Top Ten Sales - Boulder/Broomfield Counties - January 1-15, 2011

Modest improvement ... deals but no steals ... new companies sniffing around the Boulder-Longmont-Broomfield corridor ... those are the words on the street.  "Colorado is expected to add 10,100 jobs in 2011, with most sectors showing some growth," according to economist Richard Wobbekind of the University of Colorado.  Most area experts think that Colorado's economy will track with the national economy and show slow, steady growth over the next year.

The holidays are always a slow time for home sales, and this year was no exception.  But there is some pent up demand and we are seeing that start to trickle into 2011. 

Approximately every other week Colorado Landmark provides detailed information on the real estate actvity in Boulder and Broomfield Counties from the past two weeks. Hopefully our analysis will help reveal what properties are selling, at what prices, how long they are are taking to sell, and other relevant information about what's going on in OUR local area - Boulder County and Broomfield County.

For the two week period from January 1 through January 15, 2011 here are the numbers:

•85 properties sold (compared to 96 for same period in 2009)
•Price range of properties sold during this period: $43,000 - $2,109,000
•Median price: $300,000
•Average price: $420,907
•$0-199k = 22 sold this period
•$200-299K = 19 sold
•$300-399k = 14 sold
•$400-499k = 8 sold
•$500-599k = 6 sold
•$600-699k = 4 sold
•$700-799k = 4 sold
•$800-899k = 2 sold
•$900-999k = 0 sold
•$1.0-1.9M = 5 sold (none sold during this same period 2010)
•$2.0M+ = 1 sold

Top Ten Listings Sold during this period:

Information obtained from MLS and public record.

It never ceases to amaze me that each period's Top Ten numbers reveal an obvious trend or relevant market statistic.  This period the disappointing news is that our area is definitely seeing negative appreciation in the upper price brackets.

All but one of the homes in this period's list sold for over 80% of their original asking price, which in this market actually isn't that bad for these upper bracket price categories.  The home on Old Tale sold for an embarrassing 50% of the original asking price, and it took over 700 days to do it!  My guess is that if this had been priced in the $1.8-2.2M range it would have sold quicker, and the owners would not have left so much money on the table.  Someone really missed the mark on that one!

But the real story here is the negative appreciation.  Six of the ten homes on the list sold for less this month than they did in previous years from 2003 to 2007.  That time period was our boom, when buyers were scrambling to find good properties, willing to pay anything, and realtors were just taking orders.  We live in a "new normal" now as one of our associates said to me the other day.  Homeowners can't assume that their housing is going to be a big money-making investment, and realtors need to provide more analysis and be willing to turn down a listing opportunity if the seller can't be realistic about the pricing.

The takeaways here for me are the following:

• If you know you will be somewhere for the long haul, then buy what you want, where you want.  But if there is a chance your plans could change in 5 years or less, avoid the higher price points and buy something that would be more widely appealing and attainable to a larger population of buyers.
• Also, if you have a home priced over $700,000 you can expect the market to continue to be quite slow for a while and/or you may not recoup your original purchase price in today's market. Some folks might even have to wait until 2014 for that.
• There is still a market for homes over $1M, especially in the $1-1.5M range, so if you can price your luxury home in that zone you might do well!

Finally, some shameless plugs for our company ... Colorado Landmark, Realtors represented buyers and sellers on 4 sides of the above 10 transactions (or 20 sides total) and we were the only company to participate in more than one transaction on this list.  Also, kudos to Colorado Landmark broker associate Michelle Clifford for selling her listing at 6487 Cherry St.  She priced it well and it sold for 86% of the original asking price, not bad for a property over $2M, and it sold in a year, which is to be expected for a property of this caliber and price point.  Congratulations Michelle!

Pam Metzger
Director of Relocation and Business Development
Colorado Landmark, Realtors
800-737-MOVE
http://www.coloradolandmark.com/  
www.facebook.com/COLandmark  
www.facebook.com/365ThingsBoulder

Colorado Landmark, Realtors is "Leading the Revolution"

Last week, Colorado Landmark, Realtors sent four of our top agent/managers to "Leading the Revolution" - the 2010 Annual Leading Real Estate Companies of the World convention in Las Vegas. The convention was a wealth of information and education about everything pertaining to the real estate industry today. This included topics like new technology, social media, luxury marketing, risk management, short sales, and relocation, to name just a few.

I participated on a panel regarding Luxury Portfolio, the Luxury property marketing division of LeadingRE (stay tuned for a post about that later this week) and the Director of Business Development and Relocation at Colorado Landmark, Pam Metzger, contributed to a panel about social media.

