Snuggle-Up! and Blog

The Herman Group is proud to announce the launch of Herman Group Real Estate!  Formerly known as Prudential Colorado Real Estate, Prudential Professional, REALTORS(r) and Prudential Cheyenne; Herman Group Real Estate is poised for explosive growth throughout the United States.

We are excited to be the front runner of the Next Generation of Real Estate!  The Herman Group has grown to over 1,000 agents in the past 5 years in Colorado and Wyoming with a model that provides full real estate services to agents at a very low cost to them.

The secret of the huge success of The Herman Group has been the combination of cutting edge technology, marketing tools, and happy agents.  Our agents now enjoy a 95% commission with all the support that typically would cost them 30% to 40% of their commission at other real estate companies.   For $49 per month, we deliver all the tools they need.

In 2008, The Herman Group added over 530 agents to our roster making us one of the fastest growing real estate companies in the US.  In 2009, we have expanded to Florida and in the next 90 days will be expanding to Boulder, Ft. Collins and other markets throughout the state.  Formerly operating under the Prudential franchise, Herman Group Real Estate has made its mark as an independent brand and continues to add services and support in a rapidly changing real estate market.

One of the ways we have retained our agents over the years is by keeping abreast of changes in technology.  Instead of using tools that were state of the art 5 years ago, we are constantly updating and upgrading our technical support through websites, search engine optimization, pay per click, internet leads, and the internal staff to scrub and incubate the thousands of raw leads in order to pass the diamonds in the rough to our technology savvy and progressive REALTORS. 

Sellers who list with Herman Group Real Estate agents know that the astounding exposure their listings receive through our internal marketing efforts drives buyers to view their homes.  Our agents can provide statististics on website hits, visual tour views, and live feed market stats for their listings and more, making the Herman Group Real Estate agent an invaluable resource for their clients.

With a Short Sale partner, an REO division with back office support and software, paperless transaction software, RELO leads, in-house title and mortgage, showing services and 7 day/week broker support, Herman Group Real Estate agents are poised to be the leaders in the Next Generation of Real Estate.

If you would like more information of know an agent who would like to join this exciting opportunity, please contact Sue Dolquist, VP at 303-597-3711 or suedolquist@hermangroup.net

News Flash! Prudential Professional, REALTORS(r) is no more!

At our quarterly sales meeting this afternoon, we were told effective immediately that we, my brokerage, has broken with Prudential!

We are now part of a new brokerage that's going nationwide. Our CEO opened, last month, three new brokerages in Florida. That and the ones he already owns in Arizona, Colorado, and Wyoming constitute our new brokerage: Herman Group Real Estate. There are over 1000 agents, nationwide. Plus, our CEO is planning to open up new offices in Aspen, Boulder, and Pueblo, Colorado, immediately!

Whoo! Change can happen in a New York minute. If you don't like what's happening now, stick around, just like the weather, change is coming.

How do you feel about working for a brand new brokerage? A non-established brand? I really want to hear what you think. Should I hang in there to see how it goes, or run to another brokerage?

I don't have the new logo yet...but will up load it tomorrow. It actually eyecatching.

My yesterday!

And My Today!

This info is so good, I just had to post it here!

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Definitely Maybe

By Lawrence Yun, Chief Economist, NAR Research

A bit of good news appeared for housing recently. Pending home sales rose in December - after taking a sharp hit in November. The latest index of 87.7 is an increase of 6.3 percent from November's reading and is up 2 percent from the index registered in December of 2007. (See page 3 for more details.) Areas that are improving in terms of pending sales include many California and Florida markets. San Diego in particular is coming around very strongly, essentially experiencing a doubling in contract signings in December compared to the same month a year ago. In the Northeast, Providence RI has been a consistent gainer over the past several months. More markets in the Midwest are appearing to turn around for the better: Akron, Cleveland, Lansing, Louisville, Minneapolis, and Wichita all posted year-over-year gains in pending sales. Northern Virginia also has been tallying up higher figures. Some Maryland counties in the Washington DC metro area have also seen improvement. Oklahoma City and Tulsa, where the job market has been doing better and home prices have always been highly affordable, have also posted gains.

