Tuesday, June 9, 2015

2 Out of 3 Renters Want to Own. What’s Stopping Them?


The Federal Reserve Bank of New York recently released the 2015 SCE Housing Survey. The survey revealed that most current renters would prefer owning and that 61.9% of them plan to buy a home within the next five years. 68.3% stated they would prefer owning (with 45.6% saying they ‘strongly’ prefer owning). When asked at what point in the future do they think they will own a primary residence:
8.2% said within a year
15.3% said in 1 to 2 years
38.4% said between 3 to 5 years
What’s Holding Them Back?
Of the 68.3% who would prefer to own, 2 out of 3 cited difficulty in getting a mortgage for the reason they do not own. However, many believe that the reason so many think that it would be difficult to get a mortgage is not fully based on current market realities. For example, studies have shown that there is confusion over the amount of money needed for a down payment. Research has shown that 40 to 50% of Americans believe that between 15-20% is the minimum required for a down payment. In reality, there are many programs available at 5% and even 3%. There are even some programs that don’t require any down payment (ex. VA loans). Others fear they need a perfect credit score or believe that the overall mortgaging process has become almost impossible. Actually, the Mortgage Credit Availability Index, a report from the Mortgage Bankers Association, has shown that, over the last seven months, access to mortgages has gotten much more available. And the NY Fed study suggests that some renters are waiting for interest mortgage rates to fall even further. Fifty percent of the renters surveyed believe mortgage interest rates will fall over the next year and almost 10% believe that they will fall by more than 1%. However, the reality of the situation is that Freddie Mac, the Mortgage Bankers Association and the National Association of Realtors are all projecting that rates will be significantly higher at this time next year. They are all predicting mortgage rates will be almost 1% higher!
Bottom Line
Many renters want to own their own home. Some are not moving forward based on misunderstandings regarding the mortgage process. If you are currently a renter who desires the benefits of homeownership, sit down with a local real estate professional to determine what your options actually are.
Bernie McDonnell GRI SFR CMHS
Synergy Realty Group          
Cell phone: (719) 659-9482
Email: bernie@coloradospringsrealty.biz
Website: http://coloradospringsrealty.biz
Synergy Realty Group - where we are not #1 - YOU ARE!  By the way, I'm never too busy for any of your referrals!

Insurance deadline looms for victims of 2013 Black Forest 



The second anniversary of the Black Forest fire on Thursday brings a deadline for many fire victims: it will be their last chance to sue their insurance companies and their last chance to seek to collect the full amount of money they are owed to replace belongings.
The fire started on June 11, 2013 and burned 14,280 acres in Black Forest, destroying 488 homes and killing two people.
Fire victims who are working to settle their claims should ask for an extension of the deadline verified in writing.  Most insurance companies will grant them if homeowners request them. 
If the insurer denies the extension, residents should contact the Colorado Department of Regulatory Agencies, which has encouraged insurance companies to grant those extensions.
Before the two-year deadline, policyholders should get written confirmation of the following:
- Your insurance claim will remain open and payable past the two-year anniversary.
- Your insurer will continue to honor its obligation to pay all benefits owing, including replacement values, past the two-year anniversary.
- Your insurer agrees that it will not enforce any "suit against us" provision that may arise at the two-year anniversary.

Thursday, June 4, 2015

5 Reasons You Shouldn’t For Sale By Owner


 In today's market, with homes selling quickly and prices rising some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers. Here are five reasons:

1. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:
The buyer who wants the best deal possible
The buyer’s agent who solely represents the best interest of the buyer
The buyer’s attorney (in some parts of the country)
The home inspection companies which work for the buyer and will almost always find some problems with the house.
The appraiser if there is a question of value

2. Exposure to Prospective Purchasers

Recent studies have shown that 88% of buyers search online for a home. That is in comparison to only 21% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

3. Results Come from the Internet

Where do buyers find the home they actually purchased?
43% on the internet
9% from a yard sign
1% from newspaper
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

4. FSBOing has Become More and More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 9% over the last 20+ years.
5. You Net More Money when Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission. Studies have shown that the typical house sold by the homeowner sells for $208,000 while the typical house sold by an agent sells for $235,000. This doesn’t mean that an agent can get $27,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer

Bernie McDonnell GRI SFR CMHS
Synergy Realty Group          
Cell phone: (719) 659-9482
Email: bernie@coloradospringsrealty.biz
Website: http://coloradospringsrealty.biz
Synergy Realty Group - where we are not #1 - YOU ARE!  By the way, I'm never too busy for any of your referrals!

