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

Credit Scores - What it Means, Why it is what it is, How to Change it!

The broker associates and staff at Colorado Landmark were fortunate to have Kevin Teel (303-920-1052 office) from ABC Financing come and speak on the topic of credit scores.  In his capacity as a mortgage lender Kevin is often faced with having to help clients decipher their credit scores, and as such has become somewhat of a local expert on the topic!  Here is a summary of some of the things he spoke to us about ...

What IS a Credit Score? 
It is a number between 350 and 850 that represents what tradeline organizations (credit cards, lines of credit, store accounts, lenders, etc ....) think your credit and transaction history represents.  The higher the score, the less risk it will be for them to extend you further credit.  "Perfect credit" right now would be a score of 740.  The highest score Kevin has ever seen was an 823!

Who are the Credit Reporting Agencies, and Who Uses their Info?
There are 3 agencies that track your credit - Equifax, Transunion and Experian and each of them has a file on anyone who has ever been given credit. Each organization has their own secret formula for calculating your score.  A mortgage lender will get an overall picture of your credit worthiness by pulling scores from all three agencies.

How to have a GREAT Credit Score!
Make all of your payments on time, and have a good payment history.  Be aware though that if you have a late payment and are assessed a late fee, it is not necessarily reported to the credit bureaus. Have low balance ratios.  Example: if the card limit is $1000, a low balance ratio would mean you owe 33% or less than that, or $333 or less on that card.  Anything over a 65% balance ration will raise a red flag with your lender.  Have a reasonable # of tradelines open - Kevin mentioned that FIVE is a good number.  A mortgage, car loan, student loan, and 2 credit cards is an example of good combination.

What Other Things Affect Your Credit Score?
When you open up a new credit card account, your credit score could take about a 30 point hit initially, until a your payment and usage history can be determined.  When your mortgage lender pulls your credit report you will NOT take a credit hit.  However if you start talking to several lenders and there are more than 3 credit report pulls in less than 2 weeks your score may be reduced by 10 points per pull.  Usage on your debit card does NOT report to your credit score.

If you are taken to collections on something, this will definitely have a negative effect on your score.  If you are able to resolve the issues the creditor does have the ability to call the credit bureaus and have the item removed, you just have to convince them to do it!  The more credit applications you make, the more hits your score will take.  It usually takes 30-60 days for your credit score to be adjusted for these types of things.. 

If you have been involved in a foreclosure on a home mortgage your score likely take about a 200 point hit.  As far as the lender is concerned, being 120 days or more late on your mortgage affects your credit the same as a foreclosure.  Being involved in a short sale affects your score less - check with your lender or financial advisor about the specifics for you.

If you are applying for a mortgage DON'T do anything until your loan closes that will affect your score, like buying a boat, applying for new credit cards, renting a summer home, etc...  These are all things Kevin has seen clients do that ended up affecting their ability to close their loan and/or the rate they got!

Why Worry About Your Credit Score?
More and more orgagnizations we deal with on a regular basis are pulling our credit scores to get an idea of the kind of people we are - employers and prospective employers, insurance companies, car dealers, mortgage lenders, landlords, department stores, etc....  Did you know that a good credit score can make a difference in up to $100/month on insurance premiums?  Your credit score will also determine the interest rate you get on your mortgage, which of course you want to be as low as possible!

How Can You Establish Good Credit, and Help Your Kids Establish Credit NOT Debt?
Get a secured credit card from a bank or credit union.  Credit unions are especially great in working with young people.  Ask the tradeline that you use if they report to the credit bureaus, and if they don't, request that they do.  Gas cards are easy to get.  Put your child on one of your existing credit cards or lines of credit, but make sure the limit is low and they know that it is still your account!  Their credit will get "credit" too for the usage.

Stop applying for credit if you want to improve your score!  Close accounts you do not use, but keep a minimum of 4 lines open even if you don't use them.  Don't close the older more mature accounts as this history really helps you.

