Real Estate & Relocation ^ Colorado

Where does Denver play golf?

Denver plays golf on any one of the 90+ golf courses located throughout the metro area.

Golf is a big attraction in Colorado, particularly in Denver. There are many places to choose from, both public and private.

Some homeowners prefer to purchase a home right on the golf course. This is definitely possible.  Other people feel being in a country club community is enough for them, they don't have to be, nor want to be exactly on the golf course.

As for me, I wouldn't mind living on a golf course, as long as my house wasn't located on a dog leg!  Been there, done that!  It might be an excellent way to never have to purchase  golf ball...players made sure to hit plenty into my yard, my house and even on my back porch. We actually had a huge trash can full of errant golf balls!

Sunday mornings were the worst. The golf balls hit the house like mortars, there was  no peace sleeping in that home!

Ah, but I digress...Denver residents have lots of choices when it comes to golf communities.  So many in fact, I have a spread sheet I use to help me remember all the golf course communities.  It helps my memory when I have a buyer who prefers to live close to a country club.

So if you are a golfer looking to purchase a home in a golf club community, that was a hint!  Do I need to say more?  :)

So many houses for sale so little time

House hunting is very intimidating when there are so many homes to choose from.  I've been working with a buyer, let's call her Mary.  Mary is moving to the Denver metro area and was very concerned about "finding the perfect home in the perfect neighborhood."  Mary's desires are very typical of just about everyone moving into a new home, particularly when they are relocating from a different part of the country.

When we first started working together, long before we actually met, Mary felt the only way she could ever feel comfortable about making a decision was to move here and rent a home for a few months. That way she could investigate all the areas, see all the homes that were available before ever committing to purchase one.

The rent now-buy later strategy is a very popular one.  Typically first time transferees find comfort in this plan, because they have never made such a major transition before.

However Mary, being an experienced mover, had relocated more than once. She was a savvy mover, but for some reason was letting the "bad press" about foreclosures in the Denver metro area get to her.

We talked on the phone on several occasions and I could feel Mary was being to feel more comfortable with the move and less comfortable with her plan of torture of making a double move.  Her dream was to be able to visit Denver for a few days or more and find the perfect house in the perfect neighborhood and make a door-to-door move when her home sold back east.

I agreed with Mary that this was the perfect situation and we should try to make her dream come true.  I assured her I would never push her to make a decision.  My part in her plan was to supply her with as much information about the potential areas as possible.  She would have time prior to the move to study her top priorities, which were good schools, a youngish neighborhood where children would have plenty of playmates and she really didn't want to travel more than 7 minutes to a grocery store.

No problem!

Mary scheduled a 4 day trip. She was still apprehensive about getting the job done in 4 days.  I knew by her description there were several areas that would fit the bill.

The first day out was the usual reality check.  Mary learned quickly what the Denver 'burbs had to offer. 

Day Two the whole plan came together beautifully. We were able to target 2 homes she would be perfectly happy in.

Just for grins on Day 3 we looked at the other competing  homes in Mary's favorite neighborhood.  We wanted to be sure we weren't missing The House.

On Day 3 we were finished looking and ready to write an offer.

As it turned out Day 4 was not necessary for house hunting, but Mary used it to visit the schools and the mall.

Mission accomplished!

The reality is we have 30,256 homes on the market in the Denver metro area (as of June 2007).  This is a combined number of both single family detached and attached homes.  The metro area is geographically huge, probably more than 40-50 miles in each direction. 

When you take that many homes, divided them up by price range, number of bedrooms and other criteria there may only be a total of 20-40 homes that fit a buyer's needs.

Once you start house hunting, it is important to continue the search at a pace to be able to make a decision before the home you like gets sold.  Stretching that decision over weeks or months only means you become a career looker.

Mary learned the best strategy is to push forward, learn quickly and make a decision in a timely fashion.  She will be making a door to door move.

And just for the books, Mary is delighted with her decision.

I love it when a plan comes together! :)

Help Me...I'm Lost and I can't find the right neighborhood!

Brave people who plan to  move to Denver occasionally figure they can fly in, rent a car and drive around until they find the right neighborhood.

Well, brave might not be the proper word, perhaps brave should be replaced with practical.  The plan certainly does seem to be practical.  I mean why bother a real estate broker when you don't really know which way to turn?

Driving the city and the 7 adjoining counties can't be that difficult now can it?

You bet it is!

Finding a place to live is so very important.  Locating the right neighborhood is much easier when you have someone with some background and experience in the price range of homes, age, style, schools and other amenities.

