Daniel's Blog

Relocation Can Tell You A Lot

Daniel Polimino (Fuller Towne and Country Properties) — Tue, 01 Jul 2008 22:33:28 -0500

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

Daniel Polimino (Fuller Towne and Country Properties) — Thu, 26 Jun 2008 21:15:00 -0500

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

Daniel Polimino (Fuller Towne and Country Properties) — Wed, 18 Jun 2008 14:21:02 -0500

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

Daniel Polimino (Fuller Towne and Country Properties) — Wed, 18 Jun 2008 14:06:24 -0500

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

Daniel Polimino (Fuller Towne and Country Properties) — Sun, 01 Jun 2008 19:10:35 -0500

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

Daniel Polimino (Fuller Towne and Country Properties) — Tue, 20 May 2008 22:05:07 -0500

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

Daniel Polimino (Fuller Towne and Country Properties) — Tue, 20 May 2008 21:33:38 -0500

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

Daniel Polimino (Fuller Towne and Country Properties) — Thu, 08 May 2008 21:16:14 -0500

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?

Daniel Polimino (Fuller Towne and Country Properties) — Mon, 28 Apr 2008 19:28:34 -0500

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.

Taking Green to a Whole New Level

Daniel Polimino (Fuller Towne and Country Properties) — Mon, 28 Apr 2008 19:09:40 -0500

A near-zero energy home - given the current soaring energy cost, who could possibly object to that? Harvard Communities President John Keith is banking on the fact that no one will object, but rather they'll be knocking down the door to find out more.

Keith and his Denver-based group have received a lot of positive press lately about their "super" energy efficient homes. According to Keith, Harvard has always built "green" energy-friendly homes, but their near-zero energy (NZE) model is an energy efficient home on steroids. Are you ready for this? Harvard's NZE home averages $500 to $600 dollars a year in electrical and gas bills. Yep, I said $500 to $600 a year! That's less than $50 dollars a month for electricity and gas. Now that I have your attention, let me tell you how they do it.

First, Harvard Communities focuses on the building envelope, which means they build each structure tightly, including such features as high-performance framing, air sealing techniques, super insulation and energy efficient windows. Each window, depending on its orientation to the sun, is designed with a "solar heat gain coefficient," meaning it repels sunlight. Harvard also pays special attention to the mechanical systems, using high-efficiency air conditioners and furnaces. They top it all off with solar power, a renewable energy source, that can supply 6.7 kilowatt-hours of energy, representing approximately 90 percent of your home's electric/gas bill.

Of course, there are other little touches like LED lights that are 90 percent more efficient than incandescent lights, the solar thermal system that generates 90 percent of a home's hot water, or the indoor lung system created to circulate clean, fresh air.

How much does all this clean, energy efficient, save-the-planet technology cost? Harvard's NZE homes are in the low to mid $700,000s for a 3-bedroom, 2,800-square-foot custom design. Most of their NZE homes are pre-sales, but they are building a couple of specs in Stapleton. If you have your own piece of land and want a near-zero energy home, Harvard will build one for you under their green-crafted custom homes program.

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

Let’s Make a (Foreclosure) Deal

Daniel Polimino (Fuller Towne and Country Properties) — Wed, 16 Apr 2008 21:44:50 -0500

Imagine this. An investor goes into a new high rise in 2003 and buys about a dozen luxury condominiums. He never sells any of them or even moves into one. He just lets them go to foreclosure. Or this: A new luxury condo never once lived in valued at $1,000,000 sells in foreclosure for $605K. Another one sold for $390,000 cash in 2007 when even the county had it valued at $675K. How about an $824K luxury condo that sold for $605,000 after the bank foreclosed. These are not wild concoctions, but rather true stories from realtor Ryan Schulz who has been working the metro Denver foreclosure market exclusively for the last several years. And Schulz has other stories on the opposite end of the spectrum, like a foreclosed property he listed for $59,000 that brought in 15 offers and eventually sold for $90,000. He once had 10 offers on a home listing for $156K, with the winning bid coming in at $175K. It would seem by the flurry of activity that some people truly believe “there’s never been a better time to buy.” There is, however, a catch. Location, location, location. The above-mentioned properties are in strategic hot spots. Contrast these properties with others in different parts of Denver that haven’t ever seen an offer. So where are the hot areas to buy foreclosures? According to Schulz, Central Denver is on fire, with Littleton and Westminster close behind. Still, Schulz will be the first to tell you that deals like the ones above don’t come along every day. In most cases the bank-owned homes he lists are in poor condition, and that’s being kind. If you’re considering the foreclosure market, just make sure you have the dough to fix up a place. Schulz offers this additional advice: Study the neighborhood to make sure the value is there, then act fast if you think it’s a good deal. Remember, you may have to offer more than full price. Finally, he cautions against buying with the idea of fix and flip; instead, plan on holding and renting. Schulz received 150 e-mail inquiries for one rental property in Washington Park. Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at Dpolimino@fullerproperties.com and www.CoDreamHouse.com.

