January 28th, 2008 Bob
The CBS News Magazine did a piece last night on the foreclosure debacle in this country. Much of the segment focused on Stockton, California. The Denver real estate market was not mentioned.
I think we’re all getting accustomed to hearing about the sub-prime mortgage mess, but what I found interesting about last night’s report was the financial analyst who explained why this crisis is NOT simply an American crisis. These sub-prime mortgages were packaged into mortgaged backed security packages and then sold (as part of a complex basket of securities) to financial institutions all around the world including unions, pension funds, national banks, etc. Yes, national banks. Meaning foreign countries are currently holding large chunks of this mess. Meaning that if we head into a recession there is the real possibility that other countries may follow us to the extent that they hold these security packages sold to them by the big investment houses on Wall Street. A frightening prospect indeed.
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January 25th, 2008 Bob
News this morning of BuySide Realty’s sister company Iggy’s House withdrawing its IPO.
Iggy’s House is a company that allows home sellers to put their home on the MLS for free. The problem with that model is that it is so bare bones that it leaves way too much to chance. I would not even classify Iggy’s House as a discount shop, I’d classify them as a fringe concept. Lots of home sellers resent Realtors for the fat paychecks they get for selling a home. Iggy seems like an attempt to capitalize on that feeling and offer sellers something of perceived value for nothing.
Our Denver real estate company is a discounter. Real-a-Save proudly offers discounted fees. But we don’t discount our service. On the buyer’s side we’ll take our clients on as many home tours as they need. We handle all the paperwork as well.
On the sellers side about the only thing that we don’t offer is open houses. Open houses are a great way to let your neighbors satisfy their curiosity and see what’s in your closet. They’re also a great way for rookie agents to TRY to pick up buyer clients. Have you ever walked into an open house and been accosted by the agent? Asked aggressively for your contact info, then hounded to let them show you some other homes in the area. Me too. That’s why we don’t do them.
The take away here is that you can come up with great sounding concepts but to be successful you have to get your hands dirty and spend time with your clients making sure each one is treated like royalty. Concepts alone don’t make money.
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January 22nd, 2008 Bob
Boasting an historic downtown and 3,000 acres of parks and trails, Arvada is a popular city offering Metro Denver real estate shoppers some fantastic choices.
Arvada mixes old, farm-like homes with beautiful new construction seamlessly. And you’ll be surprised at how easily you can forget you are just s few miles from Denver when you drive through neighborhoods surrounded by open space, and lazy country roads that take you back in time.
This lovely town has something for everyone: from terrific investment opportunities, to mid-range family living, to gracious retirement. You won’t be disappointed with the sheer physical beauty, and incredible housing choices that Arvada has to offer.
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January 21st, 2008 Bob
Imagine walking into your favorite restaurant and ordering your favorite meal. Then, the waitress smiles at you and says, “Sure, no problem. I’ll ask the chef. He’ll let you know tomorrow if he thinks he can make your order.”
Well, that is exactly the situation when you deal with short sale properties and foreclosures. The bank has decided to sell a home. They put a sign out. They list it on the MLS. You make a reasonable offer. Now they make you wait for a month or more for a response.
Is that hard to believe? The Denver real estate market is saturated with short sales and foreclosures right now. It seems like we always have a few of these deals pending. And each and every time I will warn my clients that they are in for a long wait. But each and every time it still shocks me that it takes more than a month to look at a number and say yes or no. We’re currently well into our second month of waiting on a couple of deals we’re doing.
This is one area where the government actually has a more efficient model than the private sector. If you put an offer in on a HUD owned property, then you can expect an answer in about a day. Private bank? You’re gonna wait 3-6 weeks for a response.
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January 18th, 2008 Bob
Yesterday was quite the day on the stock market. Down around 300 points, reporters are now tossing around the word “recession” like it’s a foregone conclusion. Even the Presidential race is taking on the economy as a more pressing issue than the war.
What does news like this mean for the Denver real estate market? I’m guessing that we have another 18 months of increasing inventory, flat to decreasing prices, and continued foreclosures and short sales.
The truth, however, is that people will always need to buy and sell houses for one reason or another. The possible economic downturn does not mean the bottom will fall out of our local real estate market, rather I believe it means more of what we’re currently seeing, for longer than we initially expected.
It may be a good time to get into the market if you are a real estate shopper looking for a home to live in (as opposed to invest in) then you will find lots of inventory with really good prices. My advice is that you should be buying for the 7-year range at a minimum.
This is important: unless you are a professional you should not be purchasing homes to fix and flip. I’m seeing a decrease in the number of first-time investors who want to give fixing a try. and I’m advising the first timers that I do speak with to rethink their plan entirely and to sit things out for now. There are, however, lots of professionals making a living fixing up homes and selling them. But these are pros. The ones I am seeing are small operations who do much of the work themselves, with low overhead and a realistic sales price and time frame as an exit strategy. You need to have cash on hand to sit on your fixed up house for a longer period of time than in years past. The ones who realize this and can keep ALL of their costs down are still making money in this climate.
