Real Estate & Relocation ^ Colorado

Denver homeowners are you planning to sell your home?

Looking to Sell Your Home?

Homeowners contemplating selling a home in the Denver market can expect an average of 96 days on the market.  However it is important to know 36% of the homes coming on the market are selling within the first 30 days. 

Facts like these valid more than ever before the importance of having your home positioned and priced right on the market.  Homes that are selling stand out above the crowd in both price and condition.

I have found through my experience, a homeowner is better off taking a month to prepare a home for market then putting it on the market and trying to prepare for a showing.  With so many homes on the market and not enough buyers to go around, buyers are not interested in waiting for the home to be ready.  They move on.

By taking the time to make your home sparkle, you invest your time wisely. One month of prep could very easily translate into 30 days or less marketing time.  I can only speak for myself and those who have indicated to me, they prefer NOT to have to worry about showing a home every day for months on end!

Negotiation where to start...

So you have found the home you want. You and the spouse have both kicked the various "tires" to make sure there are no problems. The neighborhood looks terrific. The grocery story is within 5 minutes as is the school and Spot's veterinarian.

As each new fact falls into the "yes" column of the Ben Franklin list, you are more and more certain, this home is for you.

What comes next?

Finding the right home is just the beginning of the process.  Now we go back to my office to crunch the numbers.  We need to make an offer (most people don't pay full price) so where do we start?

The listing price on the home is typically the one the seller would like to get.  Sometimes the price is based on actually sold comparables in the neighborhood, sometimes it's a number pulled from a hat.

We want to know what the home should sell for, based on our OWN research, not someone else's! 

To do that, I look for sold comparables in the area that match the home as closely as possible.  This process is very much like the process a fee appraiser uses.  We look at style, age, condition and size.

Most neighborhoods and price ranges in the Denver metro area have sold comps that will give us a good idea of what the house should sell for.  I find most of the buyers I work with, get very good at recognizing value. We look at enough homes that by the time my buyer is ready to make an offer, they have a very strong feeling of confidence about the home's value.

Pulling up the facts on the computer validates our findings.

How much LESS can we offer?

The trickiest part of negotiation is the price a buyer wants to offer.  Many buyers hear about how bad the real estate market is and assume they are going to get tens of thousands off the price of a home.  This just simply is not true.

MetroList the MLS service covering the Denver metro area publishes statistics on "price to sale ratios".  These statistics are based on actual list prices and the amount the home ends up selling for.  My favorite list of stats is the Year to Date Summary by MLS Area.  This summary gives the percent of list to sale ratios on our MLS areas.

Consulting this list results in a better understanding of where to position your offer.  Obviously if the area you want to buy is showing a 98% list/sale ratio, offering 85% of the list price on a home will not fly.  In fact it may very well alienate the seller!

Let's face it, as a buyer you have no responsibility to "make the seller happy" but you also don't want to annoy  him to the  point of negotiating higher than he would have had you been more realistic! 

I see this scenario all the time.  Some people just have to "do it their way" and they end up making a mess of things.

Being reasonable, showing you have done your homework, providing proof that you are a well intentioned buyer (pre-approval letter and solid earnest money) will get a seller's attention every time.

Seller's like to know they are dealing with a real player, not a wishy-washy deal maker that might disappear into the sunset before closing.

Real Estate Blogs for the Consumer

Larry Cragin over at Real Estate Undressed reads  hundreds of blogs each day and compiles a  monthly list of his top favorites.

The nominations for June 2007 included some excellent reading:

1- David Porter is back to blogging: He writes: How to protect your mortgage practice from Credit Bureaus selling your client’s mortgage credit inquiry

2- Jessica Beganski: Real Real Estate In Connecticut writes:Six Things to Know About a Condo Complex Before You Buy

3- Kristal Kraft from Denver writes: Win-win wins: When negotiating a residential real estate contract, there are typically 4 items we “fight” over. Those are; 1) price 2) terms 3) possession 4) personal property.

4-  Bigger Pockets Writes: How Home Buyers Can Stop Real Estate Deals from Collapsing During an Inspection Period

5-  Brian Brady writes on Bloodhound Blog: On Title But Not On the Loan?

6-  Sparky in Puget Sound writes:Earnest Money: “Are You a ‘SERIOUS’ Real Estate Buyer?”

7-  Rhonda Porter writes on her blog “The Mortgage Porter” When an appraisal comes in low. and on Rain City Guide:What’s wrong with calling lenders for rates.

Thank you Larry Cragin for 1) including me in your list 2) helping to inform the consumer 3) Being a swell guy! (I don't care what Teresa's says! :) )

Metro Denver Home Sale Statistics - June 2007

The Berkshire Group tracks and reports the real estate statistics for the Denver Metro area, including Denver's average home price, absorption rate, days on market, percent in change of available inventory and median prices for both condos and single family residences.

