Homebuyers more willing to consider buying foreclosed properties

According to a recent survey reported on in RISMedia, the stigma of foreclosed homes may be starting to wan.

The online survey, conducted on behalf of real estate-search site Trulia.com and RealtyTrac, an online marketplace for foreclosure properties, in early November showed that 88 percent of homeowners looking to trade up are at least somewhat likely to consider buying a foreclosed property. With the $6,500 tax credit available to this market for a short time, sales of foreclosed properties are expected to increase in the coming months.

Overall, 43 percent of adults are somewhat likely to consider a foreclosed property, and 92 percent of real estate investors are at least somewhat likely to do the same.

Of renters looking to buy, 57 percent are willing to consider purchasing a foreclosed home, with more renters between age 18 and 44 likely to consider doing so compared with those 55 and older.

One reason homebuyers are considering purchasing foreclosed homes is the discounted prices: they expect to save 30 percent or more – as much as 50 percent in the Northeast part of the nation.

"Even during the darkest economic times, dreams don’t die. Foreclosures are providing never before seen opportunities for new segments of homebuyers and allowing renters to become first-time buyers, allowing investors to grab great deals and allowing families to trade up to larger homes," RISMedia reported Trulia co-founder and CEO Pete Flint as saying. "Until unemployment levels off and starts to get better, we expect foreclosures to continue to play a big role in the 2010 housing market."

Although they expect to save on the purchase price of a foreclosed home, 95 percent of those who might buy one also expect to invest money in renovations. And 55 percent are willing to spend 20 percent or more of the purchase price on those improvements, according to RISMedia. As more consumers purchase distressed properties, excess housing inventory levels will decrease and additional money will be poured into other industries, helping to stimulate the economy as a whole.

"The most active and qualified buyers in today’s market are highly interested in foreclosures, which is not surprising given the discount that often comes with a foreclosure purchase," said Rick Sharga, senior vice president of RealtyTrac, reported RISMedia. "It is somewhat surprising that consumers cite hidden costs as the biggest negative aspect to buying a foreclosed home because most bank-owned foreclosure sales include the same title protections and other safeguards that are in place for non-foreclosure sales. As myths such as this are put to rest and consumers take more time to educate themselves on the process for purchasing foreclosures, they will be able to take advantage of the great bargains that currently exist in the real estate market."

City's regulations make homes attractive to those who value nature, outdoor activities

The New York Times recently lauded Boulder’s urban growth restrictions, guaranteeing local homebuyers will have views for years to come as well as easy access to hiking and biking trails and open space.

The publication says the city’s restrictions prevent housing developments from "creeping up the hillsides" and buildings higher than four stories from being built. The city has thousands of acres of open space, conservation easements and nature reserves, with approximately 25 percent of its sales and use taxes going toward protecting more open space. All of this means views and opportunities to enjoy the outdoors are protected, according to the newspaper.

The New York Times quotes real estate agents who, it says, report an influx of second-home owners and retirees who value the natural environment and are willing to pay to live near it.

Re/Max of Boulder’s John McElveen was quoted as saying, "It’s not just the lifestyle here — people want the lower taxes, too. We see a lot of Californians and buyers from the Northeast."

The publication also recognized amenities such as the Pearl Street Mall and the University of Colorado, within walking distance of downtown, as well as a mild climate with about 300 sunny days a year historically.

Strong sales in November encouraging

Boulder home sales in November may not have been as strong as they were in October, but they were stronger than the previous two Novembers, and that has Ken Hotard looking forward to the New Year.

The senior vice president of public affairs for the Boulder Area Realtor Association called November’s sales-volume figures "encouraging" compared with past Novembers. Last month, 252 single-family homes sold compared with 149 in November 2008 and 246 in November 2007. The attached-housing market also had a positive November this year, with 84 homes selling versus 50 a year ago and 46 in November 2007.

"That’s the second consecutive month that we've seen gains, and these gains are even stronger than we saw last month," he says.

Hotard attributed the impressive figures to historically low interest rates and the extended and expanded tax credit bringing first-time as well move-up buyers into the market. "Those are all really positive signs," he says.

Sluggish job growth will continue to affect the market, though the government is working on another stimulus program that would provide $100 billion to small businesses and state governments to spur hiring. "So hopefully it will move job growth in the right direction and, with the other factors, we'll see strong growth in sales volume in 2010 consistent with what we’re seeing this quarter," Hotard says.

Home sales were down compared with October, but he says that’s a natural seasonal adjustment.

Although average and median prices are generally lower throughout Boulder County, some communities continue to show improvement and, overall, they prices are holding steady.

"It’s still a buyer’s market and there continues to be downward pressure on prices," Hotard says. "But there are limits to that, beyond which the market just isn’t going to respond. Prices are holding up well in the middle to low end. The high end has the greatest pressure and least availability to credit. Jumbos are still hard to find and difficult to qualify for. Folks are steering away from adjustable rate loans, and that’s mostly what’s out there."

Hotard says the dynamics of the Boulder market have not changed substantially except for the increased buyer participation and sales volume, and that’s good news.

"Does this point to a recovery? Not necessarily. But it is certainly encouraging," he says. "Buyers are returning to the market, albeit with some encouragement from our government."

But if there was ever a time to buy a home, it is now, when prices and interest rates are low and the government is offering incentives like never before. Hotard warns that these conditions won’t last for long.

"I think prices are going to start going up," he says. "We’re going to start seeing that recovery in the second half of 2010. I think folks should really consider that if they’re thinking about getting in the market at all. This current market offers a significant opportunity."

Wall Street Journal recognizes world-class cuisine served at Boulder's restaurants

Boulder is home to restaurants serving world-class cuisine, according to The Wall Street Journal critic Raymond Sokolov.

Noting that a "gourmet revolution has edged out the cultural revolution," Sokolov named several restaurants participating in a "high-end food fight" in Downtown Boulder. He attributes this to the fact that Boulder is home to "plenty of well-shod, well-fixed folks eager to feed themselves with discrimination."

From Flagstaff House's dish featuring a trio of lamb parts and its young-yet-talented wait staff to the local items served at Salt or the Kitchen's honorable use of wind power and cooking oil to fuel a staff member's car, Sokolov never had a shortage of positive things to say about Boulder's high-end restaurants.

Here's a list of the establishments whose cuisine Sokolov sampled and recommended:

Flagstaff House Restaurant
1138 Flagstaff Road
303-442-4640
www.shopflagstaffhouse.com

Salt
1047 Pearl St.
303-444-7258
www.saltboulderbistro.com

The Kitchen
1039 Pearl St.
303-544-5973
www.thekitchencafe.com

Black Cat
1964 13th St.
303-444-9110
www.blackcatboulder.com

Frasca
1738 Pearl St.
303-442-6966
www.frascafoodandwine.com

Massage therapy is adventure for woman whose life is full of them

Robyn Faike figured out what she wanted to do when she grew up while summiting Mt. Everest, which she did at 4:02 a.m. May 24, 2008.

The day after returning from that adventure – one of many she's had in life – she enrolled in courses to pursue her next adventure, massage therapy. After receiving her certification from the Boulder College of Massage Therapy, Robyn opened her own practice, Evolve Therapeutics, 2027 Broadway Street, Suite A, in Boulder in June. She is also is certified through the The National Certification Board for Therapeutic Massage and Bodywork, which means the massages she offers can help a body heal, not just relax.

"The therapy that Robyn provides is much, much more than a simple massage," says her patient, Richard Silverman. "She is a very intuitive therapist and is able to provide a form of therapy that is unavailable in today's world of medicine. Not only is she unusually caring and compassionate, but she has mastered many different styles and forms of bodywork that can provide not only relief from pain but, in many cases, the eradication of its cause."

Faike says it was realizing that injuries have a mental, emotional and spiritual as well as physical impact on people reaching their goals revealed her calling.

"Nobody was a massage therapist (on her Mt. Everest summit team), but it got me thinking, because people would have muscle strain and it pretty much inhibited them from progressing and doing the climb in a comfortable way," she says. "I realized how it’s important to connect mind, body and spirit. An injury would take over psyche, cause depression, and I saw how beneficial (massage therapy) could be.”

Mt. Everest wasn’t Robyn’s first peak to climb, either. She’s climbed the highest peaks in five different continents, four of which she did with her mom.

Before discovering her true calling, Robyn was an elementary school teacher, though she originally went to Indiana University to pursue opera singing. She completed her teaching certification and student teaching in New Zealand before moving to Boulder, where her brother and grandparents lived (she’s originally from Carson City, Nev.). She also worked for five years with the Boulder YMCA in its mountain biking camp, helping older teens train for races.

None of those experiences, though, gave her the satisfaction that working as a massage therapist and doing bodywork does, she says.

"Every day is so amazing for me," Robyn says. "I walk away each day with different stories. I connect with people on unique and special level. I feel completely fulfilled in my life.

"It's really complementary to all my life adventures," she adds. "I really believe that everybody has their own summit in life. Through massage therapy, it's so exciting to support people in whatever adventure they're on, no matter how big or how small. It all feels connected to me."

Evolve Therapeutics' hours are by appointment 7 a.m. to 9 p.m. daily. Call (303) 246-7178.

Brothers follow father’s example in tree-service business

When your dad instills values in you such as honesty, a strong work ethic and integrity, it’s not so difficult to work alongside your brother.

