Nice looking Rock Creek home with hardwood floors on the main level, a huge backyard and four bedrooms on the upper level. The partial basement is finished and can be used for a variety of purposes. The backyard is huge and has a large paver patio that curves around the side of the home. The house has been well maintained and is an easy walk to Superior Elementary School.

For more detailed information and more photos of this listing go to www.610S44th.com

Updated and remodeled ranch style home with a full finished basement. This three bedroom, 2 ½ bath home has been opened up and now has an enlarged, open living area on the main level. 2 bedrooms upstairs and 1 in the basement. The upgrades of this nice home include: vinyl windows, new closet doors, newer furnace and central a/c, egress windows in basement, radon mitigation, newer fence, stainless steel appliances, closet organizers and a new roof in 2006. Great South Boulder location.

Features:

• 2,214 total square feet
• 3 conforming bedrooms, 2 full bathrooms and one 1/2 bath
• Finished basement
• Many upgrades
• Open front room (wall taken out)
• Roof replaced in 2006
• Newer furnace, and A/C
• Vinyl windows
• Radon Mitigation installed
• Stainless appliances
• All appliances included

  

  

  

For more detailed information go to www.4659TallyHo.com

The home at 4659 Tally Ho Trail is a rare ranch style home with vaulted ceilings. It has an open floor plan surrounding the central fireplace and has three bedrooms and two full baths on the main level. The finished basement has a large light filled area that can be used as a recreation room or a guest room. There is also a 3/4 bath in the basement and an storage area. The home has had many recent updates including a new roof a remodel of the upstairs bathrooms, and refinishing of the hardwood floors. The front of the home faces east and the rear of the home has great views to the west and backs to open land owned by the school district. Enjoy the covered and enclosed patio. The neighborhood is convenient to tons of walking trails and has a swimming pool. A great place to live!

Here are a list of the outstanding features of this home:

• 1904 square feet on the main level
• 1007 square feet in the basement (475 finished)
• 3 bedrooms, 3 bathrooms (basement room can be used as a large conforming bedroom)
• Backs to open land
• New roof
• Gleaming hardwood floors
• Neighborhood pool

But right now, even with the best efforts being put forth, houses are hitting the MLS already under contract. But how can this be? Is there a super buyer waiting for the sign to go up and beating everyone else to the punch? The answer is no.  What’s happening is that the listing agent is selling the house before it enters the MLS via a whisper campaign.  This can take a few different forms.

The first and most prevalent form of this practice is the inter-office preview. This is especially prevalent in larger offices, but can happen in any office where there is more than one agent. This can be as innocuous as talk around the water cooler or an interoffice memo system giving agents within the office “first shot” at upcoming listings.

The second prevalent method is the “coming soon” sign which is put up at the home before the house is offered on the MLS. If a potential buyer would stumble upon the sign they would need to call the agent for more details. The goal being that the agent would possibly be able to bring the buyer to the transaction in addition to representing the seller.

This practice, in all its forms, in my opinion, is not adding to the professional image of Realtors. Our pledge and fiduciary duty to our clients is to “promote the interests of the Seller with the utmost good faith, loyalty, and fidelity”.  In short our job is to do the best job for our clients. I would argue that in a market such as ours, where multiple offers are a normal occurrence and offers over list price are very common, a whisper campaign isn’t necessarily in the best interest of the seller.  It may be convenient for the seller and adhere to the terms of the listing contract.  But if the listing agent is only marketing the home to a very small pool of “in the know” Realtors and buyers, the best interests of the seller are pushed aside.

It’s our job to expose a listing to the largest pool of buyers possible so that the best offer can come forward.  I’ll illustrate with an analogy, if we are fishing in a small bucket (within an office or those who happen to see a sign) we are not going to catch the big fish swimming in the lake (all other buyers represented by other Realtor’s or who don’t happen to drive by).  When Realtor’s only expose a listing to a limited group I think they are doing a dis-service to their clients.

I currently have five really nice listings coming up in the next two weeks. The sellers are currently getting ready and I’m behind the scenes getting ready with the marketing.  But you won’t hear about them from me until you see them hit the MLS.  No coming soon sign, no office emails, no blog posts…  When it comes on the market it will be released for all to see and it will be up to the buyers out there who will make the best offer.  It’s my intention to work in the best interests of my clients, not my best interests or my offices best interests.

In a slower market this practice may be beneficial but right now I think it’s the opposite.

I have just listed this lovely, well-kept home in desirable the South Meadow neighborhood. The house has good flow and an open floor plan, making it a great everyday home and perfect for entertaining.  Gourmet kitchen boasts 9 ft granite island, Viking 6-burner stove, instant hot water and walk-in pantry. Screened-in porch for outdoor dining.  Large master suite with Jacuzzi tub, his & hers closets and private balcony.  Additional 3 bedrooms, bath and loft upstairs. Remodeled family room with cathedral ceiling and built-in bookcases. Main floor office/5^th bedroom. Large 3+ car garage. Finished basement with Rec room, ¾ bath & additional non-conforming bedroom, plus storage.  Laundry chute into main floor laundry room.  Newly painted plus concrete roof.  Located on a quiet cul-de-sac and just steps away from private park, with play structure and tennis courts.  Choice of Boulder High or Fairview High.

For all of the photos and details go to www.4376Park.com

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.