The Original Maytag Estate For Sale

Daniel Polimino (Fuller Towne and Country Properties) — Sun, 06 Apr 2008 19:33:39 -0500

In the early 80s, members of the Maytag family wanted a getaway in the scenic hills of Colorado. Apparently they were golfers and enjoyed playing the Broadmoor course. They were also pilots that flew their own plane into Centennial airport. When it came time to build their third home they settled on a midway point between Centennial and Colorado Springs with a large track of land outside Castle Rock. They commissioned an architect to design a Spanish-style villa that would be their sanctuary. Nestled high on a hill and tucked away among pines, scrub oak and mossy rocks is a stunning four bedroom, six bath, 9000-square-foot mansion. Better yet, the home sits on 227 untainted acres that are protected in a conservation easement. The acreage offers something for everyone with forested hills, open meadows and gorgeous rock outcroppings. It's perfect for a private barn, equestrian center, corrals or just incredible hiking and sightseeing.

As the story goes, the family wanted the very best in construction so they hired the commercial building firm of Gerald H. Phipps to construct the house. According to the architects designing the home, never once did the family ask how much anything cost nor did they ever cut anything from the budget. The home took two years to build and was completed in 1983 at a whopping $2.5 million - a lot of money for a home back then. It was money well spent, though, because the quality of construction and detailed finish work are evident everywhere you look. The couple used the home to entertain, throwing lavish parties for their family and friends.

Ten years ago the property was sold to the current owners. This couple not only made fantastic improvements to the property, but they've maintained the elegance to near perfection. Walking through you can't help but savor the craftsmanship and pristine condition of the home. There are panoramic views of the mountains from every room, courtyard and patio.

If you came west with the dream of owning a historic Colorado ranch, the Original Maytag estate is one incredible opportunity.

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

Live Downtown

Daniel Polimino (Fuller Towne and Country Properties) — Tue, 25 Mar 2008 21:14:27 -0500

I interviewed Tamara Door, president and CEO of the Downtown Denver Partnership, not too long ago. Every time I speak with Tamara I get really excited about what's happening in downtown Denver. According to their mission statement The Downtown Denver Partnership was created "to focus on any aspect that impacts downtown to make it a more vibrant, vital place to live,". Those aspects are housing, economic development and urban planning.

If all you do is run downtown for a play or out to dinner, then you really ought to take some time and check out that urban planning and housing Door talks about. She says, "There has become a real mosaic of neighborhoods being developed," fueled by the high demand to live downtown. Driving around the other day I found out she was right. Downtown neighborhoods have cropped up like crazy - those like the Central Platte Valley, Curtis Park, the Golden Triangle and Lower Downtown. Granted, I live in suburbia and have gotten used to living and working within a 10-mile radius of home, so I've missed some of the earlier development of these areas. Yet even folks living and working in these neighborhoods daily admit the transformation is explosive.

Let's take the Central Platte Valley, for example, which lies between Speer Boulevard and Park Avenue. This 120-acre area for years was nothing more than warehouses, rail yards and viaducts. Today it's an awesome mixed-use urban neighborhood with more than 3 million square feet of offices, shops, restaurants and hotels. The real jewel of this area is the 90 acres of parks. You might know about the South Platte River for kayaking, but did you know there was that much park space set aside? The largest is Commons Park, boasting 30 acres with a ton of residential redevelopment all around.

The Downtown Denver Partnership does an incredible job of promoting the well-being of these thriving urban neighborhoods. Just look around - it shows.

