Charles Strauss

Hate to beat a dead horse, but what you ask us to do, is what I was referring to. I make sure that my clients are aware of and comfortable with the information that they have received from their chosen mortgage broker. If they aren't, I do explain the different loans that are available, and we can use my financial software to run diffrent scenarios. If they still aren't comfortable, I will refer them to a different mortgage broker.
Constant: I make sure that my clients are aware of how serious this decision is, in many cases (especially for owner occupied) the biggest financial decision they will make. They need to be comfortable with the money side, and I will do what I can to make that happen. - A few minutes ago

Chandler: I don't give "financial advice" I give my view of the market and how that might affect the value of a particular property. I am not allowed to give advice on issues about which I am not qualified. As I am not a financial adviser, I can't give financial advice, the same way I can't give legal advice.
True, we can talk about various loan types, but it is up to the client and his financial advisers to determine which loan instrument makes the most sense in their situation. I'm not sure how we as Realtors can be held responsible if our clients get bad advice from a "financial" expert, tax professional or legal council.
I agree with JR, I know my job and my ethics and always feel comfortable that I am doing the best I can for my clients, given the information I am supplied. - Yesterday, 14:38

Many realtors have a practice to only show houses AFTER a buyer has been pre-approved (more than qualified) for a loan of a specific amount. It isn't up to the Realtor, but to the mortgage broker or bank to make sure that the buyer is qualified and APPROVED for that loan. Then the buyer needs to understand the payments, what might happen to the loan in the future to make sure they are comfortable with the new loan before they settle on a top end for their new residence. I guess, my point is, that I don't see why realtors are the ultimate bad guys here. - Mon May 12 2008, 13:02

I'm a new comer to this forum, and have found it to be maddening, while at the same time, very informative and entertaining. My clients (maybe I'm lucky) believe that Realtors do perform a valuable service. When I send them information that seems contradictory to the very negative news that one reads in mainstream media, they understand that I am doing so, not to convince them that "it's a good time to buy" but rather to give them a different spin on the numbers, so that they can make a more informed decision on their own as to whether its a good time to buy or not. I don't believe that in doing so, I am an evil "6%er". - Sat May 10 2008, 05:57

A different slant on the "Local" issue:
Today we are in the midst of a 1986 and 2001- like return to market fundamentals as supply and demand are realigning housing market prices and sales volume. Wachovia Economics Group makes a strong case that there are today three distinct housing markets in the country.

In Florida, Nevada, California and Washington D.C., and the New York area, home price increases have made affordability the critical issue. When high property taxes in many of these areas are factored in, the price/affordability imbalance will take financial pain and years to correct.
A different dynamic is occurring in the economically distressed mid-U.S. rust belt. In these areas, persistently weak or declining employment and deteriorating demographics were already hurting home prices and many struggling homeowners used cash-out refinancing to help make ends meet. The resulting high foreclosure rates in these areas are causing further home price deterioration.
A third set of housing markets in the South, Southwest, Plains states and Pacific Northwest (including Colorado and metro Denver) were less impacted by the housing boom. Although home sales and new construction have slowed, long-term supply imbalances aren’t significant factors. Although the foreclosures related to the rise and fall of subprime lending are a drag on the market, excess supply and affordability issues are not major problems.
Just my 2-cents worth. - Fri May 9 2008, 07:55

I quit paying attention to this thread a while ago, but just read one note by Richard that actually makes a point made much earlier. He stated that an article (as mentioned I quit paying attention so not sure which article) said inventory was currently 11 months. The point this helps make is that real estate is very local. Inventory in Denver (from metro mls numbers) is less than 6 months, and I've heard numbers of more than 18 months in some other markets, so an average, whether it be home value, inventory level, or whatever, is meaningless. - Thu May 8 2008, 05:05

Mike:You are, as stated, entitled to your opinion, but how about keeping it civil? - Wed May 7 2008, 12:57

Send me and EMail and I'll forward a powerpoint presentation from Lawrence Yun, chief economist with the Natiional Association of Realtors about national and Colorado trends and forecasts. - Wed May 7 2008, 11:00