Brad and Jon Bielen have discovered just that as co-owners of owners of A Cut Above Tree Service Inc. in Longmont, which provides trimming/pruning of trees, tree removal, stump grinding, fire mitigation, log milling, lot clearing/demolition and firewood. The brothers plan to expand their business in the spring by buying two spray rigs to spray trees for bugs and provide deep-root feeding, so they will offer every tree service available. They also plan on hiring four to six new employees as their business grows.

“We have our battles, but for the most part when we’re at work, business is business and being brothers takes a back seat,” Brad says of working with his brother, adding it helps to know that they can count on each other.

The Bielen brothers have been working in the tree industry since 1988 and opened their own business in 1991 to pursue the American dream of working for themselves, setting their own hours and days, Brad says. Their father, who passed away 2006, was an inspiration to them both.

“In my eyes, he’s probably one of the greatest men I’ve ever known,” Brad says, noting his father had a great work ethic and his responsibility for family was of the utmost importance. “I wish I could be half the man he was.”

The example their father set and the values he taught his sons have translated into how the Bielen brothers run their business, treating customers with honesty and integrity, doing their part to preserve the environment and helping others in any way they can.

The brothers do a fair amount of charitable work, doing trimming and tree removal for those who are unable to do it themselves and unable to afford to pay someone, as well as providing wood chips and even firewood at no cost to those struggling to make ends meet. “We give away a huge amount of firewood every year to people who just can’t afford to buy firewood,” Brad says.

When A Cut Above trims or removes a tree, none of it is wasted. “What’s nice is every little bit of material from a tree is utilized,” Brad says. “If we cut a tree down, we use the branches as woodchips that we give to customers for free; the logs are turned into lumber at the two saw mills we own and are used for everything from furniture to fencing; and the smaller pieces are used as firewood.

“Environmentally speaking, it’s important to not let anything go to the landfill. It’s just the way we’ve developed our business around making sure nothing goes to waste.”

The brothers have lived in Colorado for 40-plus years – Brad, a father of 3-year-old fraternal twins (boy and girl), is a native – so this is where their family and friends as well as their livelihood are. “We worked in Arkansas for a few years and came back,” Brad says. “We know trees – we know these trees. We’ve seen trees that we planted that are now mature. This is home. It’ll always be home.”

To contact A Cut Above Tree Service Inc., visit www.ACutAboveTreeService.org or call (303) 682-5678.

GDP stats indicate that Colorado metros' economies are expanding

According to the latest statistics from the U.S. Bureau of Economic Analysis, the local economy has indeed expanded since 2005, though many cities throughout the nation haven’t been so fortunate.

Statistics released last month show that the slowdown in U.S. economic growth was widespread from 2007 to 2008: 60 percent of metropolitan areas saw economic growth slow down or reverse. Real GDP growth slowed in 220 of the nation’s 366 metropolitan statistical areas (MSAs) in 2008 with downturns in construction, manufacturing, and finance and insurance restraining growth in many metropolitan areas. Growth in real U.S. GDP by metropolitan area slowed from 2 percent in 2007 to 0.8 percent in 2008.

According to the BEA, growth accelerated in 146 metropolitan areas, especially where natural resources and mining industries are concentrated, such as Casper, Wyo., and Grand Junction, Colo. Grand Junction had the fastest real GDP growth (12.3 percent) of any metropolitan area in 2008 due largely to growth in natural resources and mining. The professional and business services industry group also showed strong growth in 2008, contributing the most to real GDP growth in 112 metropolitan areas.

The more significant growth is shown between 2005 and 2008. Here’s a look at how Colorado’s metro areas performed compared with the nation’s 366 metropolitan statistical areas during that time:

Signs of stabilization mean growth could be around the corner

While year-to-date home sales in the Boulder market were still down through October, sales for the month were better than they were in October 2008 – good news for the local real estate market.

In total, 276 single-family homes and 96 attached homes in Boulder County sold in October, compared with 250 single-family and 86 attached homes in October 2008. During the first 10 months of the year, 2,942 single-family homes sold, compared with 3,750 in the same period last year; 1,145 attached homes sold this year, compared with 1,395 through October of 2008.

Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor Association, called the statistics “good news.”

“We’re seeing really good signs of market stabilization when we look at sales in October 2009 compared with October 2008,” he says. “It’s up about 5 percent marketwide on single-family homes. From September to October 2009, we’re right on track – there’s no decline. We’ve seen stabilization of the year-to-year data in sales volume decline.

"We are looking to turn the corner on growth before heading into the second half of 2010."

In September, 274 single-family homes sold and 108 attached homes sold. Sales prices, though still down, held steady in October, as well. In fact, Erie and Louisville saw slight increases in median sales prices, while Boulder saw only a 0.9 percent drop in its median price.

He says he expects the extension of the first-time homebuyer tax credit to have a positive impact on the Boulder County market. Congress recently extended the $8,000 tax credit for first-time homebuyers through May 1, as well as added a $6,500 tax credit for buyers who have been in their homes for five consecutive years in the last eight years, and increased the income limits for a qualifying single individual to $125,000 and for a couple to $225,000.

“Those are all signs the stimulus will continue to support market stability, as the economy begins to recover,” he says. “Hopefully that will be a launch to a healthier overall market and economic condition for the second half of next year.

“There’s no question about it; affordability is at an all-time high,” Hotard adds. “There are a lot of people who have been sitting on the fence and this will be exactly what they need to move off of the fence and into the game.”

However, two things could dampen progress: continued tight credit, particularly in the jumbo loan area, and weak job growth, he says. “Those could be factors that hold us back a bit."

And through the first half of 2010, the market will favor buyers, Hotard says.

Real estate experts: Boulder housing market improving

By Peter Budoff
Camera Staff Writer
Posted: 11/19/2009 11:14:24 PM MST

The national and local real estate market is showing signs of improvement, but a full recovery will depend on restoring consumer confidence, housing experts said at a Boulder forum Thursday.

Boulder remains somewhat insulated from the national economic struggles, Scot Smith, a broker with The Colorado Group, told the crowd at the second annual Boulder Valley Real Estate Conference and Forecast at Boulder's Millennium Harvest House.

"This is a good place to be," Smith said. "When the full recovery begins, it will probably begin here."

Smith said that the presence of large local companies and continued strength in the energy industry and others will continue to help stabilize the Boulder economy.

Commercial occupancy should increase slightly throughout Boulder Valley in 2010, while the area should remain relatively insulated from the national wave of foreclosures, Smith said. Office vacancies fell to low of 12 percent in 2009, not as high as some predicted.

Smith noted that in addition to governmental agencies -- which were the largest purchasers of commercial property this year -- the Boulder commercial real estate sector has been boosted by an unlikely industry: medical marijuana dispensaries.

"We can only hope marijuana never gets regulated, so it can lead us out of this recession," he joked.

D.B. Wilson, managing broker of ReMax, said the residential housing market through the beginning of 2010 will continue to favor buyers, with affordability at an all-time high.

But prices, interest rates and mortgages are still likely to fluctuate through next year, and true market stability won't come until consumer confidence is restored, several speakers said.

Sharp declines in wealth and increases in unemployment have dropped consumer confidence to near-historic lows, said Patti Silverstein, the chief economist of the Metro Denver Economic Development Corporation.

Confidence should improve as the economy does in 2010, but the improvement will be slow, Silverstein said.

"The recession from a technical standpoint probably ended in the third quarter of the last fiscal year," she said. "We will keep moving out of the recession but at an anemic pace."

Denver-Aurora makes top 10 for safety

Forbes.com recently named Denver-Aurora 10th on its list of America’s 10 Safest Cities.

The magazine compared the country’s 40 biggest metropolitan statistical areas across four categories of danger – violent crime rates according to the 2008 FBI uniform crime report; workplace death rates in 2008 from the Bureau of Labor Statistics; traffic death rates in 2008 from the National Highway Traffic Safety Administration; and natural disaster risk, using rankings from green-living site SustainLane.com.
Denver-Aurora, population 2.5 million, tied with Cleveland-Elyria-Mentor, Ohio, for 10th place with a total score of 59.

Here’s a look of the top 10 and how they scored in the different safety-factor categories:

Tax-credit extension: now is time to buy

Existing homebuyers now have a rare opportunity to sell their current homes and get a break on an upgrade under the latest extension of the homebuyer tax credit.

Not only has Congress extended through May 1 its $8,000 tax credit for first-time homebuyers (who haven’t owned a home in at least three years), it has included a $6,500 tax credit for those who have lived in their homes for five years or more and looking to move up.

Buyers are subject to income limits. And to qualify, they have to sign purchase agreements before April 30 and close before July 1.

If people are interested they should consider buying now, because the rumor among real estate professionals is that interest rates will go up around March 2010, when the federal government stops directly buying mortgages.

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

The hope is that by expanding the tax credit time limit as well as to whom it’s offered will help stabilize housing markets during what is normally a slow season of the year for home sales.

Today, many would-be buyers are still worried that home values could drop further, Lawrence Yun, chief economist at the National Association of Realtors, told the Associated Press.

"Once the consumer fear factor disappears, then housing can move into a sustainable recovery," Yun says. "I think we will be there by the middle of next year."

Yun says the tax credit has helped to increase demand and reduce inventory, enabling sellers to get higher prices than they would have otherwise.

About 1.4 million first-time homebuyers had qualified for the credit through August, according to the Associated Press. The National Association of Realtors estimates that 350,000 of those buyers would not have purchased their homes without the credit.

Boulder real estate market remains cloudy with a few bright spots

At first glance, the home sales statistics for the communities of Boulder County look bleak. After all, overall sales are consistently down 12 percent to 14 percent in most markets and the average sales price is down in every market.

