Seven Real Estate Trends in 2011

What's a New Year without some sort of "top 10" (or in this case, seven) list? This week Inman News posted a list of real estate trends in 2011 that was very interesting. Here's a more condensed version:

1. Have we finally hit bottom? Prices are stabilizing across the country. Though the actual amount of sales is down from peak years this is a step in the right direction.

2. Boomers move to the forefront. With 2010's popular first-time homebuyer tax credit, the median age of buyers dropped. But in 2011, baby boomer purchases far surpassed that of the Gen Y buyers. 

3. FSBO successes continue to decline. A decade ago 24% of all home sales were for sale by owner. Now that number is 10%, and of those FSBO sellers 40% knew the homebuyer. 

4. More buyers are using agents. 89% of homebuyers in 2011 used a realtor (compared to 69% in 2001). Since realtors make the process easier by sifting through the inventory for time-pressed clients, help their buyers navigate through the sales process and legal documents, and help their buyers get a loan, it makes sense that people wouldn't want to undertake such an important life event unassisted. 

5. More cash buyers. Though most buyers had to undergo the process of getting a loan, 13% of 2011 homebuyers paid all cash.

6. More married couples. After a drop in married homebuyers last decade, 2011 saw 64% of homebuyers married (the largest share since 2001).

7. Life changes drive real estate sales. Repeat homebuyers cite the desire for a larger home, a job transfer, or relocating to be closer to family and friends as the primary reason to purchase a home. 

Tips for Successful Winter Showings

With spring still a few months away, sellers could benefit from making sure their home is in top showing shape this winter. Here are a few tips for the colder, darker days of the year:

1. Keep it comfortable. Aside from some nice warmer days, most buyers this time of year wear heavier clothing yet won't usually take off their coat when going from home to home. Keep the heat in mid-60s so they don't feel roasted out of your home. The goal is to get them to stay longer in your home and feel comfortable there.

2. Make it bright. With less hours of sunlight now and overall more cloudy days, make sure all the lights in your home are on. Don't overlook burned out bulbs and keep blinds open during the day. No one's first impression should be dark and dreary. 

3. Air it out. Since homes are closed up throughout the winter there's less fresh air circulating. Avoid any unpleasant odors from pets, cooking, trash, etc. by airing out your home periodically. Don't rely on fragrances as those won't get rid of the odors. 

4. Clear the area. Keep the sidewalk, driveway, and walkway snow and ice free as best you can. The easier your home is to access, the better. 

5. Avoid winter clutter. Boots, coats, hats, and gloves all take up a lot of space. Potential buyers will be opening closet doors so avoid stuffing closets to the brim by storing non-winter clothing in under-bed storage bins or somewhere else out of sight. A packed closet looks small no matter how big it really is. Also, keep holiday decorations at bay; they shouldn't hinder people easily moving about your home. 

6. Be flexible with showings. Often, the weekends are the easiest time for buyers to go on showings. You'll ideally want your home shown when it is still light out so be flexible as to when your potential buyer can view your home.

Your Home Won't Sell if It's Not on the Market!

Now that December is officially upon us, I hear of more people taking their home off the market based on the sole misconception that home buyers stop looking during the holiday season. If this were true, then I'd have a lot more free time on my hands! Last year on Christmas Eve, I was showing properties in the morning before spending time with my family. Why? Most people don't have to work at this time, making their schedules available to view homes. For some families, it may be the only time where both spouses can really focus on their personal life and not work since many people use their vacation days in December and early January. I’m scheduled to close 5 deals this December which indicates that yes, people actually do buy and sell this time of the year.

Sure, the holidays are a busy time for people in general. But so is the summer…graduations, weddings, vacations, BBQs, sporting events, back-to-school activities, and more…yet people still carve out time to find a place to live! 

With less homes to view and motivated buyers, you may find you have more showings than you would if you listed your home after the first of the year. Unfortunately some sellers think they'll get "kicked out" of their home in the middle of their holiday celebrations, without factoring in that closing and possession dates are all negotiable. While some buyers would love to be in their new home for the holidays, others just want to finalize their future before year end and will move come January. I've done several deals where both parties agree to a closing date, then the now-previous owner rents the home back from the new owner for a short time. 

Plus, there is nothing like a home decorated for the holidays to help a buyer envision their own family celebrations there!

Time to Get Back into Real Estate

I know many of us have been saying this for some time now, but when the news media starts saying it – well, I guess that makes people stand up and take notice. A number of recent articles in the national press are now saying that it might be the right time for consumers, who have largely been on the sidelines, to jump back into the housing market.

I understand why potential buyers, whether first-timers or move-up buyers, remain cautious given all the economic headwinds and bad news out there. Economic growth has been slow, the jobless rate too high, and don’t even get me started about the politics in Washington, the euro-zone debt problems and the challenges facing Greece.

But I often urge buyers to examine what I like to call your “personal economy.” That is, if you have a steady job, reasonable credit, and enough savings for a solid down payment, you might want to take a deep breath and think about taking the leap into the housing market while prices and interest rates are so low.

Read what two of the nation’s top business publications, Fortune magazine and The Wall Street Journal, are telling their readers:

“Forget stocks. Don't bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.”

- “Real estate: It’s time to buy again,” Fortune Magazine article by Shawn Tully.

