“National Mortgage Realities and Colorado’s Proposed Solutions”

As Realtors, we know the importance of mortgages. It is the avenue through which most of our clients are able to purchase real estate. If you have watched the news lately, you know that the mortgage industry is having its challenges. These challenges have and will continue to translate into challenges for our industry.

According to a national study released September 13, 2007, and reported in the National Realty News, about 33% of home purchase closings of loans originated by mortgage brokers were canceled during August 2007. This study also found that 57% of brokers’ customers could not refinance adjustable rate mortgages (ARMs) that had resetting interest rates.
The survey of 1,744 brokers, conducted August 23-31, provides one of the first quantitative measures of the major disruptions in the mortgage originations market which started in early August. The survey was conducted by Campbell Communications of Washington.
The survey found that home purchase closings were more often canceled for homebuyers with subprime credit. Fifty-six percent of subprime homebuyers in August had canceled closings while 21% of homebuyers seeking prime conforming mortgages had canceled closings. In another survey of real estate agents taken by Campbell Communications back in 2004, respondents indicated that only 4% of home purchase closings failed in that timeframe for mortgage-related reasons.

The Colorado Legislature has its own solutions to mortgage woes and has squarely blamed the mortgage brokers of this state. Their solution: more regulations of mortgage brokers. Effective January 1, 2008, most mortgage brokers making loans in Colorado will be required to be licensed, have fingerprints on file and complete criminal background checks, carry E&O insurance, and complete continuing education. (SB 07-203).

Mortgage brokers will also be required to provide clients with closing documents at least one day prior to closing. (Read that sentence again please!) Clients will have a chance to review all loan documents at least the day before they have to sign them. It will be interesting to see how this requirement plays out in practice. Will lenders really have documents ready a day before closing? Without this delivery, will closings need to be delayed, thus putting the earnest money of the buyer at risk? As you might expect from a new law, it raises more questions than provides answers.

If you are a mortgage broker and unaware of these new rules, go to http://www.dora.state.co.us/real-estate/mortgagebrokerregistration.htm to learn more.

Signing out from Frisco – see you next month.

COPPER MOUNTAIN AND FRISCO: The highs and the lows.

Let’s start with the highs – residential properties over Two Million Dollars: In Frisco, two properties sold in 2006 over $2 million. According to the MLS, these are the only residential sales ever in Frisco over $2 million. Currently in Frisco, there are six active listings over $2 million. At Copper, one property has sold for over $2 million in the history of the MLS and it closed in 2006 also. One property listed at $2.7 is currently pending, and there are 11 active listings over $2 million.

Now the lows – In Frisco, only one deed restricted unit is active under $250,000. In Copper two studios are active under $250,000. In 2006, 30 properties under $250,000 closed in Frisco. In 2006, 51 properties under $250,000 closed at Copper. Thus far in 2007, only 9 properties in Frisco have closed under $250,000 and only 15 properties in Copper have closed under the same price. These statistics tell us what we already know – properties under $250,000 in Frisco and Copper are becoming a thing of the past. If you have clients wanting to purchase in this price range, you may need to discuss partial ownership or move to a different market. Happy September to everyone!

Amy Nakos is Named the Summit Association of Realtors Director for Copper Mountain and Frisco

With excitement and honor, I take the baton from Bonnie Arnold as your SAR Area Director for Frisco and Copper Mountain. One of my goals is to provide the SAR membership with interesting and relevant articles, perhaps with a bit of humor and fun.

On Thursday I found out that on Monday I needed to submit this, my first article. Good thing I was in Steamboat Springs for the 25th Annual Colorado Bar Association Real Estate Symposium, where I learned some new and relevant legal material that affects our lives as Summit County Realtors. Buckle up, here we go.

I. Forms Highlights

By now we are used to getting new Colorado Real Estate Commission (CREC) forms every January 1. The year 2008 will be no different. During the 2007 legislative session, our State legislators decided that the public, when buying a residential property or residential vacant land, must know where the water comes from. (House Bill 07-1156) Voila . . . A new disclosure called the Water Source Disclosure, where the Seller must disclosure whether the water source is a well, water provider, or other source of water. Listing agents will probably want to get this disclosure at the same time as the Square Footage Disclosure and the Seller’s Property Disclosure.

Speaking of Listing Agents, a new proposal for the forms is calling the listing agent the “Broker working with the Seller.” As you might imagine, the old “Selling Broker” would now be the “Broker working with the Buyer.”

Another proposal for the Contract to Buy and Sell Real Estate is changing the New Loan Contingency paragraph. No more filling in interest rate, amortization and monthly payments. The buyer will have the right to exercise this contingency if he or she does not get a loan in his or her “subjective discretion” by the loan conditions deadline.

II. Mortgage Brokers

Attention affiliate mortgage brokers!! Because of the drama and trauma of subprime loans, ARM’s, and other non-conventional mortgages going into foreclosure, especially in Colorado, our legislature has laid the blame on your profession. Their solution: pass laws regulating mortgage brokers. Effective January 1, 2008, most mortgage brokers making loans in Colorado will be required to be licensed, have fingerprints on file and complete criminal background checks, carry E&O insurance, and complete continuing education. (SB 07-203). Mortgage brokers will also be required to provide clients with closing documents at least one day prior to closing. (Read that sentence again please!) It will be interesting to see how this requirement plays out in practice. Will lenders really have documents ready a day before closing? Without this delivery, will closings need to be delayed, thus putting the earnest money of the buyer at risk? As you might expect from a new law, it raises more questions than provides answers. If you are a mortgage broker and unaware of this new rule, go to http://www.dora.state.co.us/real-estate/mortgagebrokerregistration.htm to learn more.
Signing out from Frisco – see you next month.