But comparing those stats with past years reveals some bright spots. For example, three Boulder communities saw an increase in median sales prices: in fact, Broomfield’s median price increased 5 percent. “Certain markets are performing pretty well, especially in the right price points," says Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor Association. "If the price is below $400,000, sales are pretty brisk, and values are holding up pretty strong.”

Even though the average sales price dropped in every Boulder community, most of them did so by less than 5 percent and those that dropped more did so by less than 10 percent, Hotard points out.

And that 12 percent to 14 percent drop in sales is still a lower adjustment than in the previous two years, he says. “ The decline in sales volume has slowed and is likely to level off in the second half of 2010, potentially beginning modest growth in early 2011,” Hotard says. “While that may be a bit optimistic, it is definitely within reach.”

Nationally statistics show a 9.4 percent increase in home resales in September 2009 compared with August 2009. “Much of that activity is related to, at least we believe, folks moving quickly to take advantage of the $8,000 first-time homebuyer tax credit before it expires at the end of November,” he says. “Nonetheless, sales are sluggish. In much of our market areas, a lot of that is related to tight credit, particularly in the jumbo loan category.”

BusinessWeek recently named Boulder the strongest housing market and the Federal Housing Finance Authority said it has the 11th highest appreciation in the nation, but Hotard says that such news may give people the wrong idea about the area’s real estate market.

“It scares me to hear that,” he says. “I know we have some pain and suffering yet to feel here and to have those kinds of rankings gives me pause. We are still in an unprecedented economic situation with an unclear end and an uncertain understanding of what the future looks like. People may get a misimpression and have unreasonable expectations that make it difficult to succeed in their transaction.”

Doctor sees Boulder as perfect place to live and restore eyesight

Five weeks after having knee replacement surgery, Dr. Dennis Dupuis is back at work, making sure all of his patients have a clear view of the world.

The optometrist and owner of Eyecare Center of Boulder is also anxious to resume most of the outdoor activities that, along with a busy practice, have endeared him to this city.

“It’s actually doing pretty well,” he says of his recovery. “I can’t play soccer
anymore, but I’m sure I can hike and I can ride my bike.”

Dupuis, who has practiced since 1981, moved from upstate New York to Boulder in 1984. His practice has remained in the same location, 1836 30th St., for 18 years. He attained his biology degree from the University of New Hampshire and then his doctorate from the Southern College of Optometry.

Inspired by another optometrist who appeared to enjoy his job, Dupuis has found he also takes great satisfaction in how he helps his patients. “I think just getting the instant gratification that people see better right away,” he notes. “Oftentimes I get patients who have never had eye correction. They leave and they are just amazed at what they were missing in their life.”

He says with as busy of a practice as he has, he’s playing catch-up after taking four weeks off to recover from surgery. But his patients are just that – patient. “They’re willing to wait,” he says. “We’d better be busy or we’d be out of business.”

Dupuis and his wife of five years, Debbie, have four sons between them. Their oldest son, Eric, followed in his dad’s footsteps and practices in Florida.

“It’s great,” Dupuis says. “I’m looking forward to when he decides to come back to Colorado … and take over the practice. Right now he’s enjoying the warm weather.”

But Dupuis says he doesn’t plan on going anywhere. “I wouldn’t want to live anyplace else, really.”

To learn more about Dr. Dupuis and the Eyecare Center of Boulder, call (303) 449-2401 or visit www.eyecarecenterofboulder.com.

From physics to counseling, energy plays big role in dealing with change

Making the leap from physical energy to the metaphysical kind is not too far of one, according to Alan McAllister.

The owner of Whole Being Explorations has a doctorate in physics and spent much of his career doing physics research before becoming a counseling clinical hypnotherapist, in which he uses intuition as well as intellect. “I’ve always had a right brain life and a left brain life,” he says. “I figure you’ve got two hemispheres, you might as well use them.”

But the link between physics and the “transpersonal” counseling he offers is more concrete, as well. “It’s all about energy,” McAllister says. “Emotions, thoughts, or physical levels, these are all different types of energy, different perspectives and different ways of working. Many aspects of the things I learned about energy by doing physics apply to the work I’m doing now.”

Alan describes “transpersonal” counseling as that done with an understanding of the existence of spirit in one form or another – that humans are not just animals running around. “I’m helping people connect with that aspect of themselves,” he says. “We have so many tools we’re not accessing that can be beneficial in many different areas.”

The issue Alan helps most people deal with is change, he says. “They’ve either got not enough of it or too much of it. I help them to acquire skills or tools to adjust to shifts in their lives. It’s always unique depending on who I’m working with.”

Alan grew up in Philadelphia and worked in California, Japan and Texas, where he attained his doctorate at the University of Texas, before coming to Boulder to do physics research in 1993. He has been doing spiritual counseling for 12 years and opened his own practice four years ago after becoming trained in hypnotherapy.

While he enjoys traveling and even living in different places, the father of two says remaining in Boulder for longer than he has anywhere else has provided his school-aged children with stability and his family easy access to nature.

“It’s a good place,” Alan says. “For someone who’s interested in learning things at all levels, you could spend a lifetime in Boulder covering all the things that are offered here. It’s also still a place where I can run into people I know around town. I like the scale of it; it’s by far the smallest place I’ve ever lived.”

Lifelines for drowning homeowners - By Matthew Finberg

Many homeowners are realizing that their once-sure-thing investment, the American dream of home ownership, has become an anchor around their necks. For reasons ranging from overuse of home equity loans when the sky was the limit for residential real estate appreciation to loss of employment, many are over their heads – or “under water,” as the mortgage professionals call us, when home loan exceeds the value of the property securing its payment.

How did we get here? Aggressive mortgage brokers and unscrupulous appraisers with loose standards certainly made it easy for us to tap paper equity. The government certainly did very little to protect us from ourselves. Playing the blame game may ease your conscience if your home is under water, but genuine options exist to stem your negative cash flow and quite possibly keep that roof over your head.

You are far from alone in this experience: it is estimated that approximately 30 percent of all U.S. homeowners owe more on their mortgages than the value of their homes. With the jobless economic recovery we are experiencing, this figure is bound to increase. Banish the guilt demons which may haunt you and shake yourself out of the paralysis which naturally sets in when faced with what feels like hopelessness. You may feel like you are drowning, but real life lines are available to grab.

I recommend consulting a trusted attorney and real estate broker to help create your personal recovery plan. They can help you evaluate the pros and cons of the following options: (a) negotiating a loan modification which will result in a new payment schedule you can afford; (b) listing the property for sale at a price which may not fully pay off your mortgage debt (“short sale”) but could well end your obligations; (c) requesting that the lender accept a deed of your property in lieu of foreclosure; or (d) letting the property go to foreclosure sale.

Despite your good-faith intention to pay your debts as they come due and to honor the terms of your mortgage, experience indicates that lenders will not even talk to you about your loan unless you are at least three months delinquent on your payments. The lenders’ loss mitigation departments (the folks responsible for working things out with you) are overwhelmed with the volume of nonperforming loans needing their time and attention. Representatives of more than one major lender have told me that you are unlikely to get their attention if your payments are up to date. It may be time to stop throwing good money after bad.

LOAN MODIFICATION. If you are determined to stay in your home, once the lender is paying attention to you and taking your calls, you can explore a loan modification. A number of nonprofit organizations may assist you in this effort, and a good place to start is www.coloradoforeclosurehotline.org. Though worth a try, statistics indicate that few meaningful restructurings are approved, and many that are approved end up in foreclosure notwithstanding the more affordable terms. The reality is that most of the 30 percent of U.S. homeowners who are under water need to move into more affordable accommodations in order to experience real relief.

DEED IN LIEU. In theory, a deed-in-lieu-of foreclosure would free the homeowner from the mortgage debt in exchange for his conveying the property to the lender. The homeowner would write off his equity invested in the property and the lender would acquire the property at the bargain price of the outstanding principal of the debt. The problem with this is that few lenders are interested. By foregoing the foreclosure process, the lender could very well end up with property subject to mechanics’ liens, judgment liens and other title defects which foreclosure could have eliminated. The property is worth less in this condition than after the cleansing of the foreclosure process. The lender would also have yet another real estate asset on its books, which harms its ability to make new loans and otherwise operate profitably. In practice, the deed-in-lieu-of foreclosure action has little appeal to a lender and almost no chance of success.

FORECLOSURE. After a homeowner has skipped three monthly payments, the lender will most likely elect to foreclose on the property in an effort to recover all sums owed. The first step is filing a Notice of Election and Demand with the Public Trustee for the county in which the property is located. State statute imposes substantial obligations on the lender to provide the borrower and other interested parties plenty of notice regarding the proceeding and an opportunity to cure the defaults virtually right up to the day of the auction sale of the property. Compliance with these requirements takes approximately four months after filling the Notice of Election and Demand, so the homeowner can expect to stay on the property for about eight months from the time that monthly payments are suspended before being legally compelled to move. The difference between the bid price at the auction and the amount owed under the mortgage, known as the deficiency, may be pursued in Colorado by suit against the borrower for seven years after the foreclosure sale. The former homeowner has the deficiency hanging over his head as well as the damage to this credit score by the reported foreclosure.