The truth is, real estate brokers who deal with relocation assignments work with people who arrive in the city having very little knowledge of the area.  More often than not our clients have never been to Denver or it's suburbs before! 

Is this a bother?  Absolutely not! Showing off our city to newcomers is  one of our favorite things to do!  When you love an area like I and my Group does, work becomes pleasure!  We love to help you make the right decision.

We help home buyers relocate:

• by providing area tours (whether you are just considering or have accepted the job transfer)
• showing a wide selection of areas based on YOUR needs not ours
• by suggesting alternatives that might fit your lifestyle (one size does NOT fit all!)
• by saving you time with providing relevant facts

Moving to Denver? Call us because we know the territory. Really!

Denver Real Estate ~ Predicting the future

Predicting the future is less difficult with having the benefit of past history.  Trends develop and a pattern is established providing clues. 

Clues to the future of real estate in Denver consist of the following:

• Colorado ranks 14th in the nation in employment growth - the national unemployment rate stands at 5.0%; Colorado's jobless rate is at 3.8%
• Colorado is experiencing growth in health care, mining, legal and engineering industries.
• Denver area transportation improvements are providing better job access
• Net migration to the Denver metro is increasing
• Housing inventory levels are decreasing (5.15% less than the same month last year)
• Home prices are increasing but at a conservative rate, the average for all residential (detached and condos) increased $15,000 since May of 2007.
• Interest rates are slightly less than last year this time.

Overall Denver the fundamentals are improving; better job market, low mortgage rates and higher household wealth. 

Metro Denver real estate trends are looking very positive.  Now is the time to invest in real estate.  Are you ready?

Minimum Expectations

A few years ago I was touring Vietnam on a bicycle.  One day I found it necessary to replace the batteries in my camera with fresh ones.

Finding such a rare extravagance in a small village was not easy.  Additionally I didn't speak the language, so I relied on my "show and tell" communication skills. Pulling out the old batteries I showed them to a self-proclaimed shopping helper, a young man who had attached himself to me for the moment. 

He understood my needs and immediately went off in search of fulfilling them.

After a passage of time, he returned with a wrapped package of Eveready Batteries. I was delighted! In just a few minutes I would be back shooting photos again.

My shopper's helper led me to the owner of the batteries, so I could finish the job of negotiating for their purchase. 

As with everything in the country, the negotiations took as long as the finding of the batteries.  We came to what I considered a fair price, I paid and left.

Never once during the negotiations did it occur to me to try the batteries to be sure the worked.  They were nicely wrapped in the original packaging, so I had the expectations that they would work.

I was wrong.

The batteries as pretty as they were, were old and dead.  I was screwed. The merchant who sold them to me was long gone.

Of course the money that exchanged hands probably meant far more to him than me. But it was the principle of the exchange. Perhaps he didn't know he sold me perfectly useless batteries, or maybe he did. I would never know.

I learned a cultural lesson that day. Assume nothing.

In the U.S. we call it "Buyer Beware."  We still make assumptions, but when buying a house for example we hire an inspector to come in and make sure the components of the house work.

We do have assumptions that certain parts of a home will work.  Particularly when that part of the home is advertised.

I sold a home recently that advertised a gas log fireplace.  Upon inspection, the inspector found out the gas part of the fireplace did not work. The sellers of the home didn't want to spend the money to fix it.

My buyer insisted the fireplace be repaired to work as advertised. She had the minimum expectation that what was advertised actually worked.

Buyers often have minimum expectations that the major parts of a home will be in good condition when they purchase a home.  If the condition is less than good, it needs to be disclosed.

My buyer won the negotiation on the working fireplace. She was right and the sellers finally did agree.

If everyone had the same minimum expectations my job as a real estate broker would be a lot easier.  Expectations are as numbered as there are people.  The only thing we as a group could agree on is...the sun does come up every morning.

<photo was taken on Manasquan Beach, N.J. © 2007 Kristal Kraft>

Not all toilet seats are created equal

New home construction continues to build in conveniences Grandma never had.

There was a time when Grandma looked forward to in-door plumbing as a new and modern convenience.  Fast forward conveniences today...

We now have toilet seats with Easy Close hinges. No more annoying slams of the toilet seat.  No more pinched fingers.

Of course Grandma isn't the only one who want s tranquility in the bathroom.  Every woman would appreciate a toilet lid that closes quietly.

I have one for sale!  In fact I have 5 of these lovely, quiet toilet  lids for sale, buy them and get a stately, brand new house to go along with them. $700,000.00

3135 Soaring Eagle Lane, Castle Rock, Colorado

What about a contingency?

