not be confused with market value, which is the price you
Make sure to know the amount of your deductibles. The deductible is the amount of a covered loss that the homeowner must pay. The higher the deductible, the lower the premium will be. Inquire about discounts that may be available. There may be discounts for things such as security systems, smoke alarms and steps you have taken to mitigate damage from natural disasters. Additionally some insurers offer discounts for consumers who purchase multiple policies. The Rocky Mountain Insurance Information Association’s website offers outstanding articles, resources and information, geared toward Colorado homeowners. http://www.rmiia.org/index.asp
Top Producing RE/MAX Agent in Colorado
#1 Realtor® at RE/MAX Professionals | #1 RE/MAX Agent in Colorado | #16 RE/MAX Agent in the United States What does hiring a top producing realtor do for you? No matter what real estate market we are in we have consistently been able to achieve the best conceivable price for our sellers while helping our home buyers obtain the most promising deal on their new home. With our marketing, knowledge and experience we understand what it takes to help our clients reach their real estate goals. You could lose thousands of dollars with an average agent. If you are thinking of selling your current home and or purchasing a new home our experience and knowledge will put more money in your pocket. Call us at 303‐268‐0631 today! If you or someone you know is thinking of selling their Highlands Ranch home, please let us know!
January’s FREE Report:
“Beef Up Your Cyber Security & Internet Safety in 2016.” See inside for details.
YOUR COLORADO REAL ESTATE RESOURCE.
Joey Cranford, Broker Associate The Cranford Team at RE/MAX Professionals 9200 E. Panorama Cir. #140 Englewood, CO 80112
Direct: 303-268-0631 www.JoeyCranford.com Team@CranfordTeam.com