by Neil Kearney | Mar 21, 2014 | Statistics, Uncategorized
Sales in February were down 8% compared to a year ago and YTD sales are down 12%. The most alarming number and the one that will hold back gains this spring is the low inventory. Available homes for sale is down 20% from a year ago and down over 50% from the same time five years ago. This means fewer signs out in the neighborhoods. This leads to great competition between buyers when new listings come on the market. I will continue to monitor this situation as it unfolds but this I see as the biggest statistical theme of year in the Boulder real estate landscape.
by Neil Kearney | Mar 13, 2014 | For Buyers, For Sellers, General Real Estate Advice, Real Estate 101, Uncategorized
Home ownership is a long term relationship. And just like other long term relationships in our lives, it needs constant attention and care.
Let’s imagine a typical situation. A family purchases a new home and uses most of their savings to do so. 
The first few years are spent installing landscaping and furnishing and personalizing the rooms. Everything is new and fresh and all is good with the world. After awhile the house is either just the way you want it or good enough. For a long time the homeowners live happily in the relatively new home, not much to be done but enjoy.
As many years go by the house starts showing some wear and tear and features that were once fresh and hip are now showing up on the “before” side of the “before and after” shows on HGTV. But the house still works so you live in it and fix something when it breaks. Unexpectedly you get a new job out of town and you have to sell your home in a hurry. Your realtor comes in for a meeting and nicely tells you that your home is dated. There’s not enough time or money to upgrade everything at once so the only option is to set a low price and hope for the best. It might take many years to get to this point but I see it time and time again.
The other option is to proactively upgrade your house over time. Yes, there is a honeymoon period on a brand new home where you don’t need to upgrade, but after five or six years you will want to start looking at your property with a discerning eye to determine what project is next. When you take one reasonable project at a time you will be continually improving your investment. Using this strategy you will not only keep your investment on the top end of neighborhood values you will be able to enjoy and take pride in your house as you live in it.
Here are some ideas of yearly projects to consider for your home:
- Replace flooring in a bathroom.
- Upgrade the light fixtures throughout the house (sconces, bathroom light bars, chandeliers)
- Upgrade the countertops in the kitchen
- Replace the furnace and air conditioning
- Re-carpet
- Replace the vanity in a bathroom
- Paint the exterior or interior of the home
- Replace the front concrete walk with something more eye catching
- Replace the appliances (non matching appliances are not a good selling point)
- Re-stain or install a new deck
Take on one project a year and when the time comes to sell you will be ready to maximize the value.
by Neil Kearney | Aug 15, 2013 | Listings, Uncategorized
7310 Poston Way, Boulder, CO 80301 – $540,000
Situated on a huge lot, this large home has a comfortable feel and a great flow. This 4 bedroom/4 bath home has a main floor study and a basement rec-room. The yard boasts a private deck and plenty of space to play. Other features include – decorator upgrades, stainless appliances, an oversized garage, a newer high efficiency furnace and a new roof to be replaced by the end of August. A truly great home!
by Neil Kearney | Apr 19, 2013 | Boulder County Housing Trends, Statistics, Uncategorized
I’ve just finished The Kearney Report which summarizes the local real estate market in a colorful mostly graphical format. It is 17 pages of great statistical information for Boulder County real estate including breakout sections for Boulder, Gunbarrel, Longmont, and East County (Superior, Louisville, Lafayette, and Erie). To view the entire report click here.
Here are a few excerpts from the summary:
The local real estate market showed surprising strength through the holidays and soon after the calendar turned, buyers were out in force. Buyers currently have many reasons to purchase real estate. Some of the most compelling at the moment are; low interest rates, economic recovery, recognition that prices have bottomed out and are heading up, and increased buyer confidence (based upon the three previous reasons). These causes have had one effect on the local housing market, super high demand. Through the first quarter, sales in Boulder County are up 16% from a year ago and up 33% from the first quarter in 2011. The market is humming along!
It’s too soon to know how much prices have risen but so far this spring I have seen quite a few homes with prices that I thought were way too high go under contract very quickly. According to the latest FHFA.gov price appreciation report, prices in Boulder County had risen 2.08% for the year ending December 31, 2012. Anecdotally, I have seen some homes in some areas sell at levels approximately 15% higher than they would have been a year ago. We’ll see where the averages fall but it is definitely a sellers market.
Multiple offers are very common on homes that are in good condition and are asking a fair price. There is an urgency to make decisions and if a house lasts more than a week or two on the market it is most likely overpriced. A typical scenario right now is where a seller lists their home at a price level that is pushing the market (just to see if anyone will bite). They get 15-20 showings during the first week and then when no offers come in they start chasing the market with price reductions.
by Neil Kearney | Apr 2, 2013 | For Sellers, General Real Estate Advice, Real Estate 101, Uncategorized
Most homeowners throughout the United States are having a collective sigh of relief. The home sales market is recovering and prices are rebounding. Between good news on the home front and a strong bull stock market, many people have a positive outlook on their personal finances. This is called the wealth effect and the result is a loosening of the household wallet.
I don’t sell cars, appliances or stocks so I will comment on what I know and work with every day. In a recent post I commented on the best practices of the home buyer in a hot real estate market. Today I’m going to share my ideas on how to be a smart home seller in a sellers market.
Price it Right
In the Boulder area real estate market we are seeing very low inventory and high demand. This causes a shortage of homes and results in smart sellers getting multiple offers and selling their homes for more than they thought they might.
