Random thoughts, photos and rants woven together make a fine tapestry or so I'd like to think.. a blog. I've been selling real estate in Colorado long enough it is a strong part of me. Sharing knowledge about my trade along with the beauty of Colorado through photos is my way of attracting those who appreciate the same things. I enjoy sharing, hopefully that joy shines through.just because
Just because I feel like posting: a pretty, purple pansey…
Enjoy!
Lies, damned lies and statistics…
Denver Real Estate ~ Take a close look at the sales statistics for real estate sales in the Denver Metro area. At first glance the average sale price has dropped $55,251 from a year ago ($267,259 from $322,510). That is a huge drop that would indicate values have dropped considerably.
But Wait! Let’s look at the Percentage of Sold Properties by Price Range:
Notice the lower prices ranges (single family), everything under $150,000 has seen an increase in volume this year.
Now notice the drop in sales of homes over $500k. We are selling the same number of homes, we are just selling them in the low end of the market.
The decline in value is due to the number of lower end homes we are selling coupled with the decrease in the higher end. A glut of low end sales will skew the average price, pulling it down and giving an inaccurate picture of the market.
Interestingly the middle of the market has not been effected.
First time home buyers, investors are in the market. They are scooping up the low end real estate. Savvy buyers know how to buy (low) and sell (high). People who continue to put their trust and faith in the news media will be saying in a few years, "Gee I coulda bought that for $xxx, but now the market has passed me by and I can’t afford to purchase a home."
Why is my house not selling?
As I go about my daily routine selling Denver real estate, I get asked by home sellers, "why doesn’t my house sell?" That is the $64,000 question.
I wish there was one simple and complete answer, but alas there isn’t. In today’s real estate market we are dealing with factors beyond what I’ve seen in my 24 years in the business. We are seeing sales occur in the first 30 days and others that take 6 months or more.
Typically the reason the home is not selling is either price, condition or location.
What most seller’s don’t take into consideration, they are competing with the market as a whole, not just their neighborhood. True when pricing a home we look to the area for valuation. That is normal and accepted.
What isn’t realized is buyers have many choices. They might like a particular neighborhood or any of the other hundreds of neighborhoods in the Denver metro area. Seldom do buyers (or at least the ones I’ve worked with) hang around waiting for a home to go up in one specific neighborhood.
Most buyers are going to buy based on 1) their budget 2) personal tastes 3) proximity to work and/or schools. These requirements often times have multiple solutions, so your house may work or maybe not.
Condition of the home is a huge factor.
Today most savvy agents and homeowners take the time to prepare the home by hiring a professional stager. We learned a long time ago "the way you live in a home and the way you sell a home are two different things." Hiring a professional to come into the home and either work with your belongs or augment some of their own, works miracles. Simply said.
It has been my personal experience the expense of hiring a stager often comes back in multiples by shortening the listing period and increasing the homes potential. (a great resource for staging is found at Staging rants & ravings)
Another factor that makes a home more difficult to sell is the "dated aspect". A homeowner must consider who the potential buyer will be. In the year 2000 home styles changed. We went from gold fixtures to chrome. Some age demographics will not purchase a home with anything gold in it! Changing out the fixtures is usually a fairly easy fix. However if your home has 1970’s vibrating through it, the makeover my be more than one will want to do. The only way out maybe to price it accordingly and let the buyer bring it up to date.
Homeowners who want to "update" a home, be sure you are up to doing the job, not just right, but complete. There is nothing sadder than having a seller update part of their home. Buyers will come look and the only thing they will see is the undone updating. Yes, buyers are cut from the same "the glass is half empty" mold.
Location is so important.
Buyers shop for the best of everything. If your home has a location with a glitch, say an apartment building next door, or a messy neighbor, barking dog, busy street, backs to a freeway, a blinking sign glaring through the bedroom window or railroad tracks in the back yard, you may have a problem.
Location issues can be overcome. Sometimes the best thing to do with a bad location is tackle it head on. Some buyers actually LIKE homes on a busy street, because they crave the "pulse of the city" nearby. Others might be looking for a home next door to the soup kitchen, because they are into volunteering. Creativity is part of sales. Get creative with a solution.
