8/12/2010
Now more than ever, the importance of really preparing your home for sale is being driven home by what is selling well and what isn't.
With buyers having a lot of homes to choose from, they have become pickier than ever. Some things are pretty easy to do and inexpensive, whereas there are other things which are more in the nature of improvements, and those more often than not are beyond what most homeowners want to do in order to sell. We'll look at those next time, but this go-around, let's stick with the "easy things". Stop me (so to speak) if you already know these things, or just consider them a refresher. I'll do them in some order of most bang for the buck.
1. Paint anything that you think might be objectionable to a buyer, either because its worn, peeling or just a very personal color. Each room could average $300ish.
2. Clean the carpets if there are any stains.
3. Declutter. You can box it up and put it in the garage. It won't bother a buyer to see it in there.
4. Get the windows cleaned in and out if necessary, or at least out if that's the bad part. $300? depending obviously on the number of windows you have.
5. Be sure the grout and caulk in the showers is very clean and fresh. Regrouting could run $400?
There are lots of other things that come to mind, but these might be first priorities. Yes, it may mean spending anywhere from $500 to $3000 (or more) to get ready, but if you don't , then the house could easily be discounted by buyers in double, triple or quadruple the amount you don't spend. Call me and I'll help you with the details and names of people who can do the work for reasonable prices.
What's on the nightstand? I just finished the book 1491 which takes an incredibly interesting look at the native peoples of the Americas before Columbus and the gang changed everything. The author is Charles Mann.
7/8/2010
The new market reality is that there are actually 2 distinctly different real estate markets that the uninformed observer wouldn't readily see. Whereas in past years, back when the market was booming, buyers would make a lot of trade-offs on price, condition and location because they always figured the appreciation in the market would take care of them. These days, the buyers' market psychology is quite different.
The 2 different markets can essentially be summed up as this: there are homes that are either A) beautifully updated AND well priced, or B) in average (or less) condition and very much discounted. The market is not being kind to this latter group and even if your home is in the "A" category, most sellers are still finding that it takes an all-out effort and a competitive price.
The advantage is on the buyer's side for about 80% of the listings out there due to these factors. On the other hand, for that select 20% that has all the "right stuff", things seem pretty OK,but as I said, still need to be very well positioned price-wise to the competition.
If you want to know where you fit in, give me a call. After some 20 years of helping people through all kinds of markets. I've got a good read on the facts.
6/5/2010
If you'd like to, please refer back to my entry of 2/23/2010 with the Denver Post quoting me as essentially saying that the tax credit ending 4/30/2010 was most likely "robbing Peter to pay Paul" by pushing market activity forward and leaving demand weak in the following months. Unfortunately, I was correct (please tell my wife that I am, sometimes) and what we have seen since May 1 is a very noticeable drop-off both in the showing activity, and in the number of houses going under contract. How long will it last? Hard to say. I am an optimist, but I'm also a realist, and if I had to bet on it, it may be a long wait until things turn around. It's really about jobs and growth at this point. In the meantime, there may be some pain.
One of my clients, Tucker Hart Adams, was an economist for some big banks, and would be quoted some years ago as predicting a downturn and some trouble. The media labeled her "The Duchess of Doom" simply because she refused to see everything through rose colored glasses. Most of us don't want to face the music, but it plays with or without us.
Properties that have exactly what todays buyers are looking for still are selling pretty well. But what a weaker market does, is to discount, sometimes severely, those that are outdated, or poorly located. Its almost like Stocks, and a "flight to quality".
Whats on the night stand? Just finished another of Hampton Side's books;" Hellcat on his trail" about the assasination of Martin Luther King and the search for his killer, James Earl Ray, which over the course of 3 months proved to be the biggest FBI manhunt in history. Hampton has to be one of the best writers of his kind out there today.
Call me if I can answer your real estate questions. Thanks for tuning in, and have a great summer!
5/11/2010
Now that the previously discussed(4/25) tax credit is history, only a bit of time will tell what impact it really had on the market. it does seem so far however, that the number of showings has dropped off a bit since the expiration 10 days ago. It's still too soon to say. On an encouraging note, I read today that Denver is ranked #2 in the country for inward migration. I can't venture whether that is good for the city or not, but it is healthy for the real estate market. After all, everyone needs a roof over their head. Check out a couple of sweet new listings under the Featured Listings link, including 833 Harrison St and 1608 Cook St.
