New listing in Denvers HOT, HOT, HOT WHITTIER neighborhood! Close to everything, the block is on fire with homes going in the 500s, this half-duplex has recent comps above 200. The perfect solution for the renter who wants to build equity or those who want an alternative to condo living with a sweet little back yard for your tomatoes or your ‘doodle’. 2438 Gilpin will be open Saturday 12-4.
After you’ve finished your holiday shopping, why don’t we go look for a house?
Winter home buying has its challenges, but winter can be the perfect time to buy a home. As we head toward the snowy months, serious shoppers know their winter home buying power is increased by determination and AWD. Housing market prediction for 2014 is looking good and buying a home this winter might just be the ultimate stocking stuffer.I love me those cold weather clients!
Most people think of buying or selling their homes in the ‘high’ season, and while the balmy days of spring and summer are perfect for cruising open houses and power shopping, they also bring the crowds. In 2013 we saw a big bump in the Denver housing market:lots of buyer activity and low inventory meant happy sellers and buyers who were frustrated by the return of the multiple offer. Even when the market was down the notion that summer is the best time to buy/sell your house is one that is hard to break. After spring break, sellers prepare to list the moment the last school bell rings pushing inventory up and in the seller’s minds prices too. Many of these listings are sellers who want to test the waters, plant a For Sale sign in their yard along with the annuals and see if they get the price they want. But this supply side increase often works in the buyers’ favor or frustrates them when the fair-weather seller lacks the motivation to agree on a fair price. Sellers feel the same when sunny day buyers, indulging in some fantasy house hunting, create lots of traffic and little else.
Cold weather buyers and sellers are serious.
The real estate market is driven by many factors but the first and most enduring one is CHANGE. One of the most enduring reasons people buy or sell a home is because their lives are in transition. Though many plan their home sale or purchase, life happens without regard to season or convenience. Families change, jobs are gained, lost or relocated, promotions happen, marriage, divorce, birth and death– all create someone with a housing need.
Shopping or selling in a Denver winter are obvious– driving in show, slipping on ice, shoveling the walkway, taking your boots on and off so you don’t track sludge into the house, fewer showings– but the buyers are BUYERS and not just lookers. Winter sellers are ready and willing to make a move, and tend to price accordingly from the start. The slower season also means that lenders, title companies and appraisers are not so swamped, smoothing out the process and lowering emotion. And of course, there are fewer people submitting offers on your dream home.
As savvy shoppers know, the post-holiday season comes with plenty of opportunities for a bargain and that includes houses as well. Though we in Denver are beyond the clearance sale in our housing market, home prices are on the rise giving sellers more leverage as well.
Enjoy the holidays, spend time with your loved ones, take a spin around town and take in the lights. Then call me when you’ve got the ornaments put away and we’ll get the ball rolling.
How would it affect you if you could no longer write off the interest you pay on your mortgage?
According to panelists at Friday’s housing forum hosted by Zillow and the University of Southern California’s Lusk Center for Real Estate:
The burgeoning federal debt makes it unlikely that the mortgage interest tax deduction will survive in its present form. Of course, any proposed changes to the tax break for homeowners will spark a fierce debate over the fundamentals of the U.S. housing market, the value of home ownership, and consumer behavior.
“Fierce debate” he says? I’d call it a jobs-killer! But then again, I’m in real estate. Change is never easy, but when it hits our pocketbooks and the government, it really hits home. I advise my clients to educate themselves, talk to their tax professional and view the tax benefits icing on the cake. Knowing the long-term financial upside leaves them feeling good and more secure as they move forward with their biggest single purchase.
“I think it’s entirely likely that something big is going to happen (with the MID) starting next year with either administration,” said Jason Gold, director and senior fellow at the Washington, D.C.-based Progressive Policy Institute, an independent think tank.
A Congressional contingent advocates for the elimination of the mortgage interest deduction to help address the nation’s debt and budget deficit. Obviously things must be done to right the problem, but sticking it to a Middle Class whose beginning to feel the effects of a post-crisis housing market recovery seems a bit harsh. At the end of this year, a series of tax increases and spending cuts are scheduled to go into effect automatically unless Congress acts to prevent or alter them. Revamping the mortgage interest deduction is on the table as a way to head off that “fiscal cliff” scenario. (I wonder how many of those guys have a mortgage.)
Two years ago, a bipartisan deficit reduction commission recommended scaling back the mortgage interest deduction, which is currently capped at mortgages worth up to $1 million for both principal and second homes and home equity debt up to $100,000 and the deduction is only for taxpayers who itemize.
