Property taxes on Denver real estate seem to be a source of confusion for most homeowners and buyers.   Denver homes are individually assessed by the appropriate County Assessor.   This process ensures tax burdens are equally shared by all property owners. The County Assessor’s job is to establish accurate values for each individual property located within their respective county.   Revenues from property taxes are distributed to services provided by roads, schools, police, fire protection services, cities and towns, and other local entities.
 

What is Actual Value?

Real estate in Colorado is assessed every odd numbered year. On your tax statement you will see an item marked Actual Value.  The value of a property is based on market value and uses comparable sales for homes sold 2 years prior.  So for example, in the tax year 2011, the value would be based on homes sold in 2009.  Many buyers and sellers try to use the Actual Value of their homes as a measure for sale price.  This would not be an accurate assessment of current market value nor should it be an indication of your homes potential sold price.

This has had much significance over the past several years.  During the earlier part of the housing crisis, decreasing sales prices pushed property values down but tax assessments were still based on comparable sales from the two years prior.

 Assessed Value

Residential property is assessed differently than other types of property.  The assessment rate for property that is classified as residential is 7.96% or market value.  Assessed value is obtained by multiplying the Actual Value by the assessment rate which in this case would be 7.96%.

 Understanding Tax Rates

 
Counties and cities, school boards and special districts are all taxing entities.  These entities make determinations regarding the amount of revenue required for services and takes into consideration what the law allows.  Tax rates are calculated by looking at revenue from property taxes and total assessed values for properties located within the boundaries of a given entity.

 Total Tax Rates are determined by adding tax rates of each entity serving your specific area.  As responsible and informed tax payers, public budget hearings are scheduled and posted in the local newspaper.  Taxpayers are welcome and encouraged to attend these hearings.

 How Are Property Taxes Calculated

By multiplying the Actual Value by the Residential Assessment Rate currently set at 7.96% or .0796, you can obtain Assessed Value.  Assessed Value is then multiplied by the Tax Rate in your area in order to determine the amount of tax due on your property. 

Actual Value    x    Residential Assessment Rate    =    Assessed Value
Assessed Value    x    Tax Rate    =    Taxes Due

Denver Mortgage Options

Obtaining a mortgage in Denver is easy.  Whether you plan on occupying, renting, flipping, or refinancing your Denver home, there are a number of lenders available for buyers considering a Colorado relocation or local move.  Finding the right lender should be your primary focus.  Each lender will have a set of loan products and terms to offer.  Whether you are choosing to work with a Denver mortgage company, credit union, commercial bank, or hard money lender, make sure you ask the right questions. 

For borrowers, particularly those with less than perfect credit, speaking with a lender can seem a little intimidating.  Regardless of your financial situation, seek out a dependable, reliable lender who will provide you with the best product and terms to fit your financial situation.  You will need time to research lenders and ask questions.  Do not wait until after you find your perfect dream home to start talking to a lender.  Being proactive can be in your best interest and help prepare you to negotiate your own best deal. 

Below is a list of lender types along with a basic description of their roles in the lending world.  In most cases the same lender can fit into one or many of these lender types simultaneously. 

Direct Lenders

This is a lender that once again, originates their own loans, whether through third party funding or through its own money.  A direct lender can be a portfolio lender or a mortgage banker and lend directly to the consumer without the use of a third party agent or broker.

Mortgage Broker

 A mortgage broker is a middle man of sorts.  They do not make loans but rather work with several lenders in order to present the best products and the best terms to borrowers.  Brokers are agents of wholesale lenders.  A wholesale lender may also work as a retail lender and offer similar products directly to the consumer.  Brokers are paid through one or a combination of fees associated with your loan, add-ons to interest rates, and points. 

Wholesale Lender

A wholesale lender is a bank or other financial institution that provides loans through a third party like a mortgage broker or credit union.  It is less expensive for a mortgage banker to make a loan through a third party.  In some cases, a loan through a third party company may be a better deal than what you might be able to get directly through the retail division of the same bank.