“Two key measures now suggest it's an excellent time to buy a house, either to live in for the long term or for investment income.”

- “It’s Time to Buy that House,” The Wall Street Journal article by Jack Hough.

Tully in the Fortune piece interviewed Mike Castleman, founder and CEO of Metrostudy, who has spent more than 30 years tracking data on the inventory of new homes in the United States. Each quarter, inspectors go through 45,000 subdivisions from California to Maryland. According to Fortune, inspectors examine 5 million lots and record whether they contain a house under construction or completed.

What has Castleman observed? The glut of new homes that the U.S. had a few years ago at the peak of the market has rapidly disappeared. Instead, he told Tully that he has seen a rapidly declining inventory that could force prices higher. In the 41 cities Metrostudy looked at, there are just 78,000 houses vacant and for sale, or under construction – less than a quarter of the 343,000 units at the height of the market in 2006 and less than the total a decade ago.

"The talking heads who are down on real estate will hate to hear this, but America needs to build a lot more houses,” Fortune quoted Castleman as saying. “And in most markets the price of new homes is fixin' to rise, not fall."

Metrostudy collects figures on the number of homes that are vacant and for sale in each city, and the number of months it takes to sell all them to determine whether individual markets have a surplus or a shortage of homes. "If we had anything like normal levels of buying, those houses would sell in 2½ months," Castleman told Fortune. "We'd see an incredible shortage. And that's where we're heading."

Fortune says that consumers may be confused by conflicting news reports on the housing market, and that could be impacting their confidence in buying a home. On one hand, housing affordability has never been better. But on the other hand, they continue to see housing starts falling and home prices still heading down in some markets.

Tully said economists Robert Shiller and Karl Case, authors of the S&P/Case-Shiller Home Price indices, have different views about where we are in the cycle. While Shiller remains pessimistic, Case is more optimistic that things are starting to turn around, telling Fortune that "the lack of new home building is a huge help that a lot of people are ignoring.”

In its analysis of the housing market, Fortune noted that it’s important to look at the economic fundamentals of home ownership to see where the market is headed. As home prices rose sharply over the past decade, Tully said the magazine warned that a bubble was forming due to the level of new construction and the cost of owning a home compared to renting one.

“Eventually reality set in, and prices plummeted,” Tully said. “Our current view focuses on those same fundamentals — only now they're pointing in the opposite direction,” Fortune noted. “So let's state it simply and forcibly: Housing is back.”

The Fortune article said what will drive the recovery of the housing market is a sharp drop in new home construction, as noted in the Metrostudy research, as well as a big drop in home prices. Home prices have fallen about 30% nationwide since 2006, Fortune said, and more than 50 percent in hardest hit markets. With unusually high affordability levels, the article noted, Americans will start returning to the market.

While no one can predict with certainty the future of home prices and sales volume, it is safe to say that a turnaround will eventually happen. Timing the market is very difficult because you will never know the absolute bottom until prices have started going back up again. My advice is to look closely at your own “personal economy” and talk with a professional Realtor to see if now might be a good time for you to take advantage of low prices and rates, and join others in taking the plunge into buying a home.

Monthly Mortgage Payments and College Tuition

Every so often, I read an article or blog that really gets me thinking. The chief economist at the National Association of Realtors, Lawrence Yun, recently posted about how a home buyer’s average mortgage payment today is not much different than it was 30 years ago. Though 1981 saw mortgage rates of 18 percent, home prices were much lower than they are now; and now that interest rates are so low, it is almost even.
Yun says, “Compare the chart below on the 30 year payment growth of the overall consumer price index, rent, food prices, gasoline prices, college tuition, and medical costs, versus the monthly mortgage payment. The rapid increases in college tuition bills may also imply too much demand, perhaps even a bubble in term of students not getting their money’s worth.  A recent spike in college student loans is due primarily to weak job market conditions, but may also be due to ‘over investment’ in education in relation to the cost.”

The slow growth in monthly mortgage rates and how cheap homes are on a per month basis makes a real value proposition for homebuying! Now is the time to buy an investment property, call me today at (303) 442-5001 to discuss your options.

Reasons to List During the Holidays

I often speak with homeowners who tell me they’re going to wait until spring to list their home. Anyone who has learned the law of supply and demand knows that increased competition drives down prices on any product, homes included. Here are 11 important reasons why now is the time to sell!

1. People who look for a home during the holidays are more serious buyers!
2. Serious buyers have fewer houses to choose from during the holidays. Less competition means more money for you!
3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular home. Less demand means less money for you!
4. Houses show better when decorated for the holidays!
5. Buyers are more emotional during the holidays, so they are more likely to pay your price!
6. Buyers have more time to look for a home during the holidays than they do during a working week!
7. Some people must buy before the end of the year for tax reasons!
8. January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until spring to buy, your home must be for sale now to capture that market!
9. You can still be on the market, but you have the option to restrict showings during the six or seven days during the holidays!
10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year!
11. By selling now, you may have an opportunity to be a non-contingent buyer during the spring, when many more houses are on the market for less money! This will allow you to sell high and buy low!

Economists Revamp Forecasts for the Better

In light of more positive news on the economy and housing market in recent weeks, economists seem to be updating their forecasts to be rosier. I’d think this fact alone would help boost consumer confidence, but the numbers are speaking for themselves.

