Top Ten Sales - Boulder/Broomfield Counties - February 15-28, 2011

At the recent Vectra Bank Business For Breakfast the Colorado economy was the prime topic.  One of the state's leading economists, Dr. Phylis Resnick from the Center for Colorado's Economic Future, says that we can expect to experience a "new normal" for the time being.  This translates to slower growth in most economic variables and slightly higher long-term unemployment rates. The good news is that Americans are saving again, with personal savings rates returning to levels not seen since the 1908's. Colorado real per capita personal income dipped a little in 2009-2010 but is forecast to see a slow but steady upward climb.  The bad news is that there will be a continued gap between Expenditures and Revenues for the State of Colorado with no end in sight.  This means our local communities will continue to be challenged to maintain the amenities and services we have been so accustomed to.


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 February 15 through February 28, 2011 here are the numbers:

•148 properties sold (compared to 197 for same period in 2010)
•Price range of properties sold during this period: $60,000 - $2,500,000
•Median price: $287,000
•Average price: $389,586 (down from $420,907 for last period examined)
•$0-199k = 34 sold this period
•$200-299K = 41 sold
•$300-399k = 24 sold
•$400-499k = 17 sold
•$500-599k = 10 sold
•$600-699k = 9 sold
•$700-799k = 1 sold
•$800-899k = 5 sold
•$900-999k = 2 sold
•$1.0-1.9M = 4 sold
•$2.0M+ = 1 sold

Top Ten Listings Sold during this period:

Information obtained from MLS and public record.

Each period's Top Ten numbers continue to point to the potentially fatal ramifications of over-pricing.  This period the glass-half-full view is that 5 of the top 10 properties examined sold for 90% or more of their original asking price.  The flip side of that is that the remaining five sold for 77.5% or LESS than their original asking prices.  The property on Bellevue Dr. sold for a dismal 56.8% of it's original 2007 asking price.  The key here is the 2007 ... it took 1000 days for this property to sell.  Now we expect that properties of this caliber can take a year or more to sell, but almost 3 years?  That's a total miss on the pricing mark from the get-go.  2539 Briarwood sold for 77.5% of it's asking price after a ridiculous 1334 days on the market.

The other part of the glass-half-full is that only NONE of the above properties sold for less than what the owners paid for it.  That is great news!  It is impossible to tell if these owners put in any improvements that would have increased their basis significantly, but if not then all of these lucky folks did a little better than break-even.  As I said last time, homeowners can't assume that their housing is going to be a big money-making investment - key word = housing, when it comes down to it that is what your home is.  Homeowners also should not be surprised if they encounter a few more realtors out there that are willing to turn down the opportunity to list their house.  You know a good realtor when they turn down your listing because you can't agree with them on price.  No amount of marketing and internet exposure can make up for pricing too far beyond what the market can bear.

Your takeaway here is the following advice on Selecting a Listing Agent: 

• If you are considering listing your home, interview at least 3 realtors.  Ask each about their experience selling homes in YOUR SPECIFIC neighborhood.  If they don't have it, show them the door.  What different skill sets do they bring to the table? How will they alter their marketing strategy if your home doesn't sell quickly?
• Ask each for an opinion of likely sale price and therefore best list price.  IMMEDIATELY throw out the high one.  Seriously!  Don't get sucked in to overpricing your home by a realtor that just wants another listing in their inventory and will tell you what you want to hear.  If you hear what you want to hear, consider that a big red flag. 
• Don't necessarily choose the realtor that you "like" best.  The goal here isn't to make a life-long friend, it is to sell your house, for the highest price, as quickly as possible so that it is the least inconvenience to you.

Until next time ...

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 Associate and Client Featured on HGTV tonight!

Colorado Landmark, Realtors associate Michelle Clifford and her client are the featured story on tonight's HGTV episode of My First Place!  If you are in the Boulder/Denver area tune in at 6:30pm to Comcast channel 39 or Dish Network channel 112.

In tonight's episode ... Michelle's client Ginny is set on buying her first place in only one Boulder neighborhood, but will her budget get her an updated older first place that's and problem-free? She discovers that with older homes often come bigger problems, which may leave Ginny with more than she bargained for. How much will Ginny compromise to get her first place within her favorite Boulder area zip code?

Michelle Clifford has been a sales associate with Colorado Landmark since 2006.  Her dedication to her clients can be seen in every transaction. She epitomizes professionalism and diligence. Her attention to detail ensures her clients receive the quality of service expected of a Colorado Landmark, Realtors broker.  Michelle's recent acquisition of the designations GRI, ePro, and RECS ensure that she is staying on the forefront of the changing real estate market.  Way to go Michelle!

