Dear Geri and Dean,

Thank you for contacting me and for the opportunity to view and make a proposal to list your house at 1909 Spruce Street in Boulder.

As you may have read on my website and through other sources the market in Boulder has been very strong this year. This spring multiple offer situations have been common and prices have increased as much as 20% over the past two years. In order to come up with an accurate market value recommendation for you I have done an extensive review of the market and then analyzed those listings with yours in mind.

On this page you will find links to reports, spreadsheets and the properties I thought were most helpful in establishing a current value.

Your home is located within the popular Whittier neighborhood in Downtown Boulder. The neighborhood is characterized by bungalows built in the first part of the 20th century. Your home is typical of the neighborhood although at 792 total square feet it’s on the small end of the square footage spectrum. The location within the neighborhood is good (not on an overly busy street or next to a commercial building etc.) and the fact that it has a private yard and a detached garage is a positive.

I have identified eight properties that have recently sold that I thought matched the general profile of your home. The homes ranged in square footage between 660 and 1,181 square feet and were in Downtown Boulder. From the “Price Per Square Foot Analysis”  link below you will find a spreadsheet that I put together to help analyze and compare the homes to yours. The average square price per square foot for the group is $534.  The highest price per square foot of the group is $863 and the lowest is $438.  This very large range shows me that buyers are not square footage sensitive as it pertains to price. If you would plug these values into your square footage we get values ranging from $320,620 to $683,880; too large of a spread to be valid.

Another measure I looked at is the relationship between the sales price and the most recent assessed value as set by the Boulder County Assessor. As a group the average sales price was 1% above the most recent assessed value. The low was 89% for a home on Grove that sold last November and the high was 13% above the tax value for a home at 2237 Pine that I think is a very similar home.  The assessed value of your home is $548,300. So, plugging in the average ratio we can infer a value of $553,246, with a low of $487,274 and $620,855. The details are on the spreadsheet.

As I consider values, I look at the intangible items such as relative size, condition, upgrades, location and charm. These are the factors which affect the value within an established range. Your home is on the lower end of the spectrum as it pertains to square footage, condition and upgrades. More specifically there are some items at the house that are in need of maintenance. These items include:bathroom tub surround, gutters, and general deferred maintenance. The kitchen and bathrooms are not as upgraded as are many of the homes included in the report.

There are two homes in particular that I think are worth looking at more closely.

1723 Canyon – sold for $545,000 on June 19th. It has 1,013 square feet and was upgraded well.  I saw this house when it was listed and it’s main drawback was its proximity to Canyon Blvd. which is a very busy street. It was being used as an acupuncture office but was being converted back to a single family home.

2237 Pine – sold for $569,900 on July 2nd. It has just 660 square feet but had some nice upgrades including marble countertops and recently finished flooring. The yard is very similar and it also has a detached 1 car garage. I see this home as the nearest comparable.

The Comparative Market Analysis linked below shows the photos of each of the properties so that you can compare the level of finish between your home and the others.

In addition to the recently sold properties there are also three active listings, two that are worth noting.

2312 Bluff – 1,865 square foot home listed for $624,999. It is currently under contract but took 65 days to find a buyer. From the pictures this looks like a nice home. It lists four bedrooms and has a small upper level. Lots of light.

1935 Pine Street – 1,620 square foot home listed for $699,900. Right in the neighborhood across from Whittier Elementary. Great upgrades, raised ranch, larger home, looks really nice. Went under contract before it hit the MLS.

After studying the properties on a comparative and analytical basis I would recommend listing your home between

$550,000 and $565,000. And after improving the showing condition and taking care of the some of the more obvious maintenance items I would think we could list it for $580,000.

The most similar and recent comparable properties just sold for $545,000 and $569,900.  There is still very little inventory and I’m confident that we could find a buyer within 30 days.

I know the neighborhood well and my office is just a few blocks up the street. I have included below a copy of my marketing plan which also includes a summary of my experience as a Realtor in Boulder as well as some client testimonials.

The terms of my listing agreement would be: (1)Three month listing agreement. (2) 5.6% total commission with half of that offered to other agents who bring the buyer. I also offer a discount of 2% if the buyer comes to the transaction without an agent.

After reviewing this information I would love to speak with you over the phone so that we can talk it over. I really love to meet face to face but since that isn’t possible I tried to make my report thorough and understandable. Thank you for your patience.

Sincerely,

Neil Kearney

303-818-4055