Last week the Bureau of Economic Analysis released data indicating GDP rose 2.5% in the third quarter, due largely to consumer spending.  And, the Mortgage Bankers Association reported a 4.9% rise in mortgage applications last week, as both home purchases and refinances increased. Investors helped fuel the rise in activity, a positive sign for the housing market that that group is ready to buy again.

The National Association of Realtors is projecting a 1% rise in sales of resale homes this year and another 4.3% increase in 2012, with the existing-home median price rising – yes, rising – 2.6 percent in 2012.

Other economic indicators are relieving recession fears, and fortunately the “double dip” is looking more like a once-popular news sound bite rather than reality. Of course time will tell how this economy plays out, but when the media start sounding upbeat, that’s a win-win! 

A Deal That’s Move-in Ready

It’s not every day where you come across a home just listed for sale that advertises remodeled, and actually was just remodeled that same month, without anyone else living there to ding up the walls or scratch the floor. 600 Portside Court, Lafayette, Colorado is that remodeled home you’ve been waiting for, ready to move right in to. With new paint, new carpet, new tile floors, refinished hardwood, new appliances and kitchen countertops, master bath upgrades, plus an immaculate cleaning job from top to bottom, what more could you ask for? Well, maybe a full daylight basement too. Add to this great views and the great location – walk to Waneka Lake plus quick access to all that Lafayette and Louisville have to offer – set on a beautiful treed lot.  And with new construction down the street going for $700,000, this one  at $400,000 is better than new!

Unique Live/Work Opportunity

It's not often that a true live/work opportunity comes along, especially a historical home in a great location - Old Town Longmont. Most live/work situations present a variety of options, but 415 Coffman Street, Longmont, Colorado is truly unique. With more than 5,100 square feet, there is a luxurious owner's unit with an updated kitchen boasting plentiful cabinet space and stainless steel appliances, a high-end master bath, beautiful crown moulding, a full basement, and secluded, professionally designed courtyard. The rest of the property consists of mostly professional office tenants, plus the garage has been converted to a studio apartment. Projected tenant income is over $4,000 monthly! There's also parking and a rear ADA entrance. Best of all, this property is in an excellent area - live and work in Longmont's vibrant Central Business District, just 1 block from Main Street!

Looking to Increase Your Monthly Income?

As a landlord I've witnessed first-hand the pros and cons of owning investment properties. But with home prices and interest rates where they're at now, adding a rental property to your portfolio may be an excellent idea. New studies of rising rents are being released every day, and The Daily Camera has even reported on Boulder's lack of available rentals with a 10-year low in vacancies for the Boulder/Denver area. According to Hotpads.com, a real estate research firm, rents nationwide jumped 11.6% in 2010 to $1,320 a month. Rents typically rise in the spring so we can expect more increases in the coming months. 

Since interest rates dipped below 4% and home prices are still low, your monthly mortgage rate could easily fall below what you receive in rent even factoring in taxes and maintenance, with room for profit. Zillow has a "rental zestimate" feature which allows you to type in a property address and see what the mortgage would be at today's rates and the rental income (though keep in mind the mortgage payment listed depends on down payment, taxes, etc.). Out of curiosity I typed in my home address only to find the rent to be 143% of the mortgage! Craigslist and The Daily Camera classifieds are also a good indicator of going rents. The fact that investors are buying properties now to rent out (as opposed to "accidental landlords" who are renting out their property instead of selling for a loss) shows that the local rental market is very healthy.

There are obviously factors to consider when deciding to become a landlord or adding to your existing rental portfolio…how long you plan to hold on to the property, if you can have equity tied up for that time, who will manage it, etc. It is not a decision to be taken lightly. I work with all sorts of investors so call me at (303) 442-5001 and I'd be happy to go over options for investment properties and help you crunch the numbers. 

Financing, Appraisal Difficulties May Be Slowing Market Recovery

It’s no surprise that the nation’s sluggish economic recovery may be slowing down the housing market (and visa versa).  But Realtors in Colorado and elsewhere around the country are reporting that mortgage financing and appraisal hurdles are increasingly playing a major role in knocking deals out of escrow and holding back the housing market’s turnaround.

Time magazine reported that 16 percent of all sales contracts failed in July because the buyers could not secure a mortgage, according to figures from the National Association of Realtors. In other words, one out of every seven contracts is going down due to problems that buyers are having getting mortgages. To look at it another way, writer Alison Rogers says, there are tens of thousands of people who are trying to buy homes but can’t because they’re denied a loan.

In her article, Rogers – a Manhattan Realtor and founding editor of the New York Post’s real estate section – concedes that it’s possible that the system is doing its job, and that those denied buyers shouldn’t get loans. “Maybe they’re poor credit risks, or their employment isn’t stable, or they’re trying to overpay for their target properties,” she said. “But I doubt that’s the only thing going on because the percentage of denieds spiked so suddenly, from 4 percent in May to 16 percent in June.”

While July turndowns are steady from June, it does look to Rogers like that quadrupling earlier this summer reflects that, “a credit spigot was shut off very, very suddenly.”

Cash purchasers, on the other hand, haven’t fled the market. Some 29 percent of July sales were all-cash transactions.  NAR reports that “the bulk” of these are investors.  “Those with means, it appears, still believe in housing, perhaps lured by the slump’s relative bargain pricing. (Or they’re fearful of the daily rollercoaster of the global equities markets),” the Time article noted.

