Why would I want to be a homeowner?

There has been a lot of tough news coming out this week about the real estate market and overall economy in general. Everywhere you look you see dismal statistics and talk about things like depreciation, record housing inventory levels, foreclosures, shadow inventory, and many experts questioning if buying a house is still a good investment.

Unfortunately, the recent real estate boom (and resulting bust) has skewed our perception about what owning a home really means. Sure - we would all love it if we could continue to experience huge appreciation and growing equity just by paying our mortgage each month. But what about the less tangible benefits of homeownership?

An August 2010 report by the National Association of Realtors discussed the Social Benefits of Housing. Some of the findings include statistics that show that family units in houses with homeowners (versus houses with renters) experience:

- A higher rate of teens staying in school
- A lower rate of teen pregnancy
- Higher educational achievement (and higher earnings as a result)
- Higher civic participation in the local community

Of course there is an even more personal side to our homes. In our homes we build our lives with our partners, raise our children, play with our pets. We celebrate holidays, birthdays, anniversaries, and all those major life milestones. We cook, garden, entertain, decorate, and relax. Our homes are our sanctuary - the place we can go to feel safety, security, and unconditional love. We make memories in those little moments of our everyday lives: in the meals and laundry and homework.

So maybe you aren't going to experience double-digit appreciation on your home in the future. Maybe you won't be able to refinance and take out a new loan that is 105% of the value to buy a shiny new car or take a a European vacation. But that doesn't mean that we should all give up on homeownership. Let's not forget all the other benefits that we experience as homeowners every single day.

Jennifer Fly

Colorado Landmark, Realtors
303-443-3377
jenniferfly@coloradolandmark.com
Twitter: @jenflycolorado

What's in a Sign? Choosing the Right Listing Agent to Sell your Home.

The spring selling season is well upon us, but perhaps you are still in the process of putting your house on the market for sale and wondering how to choose a listing agent. Today’s consumers have almost unlimited options when it comes to selecting a real estate firm for the sale of their property. The purchase or sale of a home is about the experience of the transaction and performance of the real estate professional as much as it is about the property itself. As such the selection of the right real estate professional is of the utmost importance. Colorado Landmark, Realtors recommends that anyone looking to select a real estate firm consider the following five important criteria.

1. Have the right network connections.
2. Demonstrate a proven track record.
3. Have a property marketing program.
4. Be invested in resources.
5. Specialize in luxury (IF your home qualifies as a luxury property)

The Right Network Connections
It is important to evaluate what the individual realtor's or company's name or connection actually represents with regard to local sales statistics as well as strength on a global basis. For example, Colorado Landmark is a member of Leading Real Estate Companies of the World®, as well as two global luxury marketing programs, The Luxury Portfolio Fine Property Collection™ and Christie’s Great Estates®.

• Leading Real Estate Companies of the World® is a major real estate network comprised of the best locally and regionally branded residential firms selling nearly $370 billion in homes annually, more than any national franchise brand.


• The Luxury Portfolio Fine Property Collection™ , the luxury marketing program of Leading Real Estate Companies of the World®, sells more $1M+ homes each year, has more top sales associates, and has more of the top listings in the country than any other real estate organization.


• Christie's Great Estates®, a wholly owned subsidiary of Christie's, the world's oldest fine art auction house, was established in 1995 and is the largest network of real estate brokers dedicated to the marketing and sale of important properties.

Demonstrate a Proven Track Record
Choose a firm that has a proven track record in dealing with properties in your specific neighborhood and price category – a firm that has done this before and has existing clients that you can contact for references. You can always see what properties a firm is marketing and make sure that the firm you choose is entrenched in the marketplace, working with other similar buyers and sellers.

Have a Property Marketing Program
All firms can “run an ad” or put a sign in your yard, but the effectiveness of that promotion and the overall marketing program needs to be evaluated. In this challenging market, it’s not about more marketing but marketing differently. The firm that you choose needs to have access to the right buyers – and target their program to reach those buyers. The web is just as selective and effective marketing dictates being on sites that attract the right consumers, not necessarily the masses. Today, the mix of websites should include those attracting local and regional customers on a global basis, as this is the key to finding the right buyer for your home.