4/25/2010
Withonly a few days left until the government tax credits expire for home buyers, it appears that market activity has picked up more than usual, as buyers rush to find a property to get under contract by the April 30 deadline with a closing by June 30th. At this point it doesn't seem there is a lot of political support for extending it again, although the usual suspects (builders, lenders, Realtors) would like to see it happen. I, for one rarely agree with the Realtors on much of anything, as I feel it's time we all started doing what's right for the nation, rather than the special interest groups and political action committees. ( ok, I'll get off my soap box)
Eventually housing prices are going to have to find their true level without the benefit of outside programs. So where does that take us? Who knows? But the good thing is that Denver is a desirable place to live, people want to move here, and the dream of home ownership remains strong in the American psyche. That should keep our market in good shape for the forseeable future. Only time will tell.
On the neighborhood front, did you know that our Tattered Cover is now also trading in used books. How cool is that?! Just another example of technology changing the way we do business. With Ipads and other electronic readers, not to mention the internet, the future of reading will never be the same.
3/17/2010
Happy Saint Pats Day! Let's take a quick look at what has been happening in the market So far this year. In our immediate area there have been 12 properties sold and closed, and there are currently 13 under contract pending to close soon, including my 860 Jackson and 1320 Adams. The listing inventory is at 46 active which includes my 1244 Milwaukee for $434,900, and next week I will add 780 Harrison for $349,900 to the list. Median sales price is $355,000, Average days on the market is 61days, but as usual, the median days on the market is less because of good listings selling quicker, at only 37 days. Average price per sq ft has dropped a bit to $233. Please call me if you have questions on the market, or the data. Thanks as always. John
2/23/2010
Here is a recent article in the Post wondering about what happens to the market after the government tax credits expire this Spring. I am quoted toward the end of it, but I have to admit, the answer is largely anyones guess.
1/28/2010
The majority of closings occur at the end of each month, so next week the data will be in for January and we can see how the first month of the year kicked off. As always, there is the "good news/bad news" side of things. Here's some of the good news: the Case-Shiller Home Price Index ranks the Denver area housing market as #3 for improvement out of 20 large cities that it tracks. According to them, the price index rose 1/2 of 1% for the year 2009. Sure beats 16 other cities that continued to show a loss for that period.
Meanwhile, the Denver Post business page headline of January 8, 2010 shouted out "Home Resales plummet". It went on to say that sales were down in the metro area by 12%. I'm not a big critic of the Post, I like the paper. But I don't know if I'd consider that a "plummet" particularly in view of all the economic upheaval of the past 18 to 24 months.
I've coined a word for what is going on. I don't think we're in a recession, but rather a regression. What I mean by that is that many people are going back to some "old fashioned" thinking (or is it fundamentals) about: debt, value, consumption, wants vs needs, etc. Maybe they are "regressing to the norm" if I remember my math term correctly. In fact, if you were to look at a graph of Metro area sales since 1991, 2009 equals about the same (42,070 sales) as sales in 1997 before the funny money/easy credit began to explode, pushing everything higher than it would have been otherwise. So, do numbers always go up? I don't hinkso. Stay tuned to my next blog with the facts and figures from 2009.
What's on the nightstand: friend and local lawyer/author, Harry Macleans' book, "The Past is Never Dead". A great read about Mississippi today and it's struggles for racial progress as it prosecutes for race murders dating from the 1960's. Info at www.harrymaclean.com.
1/6/2010
Now that we have 2009 behind us, most of us are looking forward to seeing what 2010 has in store for us. The general consensus in the real estate industry seems to be that this year's market may be one that is somewhat "Front Loaded". The reasons for this are two-fold: First is the notion that the Government's tax credits for home buyers (see below) are to come to an end in 4/30 & 6/30 of this year. I am already getting calls from people wanting to begin their house search in order to take advantage of this. Secondly, and this of course is a big question mark, is the threat of rising interest rates. Will it happen? Of course no one knows, but the historical long term borrowing rate in the US is around 7% leading many to feel that we may be on borrowed time. See the Blog of 6/11/09 to read more on what this can mean to the market.
I am now taking new listings for the year, and just today put 860 Jackson ($429k) and 2635 S Pearl ($594k) on the market. Please call anytime if you are beginning to ponder a future move. Here's wishing you a Happy New Year!
11/13/09
As we approach the Holidays, the real estate market generally begins to slow down. Many homeowners simply decide to take their home off the market so as to not have to deal with showings during this busy time of year. Meanwhile, those buyers that are looking are typically pretty motivated to find something. Often they are out of town people looking to move to the area by the end of the year, or beginning of next.
