Just My Opinion

Summer is the best time to sell your house (a Colorado urban legend debunked)

Leah Thomas (Real Estate - Your Way) — Fri, 04 Feb 2011 15:06:34 -0800

It has long been a supposed "known fact" that most people sell or buy homes in the summertime. School's out, the weather is nice, time for a change. Sellers tell me all the time that they are thinking about waiting until summer to list their home.

I think we can all agree that numbers do not lie, so here are the actual facts for you. In the Denver metro area, most homes sell in the months of March, April and May. So, if you are going to give yourself the best odds, the time to list your home for sale is February. (You may want to have some summer pictures on hand to put in the listing, another blog topic.)

Still not convinced? "The weather is bad", "buyers won't look at houses in the snow", etc. Well, the majority of serious buyers will look at houses in a blizzard! Nothing will stop them. I have sold many houses in the middle of blizzards. The "not serious" looky loos will stay home and your time preparing for a showing will be for a serious buyer. The looky loos are waiting for better weather.

I'm going to wait for the market to hit bottom before I buy.

Leah Thomas (Real Estate - Your Way) — Sat, 11 Dec 2010 15:34:52 -0800

Can you handle the truth?

We'll know the market has hit bottom AFTER it's happened.

"I'm going to wait for the market to hit bottom before I buy."

Are you now? And when exactly will that be? Are you the one who hijacked my crystal ball? Hope that thing's working better for you than it did for me.

How will you know when the market has hit bottom? Will there be a memo sent out to let us all know it's on a certain date? Who is going to let you know? Will your Uncle Cecil's wife's, brother's, cousin-in-law's, niece's friend tell you?

Really. I want to know. How will you know when the market has hit bottom?

I know the answer. Are you ready for it? Can you handle the truth?

We'll know the market has hit bottom AFTER it's happened.

Yep. Simple as that. This is one of those things that cannot be predicted accurately. By anyone. Even me, and I've been doing this, well, lets just go with, long enough.

If you would like to buy a home it's a great time to do it. It's possible that it will be a better time in a couple of months. It's just as possible it won't. Is that a chance you can AFFORD to take? When those interest rates and home prices start ticking up and your payments jump a couple hundred dollars -- will having waited really be a benefit?

I'm fine if you choose to wait. You need to do what's best for you. But if you're banking on buying when the market hits bottom -- well, at a minimum, you'll be a day late and a dollar short.

I'm just sayin'. . .

***********************************

Tish Lloyd, REALTOR®

Broker

NC Real Estate Lic. 269076

Prudential Laney Real Estate

527 Causeway Drive

Wrightsville Beach, NC 28480

910.547.1446

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A house-flipping tale of whoa

Leah Thomas (Real Estate - Your Way) — Tue, 28 Sep 2010 13:03:49 -0700

Thinking about trying your hand at house-flipping? Or have you already taken the plunge? Yes, there is money to be made, but only if you do everything right in the right order.

I just consulted with a lady, let's call her Sally (name changed to protect the innocent) that did some of these things in the wrong order and skipped some of them completely. She cost herself $40,000-$50,000 in profit on a $160,000 property by not making a plan or a budget. She blindly made an offer on a HUD property without doing some research and by trusting the wrong real estate agent, let's call her Trixie (name is changed to protect the guilty).

These questions are not all the things that you need to consider, but should give you a good idea of the realities involved.

•1. Make a plan

Know who you can trust to help you with the project. Will you do some (or all) of the work? Will you need a contractor for the hard stuff (plumbing, electrical, roofing)? Who will that contractor be? Will they be available when you are ready for them? What will they charge you? How will you finance the project? Will the area zoning board and/or HOA allow you to make the improvements that you want to make? What real estate agent can you trust to advise you on some of these decisions, locate an appropriate property and sell the property after you make the improvements?

Sally did not make a plan and picked an agent (Trixie) off the HUD website.

•2. Develop a basic budget estimate

Know the basic numbers before you even look at properties. How much can you afford to pay? How much will you put into the improvements? What will be the cost of financing? What will the building permits cost? What will be the cost of selling (agent's commission, title insurance, tax proration, filing fees)? How much will the home sell for after the improvements are made? And most important of all, how much will your profit be? If you do everything else right, but fail to consider your profit expectations, you just made a very uninformed decision. Is this venture going to be worth your time and money? Have your contractor and real estate agent review your estimates.

Sally did not have a reasonable budget and did not ask any questions of Trixie. Trixie did not provide any guidance or counsel on Sally's goals in the purchase of the property.

•3. Locate a property

Know the neighborhoods that you are considering. Do you and the contractors have easy access to the property? What improvements would be appropriate for the neighborhood? What would constitute over- or under-improvement in this neighborhood? Are there any safety considerations that need to be addressed? What is the demographic of the neighborhood? Who will your possible buyers be? Do buyers in this price range expect granite countertops and high end appliances? Or will they be first time buyers with lower expectations? Your real estate agent can advise you on some of these answers.