AMY NAKOS ATTENDS SPECIAL TRAINING,
BUILDS EXPERTISE IN LUXURY HOME MARKET

(Vail, CO) -- Amy L. Nakos, owner and managing broker of Landmark Real Estate Group, LLC in Frisco, Colorado recently completed a luxury home marketing training course offered by the Institute for Luxury Home Marketing.

The course - which covered such topics as demographics of the affluent, lifestyle segmentation, trends and amenities in today’s luxury home product, and creating a marketing plan for the multimillion dollar property – was taught by Laurie Moore-Moore, President of the Dallas-based Institute and author of the book, “Rich Buyer, Rich Seller! The Real Estate Agents’ Guide to Marketing Luxury Homes.”

“The course is a step towards earning the prestigious Certified Luxury Home Marketing Specialist designation which The Institute awards internationally to sales professionals who meet performance standards in the upper-tier residential market,” said Moore-Moore. Amy Nakos is an example of a real estate broker who works to hone the special skills and competencies necessary to provide exceptional service in the fine homes and estates marketplace.”

Nakos, who is also a licensed Colorado attorney, owns Landmark Real Estate Group, LLC with her husband Darren. She specializes in Luxury Home Sales and Marketing, New Construction Sales and Consultation, and Resort Properties. She recently represented buyers in the purchase of a luxury condo in Keystone for $2.1 million, a record breaking sale for condos in Summit County.

For current information on the upper tier market, contact Amy Nakos, Landmark Real Estate Group, LLC, 970-668-1430 or anakos@landmarkregroup.com.

Shared or Fractional Ownership – Getting a Luxury Vacation Home at a Fraction of the Cost


What is shared or fractional ownership?

Shared or fractional ownership is exactly what the name entails: owning a fraction of a piece of real property. Most often this type of ownership is used in resort markets for vacation homes. The percentage of ownership depends on the property. I have seen ½, ¼, and 1/6 ownership opportunities here in Summit County. This form of real estate ownership falls between full ownership of an individual vacation home, and a time-share, which typically is one to two weeks of a year. With fractional ownership, owners get the use of the property more often than with a time-share, at a fraction of the cost of purchasing full ownership of a property.

Each property will have different governing documents specifying which owners own which weeks, usually on a rotating basis. The property will be managed similar to a homeowner’s association where fees are assessed to owners based on their percentage of ownership.

What are the benefits of fractional ownership?

With fractional ownership, your investment dollar will buy a higher quality piece of real estate than if you were purchasing a full ownership property. For example, you will be able to own a more luxurious vacation property, with a better location, more space and nicer amenities than if you spent the same amount of money on a full ownership property.

Prices in the resort market real estate sector have increased steadily in recent years. These markets have not seen any slowdown in real estate sales or prices. Because of this, vacation homes are becoming too expensive for many people to afford. However, fractional ownership offers an opportunity for people to own a luxurious and enjoyable vacation home at reasonable prices.

What is the downside of fractional ownership?

Fractional ownership may not be the right choice for every buyer. First, you may want to use your property on a holiday week, but it is not your week. For example, with ¼ ownership, you will get to use the property every fourth Christmas and every fourth Spring Break. If you think you would use the property for every vacation, shared ownership may not be right for you.

Second, a property management company will be necessary to keep the property clean, maintained, and ready for the next owner to use. Without one, owners may be disappointed at the way the place was left from the previous owners. This will incur additional costs for all the homeowners.

What is the future of fractional ownership?

Fractional ownership is a relatively new concept in real estate ownership created because of rising resort real estate prices. The resale market for fractional ownership is still being developed as fractional ownership continues to take hold in resort markets. I anticipate that as fractional ownership becomes prevalent, the resale market will grow.

Where do I get more information?

If are interested in learning more about fractional ownership, please email me at anakos@landmarkregroup.com, or call me at (970) 389-8388. I look forward to speaking with you.

Amy Nakos

Why Do You Need a Realtor® That Specializes in New Construction?

Building or purchasing a brand new home presents a myriad of different concerns than purchasing an “already lived-in home.” The rewards of living in a brand new home are tremendous – the new house smell, new appliances, new sinks, bathtubs and toilets!

I am not only a Realtor®, but also a real estate developer. I can help guide you through the building process, with its twists and turns, and help you understand the unique aspects of creating and owning a new home.

I maintain a network of reputable and fantastic architects and builders who will help you create the home of your dreams. I can assist you in finding funding from purchasing your lot to home completion. I will ensure that your new property receives the proper inspections, from third party inspectors, at the appropriate times. And when it’s time to decorate, I can match you with an interior designer that will make your house feel like home.

Let’s begin the journey to your dream home.

Teller Crossing Luxury Townhomes

Developed by Darren and Amy Nakos

Started September 1, 2005, Completed Spring 2007

Introducing . . .

Hello! My name is Amy Nakos. Welcome to my blogspot. A fantastic source for real estate information in Summit County, Colorado coupled with recommendations, personal insight and local insider tips.

I own and manage Landmark Real Estate Group, LLC, a boutique real estate company located in Frisco. My specialities include resort properties, luxury residences, and new construction. You can visit my website at www.landmarkregroup.com.


I can provide real estate and other information on the following resort areas: Arapahoe Basin, Breckenridge, Copper Mountain, Dillon, Frisco, Keystone, and Silverthorne.

I can be reached at 866-400-6767 or anakos@landmarkregroup.com.