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How Price is Trumping Location in Home Sales

Friday, October 30

The real estate world has long operated under the mantra, "Location, location, location." Whether you're talking about the spot for a new business or whether you're talking about buying a home, where exactly the property is located is an important factor. However, recent trends in the real estate market have changed the game up a bit.

Today, homes are selling at prices well below what they've been at in over a decade. Between tax credit incentives and low prices due to market pressures, people are snatching up homes like hotcakes. When you factor in low mortgage rates, it's no surprise to find that more and more homes are selling for less.

One of the current market phenomena is the return of repeat buyers to the real estate market. The ratio of repeat home buyers continues to grow, while the ratio of first-time home buyers shrinks. Nearly half of all home sales in the second quarter of 2009 were to repeat buyers. During normal market times, the ratio is more like two thirds new home buyers and one third repeat buyers.

In addition, many new and repeat home buyers are taking advantage of those current conditions. They are buying foreclosures, sometimes at a fraction of what the home would cost if it were not distressed. Other buyers want that $8,000 federal tax credit. Today, more people than ever can afford the price of a new home. Now, home buyers can get bigger homes for less money than just a few years ago.

Many major housing markets, including Denver, have seen a price stabilization in recent months, as well. What this means for home buyers is that we may very well be toward the bottom of where home prices are going to get. Now is as good a time as any to get into a new home because of these low prices. No one knows for sure how long it will be before home prices begin to rise again.

Home sellers are pricing their homes more realistically, too. Sellers are getting around 90% of their asking price, which is a rather staggering statistic considering just how low home prices have gone. On top of this, the average time it takes to list and sell a property is dropping, too.

In most areas, sellers outnumber home buyers by two to one. When you couple this with the prevalence of unsold homes and distressed properties, you can see the many reasons for these low home prices.

Capitalizing on Tax Liens, A Creative Investment Opportunity

Wednesday, October 28

Investing in Denver, Colorado Tax Lien Certificates

The city and county of Denver rely on real estate property taxes to pay for city government services such as police, fire, public schooling and medical services. When taxpayers do not pay their taxes, they become delinquent. Delinquent taxes become a serious problem because there is not enough cash flow for the city and county of Denver to provide their government services to their residents. In order to receive cash, the county will offer investors the opportunity to pay off these taxes and in return receive tax lien certificates which pay a high yield of return on their investment and give the investors an opportunity to purchase Denver real estate for pennies on the dollar.

How Tax Lien Certificates Work?

Tax lien certificates are offered for sale at auction on or before the second Monday of December every year at the Denver County Treasurer’s office.   The bid is for the amount of the back taxes. After the investor pays the back taxes, the county issues the investor a tax lien certificate. When the owner of the property pays off the delinquent taxes, the investor gets back their original investment plus nine percentage points above the discount rate, interest on their investment. The county issues the investor a check.

You always know how much you are going to get back. The property cannot be sold or transferred by the owner until they pay the taxes.  The worst scenario is you end up owning the property if the owner never pays off their back taxes.

The right of redemption for the owner to reclaim their property and pay their taxes is three years from the date of the tax lien certificate sale. If the owner does not reclaim the property, the investor is given a deed assigned at foreclosure by the Denver County Treasurer, and has now acquired the property for a fraction of the market value.

Where to Obtain a County Tax Sale List?

A delinquent property tax list is posted on the Internet website of the Denver County Treasurer’s Office about three to six weeks before the sale. The information included on the list identifies the name of the delinquent property owner, parcel number, legal description and the amount of taxes due.  Sometimes the list contains the assessed value of the property.

Why Tax Lien Certificates Are Good Investments

Here are some reasons why Denver, Colorado tax lien certificates are good investments:

  • The investor receives a high rate of return on their investment.
  • Tax lien certificates are a secure and safe investment because you are buying them from the government, and you get paid by the government.
  • You get to purchase Denver, Colorado real estate for pennies on the dollar.

Investors who are looking for a safe and secure investment with a high yield of return should consider investing in Denver, Colorado tax lien certificates.  There are 64 counties in Colorado, so you have a huge opportunity for investment right in your own backyard. You have nothing to lose, and everything to gain.

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John Dunn

Dunn and Company, LLC
Residential Real Estate Broker
Denver, Colorado

Phone: 720-353-0353
Fax: 303-320-3877




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