Other good news: existing-home sales rose 6.5 percent in December to a seasonally adjusted annual rate of 4.74 million units. While it's true that year-over-year resales are still down (3.5%), any increase in sales activity was certainly welcome. Inventory at the end of December fell notably by 11.7 % to 3.6 million homes available for sale, down from 4.16 million in November.

Despite some bounce back in unit sales, the median existing-home price in Dec was $175,400 - a decline of 15.3 percent from December 2007 median price. That is the largest price decline since 1968 when NAR began tracking median sales prices, and likely the largest price decline since the great depression. The proper causation is that lower home prices have begun to stir buyers off their seats.

The rise in December pending sales, while positive news, came one month after the lowest index reading since the creation of the index in 2001. Remember, actual home sales closings generally occur one to two months after a contract is signed. The January closing sales are hard to predict given the very weak November pending sales and some partial rebound in December. Also note there is not a direct one-to-one correlation between pending sales and closed sales.

Forecasting is a hazardous sport at times. With so many pieces of the puzzle now moving in opposite directions, the crystal ball reading has become even cloudier. Job cuts have been severe, with 3.5 million lost already, but affordability conditions are at the highest in nearly 40 years. Mortgage rates are at historical lows, but obtaining an approval has become a lot more difficult. Even FHA loans are putting up tighter conditions for home buyers, even those who are not overstretching. In the past, a person with a reasonable credit score and paying not more than 30 percent of their income on housing would have easily been approved for an FHA loan, precisely because of the government guarantee. That is not the case today - at least according to many REALTORS® to whom I have spoken.

I project soft existing-home sales in the first quarter before steadily trending up later in the year. By the fourth quarter of 2009, existing-home sales could be easily 10 to 20 percent higher than a comparable period the year before. Given the home buyer tax credit - without the repayment feature - I would not be surprised to see even a 30 percent jump. Rising home sales will be critical to trimming inventory, including the new foreclosed properties that will be reaching the market in 2009. Because of continuing soft home sales for at least few additional months, the inventory will remain bloated and pressure home prices to be weaker over the next six months. It should also be noted that the current lower price reading is partly driven by more sales activity in low-priced neighborhoods and far fewer sales in higher-priced neighborhoods. The problems in the jumbo mortgage market have stalled activity on the upper end.

The economic assumptions are that the Federal Reserve will hold pat and keep the fed funds rate at essentially zero for the remainder of the year. The economy is in a harsh recession and consumer prices will actually fall in 2009. The Fed has no worries on the inflation front, thereby affording it to keep rates low. The 10-year Treasury will remain close to 3 percent, while 30-year mortgage rates will average close to 5 percent. The low rates are for conforming loans only and not for jumbo loans. To bring jumbo mortgage rates down, the Fed can use its newly created lending facility (called TALF) to actively purchase jumbo mortgages directly. The Fed should, however, be very mindful to keep a watch on inflation just in case. With so much liquidity pumped into the system, a modest pickup in the velocity of money could quickly push inflation to an uncomfortable zone. High inflation will lead to high mortgage rates. Inflation must be nipped in the bud quickly should it appear. The jobless rate will rise close to 9 percent before the positive impact of a stimulus package kicks in. That will correspond to about 4.5 million net job losses from the peak employment at the end of 2006. The stimulus will be expensive, but it is needed to turn the economy around. We cannot afford another year of such job losses.

As I have said many times, the economy simply cannot recover without a housing market recovery. Measures to stabilize home prices must be aggressively pursued. Those include modifying mortgages to lessen foreclosure pressures and, more importantly, getting a new set of buyers into the market to soak up the inventory. Such strong housing stimulus components will help housing recover. The economy will then recover in a sustainable way. The budget deficit will steadily get trimmed as more workers pay taxes rather than collect unemployment benefits. America can and will survive through this mess.