Sally did not consider what would be appropriate improvements for the neighborhood and spent too much. She did not consider who the potential buyers might be.

•4. Make an offer

Once you've located a property, plug some actual numbers into the budget that you estimated earlier. Again considering what the house should sell for after the improvements are made. Is your profit expectation reasonable or do you need to make adjustments in the budget? What is a reasonable offer considering what has sold in the neighborhood recently? Have your contractor and real estate agent look at your revised budget estimates. They may see something that you missed.

Sally wanted to make an extraordinarily high bid on the HUD property based on rumors that HUD homes were in high demand and Trixie went along with the extraordinarily high bid and did not research what a reasonable offer might be and advise Sally.

•5. Making the improvements

Back to the budget. Is it on still on track? Are some improvements costing more that you estimated? Will you revise your plan based on the new information and spend less on something else? Or will that extra cost just come out of your expected profit? Can you just add the extra cost on top of your sale price? Again, consult your real estate agent as you revise your budget.

Sally did not consult her agent, since she had not heard from her since she bought the house. She overspent on the improvements, since she had no budget or profit expectations.

•6. List for sale

By this time, you should know exactly what the home will list for, possible sale price and time frame for the sale. Should you have an expert stage the property or leave it vacant? Are there any incentives that you can offer a buyer to promote the best possible sale price and/or expedite the sale? Can you provide some incentive for buyer agents to show the property? What about internet marketing? Your trusted real estate agent can help with these questions.

This is the point in time that Sally contacted me. All I can do for her is damage control at this point. I can't get back the extra money that she threw away on the purchase or the over-improvements.

I am confident that the property will sell quickly, because Sally has excellent taste in decorating and over-spent on the property. I will go overboard marketing the property to prove to her (and the world) that all real estate agents are not like Trixie.

PS. I did not even go into the things that contractors can do to cause issues for you and your project. That would involve writing a book.

Where in Denver can you have your own lakefront home complete with a sandy beach?

Leah Thomas (Real Estate - Your Way) — Sat, 10 Apr 2010 14:51:13 -0700

Aloha Beach!

Aloha Beach is an exclusive, gated community along Lake Aloha and Lake L'Nor that most people (including real estate agents) are not aware of. Residents describe living at Aloha Beach as like being on vacation every day. Imagine walking on the beach whenever you want! Lounging on your deck and watch the sunrise or sunset. The fifty-nine homes were constructed with mountain views and entertaining in mind. Light, bright, open floor plans are prominent with high ceilings and expansive windows facing the lakes.

Residents also enjoy wading, swimming, canoeing, fishing, paddle-boating and other small, quiet water sports. Certain homes include water-ski club memberships at an additional yearly cost. If your home does not include a ski membership, there is usually one available to lease.

The neighbors are friendly and an atmosphere of community has been cultivated. Neighborhood get-togethers occur several times during the year.

Nature-lovers enjoy the islands on Lake Aloha and Lake L'Nor. The islands are wildlife refuges for the many species of birds in the area. Hiking and biking are close by at the Baker and along the Clear Creek trail.

Aloha Beach is located just north of Regis University on 62^nd at Lowell Boulevard. Residents are just 5 minutes from shopping and restaurants in the popular Highlands and Berkeley neighborhoods where a wide variety of excellent shops, restaurants, galleries and services invite exploration. All the amenities (or work if you must) in downtown Denver are just 15 minutes away.

In the future, the proposed Clear Creek Transit Village (60^th and Federal) will provide even more opportunities for shopping, dining and recreation.

So, if a low-stress lifestyle appeals to you, see the homes that are available right now in this exclusive community, Aloha Beach: Homes for sale in Aloha Beach

Winter home sales are better with summer photos

Leah Thomas (Real Estate - Your Way) — Sun, 04 Apr 2010 17:02:55 -0700

Most people think that most home sales occur in the summertime. In the Denver metro area, that's just not true. Here, buyers and sellers start the new year by thinking about changing their location. Historically, the highest percentage of closings occur in March, April and May. All that hard work you put into your landscaping will not be evident to buyers in the winter or early spring.

So, sellers, be prepared by snapping some high quality digital photos in the summer when your plantings and trees are at their peak. They will come in handy when you list your home in Colorado!

For instance, check out this home that I recently listedin Aloha Beach, Denver. The seller had photos of her wonderful landscaping taken last summer. I used her photos of the exterior, and had the indoor pictures taken by a professional. Her home is now presented in the best light possible!
http://www.postlets.com/repb/3598726

This seller is especially proud of the tree in his backyard that was really gorgeous in the autumn. Beautiful red leaves! http://www.postlets.com/repb/2652034

If your home is in the Rockies on a ski run, the snow covered photos might be the best; but down in the foothills or the Denver metro area...be prepared with your best photos for your home, summer (or fall).