by Wendy Frenzel
On March 16, 2008, the Chicago Tribune ran an article by Lew Sichelman entitled “Renting is an option when house won’t sell well.” Prior to writing his article, Mr. Sichelman, inquired with Real Estate professions across the United States about their thoughts on this matter.
Wendy Frenzel, co-owner of A Vantage Properties, is quoted within the article discussing options that are available to owners trying to sell but are finding that they are unable. One such option is short term leases. To do this successfully, the homeowner needs to ensure that the HOA allows this term of lease.
Another reason that leasing may be a better option than leaving a home vacant in the sales market is because of insurance. Some carriers will cancel policies on vacant homes so make sure that you check with your carrier - for either selling or leasing - to ensure that you are covered properly.
To read more about Leasing as an Option to Selling visit the March 16, 2008, the Chicago Tribune article by Lew Sichelman entitled “Renting is an option when house won’t sell well.”
Filed under: Leasing Information, Other Information
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by Wendy Frenzel
There is good news for Denver’s Home Prices! Using the following 5 factors: Foreclosures, number of homes for sale, unemployment rate, housing affordability, and past changes in home prices, the risk-index model developed by PMI Mortgage Insurance Co, Denver has a chance of less than 5% that home prices will decline by 2010. The only category that Denver didn’t fare well in was foreclosures.
To put this into perspective, Las Vegas, using the same risk-index, shows an 89% chance that prices will be lower 2 years from now.
To read more visit the Denver Post business section on Home prices called unlikely to decline in Denver.
Filed under: Market
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by Wendy Frenzel
The City Council of Farmers Branch Texas was not surprised that a lawsuit was filed in state district court to block implementation of ordinance 2952.
What does the lawsuit state: That the new ordinance was created, drafted, and discussed in closed meetings, a violation of Texas’ open meeting laws.
To read more about the lawsuit, visit the Dallas Morning News article Suit filed to block new Farmers Branch immigration ordinance of February 6, 2008.
Filed under: Laws
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by Wendy Frenzel
The City Council of Farmers Branch, Texas has unanimously approved a new Ordinance requiring every resident that is leasing within Farmers Branch city limits to have an occupancy license. Ordinance 2952 was voted on as their previous ordinance, 2903 (passed by the City Council and then passed by 2/3 of the voters in May of 2007) was blocked by the courts.
The previous ordinance only required those leasing in apartments to have an occupancy license. This new ordinance now requires an occupancy license to lease a single family home as well as an apartment.
The previous ordinance also placed the burden of verifying resident status on the landlord. Now this burden is placed on the Town. This new ordinance requires all renters to pay a $5 fee and prove that they are either a U.S. citizen or are legal immigrants. Then they can receive an occupancy license which would allow them to rent within the city.
The same fines are in place - $500 per day - for those in violation of this law.
When will 2952 go into effect? Currently 2903 is being reviewed by a federal judge in regards to being constitutional. Once the judge makes his ruling, then 2952 will go into effect.
What are your thoughts on this ordinance? If you are resident, would you move to a town/city that would require you to have a license to lease a home and then get a new license if you decide to lease another home in the same municipality? If you are a property owner, would you purchase a property in a municipality that has this type of ordinance?
Filed under: Laws
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by Wendy Frenzel
Do you know your credit score? According to Visa USA 2 out of 5 people have never checked their credit score with only 1 in 5 checking their credit score in the last year.
With the new FICO formula, credit scores will be changing. For some, it will mean a better score while for others, their scores will drop. To learn more about how the FICO numbers are going to work, what you can do to better understand the FICO numbers, or what to do to help raise your FICO numbers, read the Denver Post article from the Sunday, December 20, 2008, article entitled Reforming FICO.
Why is it important to understand your FICO scores? It can effect the interest rate you receive on a home or car loan, it can effect your insurance rates, it can effect the credit card interest rates you are offered, and so much more. Some employers are also looking at your credit, so could you be missing out on a job opportunity based on that score? To read more about Are credit scores discriminatory? visit the Sunday, January 20, 2008, Denver Post.
Filed under: Credit Information
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by Wendy Frenzel
Do you want to stay know about the different bills that are being introduced, debated, and voted on in the State of Colorado in the Senate and House? Visit the Colorado General Assembly web page. This allows you to see what is going on without living in the state.
One bill that may be coming back is the Landlord Tenant Bill and is one worthy of watching.
To see what are the other ways to find out what is going on legislatively, visit my Douglas County blog on the 2008 Legislative Session.
Filed under: Laws
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by Wendy Frenzel
The Federal Reserve has made the biggest cut in interest rates since 1990 with the cut of 3/4 of a point. The hope that this cut will help the country as a whole from a feared recession and will allow people to purchase items, including housing, which will keep money flowing into the economy.
Some are saying that because the Federal Reserve cut rates in advance of their scheduled meeting next week, that their may be more that is being unsaid. Or it could be that they just wanted to help calm fears worldwide.
To read more about the cut in interest rate, visit the Denver Post online on Fed cuts interest rate by 3/4 of a point.
Filed under: Credit Information, Market
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by Wendy Frenzel
Unlike other areas of the U.S., Colorado’s housing market values are not going down by double digits. In 2007, the Denver metro area only saw a 2% decrease in homes from 2006. That makes it a great time for investors and other buyers to purchase homes in the Denver metro area. The economist for the National Association of REALTORS, Lawrence Yun, has stated that the housing market in Denver looks good due to job growth and an educated workforce.
To see where your neighborhood is in regards to value, by the map, visit the Denver Post online. The Douglas County area has shown either just a slight decrease in value but in many areas, the Douglas County homes have shown an increase in values though they are on the market for sale longer as well, 85 days or more. It really helps to put the housing market into the perspective that it really should be in.
Filed under: Market
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by Wendy Frenzel
Compared to 2006, the number of resale homes sold in 2007 was only lower by less than 1% in Colorado.
In 2007, the median price for a single family home in Colorado was $245,000 which is only 1.96% less than what it was in 2006.
The median price for a condo in Colorado was $150,000 in 2007 showing a drop of 4.46% over 2006.
It’s still a good time to buy in Colorado if you are looking for the long term investment real estate should be considered. While other areas of the country has seen home price increases of 84% during the past 4 years, where the average increase nationally was 47%, Colorado only saw increases between 15 and 18%. This means that Colorado has less adjustments to make than other areas of the country.
For more information visit the January 9, 2008, Denver Post article Existing-home market held its own in ‘07
Filed under: Market
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by Wendy Frenzel
Beginning in January of 2008, Douglas County has limited eviction cases to the first 3 weeks of the month on Monday, Tuesday, and Wednesdays. What this means is that a Demand must expire by the 12th of the month for law firms to file within that month for an eviction. If it’s after that date, the court date may be not until the next month.
Just because a Demand has been placed on a resident’s door (served), does not mean that it has to be filed with the court. The resident can still “cure” prior to the date. So place the Demand as your lease allows to ensure that court dates are set as early as possible.
Filed under: Laws, Property Management Tips
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