History Repeats Itself

We have been spoiled with these low interest rates throughout the past decade. Ten years may seem like a long while, but in the scheme of things it is just a blip in time. It is, however, long enough for many people to forget the alternative—rates double or more what they are now.


For those of you just “waiting it out”…what are you waiting for? Rates below 3%? Unfortunately many prospective homebuyers I’ve come across don’t do the math as to how a higher rate will directly affect them. It may be the difference between buying a townhome instead of single family, or expanding that “ideal location” criterion. A 1% increase in the interest rate, such as from 4% to 5%, is the equivalent of a 10% increase in the purchase price on a monthly payment basis.

And many won’t realize it until it’s too late. Now truly is an incredible time to buy. I’m not saying it’s going to be the 1980s again anytime soon with rates in the mid-teens…though my daughter does have a pair of leg warmers…but we need to realize the 4% mortgage rates are the pleasant exception, not the norm. Having rates climb a few points and thus have a drastic effect on home affordability is quite possible in the near future.

Once rates do start to climb again (and they will), are we going to see people “wait until they go back down”? I’m sure we’ve all heard and possibly forgotten the famous quote, “Those who cannot remember the past are condemned to repeat it.”

What are you waiting for?

The Long and Short of Short Sales

Being in the real estate business, I come across a lot of interesting situations—really, no two transactions are alike. While many are upbeat and uplifting, like seeing someone lay eyes on their dream home, others are a sad but true reality when homeownership and hardships meet.


We’ve all been familiarized with short sales and foreclosures by the media, but as a Certified Distressed Property Expert (CDPE) I see it firsthand. Part of my job is to help homeowners avoid the tarnishing effects of a foreclosure by opting to do a short sale instead. Short sales have many benefits over a foreclosure, such as being able to buy another home within two years of closing (as opposed to waiting seven years with a foreclosure…who knows how high rents will be then), a credit score ding of 30-130 points instead of a whopping 200-400 points, negative consequences with auto and other loans, and the list goes on.

One of the many myths out there about short sales is that they are impossible and never get approved. Trust me, I’ve helped buy and sell short sale homes before and negotiated with the banks myself—they can be done. Having someone well-versed in the intricacies is critical though to a successful short sale for both buyers and sellers. They are indeed possible.

One fact is that short sales often are great deals because there are less buyers for them since some people steer clear, thinking they’re going to be a hassle. Are you looking for a deal? I just listed this short sale in Longmont at 6 Dartmouth Circle. It is in a great neighborhood on a beautiful lot, ready for your personal decorating touches!