Useful information on buying or selling a home in the Denver market.

Tracy Shaffer
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Keep Calm, Carry On

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.

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Tracy Shaffer
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Buyer’s Market? May be, but you still have to play fair.

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.

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Tracy Shaffer
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Rapture Rhapsodic

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.

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Tracy Shaffer
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A Creative Space for Creative People

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!

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Tracy Shaffer

Thriving Artist Crib

An artist lives here and it shows. This is my new favorite house! Look for it this weekend when it comes on the market

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Tracy Shaffer
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Wealth-building for Real Estate Investors (or wannabes)

How do you get into the real estate investing game? One house at a time. Real estate investing, like the stock market, can be daunting for some, but the payoff is worth the learning curve. My client, Kevin, became a landlord in 2007 with the purchase of his first rental property, half of a duplex in the City Park neighborhood of Denver. With a $150,000 purchase price and some minor upgrades to suit his specifications, Kevin was able to create positive cash flow within a few months. Two years later, we looked for another property, scouring for a neighborhood where you could still find a bargain, yet prices were pitched to rise. We found a larger single family, bank-owned home between Park Hill and Stapleton and were able to close on it for $136,000. The rehab was more inclusive, but with Kevin’s skill and good taste he created a very desirable rental which drew a very happy tenant. More cash flow. Today, we closed on his third rental property, in the heart of Park Hill. The $107,000 purchase price gives you an idea of what the market has done over the past few years and why Kevin is a happily building wealth through real estate. With a low down-payment, a well-planned fix-up budget and great interest rate, Kevin will be putting a total of $1,000 a month in his pocket this summer from his three investment properties. When you add in the tax benefits and property appreciation that comes with buying now and holding a long-term investment, Kevin is coming out way ahead.
Buying rental property is a great way for creative people to build long-term, sustainable wealth. For Kevin, this is the perfect blend of creativity and commerce and we’ll be following his journey through the fix-up process. Do you think this might be a good path for you? Call, text or email me, I’d be glad to show you successful strategies for building wealth through real estate. Till then, THRIVE BABY!

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Tracy Shaffer
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Denver Townhome For Sale in Mayfair!

You’ll love the look and feel of this remodeled brick townhome in fabulous Mayfair! Situated on the corner it feels like a single family home. Keeping all of the 1945 charm, the updated kitchen has been opened up, offering a light and cheery feeling. Granite counters and handmade cabinets, stainless steel appliances, Viking stove, convection/microwave oven, hardwood floors, custom window coverings, designer paint~ it’s clean as a whistle! New windows, new bathroom fixtures and new vintage-style tile floor, patio with the option for private fencing and a strong HOA make this perfect for your first time home buyer! Great condo alternative and the best in the neighborhood. Call me for a showing, you really should take a look!

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Tracy Shaffer
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The Trouble With FSBO

THE TROUBLE WITH FSBO.

There are a million real estate stories in the Mile High City; this is one of them. The story you are about to read is true, the names have been changed to protect the innocent. This is a story of one girl’s nightmare. Me. I’m a REALTOR®. But I’ll try not to let that get in my way.

It was a hot summer in cool real estate market. The rolling boil of winter’s tax incentives had simmered into springtime and left the pot dry. Houses sat for weeks without a showing. Sweaty listing agents tied balloons to open house signs as potential buyers rolled by on fat-tired bicycles. My phone rang. It was the clients I’d put into a downtown duplex some years before; cute couple, new baby, good debt-to-income ratio and a spanking clean credit score. They were smart enough to see it was time for a move up, down to the bucolic suburbs. Interest rates hadn’t been this low since… well, ever.

We set out shopping, searching for nothing less than the dream home: that elusive slice of Americana where you know your neighbors, raise a family. And we found it, love at first sight, a bit like Bedford Falls but in Technicolor. The drawback? It was a FSBO. *bum-bum-bum-bummm*.

Now I’m a kind of do-it-yourself type dame, within reason. I don’t mind doing my nails or washing the dog but I have to draw the line at what I don’t know, like removing a kidney or my taxes. It’s not that I couldn’t do it if I had to, but it wouldn’t be in my best interest. Some folks get all DIY when it comes to selling a house, I mean, how hard could it be, ey? Stick a sign in the yard, a couple snapshots on the Internet, throw some poor schmuck a few clams for an MLS input, then sit back and watch that baby sell.