Difficulty in securing financing isn’t the only hurdle buyers are facing today. Local Realtors are reporting that surprisingly low appraisals are preventing many sales from going through. Colorado agents aren’t the only ones who are experiencing this issue. The Wall Street Journal, in a recent front-page article, noted Realtors all across the country are running into the same problems.

According to the Journal’s reporters, real estate appraisers, who were criticized by some for being too generous in their property valuations before the housing market fell, may be going overboard in the other direction.

“One of the conclusions from the housing bust: The appraisal system was broken,” the Journal said. “One of the conclusions some have drawn from the struggling recovery since then: The appraisal system is still broken, but in a different way. There is little doubt that home values have depreciated sharply in recent years for the most basic of economic reasons: excess supply of homes on the market and weak demand. But some realtors, home-sellers and economists believe low-ball appraisals also are undermining a housing recovery.”

The Journal said some real estate professionals believe that lenders are pressuring appraisers to come in with lower estimates. Banks also are using less-experienced appraisers, who often don’t appreciate factors that make a home worth more, they say. And valuations are being heavily influenced by distressed sales priced at a discount to the rest of the market.

Lenders are “instructing appraisers to be a little conservative, and that responsibility on the one hand is seen as credit tightening and, on the other, as exacerbating the housing problem,” Columbia Business School economist Chris Mayer told the Journal.  A research paper last year titled “How Much Is That Home Really Worth?” by economist Leonard Nakamura at the Philadelphia Federal Reserve, cited a downward bias in appraisals.

In talking with agents around Colorado, I’ve heard many anecdotes about sales being slowed down, renegotiated or even lost due to appraisal and mortgage financing issues. It does seem to be happening more and more these days.

While it’s important for lenders and appraisers to be cautious and prudent given the problems of the past, they also need to be reasonable in their approach and make sure that the pendulum hasn’t swung too far in the other direction. The recovery of the housing market is too important to throw more hurdles in its path.

Time for the President to Host Summit on Housing

Anyone who has followed real estate news knows the many challenges facing the nation’s housing market today. While some areas of the country, including Colorado, have held up reasonably well, much of the country is still struggling to recover from the sharp downturn of recent years.  The housing market is arguably the most important foundation of our nation’s economy. Without a solid, sustainable recovery in real estate it will be difficult for the overall economy to see strong growth once again.

With that in mind, our parent company, Realogy Corp., has issued a formal request to President Obama calling for a White House summit on housing to address some of the major hurdles holding back the housing market. Richard Smith, chief executive of Realogy, urged the President and his Administration to seek recommendations from real estate business leaders to help stimulate a sustained housing recovery.

As Smith noted, housing has an enormous impact on our nation’s GDP and given its substantial influence on all aspects of the economy, he believes it warrants special attention from the White House.

The key to the proposed White House summit on housing would be its emphasis on bringing together real estate business leaders to make actionable recommendations designed to stimulate the growth necessary for a sustained recovery in housing, which would have an ensuing positive effect on job creation and the broader U.S. economy.

Frontline business leaders from the residential real estate industry would add a valuable perspective to the process, and the summit would give the Administration the benefit of “unfiltered, real-time market feedback” from residential brokerage operators, real estate franchisors, homebuilders, mortgage lenders and other related industry groups.

In a letter sent to the President last Friday, Smith concluded by saying “your leadership on this issue would bring together the top business minds of the residential real estate industry at a time when practical business experience may very well offer the guidance necessary to stimulate housing, and thus, the U.S. economy.”

I’m proud that Coldwell Banker (through our parent company) is taking a leadership role on finding solutions to get the nation’s real estate market humming again. While there are many challenges facing our economy, much of it begins and ends with housing.

Louisville and Superior Do It Again

Word travels fast when CNN Money Magazine ranks Louisville number one again on its "Best Places to Live" list. Superior also made the list again, ranking at 20. For those of us who live in these areas, it's no wonder why others can see it's such a desirable place to live. Lots of sunshine, no shortage of outdoor fun, good schools, low crime, and having the mountains in our backyard don't hurt. I also love how great restaurants, shopping, and culture are all a stone's throw away. And we don't have to pay an arm and a leg to live here! Compared to other suburbs of larger cities, Denver's metro area is relatively affordable. And with the low unemployment rate, this area is an attractive place to be and makes the housing market more steady. Other Colorado towns to make the top 100 list include Castle Rock, Parker, and Black Forest. 

Why Your Home Isn't Selling

As an agent who specializes in helping sellers get their home sold, I work with many for sale by owners (FSBOs).  A recent article in the Wall Street Journal piqued my interest because it echoes the sentiment I see every time I help frustrated homeowners who tried to sell it themselves realize their dream.  "DIY Guru Gets Broker Help"  discusses how the founder of forsalebyowner.comand an advocate for doing it yourself saw the light.  After practicing what he preached for six months (wasting time and money), he hired a top agent like myself to sell his home at 6% commission.  The results exceeded his expectations, selling the $2.15 million condo for $150,000 more than he was asking as a for sale by owner, more than covering the commission paid (and he didn’t have to do any of the work).

Statistics:

- 50% of for sale by owners sell to a family, friend or relative

- 5.4% will successfully sell their home without the help of an agent

- 1 in 3 use an agent to sell their home

- The only lever a FSBO can pull in this market is the price lever…how do you know when you are at the right price?

