Daniel's Blog

Election Year Economic Madness: It Won’t Last Forever

2008-10-25T12:09:49Z

The nightly news is depressing to watch these days. With any more bad economic news one would feel like jumping a boat to Bora Bora. It's clear we'll need some time to recover, but the more important question everyone wants to know is where are we headed next?

We probably won't get a true economic picture until after the election, which, by the way, is less than a month away. We seem to forget that things typically get a little out of whack in an election year. Lets assume for a moment that this was a normal election cycle and the global economy was not on the verge of meltdown. What would normally happen is this: The stock market roller coasters along, as more speculators predict what the economy will do under President X or President Y. Uncertain consumers keep their money close to the vest, and all this leaves businesses scrambling for strategies to keep the doors open. Many of those strategies result in reducing overhead, which translates into laying people off. Thus the circular panic begins. Now all of this uneasiness is magnified ten fold by the credit crisis.

Whether you're a McCain fan or you think Obama is the best man for the job, one thing is for sure. The country will have a better sense of its future once the election is over. The unsettled roller coaster ride will quiet down. January will be here before you know it, and the President will be inaugurated. While I'm not speaking with hard evidence, just the general consensus of those in my network, I also think people will generally feel better at the start of 2009. Feeling better can translate into a lot of different things, but the two economic categories that must turn-around to get this country back on it's feet are housing and energy prices.

Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.

More on the Credit Collapse: You Asked, I’m Answering

2008-10-25T12:08:08Z

Quite a few folks responded to my column entitled "The Credit Collapse Blame Game." And that's a good thing. It's always nice to know someone's listening, whether you agree with me or not. In response to your comments, I have a couple follow-up notes of my own.

First, a number of readers told me that over the years they've made responsible financial decisions, thus they aren't to blame for the current crisis. Fair enough. I'm sure there are some who used sound judgment in making big-ticket decisions like purchasing a home. Just understand folks, you are no longer the majority of America. Sad but true, you're a rare breed, a miniscule percentage of the population. The vast majority of Americans are in debt, as a popular television commercial says, "up to their eyeballs." And the problem is not only their mortgage, but the tragedy extends to their car loans, credit cards, bank overdrafts and personal loans. Make no mistake; this all contributes to low liquidity and poor credit.

Secondly, too many people are taking a narrow and short-sighted view of this problem. By now, we all realize that the housing market plays a major role in this nation's economy. When the housing market is strong, we all benefit, both in business and in our personal lives. When housing is on life-support, however, everyone suffers, whether you're directly tied to the real estate industry or not.

Economists say this problem was 10 to15 maybe even 20 years in the making. So during these last 20 years, did you benefit at all from the full-bodied economy supported by the housing market? Did the loosening of credit and the free flow of money profit you at all in your business or personal life? You bet it did, and how it did could fill two more columns.

Here's the deal: You can't have your cake and eat it too. If, over the last decade or two, you benefited or even participated in a robust economy partially prompted by a superficially inflated housing market, then you were part of the problem. Now, we will all join together in being the solution.

Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.

The Credit Collapse Blame Game

2008-10-25T12:06:34Z

These past few weeks we've witnessed a collapse of credit in this country like most of us have never seen. Former Federal Reserve Chief Alan Greenspan in a recent interview called it a "once-in-50-years event." Greenspan failed to mention that he's partially responsible. But you know what? We all are.

Before anyone starts finger pointing and blaming someone else for the nation's credit woes, perhaps we should follow the bouncing ball to see how this colossal collapse began. It started with us, with you and I wanting more house than we can afford each month. And mortgage lenders have been far too eager to lend us money for these high-priced homes because Wall Street kept coming up with new loan products requiring less documentation. Whether or not we could afford the loans really didn't seem to matter.

Real estate agents have had no problem selling buyers expensive homes and taking a high commission. Appraisers got more than a little loose with appraisals and homes were overvalued. Builders seized the market opportunity and built like crazy, raised prices and made a bundle. Then Wall Street said, "Sure, we'll buy risky loans, and we'll buy a lot of them." Investment banks got greedy, leveraging themselves to the hilt. Then, when investors stopped buying risky loans, those brokerage houses were left with no one to pay and bankruptcy. This, in turn, created panic in capital markets around the globe, pushing the world economy to the brink of ruin.