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

Ready to Sell? Make Sure Your House Is

Daniel Polimino (Fuller Towne and Country Properties) — Tue, 18 Mar 2008 21:11:20 -0500

It’s tough being objective about your own home when it comes time to sell. After all, it is your castle and you may think its worth more than it is. How do you know if your home is ready to enter this challenging market? Answer: Take a hard, objective look at your home’s condition. Start with the interior. Do you need to make repairs or updates? Then move outside and make the same evaluation. If you can’t go through this process objectively, and you don’t want to hire a stager or hear suggestions from your realtor, then ask a friend you trust and whose opinion you value. Have him or her tour your home and give you a report. Make sure your friend knows ahead of time that you want an honest opinion, and your relationship will not be affected by the outcome. If you might be offended then stick with a realtor or stager. Here are a few principles to guide your evaluation. Get rid of clutter. Too much furniture or too many accessories can make a home feel small and stifled. And always put things where they belong before showing your home to prospective buyers. Stick with neutral paint colors. If your family room is lime green and the kitchen is lemon yellow, most buyers will have a hard time imagining their belongings fitting in your home. Instead, consider … cream, tan, or white. Freshen floor coverings. New carpet or tile go a long way in improving your home’s appearance and can usually be installed relatively inexpensively. Chances are good that the money you spend will be multiplied back to you when you sell. Finally, here are a few recurring updates many folks miss. In general, replace or repair exterior paint every five to 10 years, a furnace every 15 to 30 years, the roof every 13 to 15 years, a water heater every seven to 15 years and renew deck staining every four to seven years. Dan Polimino is a Realtor with Fuller Towne and Country Properties. He can be reached at Dpolimino@fullerproperties.com and www.CoDreamHouse.com.

Another Look At Mid-Century Modern

Daniel Polimino (Fuller Towne and Country Properties) — Sat, 15 Mar 2008 22:39:48 -0500

According to Peter Blank and Craig Mayer from the Mile Hi Modern Team, for the first time ever in Denver there are five houses on the market that have historic mid-century modern significance.

"Great," you say. "So what?" What is mid-century modern? Who are Craig and Peter, and why is this important? Let's start at the top with mid-century modern architecture. Denver has never had a plethora of mid-century modern homes. Yes, some can be found in areas like Bonnie Brae and Hilltop, but people not appreciating their architectural significance have scraped them in favor of the modern day Colorado castle. The fact is mid-century modern is a dying breed.

Yet these homes are works of art. Brought to us by such architectural giants as Frank Lloyd Wright, Burnham Hoyt and Charles Haertling, mid-century modern architecture combines creative design and sculpture, and among those in the know these homes demand true collector value. Sure, plenty of homes today are designed and built by architects, but few can boast the classic designs and notoriety of the gentlemen mentioned above. The pictures do a better job of describing their unique place in architecture than what I have described above.

How do I know all this stuff? That's were Craig Mayer and Peter Blank come in. They comprise a unique niche in the Denver market as realtors that specialize in buying and selling mid-century modern homes. Just ask them for the scoop. They can dish out the five-minute Reader's Digest version of the history of modern homes, or the two-hour lunch version. They're nice guys with a lot to say, but more importantly they know historic architecture.

According to Peter and Craig, never before have there been homes from Wright, Hoyt, Haertling and two homes by Eugene Sternberg for sale in the Denver market at the same time. If you admire historic architecture homes, then you shouldn't miss this opportunity. Craig and Peter can be reached via their Web site at www.MileHiModern.com. I like their mission, which is simply "restoring, renovating and saving some of Denver's best examples of mid-century homes."

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

Have you Vid Toured?

Daniel Polimino (Fuller Towne and Country Properties) — Tue, 04 Mar 2008 20:15:53 -0600

Eric Manthey is the founder of Vid2r (pronounced VidTour), an innovative company in Denver that produces narrated videos of properties for sale. Over the years, photography and virtual tours have helped sell their share of homes, but just recently video has picked up momentum.

What's the difference? Virtual tours are moving slideshows developed from still photographs. Video tours, on the other hand, are like using your personal video camera to tell the story of your home, room by room. Great idea, isn't it. So why hasn't someone done this sooner? Some said it was too expensive to shoot video, edit it, narrate it and post it on the Web. Others maintained that video of inanimate objects doesn't play well. Both camps have changed their tunes.

Inexpensive camera and computer equipment now make high-quality video tours easier to produce and more affordable than ever. Founder Manthey says video tours "give a better representation of the home's features." He also notes that voice-over narration is a major plus because for the first time you can hear someone guide you through the home, pointing out the can't-miss details.