Top Ten Sales - Boulder/Broomfield Counties - Sept 5-11, 2010

There is volatility in the real estate market right now (yes, even in Boulder/Broomfield), and an abundance of conflicting news reports and statistics that maare potentially confusing to buyers and sellers. At Colorado Landmark, Realtors we are committed to knowing OUR local market and giving our clients and friends the most up-to-date and accurate information possible.


To that end, about every other week we will give you detailed information about the prior week's real estate actvity in Boulder and Broomfield Counties.  What is selling, at what prices, how long these properties are taking to sell, and other relevant information about what's going on in OUR area.

For the week of September 5-11, 2010 here are the numbers:

•58 properties sold (down from 81 properties 2 weeks ago)
•Price range of properties sold during this period: $114,900 - $1,500,000
•Median price: $265,000 (down from $290,000)
•Average price: $364,332 (down from $432,480)
•$0-199k = 13 sold this week
•$200-299K = 18 sold
•$300-399k = 10 sold
•$400-499k = 5 sold
•$500-599k = 5 sold
•$600-699k = 2 sold
•$700-799k = 2 sold
•$800-899k = 0 sold
•$900-999k = 1 sold
•$1.0-1.9M = 2 sold
•$2.0M+ = 0 sold

Top Ten Listings Sold during this period:
Information obtained from MLS and public record.

Looking over the last two reports of Top Ten on this blog, there are a couple of obvious conclusions. One, if you have priced your home in the $700-999k range, be prepared for a tough go.  If you are in the $800's it is especially rough.  Homes in this price range are difficult to sell right now.  For the Boulder area this is typically a "move up" price range.  It has historically been a tough price point to sell anyway, but with consumers concerned about unemployment it's even tougher for buyers to make that leap to "movin' on up" now.

The other obvious conclusion is that sellers still haven't gotten the message about overpricing their homes.  You can hire the best realtor in the area, with affluent connections, the most innovative and comprehensive marketing, and biggest web presence.  You can stage your house beautifully, keep it spotlessly clean for showings and open houses, and make it look like an HGTV showcase home.  But all that means nothing if you insist on overpricing it!  You don't need to give your home away, but you DO need to be realistic and toss both your ego and emotional attachments aside.

I am going to sound like a real broken record here, but again ... it doesn't take a rocket scientist to look at the chart and see that the five homes with the longest DOM are the five homes with the most drastic price reductions, from 21.8% all the way up to 62.3% off original list price.  Hellooooo ..... anyone listening?

Here's your takeaway for the week - It's time for tough love.  Instead of beating your realtor up about why your home hasn't sold, get their honest opinion (or one from their managing broker) about what it will take to price your home to sell in the next 90 days.  Listen, bite down on that leather strap, and just do it.

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

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

Credit Information EVERYONE Needs to Know

If you are thinking about buying a or re-financing now, or anytime in the future, one of the main factors determining your ability to qualify for a loan is your credit score. Understanding what credit scores mean, how they are calculated, and how to improve your score can make the difference in your ability to qualify for a loan and get the best possible terms and interest rates.

Credit scores range from 300-850. Here is how those scores are broken down:

780 and Above: Outstanding

740-780: Excellent

690-740: Good

620-690: Fair

62o and Below: Poor

Typically, the higher your credit score, the better loan terms you will be offered. People with scores below 620 will generally not be able to qualify for a loan.

Credit scores are determined by a number of factors including:

• Amounts owed
• Payment history
• Types of credit in use
• New Credit
• Length of Credit History

There are three major credit reporting agencies: Equifax, Experian, and TransUnion. These agencies may all have slightly different information, and they each use a different method to calculate credit scores, so your score will be slightly different from each one. Most lenders will pull credit reports from all three agencies when processing a loan. It is important that everyone checks their credit report at least once a year to ensure that the information is accurate and up-to-date. You can pull a free copy of your credit report once a year through the website http://www.annualcreditreport.com/. This website also offers credit scores, for a fee.

If your credit score has seen better days, there are things you can start doing right away to improve your score:

• Pay all your bills on time
• Work to get credit card balances below 25% of their limits
• Open new accounts only if absolutely necessary
• Lengthen your credit history
• Seek credit counseling through the National Foundation for Credit Counseling http://www.nfcc.org/
• Opt-out to stop receiving new credit card offers through http://www.optoutprescreen.com/ or call 1-888-567-8688

In Boulder County, we have a fantastic resource for anyone who is thinking about buying a home and has questions about credit or related items. The Boulder County Housing Counseling Program offers free housing counseling and classes http://www.bouldercounty.org/hhs/housingcounseling.htm. These services are available to residents of Boulder, Broomfield, and western Weld Counties.