Now, I realize I've oversimplified, but here's the point: If you want to blame someone for the economic problems we're all suffering through, start by looking in the mirror and over at your neighbor. We're all responsible. Now it's time to fix it and it's going to hit us all right in the wallet.

Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.

What Adds Value to Your Home?

2008-10-25T12:05:29Z

From this title, you may already suspect that I'm going to suggest updating your bathrooms and kitchen. And you're right. If you plan to sell your home in the near future for top dollar, updating these spaces is a given. But what else can you do to boost your home's value? We'll get to that in a minute, but sometimes it's helpful to take a little quiz to find out what you do and do not know. Respond to each statement as either true or false.

1) Any remodeling project is a good one.

2) I can and I should do it myself.

3) Pools add value.

4) Always follow the latest design trends.

If you answered false to all of the above, you did well. Let's talk about why.

1) If you remodeled your living room to look like a concert hall in order to showcase your baby grand, that might be a problem if you try to sell and the potential buyers don't know the white keys from the black ones.

2) Some of us are more qualified than others to take on home remodeling projects. Know your limitations and leave it to the professionals when necessary.

3) If you live in a warm climate year round your home's value may benefit from a pool, but in Colorado they're costly to maintain and actually a liability.

4) Following the latest design trends may seem like the right thing now, but peach wallpaper may be out in a few years. Stick with neutral, easy-to-work-with finishes that are timeless.

So that's what not to do. Now let's explore projects that do add value to your home. Here's a quick list of potential projects to not only boost value but help your home sell quickly, too.

Refurbish or finish the basement
Put in a deck or patio
Do a major bath remodel
Paint, paint, paint
Add on to or finish an attic space
Build a second floor
Revive or remodel the kitchen
Replace siding
Get a new roof
Update the landscaping
Install new windows
Replace or repair flatwork (concrete)

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at Dpolimino@fullerproperties.com and www.CoDreamHouse.com.

No More Property Flyers

2008-09-28T14:41:09Z

I love new technology, especially when I think I've found something cool that helps people sell their homes. Today, I'm excited about a company called Access U2 Global Property Info. It launched about three years ago, and here's the scoop. Let's say your home's for sale with a yard sign out front. Access U2 comes by and attaches an additional sign to it called a sign rider. On the rider is a toll-free phone number with a property code number. When someone drives by your home, sees the signs and wants more information, they call the toll-free number on the sign rider. Once they call from their cell phone, they get a voice prompt asking them to enter the property code and their phone number. Instantly, they'll receive a text message with details and a description of the property. If their cell phone supports new technology, the system will also send 10 photos and a video of the home. Your potential buyer can view all the photos of the house or take a virtual tour right from their cell phone while sitting in front of your property. To wrap things up, the service e-mails or texts the property's listing agent with the prospect's phone number so the agent can follow up.

No more property flyers and brochure boxes. How many times have you been frustrated wanting more information about a home, but the brochure box was empty? That's over. Even better, this service is eco-friendly. A real estate agent may print 100 flyers for a given listing. Using this technology on even 10 listings saves 1,000 flyers, so it's easy to see how an agent could save a tree each year.

For only $15 a month per listing, any agent can sign up to use Access U2 Global Property Info via their Web site at www.propertybyphone.com, or call 877-293-U2U2. To date, the company has over 1,000 listings.

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.

The Lowdown on Low Balling

2008-09-28T14:35:57Z

I picked up the phone, said "hello," and the first words out of my fellow realtor's mouth were, "Wow, that's a low offer!" She was referring to the contract I sent over on behalf of a client earlier in the day. She genuinely seemed surprised, but I was puzzled by her comment. I wondered if she'd been working in the same real estate market I‘ve been working in for the last year.

Maybe I'm naïve, but I thought by now everyone should be used to receiving low purchase-price offers. I've had a beautiful, new construction, 2,500-square-foot ranch with a three-car garage on the market for the last six months. Even though it's listed for $370,000, we regularly received offers in the $310,000 range. I'm so used to seeing a buyer ask for $30,000, $40,000 or even $60,000 off the asking price it doesn't even make me blink.

For the last 18 months, it's been common to have low offers in some market segments. And I'm sure they'll keep coming in a while longer. How long? That will depend on a number of factors. For example, will inventory continue declining, giving buyers fewer choices? Can people get loans at reasonable rates? What will happen with the general economy?