Retail Lenders

A retail lender is a bank who deals directly with consumers.  Whether you are buying, refinancing, or taking out an equity line of credit (HELOC), they make the loans and provide the money directly to the borrower.  Big box institutions like Wells Fargo, Chase, or Bank of America, to name a few, have both a wholesale and retail division. 

Warehouse Lenders

Warehouse lenders finance the origination of loans by mortgage lenders through short term lines of credit.  The loans themselves are used as collateral to obtain the short term financing.  The mortgage lender then sells the loan on the secondary market and pays the short term line of credit back to the warehouse lender once these loans are sold.  This allows a smaller lender or bank to stay liquid while making new loans.  Warehouse lenders are paid when the loans are sold and may sometimes also receive a cut on the sale of each loan.

Mortgage Bankers

Mortgage bankers borrow money from warehouse lenders in order to originate loans.  The bank is not using their own money to originate these loans so they can close more new loans while selling closed loans to investors.  The loans are often sold through Fannie Mae and Freddie Mac.  Once they sell the loans they originate, they pay the borrowed short term money back to the warehouse lender. 

Portfolio Lenders

These lenders do use their own money to fund the origination of loans.  Because of this, portfolio lenders can set their own terms and are not restricted by investor demands.  This gives them tremendous flexibility, making them a preferred lender for niche borrowers, those borrowers that don’t fit the typical lender requirements.  Borrowers with less than perfect credit but strong financials are a good fit for a portfolio lender. Since portfolio lenders are often looking at borrowers who may otherwise be considered a higher credit risk, you can expect to pay a higher rate of interest for their services.  However, a solid borrower could fall into the niche category by a number of influencing factors.  For borrowers that have good credit and strong finances, a low interest rate is still possible with a portfolio lender.

Hard Money Lenders

A hard money lender is usually a private individual that funds loans with their own money.  Hard money lenders typically offer short term loans with high interest rates that require larger down payments, sometimes in excess of 25% or more.  These loans are designed to be paid back quickly and can be an excellent option for investors given the right market conditions. 

Correspondent lenders

Correspondent lenders work directly with investors or sponsors like Fannie Mae or Freddie Mac.  The investor will purchase mortgages made by the correspondent lender providing it meets certain criteria.  If a loan does not meet such criteria, the lender must keep the loan or find another investor.  In some cases, the correspondent lender may keep the loan for a small period of time until it becomes attractive enough to a potential sponsor.  Correspondent lenders are paid through points issued with each loan.

Hard to believe that it was just two and half years ago that residents of Highlands Ranch homes were petitioning against construction of the retail giant, Super Target at the Town Center North Shopping Center.  The land on the south side of Lucent had already been established as retail space, making the north side an obvious addition.  A few years earlier, construction of Home Depot got the same reception from residents of South Denver homes.  Personally, I am thrilled to have both of these so close to home. 

Now Town Center is a thriving retail center.  Restaurants, flower shops, and a number of great stores, including Tattered Cover, Vitamin Cottage, Super Target, and Petco draw in the locals.  On November 20^th, 2010 S.A. Elite Sports Authority joined the north side of the shopping center.  S.A. Elite is a division of Sports Authority geared towards premium brand performance wear for the elite sports enthusiast.  Sports Authority, a Colorado based company, launched their first Elite store in the Cherry Creek Shopping Center. 

No small venture, the 13,500 square foot store in Highlands Ranch offers high performance apparel for the fashion conscious athlete.  Name brands on seasonal wear include some of my personal favorites like Spyder, Merrell, and Under Armour just to name a few.  For my husband, an dedicated runner and triathlete, this is a solid addition to our already great community. 

Click here to see Highlands Ranch homes and Highlands Ranch Condos for sale.

The Highlands Ranch new homes community, BackCountry, now has a new semi custom homes builder.  Joining SheaHomes and Richmond American Homes in this master planned community is an award-winning semi custom home builder, Paragon Homes.  Paragon is a highly acclaimed builder along the Front Range known for their attention to detail, quality styling, and value.  The home in Paragon’s collection selected for BackCountry will embody the unique look and feel of the community.    