Pricing is the most important factor.
When all else falls reduce the price. Statistics have shown a property that has 10 showings and not offers is over-priced. Homeowners who insist on a price that home buyers aren’t grabbing need a reality check, or to remove their home from the market.
Overpriced homes that get shown and are getting good feedback maybe being used as an example. Buyers are comparing values and if one home isn’t selling and the other one is, perhaps being the bridesmaid again and again means it’s time to adjust for the market.
When it comes to real estate there is a mathematical equation that works time and time again.
Price=Sale.
Find the right price and find the sale.
Light Rail services Universities in Denver metro
College students and parents are always pleased to learn Denver has a great public transportation system. RTD
Light Rail has stations at the University of Denver, Arapahoe Community College and the Auraria Campus in downtown Denver.
Typically universities and colleges whether they be live-in campuses or commuter have issues with parking. Finding a space and getting to class on time can be an very big challenge. Coupled with the fact just having a car on campus is yet another expense, it makes good sense to utilize the RTD Light Rail.
Students find they can easily commute to a station near their home, hop on the train and in a few minutes be at school. The trip allows time to relax, listen to some tunes or catch up on studying.
Parents also appreciate the fact their children won’t be trapped without transportation when they are living near campus without a car. Having the option to ride the light rail to travel to other locations is a convenience not offered in smaller cities.
Light Rail expands housing options
The Light Rail currently has three lines completed, the original line to LIttleton-Mineral Station runs down Santa Fe Drive, Southeast line that flanks I-25 ending in Lone Tree and the spur that follows 225 to the Nine Mile Station. Student housing options are increased since they can use the rail line to live either in the city or the suburbs.
RTD offers a Bike-n-Ride program so students can combine their personal bike with a transit ride to shorten the commute. Bikes are allowed on both Light Rail and buses. Of course there is always the "space available"problem. If there is an event going on, there might be a problem loading a bike onto an already full train. Typically this is not an issue.
RTD park-n-rides also offer bike lockers for storage of the bike. The lockers are available on a first come, first-served basis. One does need to rent a $20 RTD special padlock. Designated leases are available.
Students with a college I.D. from participating colleges may purchase a College Pass to ride the RTD Light Rail.
Saddle Rock Golf Course
In 1998 Saddle Rock Golf Course was recognized as one of the America’s Top 10 Best New Courses by Golf
Digest. Ten years later this top notch Aurora public course continues to live up to it’s reputation. Saddle Rock Golf Course is a long, high-plains, links-style course and challenging. Even the best players find a challenge in negotiating native areas, creeks, trees and rolling diversity. The course is high and the panoramic views of the front range are among the best in metro Denver.
Saddle Rock Golf Course is a public course so the fees are quite reasonable. Players can enjoy either 9 or 18 holes of play. A cart is recommended (by me) this is a long and tough course to walk.
Residents are eligible to receive a special reservation card allowing them to book tee times seven days in advance. As with most community golf courses, residents also get discounted play.
Saddle Rock Golf Course is conveniently located at 21324 E. Briarwood Drive, Aurora, CO. 80016. To get there from I-25, take Arapahoe Road east, look for the entrance to the golf course on the left after crossing Liverpool.
Saddle Rock Real Estate
Homeowners desiring a nice place to call home, will be happy to know Saddle Rock is a planned community offering open space of parks, green belts and recreation trails. There are neighborhood "pocket parks" for the little ones to enjoy, or a great destination for walking the dog.
The Saddle Rock area offers a variety of housing options for those who desire to be in a golf community. Custom and semi-custom homes can be purchased along or near the golf course. The Community is fairly new, so resale homes built in the year 1998 and newer are also available. Custom homes start in the high $600k’s and semi custom can be found in the $500k’s.
It is also possible to find less expensive homes within a few blocks of the golf course. Multi-family (condos) are also available in the area.
Getting To Saddle Rock Golf Course or Community
The Saddle Rock neighborhood is conveniently located off the E-470 beltway. The population growth in the area has been expanding ever since E-470 opened, bringing the southeast neighborhoods closer to the city. The beltway provides quick and easy access to the Denver Tech Center (20 minutes), Meridian (12 minutes), Denver International Airport/DIA (20 minutes) or downtown Denver (30-40 minutes).