Thankfully, low offers aren't as common in all market segments. Homes $300,000 and below can still bring full-price offers. Why? We'll discuss that issue in a column later this month.

If low ball offers are the norm for now, we might as well figure out how to handle them. If you're a seller, don't be offended and react from anger. It's not a personal insult. It's probably not even a direct reflection of your home. It's simply the market. If you're a buyer, this is your chance to perhaps get more home for your money. If you're an agent, remember this deal works both ways. You can't be surprised or taken back when you get a low offer on your listing, but then turn around and have no problem submitting low offers on other realtors' listings.

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.

Incredible Ranch in Dacono, Colorado

2008-09-18T14:45:16Z

CALLING ALL AGENTS! I need some help. I am trying to help a builder friend of mine sell a new construction ranch in a subdivision called Eagle Meadow Estates in Dacono, CO. This is not an area of Colorado that is our expertise. So I am asking if any agents in and around Weld County to help me find a buyer for 4000 sq ft ranch, 4 bed, 4 bath, 3 car, on a 3/4 acre lot, around 500K to please call Dan at 303-522-1161 or reply to this blog. Click on the video tour below for more information.

The Best Observatory Park, CO Has to Offer.

2008-08-29T15:38:35Z

Luxury, Elegance and Built Green in Observatory Park. Call Dan Polimino at 303-522-1161 for a private showing.

Is the Suburban Sprawl Over?

2008-08-19T19:38:07Z

There's no question that this summer's gas prices have taken a chunk out of everyone's wallet. We're no different. This is the first time I can remember that our family has made a concerted effort not to use the car. We've been walking and riding bikes to the nearby grocery store and using light rail for everything from the Rockies game to dinner downtown. The philosophy in our house is this: If we're going to drive, we make it count by planning well and accomplishing many things in one trip.

This same scenario is being played out with families all around the country, but the driving force is not just gas prices. It's also the cost of heating, air conditioning and using more energy-efficient lights and appliances. We're now living in an era where energy efficiency will be a major priority.

Earlier this summer, I interviewed Chris Lattimer, president of the Lattimer Group. They do consulting for real estate investment with emerging markets. Chris mentioned that one of the hottest investment areas right now is TOD, or Transit Orientated Development. TOD includes different types of mixed-use real estate that's located within a certain proximity to public transportation systems, hubs or stops. Chris is excited about this opportunity for his investors because he sees people using rapid transit more than ever before, and he has also seen people who previously wouldn't dream of moving closer to the city express interest in leaving the suburbs.

Does this signal the end of suburban sprawl? Just a few years ago it was cool or fashionable to live in a downtown loft. Now, it's convenient and necessary. Think about it for a moment ... you can walk outside your building, get on light rail and head to work. That evening you come home on light rail, stopping by the grocery store that happens to be on the street level of your building. For entertainment, you ride your bike to the park. Wait a minute. Doesn't that sound much like how it used to be for our grandparents...riding trains and bikes?

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at Dpolimino@fullerproperties.com and www.CoDreamHouse.com.

The Epitome of Luxury and Elegance in Lone Tree, CO

2008-08-18T20:53:41Z

The Epitome of Luxury and Elegance in Lone Tree, CO. Call Dan Polimino at 303-522-1161 for a private showing:

Castle Pines North, CO

2008-08-13T21:13:01Z

Call Dan Polimino at 303-522-1161 for a showing

High Shot

2008-08-12T21:47:45Z

In the last few years, you may have noticed a trend toward using aerial shots to market real estate. It wasn't too long ago that you'd have to rent a helicopter or a plane in order to get photography of large ranches or luxury homes with acreage. Today, thanks to technological advances, it's much more affordable to get a "bird's eye" view of your property.

Some real estate agents use photographers that trailer a boom camera behind their car. The boom goes up to about 60 feet with a camera attached and then captures digital images of the home from various angles. The downside of the boom method is that you only get shots where the trailer can go. They're good, just limited.

I prefer a company called High Shot that uses a radio-controlled helicopter with a digital camera attached for aerial photography. Owner Jaime Kelce has been photographing real estate this way since 2005 and shoots about 120 properties a year. The heli can go up to 200 feet with the ability to hover around your entire home and zoom in on those unique angles. Better yet, the service only costs $195, which yields 10 high-resolution digital images at different altitudes. The only limitation of this method is distance. Jaime can only maneuver the copter within his view, so you would not be able to shoot a 35- or 50-acre property. If you need to catch the boundaries of a large ranch or land for development, then you'll need to use a real helicopter.