As my old pal, Joe Friday, once said, “Ah, sure, but just like every other foaming, rabid psycho in this city with a foolproof plan, you’ve forgotten you’re facing the single finest fighting force ever assembled.” REALTORS®
The problem here stemmed from a lack of access to accurate data. Zillow, Trulia and the CMA done by the affable agent who sent the Broncos schedule doesn’t give a true representation of home value. My hunch is that they took the range provided by the neighborhood expert, added 20 to it for ‘negotiation’ and called it a day. They missed the mark in this game of real estate pricing horseshoes. By 35k . When our offer came in at market value and the appraisal backed it up they went into a tailspin, losing sight of the larger goal of selling their house. Every part of the negotiation was tinged with bitterness as dates, deadlines, inspection items; things that are standard part of the deal became emotional and difficult because they had no neutral party working on their behalf. A house is an emotional commodity and real estate transactions are a fine balance of the human and the business transaction. A good Realtor is adept at holding the deal in balance, by being rational, informed and calm. Our high-centered sellers almost lost the sale numerous times because they lacked the two most important things in the real estate process: accurate information and an advocate. Without these things you’re left vulnerable. Very vulnerable. Just like performing that kidney transplant with a Swiss Army knife and a yard of dental floss. It seems like a good idea at the time, but then you realize how much you don’t know.

Statistics show that 81% of FSBOs sign with an agent within 30 days, at least the smart ones. Because not only do you reduce your headache and legal liability with a REALTOR®, you actually make more money. Have I made my point? So if you’re considering a move in this hairy market, do yourself a favor and call a Realtor®, hopefully me, and ask a few questions.

Oh, and that cute couple? They made it to the closing table alright and are happily ensconced in their beautiful new home.

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Tracy Shaffer
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The Trouble With FSBO

THE TROUBLE WITH FSBO.

There are a million real estate stories in the Mile High City; this is one of them. The story you are about to read is true, the names have been changed to protect the innocent. This is a story of one girl’s nightmare. Me. I’m a REALTOR®. But I’ll try not to let that get in my way.

It was a hot summer in cool real estate market. The rolling boil of winter’s tax incentives had simmered into springtime and left the pot dry. Houses sat for weeks without a showing. Sweaty listing agents tied balloons to open house signs as potential buyers rolled by on fat-tired bicycles. My phone rang. It was the clients I’d put into a downtown duplex some years before; cute couple, new baby, good debt-to-income ratio and a spanking clean credit score. They were smart enough to see it was time for a move up, down to the bucolic suburbs. Interest rates hadn’t been this low since… well, ever.

We set out shopping, searching for nothing less than the dream home: that elusive slice of Americana where you know your neighbors, raise a family. And we found it, love at first sight, a bit like Bedford Falls but in Technicolor. The drawback? It was a FSBO. *bum-bum-bum-bummm*.

Now I’m a kind of do-it-yourself type dame, within reason. I don’t mind doing my nails or washing the dog but I have to draw the line at what I don’t know, like removing a kidney or my taxes. It’s not that I couldn’t do it if I had to, but it wouldn’t be in my best interest. Some folks get all DIY when it comes to selling a house, I mean, how hard could it be, ey? Stick a sign in the yard, a couple snapshots on the Internet, throw some poor schmuck a few clams for an MLS input, then sit back and watch that baby sell.

As my old pal, Joe Friday, once said, “Ah, sure, but just like every other foaming, rabid psycho in this city with a foolproof plan, you’ve forgotten you’re facing the single finest fighting force ever assembled.” REALTORS®

The problem here stemmed from a lack of access to accurate data. Zillow, Trulia and the CMA done by the affable agent who sent the Broncos schedule doesn’t give a true representation of home value. My hunch is that they took the range provided by the neighborhood expert, added 20 to it for ‘negotiation’ and called it a day. They missed the mark in this game of real estate pricing horseshoes. By 35k . When our offer came in at market value and the appraisal backed it up, they went into a tailspin. See, they lacked the two most important things in the real estate process: accurate information and an advocate. Without those two things you’re left vulnerable. Very vulnerable. Just like performing that kidney transplant with a Swiss Army knife and a yard of dental floss, it seems like a good idea at the time, but then you get in there and realize how much you don’t know.

