Monday, November 5, 2012

When is the Time Right for Investing in a Business or Home

The human being is a beautiful and successful thing.  We have evolved as humans through the millenia to a place where we are today running businesses and families and owning things, managing our assets and potential retirement scenarios, our estates, and ... well, here we are.

But the fact is, we're still wired for survival.  And one of those wires tells us that when times are really scary, we hold tight.  We hide.  We hoard.  We make it through the touch times by doing nothing but watch.

Ira Nottonson for the Daily Camera has written a very nice, very short piece about whether or not, in these difficult times, one ought to invest by borrowing money for a business or to buy a home.  His conclusion is simple.

You don't have to.  But as you do nothing, others are investing, and as your competitors, are going to pass you by and take your customers or your potential home.  Slow times are no excuse for not competing or getting ahead.

The real estate market right now is full of people buying homes and apartment buildings for investment.  Their right choices and actions during these opportune times will not guarantee their happy retirements.  But they're out there investing in great numbers, and they're making a lot of money in the process.

Our market can accurately be described as the selling prices being as low as they've been this decade, with rents on the rise, and interest rates at historic lows.  If you won't make the decision to invest today, you ought never invest in real estate in the future.  I can't imagine a better scenario than now. 

Read the piece.  He's a good writer with a good position.  Thank you, Ira.

By the way, Ira's right about something else.  As long as you're awake and taking control of your life, get out and vote.  Don't let those other people speak for you when you have something to say.

Call me as you need.  I'm always here for you.

Enjoy the day,
Mike Moger  

Friday, November 2, 2012

The Real Estate Market is Perfectly Balanced (Almost)

For years and years, a simple truth has ruled the world of negotiating between Buyers and Sellers in the home-buying and -selling market.  It involves a very little bit of arithmetic.

Take all the homes that are available on the market at this time (We call it the existing Inventory), and divide that number by the average number of homes that sold in that marketplace over the past couple or few short months (We call it the Absorption Rate).  Your answer will be the number of months of Inventory on the market.

That number is critical in any description of the marketplace, because the simple truth I mentioned is that, statistically, six months of Inventory is perfect.  When we have between five and seven months of Inventory on the market, neither the Buyers nor the Sellers have an advantage.  If the Buyer writes an offer that's not acceptable to the Seller, the Seller knows that she can wait it out, because another Buyer is around the corner.  If the Seller chooses not to accept the Buyer's offer, the Buyer is fine with moving along to another home.  He knows that another Seller might be more reasonable.

And the world of real estate sales moves ahead as it has for generations.

In the United States over the past four years, we have fretted over the real estate market.  We've all known that, as the real estate market comes back, the economy will more likely follow.  Until the home markets improve, we're stuck.

So OK, we're not stuck anymore.  Beginning about the end of July of this year, we've been seeing just a hair above six months of Inventory in the US market.  That's down from 9.3 months just a year prior, when being a Buyer was a very happy time.

As is true always, one number moves, and many others follow.  The time to sell a home has come down considerably, and home values are now on the rise. 

As I wrote above, there are truths in the marketplace.  Right now, if you actually look at the numbers, the overall US housing market is doing fine.

For more info, read the accompanying article in the Daily Camera.

In short, it's actually a very good time to make a move. 

Call me when you have a moment.

Enjoy the day,
Mike Moger
      

Thursday, November 1, 2012

An Italian Prince Owned my Home

How many people have told you that an Italian prince used to own their homes?  Wildshot guess -- nobody?

Here's an opportunity to own a 34-acre site just 30 minutes outside of Denver, CO that was originally owned by an Italian prince and his new wife, a Denver socialite.  Since 1989, it's been a successful Bed and Breakfast property.

With the addition of a 2000 square foot glass post and beam building, it became a perfect event center for weddings, reunions, and corporate retreats.  The poured concrete floors are heated, and two beautiful bathrooms and a prep kitchen make it an all day event out of the weather.



 The owners are looking to sell now, and honestly, I'm not convinced that the current use is absolutely its best use.  When I look at the big picture, this is a fantastic single family home.  Very unique, yes, but a great home all the same.

 
That event center building is a wonderful made-to-be-used-everyday place to work out.  You can invite a few dozen of your closest friends over every morning for your early yoga asanas. 
The lodge itself is perfect as a six-bedroom, six-bath log and stone home.  Another cabin, complete with its own bath, fireplace and hottub, rests quietly up the hill in the meadow.  I can see my visiting inlaws up there now.  There's another two-bedroom cabin on the property as well.