For the latest economic forecast insights and analysis, visit www.realtor.org/research/research_commentary

Copyright National Association of REALTORS®, Reprinted from REALTOR.org with permission.

This is a re-blog from Amy Cavender, Simplified Mortgage Solutions, with her permission. It's good information!

I had an agent forward me an article that was written in Better Homes and Gardens about credit scores.  My company sponsors a credit class presented by Jim Kaiser with Advantage Credit.  I forwarded him the article because I felt consumers would not even consider a mortgage if their score was below 780.  That's just not the case.  Of course, we do have stricter guidelines compared to a year ago.  VA and FHA financing allow scores a little bit lower because they do not have risk-based pricing.  Therefore, rate is not determined on score.

Advantage Credit wrote a nice piece re: fico scores. 

CREDIT 101 - BACK TO BASICS

Let's get back to basics.  In this time of financial turmoil, getting and keeping a good credit rating may seem like an insurmountable task.  There are basic steps we can take to ensure that the little 3 digit number that defines us in the credit world is a good number.  And anymore, a good number means 720 or even 740 and above. 

• Don't open new accounts unless you have to. Any time you open a new account of any kind it will most likely have somewhat of a negative affect on your credit score.  It may not be much depending on what the rest of your credit looks like, but in today's world even a few points could mean the difference between a good interest rate and one that could cost you hundreds of dollars each month on your mortgage payment.  New accounts equal a new inquiry, so be leery of opening any new accounts.
• Don't close old accounts.  When you close an account you're closing the history.  That JC Penny card that you've had forever but never use is helping your credit score.  Today though, if you don't use an account for a while chances are the creditor is going to close it due to lack of activity.  So go buy a pair of socks and then pay it off when the bill comes, but don't close it and remember to use it occasionally.  This is going to be even more important with the new FICO 08 scoring model being released this year.  If you have more closed accounts than open, your score could take a pretty big hit. 
• Keep your revolving balances low.  A lot of people think that if they keep their credit card balances below 50% of the high credit they will be ok.  50% is a target, but it is not THE  target.  Optimally you should have more than 3 credit cards with balances below 30% of the high credit.  Once the new FICO 08 scoring model is launched you will want those balances preferably below 10% of the high credit for the best score possibility.
• Pay your bills on time.  One 30 day late on one account - even a little store credit card - could potentially drop your score 100 points or more.  And don't be fooled into thinking a mortgage or auto late carries more weight than a credit card late.  A late is a late no matter what kind of account it's attached to.
• Be careful if you pay off old debts such as old collections or charge offs.  When you pay these off you are going to bring the reporting date current which makes it look like a recent derogatory even if it is 4 or 5 years old and this will hurt your credit score.  I am not suggesting you should not pay your debts, but if you are applying for a mortgage you should pay them at closing and they will not be updated on your credit report before closing and lower your scores.  Collections and charge offs will fall off of your credit report 7 years from the date it originally was charged off or put into a collection status, no matter how many times the account has been sold and regardless of whether it is paid or not.
• Avoid co-signing loans.  It is easy to want to help a friend or relative who may have less then perfect credit by co-signing for that car they want.  But be warned if they default on that loan or incur a late payment it will show up on your credit report too and could devastate your credit score.
• Have a good mix of credit.  If you have only revolving credit cards consider getting an installment loan.   Examples would be an auto loan or a mortgage.  If you have good credit most banks will even consider giving you a small unsecured installment loan.  This is another factor that is going to weigh more with the new scoring model.  They want to see a good mix of credit and not just all revolving debt.
• Check your credit report annually.  Once a year you can obtain a free copy of your credit report from all three bureaus.  The only place you can get this free report is through www.annualcreditreport.com.  It will give you an option to purchase your score but understand it is a personal score and not a mortgage or auto score.  Every industry has their own scoring models and a personal score will almost always be higher then any other industry scores.  In order to monitor your report year round it is wise to order one bureau in January then wait 3 or 4 months and order the next bureau and 3 months later order the last bureau.  If you find errors on your credit reports you can then dispute them on line through the annualcreditreport website.  It is very important to go over your reports in detail to make sure that all the correct information is showing and to ensure that you have not been the victim of some sort of identity theft.