Find Out Where YOU Stand!
You have several options here.  You can go to each of the credit bureaus independently and get reports, or you can go to http://www.experian.com/ and order your Personal Three Bureau Credit Report and Score.  There is a fee for this.  To see your report only but not your score for free, go to http://www.annualcreditscore.com/ and get one report per year free.

As a disclaimer we will say that we at Colorado Landmark are NOT credit experts.  Please contact Kevin Teel or your preferred lender, or one of the 3 credit reporting agencies to verify statements made in this post, or to answer any questions you may have on this topic.

Thank you Kevin for the great class!

Energy Efficient Homes and the SAVE Act, by Liz Benson

With permission from the author Colorado Landmark associate Liz Benson please enjoy Liz's recent article/blog post on the Elephant Journal on the SAVE Act and energy efficient homes.

We all know that energy efficient homes save money for their owners – money they can use to more easily pay their mortgage and maintenance costs. Current mortgage underwriting guidelines, developed in the 1940′s, don’t take this into account. They ignore the potential hundreds of dollars in savings that an energy efficient home can provide, compared to an inefficient home. Better information about the full costs of home ownership should include not only the principal, interest, taxes and insurance, (known as PITI) but also the energy cost. The idea is to revise these outdated credit policy decisions by the federal mortgage programs (Fannie and Freddie Mac) which guarantee more than 90% of all new mortgages. This will allow home buyers to more easily qualify to purchase an energy efficient home, set rules for appraisers to value energy efficient improvements, thereby encouraging builders to include them because they will get paid for any additional up-front costs.


The SAVE Act (Sensible Accounting to Value Energy) is championed by Senator Michael Bennett (D – CO) and supported by home builders as well as energy efficiency advocates. For more


And while you are at it, check out a zero energy home in Frazer Colorado, designed by a friend of elephant, Bryan Bowen.

This article authored by:

Liz Benson, Broker Associate
Colorado Landmark, Realtors
http://www.boulderliz.com/

Top Ten Sales - Boulder/Broomfield Counties - Dec 1 - 15, 2010 - Location, Location, Location

Our Colorado economy is still struggling but there are signs of improvement. The Denver Post reported this week on job growth in Colorado.  "The primary indicator for any state of economic recovery is job growth, and for the first time in three years, we have experienced three straight months of job growth here in Colorado," Governer Ritter said.  That's good news for housing, but we haven't seen that translate to much sales activity in the last month.  Not surprising though given the time of year, the holidays being traditionally slow for home sales in our area.  The true test will be to see if activity picks up in the February-March-April time frame.

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 December 1 through December 15, 2010 here are the numbers:

•132 properties sold
•Price range of properties sold during this period: $72,000 - $2,290,000
•Median price: $320,500
•Average price: $389,800

•$0-199k = 31 sold this period
•$200-299K = 28 sold
•$300-399k = 25 sold
•$400-499k = 24 sold
•$500-599k = 11 sold
•$600-699k = 2 sold
•$700-799k = 3 sold
•$800-899k = 1 sold
•$900-999k = 1 sold
•$1.0-1.9M = 5 sold
•$2.0M+ = 1 sold

Top Ten Listings Sold during this period:

Information obtained from MLS and public record.

This period's Top Ten numbers reinforce a very cliche real estate phrase - "Location, Location, Location"!

When markets are bad, especially at the high end, the attributes of location and condition become even more important to the successful sale of a property, and should be carefully analyzed when it comes to pricing a property for the market. 

Properties in highly desireable locations will hold their value in a down market more so than in other areas.  Two examples of this are the properties on Marine and Highland in this week's list above, both with terrific downtown Boulder locations. This is not to say that the other areas listed, like White Hawk Ranch, the close-in mountains, and Lafayette are undesireable, far from it; they are just less so to some buyers than others. The home on Marine St. was priced appropriately and went under contract in a mere 32 days and garnered 99% of the asking price.  The property on Highland Ave. took quite a bit longer to sell - 595 days to contract - but the sellers netted 83.3% of their original asking price, which in this market is not bad for any property priced over $2 million. 

