Aurora, CO Real Estate News

By Lance Petrillo
(Your Castle Real Estate)
What is a FICO score?FICO stands for Fair Isaac Corporation, a company that created the most used credit scoring model in the United States.  An individual’s credit score is calculated through a statistical algorithm and is used as a factor in determining the likelihood of a borrower defaulting on a loan.  FICO scores are generally used for obtaining mortgages, car loans or consumer credit.  The scores are provided from the three major credit reporting agencies: Equifax, Experian and Transunion.  Typically, there is a variance amongst the scores since each agency has a slightly different scoring formula.  FICO scores range from 300 – 850, with higher scores being considered less risky.  For mortgage lending purposes, any score over a 680 is considered good and above a 750 is considered ...
Comments 0
By Lance Petrillo
(Your Castle Real Estate)
There are some signs of strengthening in our Denver market.  The metro area's inventory of available resale housing decreased 20% to 23,120 units in October from October 2007.  Some of this reduced inventory is attributed to homeowners taking their properties off the market in frustration because their property is not selling, but lower inventory implies a strengthening market.  Remember, the Denver area had housing inventory of 31,989 units in July 2006. Home sales rose 14% to 4,265 in September compared to the same month last year.  This is due almost entirely to the lower-end of the market (under $180K) selling like hotcakes. October's median selling price for single-family homes decreased 12% to $206,000 from the same month of '07, and was down 4.7% from September's median of $216,1...
Comments 0
By Tatyana Sturm, Denver Realtor, GRI, Denver/ Aurora CO Relocation
(Exit Realty DTC)
Exercise your dog and socialize your human at the Grandview Dog Park, located at: 17500 E. Quincy Ave. Offering 5-acres of "off-leash" fun, the dog park features a separate small dog area, fun agility course, and shade!  The dog park is located off Quincy Avenue, ¼ mile east of Buckley Road. Pit Bulls and other restricted breeds must be "on leash" when using the Dog Park. Grandview Dog Park hours are dawn to dusk. Remember - Dogs are required to be "on leash" in all other parks and open space areas throughout the city! Colorado Home Buyers, to receive your free Colorado home buying CD email me at:tatyana@exitrealtydtc.com or call 720-350-5909 Colorado Home Sellers, to receive your free Colorado home marketing CD email me at: tatyana@exitrealtydtc.com or call 720-350-5909 For the most co...
Comments 0
By Tatyana Sturm, Denver Realtor, GRI, Denver/ Aurora CO Relocation
(Exit Realty DTC)
This Thursday, December 11th at 4 pm, the Tallyn's Reach Library located at on the NW corner of E. Arapahoe Rd. and S. Aurora Parkway, will be hosting an activity: make a fun pinecone ornament for your Christmas tree.  This will be for all ages.   The Library has Storytimes on Fridays at 10:30 am. (ages 3-5 years, limit 30 children)  Hours: MonTueWedThuFriSatSun Closed 10 a - 6 p 10 a - 6 p 1 p - 9 p 10 a - 6 p 10 a - 6 p Closed   Colorado Home Buyers, to receive your free Colorado home buying CD email me at:tatyana@exitrealtydtc.com or call 720-350-5909 Colorado Home Sellers, to receive your free Colorado home marketing CD email me at: tatyana@exitrealtydtc.com or call 720-350-5909 For the most comprehensive Colorado Real Estate map search please visit: www.5280exit.com. To see feature...
Comments 0
By Gilbert Wheeler
(Your Castle Real Estate)
Investing in Real Estate 4 - Small (2-4 units) Apartment Building This blog will discuss a type of real estate investment, small apartment buildings, in the Aurora  area in Denver.   What this investment is:  Purchase of duplex, triplex or quadplex to be rented to tenants, usually for 6-12 month terms.  Usually what the rental home / condo landlords graduate to.  In most markets they cost a little more than a rental home, but are much more likely to cash flow on the average month.  Less cash flow risk; if one unit is empty you have other tenants that still help you with the mortgage payment so it doesn't all come out of your pocket.  Many owners will start to delegate some of the property management tasks to an on-site assistant (typically the most responsible tenant), such as yard main...
Comments 0
By Gilbert Wheeler
(Your Castle Real Estate)
This blog will discuss a type of real estate investment, rental condos or rental homes, in the Aurora area in Denver.   What this investment is:  Purchase of a residential property to be rented out to tenants, usually on a 6-12 month lease term.  This is how most new landlords get started.  You can hire out all of the property management functions, but in many cases you will do many of them on your own.  There are smaller down payment requirements than for larger rental buildings.  The purchase process and financing process is very similar to what you experienced buying the home you live in now.  It's a great way for beginners to get started.   Equity needed:  Currently 20% - 25% Downpayment.  In some cases you might be able to do it with 10% down, but expect the second mortgage to be a...