It's easy to put your house up for sale. It's tough to get it sold. With the changes in the market, FSBOs are having less and less success on their own.  The average buyer sees 100-150 homes when searching their criteria online, looks at nine homes on average in person, and purchase only one.  Because the odds of getting a buyer into your house are so low, its necessary to make sure your home's first impression online makes the cut.  Blurry or dim pictures, unemotional descriptions, and making it difficult to set up showings are all areas where I see for sale by owners fall short – it is no wonder that hiring a top agent will net the seller more money after all expenses.

Call me, Definitely Dave, at 303-442-5001 so that you too can make the most money on the sale of your home, NET after expenses. 

Renting? Expect to Pay More

Does it seem to you like nearly everything is costing more these days? Go to the grocery store…pay more, fill up your car…pay more, renew your lease…pay more. According to the Colorado Division of Housing and the Apartment Association of Metro Denver, apartment vacancy rate in Boulder and Broomfield counties is down to 4.6% with an average monthly rent of $1,106.15, as compared to $995.07 a year ago. For a one year lease, that's an extra $252.96!

Obviously supply and demand play a huge factor in determining prices. With Boulder especially having such a low inventory of rentals, monthly rents are going to rise. While there is some inventory being added, such as the Two Nine North development at 30th and Walnut with 238 units, it is not significant enough to drive down rental prices. Historically Boulder has had a tight rental market and until more developers add inventory - which won't happen overnight - rents will continue to go up. 

Interestingly, the National Association of Realtors just released a report that seven out of 10 renters do aspire to be homeowners, saying it is a top priority for their future. Of those surveyed, 72% agreed that buying a home is a good financial decision while almost two-thirds said now is a good time to purchase a home. Since monthly rental payments build someone else's equity, consider the long-term savings homeownership affords. And, your monthly payment could be less than rent!

Is RealtyTrac for Real?

All of my buyer clients want a great deal. I can't blame them, and I work my hardest to get them a fair price. Like most people, my clients look online for properties and often in the beginning insist on buying a foreclosure or short sale to save oodles of money. Unfortunately the Internet, like TV, can be a bit misleading.

I'd say one out of every two buyer clients tells me something like this early in the process..."I was looking online and saw a $400,000 house for just $40,000. When can we go see it?" This is usually the part where I ask, "Were you looking on RealtyTrac?" and they answer with a surprised "yes".

While RealtyTrac.com may be good for reporting foreclosure data, the main issue I have with them is that a listed "sales price" is really just a defaulted loan amount or a lien. Most of these homes aren't even for sale! I have spoken with homeowners while helping them keep their homes and it's a shame that as soon as they fall behind on their mortgage there are people driving by their home, scoping out the "deal of a lifetime". It's stressful enough being behind on a mortgage and I'm sure you can imagine the additional stress this adds to the situation. How many of us know someone who has been down on their luck but is working with their lender to set up a plan to keep their home, only to have RealtyTrac mislead the public that they're ready to sell for a rock bottom price? To me this is an ethical issue but they're in the business of making money and charge a monthly membership of up to $49.Ironically, most of this information can be provided by a realtor at no charge. And, a realtor often ends up listing those homes that do become foreclosed because the bank hires them to do so. Using an agent costs you nothing and will end up saving you time and aggravation so it just makes sense to have a realtor on your side. 

Zillow's Zestimates Yield Different Results

Last month, Zillow changed it's algorithm to calculate Zestimates. The result is more accurate information, but not necessarily happier homeowners. According to Zillow, the previous national median error was 12.7 percent,  but that has now been reduced to 8.5 percent. Metro Denver was even cited as being one of the biggest gainers in accuracy. While this is good news for those consumers who use Zillow it has poised a dilemma for some homeowners who either feel their home is undervalued or legitimately are part of the "8.5 percent error." Though Zillow can't take the place of the abundant historical data found in the Multiple Listing Service, many consumers don't know otherwise and consider Zillow to be totally accurate. Fortunately the Boulder area results I searched all seemed close to accurate, but not all parts of the state or nation are as lucky. You can read Zillow's article, "Upgrading the Zestimate."

Great Entry Price into Louisville

Those of you who have or are currently looking for a home in
Louisville, you'll notice that your dollar doesn't go too far when it
comes to price per square foot. A single-family detached home in
Louisville can run upwards of $200 per square foot, and this includes
unfinished square feet. And make that closer to $250 per square foot
if you're seeking an Old Town location.

But for $189,900, you can get 1,568 finished square feet - that's just
$121 per square feet (and all finished too) at 146 Pheasant Run, Louisville, Colorado. This is a wonderful townhouse and priced better
than most other attached housing in Louisville. What I love about this
one is the townhouse feels very private and serene due to a more set
back location within Hunter's Ridge. It has a front porch and rear
balcony too to enjoy the nice summer days we've been having. There is
also plentiful natural light inside, an open floor plan, a woodburning
fireplace in the living room, and a finished basement with a bedroom,
home office, 3/4 bath and laundry. Bustling Old Town Louisville and
great schools can be within your reach with this one!

How Important Is Your Monthly Payment?