Common questions I hear almost daily are those that come from people relocating to Denver from  other parts of the country.  Many housing markets are soft, the days on market numbers are increasing due to the lack of buyers.

Our job market in Denver is strong and getting stronger. Each day we have people trying to sell in another market and move here.  The hitch for so many home buyers is the inability to sell their homes.

Most people don't want to be stuck with two mortgages.  Heck most people can barely afford one mortgage much less two! Having a home in one city and a job in another causes enough stress. 

There are solutions.

• Get tough on price with the old home.  Reduce the price to make it more attractive than anything else on the market.
• Get a bridge loan
• Find a home where the owner will do a "rent back" until closing.  Some homeowners will do this if you sweeten the pot by putting down "non-refundable" earnest money.  That means if your home never closes, you lose your earnest  money.  If it does, you get to put the earnest money toward the closing costs on your new home.
• Rent your home in your old neighborhood until the market improves.  Things will get better over time.
• Consider buying less of a home on this end and moving again in a couple years when the other home has sold.   This way you can be settled and focus on the job.

Most home owners in the Denver metro market are not willing to accept an offer that is contingent upon another property selling, unless it is already under-contract.  Going into a deal that has no end in sight is not a good way to do business. 

But...

Most homeowners are willing to work with a contingency if the buyer's home has a buyer.  So when your home sells and is what we call "under-contract" waiting to close, you can go find a home and write an offer.  Be sure you specify in the contract the closing is "contingent upon the successful closing of your home that is currently under-contract."  This clause will protect you if by some sad chance your home fails to close.

Contingent offers are a way of life. They aren't a sure thing for either side, but with the proper actions they do become a sure thing and just another path to get to closing.   under-contract.

A few rotten apples...

Remember the famous saying, "A few rotten apples, spoils the bunch?"  Well the saying holds true for more than just apples.  In Colorado like much of the US, we have had our share of "predatory lenders." 

Predatory lenders are the bad actors who come out and tell people less than the whole truth and nothing but the truth.  They give loans to people who have no business getting a loan.

Yuck. They make me ill.

Now the Department of Regulatory Agencies, Division of Real Estate has issued a position statement on Tuesday, July 3rd with respect to House Bill Section 12-61-904.5 (1)(b) C.R.S., requires mortgage brokers to make a "reasonable inquiry" concerning the borrower's current and prospective income, existing debts and other obligations. The Division of Real Estate does not prohibit specific mortgage products or documentation types.  Rather, the Division views this provision as a responsibility of the mortgage broker to recommend appropriate products.  Mortgage brokers may only recommend appropriate products "after reasonable inquiry has been made in order to understand borrower's current and prospective financial status."

As a result most major investors, including GMAC, Wells Fargo and others, have translated that a "reasonable inquiry" cannot be determined on documentation types in which the borrower's income is omitted from the application. As of immediately there will no more "no stated income loans."  Additionally lenders are suspending funding of certain documentation types with buyers who are currently under contract.

How many contracts will fail?

No income loans are nothing new nor are they all bad.  There are good people who use no income loans who actually should be allowed to do so.  Thanks to the bad apples in the bunch the good will get thrown out with the bad.  Sellers who thought their homes were sold, will be finding out otherwise very soon.  Hopefully the buyers will be able to rewrite the loans and close as planned.

The legislature is acting in a response to years of abuse by bad mortgage brokers and  some irresponsible  borrowers.  Some were genuinely  wronged, but many knew exactly what they were doing. They cheated the system, now the  rest of us have to pay.

Bandaids are only good for scraped knees.

Colorado mortgage brokers will now have to register with the state in order to do business.  This registration is not a proficiency test, it's a background check.  Well that's good, we can eliminate the really bad apples with criminal records etc. but who's to say they actually know how to prepare a loan?  Do they subscribe to a code of ethics? Do they use reasonable skill and care protecting the borrower's personal information?

The next question is, "Will Mortgage Brokers be Responsible for Predicting the Future?"

Making a reasonable inquiry into a borrowers debts, obligations and income should be part of the process of preparing a loan to a borrow.  But I must ask the question, if this is now law, what if the mortgage officer makes a loan to a borrower that defaults?  Is this mortgage broker at fault too?  Can the borrowers come back and sue the mortgage broker for giving him the loan he asked for?  Somehow this just doesn't seem right.

The Bad Apples Change the System, we all lose.

So at the present moment there are honest buyers and sellers scrambling to keep a deal together.  There are honest, career-minded mortgage brokers considering changing a career because of the undue risk.  Then there are the bad apples out there rotting and smelling and going about their business as usual.

What is the solution?