BackCountry also features the Front Range’s most prominent custom builders.  Some of these include Advanced Building Concepts, Malibu Homes, Ades, Design Builders, Wall Custom Homes and Terracina Custom Homes.  The best of the best home sites have been reserved for these luxury custom homes.  According to BackCountry’s most current newsletter, as of November 9^th, 2010, 5 out of 6 lots released on Houndstooth Court were quickly reserved.  These homes feature half-acre plus walkout sites backing directly to the 467 acres of private open space. 

If you have not visited BackCountry, it is definitely worth a look.  Although the homes seem to sit a little close together for my personal liking, it is still a beautiful community with some amazing amenities.  What you see as you pass the community from Wildcat Reserve really does not do it justice.  With more than 8,000 acres of open space, approximately 467 of which are exclusive to the residents of BackCountry, it is really like nothing else available in the area.

Discerning buyers in the market for luxury homes should definitely take a look at BackCountry.  A resort like community awaits you in this truly unique community in Highlands Ranch.  For more information or a personal tour of the community and available homes, please contact us at 720-375-2962.

Just one of a few meticulously maintained Denver homes with recently painted exterior and interior. Period molding and details add authenticity to older Denver real estate. Original fireplace and wood floors, large molding, original built-ins, tall ceilings, remodeled kitchen, updated and in perfect move-in condition. Beautiful blend of new and old updates and features. Professionally decorated by interior designer and it shows!

Anyone new to the Denver real estate market looking for hot Denver neighborhoods will want to check out Bonnie Brae. This community offers a quaint, small town feel only minutes from downtown. Stately and historic, or new and old homes beautifully coexist in this popular neighborhood. Bonnie Brae real estatecan include the cozy Cape Cod or a more traditional Tudor style design. Small brick ranches, like the one below, can sit across from a larger new construction home. Somehow it all seems to work together. Read more about the Bonnie Brae neighborhood here.

Home prices in Bonnie Brae can range anywhere from about $229,000 for a 717 square foot ranch to $2,300,000 for 2 plus story home with over 6,000 square feet.

Click here to see some Bonnie Brae homes for sale.
Click here to see some Bonnie Brae condos for sale.

For more information about Bonnie Brae real estate or other Denver homes please contact us here.

Stapleton Denver is a master planned Colorado real estate neighborhood offering easy accessibility to shopping, multiple dining options, parks, and 36 miles of walking and biking trails. This unique Denver new homes communityhas an urban flavor with a suburban feel. Located within minutes of downtown Denver and offering close proximity to shops, office buildings, restaurants and schools, it is the perfect location for busy families and singles wanting the best of both worlds!

Built on the site of the old Stapleton Airport, it was the vision of mindful developers to build a sustainable “green” community. Once the concept of the Denver International Airport was created, all eyes were on the older Stapleton Airport.

Several “green” new home builders were chosen to build in Stapleton. Among those McStain became an obvious choice. LEED (Leadership in Energy and Environmental Design) certified pilot homes offer lower energy and water bills, less exposure to harmful toxins, and reduced greenhouse gas emissions. LEED certification recognizes and rewards builders for meeting the highest performance standards. Consciencious Denver homes buyers can have the confidence and peace of mind that comes with owning a green home that is also environmentally friendly.

As you can see from the video below, McStain offers attention to details, inside and outside the home. They start by incorporating the surrounding environment into the homes design. The natural landscape is the inspiration behind their focus on the details, colors, and architecture.

There are a number of Centennial CO homes for sale ranging from modest ranch style homes to new more luxurious homes. Centennial CO is the newest Denver homes community incorporated on September 12, 2000. Located in Arapahoe County, homes in Centennial CO feed into the Littleton Public Schools and Cherry Creek School Districts. Click here to learn more about Centennial CO and Centennial homes.

Homes for sale in Centennial can range in price from just under $100,000 for more modest options to well over $10,000,000 for super luxury homes. Check out our list of Centennial Subdivisions and other Denver Neighborhoods.

Check here for a list of Centennial homes for sale in the Centennial CO community.