June 2007

Metro Denver Prices:

 

Metro Denver Prices:

                                                                                                                                                       

Single Family Average Price: (Detached Dwelling)		June 2007	$334,833
		May 2007	$318,904
		June 2006	$335,111
Condo Average Price: (Attached Dwelling)		June 2007	$186,328
		May 2007	$183,896
		June 2006	$184,566
Combined Average Price:		June 2007	$304,055
		May 2007	$288,905
		June 2006	$303,573
Percent of Sales Price Change: from June 2006 to June 2007		Single Family:	-0.08%
		Condo:	0.95%
		Combined	0.16%
Total Combined Number of Homes for Sale:		June 2007	30,256
		May 2007	29,110
		June 2006	31,900
Percent of Change in Available Inventory: (June 2006 vs. June 2007)			-5.15%
Number of Combined Homes Sold this month		June 2007	5,129
vs. previous month		May 2007	5,081
vs. same month last year		June 2006	5,628
Average days on Market: (Combined Sales)		June 2007	96.90
		May 2007	102.44
		June 2006	95.66
Absorption Rate: (number of weeks necessary to sell current combined inventory at current rate of sales)		June 2007	25.56 weeks
		May 2007	24.83 weeks
		June 2006	24.56 weeks
Median Sold Price:Single Family		June 2007	$263,000
		May 2007	$251,155
		June 2006	$261,750
Condo		June 2007	$157,950
		May 2007	$155,000
		June 2006	$159,900

Proud to be an American

In Memorandum

Gary Palamara, 1950-2007

July 4, 2007

Today my friend and buddy from high school passed away.

Gary was a multi-talented person, an audio engineer, writer, photographer, father, husband and friend. He left a huge footprint in our hearts.  His kind and thoughtful ways will be remembered and missed.

How fitting to pass on our Nation's birthday. Gary was a patriot, he proudly served in the Air Force during the Vietnam War.  He showed his love for flight in the many photos taken of the Thunderbirds and anything just about anything that flies.

Gary's business as an audio engineer led him to work with an impressive list of celebraties.  He worked with Robert Redford, Mary Chapin Carpenter, Mick Jagger, Naomi Watts, Jack Black, Adrien Brody, Howard Cosell, General William Westmorland, Sammy Davis Jr. and Luciano Pavarotti to name a few.

"Sometimes I get to places just when God's ready to have somebody click the shutter."

Ansel Adams

Gary was a mentor to many, including myself. His photographs inspired me.  He knew his Canon inside and out. He always had time
to talk to me and teach me about photography and how a camera works.

Gary cared about people. He loved to build relationships, learn what people liked to do and how he could help.  He made an effort to make a difference and he did.

Rest in peace my friend, you are missed.

kk

Denver real estate market facts

• The number of homes available for sale in the Metro Denver area has declined steadily every month of 2007 as compared with the same months in 2006. (4.42% less in May)
• The average sales price for resale homes (including condos) increased in April and May of this year as compared to 2006The May sold price average for detached homes was $318,904T
• The median price in May of 2007 was $250 dollars higher than 2006 at $251,155.
• The number of homes sold in April and May of 2007 was greater than the same months last year.In May 5081 vs. 5010 in May 2006
• The 30 yr interest rate average in May was 6.26%, .34% less than May 2006, over 2% less than the same month in the year 2000.

Happy Trails into the clouds

Last week I spent a few days with some clients who are relocating from Florida.  We took time to look at neighborhoods in several counties.  We finished up the orientation tour in Evergreen, Denver's bedroom mountain community.  To my delight, I had a few hours before my next appointment so I decided to motor up Mount Evans, the majestic peak we all see from the plains of Denver.

Funny or perhaps ironic as it is, I've lived in Colorado for many years and have never been to the top of Mount Evans.  It is not that I haven't tried, in fact twice this year I've tried to get up.  Once I started too late in the day. By the time we arrived the park was closed.  Instead we hung out at Echo Lake Lodge, photographing the humming birds who entertain and feed there. So the trip was not a total loss.

The next attempt was thwarted because we too early in the season. The Park opens  Memorial Day weekend, not sooner!  Once again I satisfied myself with photos of those hard to focus hummingbirds!

My lucky day finally came last week.  The weather was in the high 90's in Denver, since I was already enjoying the cool temperatures of the mountains, the last thing I wanted to do was go down to that heat, so I headed for the clouds.

My travels that day were most rewarding, the view from the summit was worth the trip. Standing at 14,264 feet above sea level, I could see forever.  It felt like the top of the world.

Just when I thought I couldn't get any happier, a mountain goat walked over and posed for me.  He stood still, not like the hummingbirds.  He made my week. No, my month.

I love serendipitous days like this.