Friday, May 29, 2015



If You are Thinking of Selling, Now’s the Time

If you thought about selling your house this year, now may be the time to do it. The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned the concept of supply and demand: the best time to sell something is when supply of that item is low and demand for that item is high. That defines today’s real estate market. Jonathan Smoke, the chief economist of realtor.com, in a recent article revealed:

“Our preliminary review of April activity on realtor.com shows that traffic, searches, and listing views are up more than 35% over last year. With 3 million jobs created and close to 1.5 million new households formed in the past 12 months, many more people want a new home of their own, and they want it bad. Their patience will be tested with tight supply—indeed, the No. 1 impediment of active shoppers in April was not being able to find a home that meets their needs.”

In this type of market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction including the inspection, appraisal and financing contingencies.

Bottom Line

As a potential seller, you are in the driver’s seat right now. It might be time to hit the gas.

Contact Bernie McDonnell today!  Synergy Realty Group   bernie@coloradospringsrealty.biz  (719) 659 9482  www.berniemcdonnell.com 

Monday, May 18, 2015

Buying a Home is 35% Less Expensive than Renting!

In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States. The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide!

The other interesting findings in the report include:

  • Interest rates have remained low and even though home prices have appreciated around the country (3.9%), they haven’t greatly outpaced rental appreciation (3.7%). “In the past year, these two trends have made homeownership even more affordable compared with renting.”
  • Some markets might tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy.
  • Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989. 

Bottom Line

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, so lock in your housing cost with a mortgage payment now
In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States. The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide!

The other interesting findings in the report include:

  • Interest rates have remained low and even though home prices have appreciated around the country (3.9%), they haven’t greatly outpaced rental appreciation (3.7%). “In the past year, these two trends have made homeownership even more affordable compared with renting.”
  • Some markets might tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy.
  • Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989. 

Bottom Line

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, so lock in your housing cost with a mortgage payment now.

Tuesday, May 12, 2015


Looking for a low-cost apartment? Good luck. Colorado Springs apartment rents climbed to near record high in first quarter.

Finding an apartment in the Colorado Springs area remains a challenge, and those that are vacant will continue to cost a pretty penny, a new report shows.  Rents averaged nearly $879 a month from January through March, the second-highest figure on record and an increase of almost $57 a month - or nearly 7 percent... Read more:  http://goo.gl/PRBSjK

Why rent? Purchasing a home means no more monthly increases! Call me today!

Bernie McDonnell GRI SFR CMHS
Synergy Realty Group          
Cell phone: (719) 659-9482
Email: bernie@coloradospringsrealty.biz
Website: http://coloradospringsrealty.biz

Monday, May 11, 2015


Attaining the American Dream: The 5 Financial Reasons to Buy




The American Dream of homeownership is alive and well. The personal reasons to own differ for each buyer, with many basic similarities. Eric Belsky, the Managing Director of the Joint Center of Housing Studies at Harvard University expanded on the top 5 financial benefits of homeownership his paper - The Dream Lives On: the Future of Homeownership in America. Here are the five reasons, each followed by an excerpt from the study:

1.) Housing is typically the one leveraged investment available.

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

2.) You're paying for housing whether you own or rent.

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”

3.) Owning is usually a form of “forced savings”.

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

4.) There are substantial tax benefits to owning.

“Homeowners are able to deduct mortgage interest and property taxes from income...On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5.) Owning is a hedge against inflation.

“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”

Bottom Line

We realize that homeownership makes sense for many Americans for an assortment of social and family reasons. It also makes sense financially. If you are considering a purchase this year, contact Bernie McDonnell, berniemcdonnell@coloradospringsrealty.biz who can help evaluate your ability to do so.

Wednesday, May 6, 2015

 el paso county colorado property taxes

Property taxes too high? Act quickly to appeal them. Cutoff date June 1, 2015
The El Paso County Assessor need comparable houses that have sold to change your property valuation. Problem is they are only looking from July 1, 2012 to June 30, 2014. What to do? Call a Realtor. They can get you comps from that timeframe. Don't have a Realtor, contact me...I'll help.

Bernie McDonnell GRI SFR CMHS
Synergy Realty Group          
Cell phone: (719) 659-9482
Email: bernie@coloradospringsrealty.biz
Website: http://coloradospringsrealty.biz
Synergy Realty Group - where we are not #1 - YOU ARE!  By the way, I'm never too busy for any of your referrals!

