By now, many of you have heard the story of DUKE, who we adpoted one year ago. Duke is a Golden Retreiver/Shar Pei mix who has the disposition of Budda and loves tummy rubs and peanut butter.
He was abandoned in Texas, and we got him last year during the weekend of Hurricane Ike.
We've entered Duke into the "Cutest Dog Competition" as a way to support orgasnizations that resuce dogs. If Duke hadn't been rescued and found his way into our household, we'd be the poorer for it.
If Duke manages to garner any winnings, we'll make a donation to two excellent local shelters - The Denver Dumb Friends League and the Max Fund. The top prize is $1,000,000!
Here's how you can help. This contest is all about social networking. There are thousands of dogs entered every week for twelve weeks. Today begins week 6.
During this week, everyone can vote for the same dog once a day every day. Please sign up and vote for DUKE F!
The main contest site is: www.CutestDogCompetition.com. You can also go there and search for DUKE F. in the "Cutest Gallery."
Help us raise money for resuced animals and the organizations that rescue them! Vote for DUKE F. once a day every day this week! It would mean a lot to him:)
Also, please pass this message on to anyone who you think might be interested in helping Duke. Tweet it! Put it on your Facebook! We'll need in excess of 3,000 votes to win - that's a lot of you clicking away.
A broker in my office came to me yesterday with some questions about a seller’s recourse if the loan doesn’t fund at closing.
Colorado is a “table closing” state, and our contract expressly states that the buyer must attend the closing with all moneys and documents. This means that if a closing is at 4 p.m. on a Wednesday, as this broker’s closing was, the buyer and the buyer’s lender must perform under the terms of the contract at 4 p.m.
This lender had a lackadaisical attitude, ignored the new HERA/HOEPA regulations and essentially didn’t do his job. He was told on August 23rd that there was a slight change in the final figures, but he failed to disclose the change to the buyer.
Under the new regulations, any change upward to the buyer’s APR (over 1/8%) must be disclosed in writing to that buyer and the closing can’t happen until 3 days after the disclosure is made.
The loan broker did not disclose the resulting change in APR to the buyer until yesterday, the day of the closing. Actually, it was the second date for the closing, since this lender also didn’t order the appraisal on time (another story.)
Real Estate Buyers - Caution!
You are at risk to lose your earnest money in Colorado if you aren’t prepared to close at the date and time the closing is scheduled in the contract. In this case, the earnest money was $8,000. You lender and your real estate broker must be watching out for you and advising you. How could you possibly keep up with the changes in our industry? It’s obvious that many lenders and real estate brokers aren’t even keeping up. If the real estate broker in this instance had been on top of her game, she would have hounded the loan broker to get his disclosures out.
Her managing broker is helping her out, and using this as a “teaching moment” by paying the sellers’ damages. This equates to their loan per diem until the closing and various other pro-rations and charges. He’s a good broker and stepped up to the plate immediately because he understood that we must not stand in the way of a buyer and seller finalizing the transaction, or risk our clients’ earnest money. I’m sure he’ll also go after that lender for leaving him hanging in the wind like that.
This added level of complexity makes it more essential than ever that you hire a professional and seasoned real estate broker and that you listen when they tell you what to look for in your lender.
Denver real estate is in recovery. We’re the baby sapling, taking root and growing strong.
The thing is, we never totally crashed and burned like other cities did. Prices went down for sure and according to yesterday’s S & P - Case Shiller Report, we’ve seen depreciation of 4.9% since this time last year. Compare that with Phoenix, down 35.3% year over year.
Since last month, Case Shiller reports that Denver’s prices have appreciated 1.5%. That’s an awesome bounce. Some analysts think this may be a seasonal adjustment, and may not signal a recovery.
I disagree.
Our available inventory hasn’t risen significantly this year. We didn’t experience the typical big bounce in available listings in the Spring. For that reason, we’ve been able to stabilize the market. The ratio of properties available for sale and days on the market is stable. We still have a stratified market, and we need to see high end properties shake out some inventory.
High end sales are increasing slightly too.
I looked up Park Hill and Hilltop sales since April yesterday, several million-plus sales have been recorded. Jumbo rates have become more competitive in recent weeks and there are cash buyers out there looking for a deal on their dream home.
Appreciation follows a reduction in time on the market.
As the days on the market have fallen, as we’ve begun to have multiple offers, as rates have remained competitive we’ve had appreciation re-enter the Denver market. We won’t get back to double digit appreciation very soon. But buyers beware - if you don’t get off that fence soon, you may be looking back over your shoulder in regret.
Margaret Jackson, the Denver Post’s Real Estate Correspondent wrote more about the S & P - Case Shiller Report in this morning’s paper. Read to the end!
Denver’s new Zoning Code is currently in the community feedback phase.
The new code has been in the works for several years, and Denver’s Zoning Code Task Force and the Community Planning and Development group are currently seeking public input. There have been several community meetings to review the code in specific neighborhoods, and you still have the opportunity to attend any of the remaining meetings.