Be Invested in Resources
All real estate firms are licensed to sell all properties, but it is important to choose a firm that has invested in the resources it takes to successfully market properties. Every home needs to look its very best, and in this challenging market it is even more critical that the home appears to offer the best value for the money. This means finding a firm that can consult with you to improve the salability of your home. The firm should also assist in the process, recommending efficient solutions to correct any issues through their network of service providers and resources.


Specialize in Luxury (if applicable to your home)
In the Boulder area a luxury property would typically be one priced over $900,000, although there are some homes that would be considered "luxury" in eastern parts of the county in the $800,000 range. Big firms and national franchises are not necessarily better; a boutique marketing organization within a large firm or a local single office firm that specializes in luxury is probably best suited to handle the individual marketing needs of a luxury customer. Every luxury home is unique and individual – typically because it was designed and built for the needs of a very exacting individual with very unique and specific requirements. It takes a educated real estate professional who does not use an “off the shelf” approach, but rather understands the needs and sees the unique features of the home that actually make a difference in the lifestyle of the owner and future buyer.

So ... What to Do?
Just because you see someone's signs in a lot of yards it doesn't mean they will be successful selling YOUR home. Find out if the realtor works independently, with a partner, or with a large team. Decide how much personal attention you want and need from your realtor. Do you mind if you see them at the listing presentation and then never again? Is it okay if your main point of contact is their assistant? Do you want your realtor to check in with you on a weekly basis - hint ... they should! Are they stuck in a rut of newspaper ads, or have they migrated to a multi-faceted marketing approach that includes heavy internet presence?

Boulder has one of the highest numbers of realtors per capita than anywhere else in the country! Everyone in town seems to know at least 2-3 realtors! Decide if you are comfortable sharing your personal and financial information with a friend, or if you prefer to work with someone less closely connected to your circle. There are pros and cons to both scenarios, although many people swear by the tenet "business and friendship don't mix". Go with your instincts and prior experience and do what feels comfortable to you. A good friend will have your best interests at heart and should understand if you choose another realtor. If you decide not to work with a friend, then let them refer you to a colleague that they know and respect.

Ultimately your home selling experience should be as stress-free as possible. Sure ... it IS stressful to keep your house clean and ready for showings at a moment's notice. However, if you are confident that your listing agent will successfully guide you through the process from preparation and staging, to a multi-faceted marketing campaign, to contract negotiations, and finally to closing the transaction, your home selling experience can be a good one.


Pam Metzger
Director of Relocation and Business Development
pam@coloradolandmark.com
twitter = @pmcolorado

Why the Time to Buy is NOW!

Many buyers are dipping a toe into the market, but not ready to take the plunge. They are concerned that the real estate market hasn’t hit bottom, and therefore they are playing the waiting game. But it’s important to realize that interest rates are at record lows – in fact, the average rates we are seeing now haven’t been seen since the early 1970s. And many people don’t understand that interest rates can make a huge impact on your overall costs – sometimes even more than the actual purchase price of the property.

For example, if you purchased a house priced at the appropriate current market value of $250,000 with today’s rates (30-year fixed are around 4.875%), your payment would be around $1323.00. If, on the other hand, you wait for the price of the house to drop, thinking your market hasn’t bottomed yet, and the price does go down 10% - to $225,000 but rates have risen 1%, you could be looking at the same monthly payment. AND during the time you wasted you were paying rent towards someone else’s mortgage (your landlord!). AND if you are a first time buyer you only have until December 31st to take advantage of the $8,000 tax credit.

Additionally, if you wait too long and “miss the boat”, there could be less inventory when you eventually decide you ARE ready – resulting in fewer options and a more expensive mortgage.