SHORT SALE. A better approach may well be listing the property with a real estate broker and negotiating with the lender to agree to release its lien if a reasonable offer is made, even for less than the amount of the loan. Lenders are interested in short sales as they save them from the marketing and ownership risks of ownership and the balance sheet damage of adding more real estate to its assets (assuming, as is most often the case, that it is the winning bidder at auction), and it may well result in a higher price than a subsequent sale by the lender post foreclosure. The owner with a contract in hand may be in a better position to convince the lender to forgive the deficiency and report the transaction to the credit agencies more favorably than it would a foreclosure, enabling the homeowner to walk away from the closing with a fresh start. The homeowner’s leverage is that most contracts for short sales contain standard language permitting the seller to cancel the contract if he does not like the lender’s terms.

In addition to the credit rating repercussions of any mortgage default, homeowners need to know that a price for debt forgiveness may be taxable income. In general, the amount of the portion of any loan which is forgiven or written off is considered taxable ordinary income. The lender will send such a taxpayer a Form 1099-C reporting the amount of debt cancelled. This is not all bad news. It is official recognition that the lender is not going to pursue a deficiency judgment against the homeowner. Statutory exceptions also exclude the cancelled amount from taxation even though the homeowner must report it in his tax return.

The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt forgiven through mortgage restructuring, foreclosure or short sale qualifies for the relief which is available through calendar year 2012 for up to $2 million of forgiven debt ($1 million if married filing separately). Mortgage debt in excess of the original acquisition debt is not eligible. The forgiven debt may also be excluded if it is discharged in bankruptcy or to the extent that the taxpayer is insolvent immediately prior to the discharge. Insolvency for this purpose is the excess of debt over the fair market value of assets.

If you are one of the 30 percent of all American homeowners who are drowning in their home mortgages, do not despair! Strategies are available which can limit the damage to your credit rating, protect you from a lawsuit for money damages by the lender and exclude the amount of debt cancelled from taxation. Your real estate broker and attorney can work to help you maximize your chances for such success.

Fall conference offers valuable information about real estate, economy

Are you’re wondering whether to buy or sell real estate during these turbulent times? Do you want more information about new green building practices, or are concerned about how the credit crunch will affect the future of lending and the economy? If so, REMAX of Boulder Inc.’s Fall Real Estate Conference will provide essential information for all attendees.

“I think anyone who’s interested in real estate or the economy should come hear these experts talk,” says Tom Kalinski, Broker/Owner of REMAX of Boulder. “You can interact with the panel and get your questions answered.”

The conference is set for 11:30 a.m. to 5:45 p.m. Wednesday, Nov. 19, at the Millennium Harvest House Boulder, 1345 28th St. The cost is $49 and includes lunch.

With Brad Blackwell, Executive Vice President, Retail National Sales Manager for Wells Fargo Home Mortgage, and Paul Bishop, Managing Director of Real Estate Research for the National Association of Realtors (Washington, D.C.), headlining the event, REMAX of Boulder has put together an outstanding lineup of speakers. They also include Hugh Morris, Director of Smart Growth (National Association of Realtors (Washington, D.C.); Patti Silverstein, Chief Economist of Metro Denver Economic Development Corp.; and Andy Grolnick, President and CEO of LogRhythm Inc., of Boulder.

The conference will address the future of real estate lending – a major issue upon everyone’s mind – locally, nationally and internationally, as well as the direction of green building programs and green government regulations impacting construction and real estate prices.

One conference session will decipher perception from reality as far as what the government is doing to turn the economy around, what is needed to get through the down economy and what is really happening versus what people think is happening. “The idea is to clarify what is reality so people aren’t making assumptions or believing all the rumors,” Kalinski says.

The credit crunch has put the brakes on the entire economy, so one session is dedicated to discussing how the nation will overcome its fear of lending to take a more sensible approach toward awarding credit.

“The government in Washington doesn’t have a clue what’s going in the real world,” Kalinski says. “Banks can’t loan. By next year, banks are going to realize they’re not making any money and that they have to find a way to loan. Everybody is at a standstill.”

While conference speakers don’t have a crystal ball to guarantee what the future holds for real estate and the economy, “the people we have invited to come are in a better position than anybody here in Boulder, Colorado, to understand what’s really happening,” Kalinski notes. “Last year we learned a tremendous amount from the speakers. They weren’t 100 percent right, but they opened our eyes.”

For more information about the Fall Real Estate Conference or to register, visit http://www.fallrealestateconference.com/.

Colorado, cities rank well among metros throughout nation in home appreciation

Colorado and all of its metros’ housing markets continue to demonstrate their resilience, even in a recession.

The Federal Housing Finance Agency ranked Colorado at No. 11 out of 51 markets for a quarterly appreciation of 0.17 percent. Boulder, coming in at 44th out of 290 metro areas, was the highest-ranking Colorado city. Denver-Aurora-Broomfield was the next Colorado metro on the listing, coming in at 86th, and Fort Collins-Loveland was next, ranking 84th.

No Colorado cities made it into the top 20 highest appreciating cities, but none came in the bottom 20 – which was dominated again by California and Florida with a couple of cities in Nevada and Arizona thrown in – either.

Take a look at how Colorado and its cities compared with the national appreciation rate:

Despite struggles, BusinessWeek says ‘Boulder rocks’ in home values

BusinessWeek has named Boulder, with 59.39 percent of its homes increasing in value, as the metro area with the strongest housing market in the nation.

According to the magazine, Boulder “has had a relatively stable housing market, in part, because it is home to strong employers, including the University of Colorado, as well as a base of affluent residents. The supply of homes is limited in Boulder by the mountains to the west and its tens of thousands of acres of protected open space.” Boulder’s median home value was listed as $347,200.

The only other Colorado city to make the list of the Top 30 Strongest Housing Markets – those found listed by Zillow.com as having home values appreciate from the second quarter of 2008 to the second quarter of 2009 – was Fort Collins, which came in at 19 with 28.82 percent of its homes appreciating. Besides being home to Colorado State University, Fort Collins has excellent schools, low crime and a vibrant downtown as well as miles of hiking and biking trails, 600 acres of parks and 5,000 acres of natural areas, according to BusinessWeek.

BusinessWeek based its ranking on Zillow.com’s Q2 Home Value Index, which is computed by taking many different data points from public records and entering them in a proprietary formula.

Here’s a look at the top 10 strongest housing markets in the nation:

Save money on winter utility bills and help the environment with these 10 simple tips

1. Setting your water heater to 120 degrees is simple and will save you $6 to $10 a year.

2. Open the drapes or blinds on your south-facing windows to let the sun in and warm your home during the cold months.

3. Set your thermostat to 68 degrees so your heating system will operate less and use less energy. Turn your thermostat down 5 degrees at night or when leaving your home for an hour or more to save up to $70 on energy costs each year.

4. Washing all your clothes in cold water will save you about $40 a year.

5. Replace your furnace or heat-pump filter regularly. Dirty filters reduce airflow, making your equipment work harder and use more energy. Replace your furnace filter monthly (unless it’s a high-efficiency filter designed to last several months) during the cold season to reduce heating costs by as much as $35 a year.

6. A programmable thermostat is easy to install and automatically adjusts your home’s temperature settings when you’re sleeping or away. Doing so can save you as much as 10 percent or $70 a year.

7. Installing low-flow showerheads and faucets (the low-flow showerheads use 1.8 gallon per minute) can reduce your hot-water consumption by as much as 10 percent. You'll see savings up to $6 per year for a sink faucet aerator and $20 per year for a showerhead. The more faucets and showerheads your home has, the more you save.

8. Compact fluorescent light (CFL) bulbs cost a little more but can save you about $50 over the life of just one bulb.

9. Weatherize and insulate older homes to save as much as 20 percent off heating and cooling costs. A handy homeowner can weather-strip doors and sea windows and gaps along the home’s foundation. The easiest and most cost-effective way to insulate a home is to add insulation in the attic, though unfinished basement walls and crawlspaces could use it, too. Check with a contractor to insulate walls, which can be more complex. The owner of an average home can see a savings of $140 a year.

10. Purchase ENERGY STAR® appliances. Appliances and electronics significantly increase your energy bill, so when it’s time to replace, remember that refrigerators, washers, TVs and computers have two price tags – purchase price and lifetime energy costs. According to ENERGY STAR®, the average homeowner spends about $2,000 on energy bills every year. Change to appliances that have earned the ENERGY STAR® rating and save $75 a year in energy costs while preserving the environment.

B. Scot Smith and DB Wilson to present local forecast at fall conference

Re/Max of Boulder is proud to welcome B. Scot Smith and DB Wilson, who will provide the local real estate forecast at the 2009 Fall Real Estate Conference set for Nov. 19.

B. Scot Smith joined The Colorado Group, Inc. in 1982 and has always been one of the top annual producers in the company. He has been involved in commercial real estate in Boulder for more than 30 years and is a recognized leader and expert in commercial sales and leasing along Colorado’s Front Range. In 1995, Scot became one of only 3 percent of all commercial real estate agents to earn the designation of Certified Commercial Investment Member (CCIM).

DB Wilson, managing broker at RE/MAX of Boulder, Inc., is a graduate of the University of Colorado. Licensed since 1976, Wilson is past president of the Boulder Area Realtor Association; BARA Realtor of the Year, 1994; and Distinguished Realtor of the Year for the Colorado Association of Realtors, 1993, 1994, 1995 and 1997. He also served as manager of IRES (regional MLS for Northern Colorado), 1997-2006; is a past member of the National Association of Realtors’ Professional Standards Forum; past member of CAR Grievance Committee; member of the BARA Grievance Committee 1995 to present, current chairman. Wilson has also served on the Colorado Real Estate Commission task forces on Single Licensing and Designated Brokerage and Technology in Real Estate, and is past Manager of the Year for RE/MAX, Mountain States.