Additionally, these two homes have the highest price per square foot at $492/sq ft for Marine and $592/sq ft for Highland, when compared to other homes on the list.  Several of the other homes have argueably more luxury features, larger lots, and are considerably more spacious yet yielded much lower $/sq ft.  Consider the home on Bitterroot Circle for example - same selling price as Marine, but at $227/sq ft.  The luxury home out in White Hawk Ranch sold for a mere $310/sq ft. 
(using finished square feet above grade for comparison purposes) 

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, consider the location of your next purchase much more carefully with an eye on desireability, walkability and popularity.
• Also, if you have a home priced over $600,000 you can expect the market to continue to be quite slow for a while.  Homes under this threshhold are still selling quite well though!

Happy Holidays everyone! 

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

Boulder-Denver Economy, OUR Nation and YOUR Real Estate - Part II

Any good real estate agent or relocation professional should stay on top of their local economic news as well as the news at the national level, and at Colorado Landmark, Realtors that's just what we try to do every week.  As I said in my previous post, last week I had the privelege of attending the Rocky Mountain Relocation Council's Fall Conference held at the Arvada Center.  My previous post was about national economic news conveyed to us by an economist from Wells Fargo Bank.

The second speaker of the morning was Cheryl Meyn from Denver's The Genesis Group.  Cheryl has an extensive background in Denver area real estate and spoke to us about economy in Colorado and specifically the 7-County Denver Metro Area.  Here are a few highlights from her presentation:

• Real estate overall:  If you look at the statistics, theoretically the Denver area real estate market bottomed out last year in 2009. 
• Unemployment:  Hovering around 8%, Colorado's unemployment rate is one of the lower rates in the nation.  We are experiencing a lessening of job losses which is giving the area economy some stability, but unfortunately not much in the way of job growth yet.  We have lost a net 45,000 jobs in this recession (at one point it was as high as 52,000) and it could take 3 years to recover from that.  Our area unemployment rate is not expected to go under 7% until late 2011.
• Mortgages and foreclosures:  18-20% of Coloradans are underwater on their mortgages, compared to 25-30% nationally, however foreclosure activity for 2010 is 10% below 2009 levels.  70% of all of the area's foreclosure activity is in Adams, Arapahoe and Denver counties.
• Housing inventory:  We have 3 years inventory of properties over $1M.  Local home builders have shown incredible restraint and we have little to no new construction inventory which has helped our resale market significantly
• Home Prices:  We have actually experienced a 3.6% increase in price activity in the last year.
• Housing Demand:  Pent up demand in our area is growing as we are seeing our population and # of households grow.  From 2005-2010 it was predicted that we would see a growth in households of 75,459 but the actual figure is 80,909.  From 2010 to 2015 we will see 80,952 additional households in our area.  Owner occupancy has declined from 66.7% in 2005 to 60.9% today and we have the lowest vacancy rates since 1994. 

So, what's in Colorado's future?  Housing will stay flat in 2010 and might improve somewhat in 2011.  Resales, which were down 8% in 2010 will see a rebound in 2011.  There are signs of improvement on the foreclosure front, and in-migration continues to be strong, with people still moving to Colorado.   All you have to do is check in with the national news media once in a while to hear various Colorado communities earning accolades for one thing or another, so it's no wonder people want to relocate here!

For Boulder County, the employment numbers are quite optimistic.  The most current numbers from the Bureau of Labor Statistics (for August 2010) put the Boulder Metropolitan area's unemployment at 6.4%.  Broomfield County recorded a 7.1% unemployment level for August 2010, so closer to the state level of 8.0% recorded for September 2010.

