Latest trends in the Denver real estate market, new listings, stats, homes for sale, what to look for in a Realtor

As an actor, the most common question is “How do you memorize all those lines?” As a Realtor© it goes something like this… “How come your comps say my house is worth X when Zillow says Y? “
I’ll tell you why. Real estate websites have transformed the consumer experience when buying or selling, bringing to the public the listing and sales info that used to be private and difficult to get to. Some of this consumer info sharing has been good for all. A buyer, for example, can reduce our power-shopping trips by searching for homes that suit their needs, send a list of what they want to see and off we go. Well… after I double check the listing information, as much of it is out of date; homes sold but still listed as active, short sales if my client has a move in time frame, homes that have been on the market for a year… these get scratched from the shopping list. But for sellers it can be a different story.
These sites appeal to the savvy seller, empowered by access to the information provided, They try hard to do a lot of the work for you, grabbing recent sales, public record and homes listed in your neighborhood, then running them through a computer program and, in some cases, going so far as to create an estimated value on your property. Here’s where it gets tricky. Computer programs have no discernment.
I recently got on Zillow to double check one of my listings to make sure the information was correct. What I found was a massive error stating that according to public record the home had sold in 1997 for $150,000, a “fact” I cannot find anywhere. With a price point over $600,000, this is a costly mistake and one my sellers were understandably unhappy about. I’ve contacted them numerous times to correct, but so far nothing. I checked back yesterday and the website’s value of the property had gone up $17k in one week for no apparent reason. In my own neighborhood, Zillow has deemed my home worth nearly 40k less than what I can sell it for, largely due to a few foreclosures nearby, and this is happening all over the city.

A computer takes the description of your home from the public records, or from a recent listing, determines the number of bedrooms, bathrooms and square footage, and pulls out the closest homes to yours that have sold recently that have similar data on record. The computer can’t necessarily distinguish nuances in a property’s condition or aesthetics, nor does it always correct for whether the house two blocks over was a short sale or a foreclosure. Depending on where you live, how similar homes are to each other in your area, the level of sales activity near your home and the level of accuracy found in the public records for your house and nearby homes, these sites can offer very comparable “comps” — or comparables that aren’t really comparable at all. If you live in a fairly cookie-cutter subdivision where several homes just like yours have sold very recently, you’re likely to get a good set of comparables, and a value estimate that’s at least in the ballpark. But in many areas, lots of fairly common scenarios can come between you and a good comp/bad comp:

Your home is older and has had a lot of improvements and even additions that are not in the county records.
Homes in your area are very different from each other.
You live in a neighborhood very nearby another neighborhood where homes have a much higher or lower value than your area , say, because they belong in a better school district or even on the other side of the city limits.
Your home is in an area where homes are dense, the algorithm might jump over many very nearby properties to get to a relatively dissimilar one even a half-mile away, and that can give you bad comps.

The listings provided by the sites can be very useful for homeowners trying to stay on top of what homes around theirs are selling for — not listed for, but actually selling for. They are less useful, in my opinion, at placing values on properties; the sites that do this usually have their accuracy rates listed somewhere on the site, and I haven’t yet seen one that’s impressive.
But when it’s time to actually list your home, or figure out what it is worth, no computer — no algorithm — is as accurate as a living, breathing local real estate professional who sees and sells all the different specimens of homes in your neighborhood and sees firsthand what ready, willing, qualified buyers actually pay for them, day in and day out.
I think it’s important for sellers interviewing listing agents to discuss the online comparables with prospective listing agents, but not as a counterargument to what the listing agents recommends you list your home for. Rather, it’s a smart way to see some of what the agents know, and what you can learn about the other properties in your area. If you’d like a detailed estimate of home values in your neighborhood or a comparative market analysis of your home, give me a ring, I’d be glad to help.

The most important thing one can do in negotiations is to keep the conversation going. Simple in theory, but when emotions get involved it gets much more complicated. Take yesterday for example; buyer comes to seller with an incredibly low offer. Seller is already well priced, below average price per square foot for the area, is insulted, and rightly so. Sellers don’t even want to talk about a counter they are so mad, and so the door is closed, communication stops, conversation ends. Does anybody get what they want? No.
It is my firm belief and experiential understanding that all real estate transactions are essentially human transactions. But they are also business transactions. Balancing these two, sometimes contradictory, principles is what leads us successfully to the goal. Obviously buyers and sellers are emotionally invested, which is why hiring a good Realtor is your best investment. You need an advocate, and one who will objectively keep the dialogue running until there is 1.) A deal that works for both sides, or 2.) Nothing further that can be done to make it happen.
I know this seems like I’m stating the obvious, and when you’re only talking business it’s true. Once you factor in the human element, and the business is about a very personal product… like a home, that’s where things get sticky. Negotiations can be exhausting. For everyone. My best advise?
Keep Calm. Carry On.

