by neil kearney | May 1, 2007 | Boulder County Housing Trends
-Market Shows Signs of Strength –
The number of homes under contract May 1st is up 63% from 1 month ago! The number of single family homes in Boulder County that are under contract increased from 349 a month ago to 569 today. I am tracking the ratio of active listings to those that have a contract on them and on March 1st the ratio was 19%, on April 1st it was 20% and on May 1st it is 30%. I will be able to check the final sales figures for April in a few days after all sales are recorded in the MLS. The signs seem to be positive. Stay tuned…
by neil kearney | Apr 30, 2007 | Uncategorized
– 664 South Peak Drive – Price Reduction –
The price on my beautiful listing at 664 South Peak Drive has just been reduced $50,000 to $399,000! This home is located on Sugarloaf Mountain just 10 miles west of Boulder. The views are incredible and stretch from DIA to the east to the Continental Divide to the west. The home has two bedrooms, two bathrooms and two studies. It was designed by renowned Boulder architect Charles Haerterling and has been lovingly maintained by the original owners. Check out its website at http://www.664southpeak.com/.
by neil kearney | Apr 27, 2007 | For Buyers, For Sellers
– Proposed Boulder County Septic Regulations –
As a Realtor in Boulder County I know that when I show a home to a buyer in the mountains or out on the plains, most likely the house will have an on site waste water system, otherwise known as a septic system. When I write the contract I make sure there 
is specific language that provides for the cleaning and inspection of the septic tank during the inspection period.
Boulder County is getting ready to implement a new regulation regarding septic systems. What is on the table is an inspection/approval process at the county level that would be triggered by a home sale. The regulation may go into effect later this year. I attended a meeting this week outlining the program from two perspectives; the county and a Realtor.
The County’s perspective:
In Boulder County there are 14, 307 septic systems. Of those systems, 9,580 are “approved” systems and 4,727 systems are “unapproved”. The average age of the approved systems is 23 year old and the average age of an unapproved system is 49 years. The average life span of a properly working septic system is 25 years.
The Goal of the Program
- To insure clean water in the Boulder watershed. Contamination from septic systems is a concern because a leaking system can introduce bacteria into ground water, domestic wells and streams.
- Educate homeowners – Many homeowners are not aware of the risks associated with a failing septic system. Out of sight, out of mind. Only when it backs up or when they can smell it do they take action. The county wants to contact and encourage all unapproved systems to get up-to-date.
- Identify unapproved and/or failing systems. The county wants to have all systems “approved” in the next 15 years and figures that most homes will sell during that time.
- Force homeowners to inspect and fix systems at the time of sale. They figure that a transfer in ownership is where the money and motivation to fix are at their peak.
The Realtor Perspective
To me it seems like this is not the best way to accomplish their goals. As I mentioned before, I have never been involved in a transaction involving a septic system that did not involve at least an inspection and a pumping. Most buyers would not accept an “unapproved” or failing system anyway. The county is counting on the average of every family moving every 7 years. It’s true that this is the national average but in the mountains, I submit that this is not the case. Many houses in the mountains are passed down from generation to generation. Many owners in the mountains are through with their move-up cycle. There are not many “starter” homes or neighborhoods in the mountains where the turnover is much less than 7 years.
The proposed regulation will add unneeded bureaucracy and expense to the home buying process. In Jefferson County a similar regulation went into effect in 2004 and Realtors are seeing duplication of multiple inspections (first a seller than a buyer who wants their own inspection).
In my humble opinion I would like to see the county try to start at the oldest systems and work their way forward with an inspection program that will target polluting systems not just the ones who happen to be selling.
For more information go to Boulder County Health’s website .
by neil kearney | Apr 24, 2007 | For Buyers, For Sellers, Real Estate 101
-Multiple Offers-
We are working in a buyers market. The average days-to-offer in our market is around 75 days. It is unusual to have houses go under contract right away. You would think that multiple offers and offers over full price would be non-existent; but they happen. 
When there is a large inventory of houses on the market buyers become very good at spotting a good deal. When after looking at 20 homes, buyers see a new listing that they “know” is a good house for a good price, they tend to jump on it. If they are smart they give a good offer and wrap up the negotiations as quickly as possible. Chances are they are not the only buyers looking in that area and price range. What happens if two buyers decide to write an offer on the same house. Here is some advice from the buyer and seller perspective.
From The Buyers Perspective:
- Check to see if you have competition. Your agent will call the listing agent to announce your intention to write an offer. Make sure you know if you are competing with another buyer. At the same time have the agent ask for the sellers preferred closing date and for any items that will be excluded from the offer. All of the information below assumes that there is another offer.