Saddle Rock Shopping
Outstanding shopping is available in the nearby fabulous Southlands. Patterned in old time Main Street style, Southlands offers more than 150 retailers, restaurants and second floor office suites. Southlands is home to major retailers; An Taylor Loft, Banana Republic, Coldwater Creek, J. Jill and many more.
Schools in Saddle Rock
The Saddle Rock neighborhood is serviced by two high schools both in the nationally acclaimed Cherry Creek School District; Grandview High School and the recently built Cherokee Trail High School.
CyberPros
I’ve just returned from Pittsburgh, Pennsylvania where I spent 2 solid days with associates from around the
country. The Cyber Professional group meets twice a year to discuss real estate issues and network among industry professionals.
My experience with this group tends to enhance my business perspective. When I return home, I have a briefcase full of new ideas that will help my buyers and sellers.
Communicating with brokers from other parts of the country only substantiates how much better off we are in this Denver real estate market. Yes, I know we have some very difficult spots, but in comparison to other areas, we have very little to complain about.
Home Inspection
Saturday evening, most people are relaxing after a satisfying work week. Some may even be popping the corks off wine bottles celebrating a moment or just enjoying life.
Tonight I was at a celebration of a different kind, a home inspection. This week I worked with a buyer who is relocating here from the Washington D.C. area. It was her second time out and the first time to seriously look at homes.
We spent two days touring all the homes that fit her specific criteria in the Highlands Ranch area. On Thursday night we wrote the offer which was accepted late Friday. With one full day left before she went home, we scheduled a home inspection!
Much to my surprise, John Braddock the inspector who I can always count on agreed to do it Saturday night, the first time he had available! We were delighted at the prospect of my buyer being able to return home with her mission accomplished! So we accepted the appointment.
My hat goes off to the family with young children who agreed to leave us in their home for 3 hours on a Saturday night! They were most gracious and accommodating, in fact they left us fresh, home-made chocolate chip cookies! Yum!
The inspection went quickly as John called in his partner, Ryan. At the end we celebrated by clinking our water bottles in a toast to us and all the people that pull together to make a real estate transaction happen.
Thank you to the buyers, sellers, inspectors, listing agent, relo manager (who accepted the offer at home after hours), assistants and the future helpers; appraiser, title reps, closer and the neighbors who will welcome the new comers to Colorado!
Oh I forgot the mention Frances Wehner, the loan officer who took time out of her Saturday to travel to Park Meadows Mall to meet with the buyer as a convenience as to not interrupt her shopping!
Tomorrow my buyer goes home satisfied. She visited all the schools, registered the pre-schooler, shopped in her future grocery store, got a pedicure, went to the mall and purchased a home! All in 5 days.
Now that is what I call a productive week!
Welcome to Denver!
Colorado Foreclosures Maybe Heading for Time Out Room!
Two lawmakers in Colorado are introducing a bill to enable judges to extend a foreclosure for up to 90 days. The extra time could be used to work out a settlement as opposed to the homeowner losing their home to foreclosure.
The problem with mortgage workouts is time. So much of what needs to be done takes an extraordinary amount of time. The workload of the persons dealing with homeowners is overwhelming I am told. In fact much of the time the bank is trying to determine who actually owns the loan and who has the say in what can be worked out or not.
Homeowners facing financial issues should not delay in contacting the mortgage holder. The longer you wait, the less likely you will be able to work out a solution.
Many homeowners do not realize as soon as the bank files a Notice of Election and Demand for Sale, the clock starts ticking. The homeowner must redeem the property by making up the back payments or coming to an agreeable settlement with the mortgage holder. All this takes time.
The Clock Keeps Ticking…
Homeowners do have alternatives to foreclosure. Forbearance agreements can be arranged so the homeowner can pay the delinquent payments on the "back end" of the loan. Some mortgage companies will restructure the loan so the homeowner can stay in the home.
Colorado provides a Foreclosure Hotline to the public seeking to AVOID foreclosure. 1-877-601-HOPE Trained counselors help those in trouble find alternatives in repayment plans, modifications to the mortgage agreement or selling the home prior to the foreclosure.