In today's market, I come across many homeowners who have outgrown their homes and had originally planned on being somewhere bigger and better than their current home. Most of them bought three or four years ago when home prices were higher and so were interest rates. They had planned on pocketing a nice amount of home appreciation to use towards their next home, but obviously the nation's real estate market had different plans for them. Of course, all of these homeowners don't want to stomach selling their home for less than they paid. I can't blame them as that is an awful feeling, however, depending on where they would like to buy it may make sense financially. 

Let's say you paid $300,000 for your home in 2008, put down 20%, and financed the remaining $240,000 at 6%. This would give you a monthly payment of $1,438.92 (excluding taxes and insurance). Let's say that same home is now worth $275,000, but your dream home which is also now priced lower is worth $325,000. We'll use a 20% down payment here too to keep things equal, so you're financing $260,000 at 4.51% (today's rate for a 30-year fixed according to Bankrate.com). The monthly payment for the newer, bigger, better location, nicer finishes - or whatever it is you're looking for - home would be $1,318.93, a savings of $119.99 each month or 1,439.88 annually. Granted there are other factors to consider, like if the new home's utilities or property taxes would be higher, or if the location would mean more time in your car. But if the dream home is your long-term plan then locking in this low rate could be the answer. 

So many people I speak with tell me that the monthly payment is one of the most important decisions when purchasing a new home, so if you're one of those people you may want to give it a second thought!   

Superior May Add More Housing

The Town of Superior is working with Remington Homes to potentially
add 53 single-family homes on a site near Original Town. Remington
Homes is still submitting the necessary paperwork for project
approval, but the new development, which will possibly be named Coal
Creek Crossing, would break ground in 2014. I'll post more information
as it becomes available.

Steel Ranch Project in Full Swing

Louisville’s newest development, Steel Ranch, is making some visible progress from the big dirt field it was. On a rare rainy Colorado day I was in the area and thought I’d take a few pictures so others can see the two model homes currently under construction. Steel Ranch is a new community on the west side of CO-42 between Baseline Road and South Boulder Road offering single-family homes by Ryland Homes and single-family patio homes by Boulder Creek Life and Home.

If you’ve been following this project, you’ll notice a “coming soon” date of July 2011. When I spoke with Damian Story, sales counselor at Ryland Homes, he said the two models being built now are the Vista and Vantage. While the Vista will be 2,189 square feet, the “Vantage will be a larger, more contemporary home just shy of 3,000 square feet,” he said.

According to Damian, in addition to the two model homes, Ryland will also have two inventory homes completed (before August) with another seven following soon after. It’s too soon to say how many of each model there will be as that will depend largely on consumer demand.

With prices ranging from $324,990 to $509,990 it is a good entry point for new construction with the sought-after Louisville, Colorado address. If you’re interested in Steel Ranch or other new developments in the works, please contact me. I have a proven track record of negotiating great deals for my buyers on new construction!

Now’s the Time for Upgrades

If you were considering replacing your dishwasher or getting new windows, now may be the time to do so if you’d like help paying for it. Boulder County residents who buy Energy Star appliances, install energy-efficient windows, add insulation, or replace a furnace by July 31 are eligible for up to $1,000 in rebates.


In order to qualify you must be registered in the EnergySmart program (visit EnergySmartYes.com). More than $300,000 is allotted to these rebates, but they’re on a first-come, first-served basis so don’t put this off if you’re planning on upgrading!

Guide to Colorado Summer Activities

Summer is almost officially here, and with that comes much more to do in sunny Colorado! From outdoor concerts to sporting events to art fairs to festivals, there is no shortage of ways to stay busy between now and Labor Day. View the 2011 Colorado Summer Activity Guide.


Fortunately, you don’t have to drive all across the state to experience these great events. The Activity Guide includes links to Boulder-specific events and local recreation ideas, plus Denver is a short commute away with even more activities to choose from that will please all ages. Check it out!

Google Maps Feature Shows New Use

We’ve all used Google Maps to get directions, but not long ago I discovered a new use for Google Maps in relation to my business. I created a map called “Definitely Dave’s Homes,” which shows all of the homes I have sold in the area. The sold homes are displayed with a red icon and those with a green icon are either on the market or have a contract pending. And, I’ve even sold some of these homes twice!


Like many Google products what I love about this map feature is its ease of use. Just click on one of the icon’s to see the address and exterior photo, plus if it is currently listed you will see the price and number of bedrooms and bathrooms too.

For those of you interested in creating an interactive map of any kind with photos, you can use Google’s Picasa software to house all your images then link to those in the map to display properly. It’s free and very user-friendly.

10 Reasons Why Now May Be the Best Time to Buy a House

Given the challenges we’ve faced over the last few years in the real estate market, some may question whether buying a house now makes good sense. But take a look around at the housing market today and signs everywhere suggest that you “Buy Now.” The fact is, today’s market presents an excellent opportunity for buyers to find very competitive home prices and historically low interest rates.

The reasons for home buyers to purchase now keep adding up. Setting goals and adopting good habits, such as saving more, reducing debt and improving credit scores, will put buyers in a good position to get what they want when it comes time to purchase a home.