Truly, this home is beautiful.  Quiet, secluded, both wooded in the forest and sunny in the meadow, with great paved access and just a short drive into Denver from the Conifer area, this could be your private home. 

Take a look at the video for yourself. 
 


 


Of course, if you're looking for an inn and event center, you can become the innkeeper at Meadow Creek Lodge and Event Center.

Call me when you find a moment. 

Enjoy the day,

Mike Moger













Sunday, October 28, 2012

Save Electricity in Your Home

A few years ago, Lois and I decided to lower our electricity bill by replacing ALL of our existing bulbs to CFL's.  To Cosco we drove and bought everything we needed for the total relighting of our home.

I thought we probably had about 30-40 bulbs in the house.  Amazing.  84.  We found bulbs in places we'd never been in that house.

I have to say, though, that it made a great difference.  We saw in the next bill a significant drop, and I'll tell you now that over the years, we've saved hundreds of dollars on lighting costs alone.

The bigger savings came as our old appliances one by one passed onto that place where appliances go after they die.  We now have very much energy-efficient refrigerator, dishwasher, range and oven, and clothes washer and dryer.  The refrigerator made the most impact, but all told, our bill is half of what it used to be.

A good article in the Daily Camera gives you some tips that I wish I'd had before we went on our bulb-hunting venture.  With the new technologies, it's worth the read, and gets you moving toward saving some serious long-term money.

Call me as you need.  I'm always here for you.

Enjoy the day,
Mike Moger





Saturday, October 27, 2012

Save Home Energy Money, and the Earth

I'm a real tree hugger by nature (forgive the pun, but I couldn't resist), so have read into the art of saving money and the earth by keeping our energy use down.  And it truly is in part a combination of art and some detective work.

Many people think the best thing to do to save energy use is to go out and buy an expensive rack of solar panels or install a geothermal heating and cooling unit in the home.  Although that certainly helps, it's better to first begin with step one.

Step one has nothing to do with generating the energy you need.  It has to do solely with lowering the need for energy in the first place.  The great news is that this is much less expensive, and actually does dramatically reduce your energy costs.  After that, when you go out to buy the solar panels, you'll have fewer panels to buy.

The first and best thing to do to reduce energy consumption is to seal up your home.  You'd be amazed at how many places around your house are throwing heat outside in the winter months.

A few things to do are detailed in this article in the Daily Camera.  Common sense, downright cheap and effective.  No reason at all not to do everything on this list.

Call me as you need.  I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303.541.1920 office
303.859.4467 mobile
mmoger@wkre.com

Friday, October 26, 2012

Alfalfa's Market a Step Closer in Louisville

It's always nice to see things happen smoothly.

Looks like the Alfalfa's project, including the 22,000 sf Alfalfa's grocery store, along with 111 apartment units and another few thousand square feet of additional commercial space, has been approved by the Louisville Planning Commission.

Of note, the vote was unanimous and public comments on the negetive side were few.  It helped, I think, that the last proposal was much more massive, which brought out the public comments very much to the negetive side.  That proposal was voted down.

The article in the Daily Camera includes more info, and is worth the read.  Meanwhile, we await the City Council review coming up soon.

Call me as you need.  I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303.859.4467 mobile
303.541.1920 office
mmoger@wkre.com

Monday, October 22, 2012

How Exciting Are Taxes?

Everyone's focused on the race for the White House right now, as we all should be.  But there's one very important item that the two candidates actually agree on.

Your taxes are going to go up.

A couple years ago, Congress passed a tax holiday on the taxes you pay to support Social Security.  It was meant to be just that, a holiday, and you were intended to come back to reality after the vacation.  January is your reality when the tax break goes away, and you'll end up paying a bit more.

What's as significant is that neither candidate -- neither party, for that matter -- is showing any signs of wanting to extend it.

Here's a good article with some actual detail.

And now, back to the Presidential race, because there really are some differences between these two guys.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303-541-1920
303-859-4467 mobile
mmoger@wkre.com



Friday, October 19, 2012

What Will Congress Do (or Not) About This One?

Just another note to watch Congress for yet another reason.

