December Monthly Newsletter

REAL news from your trusted Realtor!
CO 5th Strongest Housing Market in U.S.
How Can I Improve My Credit?
4 Reasons to Sell Now (and Buy)
8 Mistakes to Avoid as an Investor
Colorado in the News…Again



It’s true: Colorado is ONCE AGAIN in the news for being one of the strongest real estate markets in the entire country. It’s not surprising, as we have both affordability AND desirability, an extremely rare combination for any city.

This month’s newsletter is packed with some excellent articles below, including how to repair your credit, why now is a perfect time to sell, 8 awful mistakes to avoid as an investor, and why there are so many buyers right now!

Let me know if you have any questions!

Sarah Bowles
    720-83-SARAH (72724)

Colorado 5th Strongest Housing Market in U.S.!
According to NBC News, Colorado was 5th on the list of stateswith the strongest housing markets. With a 1 year home-price change of +7.3% and a median home price of $240,000, it’s hard to debate both the desirability and affordability of Colorado – a very rare combination!  The Colorado housing market was not badly damaged when the housing bubble broke.  Home prices dropped 9.5% from the first quarter of 2007 to the first quarter of 2012. Colorado home prices are forecast to recover at 3.7% between the first quarter of this year and the first quarter of next year. Over the longer period from the first quarter of this year until the first quarter of 2017, prices are expected to improve 2.4% per annum.

How can I improve my credit score right now?
As you know, your credit score is that 3 digit number that determines a lot in your financial life, including whether you can buy that beautiful house you’re drooling over. So how can you improve or keep your credit score high?
There are several factors that contribute to one’s score. Here are 5 ways to improve your credit score now:
  1) Have multiple types of Credit: Lenders want to see that you have a history of multiple types of credit. If you only have one credit card, open up another. If you’re going to buy a car, don’t pay cash but pay a good downpayment instead and get a loan. Your credit score will go up as you pay.
2) Pay down your debt: The more debt you have the riskier you appear to a lender. Paying down or paying off debt is a great way to make yourself more desirable for a home loan.
3) Be on time with every bill. Don’t be late! You can set up automatic payments from your checking account to pay off your credit card each month, and get those miles you need for a trip to Italy!
4) Do NOT under any circumstances open new lines of credit, no matter how small, before you start looking for a home.
5) Build your credit history: Younger borrowers are always at a slight disadvantage because they have a shorter credit history. But the longer you have lines of credit open (never close a line of credit! Even if you don’t use a card, just keep it open), the higher your score will be!

4 Great Reasons to SELL right now (and Buy)
If you are thinking about selling your home but still a bit unsure, here are 4 reasons that are knocking on your door:
1) Mortgage rates are laughably low right now for buyers. They are less than 3.5% right now for 30 years! 3% for 15 years. You better believe buyers are rushing to get loans right now, especially with how high rents are: it is actually much cheaper to buy than rent.
2) Inventory is down, which means you have less competition. 4 years ago the Front Range had about 27,000 houses for sale. Today there are 10,299 (and 5,870 others under contract!). There are alsodefinitely more buyers today than in 2008. Less supply and more demand mean 1 thing for you: more buyers looking at your house, and less competition of other sellers.
3) You could buy a bigger & more expensive house for the SAME MORTGAGE PAYMENT as you have now because of the lower interest rates – meaning your monthly payment would be just about unchanged.
4) Home prices have gone up in 7 consecutive months compared with last year, according to the S&P/Case-Shiller Home Prices Index released recently. Denver-area prices were up 5.4%!

Email or call me if you want some more information on selling your home.


8 Mistakes to Avoid as an Investor

Being a real estate investor is perhaps one of the most wealth-creating opportunities out there. There are also lots of pitfalls along the way. Check out these 8 for you to avoid!

1) Buying In Spite of Horrible Neighbors
2) Hiring Your Friends for Remodeling
3) Buying Houses With Title Issues
4) Hiring Contractors Based on “Trust Me”
5) Not Sticking to Your Numbers
6) Buying on Emotion
7) “Faking It”
8) Breaking Promises…and Breaking Trust

Email me if you want this whole article which breaks down every point!

Madison & Company Properties, LTD | 5600 S. Quebec St. Ste A-113 | Greenwood Village | CO | 80111
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