Real estate market continues to crawl along; recovery time still unknown

Cooler weather has brought an end to summer as well as the hope that the increase in home sales the hot season usually brings was just delayed.

For the second month in a row follow a promising June, statistics for home sales and prices in Boulder County were anything but. According to statistics for August, 303 single-family homes sold in July, down from 372 a year ago, and 110 attached homes sold, down from 141 a year ago. Average sales prices dropped in every Boulder community except Broomfield and the mountains, though Broomfield, Erie and Louisville all saw increase in the median sales price of homes sold.

Through the end of July, 3,041 single-family homes sold, compared with 3,889 the previous year, and 1,184 attached homes sold this year, compared with 1,416.

“We’ve seen a slowdown in sales activities over the last couple of years and those trends are continuing,” says Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor Association. “The real estate market is a victim of a trifecta of things: economic weakness, lending difficulties and low consumer confidence. People are not interested in making huge financial decisions at this time unless they have to.

“I was disappointed that we didn’t continue that growth in sales trend that we picked up in June,” he added. “But as you look around, you can certainly explain it. Who’s to say when that’s going to change?”

The market had had good activity and many people are in a position to take advantage of competitive prices and a solid inventory. Buyers are making offers but a larger percentage than usual are not making it to closing for a variety of reasons - those included in the "trifecta" of issues, Hotard says.

Lack of job growth is still an issue, though Colorado is doing better than the nation, but the state legislature now must cut another $240 million from this year's budget with deeper cuts expected in 2010, he says.

“It’s hard to peer into the future and get a good sense of when things are going to turn around,” Hotard says, noting he still thinks the second half of 2010 will have the potential for the economy to stabilize and turn the corner. “Depending on who you talk to, it’s gloom and doom forever, or we’ve already hit bottom and we’re beginning to correct already. I don’t think the picture is that clear on either account. The indicators are confusing at best.

“There’s demand,” Hotard adds. “When the time is right, things are going to move fairly briskly.”

Rent-to-own - where's the equity?

The weakness in the mortgage-credit market has led many would-be sellers to enter into what are known as “rent to own” or “lease-purchase option” agreements. Under such an arrangement, the buyer-seller relationship is restructured as a landlord-tenant relationship with an option for the tenant to buy the property for a fixed price. The tenant typically agrees to pay a deposit and a monthly rental which is greater than the pure rental value of the property. In exchange for this, the tenant is given an option to purchase the property and have a portion of his payments credited to the price.

Although many tout this as a win-win situation for sellers losing patience with a slow market and for buyers with temporary credit issues, a seller/landlord can end up with an expensive and protracted problem if the purchase option is not exercised and the buyer/tenant nevertheless chooses to remain in possession without making any further payments.

The legal issue is whether the tenant/buyer has acquired equity in the property. As is often the case with contractual relationships, lease-purchase option agreements work fine if the terms and conditions are met and either the buyer/tenant moves out at the end of his term or exercises his option to purchase the property and closes.

If the occupant of the property instead decides to stop making payments and remain in possession until forced out, the inequity begins to become evident. The buyer/tenant may now argue that things are not as they appear. Looking for any plausible argument, he may assert that the lease is really deferred purchase money financing and that the portion of the rent credited to the purchase price is really mortgage amortization. Adding insult to injury, the buyer/tenant may claim that the security deposit is really the down-payment. The buyer/tenant is clinging to the legal argument that he has acquired equity in the property by virtue of the fact that some of his payments have reduced the balance due under the purchase option.

Under these circumstances, the owner now finds that he has shot himself in the foot twice. He may not avail himself of the streamlined FED residential eviction process applicable to a pure lease and, without a deed of trust, he may not have access to the expeditious public trustee foreclosure process. Much to his surprise, the seller/landlord is cast as a lender with an equitable mortgage securing his right to payment. The only way for him to regain possession of his property is through a full-blown legal foreclosure.

Any seller contemplating such an arrangement should consult an attorney for assistance in negotiating the terms and drafting the documentation in a manner which minimizes the risk of this inequitable result.

Finberg becomes Re/Max counsel after return from sabbatical in Israel

Fresh and refreshed from an 18-month sabbatical in Israel, Matt Finberg is tackling the challenges of reopening his practice in a recession while providing general counsel services in-house at RE/MAX of Boulder.

After moving from Washington, D.C., in 1994, Matt practiced law for 13 years in Boulder before moving to Israel with his wife, Shelly. There they built and operated an art gallery and café and immersed themselves in the culture and people of his heritage.

Operating at the site of the excavation of the Tabernacle in Shiloh, they had the pleasure of hosting tourists from all over the world. “The transition from barrister to barista was easier than I expected. I may have been able to do that the rest of my life, but we missed our children far too much to be that far away from them,” he says, noting the couple has four children, ranging in age from 18 to 28.

Personally, his time in Israel allowed Matt to learn about the culture of his people and homeland, and experience what it was like to “return home,” something for which the Jewish nation has been praying for 2,000 years.

The experience also gave Matt a new appreciation of “the greatness of the United States and the society we have here, the relative high-functionality of its government and economy. Although there really is no place like home, I think it’s good to pursue your dreams wherever they may take you at any age,” he says.

The sabbatical did what it was meant to do, which was to allow Matt to clear his head, refocus on his life’s path and professional objectives, and return to the U.S. and work with a new energy.

“I recommend that everybody take a sabbatical to take a fresh look at life, unencumbered by familiar routines and surroundings; it doesn’t have to be half-way around the world,” he says.

Matt acknowledges that re-entry to life in the States has been a bit bumpier than expected, noting that his job has changed with the difficult economic times. “I’m feeling refreshed, but it’s frustrating for me, as it is for many business people, that it’s taking so long for us to get back on track.”

While practicing in Washington, D.C., in the late 1990s, Matt represented the National Sales Office of the Resolution Trust Corporation, and he sees many similarities between the stagnation in real estate today and that which crippled the savings and loan industry back then.

“The spoils are there and they will go to the swift and the imaginative," he says. "The government cannot accomplish even a fraction of what bold and creative entrepreneurs will achieve when given a free economy (not a handout) in which to operate. It’s the role of attorneys to help clients re-vision their businesses to first protect what they have and then achieve what they dream.”

In addition to real estate law, Matt also handles commercial transactions, business formations, and estate planning. He welcomes outside clients as well as provides general counsel representation to RE/MAX of Boulder.

“I appreciate the challenge of helping clients of face this economic climate,” he says. “It’s much more challenging and perhaps interesting to help create opportunities to pull ourselves up by our bootstraps – to not look to the government for a solution but create to one ourselves.”

Matt’s office is in the concierge suite in the RE/MAX of Boulder building, 2425 Canyon Blvd. You can reach Matt by e-mailing matthew@finberglaw.com or by calling (303) 717-3759. To find out more about his practice, visit www.finberglaw.com.

August data for manufacturing, pending home sales bodes well for economy

August brought good news for both the manufacturing and housing industries, which translates into a positive outlook for the general economy, as well.

The Institute for Supply Management announced that the industry’s 18 consecutive months of decline ended in August, when the PMI for manufacturing registered 52.9 percent. That’s 4 percentage points higher than the 48.9 percent reported in July and the highest reading since June 2007, when the index also registered 52.9 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

August was also the fourth consecutive month of growth for the overall economy, since a PMI higher than 41.2 percent, over a period of time, generally indicates as much. The PMI has been at 42.8 percent or higher since May.

The National Association of Realtors also had encouraging news in August, reporting that the Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007 when it was 100.7 and pending home sale contracts have now risen for a record six straight months.

"Other buyers are taking advantage of low home values before prices turn higher," says Lawrence Yun, NAR chief economist. "Nationally, the typical mortgage payment now takes less than 25 percent of a middle-income family's monthly income to buy a median-priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970. As long as home buyers stay within their budget, mortgage payments will be very manageable."

The NAR estimates that about 1.8 million to 2 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit. Buyers have little time to act because they must complete the transaction by Nov. 30 to qualify for the credit. Unless extended, contracts signed but not completed by that date will not be eligible, as it is taking approximately two months to complete home sales in the current market.

The Pending Home Sales Index in the West the index jumped 12.1 percent to 112.5 and is 20.0 percent above a year ago. The Northeast index declined 3 percent to 78.8 in July but is 4.7 percent higher than July 2008. In the Midwest the index slipped 2 percent to 88.1 but is 8.1 percent above a year ago. In the South, pending home sales activity rose 3.1 percent to an index of 103.8 in July and is 12.0 percent above July 2008.

Index report promising while governor unveils job-creation strategy to jump start economy

The Goss Institute for Economic Research delivered good and bad news with its recent release of the overall index for the Mountain States region. The leading economic indicator for the three-state area including Colorado, Wyoming and Utah, climbed above growth neutral for July and points to improving economic conditions in the months ahead.

The overall index, or Business Conditions Index, rose sharply to 51.5 from June’s weak 41.4. An index of 50.0 is considered growth neutral with recent readings weak but improving. The July employment index inched higher to a less-than-healthy 43.5 from June’s 40.9.

The region lost jobs at a rate of 5.0 over the past three months and surveys indicate they will continue but at slower pace, says Dr. Ernie Goss, the director of the Goss Institute for Economic Research. Nearly 48 percent of business buyers said they expected more layoffs in 2009.