Your realtor should be able to refer you to a lender who can put together this type of break-even-analysis for your specific situation and help you determine if it is the right time for YOU. At Colorado Landmark, Realtors we work with a variety of excellent reputable local mortgage lenders - let us know how we can help!


Jennifer Fly
Broker Associate, Colorado Landmark, Realtors
jenniferfly@coloradolandmark.com
Twitter = @JenFlyColorado

Much to my surprise! Real Estate Pirates

"Argh there Mate’s, there are pirates in our mists…”

In my effort to stay current I use Google Alerts and love it! But it can unearth the darndest things. I want to share my thoughts and hope to start some dialogue with our brokers and others about our own real estate style of piracy.

Being an old salty dog and long time listing agent, I believe there is some priority in the listing process, meaning that I am the one that has to provide my seller with the necessary exposure to sell their property. As a managing broker I am the one who designs, implements, and pays for the unique selling and marketing of each listing. I live or die on my performance, competency level and techniques. Or I walk the plank!

Today however there are other agents who scrape our listings and blog about them on their own websites, and market them as their own listings! When a listing is on a website sometimes it is not that obvious to the viewer who the listing belongs to. While at first glance this may seem like additional exposure for our listings, however there are several reasons why this is a problem.

We are hired by our sellers because they believe we can do the best job selling their property. We spend extensive time and money learning about the property, preparing it for sale, collecting pertinent documentation, and ensuring that every detail about the property that we enter into the MLS or any websites is accurate. Our sellers trust us to protect their investment and their privacy. This pirating of listings is counterproductive, disingenuous, and ultimately damaging to our clients, our businesses, and our cooperative relationships.

So, what do you think? If you are an agent, I encourage you to post a comment here or send me your example of real estate piracy and how it has effected you and/or your clients. If you are a home Seller, how would you feel about this if it was your listing being pirated to other unauthorizedwebsites? I’m convinced that social networking and personal communication is not only necessary but healthy. But like any good thing it needs to be tweaked and governed. We as real estate professionals have to work together and respect each other so we can dig ourselves out of this tough market effectively and successfully.

Joel Ripmaster

Broker/Owner

Colorado Landmark, Realtors

joelripmaster@coloradolandmark.com

303-443-3377

Spring Home Maintenance Tips for Owners and Sellers

Whether you are trying to sell your current home, or take good care of the one you have, here are a few good spring time maintenance tips.

• 
  Clean and lubricate hinges, locks, and moving parts in window and door hardware once a year to maintain ease of use. In Colorado sometimes these get stuck if doors and windows aren't open much in the winter. This is a safety issue as well as a convenience issue - you want to be able to get out of the house in an emergency.

• 
  Test the auto-reverse function on your garage door, as well as the balance. Familiarize yourself with the door's release mechanism in case of emergency or power failure. Kids will be playing outside more now that the weather is better so keep them safe in and around your garage.

• 
  Cut grass no shorter than 3 inches, and never more than 1/3 of the blade. Mow in the morning or evening. Deep watering, in the morning, is better for your grass than frequent, shallow watering. In our hot Colorado summers watering in the morning will save water too as it won't evaporate as much as it will if you water during peak sun hours.

Pam Metzger

Director of Relocation and Business Development

303-302-8839

pam@coloradolandmark.com

Twitter = pmcolorado

Good News and Bad News ... which do you want first?

Well the media is starting to turn around a little and seems to have discovered that if you print something remotely positive about the economy people might read it! But as always there is good news and bad news. Which do you want first? Let's save the good news for last.

First the bad news ... Boulder and the rest of our area is not feelin' the uptick yet. I just ran the numbers for our MLS for March 2009 compared to March 2008 and here is what I found:

• # of new listings is DOWN 16.4% for single family and 6.5% for attached dwellings - many sellers are still reluctant to test the waters or can't afford to take a loss. This also means that although there are some foreclosures in our area they have not flooded the market at this time.


• Median and average list prices are UP 7-10% for both single family and attached. Sellers still haven't internalized the message that homes are not going to move at 2005-2007 prices anymore!


