Denver Real Estate News

Denver, CO -Kim Block, CFP®, Managing Broker, CLHMS™, GUILD Elite™ a seasoned real estate professional with Empire Luxury Real Estate, has been honored with the prestigious "GUILD Elite™" designation by The Institute for Luxury Home Marketing. This esteemed recognition celebrates excellence and represents the best of the best in luxury home marketing.

To earn the GUILD Elite™ status, real estate professionals must demonstrate exceptional experience, knowledge, and expertise, along with a track record of continued success in the top tier of residential real estate. Kim's outstanding performance places her among an exclusive group of real estate experts who have successfully completed The Institute's rigorous training and proven their mettle in the multi-million-dollar market.

Kathleen Bibbins, General Manager of The Institute, expressed the rarity of agents who attain the GUILD Elite™ recognition, emphasizing their superior level of service within their community. She noted that sustaining multi-million-dollar success necessitates an exceptional degree of commitment to clients' needs.

Kim's specialized training and ongoing membership with The Institute empower her and her team with the knowledge and tools needed to provide top-tier service to affluent clients. The GUILD Elite™ designation showcases her unwavering dedication to being at the forefront of the field, delivering service excellence at the highest level.

"The essence of luxury service lies in exceeding expectations, anticipating every need, and leaving a lasting impression of excellence. I am dedicated to delivering precisely that—unparalleled service that reflects the epitome of refinement and care," said Kim, emphasizing her commitment to her clients' satisfaction.

With a remarkable journey in Finance and Real Estate, Kim has emerged as an expert in Denver Luxury residential properties. Her passion for delivering exceptional service and her keen understanding of the luxury market have earned her the trust and loyalty of her clients.

Kim Block's achievement of the GUILD Elite™ designation underscores her commitment to excellence and sets her apart as a sought-after agent for discerning affluent buyers and sellers.

*About Kim Block:*

Kim Block is a distinguished real estate professional and founder/owner of Empire Luxury Real Estate in Denver, CO. What makes her different is she takes a Holistic approach with her clients.  “Your home is extremely important to you as it showcases a little of who you are. It is not only an investment but it is also your memories.   A place that symbolizes you and your family.  At Empire we will not lose sight of this, but at the same time assist with how this affects you tax wise.  Will this be a legacy property you intend to pass on to your loved ones or a prudent investment to add to your real estate portfolio?”  

With a wealth of experience and expertise, she specializes in delivering exceptional service and top-tier results for her clients in the luxury real estate market.

Biden’s New Homebuyer Tax Explained and possible Hack.

By Kim Block 04/22/2023

Ok so it’s here. Total insanity….. Biden’s goal of creating more affordable housing is important but his methodology is crazy!  

This change has been  in the works since it was announced in February 2023 and honestly it is already incorporated in today’s rates to finance the purchase of a home.  It is one of the reasons the spread between the 10 year Treasury and the 30 year Fixed Mortgage rate has grown to more than 3%.  (The 10 yr is 3.5% and mortgage rates are running 6.6%.  The spread use to be around 1.65%).  Ouch!  

Let’s break it down so you can have a clear understanding of what this new rule is and how it impacts homebuyers and homeowners and what can be done to lessen this insult.

The Federal Housing Finance Agency Director Sandra Thompson stated the new rules are designed to “increase pricing support for purchase borrowers limited by income or by wealth” and come with a “minimal” fee changes to those who can afford them.  Congratulations you get to fund this.

My feeling is this confusing approach won’t work and more importantly couldn’t come at a worse time for the Real Estate industry working to get back on its feet after these past several months.  

Former Mortgage Bankers Association head David Stevens said “To do this at the onset of the Spring market is almost ‘offensive’ to the market, consumers, and lenders.  The gap in homeownership opportunity is real.  American is facing a severe shortage of affordable homes for sale combined with excessive demand causing an imbalance.  But convoluting pricing and credit is not the way to solve this problem.”  

This new rule will be applied as Loan Level Price Adjustments (LLPA). This is what makes one person’s interest rate different than the next person.  It’s an adjustment based on the amount the buyer contributes as a down payment, credit score, what you are buying (whether it is an attached home (single family home or detached home (townhome, multifamily condos etc) and now debt to income ratio.  

Now it’s not the rate itself but the adjustments to the market rate.  Because of that, l the LLPA grid is now punishing those who put the most skin in the game by down payment amount and those with the best credit scores. 

The biggest pricing hit hurting affects those putting a down payment of 15-20% down with credit scores above 680.  . The biggest gain is for those putting a downpayment of 3% with a credit score of 639.  This punishes those that have worked hard to pay their bills on time and build their credit up. They have saved money to be able to put more of their money into the purchase of their home.  

FHFA, Fannie Mae and Freddie Mac (conventional loans) are requiring these additional adjustments on  ALL  loans they purchase as of May 1.  Keep in mind  lenders can’t disclose, close and insure a loan in a day so these adjustments have been  in place on rates for over 30 days. So while this is new and absurd, it’s not happening this week, it happened already!.  When the FHFA change was first announced VA announced it was cutting its funding fee by .15% saving Denver Veterans an average of $600-$900 at closing.  FHA also announced it was dropping its monthly mortgage insurance by .30% saving Denver homeowners an average of $1800 a year according to Nicole Rueth at The Rueth Team powered by Movement Mortgage.  

I’ve heard people say, fine I’ll just stop paying my bills on time or default on a few and get rewarded next time I want to buy a home or refinance my home.  NO THAT IS NOT THE ANSWER EITHER!

Here is a Hack idea for you. For example:  If you have a credit score of 720 and originally wanted to put 15% down on the purchase of your home. It might benefit you to put 5% down instead.  Keep the remaining 10% of those funds to purchase another investment. Talk to your lender about doing a recast of your mortgage after 45 days of your purchase. Make an additional principal payment after you have made your first mortgage payment, lowering the monthly payment permanently and getting rid of the mortgage insurance immediately or as soon as possible depending on your loan.  

Change happens sometimes in a crazy manner but education is key to staying calm and making informed decisions. Continue to work with Block Team as your Real Estate Advisors.  Even after you have purchased your home, as a CFP, I am here to help you. During your home ownership/buying, selling or investing in tangible real estate in Colorado, lean on The Block Team. White Glove Service is our mission!

With kind regards,

Kim Block, CFP®

Supervising Broker/Block Team

Powered by Work Shop Realty

Kim.block@blockfinancial.com

www.amazingdenverhomes.com

720.295.0330.