“On a more positive note, readings over the past several months indicate that the region's leading economic indicator has bottomed out, with the region's Business Conditions Index is likely to continue its upward trend in the months ahead,” Goss says. “I expect the regional negatives to get less negative in the months ahead as the Federal Reserve’s accommodative economic policy, federal deficit spending and a stabilizing housing market have positive impacts.”

As far as the housing market, Goss also had a positive report: “Very low interest rates, both short-term and long-term, a stabilizing housing market and aggressive federal economic policy have clearly lifted the economic outlook of supply managers in the Mountain States Region, while at the same time they have contributed to upward pressures on prices. We have yet to record any restocking of inventories for raw materials and supplies. However, I expect replenishments in the second half of 2009 to help stimulate the regional economy.”

Goss' overall outlook was promising, as well: "Colorado's economy is slowly crawling back to growth neutral according to our survey. The state is not likely to experience any positive growth until the final quarter of 2009," he was reported as saying.

Meanwhile, Colorado Gov. Bill Ritter recently unveiled a statewide job-creation strategy in hopes of quicker and stronger economic recovery.

Ritter says the Jobs Cabinet, established in 2008, will help create a highly skilled and educated workforce and improve the competitiveness of Colorado business. It is comprised of top business, economic development, education and work-force development experts, along with several members of the Governor’s cabinet.

The report, titled “Economic Competitiveness through Collaboration, Talent Development and Innovation,” offered five major recommendations:

• Collaboration: Strengthen, expand and align existing — but isolated — local education, economic development and work-force training programs to better meet the needs of the work-force.

• Engagement: Do a better job talking to and engaging employers in the job-training process so that education, economic development and work-force-training providers have a better sense of what businesses need.

• Marketing: Aggressively promote work-force development programs so Colorado businesses can use those programs instead of spending money on more expensive in-house training programs.

• Information: Develop a coordinated Web site that provides business with easy access to local work-force resources and information.

• Leadership: Provide senior executive leadership from the Governor’s office to spearhead implementation of these recommendations, measure progress and make adjustments as necessary.

“Government alone cannot fix this economy or create more private-sector jobs,” the governor said in unveiling the strategy. “But we can do our part. We can create a better business-friendly environment. We can strengthen relationships and break down silos. And we can do a better job asking businesses ‘what can we do for you?’ rather than sticking to business as usual.”

What recession?! The rich enjoy their luxury suites despite economic woes

Apparently not everyone is equal during a recession – or at least in how they are able to escape the gloom and doom that accompanies it.

According to an annual survey by Financial News’ sister publication, Wealth Bulletin, not only are the rich and famous still spending time in the world’s most luxurious and expensive hotels, but they are paying more – sometimes twice as much – to do it. For instance, guests staying in the Royal Penthouse Suite of the President Wilson Hotel in Geneva, Switzerland are paying $65,000 for the four-bedroom, six-bathroom penthouse – twice as much as last year – making it the most expensive hotel room of 2009.

The hotel's management blames the increase on "buoyant demand" from government officials and U.N. diplomats, according to an article in The Wall Street Journal.
Compared with the Royal Penthouse Suite’s price, the $35,000 a night to stay in the the Ty Warner Penthouse at the Four Seasons Hotel in New York appears affordable … almost. Its price increased a modest $1,000 from last year’s, considering prices for the most luxurious hotel suites have risen by an average 10 percent this year.

Herbert Ypma, founder of the Hip Hotels brand, told The Wall Street Journal that high-end hotels are benefitting from their clientele taking more time off than usual and, therefore, spending more time in their luxurious suites. "Money was never the issue – time was,” Ypma says.

Hoteliers attributed the increased demand to government officials, including President Barack Obama and his entourage, filling in the gap left by business travelers. Obama, for instance, took over the entire Ritz-Carlton Hotel in Moscow for three nights in June. The President Wilson Hotel representative says high-level government officials are fuelling demand for its hugely expensive Royal Penthouse Suite.

Vivian Deuschl, spokeswoman for Ritz-Carlton Hotels, told The Wall Street Journal that demand is also coming from wealthy leisure travelers who are “are taking one big vacation, but pulling out all the stops.”

The 10 most expensive hotel suites in the world, according to Wealth Bulletin's survey for 2009, are:

1. The Royal Penthouse Suite, President Wilson Hotel, Geneva – $65,000 per night

2. Ty Warner Penthouse, Four Seasons Hotel, New York – $35,000 per night

3. The Presidential Suite, Hotel Cala di Volpe, Costa Smeralda, Sardinia – $34,000
per night

4. Villa La Cupola Suite, Westin Excelsior, Rome – $31,000 per night

5. The Presidential Suite, Ritz-Carlton Tokyo – $25,000 per night

6. The Bridge Suite, The Atlantis, Bahamas – $22,000 per night

7. The Imperial Suite, Park Hyatt Vendôme, Paris – $20,000 per night

8. Royal Suite, Burj Al Arab, Dubai – $19,600 per night

9. Royal Armleder Suite, Le Richemond, Geneva – $18,900 per night

10. The Ritz-Carlton Suite, The Ritz-Carlton, Moscow – $16,500 per night

Principal Residence Gain Exclusion - it's not what it used to be

Somebody had to fund the benefits of the Housing and Economic Recovery Act of 2008 (P.L. 110-289) , and that may very well be you. In order to offset an estimated $2 billion of the cost of the legislated federal relief and stimulus, one of our favorite real estate tax avoidance strategies was dealt a serious blow.

Prior to amendment, Internal Revenue Code Section 121 generally allowed a taxpayer to exclude from taxation the gain from the sale of a principal residence if it was so used by the taxpayer for at least two of the five years preceding the date of the sale. Gain was fully excludable up to $250,000 in the case of a single taxpayer and up to $500,000 in the case of a married couple. This allowed us to avoid recognition of gain on the sale of business or investment property simply by living in it for at least two years before the sale. This was an easy and safe tax avoidance strategy for people who wanted to dispose of rental property or a vacation home without having to reinvest the proceeds in like real estate.

Effective Jan. 1, 2009, gain realized from the sale of a principal residence must be allocated between periods of qualified use and nonqualified use in determining how much of it may be excluded from recognition. Nonqualified use is defined as use other than as the principal residence of the taxpayer or the taxpayer’s spouse or former spouse, and will result in at least partial taxation of gain.

Example: A taxpayer owns two properties. One is his principal residence in Boulder which he purchased in 1992. The other is a Vail vacation condo purchased Jan. 2, 2009 for $400,000. His plan had been to sell the Boulder house this fall, pocket the cash, and then move into the Vail condo on Sept. 2, 2009, when it will be worth no more than what he paid for it. The former investment property was to be converted to his next principal residence eligible for full gain exclusion merely by his living in it for the next two years. He was then going to sell it on Sept. 2, 2011, for $650,000 (happy days are here again), and pocket the entire $250,000 gain tax-free. Although that would have worked in the past, under the amended law, the taxpayer is going to have to write a check to Uncle Sam.

Let’s look at the math: The period of ownership from January 2009 through September 2011 is 32 months. The period of nonqualified use of the Vail condo before it was converted to the principal residence was eight months, or 25 percent of the time the taxpayer owned the condo. That means that $62,500 - or 25 percent - of the $250,000 gain is now taxable.

It does not matter if there was no appreciation during the period of nonqualified use. It does not matter if the property was purchased with the genuine intention of making it the principal residence as soon as possible. Gain will be taxed if there was any nonqualified use after 2008.

Although the portion of the gain from the sale of property converted from investment or business use will be reduced the longer the taxpayer occupies it as his principal residence, it will never be entirely eliminated. At least for now, this loophole has been substantially narrowed, and we will need to look to other strategies to shelter, defer and exclude gain from the disposition of real estate.

While economists see improvement coming, real estate lags behind

Economists are touting the end or near-end of the recession this quarter, but the real estate market – which lags the condition of the economy by six to 12 months – continues to reflect the struggles we experienced from the summer of 2008 through early 2009.

Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor Association, says with the delayed summer sales he expected, he thought the July market statistics for Boulder County would have showed more gains than the “modest improvement” from June’s sales they reflected.

“The reality is sales in July are down 10 percent from last year; but month-to-month, comparing June with July, it was stable,” he says. “An additional few homes sold in the market over that period – not a robust market. I expected to see more improvement than that. I’m a bit disappointed that we didn’t see more strength. But we continue to see difficulty with residential lending and the jumbo loans are still very difficult to get at this time.”

The market is still driven by economic uncertainty and tighter financial markets, Hotard says.

“Some folks are adjusting prices to move property but in a lot of cases, there’s only so far you can go,” he says.

Hotard adds, “I think home prices are holding up pretty well in this market. Boulder had only a 2.2 percent decline; given the weakness of the market, that’s astonishing. And its average sale price year-over-year increased almost a half percent.”

While the economy may have hit bottom and is on its way up, it’s going to take some time before the real estate market reflects those improvements, he says. Hotard stands by his previous projection that the housing markets will begin a slow but sustainable growth in the second half of 2010.

“I do think we’re on the bottom and I think we’re going to stay there for a while,” he says. “I don’t see the economic recovery necessary to propel area home sales forward.”

People are still losing their jobs and companies aren’t adding enough jobs to support dramatic improvement in the real estate market, though it shouldn’t get worse, Hotard says.

“I think area housing markets are relatively stable,” he says, noting Boulder is doing well compared with other parts of the nation. “We are fortunate to be here.”

And the market continues to offer as a great opportunity for investment, especially as the fall semester of college gets underway, Hotard says.