- Make your decisions quickly. Getting your offer in a day ahead may make a big difference. Ask for a quick acceptance deadline.
- Do your homework: Check comparable sales and decide the maximum price you will be willing to pay. Also, think about how you would feel if you would lose this house over a couple of thousand of dollars.
- Do a thorough walk-through: When you see a house you are interested in, take your time. Check on the condition of the house, what would you need to do to make it yours. Are the systems (furnace, roof, windows) in good condition?
- Prepare a clean offer: Don’t ask for Sellers to pay for appraisal, cleaning, HOA transfer fees etc. When the seller is considering two similar offers, $50 can make a big difference and send a signal that the buyers asking for all of the small stuff will be tougher to work with down the road on inspections etc.
- Have your financing in place and make sure to include a letter from a lender along with the offer. I prefer to see a local lender who can jump in and make the closing work in a difficult situation rather than somebody who is working a toll free line.
- A nice touch is to write a personal letter to the seller explaining who you are and why you love their house. The seller has an emotional attachment to the house and wants to sell to someone who will take care of their house.
- Consider an escalation clause. When the house is a good value and you know there is competition one effective method is to write in an escalation clause. This clause in the contract automatically raises the bid price if another offer beats theirs financially. For instance it could read “the offer price shall be automatically raised to a price $1,000 above any other bonefide offer, the purchase price shall not exceed $xxx,xxx”. This is where the buyer has to know how much they are willing to pay; is it full price or $5,000 over?
From The Sellers Perspective:
- If you are attracting more than one offer it shows that you have taken care of your home and priced it correctly.
- You want to make sure that all interested parties have a chance to submit an offer. Have your agent communicate to each agent who has shown the property recently to gauge interest.
- When reviewing offers look at these main points: net price to you after all closing costs, dates and terms and buyers ability to pay and close.
- Try to read between the lines and get a feel for motivation. A buyer who has been transferred and is living in temporary housing is a stronger candidate than an investor who will not be living in the house.
- Try to tie up some of the loose ends now. Use a counterproposal to change dates and terms. You will never again be in a better negotiating position.
- Choose what feels right and be open with your agent .
- Remember, you have a right to choose what offer you accept but you do not have the right to discriminate against a buyer. Choose an offer based upon what is on the paper.
From The Agents Perspective:
- Make sure the communication lines are open. Get a dialog going with the other agents. If all parties feel informed about the process and situation there will be no hard feelings. If a second offer comes in after the first, it is customary to call the first agent and give them a chance to change their offer.
- If you are in an agency position with your client they will lean heavily on an agents advice. Give them good information and let them choose from the possibilities.
Every situation is different but remember the buyers agent is charged with helping the buyer get the house and the sellers agent or listing agent is charged with getting the best price and terms for their client.
by neil kearney | Apr 16, 2007 | For Buyers, For Sellers
Rent To Own
As I drive around in my market I tend to see homemade signs posted at major intersections with houses advertised as “Rent to Own”. In this 
post I’d like to layout a typical rent to own deal as well as show how the unscrupulous can take advantage of an unsuspecting buyer.
First terminology; rent to own is the same as a lease purchase. It is a combination of a lease and an option to buy a house for a certain price. This type of deal attracts people who are not quite ready to buy but are willing to bet that they will be able to purchase in a relatively short period of time. Most of the time the attracted buyers are either just getting started or are starting over after a bankruptcy or other credit issue.
Here are the main features of the deal:
- Buyer and Seller agree to an option price and the time for which the option is good (usually 3 years or less but is negotiable).
- Buyer pays an non-refundable option fee upfront to Seller (usually 1% – 5% of purchase price) . If they exercise the option the option fee goes toward the purchase price of the house.
- Buyer agrees to pay monthly rent to the Seller. Usually, the buyer pays a premium on the market rate rent and that premium also pays down the option price of the house.
Advantages for Seller:
- Expands the pool of possible buyers to their house. This is especially helpful in a slow market.
- Option money is upfront and payable to the Seller.
- They can usually collect above market rate rent.
Advantages for the Buyer:
- They are able to lock in a sales price on a house.
- They are able to pay down equity each month they pay rent.
- They are given time to accumulate a down payment or repair credit.
Buyer Beware:
There are situations where the Seller is just looking for a victim. There have been many instances where sellers are just looking for the upfront money and premium rent and then find a technicality to evict the buyer/renter before the option can be exercised.