On the other hand, foreclosure activity is definitely catching up with our area.  According to RealtyTrac foreclosure filings in Boulder County were up in Sept 2010 with 234 filings, the highest number in 12 months.  The highest numbers were in Louisville (75) and Longmont (67).  Month-over-month price appreciation levelled out at 0.0%.  Only 29 foreclosure properties actually SOLD in Sept 2010 though.  Foreclosure activity is expected to rise, while the # of pre-foreclosure properties rose significantly last month from the single digits to over 60 properties.  The majority of the foreclosures are in the $100-300k range.  The foreclosures in our area don't necessarily translate to huge price savings for buyers -  10% in most of the county, with 20% in Longmont.

Broomfield County saw 52 new foreclosures in Sept 2010 and actiity is also expected to rise there.  Only 10 foreclosure properties actually SOLD in Sept 2010 though.  As in Boulder County, month-over-month price appreciation levelled out at 0.0%.  The majority of the foreclosures are also in the $100-300k range.

Pam Metzger
Director of Relocation, Business Development and Finance
Colorado Landmark, Realtors
www.facebook.com/COLandmark
www.twitter.com/COLandmark 
www.facebook.com/365ThingsBoulder

The Boulder-Denver Economy, OUR Nation and YOUR Real Estate - Part I

Any good real estate agent or relocation professional should stay on top of national economic news as well as news at their local area, and at Colorado Landmark, Realtors that's just what we try to do every week.  Last week I had the privelege of attending the Rocky Mountain Relocation Council's Fall Conference held at the Arvada Center. 

The first guest speaker was Dr. Scott Anderson PhD, Senior Economist at Wells Fargo Bank, based in Minneapolis.  His words about the state of our nation's economy and what that means for real estate on a national level didn't exactly bring smiles and fist-pumping enthusiasm to the room of about 75 real estate, mortgage, and mobility professionals.  A few brief highlights from his speech:

• The housing market will continue to underwhelm in the foreseeable future
• We are enduring one of the worst recessions since the Great Depression
• Overall loss of wealth during this 2.5 year period is $17 trillion, representing 20 years worth of savings
• 14% of mortgage holders are not making their payments
• The Chicago Mercantile Exchange is predicting national declines of 5% in housing prices
• The pipeline of foreclosure properties is still filling
• We currently have the highest federal deficit since World War II
• A national sales tax could be coming, as well as cut backs in Social Security

And that was the good news ... just kidding!  There really WAS some good news, but the question is, is that news good enough to sustain our economy going forward?  That remains to be seen.  Some positive notes from his speech:

• Corporate profits always lead job growth ... and they are now above pre-recession levels
• In Q2 2010 business spending grew 25%, which is not sustainable, but some measure of double-digit growth IS
• 1.5-2.5% growth in the national economy is predicted for 2011; when this number goes over 3% it will be enough to have a meaningful impact unemployment

Stay tuned - later today or tomorrow we'll post some notes from the other conference speaker, Cheryl Meyn from Denver's The Genesis Group who gave detailed economic info on our 7-county Denver Metro Area.

Pam Metzger Director of Relocation, Business Development and Finance
Colorado Landmark, Realtors
www.facebook.com/COLandmark
www.twitter.com/COLandmark 
www.facebook.com/365ThingsBoulder

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

Top Ten Sales - Boulder/Broomfield Counties - Aug 22-28, 2010

There is volatility in the real estate market right now, and an abundance of conflicting news reports and statistics that may be 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, periodically we are highlighting the week's real estate actvity in Boulder and Broomfield Counties, to let you know what is selling, at what prices, and how long these properties are taking to sell.