• # of units sold is DOWN, and in a big way - 32% for both single family and attached. Yikes! Obviously despite the "bubble" we all think we live in here in the Boulder/Denver area we are definitely seeing the effects of depressed consumer confidence.


• Median and average sold prices are DOWN too, although not as bad as they could be - 5.7% and 13.5% for single family respectively, and less than 1% and 7.6% for attached dwellings.


• Total home sales $ volume is DOWN also in a big way - over 41% for single family, and over 37% for attached dwellings, which just validates that fewer units are selling, and for lower prices than last year at this time.

So what does that mean for you as a seller? If you live in Longmont, Loveland/Berthoud, Ft. Collins or Greeley/Weld County then your house might sell quicker than you think. These are the areas with the highest # of units sold in March 2009. It's no coincidence that these are also some of the more affordable communities in our MLS coverage area. Only 35 homes and 52 attached dwellings sold in Boulder last month. Broomfield, Louisville, Lafayette and Superior all report lower units sold as compared to last year.

Okay, these are the facts, and they are indisputable (isn't that a movie line?). I wish we had better numbers to report, but it's not our job to blow sunshine in anyone's face. As real estate professionals we have a responsibility to our clients to provide the facts, meaningful analysis, and make all of this relevant to our clients and their situations.

Now ... here is the GOOD news from a few different news feeds from today (I know you are saying "Finally!"):

Recovery Hopes Begin to Blossom - from CNN Money.com 4/7/09
http://money.cnn.com/2009/04/06/news/economy/recovery/index.htm?section=money_latest
Economists think there are some long- and short-term indicators giving more hope that the economy is closer to a turnaround than previously thought. Pent up demand for goods, slowing job losses, and home price declines will all help to turn around consumer confidence and fuel a recovery.

Signs of a Housing Bottom? - from CNBC.com 4/6/09
http://www.cnbc.com/id/30071303?__source=RSS*blog*&par=RSS
Existing and new home sales increased in February. Sales are headed in the up direction. Blogger/real estate reporter Diana Olick is slightly optimistic!

Signs of Hope and Fear In "Foreclosure Central" - from CNBC.com 4/7/09
http://www.cnbc.com/id/30086754
Signs of hope in the housing market because sales have jumped. The $8000 tax credit being one reason. Prices have stabilized and inventory is down in some markets. Markets that have seen huge foreclosure activity are starting to see more green lawns, meaning less vacant foreclosure properties and people are out in their yards. "That part of it is very encouraging."

So as I said earlier ... Boulder and the rest of our area is not feelin' the uptick ... yet. Key word = YET. It is coming - we see it in our office every day with agents setting showings like crazy on our listings. Consumer confidence is on the rise - maybe everyone just needed to go have a good spring break, and now they are back they are testing the waters.

Hope you had a good spring break! Now get off the fence, and into the yard!

Pam Metzger
Director of Relocation and Business Development
Colorado Landmark, Realtors
pam@coloradolandmark.com
303-302-8839

Reality Bytes - Boulder County Home Inventories

When I say I can sympathize with frustrated homeowners whose properties haven't sold yet, I really mean it, because my own home is for sale too. I have been considering a price reduction on my property, so I decided to do some research on inventory levels in my home's market area. It occurred to me that other folks in Boulder County might want this information too.

Here's what I did ... I found the number of homes sold in various price categories for the last six months, from September 2008 through March 2009. Then I compared that with the current inventory as of yesterday, April 1st 2009. With some simple math I determined the number of months worth of inventory in each price range. This gives a seller an idea of how long it may take to sell their home.

And let me tell you ... the news ain't good, at least in some price ranges. Not so great for sellers that is, but great for buyers because there is a lot to choose from. Overall the most dismal news is in the high end condo market in the City of Boulder. And not surprising is the glut of homes in county inventory over the $1.5M price point. The good news ... if you have a home between $200-500k you can expect to sell it within approximately 6 months or less. In the chart below, if you see "none sold" instead of a number of months of inventory it is because no properties sold in that price range from September 2008 through March 2009, which in itself is a significant statistic.