If you're living in an area with a lot of preplanned, production homes placed close together, don't spend your money on aerial photography. It won't help you sell your home. The best real estate use of this technology is for homes on two to 10 acres. Want to know more about High Shot? Visit Jaime's Web site at www.highshot.net.

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.

Now Here’s An Interesting Buying Strategy

2008-08-08T16:24:55Z

I recently crossed paths with a gentleman executing a creative buying tactic. Since it's a buyers' market, he figured this would be his opportunity to cash in on a great deal. So he came up with an innovative plan for getting what he wanted.

First, he and his real estate agent selected three homes - all with similar features, square footage and finishes, but all three in different parts of town. While he was selecting these homes, he managed to do something most of us can't. He avoided getting emotionally attached to any of them. Finally, he vowed to keep his offers at 10 percent less than the list price of each house.

Here's how it unfolded. He made an offer on his first choice, 10 percent less than the list price. The seller rejected it, and the buyer moved on to house number 2. It just so happened that my seller was house number 2, and the man made an offer 10 percent less than the asking price. My seller countered the offer, but the man walked from the deal. The buyer made an offer on house number 3, again asking for a 10 percent reduction in the purchase price. This time the seller accepted, and the man got what he felt was a good deal on his next primary residence.

You may be thinking, "Good for him! He executed a smart plan and used the buyers' market to his advantage." But here are some things to ponder if you're considering this tact.

1) Make sure you're not emotionally involved with any of the three homes you pick. This is difficult for most people because buying a home impacts so much of your life. I don't know many folks who can pull this off.

2) Be prepared that all the sellers may reject your offer, which means you'll either have to pick three new homes to implement the plan, or you'll have to increase the offers on the original three.

3) This strategy only works as long as there are plenty of comparable homes on the market, and that's not going to last forever.

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at Dpolimino@fullerproperties.com and www.CoDreamHouse.com.

Brookstone Green

2008-07-30T11:38:31Z

Four years ago Steve Brooks worked in the renovation business converting apartment buildings into condos, yet his dream was to build custom homes. Good thing he followed that dream because four years later it's clear that Steve Brooks of Brookstone Builders has a real knack for constructing high-end custom homes.

Colorado has its share of custom home builders for sure, but it's Steve's artistic use of finish materials that really sets him apart, like unique glass tiles or bamboo flooring. And while Brooks' homes also have easy, comfortable floor plans, he'll tell you the real signature of his rustic, contemporary designs is the fact that they're "built green."

Green homes in Colorado are all the rage. Sure, potential home owners are interested in helping the environment, but the fact that green building reduces energy bills certainly boosts the appeal. What exactly, though, does it mean when a home is advertised as "built green"? In a nutshell, here's how it works: A builder has pages of "green" guidelines he can follow to construct homes, and each green feature carries a certain point value. A builder needs 80 points to earn the "built green" stamp of approval.

Brooks builds his homes with 250 to 300 points of built-green improvements. Remember those glass tiles I mentioned? They're actually recycled glass. You're also likely to find recycled leather wall insets in the study of a Brookstone home. And get this. Steve is introducing into his homes a nylon carpet that is 100 percent recyclable with an unlimited lifespan.

If you'd like to check out a Brookstone home, Steve has three on the market right now, one on South Milwaukee in Bonnie Brae, another on South Columbine in Observatory Park and the last on Grape Street in Hilltop. Not one to rest on his laurels, he's also currently building his first LEED-H certified home, which stands for Leadership in Energy and Efficient Design for Homes. This prestigious designation is limited to houses that meet stringent requirements established by the U.S. Green Building Council.

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.

Truly One Of A Kind

2008-07-30T11:32:57Z

I bet you've had realtors use the old "It's truly a one-of-a-kind home" line on you before. But indulge me for a moment, because in this case it's true. If you're an antique aficionado, you may recognize the name Eron Johnson. He's been an antique dealer, importer, retailer and wholesaler in Denver for over 30 years. You may have even visited his store at 5^th and Broadway.