For the week of August 22-28, 2010 here are the numbers:

• 81 properties sold
• Price range of properties sold during this period: $89,500 - $2,495,000
• Median price: $290,000
• Average price: $432,480
• $0-199k = 19 sold this week
• $200-299K = 21 sold
• $300-399k = 12 sold
• $40-499k = 9 sold
• $500-599k = 5 sold
• $600-699k = 5 sold
• $700-799k = 1 sold
• $800-899k = 0 sold
• $900-999k = 2 sold
• $1.0-1.9M = 4 sold
• $2.0M+ = 2 sold

Top Ten Listings Sold during this period:

Information obtained from MLS and public record.





The message this week is pretty obvious - if your home is priced over $1 million and not priced correctly for the market, it is going to take a REALLY long time to sell!  The average days on market (DOM) for homes in this category for this week is 596 days, with 565 days to offer.  That is astounding in itself, but what is even more astounding are the drastic price reductions off of original list price.

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 30% all the way up to 61% off original list price.  If that is not a call to action for sellers, I don't know what is!!

There is only one way to make sure that your luxury home doesn't take 600 days to sell and that is by employing what is called Price Positioning.  Take a look at other relevant active listings and price your home competitively as close to the bottom of that range as you can tolerate.  This plainly is not the time to be greedy.  Be the first home that a buyer in your home's category wants to look at.  If your price is compelling the buyer won't want to leave the house without making an offer for fear that someone else will buy it first.  Here's your takeaway for the week - Be THAT seller.

Pam Metzger
Director of Relocation and Business Development
Colorado Landmark, Realtors
303-443-3377
@pmcolorado
www.facebook.com/COLandmark

Musings on Pricing, Sellers and Housing – Boulder and Beyond, Part I

Back in the early 1990’s my husband and I tried to buy our first home in Southern California. That market was experiencing some challenges at the time, and we thought we would be able to swoop in, and snap up a great house with no money down using our VA loan. We made at least 4 low-ball offers without success. One home was offered at $215,000, we offered $185,000 and the seller countered back at … $215,000. His rationale? That was the price he “had” to get in order to make any money on the deal. Ultimately we weren’t successful in purchasing a home in SoCal. Good thing! Within a couple months my husband’s company offered him a transfer to Boulder, CO and we have happily been here ever since, and have indeed been homeowners.

But a few things from that time in our lives have stuck with me. One was an article I saw in the LA Times back then that lambasted sellers who have what they called a “gotta get” mentality. “I have to get $300k for my home, or I can’t buy my replacement home.” Or “I’ve got to get $450k for my home because, if I don’t, after my mortgage and transaction fees I won’t break even.” Or “I have got to get $275k for my home because that is what I paid for it 6 years ago.” Guess what sellers – WHO CARES??? As a buyer I could CARE LESS about your situation, what you owe, what you paid, and what YOU think your home is worth. As the home’s current owner, yours is the most biased opinion possible! What matters to me are MY housing needs, MY budget, and what your home is worth to ME.

Something else that stuck with me was a conversation we had with a friend of my parents, Dr. Alan Kreditor. At the time he was the Dean of the School Urban Planning and Development at the University of Southern California. Very Smart Guy. His wife Marcia was also the real estate agent assisting us in our home search. At a gathering one night we expressed frustrations about our home search – we were very concerned about resale and not paying too much, exasperated by unreasonable sellers, our inability to find the perfect deal. Time for the tough love. He said some things we will never forget.

Here they are, here are your take-aways from this post ... You can’t always look at a home purchase as a money-making venture. This is housing – this is where you will eat, sleep and dwell, with your family, pets, belongings, etc… When you quit looking for what you THINK is the perfect investment and start looking for a place to LIVE, you will find the right home. When you sell this property in the future maybe you will make money on the deal, maybe you won’t. You have to ask yourself … Did we enjoy living here? Was it affordable for us? Did it compliment our lifestyle? Did we feel safe here? Did we create lasting memories in this home? A profit on the deal is the icing on the cake. This is housing. Period.

Stay tuned for Part II and what my company and I are trying to do to ensure that our buyers housing needs are met, and that our sellers come to terms with current market dynamics.