President Bush signed into law a wonderful bit of taxpayer relief before he left office, allowing the taxpayer to not pay taxes for the forgiveness of debt in some instances.  Prior to this action, when a homeowner lost a home in a foreclosure or sold for less than what the existing lender needed to pay off the mortgage, the amount of the forgiven debt had to be claimed as additional income by that homeonwer when he filed his taxes the following year.

In short, "you don't have to pay me that last $100,000, but you now have to pay taxes on that amount as if your income was that much higher."

So someone who couldn't pay his mortgage would have to pay a boatload of taxes on money he didn't really make.

Thank goodness, due to the new law, those homeowners were forgiven from having to pay those additional taxes, as long as the money from the mortgage was used to buy the home, and not a car or vacation or whatever.

Many people don't know, though, that that law only goes until the end of this year.  If Congress doesn't pass an extension of that law, and the President doesn't then sign it into law, those high taxes are back on the table.

A good article for the potential for extending that benefit for the taxpayer explains a bit more.

I'll keep you posted on what Congress is doing (or not) as we move along.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
(303)541-1920 office
(303)859-4467 mobile
mmoger@wkre.com



Friday, April 13, 2012

FICO Scores

Your FICO Score is your credit score, that little three-digit number that is a whole lot more important than a detail when you want to borrow money.

Example: When you apply for an insurance policy, the insurance company will pull your credit history, and may use your score to set your premiums.

What to do if your score is a bit lower than you'd like? Watch the video to find out.



Call me as you need. I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303-541-1920 office
303-859-4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Thursday, April 5, 2012

Mortgage Market Update for 2012 April 5

The market for mortgages remained almost unchanged over the past week, but compare that to one and two years ago. You'll find some real savings over that short period of time.

Believe me, if you're looking to refinance or buy a home or investment, now would be the time to make that phone call and start the wheel turning.

The critical comparisons are in the video.



Call me as you need. I'm always here for you.


Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303-541-1920 office
303-859-4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Wednesday, April 4, 2012

The Best Offer

It's hard to believe, but true, that sometimes money isn't the biggest thing on the table when negotiating a real estate contract.

The video tells the story about Mary and Jack. After Jack passed away, Mary needed all the money she could get from the sale of her home. Turned out, that wasn't the most important thing she needed.

The story.



Call me as you need. I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303-541-1920 office
303-859-4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Friday, March 30, 2012

Market Update 2012 March 30 Plains of Boulder County

The Plains of Boulder County is showing fewer sales this year, but the more expensive homes are selling.

The video has the important numbers.



Call me as you need. I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303-541-1920 office
303-859-4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Thursday, March 29, 2012

Mortgage Interest Rate update for 2012 March 29

Mortgage Interest Rates are down a bit again this past week, as compared to the week before. We're making up for a tough week past.

The vital numbers are on the video.



Call me as you need. I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303-541-1920 office
303-859-4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Friday, March 23, 2012

Market Update 2012 March 23 City of Louisville

Louisville, CO, just east of the City of Boulder, seemed to be selling well at this time. But when I looked at the numbers, I was very much surprised to be wrong.

Then I looked a bit closer, and realized that sometimes, the numbers just don't tell the whole story.

The video here gives you the real story.



Call me as you need. I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303-541-1920 office
303-859-4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Thursday, March 22, 2012

Mortgage Rates Update for 2012 March 22

Mortgage Rates went up on average over the past week, according to the Freddie Mac survey from Monday and Tuesday past. Sorry.

But look at the bright side. Big Picture perspective, they're still very, very low on the historic scale.

The most important numbers are in the video below.



Call me as you need. I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303-541-1920 office
303-859-4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Friday, March 16, 2012

Market Update 16 March City of Longmont

The Longmont home market is heating up again, showing much better numbers than what we posted one year ago.

Following are some important and impressive numbers.



Call me as you need. I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303-541-1920 office
303-859-4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Thursday, March 15, 2012

Mortgage Rate Interest update 2012 March 15

Mortgage Interest Rates and costs change weekly and daily. It's Thursday, the day that Freddie Mac releases its weekly update, so I'm passing the most important numbers onto you.



Call me as you need. I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303-541-1920 office
303-859-4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Friday, March 9, 2012

Market Update 9 March 2012 City of Boulder

The market in the City of Boulder is getting better by the month. The video below shows the numbers.