When Eron set out to build his dream home in Arvada overlooking Leyden Lake, he did it as only Eron Johnson, the antique dealer, would. Johnson traveled from one end of the globe to the other, collecting a slew of architectural gems that now construct his house. The floors in some rooms are from France and 250 years old. He has doors in his living room and master bathroom courtesy of India and Argentina. The 15^th century stone fireplace is French, and I haven't even started talking about the Gothic stone window, the Civil War wooden fence or other pieces from Denmark.

The home can best be described as French country elegance, with an old-meets-new twist. The appliances and other features are very now, like, for example, radiant floor heating.

Why am I raving about Johnson's private masterpiece? Because it's for sale! The home sits on three acres, backs to Leyden Lake, Jefferson County open space and the original Highline canal dug in 1880. Listed for $1,595,000, this four bedroom, three bath is 7,200 square feet and comes complete with over $200,000 worth of architectural antiques. If that's not enough, the property also includes a pond with a free-flowing stream.

Johnson has been collecting, studying and selling antiques since he was a teenager, and when you see the home you'll agree it shows. Realtor Susan Henderson is listing this spectacular retreat and says if you appreciate antique architecture, this one's a must-see.

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.

How Do I Price My Home In This Market?

2008-07-21T18:22:25Z

In answer to this question, one appraiser I recently spoke with jokingly said, "How about a dart board?" Seriously, though, a lot of people are ready for a dart board. Since the mortgage crisis began last August, every lender in the good ole US of A is sweating bullets over home values. Most analysts think the mortgage crisis occurred in large part because of over-valued homes, so naturally everyone in lending is a little sensitive about appraisals. The Federal Housing Administration (FHA) now requires all appraisals to be based on sold data from the last 90 days. Furthermore, the feds want at least one pending sale and/or one active comparable included with the appraisal. Some lenders will still accept sold comparables from six months back, but that's not true across the board. And sold comps from 12 months ago are extinct.

Then there are some appraisers putting more emphasis on actives rather than solds. Their philosophy is that in a rapidly changing market the actives are a better gauge of value, assuming realtors don't pull list prices out of thin air. Jay Vici, an appraiser with Rocky Mountain Valuation who's been in the business since 1989, came on the scene right after the savings and loan crisis so he knows a thing or two about a volatile Denver market. Vici believes the most up-to-the-minute indicator of your home's appraised value is "pending sales" in your area, provided the appraiser can get that information from listing agents.

Now, back to the notion of pricing your home. Vici's advice? Know your competition. Do your homework and know what else your potential buyer can purchase for the same amount of money. Compare your home with others competing for your buyer and ask yourself: Is my home a better value than all the others for sale in my neighborhood?

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.

Relocation Can Tell You A Lot

2008-07-01T22:33:28Z

The current housing market has people looking at a multitude of economic indicators in an effort to predict what's going to happen next. One commonly overlooked housing market snapshot is the relocation end of real estate business. While it doesn't often make headlines, relocation constitutes a major revenue source.

Fuller Towne and Country Relocation Director Dolores Mozer attended the Relocation Directors Council spring conference the first week of May, coming away with a better idea of what's happening around the country regarding "relo's." As expected, some areas are still suffering while others are doing well. Those cities and states doing better than the average are Denver, Dallas, Houston and most cities in North and South Carolina. What do I mean by "doing well" when it comes to relocation? Simply stated, employers in these healthy areas are finding it relatively easy to sell homes belonging to employees they want to move and to bring new people into these areas. That's because home values have not dropped drastically; therefore people moving out are not taking a loss on their home, and people moving in are finding good, affordable housing. Moreover, there's positive economic growth in these sectors in the form of energy-related and high-tech jobs.

Areas still suffering include parts of Michigan, Ohio, Florida, Nevada and California. Why? Just reverse the healthy scenario above: Housing values in these states have plummeted, jobs are scarce, the local economy is depressed and many people simply can't afford to move.

What's the forecast? Two third-party relocation companies attending the Relocation Directors Council conference pointed out they're busier than ever. Two major corporations said they're on track to relocate as many or more employees than they did in 2007. The consensus from conference attendees was that the number of transfers would not decrease in 08/09; we may see an increase, but at the very least, remain stable. Some companies have even made up the short fall difference between the sale price of the home and what the employee actually owed on the mortgage. All of this is good economic news for the country and the housing market.

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.