To help you along the way, I’ve put together my list of 10 reasons I believe now may be the best time to buy a home:
1. Right now, you may be able to get a very good deal. In some markets, prices have dropped significantly over the last four to five years; in some areas dropping 25-50%. Will prices fall further? No one knows for sure; but trying to catch the bottom is very difficult. You’ll never know if you have hit the absolute bottom until after it happens and by then it’s too late!
2. Greater variety from which to choose. Single-family homes, condominiums, townhouses, new construction and existing homes are plentiful in many communities today. As a buyer, the greater the inventory the more likely it is that sellers will be motivated to sell.
3. New and improved research tools and technologies—like that of our Coldwell Banker Residential Brokerage website, ColoradoHomes.com—make finding the right home in the best location an easy and enjoyable task.

4. Modernized financing programs from the Federal Housing Administration that make buying more possible including options for first time home buyers as well as low and moderate income borrowers.

5. Mortgage interest rates remain at historic lows. Even though we’ve seen interest rates inch up in recent months, they still remain at near the lowest level in half a century. Of course, that won’t last forever.
6. We live in one of the most desirable areas in the country: Gorgeous weather. Trails. Hiking. Skiing. Museums. Culture. Shopping. World-class universities. And some of the finest restaurants in the country. You can do and see it all in Colorado, which is exactly why so many people choose to call the Centennial State home.

7. Owning a home is more than simply a place to live. According to MilitaryMoney.com’s article entitled “Home Ownership is Key to Building Wealth,” “The financial truth is that U.S. households build more wealth through home ownership than stock ownership.”

8. You may save on taxes. Generally homeowners can use the mortgage interest and real property taxes as deductions on their taxes. You may also get a tax break on any capital gains when you sell. Of course you’ll need to do the math with your tax professional, but many people find that these tax breaks can make homeownership less expensive than renting.

9. It will be yours. You will have the pride of ownership and greater flexibility to make the house your own home.

10. Sooner or later, the market will rebound. The population of the United States is going to continue to grow which traditionally increases the demand for housing; unless the supply of housing increases at the same rate as the population, basic economic theory will tell you that home prices should go up.

Buyers, my message to you is simple: Things are changing and the opportunities available today will not last forever. It’s human nature to wait for an “all clear” signal after the type of downturn that we have had. Unfortunately, once the market rebounds, the same price and interest rate opportunities may not be around.
If you are interested in the old-fashioned concept of buying a home to live in it for a number of years – there probably is not a better time than now to buy. If you are thinking about making a move please contact me today. I’d be happy to help.

Location, Location – Pearl Street Beckons!

What’s not to love about Boulder, Colorado’s renowned Pearl Street? With a wide assortment of restaurants and shops, and an even wider assortment of entertainment and people watching, Pearl Street is the mecca of Boulder. I just listed a condo that is in a great location—on Pearl Street but a couple blocks away from the hustle and bustle. 625 Pearl St, #5, Boulder offers 2 bedrooms and 1 bathroom for $275,000. The owner updated this unit and did a fantastic job! New cabinets, slab granite countertops, tumbled tile backsplash, and stainless steel appliances in the kitchen, plus bamboo floors in the living room and hall, make this home move-in ready. There is also extra storage and assigned off-street parking. Stop by at the open house Saturday, April 16, 1:00 – 3:00 to see for yourself!

Will You Be a Regular at the Farmer's Market?

It's that much-anticipated time of year again, when Saturdays consist of walking around the Farmer's Market, getting fresh produce and enjoying live music while catching up with friends and neighbors. The Boulder farmer's market season kicks off this Saturday from 8:00 a.m. - 2:00 p.m.on 13th Street between Arapahoe and Canyon.

Are you looking for easy access to the Farmer's Market all summer long? I just listed a sunny townhome at 3860 Colorado Ave., Boulder that is located right on the bike path. It has a 2-car garage, hardwood floors, master suite with vaulted ceilings, living room fireplace, and abundant natural light. This 2 bedroom, 2 bath is listed at $350,000 and is also in a convenient location to CU and buses to downtown Boulder and beyond.
The Boulder Farmer's Market will also be on Wednesday evenings starting May 7. Here are other area Farmer's Markets:

Broomfield: Fridays, 4 p.m. - 7 p.m., Zang St. and Flatiron Crossing
Erie: begins Saturday, May 21, 8 a.m. - 1 p.m., 515 Briggs St.
Lafayette: beings Thursday, May 19, 4 p.m. - 8 p.m., 309 S. Public Rd.
Longmont: begins Saturday, May 7, 8 a.m. - 2 p.m., 9595 Nelson Rd.
Louisville: begins Saturday, June 4, 8 a.m. - 1 p.m., 824 Front St.
Niwot: begins Friday, May 20, 4 p.m., 7980 Niwot Rd.

Only Two Owners in 64 Years!

I just listed a lovely home at 402 W. Geneseo Street, Lafayette and while learning more about the property I was shocked to find out that my client is only the second owner of the home, which was built in 1947! Pride of ownership shows—this house has been lovingly maintained and will make a great home for the next owner.


Here’s what I love about this home: the hardwood floors, arched doorways, and bungalow style give this house character; it has a large fenced yard (the lot is more than 7,000 sq. ft.); finished basement with bedroom and bathroom; great location—walk to Old Town Lafayette’s shops, restaurants, antiques, schools and parks. It is listed at $220,000 and has an oversized main floor bathroom, newer exterior paint, upgraded electrical, ceiling fans, plus all appliances are included.

Will you be the third owner for this Old Town gem?