Manthey started Vid2r in 2006 with just a few clients, but now he boasts almost a 100. At the end of this year, he'll be entertaining offers from venture capitalists interested in his product. Manthey reaches out to real estate agents and consumers alike. For the buyer, he says "it's a much more entertaining way to look at homes." And for the seller, what better way to showcase your home?

Vid2r is absolutely affordable for agents and consumers. For as little $149 you can get a fully narrated, produced video of your home, plus 20 still pictures. Vid2r will also post the video to the MLS as well as 11 other sites like Yahoo, Realtor.com, Meta Café, AOL, You Tube and Google.

Remember, the challenge in today's market is gaining a competitive edge and getting your property in front of as many people as possible. Which means, maybe you should be Vid touring.

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

Gotta Love “O” Park

Daniel Polimino (Fuller Towne and Country Properties) — Tue, 26 Feb 2008 22:22:23 -0600

Have you checked out Observatory Park lately? In my opinion, it's one of the neighborhoods that make Denver so appealing. This gem of an area started it's rebirth in the late 1990s, when Denverites rediscovered its wide streets, mature trees, larger lots, great location, and oh yes, the magnificent observatory that is the park's namesake. About the same time, the University of Denver ramped up campus development, which triggered more excitement about the neighborhood.

Since then "O" Park has seen plenty of people scraping the 1920s and 30s homes for modern mini-castles. According to local developers Tre Behr and Steffen Kaufman, builders have taken notice, buying from 7,000 to 14,000 square foot lots in hopes of capitalizing on two different markets, those moving up and those moving down.

Those moving up are families from Highlands Ranch and Lone Tree that left homes worth $400K and are now looking to upgrade to a million plus. The moving down folks are empty nesters from Cherry Hills that no longer want to maintain 10,000 square feet, but do want high-end finishes.

Behr and Kaufman are meeting both needs through their home on South Madison, with construction set for a March 1 completion. It's just a little over 5,000 square feet with four bedrooms, four baths and incredible, high-quality finishes that both of these hot demographics have come to expect. Their builder, Jon Crabtree from Frontgate Development, built the home as spec and had zero reservations about doing it, even in this market. Crabtree says he doesn't worry about his homes selling because his plan is "to get away from the average."

If you're thinking Observatory Park maybe a good place for you, consider two things. First, the price range for new builds is between $800, 000 and $2.5 million. Second, the quality of homes varies widely, so steer clear of square box homes with no architectural panache.

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

Will you Google?

Daniel Polimino (Fuller Towne and Country Properties) — Sun, 24 Feb 2008 18:34:56 -0600

A lot of people - techno geeks, real estate folks and Web developers among them - are watching and waiting for the next big thing to come out of Google's corporate offices. That "thing" just may be Google Real Estate. By all accounts, Google will unveil their search engine for a national, Web-based real estate platform in a year or so. As we speak, technology wizards are testing and re-testing Google's system, which is much like the MLS (multiple listing service) only better. Google claims their platform will have far more bells and whistles (e.g., Google's patented maps) than the traditional MLS. Google Real Estate won't be the exclusive purview of real estate agents either; the entire Internet world can jump on board.

While I wholeheartedly believe that Google will deliver on all these promises and more, debates rage over whether or not the face of real estate will change as a result. After all, Google is not the first company to try making real estate a national event. Century 21 has attempted for years and so has RE/MAX. Recently, Yahoo and Prudential Real Estate teamed up to create a national real estate Web site, which, unfortunately, has only received mixed reviews.

So why would Google fair any better than these heavyweights that have gone before them? Here's why. Google, like Apple, continues to define "cool" in America. They have their finger on what America wants from the Internet and how they want it. Secondly, Google has the resources (money and manpower) and the creative genius to go where no ones else has thought to go. And Google's timing couldn't be better. Zillow, Trulia, Redfin and other real estate portals are all duking it out to see who is going to come out on top with the greatest market share as well as the best revenue ad model.

If I were a betting man I wouldn't bet against Google. There's no company more equipped to launch a national real estate search platform than the tech heads from Mountain View, California. I believe they will revolutionize the industry where others have failed. In fact, don't be surprised if someday we turn over our money and notice it's stamped "In Google We Trust."

Where is the Bottom?

Daniel Polimino (Fuller Towne and Country Properties) — Sun, 24 Feb 2008 18:32:23 -0600

Have we hit the bottom of the real estate crash yet? Is it going to get worse? Should I wait to sell my home? What's my house worth? All questions I continually field week after week from home owners. We could listen to the news all day, but we're likely to get a conflicting opinion on each station. The question is what is the best economic indicator to determine real estate values?