All these suggestions may seem like a lot of work and may even seem unattainable, but with some persistence and due diligence, a good or even a great credit score is just around the corner.

Mindy Leisure
Director of Product Development
Advantage Credit Inc of Colorado 

Currently, there's a $7500 tax credit for home purchases, but the credit must be repaid over the period of the loan. If the Senate measure becomes law, it would provide 10% credit, up to $15,000. Industry professionals back the measure as a means to spur the housing market.

The following is an excerpt from: http://tinyurl.com/ahy9rk

"Anyone who buys a home within a year of the bill's signature would qualify. And, consumers would be allowed to spread out the credit over two years. To deter speculators, buyers must occupy the house as their main residence for at least two years.

But the tax incentive is likely to be more helpful to buyers in less expensive markets, said Christopher Thornberg, a principal with Beacon Economics in Los Angeles. "Unfortunately, in the places that are most hard-hit, like California, it's going to have less of an impact," he said.

A tax break passed last summer provides a $7,500 credit to first-time homebuyers. But that must be repaid over 15 years, and the impact on home sales has been negligible.

Buyers will still face tight lending standards, and mortgage rates have climbed since hitting a record low of 4.96 percent last month. The average rate on a 30-year fixed mortgage rose to 5.25 percent this week from 5.1 percent last week, mortgage finance company Freddie Mac said Thursday."

Associated Press Writers Daniel Wagner and David Espo in Washington, and Alex Veiga in Los Angeles contributed to this report.

Copyright © 2009 The Associated Press. All rights reserved.

All Real Estate is Local...Here's What's Happening in Colorado Springs:

• In the year 2008, for single family homes, Colorado Springs had an average sales price decrease from a high in January of around $260,000 to a December low of $240,000. This represents a 7.9% reduction in local home values.
• 2008 average sales price is $239,204, 2007 is was $259,629, in 2006 is was $260,304, and $245,315 in 2005. So, our home values have rolled back in values to mid 2004. (It could be worse!)
• Another measurement of the local market are average sales. Average sales for the month of December were down to 495, down 0.8% from the previous month, recording lowest amount of sales in the last 5 years.
• Average sales from 2007 to 2008 were down by 16.6%

Here's the Good News:

• The number of listings improved (decreased) greatly in December! In November there were 5,547 listings on the market, but in December the number had decreased to 4,951; a 10.7% reduction. 
• Total listings for 2008 were down from 2007, by 14.2%
• Total active homes on the market in 2008 is actually less than at any time since January 2007!

In Summary:

While the market hasn't been hot in last part of 2008, it at least thinned out in December. Our market does not have the plethora of listings that many have. We are returning to a seller's market. A balanced market is 6 months of inventory. We, currently, have 10 months, in November we had 11 months, October we had 9, September there was 8. The trend is downward; back to a seller's market.

Of course, December is typically a less active month. But all indications point to an equalization in the market for January and for 2009 as a whole.

Tell me about your market. What are your stats? How do you feel about 2009? Are you a Pollyanna, or a Doom-sayer?

To see all listings in El Paso County, click here.

It's wonderful that people on Active Rain are so supportive. Get well soon, Liz!

Martin Luther King Day

In commemoration of Martin Luther King, I have posted his open letter to clergyman from his imprisonment in the Birmingham jail. It's a powerful, powerful paper.

It's his statement to those clergy that felt the battle for racial equality should be fought in the courts. Dr. King believed that non-violent protest, in the vein of Gandhi, was more productive. That to use the courts was to "wait" and there was no time left for the people to wait for equality. Dr King said that civil disobedience was justified, faced with unjust laws, and that "one has a moral responsibility to disobey unjust laws."

His profound quote in this letter, "Injustice anywhere is a threat to justice everywhere," is profound still today.

So, Monday, we honor this great man, whose live was cut down too soon. Thank you, Dr. King.