Another Successful Kitchen Remodel

One of the great aspects of being a Realtor is seeing a lot of “before and after” remodels. A client of mine recently remodeled his kitchen and though it was nice before, it is stunning now! He spent the extra money on slab granite countertops and stainless steel appliances, plus a Jenn-Air downdraft. What’s nice is that since the home has an open layout, you could actually see and enjoy the “new” kitchen.


If you or someone you know are looking for a single-family house in Boulder that has a nice, open feeling to it, I encourage you to schedule a showing at 4863 Gibbs Avenue, Boulder; the home is listed at $529,000. With 3,960 total square feet (2,736 finished sq ft) there is plenty of space to live comfortably. The basement is already roughed-in and this home has a first floor master suite with a huge walk-in closet. Take a look!

Great Price Per Finished Square Foot Here

I recently listed a house at 1982 Lochmore Drive, Longmont that is just $88 per square foot – you can’t build for that cheap now! The entire home is finished with a fabulous basement rec room with a wet bar. There are lots of great features of this house both inside and out, like the Trex deck, brick paver patio, and serene water feature. The property backs to a golf course and has beautiful mountain views.
With generous room sizes and high ceilings, this house has a very open and comfortable feel to it. The kitchen is great too – cherry cabinets, slab granite counters, and an island for extra cooking and storage space. The huge master suite, second floor laundry room, and attached 3-car garage make this one easy to live in. At $430,000, this is a lot of house for the money.

Betting on Buffett

It seems like everyone has their opinion on where the housing market is headed, but those predictions aren’t all created equal. Just last week Warren Buffett wrote to Berkshire Hathaway shareholders, "Within a year or so, residential housing problems should largely be behind us." Phew! It is nice to hear positive news regarding an industry I am so passionate about. I know it will not be an easy path returning to real estate normalcy, but the fact that Warren Buffett (with his unmatched track record) sees things looking up, so do I.


Buffett also wrote, "Prices will remain far below 'bubble' levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits. Indeed, many families that couldn't afford to buy an appropriate home a few years ago now find it well within their means." This statement really hits close to home; when working with clients I find many of them only looking at one side of the coin. They see that they are selling their home for less than it was worth a few years ago, but what they are overlooking is the home they’re about to buy is also less than it used to be. While this isn’t an ideal situation for those downsizing, buyers who are upgrading have a real advantage.

In real estate, it is all about supply and demand. It is nice to see those two approaching more even levels now.

Pizza Puts Boulder on the Map

It’s been awhile since I’ve written a blog about local restaurants, and after a visit to the new Pizzeria da Lupo, it seemed like a good time. Since Colorado isn’t exactly known for its pizza it is nice to see a variety of pizza places popping up in the Boulder area. Pizzeria da Lupo has delicious, Italian stlye pizzas, similar to Proto’s; whether you need to get your own or can share is up to you, but if you do share I’d opt for a salad too. The ingredients were so fresh and high-quality, though the beer glasses could be a bit larger. The service was great and they were very accommodating for my one-year-old daughter, giving her a special plate of sliced mozzarella and removing the pits from the olives we ordered. Pizzeria da Lupo is from the same owner as Louisville’s Empire Restaurant. Next on my list…Frasca’s new Pizzeria Locale.

Is a Walk Score Important to You?

Much of Boulder, Colorado is very walkable, thanks to the plentiful paths, strong support of small businesses, and laws that make the area pedestrian-friendly. From work to happy hour, Boulder residents like to be on their feet (or bikes) and so it is important to live somewhere where a car is not a necessity. As a whole, Boulder has an average walk score of 73 out of 100—not too shabby!


If you’re unfamiliar with “walk scores” there is a website, WalkScore.com, which rates any address you type in for its walkability. According to the site, the average resident of a walkable neighborhood weighs seven pounds less than someone who lives in a sprawling neighborhood. And according to their research, one point of Walk Score is worth up to $3,000 of value for your property!

I recently listed a beautiful end-unit townhome at 3077 29th Street in Boulder that has a walk score of 77! A score this high means that it is very walkable and most errands can be accomplished on foot. What I love about this townhome besides its location is that it really is move-in ready…nice open kitchen with modern appliances, separate dining room, washer/dryer in-unit, and the privacy offered by both front and rear fenced patios. There is also underground parking, a sand volley ball court, and swimming pool. Check it out!

CB’s Latest "Rising Star"

Last weekend I had the pleasure of attending Coldwell Banker Residential Brokerage’s annual awards banquet in Colorado Springs. (If you haven’t made it to The Broadmoor yet, I highly recommend it.) While there I had the pleasant surprise of being named “Rising Star of the Year” – quite an honor! Out of the 14 Coldwell Banker offices in metro Denver, it was definitely an accomplishment to receive this recognition. Though I am now in my third year in the business, the award recognized exceptional sales production in 2010, my first full year as a broker with Coldwell Banker. I really do love selling real estate in the Boulder, CO area, and I'm glad it shows.

Colleagues often ask me what I’ve done to be successful so quickly, hoping I’ll reveal some top secret shortcuts to success, but it really is my hard work and dedication to customer service that has gotten me where I am. I’d like to thank all my clients, past and present, for trusting me with such an important decision, for the kind words at the closing table, and for the referrals you have given me of your friends and family. That is quite a complement and I truly appreciate it!