I was reading a story in a November issue of Fortune Magazine entitled "How low can they go?" In it the author interviewed all of the top experts in the field and came up with one conclusion! The best indicator and the most reliable over time to guide home values is RENTS! This theory is right on the money. You see people will not pay much more monthly to own a home than they would to rent a similar property unless there was big pot of gold when they sold. In the last several years home prices have sky rocketed, but I can assure you rents have not followed suit. Thus there is a tremendous gap in the ratio of home prices to rents. Rents have always had a historical pull on home prices and until this ratio returns back to normal averages we'll continue to see home values fall. Rents will also need to rise in the next several years to bring this equation closer to balance. Areas like Florida, Nevada, California and Arizona will be hit the hardest with falling home values because these areas had the largest disparity in the price/rent ratio.

What's the mean for Colorado? Two things: One, the price to rent ratio was not as out of whack as the states mentioned above so the drop in home values won't be as dramatic. For example, according to MLS data the average price of a single family home in 2006 was 317K and the average price in 2007 was 310K that's only a difference of a little more than two percent. Two, home inventory is declining, unemployment in Colorado is low and interest rate are dipping into the 5's ...all good signs for recovery later this year.

Dan Polimino is a Realtor with Fuller Towne and Country Properties. Dpolimino@fullerproperties.com and www.ColoradoDreamHouse.com

What You Really Want From Your Agent

Daniel Polimino (Fuller Towne and Country Properties) — Tue, 05 Feb 2008 20:41:34 -0600

This past December I interviewed Anne Randolph of Murray Consulting, and I must say she gave me much food for thought. My primary question for Anne: What is the number one thing consumers want from their transaction with real estate agents? I was sure that getting the highest possible price for their home would be consumers' top desire. Or maybe moving their property quickly would take the pinnacle spot. I was wrong, on both counts. According to Anne's research, 89 percent of people surveyed since 2000 say the most important thing for them is "to feel like the real estate agent completely represents their interests." Those same respondents added that they need to feel the agent is trustworthy.

Interesting. Here's a related tidbit that also got my attention. Ann adds that according to a recent Harris poll, real estate agents have sunk to a new low in trustworthiness. Used car salesmen had the lowest ranking for years, but just recently real estate agents have taken over that dubious honor.

On the heels of representing their interests and being trustworthy, good communication was consumers' third strongest desire. Getting the highest price for their home and selling it quickly were still further down the list.

So what does all this say about agents and their relationship with clients? Apparently, we have a lot of deceitful agents running around not communicating and not yielding results since they fail to fight hard for client interests. Even if this is a flawed perception, we, as agents, have a serious image problem that requires correction tout de suite.

The start of a new year in the real estate industry usually means new production goals and revisited business plans. Some agents speak of working the foreclosure arena. Others plan to farm their specific territory, while still others have shifted their focus to the Internet. If you ask me, I'd say the plan for ‘08 is crystal clear. Every consumer that closes a real estate transaction should be able to say that their agent is a trustworthy professional with superb communication skills who works hard to protect their interest.

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

Who Wants to Pay Big Commissions? Part 4

Daniel Polimino (Fuller Towne and Country Properties) — Mon, 28 Jan 2008 19:36:41 -0600

This is the final blog on a topic we've been looking at over the last several weeks regarding real estate broker commissions. Some people think discount brokerage firms are the way to go. Why not pay the lowest commission possible because "Hey, my house is a palace and anyone could sell it." Or another common practice is to hire a reputable agent at a good firm and then negotiate him or her down to the lowest possible commission rate.

If you've followed this blog over the last few weeks then by now you realize these strategies have some flaws. Last week we gave you a partial list of 18 services that a real estate agent provides when listing your home. Today, in the final installment on this topic, we'll examine how an agent works to assist you if you're on the other side of the transaction - that is, if you're in the market to buy.

Here's a quick listing of what you can expect:

• Meet with you to review your housing needs and compile comprehensive suggestions that meet your requirements for features, affordability and location of your future home.

• If you're changing neighborhoods, agents arrange tours of areas you're interested in, help you locate schools, places of worship, shopping, financial institutions and employment centers. We will also find hotel accommodations and child care if necessary while you're touring.

• Evaluate and recommend the home price range most suited to your financial situation and illustrate the benefits of pre-qualifying for a loan. We'll also help put you in contact with a qualified lender to obtain financing and a complete estimate of closing costs, including loan fees, prorations and escrow fees.