Today an unusual thing happened, I received two offers on two different listings. That in itself would not be unusual in the Denver real estate market, but it’s what came with the offer I found odd and amusing. This morning, two emails hit my inbox. One was the offer, $110k below the list price, and the other was a letter from the potential buyer to the seller. This afternoon, the same thing happened: 20k under a list price that had a generous price reduction on Wednesday, and a lovely card to the seller. Now I am the queen of the hand-written note and I know it’s value, but in both of these instances it was as if the “I really love your house, we are the perfect buyers” missive was going to somehow cover the insulting offer. If you really love the house, you should pay what the house is worth. A letter that says in essence, “I found the house I love, now can you please give it to me?” does little to sway the seller away from his or her profits.
Buyers buy homes with their emotion first and practicality second, sellers are just the opposite. I know this is a sweeping generalization, but most of the time it holds true. A home is an emotional commodity and yes, most sellers would love to see their home go to that sweet young couple of lovebirds with the 20% down, the golden retriever and th 850 credit score. Chances are very good that the seller has had his own emotional roller coaster ride long before you set your showing. Ready to make that move, they’ve called their Realtor, had the listing appointment and swallowed hard when their agent told them what they could expect to sell their beautiful home for in today’s market. When they’ve lowered their price twice in 60 days, is it realistic to expect them to take another 20 or 100k off the top because you love their home? I’d love a new Mercedes for the price of my used Saab, too.
In short, be reasonable. Be fair. Don’t believe everything you read about the “Buyer’s Market”, assuming every home is on the clearance rack. And save your letters. We know you love the home and felt all warm and fuzzy when you walked into it, that’s what writing an offer means. Now write the offer that will match that value, and don’t expect the seller to pay for your dreams out of their retirement.

All this buzz about the end of days has got me thinking. First came the Absurdist humor Tweets and Facebook posts, followed by invitations to post-Rapture looting parties, (what to wear, what to wear?) and the folly that follows a good thread. But as I rise from my desk to continue the perpetual cycle of laundry, a new status update spins into my head. What if this actually happened? Not tomorrow, I’ve got plans, but maybe later in the week, say… Wednesday after Oprah’s final episode? I picture myself, turning off the television, slightly weepy, and crossing through the kitchen to the basement stairs. Wondering how the flies got in the house, I make a mental note to check the screens. The day is sunny; the rains have gone, and as I pass by the open backdoor I hear a croaking in the garden; a familiar sound of frogs who sang me through the summers of my youth. As I land at the bottom of the stairway I catch a glimpse of my teenage son on the basement couch. It’s well past noon and he’s still sleeping… at least I think he’s sleeping. Surely not the slaying of the first born, I think, and wait… there are no frogs in Denver. I cross to the couch, pass my hand by his open mouth to feel his breath and relieved I reroute to the laundry room.
I empty the dryer of its warm contents and bring them lovingly into folds as Apocalyptic thoughts tumble through my head. How different the world would be if the “Righteous” rose and left the rest behind. I imagine we’d reinstate Universal Healthcare to match the bloated need, which would be so much easier with the insurance lobbyists out of the way. Ditto for environmental causes. The real estate market would explode with vacancies, tipping the stagnant market to the buyer’s favor and foreclosures would drop: it’s hard to evict a zombie. Loans would be readily available with a plethora of bankers and mortgage brokers left, though interest rates might be hellish. I’m thinking the ranch style will be the dwelling of choice; writhing up a flight of stairs can be torture.
My thoughts turn inward. How would I feel if this really happened and how prepared am I to meet my maker? The spin cycle stops. I lift the lid and throw linens from their moist drum into the inferno of the dryer. I’d be okay I think, if the rest of my life is any indication: not the Valedictorian, but above average… top of the class perhaps.
Turning the washer dial 360°, the sound of the basin filling calms me. What the hell am I thinking? Of course you’d go to Heaven, Tracy. You’ll be there to greet the sinless mothers, Bounce sheets in one hand, box of Tide in the other: “Our Lady of Perpetual Laundry”. *smiles* Love can wash away a multitude of sins. Love and a can of Shout.

Home buyers are looking for that perfect space they can make their own. To many sellers, often on the advise of their Realtor, this means painting the whole house in shades of beige and removing anything that makes their home too “personal”. There have been times I’ve said the same to my clients, though I can count them on one hand. As a founder of the Thriving Artist Alliance, I focus my business on helping creative people build wealth through real estate. For some it means moving them from renters to homeowners, for others investing in real estate through purchasing fix-and-flip or rental property is a great strategy, and then there are those who long for a living space that allows for or inspires their creative pursuits. Because the Creative Class relates to the world and their place in it differently, I am rarely looking for or listing a “Beige Box”, it’s more likely I’m on the hunt for something special and unique. When the Smiths called me about listing their City Park bungalow at 3105 Elizabeth Street I arrived at our appointment with no idea what to expect. I took to this house (and to the Smiths) immediately and was blown away! The color pallet, artwork, furnishings and decor made me feel happy and instantly at home and I knew I was in the presence of two highly-gifted artists. Though art is not either of their professions, the artist touch has graced every corner of this home. Mrs. Smith is a part-time painter and Mr. Smith used his considerable craftsmanship on a basement finish that is warm and natural and very comfortable.
This home won’t appeal to everyone, and I’m sure we’ll get some “Why don’t they paint the whole thing neutral” feedback, but that’s okay. I’m not looking for that buyer. I’m looking for that special person, couple or family who understand that self-expression is high art and that individuality is paramount. Oh, and it’d be nice if they love the City Park Jazz concert series, because they’re close enough to walk or roll there every Sunday!