I whole-heartedly welcome ANY and all comments on my musings! (Because of course that is what they are … MY musings. However Alan Kreditor is a really smart guy so take (my recollection of) his words for what they are worth, which is substantial, IMO.)

Pam Metzger
Director of Business Development and Relocation
@pmcolorado
pam@coloradolandmark.com
303-443-3377

Luxury Home Sales in Boulder May be Tough - Colorado Landmark Still Boulder's Luxury Leader, since 1977

While attending the Leading Real Estate Companies of the World conference in Las Vegas last week, I was asked to speak on a panel about The Luxury Portfolio Fine Property Collection, the Luxury marketing division of LeadingRE. I shared the benefits of being a member of this exclusive group - not every Leading RE member company is also a member of Luxury Portfolio.  In fact, Colorado Landmark, Realtors is the only Luxury Portfolio member company on the entrire Colorado Front Range!  This means that Colorado Landmark currently has exclusive access to all of Luxury Portfolio's myriad of marketing tools and resources for your luxury home.  I don't love public speaking - but it was easy to talk about the benefits of this affiliation that I feel so lucky to be a part of.

What this means for you as a seller is that we have complete and exclusive access to an entire incredible world of luxury real estate marketing resources and tactics at our fingertips. Our Luxury Portfolio affiliation is comprised of a network of individual independent real estate firms whose sales over $1M exceed those of every other luxury franchise in the world, including Christie's, Sotheby's, and Regents.

If you choose to list your luxury home with any of the incredible, experienced agents here at Colorado Landmark, Realtors, you are in effect listing your property with an entire worldwide network of independent luxury brokers. Your luxury listing will be placed on the award-winning and beautiful http://www.luxuryportfolio.com/ website which is viewed by users in over 200 countries per month in nine different languages. Your property listing is also automatically added to the Wall Street Journal’s real estate page on http://www.wsj.com/ and HGTV’s http://www.frontdoor.com/ . 

We have always been known as Boulder’s Luxury leader – for the past 35 years, Colorado Landmark has maintained a significant share of the luxury real estate transactions in Boulder and the surrounding areas.  In fact, in 2009 as a company Colorado Landmark sold over $43M in high end (over $800k) and luxury properties.  When compared to realtors at other local Boulder/Broomfield area companies, broker associates at Colorado Landmark sold more luxury properties per agent than any other brokerage in town! 

Let's be honest - the current economy has made things tough for home sellers, especially those with homes to sell in the upper echelons of the price spectrum.  And the tough times don't appear to be going away, and our area may even see a double dip in housing prices, which aren't expected to recover until perhaps 2013-2014.  So in a tough market why take a chance with selling your most important asset, your home?  If ever there was a time and situation to work with a trusted expert, this is it.  No other real estate company is better positioned than Colorado Landmark with the necessary connections, expertise, resources and experience to sell your luxury home.

Jennifer Fly

Broker Associate

Colorado Landmark, Realtors

(303) 443-3377

jenniferfly@coloradolandmark.com

Twitter: @jenflycolorado

Part 2 - State of the Real Estate Market in Boulder - Words for Home Sellers in Boulder County

This is Part II of a 3-part series. Stay tuned for Part II!

Part 2 - Mortgages, Prices and Interest Rates

While there is hope that the government's Making Home Affordable Program for loan modifications will help, the current numbers indicate that of the 3 million people that requested help in 2009 only 31,000 received permanent modifications. In short, at this time the program is doing little to stabilize home ownership.

While we don't want our clients and friends to panic and overreact, we do want to make sure that all of our Colorado Landmark listings are priced correctly for today's market. If you want or need to sell your home, waiting out the market is NOT the right strategy. Ken Hotard, senior vice president of the Boulder Area Realtor Association, thinks that the worst is likely over, but home sellers cannot expect a quick recovery. "Jobs are still a problem," he said. "Until we see job growth there will be no significant recover in the housing market." Phyllis Resnick, lead economist for the Center for Colorado's Economic Future, projects that unemployment in Boulder-Broomfield will hit 7.1% this year and "It's going to take us close to five years to recover," to pre-decline levels. Boulder Valley's high-end real estate market (homes priced over $1.0M) will continue to lag behind in 2010.