Home Improvements
Home improvements are often very costly, both in money and the time it takes to undergo a renovation. I’ve had
clients who actually moved out of their homes while the home was being redone, thus absorbing a double cost of living, in addition to the cost of renovation.
When you are spending money like that you want to be sure you 1) really love what you are doing to the home 2) understand what the ROI will be when you go to resell 3) the renovations will appear to others, not just you and your family! Many times the cost of renovations far exceed the return on investment upon sale. When that occurs the homeowner must understand the renovations are for his pleasure only.
Recently I was showing a daring home an investor had purchased as a "fix and flip". As I toured the home with my clients, we were excited about it possibly being The Home! Then we got to the main bathroom. This is where our excitement ended.
The bathroom was very narrow. It was an old house where the main floor bath was the bathroom that serviced the house, including 3 bedrooms and the visiting guests. In the bathroom there was a toilet, sink and a bathtub, all very normal appointed, but the issue was the space.
The toilet was squished very close to the tub. A person of normal height could not easily use the toilet without their legs being pressed up against the tub.
Why on earth would any builder in their right mind complete a renovation with this very obvious negative arrangement? Perhaps the builder himself was 4′9"! A person of this height might be able to use this toilet in comfort.
Functional Obsolescence occurs in real estate frequently because styles change, tastes change and in the case of the squished toilet, people get bigger!
When renovating a home, take into account today’s taste in style and what is appealing to the broadest audience. They are your future buyers, ignoring them may cost you.
There are other faux pas home renovation homeowners make when trying to improve their homes. Most recently I’ve been seeing many beautifully finished basements with game rooms, extra bedrooms serviced by a 1/2 bath. Yikes! The rule to follow here, if you have a bedroom the bathroom needed to make a completely sweet finish must be at the very least a3/4 bath. The best scenario would be to have a full bath, that means a toilet, sink and tub/shower.
My clients have passed up at least 4 lovely homes that didn’t follow this rule!
Yes, full bathrooms cost more, but if you are going to renovate, do it right or don’t do it at all!
Another important rule to remember in real estate is one we Realtors learn early on.
Cost does not equal value.
Just because a renovation cost "$X" doesn’t mean your home will increase by "$X!" In the cases above, I would venture to guess the renovations SPOILED the home, not improved it!
Before you renovation, do your research. Talk to your Realtor about the lastest trends and styles. Pretend the renovations are finished and you have to sell your home. Will the neighborhood uphold the current value you have in the house? If not, are you OK with that?
Over-improving for the neighborhood is a fatal sin that cannot be forgiven. Well it will be forgiven if you throw enough CASH at it! Only the homeowner can determine if that is OK, it’s his cash after all!
Remodeling Magazine publishes the latest Cost vs. Value Reports each year. The values vary in different parts of the country, so they compile the trend reports accordingly. Research into the appropriate renovation will provide valuable insight as to whether the whole idea is a good one or not.
If after you examine the facts and the renovations are for pure personal enjoyment because you plan to live in the home for a long time, then go ahead renovate. A home is a castle, if we can’t enjoy living there what’s the point. Just remember when you go to sell, your enjoyment may have come with a bigger price tag than expected.
Denver Real Estate Market Trends
While much is being said about Denver real estate trends, the statistics are not looking all that bad. As of March 2008:
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While the combined average price in the Denver Metro area is $21,000 less than a year ago, the drop in values began to level off from February to March this year with a loss of only $1300.
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The total available inventory for sale decreased 3.46% from the same time last year. With builder inventory at the lowest in recent history, sellers can expect values to begin increasing soon.
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The Absorption Rate dropped considerably from February, down 6.4 weeks, with the average days on market receding to 111 days from last March’s 119 days.
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The Median Sold Price increased to $224, 900 in March. The February median was $221,500.
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The total number of all homes and condos contracted for sale was 5,874 just 246 less than March 2007 total of 6,122. Sales are still strong.
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The national average 30 year fixed mortgage interest rate as reported by Freddie Mac was 5.88% on April 10. The 30 year rate has held steady under 6% for the last 30 days.
This site brought to you by Kristal Kraft, a licensed Colorado Real Estate Broker