Call me as you need. I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303-541-1920 office
303-859-4467 mobile
mmoger@wkre.com
Linkwww.MikeMoger.com

Wednesday, March 7, 2012

What are Points?

Somewhere north of 70% of the people in the US who buy homes have to or choose to secure a mortgage to do it. When they do it, the question of Points will come up. How many? For what interest rate? Do I have to pay them? Is it good to pay them?

Here's a video on Points. It should answer most of your questions.




Call me when you need. I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303-541-1920 office
303-859-4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Tuesday, March 6, 2012

My Commitment to You

The Super Bowl was great this year. Two strong teams, the score was close all the way through the game, Madonna performed, and of course the commercials were pretty good.

One commercial, though, stood out for me. The two-minute Clint Eastwood “It’s Halftime” commercial for American cars in Detroit was a winner.

I don’t care about your politics or whether or not this was a repeat of a past year’s Eminem gig. As I sat and listened to the message, it hit home. I’d even go so far as calling it motivating.

The media and economists in the US over the past four years have consistently blamed the housing market on holding the overall economy down. The housing market started it. The housing market needs to come back before jobs will come back in solid numbers.

Mr. Eastwood says that it’s halftime. I can picture us all in the locker room, waiting to hear the game plan.

But honestly, I’m tired of waiting. I’m tired of people waiting for the housing market to increase in value. I’m tired of people waiting for the lenders to open their vaults and take care of it all. I’m tired of people waiting for the President or Congress to take care of it all. I’m tired of people waiting for America’s jobs to come back from overseas, or the manufacturing sector to start hiring in strong numbers. I’m tired of people waiting for Germany or the European Union to take care of their issues, so the world economy can come back.

I’m tired of waiting.

So let’s look the dog in the face. If the housing market is holding the overall economy down, OK, I accept that. If the housing collapse caused it all, OK, I accept that. If the housing market needs to come back before jobs will come back in solid numbers, OK, I accept that.

Here’s my commitment to America. I sell real estate. Every day when I go to work, I sell real estate. I am what stands between the housing market and you. I’m the guy. If the problem needs to be solved, I’m the guy to solve it. If the housing market needs to improve, I’m the guy to make it happen. And I’m here now to make it happen.

Mr. Eastwood says that it’s halftime. I’m sorry to interrupt, but I’m not waiting for the game plan. We all know what we have to do. We all know the rules, the score, and exactly where the goal posts are. It’s time to play the game.

You live in a home. If it’s the perfect home, thank you. You’ve already done your share. If it isn’t, this place and time is the most beautifully situated market I’ve ever seen for you to act on your dream. If you can possibly do it, now is the right time.

Here’s my personal commitment to you. I sell homes and investments. Every day when I go to work, I’m here for you. I will do everything to find you the perfect home or investment, and will work to make the transaction the best that it can be for you. If you need to sell your existing home before buying your perfect home, I can make that happen.

It’s time to turn the American economy into a thriving, energetic opportunity for the American people.

I’m here for you. Now it’s time for you to step up. You have my phone number. The line starts at 8am every morning outside my office door.

Enjoy the day,

Mike Moger

Wright Kingdom Real Estate

303-541-1920 office

303-859-4467 mobile

mmoger@wkre.com

www.MikeMoger.com


Monday, March 5, 2012

The Perfect Home

Someone asked me this past week why I sold real estate for a living. Listen to this story, and you'll know why.



Call me as you need. I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303-541-1920 office
303-859-4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Monday, February 27, 2012

Earnest Money

Most everybody has to cut a check for Earnest Money when they put a home or property under contract.

So what is it? Where does it go? How much? And how can I get it back?!

Watch and learn.



Call me as you need. I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303.541.1920 office
303.859.4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Friday, February 24, 2012

Wow. It just can't be. A 3.8% federal excise sales tax when I sell my home?

It's true, but take a look at this. You'll find out that the impact is just not what you might expect.



Call my anytime. I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303.541.1920 office
303.859.4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Monday, February 13, 2012

What's an Escrow?

Someone asked me the other day what an escrow was. I was surprised, but shouldn't have been.

Every industry has a lingo that people on the outside don't understand, and people on the inside don't recognize that people on the outside don't understand. Sorry about that. We should be more professional, so that you actually know what's going on.

Following is a great explanation of exactly what an escrow is.