On January 8, 2010 the Wall Street Journal reported on the Fed's plan to stop buying mortgages by the end of March 2010. The article quoted Ronald Temple, portfolio manager at Lazard Asset Management, who sees mortgage rates rising by a percentage point when the Fed stops buying. A withdrawal of government support, combined with high unemployment and rising mortgage foreclosures, could push home prices down 20% he said. What does that mean for you as a homeowner? If you are waiting for the market to improve, don't hold your breath, unless you can hold it for about 4 years! Price your home to sell now, before home prices slide any further.

All this being said, real estate continues to be one of the best long term investments out performing the Dow, S & P, and the Nasdaq over the past 10 years. We are encouraging our clients to buy now before interest rates spike up, and do so quickly.

Stay tuned for Part III!

Part 1 - State of the Boulder Real Estate Market - Essential Words for Home Sellers in Boulder

This is Part I of a 3-part article. Stay tuned for the sequels!

Part I - INVENTORY

Colorado Landmark, Realtors is proud to approach 33 years in business in Boulder and Broomfield Counties, and we are filled with gratitude for the wonderful clients we have been fortunate to work with throughout the years. While our nation and our community faces many challenges, those of us who are fortunate to live in this area have many blessings to be thankful for.

We hope market conditions will improve over the coming months. Regardless of what happens we must make thoughtful decisions based on the way things are and what can be best projected for the future. If you are selling a home, Colorado Landmark's primary focus is to see that your property is sold in the next 120 days for the highest and best price. Locally in 2009 over 68% of properties in our area sold with a market time of 120 days or less. If your property has been on the market for more than 120 days you need to seriously visit the market activity and reconcile that with your pricing strategy. To wait and "test the market" almost always guarantees a lower sales price, longer time on the market, and fewer dollars in your pocket when you walk away from the closing table.

Inventory in Boulder and Broomfield Counties declined over the last 24 months by 11-20% depending on the area, yet we still have 6-7 months worth of active properties on the market as of today, and that is if NO new listings are added. According to historic trends, a market with 5-6 months of supply is considered a "normal" market where prices hold steady, while markets with 7-8 months of supply experience single digit depreciation. As of today Boulder and Broomfield Counties have 6.7 months of inventory on the market, meaning that our markets will be luck to show any small amount of appreciation this year. Prices will likely stay flat.

The bigger issue looming is the mountain of foreclosed properties that banks have held (7 million units across the US) that will be released to the market starting in the first half of 2010 that will put even more downward pressure on home prices. There is clear evidence of a contagion discount effect on neighborhood pricing trends due to the impact of nearby foreclosures. In Boulder and Broomfield Counties there are many bank-owned properties which have not hit the market yet.

George Feiger, chief executive officer of Contango Capital Advisors, expects housing prices in our area to continue to fall as more foreclosed homes come on the market. Foreclosures also should rise, he said, not only because of unemployment, but from strategic defaults - people walking away from mortgages that are deeply underwater.

Stay tuned later this week for Part II - Foreclosures and Mortgages!

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

News You Can Use - Tax Credit, Unemployment, Boulder Housing Market

If you read my blog you know that I will give you the straight scoop - no sales pitch or baloney here! If you dare, read on ....


As long anticipated, the House and Senate have both approved an extension to the homebuyers tax credit of 2009. The credit will now be extended to April 30, 2010. First time homebuyers will get a credit up to $8000 depending on income level, and veteran homebuyers who have been in their home for at least 5 years can receive up to $6500 depending on income level. The original tax credit was set to expire November 30th. Every realtor in the country is now going to be emailing their clients saying "now is the time!" Is it??


