What should my asking price be?

I posted this article exactly one year ago! Such a very important topic I think it is a good idea to post it again!!!

Here are some home pricing pitfalls...When it's time to sell your home, it's very easy to be snared in the overpricing trap. After all, you want top price for your home. With this very dffucult market for sellers you need to be very careful not to price your home too high. Given that, it's logical that the asking price you set could be higher than "fair market value." Unfortunately, you probably won't realize it's too high until much later.Here are just a few of the disappointments you'll be facing with an overpriced house:Responses to your ads will probably be slow, since the public recognizes overpricing. Remember, people buy by comparison.Some prospects who are attracted may be the wrong ones. They will be attracted because they're looking for a home priced the same as yours – but with MORE features.Very few buyers will even make an offer on an overpriced home. The reason? Even if you accept their lower offer, they aren't getting a bargain since the final price is probably no less than "fair market value."Your home will help buyers make a favorable decision on other homes that are priced fairly. Do you really want to be the example that drives people elsewhere?If you do find a buyer at your price, their mortgage application could be rejected because of a low appraisal; the house simply doesn't meet the standards that the price indicates. This has become a huge factor in todays market.This all sounds rather bleak, so what can you do to solve the pricing issue? Work with an experienced professional who knows the market in your neighborhood. Take advantage of the research and advice your real estate agent can offer, and you'll be on your way to setting the right price for your home.Jon

Denver one of smartest places to buy

Some great news for Denver market! Click on the link above to see how Denver ranked in the top 10 by Forbes magazine.

Also, this link here is a quick video about the market in Denver. There are some definite bright spots to see here. Denver's average selling price is $255,877 up over 13 percent from a year earlier. Sales activity is strong for homes under $250,000 as well! This is a very accurate video about Denver market....http://cbs4denver.com/video/?id=67146@kcnc.dayport.com

Latest update on Tax Credit

A MUST READ!!!
I have been asked to pass on accurate information regarding the homebuyer tax credit that is available until April 30, 2010. I want to make sure my clients know the latest changes to help you take advantage before it’s too late. This is truly a wonderful time to think about making a move to another home or buying your first home! This is a true $8,000/$6,500 tax credit and just like money given to you!! With interest rates at historic lows and housing prices hitting bottom DO NOT MISS OUT ON THIS SHORT WINDOW OF TIME TO BUY OR SELL A HOME!!!
HERE IS THE LATEST MOST ACCURATE INFORMATION ON THE HOME BUYER TAX CREDIT….
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:
· Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
· Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040
Recent news:IRS Releases Revised Tax Forms, Instructions for Claiming Tax Credit (Jan. 25)Economists' Podcast: Lawrence Yun Discusses Market Recovery, the Tax Credit, and Employment (Jan. 12)Economists' Commentary: Existing-Home Sales and the Tax Credit (Dec. 22)
Who Qualifies for the Extended Credit?
· First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
· Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.
Which Properties Are Eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Is Available?
The maximum allowable credit for first-time home buyers is $8,000.
The maximum allowable credit for current homeowners is $6,500.
How is a Buyer's Credit Amount Determined?
Each home buyer’s tax credit is determined by two additional factors:
1. The price of the home.
2. The buyer's income.
PriceUnder the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.
Buyer IncomeUnder the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.
These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.
Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.
Please feel free to call or email me any specific questions you may have. I would love to hear from you!
Many blessing to you in 2010!!!

2010 is here!

I finally got this blog up and running again after some technical difficulties the last few months. Some of you have asked me how it has been going personally and in the Real Estate business. Personally my family and I are all doing great! Here is a recent picture of us all....

I am looking at an incredible 2010! My kids are getting so big now and we are enjoying each day with them.

The Real Estate business has been very good and going to be great in 2010! Prices are holding steady for sellers and for buyers there are some great buys with foreclosures.

It is my commitment to be a true Real Estate professional for you and keep you updated regularly through this blog.

Many blessings to you this year!

Jon Urban