Call me when you need. I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303.541.1920 office
303.859.4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Friday, February 10, 2012

Jim Bryan, my first boss in the real estate industry, showed me a valuable lesson when I first started out selling homes.

Watch the video.



Call me when you need. I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303.541.1920 office
303.859.4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Planning for Your Child's College Education

I write for two reasons. The first is personal to me; the second may be personal to you.

Firstly, I became a grandfather for the first time just more than three years ago when Emily and my son, Abram, birthed their first child. Jane Alexandra Moger. What a beautiful little baby. Everyone is still healthy and happy, including me.

All of you grandparents know what I feel. Pride, love, gratitude, a sense of purpose as you climb a little higher in the family tree. Photos and words don’t make it; know simply that at this wonderful time, I’m in a very good space.

You think about things at times like this. You wonder how she’ll grow up, what interests she’ll have or pass by. Will she be happy and healthy, will she be the social butterfly or the quietly-take-it-all-in-from-afar little lady? Will she enjoy athletics, the arts or academics, and will she do well in them? Might she be the President of the United States one day? Will she even go to college?

Which brings me to my next point. I remembered this week while thinking about Jane something that I heard from a wise source many years ago, Larry Kendall from up in Fort Collins. As a real estate broker, he encouraged his clients to buy a home or condo for every child in the family before he or she reached the age of five. Ideally, the rents collected would pay the cost of owning the property, but even if not, the little money added to the yearly holding cost was money set aside for that little person’s future education. When the child reached the age of seventeen or eighteen, the property was sold, and the proceeds would be used for college.

Think about it. If you bought a property for $200,000, and the property paid for itself with the rents, you would own a $200,000 asset. A fifteen year loan would be paid off about the time your child was ready for college. Even if the market was flat over the entire holding time, your child could get a nice education for that.

If the property increased in value just 2% per year on average, you’d sell after fifteen years for almost $270,000. After paying closing costs, your son, daughter or grandchild could probably learn a lot with $250,000.

Call me to set a time to talk about this. Boulder real estate has held its own, even in what the wild media has been calling a horrible market for sellers. This is a good move on your part, whether you’re the parent or grandparent.

Know, though, that when you call, you’ll have to listen to me talk a bit about Jane. Grandparents do that, as they have earned the right over the years.

Enjoy the day,

Mike Moger

Wright Kingdom Real Estate

303.541.1920 office

303.859.4467 mobile

mmoger@wkre.com

www.MikeMoger.com

Thursday, February 9, 2012

The Piano

Sometimes bad things happen on the way to the closing table. Not often, but they happen. And when they do .......

Watch the video and hear the story.



Call me when you need. I'm always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303.541.1920 office
303.859.4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Wednesday, January 25, 2012

Common sense and the real estate market

I just talked with a past client, who mentioned something that I’ve heard a lot recently. He told me that his income had increased, and he wanted to move into a better home for his wife and him, but since selling prices have fallen, he just won’t do it. “I can’t take the hit and lose that much money at this time,” he said.

I love my clients and friends; they’re wonderful people, and many are experts in their respective fields of study and work. But some are not economists or business people, and haven’t thought these things through. Their reasoning just doesn’t make sense. Please allow me to explain.

As an example, let’s assume you want to move from a $300,000 home into a nicer $500,000 home. Let’s move back ten years to when the values of homes were increasing. If you bought the $300,000 home in 2001, and the market value over the next five years increased 10%, you’d sell your home at that time for about $330,000, profiting about $30,000. If you then bought the $500,000 replacement home five years later in 2006, it too would have increased in value the same 10%. You’d have paid about $550,000, and lost about $50,000 over that same period.

Looking at the big picture, you spent about $20,000 in order to own that nicer home.

Returning to our current market, if you had bought a home five years ago from today for $300,000, and the market value decreased 10% during that time, you’ll sell your existing home for around $270,000, losing about $30,000. When you buy the replacement $500,000 home, it will have decreased the same 10%, allowing you to pay only $450,000, and thereby saving you about $50,000.

That big picture now will have made you $20,000, rather than having spent it.

So the question must be asked: Would you rather have made the move five years ago, when the market was so good that you lost $20,000, or today when the market has fallen to the point where you make $20,000?

I ignored the closing costs because they’re pretty close to the same in either case. Much lower interest rates today make this example even better for you.

Like I said, I love my clients. I want them to benefit in owning their homes and investments.

So shouldn’t we all be moving about now?