The Simpson-Bowles commission proposed turning the deduction into a 12 percent non-refundable tax credit available to all taxpayers, capping eligibility to mortgages worth up to $500,000, and eliminating the deduction on interest from second homes and home equity debt.
Though that seems more reasonable to me than the first idea, the National Association of Realtors has consistently defended the mortgage interest deduction in its current form.
Highly critical of the recommendation and claiming any changes to the MID could depreciate home prices by up to 15 percent, they are promising to “remain vigilant in opposing any plan that modifies or excludes the deductibility of mortgage interest.”
So… we’re back to whose going to pay down the debt? And how.
The MID is a “tax expenditure,” meaning its cost must either be made up through higher taxes elsewhere or by adding to the debt, and it costs the government about $90 billion a year. Richard Green, the director of the USC Lusk Center for Real Estate, told forum attendees that reforming the MID is necessary for fiscal sustainability. “We need to get revenue,” Green said. “You need to make a judgment about what’s better or worse for the economy. In my opinion, it’s better to do it with tax expenditures, rather than rates, though you may have to do both to get to where we need to be.”
Because mortgage interest rates are currently so low, he added, “This may be an opportunity to do less damage by reforming the mortgage interest deduction than at other times.”
(I wonder what cuts would make this guy feel the pinch.)
The mortgage interest deduction is particularly polarizing because of the disconnect between how people use it and how it is perceived. Green gave the example of Texas where most people do not itemize their taxes (only about 30% of taxpayers do) so they cannot take advantage of the MID. This line of thought perplexes me. So… if more Texans itemized their taxes it would make things fairer? or does he mean that if they actually knew they could they would, adding to the deficit? And haven’t Texans done enough of that? 😉
No matter how the chad falls in the next three weeks, watch for ongoing and loud debates over the Mortgage Interest Deduction. *covers ears*
Source: Inman News, Andrea V. Brambila, Monday October 15, 2012
I am (where real estate is involved) lucky in love. I’m not talking about the beach house I got in the last divorce *winks* but how often I find Cupid at the closing table. It takes work to find a house with everything on your buyers’ wish list, but it’s nothing short of kismet when the brother and sister selling their father’s home meet the mother and the two kids who’ll soon be hanging out in the tree house their father built. Every home has a tale to tell, and when that love story moves from one chapter to the next as gracefully as a Jane Hamilton novel, you know you’ve made a “love connection”.
Manufacturing love stories between buyers and sellers… that can be a tricky matter.
Perhaps it’s the rise of social media, where everything is suddenly shared, or the result of Denver’s revived real estate market where the multiple-offer situation has made a comeback, but the latest accessory to go with an offer is not an earnest money check, it’s… The Love Letter.
I had a few of these cross my desk when the market was struggling. Sellers, desperate to sell and worn down by the reality of their diminished property values, were thrilled to hear those four little words, “We have an offer”. Until the contract hit my inbox, followed by a “We really, really love you house, we just don’t want to pay much for it” letter, which usually left a sour taste in and brought a few choice words out of the sellers’ mouths. I’d say it was the real estate equivalent of Fifty Shades of Grey; lousy writing and you know someone’s about to get screwed.
Enter the hero. The market shifted, and so did the tone of this tome. With multiple offers a common occurrence, buyers (or their agents) believe if they add a bit of folksy insight into who they are— Their years in Seminary, how he fell in love with the garage, she with the garden and how the shed is perfect for their chickens— that flattery will give them an edge.
Now everybody’s got a gimmick, I get that. The homeless bear signs—“Homeless Vet” “Dog-lover”, “God Bless” (complete with Ichthus), or “Will Work for Beer” aiming at their niche market, their tribe. Buyers try and create some commonality with the stranger who currently occupies their dream home, or perhaps they’ve lost the past three offers and are looking for something other than raising their price to cinch the deal. Call me old fashioned, but isn’t that the Realtor’s job? I consider it my job— make that my sacred duty— to not only find my clients the right house, but to put together a fair and decent offer and present it to the seller’s agent, along with a persuasive argument on behalf of my buyer. That is the opening move in a strong negotiation. If I’m worth my salt, of course my clients will be over-the-moon with excitement at finding their dream home, but once we bring the personal into an already emotional business transaction, I fear the salt/wound proximity increases.