The changes to the code will be quite drastic in some instances. Currently in Denver, we have R1 (single family), R2 (duplex or carriage house), R3 (multi-family) as our primary residential zoning designations.
If you are thinking about buying a property that is currently zoned R2 because you would like to build a duplex there or have your mother-in-law move into a new carriage house above the garage - beware! Your property could potentially be “down zoned” to single family after the code changes in the fall.
Become informed about the city’s zoning changes if you live in the city, or if you’re considering purchasing a property here. You’ll want to know how the new transit area zoning might affect your property, what zoning could allow next door or across the street, and what the planning committee means by “areas of stability.”
Highest and best use might not be as high for some properties after the zoning code is changed. Other properties may benefit from a “better” zoning designation, increasing their highest and best use.
The web site for more information is www.NewCodeDenver.com. I plan on attending a meeting next week, and I’ll post more information then.
Yay! The market statistics are out for the month of April. This is always my favorite blog post of every month, and I wait with baited breath for the Metrolist stats to be put up on their site.
These statistics are based on homes listed for sale in the Denver MLS, and do not reflect private sales, many foreclosures or much new construction.
In April, our inventory remained about equal to what we had on the market in March. Combined single family and condo listings were at 20,628 in March and 20,705 in April. Sales have dropped from a year ago, but are up from last month. I showed a house to some clients this past Sunday, and when we called to tell the listing agent we had some interest I found out they already have 3 offers…
The most notable thing I see this month is the average days on the market continues to drop for single family homes. We’re at less than 4 months on the market, average, for most properties. This suggests that properties are selling much faster than they were, and is a sign of a market that is in balance. Even condominiums, where DOM have risen slightly since last month, are selling in less than 4 months, average.
It looks scary to see that we’ve dropped 17.56% in number of homes under contract, but as a percentage of inventory, we’re actually doing better. We had 25,030 active properties in April ‘08 and 6,093 were under contract.
Our high end of the market is still out of balance. There are $million+ homes selling, but buyers seem reticent to get into the market just yet and sellers are resistant to drop their prices any more. Many sellers in this price point have the financial wherewithal to hold out so we’re at a stalemate.
What does all of this mean for buyers and sellers? Many sellers are getting real with their prices or taking their homes off the market. I think that the lower price point is the hot spot, but since the average sold price for single family homes is up over 1% that may be a sign that the recovery is gradually trickling up to a slightly higher price point.
Spring is here, buyers need to get off the fence quickly. The current combination of low rates and low prices can’t last. If the economy at large stabilizes (the DOW was up again today) then rates will begin to creep back up. You’ll stand to lose a lot of buying power that you have right now. With Denver Real Estate sales showing more and more signs of life, we’ll see more than a 1% jump in average sales price.
Real estate is not scary, if you are wise and educate yourself you can make a smart real estate decision.
Downtown Denver has seen several developments taking shape. Once particularly interesting building is Spire.
Developer Randy Nichols is building a mid-priced condo development aimed at the average price range for a downtown buyer. The development is rapidly rising across from the Denver Convention Center and includes cool amenities like loaner cars and a doggie park on one of the decks.
With 41 stories (483 feet high) and 503 homes (714 bedrooms), Spire will be one of the tallest residential buildings in the Western United States and the first new residential high-rise to be built in the central business district of Denver in decades (24 years). The sales office is now open across the street from the building, and Chad or any of the staff will gladly give you a tour through the models.
Our entire office was invited down for lunch and a tour recently, and we had a great time learning about the Spire development and the city’s idea to make 14th Street a “mini Times Square.”
Denver Real Estate and development is ever changing. We’re fast becoming a city to envy - and the mountain views from Spire will prove that. Downtown Denver is being transformed from a sea of office high rises to an extremely livable and walkable city. Get down there and enjoy!
You’re thinking about buying Denver Real Estate and you’re ready to hire a broker to represent you. What you need to know is that we have very specific rules here in Colorado about disclosing and explaining the rules of Agency to our clients and customers.
There are 3 very important reasons to understand the Colorado Agency Rules before you get started:
1. Is Your Broker a Coach? I like to explain to people that an Agent (a Buyer Agent or a Listing Broker) is like a coach. We have a fiduciary obligation to represent your best interests, negotiate on your behalf, uncover issues with the property that are discoverable and disclose any pertinent information we might have or learn. Your coach puts you in the game, advises you how to play and roots for you all the way.
2. Is Your Broker a Referee? If your agent is working for you as a Transaction Broker (sometimes called a TB) then you can think of her as the Ref. The referee runs up and down the field and makes sure the game is played fairly. A TB will owe you the duty of honest and fair dealings, but will not be able to advise you or represent your interests. It’s required that a broker who is working with both the buyer and seller either be a TB or keep the Agency relationship with one client and treat the other as a “customer” - someone he has no brokerage relationship with at all. It’s not inherently bad to have your broker be a TB, but always ask in what capacity is your agent working with you.