Brought to you by:

Jennifer Fly

Broker Associate

Colorado Landmark, Realtors

(303) 443-3377

jenniferfly@coloradolandmark.com

Twitter: jenflycolorado

Fall Maintenance Tips for Your Home

Fall is officially here in Boulder, with our first true chill in the air! October in Boulder is beautiful and there is always something going on - school events, sports activities, CU Buffs games, and Halloween to name a few things. Don't get so busy with the fall fun that you forget stay on top of a few important home maintenance "to do's". Whether you are staying put for the time being or you are sellling your home and trying to keep it comfortable and in great showing condition be sure to make time for the following:

• Trim trees and remove dead branches. Bad weather and the high winds we sometimes experience here in the Boulder area can cause weak limbs to break, damaging property or causing injury. Consult a professional tree service for large jobs.
• Reduce energy costs by lowering the thermostat on your hot water heater to 120 degrees F.
• Make sure caulking around windows and doors is adequate to reduce heat loss.
• Replace the filter on your furnace and schedule routine maintenance with a qualified heating contractor.
• Change the batteries in your smoke and carbon monoxide detectors - time this to correspond with switching your clocks back in the fall, and then forward in the spring so you won't forget!
• Clear out gutters and downspouts on the exterior of your home to prevent the build-up of leaves and debris that can impede the flow of rainwater and cause water damage.
• Check your chimney for birds nests or other debris especially if you have a wood burning fireplace, and make sure the chimney cap is in place. Call a chimney sweep to perform maintenance.
• Be aware that mice will try to start coming in from the cold, especially if you live in or near a rural area, field, park or open space. There are numerous ways to trap mice, humane or otherwise. You will find many choices and expert assistance at McGuckin Hardware, Boulder's go-to place for pretty much everything since 1955.
• Consider repainting or staining and sealing your exterior doors to protect them from rain, snow, ice and wind. A $10 can of paint or sealant could go a long way to prevent damage to an expensive door.
• Cover your patio furniture, outdoor grill, portable firepit, etc... or move into storage.
• Drain and store your garden hoses, and have your sprinkler system blown out to prevent damage to pipes in freezing weather.
• Pull your refrigerator away from the wall and vacuum the condensor coils to prevent damage to the motor.
• Check your dryer exhaust tube and vent for built up lint, debris, birds nests, etc...
• Clean out your whole house humidifier and replace filters before heating season starts.
• Be prepared for weather related emergencies such as high winds, tornados, blizzards, or flooding. Organize survival kits and review an emergency escape or protection plan with your household.
  

Have a wonderful fall and enjoy everything our beautiful area has to offer this season!

Pam Metzger
Director of Business Development and Relocation
Colorado Landmark, Realtors
pam@coloradolandmark.com
303-443-3377

Boulder Real Estate Company Expands Reach to French Riviera!

David Scott of Colorado Landmark, Realtors in Boulder is a lucky fellow ... he is fortunate to split his time living in two incredible locations - Boulder, CO and France! Dave recently leveraged his considerable experience and international connections and has sold a luxury home in Port Grimaud, France for €1.3 Million, or about $1.85 Million.

At Colorado Landmark, Realtors we are very fortunate to be affiliated with the Luxury Portfolio Fine Property Collection. Luxury Portfolio was launched by Leading Real Estate Companies of the World in 2005 and in the very first year it's award-winning website, http://www.luxuryportfolio.com/, featured more $1 million-plus properties than any other luxury real estate organization. Today Luxury Portfolio represents over 17,000 of the world's most remarkable properties. Luxury Portfolio is a major player in the global arena, with properties in 24 countries, website visitors from over 200 countries, site translation in nine languages, and conversions for 60 currencies. With over 45 states and 24 countries represented, their total inventory of properties exceeds $39 billion. Using Colorado Landmark's affiliation with Luxury Portfolio, Dave Scott was able to list, market and sell a beautiful property in France near the French Riviera.