This idea of including a buyer’s note is circling around my office like a chain letter, and I don’t care if the world will end in ten days or killer bees will take over the Volvo, I’m here to break it. There are plenty of opportunities for good real estate agents to share your passion and exchange drawings of the chicken coop. To a seller the passion you feel is reflected, not through an effusive statement that your Goldens must have come from the same litter, but by strength of your offer.
…with all due respect to the Staples Singers
You’ve found the perfect house! Redone tip-to-toe! That kitchen with the gleaming stainless and the leathered granite is perfect, the master suite, divine, and the water feature will provide a soothing soundtrack for starlit summer nights on the back patio. It’s your dream house… until you see the Inspection Report.
Part “honey-do” list, part diagnosis, a home inspection is the best way to make sure your dream house isn’t a nightmare with a fresh coat of paint. No one wants to shell out $300-$600 to have someone crawl up in the attic and scope your sewer line, but believe me it may be the best money you spend in your home-buying (or selling) process. Last week, I thought for sure we’d fall out of contract once I delivered the Inspection Objection—it was the BIG LIST, and it had to be done by the seller if my buyer was going to go through with the purchase.
1. New roof
2. Sewer line offset repaired
3. Radon mitigation system installed
4. Electrical work on aluminum wiring
5. We overlooked the aging water heater.
So… now you know. What’s next? She had beaten the competing offers so she was paying a fair price, market value, certainly no bargain. With little room for $15-20k worth of repairs, especially on items which are considered “health and safety” issues, which can hold up the loan if left unattended, the buyer has some decisions to make. And I have some questions to ask, the one that tops the list…
Whose problem is it?
Thinking we might be at risk of losing the house, I sat with my client over coffee and asked her how she felt about all of this.
1. Do you love this house enough to stay in the deal?
2. Are you willing to do the work yourself?
3. What on this list is most important to you?
We worked our way through her options, she made her decisions, and I sent over the “final four” on our list of objections to the listing agent. “Do you think they’ll go for it?” my buyer asked, uncertain. “We know what you want, all we can do is ask“ (And I love the ask).
If a seller is motivated, your requests are not unreasonable, and the agents are good at what they do, chances are you can find a solution that suits all. In our case, that’s just what happened, but it ain’t always the case. So… how do you avoid the less harmonious outcome to this situation?
Sellers usually have a pretty good idea about what is wrong with their homes. The problem is they are used to living with that squeak in the floor, the drip in the downstairs bathroom and that little flicker in the dining room light fixture when the kids are on the computer. Many times, they’ll spend time and money preparing to put their house on the market, only to find a slew of hidden problems upon the Buyer’s inspection and a bucket of resentment along with them. It might be a good idea to have a home inspection BEFORE you list your property; that way, you’re able to make pre-market repairs or price accordingly if you choose not to. Buyers write offers based upon their emotional response to a home, but they walk away from contracts based upon practical matters. Chances are, they’ll feel better about a coat of paint or buying a new refrigerator than installing a radon system or a sewer repair. For Sellers, it’s “Be Prepared” and for Buyers “Beware”. In either case you will forget about the $300 check soon enough, but there will be that night at 2 a.m. when you’ll remember the mold report and wonder if it’s growing in your drywall… and if your buyer’s going to find it.
It took Dr. Richard Alpert, Timothy Leary and countless hits of LSD to learn one simple truth: Be Here Now. So what can the psychologist-turned-spiritual guru, Baba Ram Dass, teach you about today’s Denver real estate market? BUY. HERE. NOW.
With nary a trace of mind-altering substance in sight, I can honestly tell you that the time to list your home for sale in the Denver metro area is NOW.
“How now” you say?
• Because EVERYONE else IS WAITING until spring.
• Because buyers ARE out looking.
• Because SHOWINGS ARE UP and inventory is down.
• Because all FOUR OFFERS I wrote in January created a BIDDING WAR.
Now, we all know war is not the answer but in real estate, a competitive market results in sellers driving their purchase price above their asking price. At this point (Jan/Feb, so I’m being here this quarter) the demand exceeds supply and buyers are flying out to snatch up well-priced properties like savvy shoppers after Christmas at Filene’s Basement. There is simply not enough out there. And I’m not just talking of the under-$200-first-time-buyer/investor end of the market. A home priced at or around $300k is likely to move well, despite the common seasonal perception, the Super Bowl or the weather. On Friday, as constant snow flurries were rapidly accumulating inches, agents were rushing out to show homes in order to present their offer s before the “Highest & Best” deadline. (I know this, I was one of them.) Today I submitted an offer for a buyer on a property, sight unseen. The home fit his criterion and he’d been beaten out three other times, so today we take no prisoners.