So, You Want to Go Short? Part 2

2008-06-26T21:15:00Z

Last week I started a two-part series looking at considerations when purchasing a home being sold as a "short sale." If you missed the first installment, go to www.coloradodreamhouse.com and click on the "News" button.

Now, picking up where we left off last week, we continue with a few more things to ponder when purchasing a short sale. First, what if the bank takes two weeks to a month, or even two months, to give you an acceptance or a rejection on your short sale offer? Do you go ahead and spend the money on the inspection and/or appraisal, trying to stick with your closing timetable? I heard a story in which a homeowner did not get an acceptance on his offer until the day before closing. He really wanted the house, so he gambled on waiting two months and paid for the inspection as well as the appraisal, all without an accepted offer.

Short sales are not a good way to go if you need to move into a home right away. The average amount of time to close a short sale home is anywhere from 45 to 60 days, sometimes even longer. And short sales aren't always the best value for the money. Properties already bank owned or those offered by private sellers might be better deals.

And get this: In most cases banks will keep the property on the market even though you're under contract. Not a good thing for you, the buyer, because the bank is still looking for offers. Which brings us to my final point, and I have saved the best for last. Banks involved in short sales can pull out of the deal on the day of closing because they received a better offer.

These are just the potential problems for buyers; we haven't even touched on the seller's side. Of course, your short-sale purchase may come off without a hitch. But in this market, it's buyers beware.

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.

Good Luck with That Inspection

2008-06-18T14:21:02Z

The buyer found the right home, in the right location. The seller even agreed to the terms and price, but there's still a good chance this deal will never make it to closing. Why? Because more real estate deals than ever before are falling apart at the inspection. Buyers maximize their leverage in this market to beat up on sellers, and frankly it's getting a little out of hand. Of course, if you're the buyer it may sound great, but life experience tells me when the pendulum swings too far in one direction it's not a good thing.

Here's what I mean. Let's say a buyer conducts an inspection on a resale home and then submits an inspection notice to the seller that reads like a honey-do list a wife gives her husband on a Saturday afternoon. Now, don't get me wrong. I don't believe a buyer should inherit other people's major problems. But when buyers want sellers to install "matching sink stoppers" in master bath sinks, we've got a problem. Or when listed on the inspection notice is a request to install an outlet plate cover in the garage, clearly the buyers are taking a few too many liberties.

Why this pendulum swing? Because it's a buyer's market. You see, there are so many properties on the market now that buyers can say, "Fine. If you don't want to fix everything, and we mean everything, we'll just find another house." Buyers have the upper hand, and some sellers really have no choice but to fix everything or lose the deal.

This may be your time in the sun, but buyers I'd like to caution you on a couple of things.

1) Be realistic. Inspectors can find something wrong on any home, particularly a resale.

2) Be reasonable. Only ask the seller to fix big things, like plumbing, heating, roofing, the foundation, etc. No home is perfect. If you have to install a switch plate cover after you move in, that's OK.

After all, you might end up being the seller one day, and what goes around comes around.

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.

So, You Want to Go Short? Part 1

2008-06-18T14:06:24Z

What is a "short sale," exactly, and why are some folks looking to purchase a short sale home? A home that is being sold as a short sale is one where the homeowner is still living in the house but may no longer be making payments to his or her lender. In most cases the lender has begun the foreclosure process. Since the homeowner can no longer afford the home, he or she is trying to sell it and asking the bank to accept a purchase price less than what is owed on the mortgage. Thus we arrive at the term "short sale" because the bank is getting "shorted," or taking less than what it is due.

If you're a potential buyer of a short sale, you need to know about the drawbacks involved in purchasing this type of property. The bank and the seller are now working together to get the home sold, which means they need to agree on a price as well as the terms. In essence, you, as the buyer, now have to deal with another chef (the bank) in the kitchen. Since they're looking for the most amount of money possible, negotiating with bankers can be problematic. You can put in an offer, but they don't have to get back to you in a timely fashion. In short, contract acceptance deadlines mean nothing to the bank.

And while you're waiting for an answer on your contract offer, your hands are sort of tied. Will your offer be accepted? How long will you have to wait to find out? Should you keep looking for another home? Let's say you keep looking and actually find another house you're interested in pursuing. You'll need to withdraw your offer on the short sale before the bank says yes and before you make a new offer on the second home.