You may have read in the news that the Federal tax credit program has been extended, AND expanded to allow more participants until April 30, with a closing by June 30th. This should help prop up the market a bit, but the real question is how long can the Government keep this all going?
I'm preparing 2010's marketing plan now for my clients that are looking ahead, so please feel free to get in touch with me if I can help advise you on how to best get ready for the Spring market.
10/6/09
The market since Labor Day has held up pretty well, withthemajor strength being in price ranges under $400,000. The reasons for this are varried, but alotofit has to do with the simple fact that alotmore people can afford that lower price range, and the government has been helping out withafirst time buyer tax credit of up to $8,000. So far this year there have been 96 closed transactions in the area of Congress Park, and 52, or more than half, were below the 400K mark. From 400k to 500k there were 25 sales, 500k to 600k, 10 sales, and finally above $600,000 there was a total of just 9 sales. With just 3 months to go in the year, it will be interesting to see haw the final numbers end up. I'll keep you posted.
8/25/09
Labor Day is just around the corner, and while many of us feel that summer is sort of over, there is still plenty of good marketing time ahead for getting properties sold. As always, the most critical aspects of selling (pricing, marketing, negotiating) become maybe even a little bit more important this time of year, bcause the time line is generally to get it all successfully accomplished before the holidays.
Every Monday morning, the first thing that I do for the week is to do a thorough search in the MLS system to see what new is happening statistically with listings and sales in our area, and to then set up previews for myself so that I can properly help buyers and sellers with questions of value.
A couple of statistics that always jump out are: 1) final sales price to original listing price : 90.5% on 8/25 meaning that many started too high, and 2) the median and average asking prices to the median and average sales prices. 445k/579k vs about 400k and 405k on the solds which points to the fact that the less expensive end of the market, is the stronger segment.
OK, Summer fun: Climbed New Mexico's tallest, Wheeler Peak with my friend Peter Leonard(Leonard) and rode my bicycle over Trail Ridge Rd to 12,200 ft in Rocky Mtn Nat'l Park last week.
Need a good read? In The Lost City of Z, a British explorer named Percy Fawcett, searches the Amazon for what he believed to be a lost civilization during the 1920's and was ultimately lost and never found, making for one of the big mysteries of the early 2othcentury. These old time explorers were the real deal, with no TV cameras following them around!
8/7/2009
If you missed it, my July 4th postcard had a summer market review for our immediate area, which went as follows: SoldsYTD=51, Properties about to close=24, Median sold price=$400,000, Highest sold price=$893,000, and the number of homes currently on the market=53. It's worth taking another look after labor day to see where things are at, so stay tuned.
Meanwhile, while riding my bicycle up Trail Ridge Rd with a commercial lender friend of mine, it was interesting to hear about the commercial market whoas. He says there are currently 58 vacant "Big box" stores vacant in the Denver area, and that places like NYC have seen values down as much as 50% ! (and we think we have problems)
So forget about real estate and read a great book .I just finished: Blood and Thunder by Hampden Sides, an editor at large for Outside Magazine. It's a fabulous account of Kit Carson, and the "taming" of the West. While you're at it, go to Taos and Canyon De Chelly to put it all in perspective. Hope you are having a great summer!
7/21/2009
As the summer rolls along, the market, as usual, has slowed down just a bit from its Spring season momentum, but this is pretty typical for July and August. Interest rates, after bumping up a bit, have held pretty steady at about 5.25% for both Conforming conventional, and the government backed FHA program. The biggest strength in the market remains in the price ranges below about $400,000, and where homes can be bought for less than $250,000, in places such as Lakewood, good homes move very fast. A huge glut exists for the 1 million plus range, and it could be several years before we see any real change in that sector.
6/11/2009
Interest rates unfortunately have begun to creep up a little from their historic lows, and are now around 5.75%, still a fantastic rate, but not the 4.75% that many were getting used to. So what does a 1% increase really mean? Well the real increase in dollar and percentage terms of 1% on top of 4.75% is = to an increase of 21%! (1.0 divided by 4.75=21%) Increases such as these can , and will effect the market one way or another.
6/05/2009:
Below is a graph from an interesting article I recently came across. Another reason to love Colorado. Click here for the complete article.
5/12/2009:
Activity in our Congress Park area has shown market improvement since about late January; with the number of sales picking up, days on the market going down, and sold price to list price going up.
So what market is it? Well, it's not a seller's market, but for many properties, it's not a buyers market either. Buyers all want the best property, best value for their money.
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