Monday, May 4, 2015

6 ways to WIN a bidding war in a hot housing market



The housing market is still in the early spring of recovery, but if you're a buyer, you know it's already hot out there.

1. Get your financial house in order—and get as much cash as you can.  Get preapproved for a loan. Now. Today's mortgage market is still relatively tight, and home sellers are leery of loans that might not be set in stone. If you can, bring cash to the table. Sellers are worried about appraisals coming in low and loans not closing, so be ready to cover the difference with cash.

2. Come in fast and strong.  Be the first offer, and don't insult. This is not the time to lowball, not with the lack of listings out there. Nothing turns a seller off more than someone undervaluing their prized possession. Come in either at or just slightly below asking, so they know you're serious.
3. Escalation clause.  This is an amount of money the buyer agrees to increase his/her offer, if there are other bids. So let's say the purchase price of the home is $400,000, but you expect it could go as high as $450,000. Put in an escalation clause saying you are willing to go as high as $460,000 (if you are). Make sure, however, that the clause also says the seller can only take the winning bid up to a level just above competing offers. In other words, if your competitors only go as high as $430,000, the seller can't expect you to pay $460,000, only, say, $431,000.
4. Preinspection.  Yes, this will cost you a few hundred dollars that may not come back to you, but yes, it can help in a supertight market. Ask to do a preinspection before submitting an offer.
5. Show the love.  If you love, love, love the house, then let the seller know that, either directly or through your real estate agent. Don't be afraid to write a letter, send a picture of your kids and be specific.
6. Be smart, not sappy.  Buying a home is one of the most emotional things you will ever do. That said, keep it to yourself. Make sure you've fully researched the market: Look at the most recent comparable sales ("comps") and compare prices to a year ago, visit the local school, have coffee at the closest Starbucks and chat with the neighbors. See if there is a local listing service and scroll through recent posts. Then don't let your emotions steal your wallet. Don't overpay because you get all wrapped up in the heat of the competition. I don't care what house you're looking at, it's not the only house you can ever be happy in.
Questions?  Contact Realtor Bernie McDonnell for more information (719) 659-9482

Thursday, April 9, 2015

MAP OF THE FARM

New development in northern Colorado Springs

Contact us for more information


YES!  the graph shows that mortgage availability has been increasing dramatically over the last 6 months.

And interest rates are still historically low

Many people can get a loan with $1000 down (military buyers' can do 0% down)

Mortgage payments can be 30% lower than renting.  

Contact me to get your home now!

Bernie McDonnell GRI SFR CMHS
Synergy Realty Group          
Cell phone: (719) 659-9482
Email: bernie@coloradospringsrealty.biz
Website: http://coloradospringsrealty.biz

 Synergy Realty Group - where we are not #1 - YOU ARE!  By the way, I'm never too busy for any of your referrals

Friday, April 3, 2015

Matt Buffington gives a testimonial for Realtor Bernie McDonnell 719-659-9482


Bernie McDonnell
Synergy Realty Group
(719) 659-9482
bernie@coloradospringsrealty.biz
berniemcdonnell.com
THE FARM

 Get more info on this new community in Colorado Springs - The Farm


The Farm is a brand new community in Colorado Springs with over 100 acres of open space and more than 4 miles of trails within the community.  Enjoy century old ponderosa pines, lakes where ducks and kayaks become neighbors and spectacular views of Pikes Peak.
It is located in northern part of the city conveniently located near 
I-25.

Contact Bernie McDonnell for more information

Bernie McDonnell
Synergy Realty Group
(719) 659-9482
bernie@coloradospringsrealty.biz
berniemcdonnell.com








Friday, March 27, 2015

How accurate is Zillow's estimates of home values?


How accurate is Zillow's estimates of home values?


Zillow reports it has an 8% median error rate across the country. That means that about half the Zestimates fall within 8% of the selling price, and about half fall out of that range.
To put that 8% into perspective, assume there’s a house that sells for $350,000. About half the time, Zestimates will show a fair price between $322,000 and $378,000, the 8% spread of about $28,000 on either side of that selling price. But the other half of the time, it could be outside that range. And as always when working with percentages, the value of the home directly impacts the range. For a home worth $500,000, that spread on either side of the selling price could be $40,000.
In certain parts of the country, that variation is even more...  Read more: http://goo.gl/Atpafr
I'm never to busy for any referral!