Zach asked for the data I use to support my viewpoint: basically I reference a recent report by an independent Denver based research firm. Month over month sales have increase last three months here, and the current inventory level stands at 4-1/2 months. 6 months inventory is where prices usually begin to increase. This is a different market than we have recently seen, and I really don't expect prices to increase greatly, but will get better slowly over the next year to 18 months. - Wed May 7 2008, 10:26

Answering this question is next to impossible. The question asks "Why should someone buy in this market", and the reason that question cannot be answered is the term "this market". All the news we read (and our clients read) is national, sometimes state or metro, but normally national. Real estate, as has been stated very often, is very, very local. I am in Denver, and our market overall, is better than many, perhaps not as good as some. Markets WITHIN Denver also vary widely. Some, where foreclosure rates and short sales are high, have shown year-to year declines, while others, where there is a lot of buliding and remodeling activity, are up significantly.
Bottom line, it is a good time to buy, whether as a residence or investiment. Inventory, while decreasing, is still sizeable, interest rates are low, and sellers remain motivated.
You can use the available data to justify any position you want, whether that be that we have bottomed out, or that there is still room for additional corrections. In my opinion, and from what I have seen, I believe that we will see improvement (maybe not mind-blowing) in both sales volume and pricing over the next several months, and 2009 will see significant improvement. Just my opinion, but there is data to support that viewpoint. - Wed May 7 2008, 10:02

http://www.barnumdenver.com/
Here is a link; I wasn't blown away by the information.
If you want to check listings in the area, you can use my website:
www.denverhomeguru.com, or I would be happy to do a detailed search for you.
Chuck Strauss
720-318-7598
CStrauss@kw.com - Tue May 13 2008, 12:05

Great question, Brian.
Finding a Realtor you like and can trust, after speaking with a mortgage broker or bank to get pre-qualified or approved for a loan, is a very important first step.
I would find out as much as you can about the Realtor and their brokerage firm; their background, support and services. They should be able to provide you with a complete packet which includes information about them (a personal brochure and resume) their firm and a listing of their services.
During the initial meeting, the Realtor should try to find out as much as they can about you, your family, requirements for a home, your job (for commuting) neighborhood choices (schools, amenities, etc) and other important criteria. The purpose of this initial meeting, for the Realtor, is to find out your needs and wants. I work from a list that includes "must haves", those items that are not negotiable, needs: those features that the home needs but may be negotiable (e.g. two bedrooms and a study or three bedrooms) and wants (nice stuff, but not a deal breaker). This initial meeting also gives you a great opportunity to find out more about the agent; let you see if you like that individual, assess their competence and see they are an individual you would feel comfortable working with, and trust enough to handle this very important transaction.
Hope this answers (or at least starts to answer) your question. Feel free to contact me if you want any additional information. Like many other agents, I work the entire Denver market area, and I work with all demographic and income groups.

Chuck Strauss
Keller Williams DTC
cell: 720-318-7598
CStrauss@kw.com
www.denerhomeguru.com - Sun May 11 2008, 05:49

Rg
Like others on this board answering your question, I really believe, now that you have been prequalified for a loan, is to find a reputable Realtor, one you can be comfortable working with. I believe that your goals should be more based on finding a great property. This new home should meet or exceed all of your "must haves" and many of your needs and wants. Equally important, if I am reading your question correctly, is value. This, in my opinion, does not mean finding a $170K condo that you can "steal" for $150, but finding a great home, at a truly great price. Your agent will assist you in negotiating price and terms and, working toward a win-win for both you and the seller. Your agent just may be able to find you a terrific property in the $150 neighborhood, that looks and feels like a much more expensive home. They exist, and inventory levels are good now, so there are choices. My advice: call a Realtor.

Chuck Strauss
720-318-7598
denverhomeguru.com
CStrauss@kw.com - Sat May 10 2008, 15:43

I like Eisenhower Park, Observatory Park, Bonnie Brea and Welshire, but there are others as well. - Sat May 10 2008, 15:32