A couple of notes ..

• The numbers represent the number of months it would take for all of the existing inventory to sell, assuming that the rate at which buyers are purchasing remains the same and no new inventory is added.


• The existing inventory is just a snapshot in time. Inventory changes daily and usually increases in the spring and summer. But there are also more buyers during this time as well.


• Unfortunately not every home is saleable in its current condition - some properties are just too flawed to attract a buyer without deep, deep discounting.
  

If you would like a similar analysis of inventory in your neighborhood don't hesitate to contact me!

Pam Metzger

Director of Relocation

pam@coloradolandmark.com

303-302-8839 (direct)

Good News times Three – Finally!

I am in sunny Scottsdale, Arizona getting ready to attend the 2009 Leading Real Estate Companies of the World annual conference this week. This year the theme of the conference is The Power of the Bold, which is entirely appropriate for what I wanted to write about today.

I was inspired to blog today after reading my hotel copy of USA Today. I usually catch my news in small doses these days as the gluttony of bad economic news and discouraging headlines has been too much to take. Today however I was riveted to the newspaper because of three headlines.

“Areas of Economy Swelling with Jobs” was the first one that caught my eye on the front page. Hallelujah! How exciting to hear that there are sectors of our economy and geographic areas that are seeing growth. The areas cited in the article were health care, government, education, energy and mining. I guess this doesn’t come as a surprise given that these are areas of focus for the new administration in Washington. Many people that have recently lost their jobs will be turning to these industries, hoping that their skills will transition, or that they can attain new skills without too much downtime.

“Stocks Score Huge Rally on Hopes that Worst if Over” was the second attention grabber. This news has many people thinking that stocks might finally be on the mend. Monday’s rally was significant in that on some levels it doesn’t appear to be a blip. The rally had breadth in that all 30 stocks in the Dow saw increases, and as did all but 4 of the S & P 500. The rally seems to have some sticking power too – the best 2-week rally since the bear market took hold. And all 10 industrial sectors of the S & P 500 saw gains, indicating that industries are healing. This is all great news for people who have been seeing their retirement, college or down-payment funds take a beating. Hopefully this means there is public confidence in the government’s latest plan to “ungum the pipes”.

And finally, “Home Sales Rose a Sweet 5.1% in Feb.” This is the best news for homeowners trying to sell, as well as buyers who are dipping their toes back in the market after waiting out the bottom. Overall sales volume rose, meaning buyers are getting off the fence to the cheers of anxious home sellers. And prices fell sharply in many major markets, to the delight of buyers hoping to snap up a deal and enter the market in what will surely prove to be the best time to buy a home decades. Downward pressure on prices combined with the lowest interest rates I have ever seen in my own adult life – average interest rates for 30-year fixed conventional loans are at 4.89% - make home buying now a “no brainer” investment decision.

So again I ask the question – why are you still on the fence when you should be in your new yard? Is it because you have a house to sell that isn’t moving? I’ll write again shortly about the most important things a homeowner can do to position their home to sell. If you don’t have a home to sell then it is just downright ridiculous to think that these aren’t the first signs of stabilizing home prices. And even if we haven’t hit bottom yet, we are surely getting close. If you think you will hold on to the property for 2 years or more, then this is the time to be powerful, be BOLD! Go forth and buy!

If you appreciate this information and would like more, please let me know by contacting me at pam@coloradolandmark.com. I am the Relocation Director here at Colorado Landmark. I am NOT a licensed real estate professional and I won't try to sell you anything. As the Relocation Director it is my job to assist people moving in and out of the Boulder/Longmont/Broomfield area in any way that I can. I stay abreast of the current trends and statistics and can help you dig up information, analyze your current situation, and make decisions about where you want to go.

Pam Metzger

Director of Relocation

pam@coloradolandmark.com