• Make appointments for you to see homes you're interested in and give you vital information about the real estate market and values.

• Provide information on real estate taxes, utility costs and other pertinent information to allow you to make the most informed decision possible.

• Professional agents disclose all adverse facts known regarding a property's physical characteristics.

• Once you've found the right home and are ready to make an offer, we'll prepare the contract according to your directives, explain real estate procedures common to the Denver market and deliver your offer to the seller's broker for consideration.

• After the contract has been accepted by the seller, we'll help you arrange for a qualified home inspector to inspect the property and guide you through the entire contract process in order to meet deadline requirements and contact conditions.

• As real estate professionals, agents use care and skill in performing these duties and maintain the highest degree of honesty and professionalism throughout the transaction.

• We stay in touch with you from the first day of your search until the day you settle into your new home. Our service doesn't stop at the closing.

The debate over real estate broker commissions has been going on for the last 30 years, and I'm sure it will go on far after I've retired. Critics say the Internet has changed everything. The market is different; buyers and sellers are more educated then ever, and, like it or not, the business of real estate will never be the same. My answer to those claims is yes, all those statements are true. More people are educated about real estate then ever before and the Internet is largely responsible for that. But I think that's great because working with educated consumers makes my job easier. The business of real estate is constantly changing, yet in my view that's even more reason why it's important to hire a professional real estate agent that works in the field full-time and keeps up with these changing conditions and trends.

Next week we'll talk about why selling your house for the wrong price could be your biggest mistake.

Who wants to pay big commision? part 3

Daniel Polimino (Fuller Towne and Country Properties) — Sun, 28 Oct 2007 22:15:59 -0500

Who Wants to Pay Big Commissions? Part 3

This week we examine the question: What does a real estate agent do to deserve that big commission? We've touched on this topic in the previous two weeks, and you can read those blogs by clicking on the archives button at the bottom right of this page.

If you simply want to cut to the chase with quick bullets describing what a listing agent does to justify his or her commission, here goes.

Present to you the best plan for marketing your property.

Provide a current market analysis and summary, and help you determine the most effective listing price for your property.

Review with you financing alternatives so that you can decide which methods will best sell your property.

Furnish an estimate of the proceeds you can expect from the sale of your property.

Review with you strategies for enhancing your property in order to achieve the highest possible sales price.

Make available to you a home warranty plan, which will help attract more buyers and minimize potential future liability.

Promptly submit the required information on your property to the local multiple listing service.

Place an exclusive "For Sale" sign and brochure box on your property (subject to local ordinances) showing the agent's contact information so that he/she can receive all phone calls in order to qualify buyers.

Make available to local and out-of-town buyers a description and other pertinent information about your property.

Arrange for an assessment of your property's value by fellow broker associates and report to you their recommendations.

Arrange for your property to be advertised as soon as possible in weekly newspaper ads and on the Internet.

Distribute "Just Listed" notices to appropriate areas ... to make prospective buyers aware that your property is available.

Promote your property to fellow broker associates and to other reputable brokers in the local market area.

Arrange for open houses to be conducted if and when appropriate, and as agreed to by you in advance.

Pre-screen prospective buyers before showing your property, and strongly encourage other sales associates to do the same in order to avoid unnecessary inconvenience to you.

Provide you with a progress report at least every week to communicate current market conditions and buyer activity that applies to your property.

Review with you all purchase offers as they are presented and assist you in all negotiations. Upon agreement and acceptance of an offer, monitor the progress of the purchase contract and keep you informed throughout the transaction.

Provide you with information about relocation services.

These are just a few things a real estate agent does for you when selling your property. For those folks looking to purchase a home, there's an equally impressive list of services an agent provides. We'll take a look at that list next week. The key thing to remember is the agent selling your home not only has the responsibility for these services, but also for the out-of-pocket cost of marketing your home. Review last week's blog about the difference in hiring a real estate company that merely lists your home versus hiring a real estate company that actually markets your home to sell quickly.

I would consider it a pleasure to represent you in your next real estate transaction. If you would like to speak with me regarding the sale or purchase of a home, please contact me at 303-522-1161 or dpolimino@fullerproperties.com. Take a moment and visit my listings by clicking on the button to the right labeled "Dan Polimino's listings."

