‘Tis No Off-Season

Ahh, the holidays. A time to sit back, relax, and wait a few months for the real estate market to start up again. Right?

Ironically, that that’s what most people believe. Just like the public used to have a misperception that flipping houses will make you a millionaire (we all know how the truth panned out there), there’s a major misconception that real estate activity hibernates through the winter, and that buyers come out of the woodwork once the spring blossoms appear.

In fact, since Thanksgiving I’ve had 8 deals go under contract in just three weeks, plus an uptick in the number of showings on my listings. And today, my open house was crowded with people who felt it was more important to shop for a home than for presents.

Why all the activity this time of year? For one, with the holidays people seem to have more flexible work schedules, allowing them time to either get their home ready to sell or look to buy. And with the New Year right around the corner, people have a focus on the future mindset, which may include a new home. Of course, it doesn’t hurt that interest rates are at 3.25% for a 30-year fixed.

All the references I’ve heard to real estate having an “off season” originate from non-real estate news sources. Are you interested in taking advantage of this seller’s market? Call “Definitely Dave” today at 303-442-5001.  

Hello and Goodbye to Phillips 66

As a realtor who sells homes in Louisville, Colorado, I’ve come across more than one homeowner telling me they were holding off on selling until the ConocoPhillips (now Phillips 66) research and training campus was underway. “My house will be worth a fortune once ConocoPhillips comes here,” one man even told me. “Why would I consider selling now?” Though I believe the presence of such a large, well-known company would have boded well for the area’s home prices with all the jobs it would have created, unfortunately they’ve pulled the plug.

The 432-acre property in Louisville, Colorado will be coming on the market soon. According to Louisville Mayor Bob Muckle, "The uses that ConocoPhillips originally envisioned for this site don't really fit into Phillips 66's long-term plans at this time.”

Fortunately, the site can be developed by another interested party and with it being perfectly situated between Boulder and Denver, it’s just a matter of when, not if, someone will buy it. But since commercial properties can take years to sell, I wouldn’t hold my breath that Louisville residents can expect significant home appreciation directly related to this property. The appreciation will come from Louisville’s already vibrant downtown, good schools, and overall great quality of life. 

A Refreshing Change in the Headlines

Goodbye doom and gloom. While a housing rebound has been evident recently, it is new news for the media to agree that the real estate market is on the upswing. Consumer confidence is up, foreclosures are at a 5-year low, construction jobs are back, and moving trucks are on the road again.

Just this week a Deutsche Bank executive wrote that the "residential housing market is in the very early stages of a durable recovery" and noted the housing recovery is important because housing is what led the US economy into a recession. And Barclays Capital recently forecasted that home prices could be back to peak levels as soon as 2015.

Locally, activity in the Boulder, Colorado area market is busy.  But it’s a double-edged sword. Some homeowners who would like to sell are holding onto their homes longer, in hopes that the improvement we’re seeing in the market will increase their home price. But right now, inventory is tight and buyers aren’t always finding what they’re looking for. So, many buyers continue to sit on the sidelines.

Sellers need to factor in the cost to hold. Let’s say their home is currently worth $400,000, and they’re estimating a 3% appreciation for holding on one more year. That would put the home value at $412,000. Sellers need to weigh the perceived benefits of putting their life plans on hold for one more year. It’s hard to put a price on uncertainty, and as recent years have taught us, home prices can be unpredictable. For sellers on the fence and buyers on the fence, there’s no time like the present.  

The Definition of Attention to Detail

It’s not every day where I feel the need to write about the level of finishes in a home I am selling, but 4295 Caddo Parkway in Boulder, Colorado should not go unnoticed. The owners have a meticulous attention to detail and it shows from top to bottom in the ranch home they rebuilt in sought-after Frasier Meadows.

Right when you walk in you’ll notice the open feel created by the 10-foot ceilings and 8-foot windows in the living room and master bedroom. Maple hardwood floors throughout the nearly 2,600 finished square feet lead to amenities such as a magazine-quality Nicollet gas fireplace. The high-end kitchen offers a walk-in pantry, Amish cabinetry with “soft close” feature, durable quartz countertops, stainless steel appliances, and custom under counter lighting. His and her walk-in closets with organization systems and a deluxe spa shower make the master suite a retreat. Even the laundry room offers an organizing center and wrapping paper dispenser.

Outside is equally impressive, with a flagstone entertaining area with fire pit, three cement decks, hot tub hook-up, dark sky outdoor lighting, producing pear and peach trees, large evergreen and deciduous trees, professional landscaping with sprinkler system, and a raised flower bed with a drip system all in the generous-sized, fenced-in yard.

With all new electrical, plumbing, heating, and cooling, and a 5-star HERS energy rating, this home will be enjoyed for years to come. Call “Definitely Dave” today at (303) 442-5001 for your private showing! 