But there is also disturbing evidence that investors continue to make the worst rookie mistake possible: running out of money. Not a month goes by where I don’t show at least a couple homes that are half-way fixed up. Possibly on their way to a short sale, evidently because the owners ran out of money right in the middle of a fixer.
If you are buying for the mid to long term then you will find a great market and many prime buying opportunities. But investing is another story. Like Aretha says- you better think. Think before you make a huge gamble in this market.
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January 17th, 2008 Bob
There are pockets of strength in the Denver real estate market- places that draw residents to settle there regardless of what the overall trend in housing may be. Washington Park and Highlands come to mind when one speaks of neighborhoods in the Denver area that consistently remain strong.
The same rule applies to Metro Denver cities and towns. Places like Louisville seem to remain well positioned in the local real estate market. A few years ago Louisville was named the best place to live in America, and long term effect of that honor is still being felt. Old-town Louisville is a charming place with a main street area filled with restaurants and shops like The Blue Parrot and Melting Pot.
Our spotlight property of the week for Louisville falls on 1041 Lincoln Ave. presented by ReMax Alliance. Just take a look at this incredible Victorian home featuring a triple corner lot (very rare in Colorado), period charm, wood floors, and over sized two-car garage. Give us a call at 303-415-2541 if you’d like to schedule a private tour.
And if Victorians just a few blocks from Main Street are not your style, then take a look at the rest of the homes for sale in Louisville. You’re sure to find something to your liking.
And remember that Real-a-Save rebates 2/3rds of our commission to all of our buyer clients. That comes out to about $13,000 on a home in this price range. See our buyer’s page for more details.
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January 16th, 2008 Bob
We are often contacted by people who are relocating to the Metro Denver area from out of state. Many folks start searching the Denver real estate market with the idea that they’ll need to be within a mile or two of Downtown Denver in order to have a decent commute and to take advantage of all the wonders this town has to offer.
Inevitably, our clients tell us a version of this story: When they get to Denver and drive around a bit, they are surprised at the options available just outside the city. The town of Superior stands out to so many people as a perfect place to settle for a number of reasons including the great views and proximity to the foothills, variety of housing choices, easy commute to Denver and Boulder, and great schools.
Take a quick look at our Town of Superior information page.
And here’s a complete list of homes for sale in the Superior area. Remember, once you get to the map you can drag the map around, zoom in, zoom out, and change the criteria as you see fit.
Give us a call at 303-415-2541 if you would like to schedule a private home tour.
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January 15th, 2008 Bob
Yes, yes, Denver real estate shoppers have many wonderful neighborhoods to choose from. Great places like Stapleton, Lowry, Wash Park, Platt Park, and Highlands.
But if you are looking for a place that is slightly more removed from the congestion of downtown Denver, then you may want to consider Broomfield.
Take a look at our spotlight property of the week: 14143 Fairway Ln, Broomfield presented by Real Estate of the Rockies. Five bedrooms and five baths spread out over 5,200 square feet all for only $899,000.
If this is not your style, then just check out all of the other active listings in Broomfield.
You can also search many other Metro Denver cities and towns on our new information pages.
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January 14th, 2008 Bob
Not a great day for real estate news was it? Seems like there is a new forecast out every other day in regards to the impending recession. The Denver real estate market continues to see an increase in inventory as well as relatively flat prices.
One of the things that keeps me going in this business, regardless of the market forecast, is the simple fact that no matter what type of economy we are in people will always need to buy and sell homes, and Real-a-Save can be a positive force on our clients lives during this difficult market. We can save them money. Instead of sticking to the traditional old song and dance about how sellers need to pay full commission during difficult times because it’s so hard to sell a house, we can use all the same tried-and-true marketing techniques that have proven effective in selling homes for decades and simply offer them to our clients at a massive discount.
It’s really a simple concept: offer a good product at a reasonable price.
I would encourage any home seller who is considering listing their home at the ghastly rate of 6% a simple question: what is driving their decision? Is it fear? Did that listing agent put the fear of God into you during the presentation with tales of homes that sit on the market? Did they then tell you how much more quickly their homes sell? Goodness. They must have some secret, right? Probably not. It’s probably just a slick sales pitch. The politics of fear, if you will.
But take a long look at what they are pitching. What services are they really offering? Compare them to what we offer at a discount. I’m confident that our company offers the best marketing, support, advice, and expertise in the state. And we do it for a discount. Discount is not a dirty word unless you are trying to sell something.
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January 14th, 2008 Bob
We’ve just launched an additional resource for Denver real estate shoppers on our website. We’ve expanded our Denver neighborhood information pages to include a section with Metro cities including:
- Arvada
- Broomfield
- Englewood
- Lafayette
- Littleton
- Louisville
- Superior
- Westminster
Thanks to all of our users for suggesting this expanded coverage. We’ll continue to listen to your feedback and add new cities, towns, and neighborhoods as the need arises.
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