Comments 0
By Gilbert Wheeler
(Your Castle Real Estate)
This blog will discuss a type of real estate investment, assignments, in the Aurora area in Denver.   What this investment is:  An investor who is interested in Assignments gets a property under contract for an attractive price then assigns the contract to another buyer, usually another investor.  The first investor will be paid a fee for the work.  If you don't have much equity to work with, and/or if your credit power is limited, assignments can be a way to get started in real estate investing.  You will need to have a strong "sales" personality to succeed at it, though.    Equity needed:  None, just earnest money.   Importance of credit:  Not important, since you are not purchasing the property yourself.   Importance of experience with contractors:  Not important.  The person that yo...
Comments 0
By Gilbert Wheeler
(Your Castle Real Estate)
Special considerations for Investor loans The talk around the water cooler these days is all about LOANS. Who can get them? At what price? What if I already have a few loans, do I still qualify?  A year or two ago the question was at what price do I get a loan (those were the days!).  Today it is "am I still in the game?"       Here's the deal:  if you have an owner occupied loan and 3 investor loans you cannot buy any more properties and get Fannie Mae / Freddie Mac financing, meaning you can't get a conventional 30-year fixed loan. Now, my hope is that someone reads this and tells me I'm wrong. That would be great!  But as far as I know that is the case.      Where does this leave you?  You can pursue loans that are warehoused by lenders, meaning they are not sold on the backend to Fa...
Comments 0
By Gilbert Wheeler
(Your Castle Real Estate)
  A LOT of agents don't advise their clients to get sewer scopes when they purchase a property. This is a major mistake.  A broken sewer can cost between $3,000 - $10,000 dollars to repair and it only costs $99 ($99Rooter - others are more expensive) to have a tech put a camera down the sewer pipe and videotape the sewer all the way to the mainline. This will tell you  and the-buyer what the condition of the sewer is.      So let's see, we pay to have the furnace inspected but a new furnace will only be about $2,000. We pay to have the roof inspected but that's probably a $4,000 job. So why don't we always inspect the sewer?  One reason is because, let's face it,  Realtors want closings. Many figure if they keep their mouth shut and don't go out of their way to recommend a sewer scope ...
Comments 0
By Gilbert Wheeler
(Your Castle Real Estate)
  A lot of clients ask me how to figure out what market rents are in a neighborhood. This is a critical input into the calculations an investor needs to make in order to determine what their return on investment will be on a rental property. So you don't want to screw this up!  Unfortunately, this is one of the many figures new investors get wrong.     One place people go to get rents is Rent-o-Meter. Rent-o-Meter is billed as an online resource to get accurate market rents. In my experience it is anything but!  However, I have a fairly simple solution. Multiply what you see on Rent-o-Meter by  80%  and you'll probably be close. I can't explain why but I find rents on Rent-o-Meter to be about 25% high, so multiplying their rents by 80% will get you close (do the math, it works out).   ...
Comments 0
By Gilbert Wheeler
(Your Castle Real Estate)
Investor Series:  Things to look for when you look at roofs   Have you ever driven through Aurora North looking for a rental property and taken a close look at the roofs?   Here's what you'll see: a bunch of 1950's ranches in varying states of repair or disrepair, lawns that are often grassless, old handcrank windows and roofs in almost perfect condition!  This surprised me at first and perplexed me for a long time.  Why, in a neighborhood devastated by foreclosures with properties with massive deferred maintenance are the roofs in such condition?  Really!  Stand in the middle of a typical street and looking at 10 roofs simultaneously, you'll be amazed. Well, it turns out the answer is pretty simple. There was a huge hailstorm in the mid-90's and most of the roofs were replaced by insur...
Comments 0
  As investors we face a number of very real and very scary challenges. Making sense of this market is no mean feat and one has to be very careful with his or her investment. However, we usually think about danger as financial. Unfortunately, on rare occasion it can be even worse than that. The majority of the homes investors are buying these days are vacant and once in a while people break in and live in these properties illegally.  The last thing you want to do is walk in on someone camped out in a house, perhaps conducting illegal an activity.      This is no joke, you want to be HEARD when you walk into a property that is supposed to vacant. So make a lot of noise when you're at the front door. I always knock loudly before entering.  Stomp your feet a little. Yell "Hello!" a couple...
Comments 0
By Gilbert Wheeler
(Your Castle Real Estate)
  A lot of investors ask what an egress window is and when one is needed. Technically, it's a window for a room below grade that a municipality has deemed large enough to be safe for exit in case of emergency.   While there are some variations, the window needs to be large enough that a firefighter with an oxygen bottle on their back could get in, then carry out an injured person in a fire.  Most often, it's associated with a basement bedroom window, making it a legal bedroom. Basement bedrooms without egress windows are illegal.  Installing an egress window makes them legal.      The confusion is that different cities, counties and agencies have different size requirements and height-above-floor requirements for these windows. Therefore, before you start cutting into the concrete found...