Dave recently sold this charming Maison de Pecheur (or Fisherman's House) in the village of Port Grimaud, France, where every home has direct access to the Mediterranean. Port Grimaud began in the 1960's as the dream of French architect Francois Spoerry. His dream was to create a private lagoon city with waterways in place of roads, where yachts could be docked in front of the owner's homes. The village was designed with traditional Provencal architecture and looks like an authentic centuries-old coastal village. Originally planned for 900 dwellings it has grown to over 2200 dwellings over the past 40 years. Port Grimaud is located in the south of France at the head of the Golfe of Saint-Tropez, equal distance from Saint-Tropez and Sainte-Maxime.

As a long time Boulder resident, Dave has seen Boulder from multiple perspectives - as a student, a corporate employee, a business owner and realtor, a homeowner and a parent and grandparent. Dave strives to provide his clients the best service possible and is constantly working to enhance his knowledge and expertise. He recently earned the EcoBroker® and TRC (Transnational Referral Certification) designations. He also recently completed his course work for both the CIPS (Certified International Property Specialist) and ABR (Accredited Buyer's Representative) designations. On his website you will see that Dave's clients are understandably generous with testimonials to the level and depth of the expertise and service he provides in the Boulder area. With his international experience and contacts Dave can also guide clients through the maze of rules and regulations that govern property purchases in France.

At Colorado Landmark, Realtors we are proud that Dave Scott is a member of our wonderful team of broker associates, and we congratulate him on this incredible accomplishment. If you would like more information on real estate in Boulder or in France Dave Scott would be pleased to assist.

David Scott

Broker Associate

Colorado Landmark, Realtors

http://www.boulderrealestateinfo.com/

303-443-3377 x250

New Lending Regulations May Affect Your Boulder Area Home Sales

We all know that the real estate market and the mortgage industry has been going through many changes. With past mortgage fraud leading to an all-time high number of foreclosures, the government is taking measures to prevent deceptive lending practices and ensure that buyers are better protected and informed. In 2008, the Home Ownership and Equity Protection Act (HOEPA) and the Housing and Economic Recovery Act (HERA) were passed by Congress, and the Federal Reserve Board published new regulations under the Truth in Lending Act. In addition, Fannie Mae and Freddie Mac adopted the Home Valuation Code of Conduct (HVCC), which will take effect July 30, 2009. These new regulations will affect several aspects of real estate closings.

• Lenders are now required to use an appraiser from a national pool of independent appraisers from around the country. In the past, lenders maintained longstanding relationships with local appraisers, and were sometimes able to influence the values in order to secure financing, which led to some appraisals being inaccurate. The intention of this new regulation is to put more separation between the lender and the appraiser to ensure fair, accurate appraisals. In reality, it also means that the appraiser who is evaluating a property may not be experienced in that specific market. Before the appraiser is scheduled to come to appraise a house, Sellers should have any documentation about the house that might be helpful in the valuation – receipts for work they have had done, a list of improvements they have made and special features about the house. This will help an appraiser who is less familiar with that area deliver the most accurate evaluation possible.
  
• Buyers are now required to receive a copy of their appraisals no less than 3 business days prior to the closing of their loan. The intention of this rule is to make sure they have ample time to review the appraisal and fully understand the value of the property they are purchasing.
  
• The earliest any home purchase transaction can close is 7 business days after the homebuyer is issued his or her initial Truth in Lending disclosures from the lender. These documents are typically given to a buyer at the time of the application, but if the buyer and lender don’t meet in person, the requirement allows extra days for mailing (e-mailing isn’t currently an acceptable form of delivery). Again, this insures that Buyers have time to review all the documents.
  
• Upfront fees that have been typically collected at the time of application can no longer be collected until the Truth in Lending disclosures are received, and the same rules apply as stated above – there needs to be time built in to allow for mailing of these disclosures unless the buyer meets with the lender in person.
  
• And lastly, any increase in more than .125% in the APR from the initial Truth in Lending disclosures (which can happen for a number of reasons, including a change in the loan amount, an un-locked rate or a re-lock in a rate, changes to fees, etc.) requires the disclosures to be re-issued and received by the buyer at least 3 business days before closing.
  

Ultimately, what this all means for buyers and sellers is that parties need to allow ample time between contract and closing to address all these issues. Working with a knowledgeable, experienced Realtor who is up to date on the latest rules will ensure that your transaction is structured appropriately to avoid any closing delays due to these new regulations. At Colorado Landmark, Realtors we strive to be up to date on the latest industry issues to provide exceptional customer service to our clients.

This article contributed by:
Jennifer Fly, Broker Associate
Colorado Landmark, Realtors
303-302-8823 (office)
jenniferfly@coloradolandmark.com
www.twitter.com/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