Statistics show that 81% of FSBOs sign with an agent within 30 days, at least the smart ones. Because not only do you reduce your headache and legal liability with a REALTOR®, you actually make more money. Have I made my point? So if you’re considering a move in this hairy market, do yourself a favor and call a Realtor®, hopefully me, and ask a few questions. Just stay away from ones like “Ma’am, what is the approximate dry weight of the average Madagascan fruit tree bat” … ah that Joe Friday.

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Tracy Shaffer
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Getting Realer

If this summer finds you  in or on the real estate market the two most important things you will need are a smart real estate agent and healthy dose of reality.  Sure the virtual tour and snappy flyer are pretty, but the market isn’t. Finding a ‘smart agent’ may not mean the guy who’s sent you Broncos schedules and sold your cul-de-sac for the past twenty years, or the bubble-headed blond on the bus bench. I’d rather you go with someone who has a keen sense of where the market is TODAY, not yesterday. Though our trending info charts and graphs show market improvement, no one knows  for certain where we’ll be next year. The agent who offers “certainty” is tap dancing.

With more than 80% of buyers beginning the home search on the Internet prior to contacting an agent, consumers no longer rely on Realtors to provide them with all the information, we now co-create the experience.

Buyers and sellers both benefit by seeking out an agent who can effectively gather and interpret all available information to define the goals and strategies before and during the transaction.  Being a good real estate agent is part instinct, part industry and finding one who does it as a full time job is a good sign they know the realities of today’s market. The key is to have an agent who is not afraid to tell you the truth.

Consider these examples of three areas where a reality check would be helpful.

1.) PROFIT.  A high-end home in one of Denver’s most desirable locations. The sellers have improved it considerably and have lived there long enough to have built some hefty equity.  Ideally they’d like to turn a nice profit and take advantage of the value available in the middle of the market to purchase a larger house in a more modest neighborhood. The problem here is that their beautiful home is sitting in line in the million dollar price point where the inventory is stockpiled to 365+ days on market with fewer banks approving  jumbo loans (over $417k). Experienced ‘flippers’ , they are not novice to the real estate transaction, so it seems logical to apply the strategies they’ve always used to sell their flips. Savvy as they are, it would be more effective to spend a bit of that equity and hire an agent with the skills and resources to reach the broadest pool of potential buyers increasing their ability to compete in a glutted market. Will they sell? Eventually. Will they get top dollar? Statistics say probably not. Will they achieve the desired outcome in the allotted time frame? Well, school starts in August…

2.) PRICE. Seller wants to sell a suburban home. Their segment of the market would be considered a balanced market with only five months of inventory, but even with its unique features the house needs some upgrades and is not selling. Though the home feels too big for the family and they’d like to move into a more manageable townhouse, there is little likelihood they’ll reach their goal if they don’t get real about the price. Here is where a realistic Realtor tells the tricky truth: A house is not a product, like a hamburger, so marketing alone will not sell it. Your house is an emotional commodity. It is worth what a buyer is willing to pay for it, not what you’d like to net. Harsh as it is, if you need more down on your new place, you’ll have to figure it out. Improved the property and trying to cover the cost? Forget about it. Stop living in your own personal snow globe and put yourself in a buyer’s shoes. Would you pay more because it’s what the seller needs? No, you’ll either keep shopping for the bargain you feel good about, or pay more for the neighbor’s house with the upgrades already in place.

3.) PRESSURE. As missed mortgage payments stack up, so does the stress. You’ve done all you can to keep up, postponed the pit a year ago with a loan modification but it’s still too much. You hire a knowledgeable agent who is able to convey your options and the pros/cons of each strategy and you decide on pursuing a short sale. Experience and market chops tell your perspicacious agent that there’s not another house in the neighborhood like yours and she’s right. Within a week four offers come in, forcing a bidding war on a ‘highest and best offer’ deadline. She gets more than she asks for, but the bank is further along in the foreclosure process than you realized. Reality bites. Better the sting of the short sale than the heartache of foreclosure, but time must be on your side.

The housing market always has a bit of the “smoke and mirrors” to it (not to be confused with a house with smoked mirrors). Sorting through opinion, sales tactics, experts and statistics to glean the facts can be a daunting task for the smart consumer and agent alike. Research is only as good as the information you come up with and strategies are often based on information. Try to make sure you do your work and find someone  willing to do theirs as well, and don’t replace the real estate bubble with a real estate Bubble-head.



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