After a few days of uncharacteristic April snow we were treated to a beautiful winter scene this morning. On my way into the office I had to pull over and capture the moment knowing that chances are, we won’t be seeing snow like this again until next winter.  Over the next week or two the grass will come to life and the trees will start to bud.  Spring is almost here.

• Low inventory
• High buyer demand
• Positive price pressure
• Homes selling quickly (see first two items above)

During March these trends continued. During March there were 392 sales of residential properties in Boulder County. This represented a 15.6% increase from March 2012. Sales so far in 2013 are up 16% compared to last year.

Available inventory is down from a year ago. Last year at this time we had 1,382 homes on the market that were not already under contract, this year we have just 818. This translates into an under contract percentage of 40%. Here are a few graphs that are taken from the slideshow below. The first one shows the active inventory by month over the past seven years and the second one shows the under contract percentage for single family homes in Boulder County by month over the past six years.

The slideshow below gives a comprehensive look at the Boulder County real estate market.

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.

Over the past week 171 properties have come on the market in Boulder County. Already 24% of those homes have gone under contract.  If you look back two weeks that number jumps to 32%. It is a fast moving market. We just listed a home in Louisville and over the three days on the market there have been 18 showings.  Multiple offers are very common and many buyers are getting caught up in the frenzy.  Here are the top three mistakes I see being made in this market.

Paying Too Much

When you are at the supermarket comparing products and prices is easy. For example, you want some soup so you compare the choices available and decide; what flavor, what brand, what size, etc. It is easy to decide because there are ample choices and whether you are a value shopper looking for a generic brand or are willing to pay for organic soup with a brand name, you can easily make that choice. But if you go to a remote store, like you often find near a campground with one soup choice the decision is whether paying $5 for a can of Campbells is worth it to you. The scarcity in choice allows the seller to raise price and at that price soup will be worth it for some and not worth it for others.

Pardon the extended metaphor, but right now there is a scarcity in the real estate market and buyers are faced with buying decisions with limited options.  In many cases the decision is, do I pay more than seems reasonable or do I wait and hope that something better comes on the market.  I have seen many sellers pushing the market and some are being rewarded by buyers willing to pay high prices.

So, if you are a buyer how do you balance being competitive in this market where 18 buyers are looking at the same property within a few days and making a smart decision. The first tip is to do research like an appraiser would do. Look at the sales in the neighborhood over the past six months or year (depending upon how many have sold) and find the homes that are most like the home you are looking at. Compare the upgrades, price per square foot and I like to compare the assessed values as set by the county appraiser.  After comparing the sold homes to the home you are interested in you should have a good idea if you are within a reasonable range or if you are going to be setting a new record for the neighborhood.  If you are getting a loan, the appraiser hired by the bank will be doing the same analysis and they are much more conservative than the normal buyer who is newly in love and is riding an adrenaline high from beating all of those other buyers. If you have paid too much the appraisal will stop the sale.  So save yourself some time and money and work with your Realtor to see if what you are paying is reasonable.

Getting Caught Up In A Scarcity Mentality

When houses are flying off of the market and you may have missed out on a home or two, it may be easy to start to think that the house you have just seen (and might just work) will be the only one and if we don’t make an offer now…  Home buying is a process and sometimes there is a delicate balance between patience and action. This is where advice from a good buyers agent is invaluable. The truth is, even though you think that there will never be another house like the one you just lost out on, new listings are coming on the market all the time. A home buyer must always look forward and never dwell on houses that “might have been”. The right state of mind is one that objectively looks at the options and sees each house that doesn’t work as one step closer to the one that will work.

Not Acting Quickly Enough

In a sellers market the competition for good houses is fierce. Being a part-time buyer is frustrating and futile in many ways. In order to be successful you must be ready to pounce on a good home. Here are the steps that a buyer must take to be a active buyer, ready to buy.

• Financing Ready – You must have your ducks in a row. A lender letter is required with all offers and it is best that you are already in the process of loan approval, just waiting for the property, verification of your information and an appraisal.  You also must have liquid funds for earnest money ready to go.
• Quick Information – Knowing about the homes on the market is the next hurdle. If you are waiting for the Sunday paper you are most likely missing most of the homes. What I do for my clients is to set them up with a search that automatically scourers the MLS for new listings every few hours and sends us both an email with the results.
• Quick Showings – Once you know about the new listings you need to get out there are see them quickly. Flexibility is a key and seeing promising new listings on the first day gives you an advantage.  I showed a listing this week that had just come on the market at 10 am.  We met at 5 pm and there were four other groups meeting there at the same time. What a zoo!
• Quick Offer – Being ready to make an offer quickly is another key.  Be ready to analyze the data (see above) and make a strong offer is key to getting an offer accepted. A few weeks back I was able to make an offer on the spot at the house by writing the contract on my IPad and having the buyers sign on the spot. The seller and listing agent were about to meet so we had a tight deadline and we were able to meet it.
• Be Smart- As coach John Wooden said “Be quick, but don’t hurry.” Buying real estate is a long term decision with large consequences if you don’t get it right. Be ready to make your best offer but don’t get caught up in the wave of competition.

• Dropping inventory
• High buyer demand
• Multiple offers
• High under contract percentage

When there is low inventory and high demand the result is always high competition for a scarce resource. What we have seen is multiple offers for well priced homes and lots of showings but no offers on obviously overpriced homes.