Nuts! Was it the second from MY left or Your left?

Lawrence Yun: Consumers need to find out what is going on at the local level and not necessarily take national headline numbers as a point of reference. Sellers tend to be more stubborn in facing the reality of the market, so people who really need to sell need to come down on prices, given the high inventory and seller competition.

Denver real estate consumers need to ignore the National News and look to the statistics in the individual areas they are living or buying in.  The real estate market is local.

Our prices never experienced the insane appreciation that happened in other markets. While others were shooting for the moon, we traipsed along at a slow and even pace.  Now when other locals are experiencing a sharp decline (read price adjustment) we are not seeing the same in the market.

What we are seeing is a lack of consumer confidence (thank you media) and the inability of people relocating from other areas to be able to purchase a home here, until their home’s sell.

This doesn’t mean All of our Denver real estate is priced well.  Much of it is NOT priced to sell, nor is it in show home condition.

What I continue to see are homes that are priced to sell and in great shape, selling.  In fact 20% of our sales sell in the first 30 days.

The sky is not falling.

At least not today. 

Enjoy!

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."

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. 

RTD

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 Lone Tree-Mineral Station runs down Santa Fe Drive, Southeast line that flanks I-25 ending in Denver 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 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.

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.

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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 Denver 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 Highlands Ranch!

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.