Who Wants To Pay Big Commissions? Part Two

Daniel Polimino (Fuller Towne and Country Properties) — Fri, 19 Oct 2007 17:44:49 -0500

Last week we talked about the implications of listing your home with a low priced real estate broker. We discussed how negotiating down the agent's commission impacts your results. To review that blog, see last weeks blog post for "Who Wants to Pay Big Commissions? Part 1"

Now, let's consider some steps that go into selling your home. First, ascertain the market. Is it a buyer's market or a seller's market? When people are getting full-price offers or they have buyers willing to out bid each other then you're in the midst of a seller's market. Those conditions don't come around too often, but when they do you might sell your home right away no matter who lists it. A buyer's market is more common and means there are plenty of homes for sale. The buyer can be picky and offer whatever they feel like for a house knowing that even if the offer's rejected the home will still likely be on the market in another month in case they decide to offer more. In most places around the country we're currently in a buyer's market, so in order to sell your home picking the best real estate agent is even more critical.

Next step: Decide if you want to hire a listing company or a marketing company. Don't know the difference? No problem. Here's the scoop. A listing company is usually a discount brokerage firm that does nothing more than put a sign in the front yard and lists your home on the MLS and a few other real estate sites on the Web.

A marketing company, on the other hand, creates a strategy to sell your home for the highest price in the shortest amount of time. This plan could include advertising in the company's monthly magazine mailed out to thousands of people, advertising in local newspapers and on the Internet. Other options include ads in national magazines like the duPont REGISTRY^TM, a real estate broker open house, an agent's physical tour, online virtual tour, customized brochures, and oh yes, the yard sign and MLS listing. Of course, not all customers need or want some of these more sophisticated marketing techniques so consider yourself an active participant in directing the marketing plan and budget.

Next week we'll answer the question: What does a listing agent do to deserve that big commission?

Who Wants To Pay Big Commissions?

Daniel Polimino (Fuller Towne and Country Properties) — Wed, 10 Oct 2007 14:04:36 -0500

So, you're selling your house and looking for a real estate agent that is offering a discounted commission rate. You've decided there's no way you'll pay a full 7 percent commission, or even the 6 percent rate that most agents pitch as part of their fees.

You would, however, consider 5 percent or less. Let's take a look at this commission strategy and see if it really does save money and sell your home at the same time.

First, let's gets agree on two important points. You want to sell your home for the highest price possible and the real estate agent wants to sell your home for the highest price possible! Secondly, the commission percentage is the incentive for the agent to sell your home. Great. Now that we all agree on these two points let's move on to what happens when you find the low price leader of real estate agents.

By negotiating down the commission price on your listing you are actually taking away the agent's incentive. I thought the idea was to entice your agent to work harder, but this is a clear message to the real estate agent to work to harder on someone else's listing, particularly someone paying them more than you are.
The listing agent deserves more money than the agent bringing the buyer. For example, let's say you negotiated down the commission on the sale of your home to 5 percent. We'll divide it evenly with the listing agent getting 2.5 percent and the buying agent (agent bringing the buyer) getting 2.5 percent. Now you've placed all the risk with the listing agent. You see, the marketing plan to sell your home in a city flooded with listings is going to cost money. The money and time required to execute a successful marketing campaign will come out of the listing agent's pocket. That agent also has a slew of other duties to perform in order to make sure your house sells (all of which I'll list over the next couple of weeks on this blog). The buying agent simply pulls up your home on the multiple listing service (MLS). If it fits the client, he or she will bring the client for a showing and then write a contract. Very little expense, very little risk. In fact, it's good to be a buying agent instead of a listing agent. In the final analysis, much more risks, expenses and time are involved with being the listing agent. So why would the buying agent deserve more money in this transaction? You may be thinking why not give a higher percentage to the listing agent and a lower percentage to the buying agent. Remember, the idea is to entice an agent to bring a buyer. Going lower than 2.5 percent is not going to entice anyone.
Cutting the total commission on your home screams to an agent, "Please do as little work as possible!" An agent who has to cut their commission to obtain your listing is probably going in with the mind set that they'll do as little as possible once they get the listing. In fact, I can almost guarantee their plan of attack to sell your home consists of putting a sign in the front yard and listing it in the MLS. And the truth is if that's all you're getting for 5 percent, you've paid too much. There are plenty of "Help You Sell Your Home" type companies that do the same services for far less than 5 percent.

Come back next week and I'll tell you the difference between hiring a listing company or a marketing company to sell your home. One sells your home fast; the other might never sell it.