Comments 0
By Gilbert Wheeler
(Your Castle Real Estate)
You walk into a property you're looking to buy and rent and you walk down into the basement and voila! you find a full second kitchen.   Great!  You start calculating how much rent you could get if you could rent the downstairs separate from the upstairs and the cash flow is out of this world!  But wait, there are a number of very real problems with this scenario.     First of all, it's illegal unless the property is zoned for more than one tenant and the property has been converted to non-residential use. But there are even more practical reasons why having two separate tenants is often not a great idea. The first is the utilities. Since it's a house there will only be one bill for Excel and water. Who's going to pay it?  Can you really get the tenants to pro-rate their share if you pa...
Comments 0
By Tatyana Sturm, Denver Realtor, GRI, Denver/ Aurora CO Relocation
(Exit Realty DTC)
Every year the Greenfield Home Owners Association puts on the Greenfield Fall Festival.  This year Team 5280 was there and sponsored the Chili Cook-off and provided face painting and Treat Bags to the Kids of Greenfield.  It was held at the Greenfield Clubhouse on October 25th.  There were many different activities for the entire family.  Trick or Treat Street around the lake Pumpkin Patch Apple Bobbing Costume Contest Pie eating contest (which was our favorite, hilarious) Face Painting (By TEAM 5280) Cotton Candy and Popcorn Spin Art Chili Cook-off Tons of food and snacks provided for all I am so proud of the Greenfield Community and to be a part of the Fall Festival.  I wanted to make a special thanks for all the hard work by Heather Prue of the Greenfield Social Committee.       Colo...
Comments 1
By Deb Reinhard
(Atlas Real Estate)
  Source: Your Castle Real Estate analysis, MLS data   The big message has not changed since last quarter - it's still a great time to be a buyer in the condo market. Prices are at a three year low in many areas, and interest rates on mortgages are still historically low.The average condo price in Metro Denver declined 4% between 2006 and 2007: from $187K to $180K. Homes dropped 3% in that time period. Looking just at the first nine months of 2008 vs. the same time period in 2007, the price dropped 6%: from $181K to $172K. Homes dropped 11% in that time period. From their peak prices in 2006, condos have dropped around 9.5% while homes have dropped 12%. These numbers will be slightly different than Metrolist, as they are just Denver Metro and don't include outlying areas like Fort Coll...
Comments 0
By Deb Reinhard
(Atlas Real Estate)
    The average home price in Metro Denver increased +2% in the full year 2005 to the full year 2006. Comparing 2006 to 2007, the average home price across the metro dropped 3%, to $303,000. The average price in the first three quarters of 2008 was $272,000 vs. similar period of 2007 was $308,000: an 11% decrease. These numbers will be slightly different than Metrolist, as they are just Denver Metro and don't include outlying areas like Colorado Springs or Boulder.Much of the decline is a mix issue. For example, sales volume of homes over 4,000 square feet has plummeted in the last twelve months. Middle-market homes have generally been steady in their sales volume. Very inexpensive homes under 1,000 square feet have greatly increased their sales volume. You can explain it to your clien...
Comments 0
By Deb Reinhard
(Atlas Real Estate)
A lot of investors ask what an egress window is and when one is needed. Technically, it's a window for a room below grade that a municipality has deemed large enough to be safe for exit in case of emergency.   While there are some variations, the window needs to be large enough that a firefighter with an oxygen bottle on their back could get in, then carry out an injured person in a fire.  Most often, it's associated with a basement bedroom window, making it a legal bedroom. Basement bedrooms without egress windows are illegal.  Installing an egress window makes them legal.      The confusion is that different cities, counties and agencies have different size requirements and height-above-floor requirements for these windows. Therefore, before you start cutting into the concrete foundat...
Comments 0
By Deb Reinhard
(Atlas Real Estate)
You walk into a property you're looking to buy and rent and you walk down into the basement and voila! you find a full second kitchen.   Great!  You start calculating how much rent you could get if you could rent the downstairs separate from the upstairs and the cashflow is out of this world!  But wait, there are a number of very real problems with this scenario.     First of all, it's illegal unless the property is zoned for more than one tenant and the property has been converted to non-residential use. But there are even more practical reasons why having two separate tenants is often not a great idea. The first is the utilities. Since it's a house there will only be one bill for Excel and water. Who's going to pay it?  Can you really get the tenants to pro-rate their share if you pay...
Comments 0
By Deb Reinhard
(Atlas Real Estate)
A LOT of agents don't advise their clients to get sewer scopes when they purchase a property. This is a major mistake.  A broken sewer can cost between $3,000 - $10,000 dollars to repair and it only costs $99 ($99Rooter - others are more expensive) to have a tech put a camera down the sewer pipe and videotape the sewer all the way to the mainline. This will tell you  and the-buyer what the condition of the sewer is.      So let's see, we pay to have the furnace inspected but a new furnace will only be about $2,000. We pay to have the roof inspected but that's probably a $4,000 job. So why don't we always inspect the sewer?  One reason is because, let's face it,  Realtors want closings. Many figure if they keep their mouth shut and don't go out of their way to recommend a sewer scope tha...
Comments 0
Explore Aurora, CO