“It’s a great time for parents to invest, to provide housing for their student to live in and watch that investment grow over the course of that student’s college career,” he says.

National speakers slated for Fall Real Estate Conference

Re/Max of Boulder's Fall Real Estate Conference is set for November 19, 2009. Here's just a teaser on the speakers - more will follow. But save the date!

FEATURING:

Paul C. Bishop, Ph.D., Managing Director, Real Estate Research
NATIONAL ASSOCIATION OF REALTORS

Paul Bishop is the Managing Director of Real Estate Research at the NATIONAL ASSOCIATION OF REALTORS®. Dr. Bishop leads the Research Division’s survey and market research activities including analysis of real estate business and policy issues.

Prior to joining the NAR in 2001, Dr. Bishop was a Senior Financial Economist in the Division of Insurance at the FDIC. Between 1991 and 1996, Dr. Bishop was a Senior Economist at the WEFA Group in the Regional Consulting and Forecasting Group where he managed the state and metropolitan area forecasting service and worked with clients on numerous consulting projects. Dr. Bishop earned his Ph.D. in economics from the University of Illinois at Urbana-Champaign and resides in Alexandria, Virginia.


Brad Blackwell, Executive Vice President, Retail National Sales Manager
Wells Fargo Home Mortgage

Brad attended the University of Colorado and started his career in Boulder as a loan officer in 1983. Drawing on his 28 years of mortgage lending and banking business experience, Blackwell focuses on capturing opportunities to strengthen Wells Fargo Home Mortgage’s retail market share and market profitability within all 50 states.

Blackwell was named executive vice president, retail national sales manager, in June 2004 after serving three years as a senior vice president, national sales manager, for Wells Fargo Home Mortgage’s Pacific Markets. He led efforts to double Wells Fargo’s retail share on the West Coast.
Blackwell is responsible for leading WFHM’s Distributed Retail sales team of more than 10,000 home mortgage consultants who originate residential mortgage loans in more than 800 stores throughout the country. The Distributed Retail sales team strives to increase market share using WFHM’s innovative lines of prime, subprime, renovation, reverse, builder, and private mortgage banking products and programs.

Contractors combine form and function in designing outdoor living spaces

Not only has outdoor living become more popular in recent years, it’s become more than just decks and patios, according to Remodeling magazine.

Contractors are installing outdoor living rooms with vaulted ceilings, fireplaces and kitchens, and they’re maximizing whatever views the homeowners have. Here are some of the ways you can make your outdoor living space a bigger part of your dream home:

• Instead of just a pool house to go along with the pool, include a studio for art, architecture, pottery or other useful function;

• Make sure your outdoor living structure blends with the existing house and its roof ties to the house’s roof;

• If you’re building a lanai, or porch or veranda, maximize openings and views;

• Find decorative ways to provide the outdoor living space screening, such as a pergola (trellis) and making tall planter platforms part of the deck rail so they don’t take up floor space and can drain onto the ground;

• A covered outdoor structure creates a more interesting roofline and dresses up what otherwise is a simple box;

• Choose materials for your porch or veranda that hold up well in the outdoors and, more specifically, in your climate;

• Build the design of your outdoor space on paper before you physically build it to work out all the bugs;

• A sliding glass door from the interior to the exterior living space could optimize the view of the lake, mountains or other geography outside your door;

• Your outdoor space should face south, if possible, so that the sun passes over rather than shines in your face in the morning or evening;

• Have your contractor coordinate with the landscape designer and pool installer to coordinate placement of larger structures and to hide equipment.

Boulder named best Colorado city for starting up business

Bigger isn’t always better when it comes to business, especially when starting one. And according to BusinessWeek magazine, Boulder is among the best of smaller cities in which to do just that.

In fact, with a population of 91,000 residents, Boulder is just as good of a place to start a business as San Francisco (population 733,000) and New York (8.2 million), according to research conducted by GIS Planning for BusinessWeek.

According to the magazine, Boulder has 4.72 startups per 1,000 people and 73 small businesses per 1,000.

“What sets Boulder apart is the collaborative spirit of the town. When you start a company in Boulder, instead of every other startup in town trying to beat you, every other startup in town instantly becomes your biggest fan,” says Rob Johnson, co-founder of conference social networking company EventVue, in touting the benefits of starting up a business in Boulder to BusinessWeek.

Cost of living and quality of life are drawing entrepreneurs to small cities, and those communities are recognizing entrepreneurs as an important part of their economy by helping retain existing jobs and attracting large corporations, according to the magazine.

In smaller cities, businesses don’t face the competition and higher costs as they would in bigger cities, and they also enjoy a higher profile to attract workers and may receive government incentives to create jobs.

GIS Planning weighed 11 factors to gauge an area’s entrepreneurial climate, including the number of small businesses and startups, the quality of the work force, how many universities were in town, and measures of innovation such as the number of patents issued and the amount of venture capital invested. It sought out one small city (with a population between 20,000 and 200,000) in each of the 50 states to name the best in which to start a business.

BusinessWeek then asked entrepreneurs in each city what people should know about starting a business there. Many said factors such as affordability, availability of talent, existence of a thriving business community and quality of life helped them choose where to open shop.

Out West combines window sales and service to improve transaction, experience

Del Jolly, owner of Out West Windows, doesn’t just sell windows; he also installs them.

In the window business for seven years, Del has worked for several different companies – including the biggest in the state – but he chose to invest in Out West Windows because it offers a wider selection at an excellent price, he says.

Del speaks highly of his installation crew, not just because he’s on it, but because all of them are salesmen, as well.

“We have a great installation crew who are efficient and considerate of you and you’re home,” he says. “We value our clients and want their window-replacement experience to be great. This is why I am your salesmen, and I also do the install. Other companies have salesmen who close the deal never to be seen again while an unfamiliar crew does the install. Because we are small, our salesmen are also on the install crew. I believe it gives the homeowner peace of mind when the salesman comes back to do the work.”

If you’re not sure if now is the time to replace your home’s windows, Del offers several reasons why you should make this wise investment with Out West Windows:

• President Obama recently has allowed for a $1,500 tax credit when you buy new windows for your home, and this write-off ENDS in 2010;
• Using Out West Windows will insure you get a great product at a great price;
• Reduce your heating bill by up to 35 percent;
• Increase the value of your home;
• Dampen noise pollution up to 40 percent;
• Improved security features of new windows over older ones;
• Maintain the temperature in your home during the winter and summer, making your home more comfortable;
• Out West Windows works with multiple window suppliers, insuring that you get the best window for your home.

“The toughest decision is choosing the right company to do the job,” Del says. “After visiting with Out West Windows, I am confident you will have found the right company.”

Out West Windows will provide a free estimate and discuss the many options you have before you invest in new windows. Visit its Web site at www.outwestwindows.com, call (303) 506-8563 or e-mail Del Jolly at deljolly@outwestwindows.com to learn more about this money-saving home improvement.

Surveys say 3Q will see the last of recession

Surveys of economists by both The Wall Street Journal and Blue Chip Economic Indicators, reported by Reuters, show that most respondents believe the recession has ended already or will end in the third quarter of 2009.

The recession began in December 2007, and has been the worst in U.S. history since The Great Depression of the 1930s.

According to the WSJ, 27 of the 47 economists that responded to the survey said the recession had ended and 11 saw a trough this month or next. "Gross domestic product in the third quarter is now expected to show 2.4 percent growth at a seasonally adjusted annual rate amid signs of life in the manufacturing sector, partly spurred by inventory adjustments and strong demand for the 'cash for clunkers' car-rebate program," the WSJ reported.

The employment report for July, in which employers cut only 247,000 jobs and the jobless rate fell for the first time in 15 months, was better than expected and suggests the worst is over, according to the WSJ. Although the unemployment rate is expected to rise to 9.9 percent by December, economists forecast that far fewer jobs will be lost over the next 12 months than they had forecast in July.

About 90 percent of the private economists the Blue Chip Economic Indicators surveyed said believe the economic downturn will conclude this quarter, according to Reuters.

Their assessment followed the release of data showing the gross domestic product (GDP) contracted at a 1 percent rate in the second quarter after falling 6.4 percent in the first quarter of the year. Other recent data, including housing and key labor market indicators, have indicted a bottoming in the recession and the economy close to turning the corner, according to Reuters.

Meanwhile, the Blue Chip and WSJ surveys' findings are similar to a Reuters poll published in July, which predicted growth in this quarter, as well, though a "brisk pace of expansion" was not expected until late 2010.

"Debate now centers on the speed, strength and durability of the recovery," the survey said.

Denver a popular destination for business travelers

With praise for its "beautiful architecture and wide-open spaces" as well as Red Rocks Amphitheater and Black Hawk casinos just a drive away, Denver landed sixth on USA Today’s list of Road Warrior’s top destinations.

The entire state of Alaska, with its friendly people and the beautiful outdoors, came in at No. 1, and Texas had two cities – Fort Worth and Houston – on the list. USA Today’s assembled the top destinations following a survey of business travelers who are volunteer members of its Road Warrior panel. According to the newspaper, about 175 responded.

For these travelers, ample recreational opportunities mean a business trip isn’t just for business, and they get to see and do things they wouldn’t normally at home. The friendliness of local residents or lifestyle can also make or break a destination, according to USA Today. Extreme temperatures can turn off many business travelers from certain places, as can constant sound of slot machines in otherwise popular gambling communities to those who don’t care to gamble.