There's more, so come back next week when we'll continue discussing pitfalls to be aware of if you're contemplating a short sale.

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.

In Search of the Perfect Home

2008-06-01T19:10:35Z

I recently completed an informal survey of a group of realtors who have been in the business from one to 30 years asking them this question: "Is there a perfect house?" Their answer: A resounding "no!" Perhaps the best response from the group was that "a perfect house is in the eye of the beholder."

I bring up this issue because I'm always amazed when home buyers step into an agent's car the first day of looking for a new home and utter the words, "Let's go find my perfect house." Talk about setting everyone up for a fall. Not wanting to dash anyone's hopes, most realtors find a nice way to say there is no perfect house, so maybe we should focus on your highest priorities instead.

Even folks who build their own custom home, supposedly the house of their dreams, usually find that the end result falls short. They design and plan every detail, yet it's virtually impossible to anticipate everything you want until you're actually living in the house. Is spending more money the answer? Nope. Even multimillion-dollar homes are not perfect 10s.

Denver Realtor Morey Ferguson says the situation can be even more complicated when buyers are from out of town. For example, people coming from Tennessee struggle to understand why everything is so expensive in Colorado, while people coming from California are surprised at the amount of home you can buy for the money.

So what's the home buyer take-away? Be realistic with your expectations, and realize your needs may change. When my wife I bought our first home, it had 90 percent of what we were looking for at the time. We didn't have kids then, so a spacious garage and a big backyard didn't top our list. Yet now, two kids later, a three-car garage and lots of backyard play space sound pretty good.

The perfect house? I have to agree with my surveyed colleagues. If you find a home that meets 85 percent or more of your needs, you've done well.

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at Dpolimino@fullerproperties.com and www.CoDreamHouse.com.

The Costa Rica Boys

2008-05-20T22:05:07Z

Eric and Ian Sachs took a vacation in Costa Rica not too long ago and ever since then they've been mesmerized by the place. Prompted by a client who told them that Costa Rica was not only a great vacation spot but also the next real estate Mecca, the Sachs brothers decided to check it out. After their vacation, they realized their friend was onto something and they bought a $150,000 condo near the beach. Eric and Ian had two things in mind for their Costa Rican condo. First, they wanted the perfect spot to enjoy the good life, or "pura vida," as they say down there. And secondly, the condo serves as home to the Sachs' Costa Rican real estate operation. Ian and Eric still sell real estate in Fort Collins, but now they also take clients to Costa Rica in search of a dream vacation home.

Buying real estate in Costa Rica is not as risky as you may think. One of the most stable Central American countries since 1984, Costa Rica is bordered by Nicaragua to the north and Panama to the south. It's a shorter five-hour flight to Costa Rica than the eight hours to Hawaii, and Frontier flies direct for as little as $417 round trip.

Folks from the United States who decide to buy a home in Costa Rica have the same rights as a Costa Rican citizen. The country is friendly to foreign investment, and all property purchased is fee simple and deeded. The legal infrastructure is solid, with real estate contracts negotiated by Costa Rican attorneys, titles guaranteed by the government and no capital gains tax.

Sound appealing? Then check into the northwest part of the country called the Guanacaste coast. Areas like Playa Hermosa, Flamingo and Panama are the luxury living development hot spots. According to the Sachs brothers, real estate appreciates 30 percent per year in Costa Rica so it's not too late to cash in on a great investment as well as a fantastic vacation getaway.

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.

Dacono, Here I Come

2008-05-20T21:33:38Z

Media reports say that Weld County suffered from a high rate of foreclosures in 2007, which is true. But what most people don't know is the majority of these foreclosures concentrated in one area. According to MetroList, Greeley did lead the nation during part of 2007 for foreclosures, but areas south of Greeley continue expanding. For example, go 20 miles north of Denver to the cities of Dacono and Frederick where they have seen significant population growth over the last eight years. Both cities combined added roughly 7,000 residences since the year 2000.

Builder Rick Polland of Tamrick Homes, Inc. is counting on people continuing to move to the northern corridor. Polland entices newcomers with larger homes, larger lots and more standard features. His development, called Eagle Meadow Estates, is exit 232 off I-25, only 15 minutes from the Pepsi Center. It's also 10 to 15 minutes from the Broomfield corridor. Why is Broomfield important? Because Polland is capitalizing on the announcement that Conoco Phillips will be moving oodles of employees to their new research center slated for the old Storage Tek campus. Rumor has it that other energy companies may follow Conoco's lead by locating in the same area. If that happens, Polland will be poised to offer those new employees a home in his unique Dacono development.