But this isn’t happening to all sellers. Here is a scenario I’m seeing a lot right now – Mr. and Mrs. Seller recognize that the market conditions favor them so they decide to price their home 10 – 20% higher than what the recent sales in the neighborhood show. Buyers come out to see the home in great numbers over the first week and the general sentiment is that the house would be acceptable but it’s not a house they want to break the neighborhood record on and they move on. The Sellers recognize a few weeks later that they are not going to get their “dream price” so they reduce it by 5%. Still too high for the market but by this time the market wave of activity for a new listing has passed and they are chasing.
A smart seller in this market looks at the recent sales and the competition with their Realtor and decides on a fair market value. They recognize that the market will bear a good price but they know that the house must appraise and be in good condition. If it is listed at a reasonable price near market value and in good condition there is a good chance there will be multiple offers.
Take Advantage of the First Wave
As I mentioned above there is a timeline for new listings. In basic terms here is how it works and why it is important.
At any one time there are (hopefully) many buyers who are in the market for homes in any given area or price range. In a market with low inventory they soon sift through the current listings (either in person or online) and decide that they are not willing to buy any of the current homes on the market. So they focus on what is coming on the market. Here is where a good Realtor is invaluable. This buyer cannot wait for an open house or wait for the Sunday paper. Buyers are trolling online at all times. I have automatic searches sending results to hot buyers three times a day. So when a new listing hits the market buyers flock to see if this is the “one”. If it is they want to be first. The current buyers waiting for new listings are the first wave and right now it is a strong wave that lasts 3-4 days and comes in strong. In this market it is not uncommon to have 15 showings within the first four days. These are the most likely buyers.
If a home lasts through the first wave without an offer you know something is off (price, condition, location). After the first wave passes you, as a seller, are counting on people who are new buyers and those who were not available to see the property over the first days. This is a smaller pool. You are in the backwash.
Multiple Offers
If you have priced the home correctly the hope is to get multiple offers on your home. This puts the seller in a advantageous position and with guidance from their Realtor, they can compare the merits of multiple offers and choose the best one. I find it’s best to give all potential buyers in a multiple offer situation equal information. For me, that means each offering party knows when the offers will be considered and how many offers they are competing against. As a sellers agent I encourage buyers to bring their highest and best offers and give everyone a chance to revise their offers if they choose to do so. I then go through each offer with the seller and let them decide which offer gives them the best chance to close for the most money.
Get a Backup Offer
There are many reasons that a house that is under contract doesn’t close. Here are a few:
- Buyers Remorse – This is especially common when the buyer feels pressure to make a quick offer and then feels that they have paid too much after beating out multiple bids.
- Inspection – When there is time pressure to submit an offer there is not time to look at the home carefully or to show family members. This makes getting through the inspection especially important.
- Appraisal – Just because a buyer is willing to pay a certain amount for a home doesn’t mean that the appraiser or the bank will agree. If the appraisal comes in low and the buyer doesn’t have additional funds available to mitigate the banks risk the contract will terminate unless the seller is willing to re-negotiate. And if there were multiple offers, it is a good chance that the sellers will not re-negotiate.
It’s for these reasons it is smart to encourage a backup offer. And the best time to get a backup offer is when there are multiple offers. All it takes is to create a quick counterproposal with appropriate language. It is a no risk insurance policy which is usually a win-win.
Inspection Issues
If a buyer has paid a premium price for a home it is common for them to be very picky on the inspection. They feel the home should reflect the price and unless an “as-is” clause was included in the contract you can expect to be negotiating again on some inspection issues. As a seller your negotiation position is greatly enhanced if you have a backup offer. A good gauge as you consider the buyers requests is whether another (the next buyer) would likely require the same items. If so, it might be a good idea to negotiate in good faith and move forward.
Finding a Replacement Home
The advantages of a tight market on the selling side lead to difficulty if the seller needs to find a replacement home that will not require a double move. In a strong sellers market, the sellers must have a plan of where they are going to go. Don’t get stuck in a situation where you are homeless for a period of time. Plan ahead!
Since each transaction is different it is hard to anticipate all scenarios but those are some of the major considerations when a seller is looking to list their home in a sellers market. If you are looking for expert representation in Boulder County call me, I have been successfully working in this market since 1991.
by Neil Kearney | Apr 12, 2012 | Uncategorized
Hello Real Estate Buffs! Today I might make somebody’s day. There are many buyers out there right now who are actively looking for homes but have not been able to find the right place. It is competitive out there and with 30% of the active listings in Boulder County already under contract, every serious buyer is looking for an edge. Here is a bonus sneak preview for readers of this blog. New listings that are on the way but not quite on the market!
- Dakota Ridge Luxury Townhome with 3 bedrooms with great views right on the park. $549,900
- Louisville two story in the Cherrywood neighborhood with 3 bedrooms upstairs, updates and a finished basement. $499,000.
- Downtown Boulder Luxury Condo with high end finishes, elevator access, secured parking, 2 + bedrooms and an awesome view from one of the three private patios. $TBD ($1.1 million range)
- Downtown Boulder Condo with two bedrooms plus some bonus areas for home office, huge wall of windows, secured parking $724,900.
- Rare 34.25 acre building site in Fourmile Canyon, 20 minutes from Boulder, multiple building sites, dividable, quiet, sunny, Fourmile creek runs through the property $279,000.
Call me directly to get more information on these properties. I have listing agreements signed on all properties but have been instructed by my clients that the homes are not quite ready to show.