More Summer Fun at Louisville’s Street Faire

With August upon us, it’s hard to believe that summer will soon be over. At least the Farmer’s Market hangs on a bit longer to make it seem like life isn’t going by quite as fast. One great summer activity that actually is fun for all ages is the Louisville Downtown Street Faire. Every Friday throughout the summer, downtown Louisville, Colorado transforms to a music mecca with great food and beer too. With only two concerts left until next summer, I encourage you to check it out if you haven’t already. On August 10 the Gregg Rolie Band will play (Santana and Journey co-founder) and on August 17 is the Emmitt-Nershi Band (Drew Emmitt of Leftover Salmon and Bill Nershi of String Cheese Incident).  The Street Faire lasts from 5:00 – 10:00 p.m. with the music about 6:30 – 9:00 p.m. Aside from a variety of great food, you’ll find some local beers on tap, vendors selling arts & crafts and things, and activities for the kids. Plus, it’s free! 

Why August Is The Best Time To Buy

August seems to always be a busy month for everyone – summer vacations are wrapping up and families are getting their kids ready to go back to school. And because of this, the real estate market tends to experience an end of summer slow down, which makes August one of the best times to buy in the year. 

First of all, many buyers are on vacation and/or the frenzy of back to school time has put house hunting on the back burner, so there are fewer buyers with whom to compete. Inventory is still high because not everyone who listed in the spring market has sold, plus all of the listings that came on in the summer which haven’t sold are also available. Many of these sellers have had their house on the market for a while and thought they would have sold by the end of the summer, so they can be anxious for an offer.  Not many people list their home in August so the buyers have already seen what’s out there; a lot of these buyers just keep waiting on the sidelines for fresh inventory but nothing comes on. Those who choose not to wait can score some amazing deals. Whether you’re just starting to look or think you’ve seen it all, I have a great way to search homes through my website. It’s always current, and there’s a neat feature to mark which ones you’re interested in so you can easily keep track of your likes and dislikes.

Now What’s Your Excuse?

We all know that interest rates are low, but it seems like that’s been the topic in the media for years now. It’s almost mundane and expected. So why would I bother repeating it? Because 30-year mortgage rates are the lowest ever! One of my buyers just locked in a rate of 3.75% and the bank is paying him $5,200 in closing costs to take that rate. (He is buying a $290,000 house with only $10,000 down and no closing costs.) The AP reported last week that 30-year rates dropped to 3.67 percent, the lowest since long-term mortgages began in the 1950s. The 15-year mortgage rate dropped to 2.94 percent. So potential buyers, now what are you waiting for? Call “Definitely Dave” today at 303-442-5001 if you’re ready to own real estate in Boulder County. Don’t kick yourself later when you’ll have to pay more.

With a Change in the Market Comes a Change in Appraisals

A lot can happen in a few years, as evidenced by the real estate market of the past decade. As a backlash to homes being over-valued and borrowers over-extended, I’m seeing a far different outcome for some home appraisals. The Wall Street Journal ran an article last week, “Fighting Back Against Lowball Home Appraisals.” As the headline suggests, home buyers and would-be refinancers are running into appraisers valuing their home far lower than it’s really worth, hindering any chance of taking advantage of today’s low interest rates.

In my situation, last month I was working with a seller to get his house in Gunbarrel ready to list; at the same time, buyers who I’ve been showing homes to for the past 11 months expressed interest in seeing this house. It wasn’t officially on the market yet but my buyers loved it and both parties happily agreed on a purchase price. Then comes the appraisal needed for my buyer’s loan…standard procedure and I’m not expecting any surprises or hiccups here, but the appraisal comes in 5% less than the agreed upon sale price! We ask for a re-appraisal but the lender doesn’t budge on the appraised value. Now, these buyers of mine are very savvy and have seen just about everything out there, so they know exactly what they want and how much they’re willing to pay for it. In other words, they know they’re paying the fair market value for this home. To better prove that it is priced in line with the current market, I received plenty of calls from other realtors showing interest in it.  

The good news is that we have been able to find a successful workaround which works for both the buyer and seller.  Creative problem solving and experience, combined with the cooperation of all parties, have kept this deal together and a win-win for everyone.  When choosing an agent in any market it is critical to hire someone with both the knowledge and drive to see a deal from start to finish.

So do today’s appraisers have good intentions but bad data? Part of the problem is that finding a truly comparable sold property can be difficult, especially if the sale is not recent (past several months).  And many appraisals are simply an exterior “drive by” which makes it impossible to know of any recent interior updates. I think what we’re experiencing now is a kink in the appraisal process that will eventually work itself out once appraisers and the public in general have their confidence restored in the improving real estate market. Until then, this issue may resurface. After all, a home is only worth what someone is willing to pay for it. 

Nearly 1,000 Sq Ft Condo, with Garage Parking!

When a well-maintained, spacious 1 bedroom condo like this becomes available, I just have to tell people about it. 550 Mohawk, #58, Boulder, Colorado has 945 square feet with an open layout and vaulted ceilings, giving it a very airy feel. There is also a private office with French doors and large closets, so more space you’re your average 1 bedroom. What I enjoy best about this unit is the secluded patio that has sliding glass doors off both the master bedroom and living room; it’s a great place to enjoy our 300+ days of sun a year. The HOA has a pool and clubhouse, plus the building is close to many trails and you’ll have convenient access to Foothills Parkway, Hwy 36, CU, bus line, bike path, grocery, and library. At $234,000, this is a great buy! Call "Definitely Dave" today at (303) 442-5001 to see it.