This IS good news for homebuyers who want to keep some cash in their pocket after their purchase. The other good news is that interest rates are still at near-record lows. I researched rates in Colorado today and for a $250-299k conventional loan with no points borrowers can get rates between 4.75-5.125% with varying fees. A jumbo in the $500-549k range will be at 4.875-6.4% with varying fees.


The bad news is that unemployment figures continue to be discouraging. At the national level CNN reports that we hit 10.2% in October 2009, the highest level reached since 1983 and indicating 22 straight months of declining employment. Worst case forecasts for the first two quarters of 2010 are in the 10.5% range. Among the hardest hit sector are teens ages 16-19 whose rate rocketed to 27.6% in October. Teens now have to compete with adults for jobs in industries like food service and retail, typically dominated by the teen demographic. Obama has signed a bill allowing the jobless to receive up to an additional 20 weeks of unemployment benefits which is sure to help out many households, even in our relatively stable and affluent Boulder area.


In Colorado we are hovering around a 7.0% unemployment rate. The state's unemployment figures for October will come out on November 20th. In our immediate area, for September 2009 Boulder County was at 5.5%, Broomfield County was at 6.6% and Weld County was at 7.5%. Some major area employers (IBM, Sun) have announced pending layoffs but it is unclear how many of them will come from our area. And of course our white knight Conoco Phillips is scheduled to bring jobs to our area but the initial build-out of 2012 is suspect, and could be pushed out by a couple years. That's a chicken we can't count until it hatches!


The term "jobless recovery" is being thrown about, but how our nation or our local economy can experience a real recovery without putting more people back to work is beyond me.


All that bad news being said, in Boulder (MLS sub-area 1) median home prices remain stable in the low-mid $500k range. Louisville (MLS sub-area 2) median home prices have jumped all over the place, ranging from $310-425k over the course of 2009 so far, coming in at $$324k in October. Longmont is steady in the low $200's. Superior is a robust market seeing median home prices range from $342k all the way up to $675k! Proximity to transportation, employment, open space, good schools, etc... continue to bolster the Louisville-Superior area's housing market.


So ... to buy or not to buy ... Speaking from purely my own opinion if you have some confidence about your employment situation and intend to stay in your house more than 2-3 years then this really IS the time to buy. And that's honestly not realtor-speak, because I am not one! The late fall-winter selling season typically gives buyers the least amount of inventory to look at, but the most negotiating power. The combination of the tax credit and crazy-low interest rates makes this a perfect storm for you (in a good way). If you have dreams of becoming a fix and flip artist though, think again. Probably too risky given that we don't know exactly where housing prices are going to go.


If you are a seller, consider putting your home, or keeping your home, on the market this winter. Yes, there are fewer buyers, but those in the market are serious. Relocation buyers (job transfers, life changes, etc...) are still out there too in addition to the local prospects. And your home will look so pretty decorated for the holidays! BUT (and there is always a "but") these buyers are going to be looking for a deal, if not a steal. If you want top dollar for your home then frankly don't list it. (And expect to wait until around 2014 to get your price! again, my opinion)



As a seller, if you have some room to negotiate and just want out, then price it fairly given it's condition, age, and location. Offer a buyer something for "free", like a view, or landscaping. How do you do this? Price it similar to a recently sold home or another currently listed home that perhaps didn't have your location backing to open space, or your soothing backyard pond. This way the buyer thinks they are getting a freebie. Let go of that "gotta get" mentality and the ego that compels you to want to get more than your neighbor did for their home. This is not time to worry about stuff like that. I have trained many of my agents on "price positioning" and we are seeing great results.


Stay tuned for more information and insights from Colorado Landmark, Realtors - your Boulder and Front Range experts.



Pam Metzger
Colorado Landmark, Realtors
pam@coloradolandmark.com
twitter = @pmcolorado

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