Eagle Meadow Estates boasts 127 homes with large lots ranging from a half-acre to three-quarters of an acre. Consumers can choose from semi-custom to custom models from the high $300s to the mid $500,000s. Tamrick Homes offers granite, custom flooring, custom cabinets and flat screen TVs as standard (not upgrade) features. Buyers will also receive a partially finished basement included in the base price.

If you're looking to spread out a bit, consider Eagle Meadow Estates' high-quality construction and custom finishes in Dacono.

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at Dpolimino@fullerproperties.com and www.CoDreamHouse.com.

Look for the Bloom Instead of the Gloom

2008-05-08T21:16:14Z

Fuller Towne and Country Managing Broker George Leonard is frustrated. So are a lot of other Denver area realtors. It seems the media reports of Denver's real estate market are, shall we say, on the dark side. Like others, Leonard is ready for a few positive stories about Denver real estate. How about some upbeat news about neighborhoods that are selling well, or those that are holding their value?

I hate to startle the naysayers, but speaking with realtor Gary Lohrman, I learned of two homes in Greenwood Village that both recently sold in one day. The homes were between $1 and $2 million; both homes had multiple offers and both sold for full price. Sounds like sunny skies in Greenwood Village.

How about Hilltop? Negative reports circulate that this area is overbuilt and has too much inventory and too many scrapes. Realtor Dewitt Petty agrees there have been a lot of scrapes but is also quick to point out a positive Hilltop trend in the older Tudor-style homes ranging from $630K to $725K. Petty sold three Tudors since the first of the year, and all three were on the market for a mere 30 to 60 days. So much for the rumors about buyers being skittish.

Safeway just built one of their largest stores in Conifer, and King Soopers and Staples are close behind. People are moving to the 285 corridor, including Conifer, because the area offers larger land parcels, gentlemen's ranches, and affordable horse properties. Jeff Courtney has lived in Conifer his whole life, owns the UPS store in town, and says he's never seen so many new faces. Maybe that's why his business has grown 20 percent for the second consecutive year.

Other neighborhoods are pretty frisky, too, like Washington Park, Bonnie Brae and the Highlands. There is good news on the real estate front in Colorado; you just need to look around. Denver is not all gloom and doom and should not be lumped in with depressing national news.

If you have a positive story about what's happening in your neighborhood, write to me at the e-mail address below. I'd love to hear it.

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at Dpolimino@fullerproperties.com and www.CoDreamHouse.com.

Is a Housing Boom on the Horizon?

2008-04-28T19:28:34Z

Among all of the doom and gloom regarding the housing market, the economy and the price of oil, I read an inspiring article last month by Robert Freedman in Realtor magazine. In it Freedman explains that while there is no current great demand for new housing, the future looks bright. And he points to some data to back up his belief that's apparently been hiding on the back page of the newspaper.

News flash: Americans have started having children again. As a nation, our production in the baby department decreased dramatically over the last four decades. But according to Freedman's article, the U.S. birth rate is now the highest it's been in the last 40 years. And there's more. Check out these statistics:

The U.S. census bureau reports that our nation's population as of Jan 1, 2008 was 303,146,284. That's almost a 1 percent increase, or 3 million more people, from 2007.
Americans are having babies to the tune of one every eight seconds.
The rate of U.S. deaths is one every 11 seconds.
The rate of international immigration to the U.S. is one every 30 seconds.
All this means the total rate of U.S. growth is one new person every 13 seconds.

According to Freedman's research, the spike in birth rate can be largely attributed to immigrant households, particularly Hispanics. So, thanks to our Hispanic friends and all immigrants contributing to the melting pot of America. I'm happy to say the Poliminos are doing our part too, having welcomed in the birth of our second child, Malia Grace, last month.

For realtors, 3 million new faces last year means the country may see strong growth and a demand for new housing, both for currently expanding families and in the future as these kids grow up and buy their own homes. It's true that today's children will not be in the market for a house for another 20 years, but as a young practitioner in the business I have time to wait.

Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at Dpolimino@fullerproperties.com and www.CoDreamHouse.com.