3. Do You Have Anyone in Your Corner? If your broker is representing the other party as an Agent and treating you as a customer, you might want to rethink that relationship and get some help and advice. I’m always amazed at the people who will walk into an open house, say they want to make an offer, but also say they want to do it on their own to, “save the co-op commission.” People, really! This is probably the most complex and expensive purchase of your life! Get someone who understands the ins and outs of real estate to help you. If you like the broker at the open house, ask her if she can be a TB (her sellers would have to agree.) You can also ask her to make a referral for an outstanding Buyer’s Agent. You might even want to engage the services of a crack real estate attorney. We aren’t required to use attorneys in Colorado transactions, but someone should be in your corner.
For more information on Colorado Agency Rules, you can visit the Colorado Real Estate Commission site. And one more thing - these disclosures are supposed to be made in writing! Ask your broker for the Definitions of Agency if you’d like a more thorough description.
I was interviewed a few days ago by Lane Lyon of Channel 7NEWS.
Below is an excerpt of the report that aired as the lead story.
Denver Real Estate trends are reported here every month and the March analysis was just posted last week.
Channel 7 - Real estate agents aren’t shy about discussing a red hot market being felt in the lower- and some medium-priced segments of the housing market. “In fact, one of the agents in my office told a story this morning about how they were in bidding war and there were eight offers on the property,” said Gretchen Faber, Broker Manager with The Kentwood Company at Cherry Creek.
Faber said the property was listed around $250,000. Properties that are moving faster seem to run from $150,000 to $400,000, Faber said.
“That’s the segment of the market where we’ve seen multiple offers, buyers having to make quicker decisions. The good properties that show well and are well-located are selling,” Faber said. “The higher price range is picking up, but it’s still a slower segment of the market.” According to data released Tuesday by Metrolist, the average price of a single family home last month was $232,395, which is up seven percent from February. The housing report also showed that listings under contract were up 15 percent last month compared to February. Sales volume, or the amount of homes that were closed on, increased 29 percent. Sales were down 14 percent when compared to March 2008, the report showed. The single family home designation includes both residential and condominium properties.
“We have a good combination of affordability and low interest rates,” Faber said. She anticipated that overall market conditions will follow the positive strides being made now with lower priced properties, and said Denver is routinely ranked high in national studies in terms of market recovery and a place to buy property. “I think Denver is a good bet,” Faber said.
Forbes Magazine mentions Denver in this week’s article about the most stable cities in the U.S.
Search for Denver Real Estate and use the cool mapping tool to locate exactly where you want to be.
We’ve been busy with open houses, buyer inquiries from the internet, and people generally excited about the low interest rates. Rates are unlikely to fall any further, and prices are also unlikely to decline a whole lot more.
Be aware that most people look backward and decide they “should have.” Perhaps if you aren’t interested in moving, you might like to invest in a rental property. Did you know you can do just that with your IRA or 401k money?
Send me an email and I’ll be happy to help you find the perfect property!
Have you heard that yet? So have I, but guess what - we’re still selling homes in Denver!
I’ve said it before, Denver is weathering the storm better than many other areas. It’s not only me and other exuberant Realtors pushing an agenda - read it in the NY Times and see it on NBC - Denver’s stability is news.
Still, our higher priced homes are taking longer to sell and have fewer showings while they’re on the market than the mid-priced homes. Medium priced homes that are overpriced relative to their competition are stalled too. It’s a buyers market!
A seller recently asked, “rates have come down more, why should I drop the price of my house now?” Uh, well Mr. Seller, because if you can’t get showings now, when Mr. Buyer’s purchase power just went up again - you’re overpriced!
I really wish it weren’t so. I wish your home and mine were still appreciating at 10% a year. I wish that you could get “what you need” or “what you paid for it” or “what your neighbors got 18 months ago.” I would love to skip the part of the listing presentation where I tell you your house is worth $400,000 less than you want me to list it for. I have some wonderful listings that we priced 18 months ago that could have benefited from my crystal ball (it’s been on the fritz lately). I might have suggested back then that we not be quite so aggressive.
I’m suggesting it now. Two weeks ago I essentially walked away from listing a house that I’ve always loved when I drove by. I had to suck it up and deliver the news to the sellers what today’s value is. I knew that would be the kiss of death, that they would pick the broker who told them what they wanted to hear. It’s listed now for $250,000 more than it should be.
Strike while the iron is hot. Drop the price until you get showings. After 25-30 showings, drop it again if you don’t have an offer.
I’ve closed 4 sales in the past 40 days - all high priced homes relative to the average in Denver. What got them sold was that they were aggressively priced relative to their competition. As rates go down and buying power goes up, use that to your advantage to gauge where the market rates your house a value. Get your price there and you will sell it.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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