Call me as you need. I’m always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303.541.1920 office
303.859.4467 mobile
mmoger@wkre.com
www.MikeMoger.com

Whether or not to buy or sell has nothing to do with the market.

I’ve sold real estate for decades, and one thing I know is that people don’t take the decision to buy a home lightly. They think it through. I’ve always said that Home is not a little thing; it’s a big thing.

I also know that perception is reality. If someone thinks something is true, it’s true.

I write today to question something that some people are thinking is true, but is not necessarily correct. That is the notion that no one should buy a house today. I hear it all the time. “The housing market is in crisis. Buying real estate today would be foolish.”

It is true that real estate, in addition to being your home, is an investment. It may increase in value, and it may not. It may even fall. Ask a whole lot of people in California, Florida, Michigan, Arizona and Nevada. Some of those places where values skyrocketed in the past decade have seen those values fall considerably.

In truth, about 35 counties in the entire country have lost a significant percentage of their values over the past four years. Most of the rest of the nation is fine. We forget sometimes that real estate values are like the weather. You can’t write a forecast for the country. I’d love to know that people just quit watching the Today Show. It’s not the same here in Boulder County, Colorado as it is in Phoenix.

But more importantly, people are missing another truth. The transaction for the Buyer is different in a fundamental way from the transaction for the Seller. The Seller needs Price. The Buyer needs Cost.

Unless you’re buying your home using the One Easy Payment Plan (all cash), cost will impact you much more than the selling price. You may pay for that home for thirty years, and the interest rate will impact tremendously what you pay over that time. Lower interest rates will make your new home cost oftentimes $100,000’s less than if interest rates were higher.

As I write this, interest rates are about 4.00%, 30 year fixed rate for good, qualified Buyers, the lowest in the history of our country and its economy. The reason? Losses in those 35 counties have created a housing crisis, and interest rates are a component of the greater economy. Unlike the weather, they actually are the same across the country. The foolishness of the largest mortgage banks and investment houses, the policies of the governments of the world, and massive buy-in by the American people over the past twenty years have all conspired to create for you one of the best opportunities in your lifetime to own the home that you really want.

Buying real estate today would be foolish? Really?

Just the facts. The whole and honest truth. You won’t hear that on the Today Show.

Call me if you need.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303.859.4467 mobile
303.541.1920 office
mmoger@wkre.com
www.MikeMoger.com

Monday, January 23, 2012

I can't afford to sell? Think it through.

I just talked with a past client, who mentioned something that I’ve heard a lot recently. He told me that his income had increased, and he wanted to move into a better home for his wife and him, but since selling prices have fallen, he just won’t do it. “I can’t take the hit and lose that much money at this time,” he said.

I love my clients and friends; they’re wonderful people, and many are experts in their respective fields of study and work. But some are not economists or business people, and haven’t thought these things through. Their reasoning just doesn’t make sense. Please allow me to explain.

As an example, let’s assume you want to move from a $300,000 home into a nicer $500,000 home.

Let’s move back ten years to when the values of homes were increasing. If you bought the $300,000 home in 2001, and the market value over the next five years increased 10%, you’d sell your home at that time for about $330,000, profiting about $30,000. If you then bought the $500,000 replacement home five years later in 2006, it too would have increased in value the same 10%. You’d have paid about $550,000, and lost about $50,000 over that same period. Looking at the big picture, you spent about $20,000 in order to own that nicer home.

Returning to our current market, if you had bought a home five years ago from today for $300,000, and the market value decreased 10% during that time, you’ll sell your existing home for around $270,000, losing about $30,000. When you buy the replacement $500,000 home, it will have decreased the same 10%, allowing you to pay only $450,000, and thereby saving you about $50,000. That big picture now will have made you $20,000, rather than having spent it.

So the question must be asked: Would you rather have made the move five years ago, when the market was so good that you lost $20,000, or today when the market has fallen to the point where you make $20,000?

I ignored the closing costs because they’re pretty close to the same in either case. Much lower interest rates today make this example even better for you.

Like I said, I love my clients. I want them to benefit in owning their homes and investments.

So shouldn’t we all be moving about now?

Call me as you need. I’m always here for you.

Enjoy the day,
Mike Moger
Wright Kingdom Real Estate
303.859.4467 mobile
303.541.1920 office
mmoger@wkre.com
www.MikeMoger.com