Here’s a look at USA Today’s Road Warriors’ top 10 favorite business destinations:

1. Alaska
2. Asheville, N.C.
3. Austin
4. Boston
5. Chicago
6. Denver
7. Fayetteville, Ark.
8. Fort Worth
9. Houston
10. Indianapolis

Sund shares Schroll Cabinets with Boulder area

When Bob Sund finds something he believes in, he commits himself for the long haul. Like when he came moved from Utah to Boulder to attend the University of Colorado – and never left.

“I loved the mountains; I’m an outdoorsy person,” the father of 7-year-old twin girls says of why he’s stuck around Boulder for 20 years. “I love to climb and hike and ski – all those outdoor activities.”

And Sund was building a custom home in the area when representatives from Cheyenne, Wyo.-based Schroll Cabinets approached him about using their cabinets in the home. Sund did and was so impressed with their product that he joined the company. Working in design and sales, covering Boulder and the greater Denver area, he has been with Schroll Cabinets for 16½ years.

“The product was heads and shoulders above anything else – the quality, the craftsmanship,” Sund says of why he believes in the company for which he works. “They come straight from the factory, so there’s no middle man.”

He notes that the company is still family owned while serving customers up and down the Front Range and two other states well with its own trucks and personnel. It has become the largest custom cabinetmaker in the Intermountain West and also produces custom counter tops, made with products such as Silestone, natural soapstone, granite, slate, wood, butcherblock, Corian and more.

Sund became a part of the RE/MAX of Boulder family 10 years ago when he worked on a custom home with some of its agents. Since then, he has worked with RE/MAX on several “fix and flip” projects, the 34-unit condominium project on 28th Street known as The Flats and on the Lotus Lofts.

To contact Bob Sund, call (303) 464-8996 or e-mail bsund@schrollcabinets.com. To learn more about Schroll Cabinets, visit its Web site, www.schrollcabinets.com.

Board suggests relaxing house-size limits in proposed ‘pops and scrapes’ ordinance

The Boulder City Council will soon hear the Planning Board's recommendations on a proposed "pops and scrapes" ordinance that limits the size of remodeled and new homes in established neighborhoods.

The ordinance addresses the issue of remodeling homes to increase their size as well as "scraping" of an old home to replace ("popping") it with a new, bigger home that doesn't fit in with the character of its established neighborhood.

The Planning Board’s recommendations, according to the Boulder Daily Camera, are more relaxed than what the city staff had suggested. Among the changes the board is recommending:

- Increase the floor-area ratio – the finished square footage of a house divided by the total lot area – allowed from the staff-recommended 0.45 to .5;

- Increase the allowable footprint of a home from the staff-recommended 30 percent to a 35 percent;

- Exempting barns, sheds or other structures from all restrictions, including floor-area ratio and footprint, if the city designates them as historic landmarks;

- Limiting restrictions to the Residential-Low 1 district, the zoning for single-family houses, and not including zones for mixed-residential and residential estates. The board suggests re-evaluating the issue after a year to determine whether to include other districts;

- Excluding 150 square feet of covered decks or patios not on front patios in floor-area ratios, whereas the draft ordinance also allows for 300 square feet of front porches;

- Increasing restrictions on wall length and design, adding rules for wall articulation and substantially increasing permit fees.

The City Council will have its first review of the proposed ordinance 6 p.m. Tuesday, Aug. 4, in the City Council Chambers, 1777 Broadway. The final review and vote is scheduled for 6 p.m. Tuesday, Aug. 18, at the same location. For more information about the proposed ordinance, visit the city of Boulder’s Compatible Development in Single-Family Neighborhoods Web page, http://ci.boulder.co.us/index.php?option=com_content&task=view&id=9051&Itemid=22.

To provide feedback on the proposed regulations, visit http://ci.boulder.co.us/files/PDS/compatible_development/comment_sheet.pdf or e-mail johnstonj@bouldercolorado.gov.

Summer is finally here, bringing market improvements and optimism with it

The month of June brought no surprises as far as Boulder area real estate market statistics.

While the overall market is down compared with a year ago, it is starting to make the upward swing that usuaslly arrives in the spring, according to Ken Hotard, Boulder Area Realtor Association senior vice president of public affairs.

"We’re seeing continued growth," he says. "Home prices are holding well, and we’re continuing to see strength building from quarter to quarter."

In the second quarter of 2009, 807 single-family homes sold – an approximately 62 percent increase over the 499 that sold during the first quarter of the year. And the attached-home statistics are even more impressive: 176 homes sold in the first quarter compared with the 329 that sold in the second quarter – an 87 percent jump.

Hotard says that steady prices are a result of lower increases in inventory, supporting continued accurate and appropriate pricing, and the loosening of the lending market is helping the market, as well.

"Lending is opening up a bit and adding to the opportunity for buyers to get into a great market," he says. "I believe we will see strength in sales for the rest of the summer and into the fall."

Hotard says lending institutions are realizing that if they don’t lend money, they can’t make money, so they are becoming more comfortable in assisting buyers who can and will pay their mortgages on time and in full in securing loans. That, in turn, has opened the door to a larger pool of buyers who have been shut out of the market because of uncertainties in those credit markets.

"Rates are great, and home prices are driving buyers into the market," he says. "There’s great deal of opportunity for folks who have decent credit and can get into that marketplace. We’re seeing people get into that, and lenders are helping."

As they should, lenders are making more pragmatic decisions regarding loans and borrowers, and common sense more than fear if playing a big factor in those decisions, Hotard says.

"Data shows across the board the market is improving," he says. "We were kind of expecting that."

Louisville tops list of Best Places to Live

Colorado seems to have representation on every “best of” list out there, so it’s no surprise that yet another Colorado community heads up Money magazine’s latest Best Places to Live ranking of America’s small towns.

With a population of 18,800 people, a strong economy and plenty of outdoor activities, Money ranked Louisville as the best place to live for 2009. Ranked 13th, another Boulder County community – Superior – was the only other Colorado town to appear on the list.

Money’s findings were based on measuring and weighting factors Americans value most, including jobs and a strong economy, low crime, affordable homes, activities, schools, health care, diversity, weather and more. In addition to those factors, Money looked for that something special, such as community spirit, positive attitudes and old-fashioned charm, that makes a town the place to raise a family.

The magazine highlighted Louisville’s ice cream shops and Waterloo Café; its summer-long Friday-night street fair, complete with a beer garden, live music, and games for the kids, that runs all summer; a low unemployment rate, thanks to “robust” industries including high-tech, energy and health-care; high-rated schools; and plenty to do outdoors, such as nearly 30 miles of trails, Rocky Mountain National Park that is less than an hour away and world-class ski resorts within a two-hour drive. Those factors, along with great weather, little crime rate, good health care and low taxes make Louisville the town to beat.

Money reported that, with Denver, Boulder, and Eldora Mountain Ski Resort each less than an hour away, Superior’s name reflects its location, as well. Its 27 miles of trails, 594 acres of parks and open space, and nearby employers including University of Colorado, Sun Microsystems, IBM and Ball Aerospace, make Superior an ideal town to live in, as well.

Here’s a look at the small towns that made Money’s top 10 Best Places to Live 2009:

Keeping yard green and safe for family during summer months takes time, effort

While the summer months are popular for backyard barbecues and trips to swim beaches, there’s still plenty of work to do – especially on the yard. About.com recommends performing these tasks of yard care effectively and efficiently to ensure the safety of you and your property, save you money and free you up for the finer pursuits in life:

Mosquito control: Homeowners can defend themselves and their family and visitors against West Nile virus. Use mosquito repellents when you work or play outside; but, more importantly, gear your yard care to mosquito control by taking away breeding habitats for mosquitoes. That means common-sense sanitation, plus eliminating areas where water would puddle. Read this mosquito control article for reminders of some unlikely sources of standing water.
More: Mosquito Control

Tick control: While West Nile virus makes the headlines more often, Lyme disease spread by ticks, which, in turn, are spread by deer, is something you can protect yourself again. Limit deer incursions by planting deer-resistant plants, and you'll limit tick infestation. It’ll also save you money, as your garden won’t feed the deer instead of you.
More: Deer-Resistant Plants: Preventing Lyme Disease Naturally

Keep the lawn green: Learn how to avoid replacing your lawn by applying lawn fertilizers on a schedule. And save time and energy by practicing effective weed control, having the right mower and using that mower properly. To begin, I look at selecting grass types, watering lawns and – a rather unpleasant aspect of yard care – removing thatch.
More: Lawn Care Tips

Tune up your lawn mower: Lawn maintenance becomes a major hassle unless your lawn mower is running properly. Instructions are provided here for the do-it-yourselfer to perform a lawn mower tune-up. A lawn mower tune-up consists of three easy steps.
More: Lawn Mower Tune-Ups

Make yard care easier - automatic irrigation: Whether irrigation systems are a wasteful component in lawn maintenance depends on how you program them. The frugal can save money on their water bills in the long run by using irrigation systems, if they ensure the settings are at their most efficient. And there’s no question irrigation promotes easier yard care.
More: Automatic Irrigation Systems

Plant drought-tolerant plants in sunny areas, shade-tolerant plants in shady areas: Make life easier by making sure plants that are meant to take a lot of sun are planted in your sunny areas, and plants that prefer the shade are in your shady areas.
More: Drought-Tolerant Plants; More: Shade-Tolerant Plants

Preparations for fall plantings: Don't wait until fall to think about displaying fall color on your property. Your first step should be to get annuals on the cheap and nurse them along till fall arrives. The article also explores plant choices for fall color, as well as how to arrange the plants.
More: Fall Flowers on the Cheap