If you are sitting on the sidelines, waiting for the winter storm to pass before you list your house, remember… you could be pushing up daisies before the crocus pushes through the frosty ground. Now, I don’t mean that in the literal sense of the metaphor, but in the BE HERE NOW spirit.
If you’d like more information on the value of your house, trends in your neighborhood, or a yoga class near you, send me a vibe, a text or find me on Facebook. As the guru said…“We’re all just walking each other home.”
― Ram Dass
Recently I got a call from a gal I’d worked with on One Book, One Denver. “I’m getting married, relocating, and I need to sell my condo. Can you come meet me?” Of course. We met for a post-work beverage and talked about her marriage plans, the condo and then she popped the question, “Can you sell it for me?” Well, don’t you know how much I love to hear that question? Two days later I met Gina at her Mayfair townhome, a beautifully remodeled, two-bedroom, single story corner unit. We talked about timing her sale with the wedding and the move to Atlanta. All I could focus on is the fact that with so much big life stuff going on, I wanted to make sure the sale would go off without a hitch. Not always easy but always the goal, real estate transactions are an intense mix of business and personal and I consider it my duty to make sure your stress level is as low as possible.
Next we discussed price (usually where sellers feel a bit of an upsurge in their blood pressure) and settled on an opening list price smack in the middle of the competition with the agreement that we’d revisit the subject after a week on the market.
Now, it already looked like a shiny penny, “Pottery Barn Perfect” in Realtor parlance, but being a smart cookie she asked what needed to be done before we put it on the market. And then she did an amazing thing; she took notes and had all the polishing done within a week! I scheduled the photos for the virtual tour, put my marketing strategy in place and blasted it out to the market. After Sunday’s open house, I called Gina to tell her that I wasn’t excited about the showing activity in the first week and we decided to make a slight price adjustment. Monday we had three showings and an offer, lower than what we wanted but certainly high enough to open the conversation. Gina had shared with me the dollar amount she wanted for her home, which was reasonable, so it was very clear going into the negotiations what I was after. And they took it! Ten days, desired price, 30 days to a successful close.
Market data consistently shows that well-priced homes sell faster and for more money than homes which start high and chip away at the list price, especially true in this market. When a seller goes into the relationship with high motivation, reasonable expectations and trusts the advice of their Realtor®, things have a good chance of going smoothly. So what do I consider reasonable? As a seller, you have to be able to wrap your head around a few things.
• Your house is a commodity, not a product. A commodity is worth what the buyer is willing to pay for it. A product, like a hamburger, can be sold with the right marketing, like photos with enough glycerin on the patty to make it look really juicy. No matter how pretty your pictures are, your home is an emotional commodity.
• Just because you added the deck five years ago doesn’t mean you get to add that on to the price. Home improvement is tricky when it comes to selling your home. If you’re fixing it up to sell it, you’re putting that money in to make sure you get the highest amount of its fair market value. If your improvements have happened over time, they have most likely increased the value of your property, and you’ve had the pleasure of living with them. There is no guarantee that the $20k you shelled out for that sparkly new kitchen will result in a $20k return on your investment. I always tell my clients to make the changes they’d enjoy living with and deal with the rest when you want to sell it.
• Expect to pay for some pre-market repairs. You’ve been looking at that paint chip on the threshold, or the gold fixtures in the bathroom for so long you don’t even see it anymore. Buy your buyer will. And the little things mean a lot; new paint, bath fixtures, maybe some lighting and a professional cleaning will do wonders for your home’s appeal. You’re up against a lot of sellers who are doing their best so you gotta bring you’re A game!
• Buyers buy either from emotion, practicality, or a mix of both. If your goal is to sell your home for the most money in the least amount of time, make sure you keep this point in mind. You want them to fall in love with the home and you want them to write an offer. I can look at the MLS and tell you which homes in your neighborhood are going to be the next to go under contract. They’re the ones who hit either or both points. Make your house shine and price it well!
• Choose a good Realtor® and then listen to her. If you’ve chosen wisely, you’ve got an expert in your local market working as your advocate. Market conditions are what they are and they’re changing on a daily basis. You may have bought or sold a few homes over the years but there’s a good chance your agent has closed a few last month. That’s what we do and we don’t want to fire sale your house, quite the opposite. Happy clients refer business.
Hey, it worked for Gina!
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.
An artist lives here and it shows. This is my new favorite house! Look for it this weekend when it comes on the market
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!