Colorado Landmark was one of four brokerages in the whole network who hosted a booth on "networking night", and we shared some fabulous "Taste of Boulder" products including Justin's Nut Butter, Bobo's Oat Bars, Madhava Honey & Agave, and Pangea Organics. (Thank you to all those wonderful companies for their contributions!).

Leading Real Estate Companies of the World® is a global network of over 600 premier real estate firms with 5,000 offices and 150,000 sales associates in 35 countries around the world.
Collectively, this group has sold over 1 million homes worth $300 billion in 2008, more than any national real estate brand.

LeadingRE member companies dominate the United States' list of top 500 real estate firms, with more of the Number One market leaders in the top 90 markets than any national brand. All member companies are independently owned, and are the top one or two firms in their marketplace.

Colorado Landmark, Realtors could not be more proud of our affiliation with LeadingRE. If you are thinking about buying or selling a home, or simply have a question about Boulder or the surrounding areas, please give us a call.

Jennifer Fly

Broker Associate

(303) 443-3377

jenniferfly@coloradolandmark.com

Twitter: @jenflycolorado

Yet ANOTHER Potential Deal Breaker – Loan Locks, Buyer Credits and Escrowed Funds

In the last week our office has dealt with yet another new challenge in residential real estate sales. Two of our transactions have been at risk of complete derailment due to the increased lender “stickiness” that many people are experiencing in this market.

Consider these scenarios – you have a willing buyer who goes under contract on a property and locks in their loan rate for 45 days. You have a willing seller who has agreed to undertake some major home repairs in order to get the deal to close. With the two cases our office is dealing with, one transaction involves the replacement of an entire septic system to the tune of $18,000. In a second separate transaction it is some major roof repairs that will top out at $25,000.

In both transactions the sellers determined that it would not be possible to have the major repairs/installations completed by the scheduled closing date. So what? The obvious solution is to push the closing date out so that the work is completed prior to the sale. But this means the buyers would lose their loan rate locks. No surprise that since rates have increased neither bank would extend the buyers’ loan lock past the original 45 day time period! In both cases the sellers generously offered up several options: 1) credit the buyers with cash back at closing for the agreed upon estimated full cost of the work; 2) escrow funds at closing sufficient to cover all costs with any remainder going back to the sellers after the work is completed; or 3) reduce the purchase price prior to closing by an agreed upon estimated amount for the full cost of the work.
This time 2 years ago, or even last year, most lenders would not have had any issues with any of the above options. Not so now! In the case of the septic system, the lender would not allow the credit or the escrow of funds, but would allow the sellers to reduce the purchase price. In the case of the major roof repairs, the lender won’t allow any of the options, so the buyers and sellers are still trying to work out a way to get the deal done. The current option on the table is for the sellers to begin repairs prior to closing and pay the contractors “as they go”. At closing the contractors will provide written estimates of the remaining work and the sellers will put appropriate funds into escrow so the contractors will be paid that remainder upon completion. We’ll see how this works out. Speaking from personal experience, all of these options created a great deal extra stress for the sellers.

What’s going on here?? Why are lenders sabotaging these deals?

The crux of the story here is that the lenders have us by the “huevos”, meaning that realtors have to be proactive with their buyers and sellers. What advice and assistance can we offer clients in these types of scenarios? How do we earn our keep?

• For buyers, get the longest loan lock possible from your lender. Do the research ahead of time to find a lender that is willing to be flexible should a situation like this arise.


• For sellers, make every effort to get work done prior to closing. Start immediately getting bids, estimates and work scheduled within the timeframe of the contract. Have a pre-inspection done prior to listing the house to identify major issues that might come up. Repair what you can ahead of time.


• For realtors, make sure you have strong working relationships with several good reputable lenders. If you represent the buyer make sure you communicate their loan lock situation to the seller’s agent so that all parties know the time constraints. For your sellers, encourage them to do pre-inspections and repairs prior to listing. Make sure you and/or your office have good resources for contracting - companies that you refer business to often that will give your clients top priority scheduling, reliable estimates and timely service.

It’s easy to blame the lenders for the challenges of our new real estate world, and maybe they do deserve it (ummm, maybe?). But the reality is that, like it or not, realtors have to operate within constantly changing economic and market parameters. It is our job, no … our RESPONSIBILITY to be informed, to be knowledgeable, and to be proactive problem solvers for our clients at all times. THAT is how we add value and justify our existence in this new world. A Colorado Landmark Boulder real estate agent has the knowledge and resources to successfully help you navigate through these tough issues.

This article contributed by:

Pam Metzger

Director of Relocation and Business Development

pam@coloradolandmark.com

303-302-8839 (office)

www.twitter.com/pmcolorado