by neil kearney | Sep 22, 2009 | For Sellers, General Real Estate Advice, Real Estate 101
If you are involved in a real estate transaction in the rural or mountain areas of Boulder County, the 
property most likely has a septic system and is not served by a municipal sewer system. When working well, these personal waste systems are mostly out of sight and out of mind. As toilets flush and sinks drain, the waste goes to a tank which holds the solids. The liquids move through the system and are released underground through a leach field. When working correctly there is no smell, no visible liquid and the solids are held in a concrete tank which has some natural bacteria which break down what is held. Every couple of years the tank needs to be pumped out. It is really a good system which in many cases lasts decades and decades without any large expenses.
The downside of this system is what happens when the system does not work correctly. A septic system that is not in good repair is at risk of releasing untreated matter into the environment including the water supply. Much of our mountain building took place between 1960 and 1980. This means that the septic systems for much of housing stock west of town has septic systems that are quickly becoming old. Boulder County decided that it needed some regulation that ensured that wastewater was being handled correctly. Last September their Septic Smart regulation went into effect.
The Septic Smart program requires that each septic system be inspected by a qualified inspector at the time of sale. If the system does not pass inspection a plan for repair or replacement must be negotiated between the buyer and seller and the repairs made within one year. According to the website, here is how the regulations work for buyers:
For Buyers of a Home
- If the permit record for the property shows “NOT APPROVED” in the “Date of Final Approval” field, this means the final permit has not been approved. Potential buyers should ask the homeowner about plans for repairing the OWS. If the buyer is expected to repair the OWS, it will need to be completed within one year of closing. The buyer should ask the seller for recent bids and a definitive “cost of repair.” The buyer may need to acquire the repair permit from Boulder County Public Health, or have the seller provide it.
- Check the onsite wastewater system (OWS) permit record on the house. Make sure that the number of bedrooms listed on the permit equals the number of bedrooms listed on the MLS. (Check permit)
- If the property shows a date in the “Date of Final Approval”, field this means the OWS permit has been approved. Potential buyers should ask for the maintenance history, recent property transfer inspection report, and certificate of operation (valid for four years).
Septic Smart Buyer Brochure
The responsibility of the actual inspection and application with the County falls upon the seller of a property. Here is a guide for the sellers from the Septic Smart website:
For Sellers of a Home
- Check the onsite wastewater system (OWS) permit record of the house for sale. (check permit) Make sure that the number of bedrooms listed on the permit is not less than what exist in the home at the time of sale.
- If the permit record for the property shows “NOT APPROVED” in the “Date of Final Approval” field, this means the final permit has not been approved. Homeowners must apply for a repair permit to verify or repair the unapproved system (permit process).
- If the Date of Final Approval listed on the permit is more than ten years ago, the system requires a Property Transfer inspection. (View Inspector listings). If the Date of Final Approval on the New or Major Repair permit is within the last ten years, the system is exempted from the inspection process. Certain other situations are also exempted.
- In preparation for the inspection, the homeowner must:
- Expose the septic tank lids
- Mark the boundaries of the leach field
- Present OWS maintenance records
- Be present for the inspection
Sellers Septic Smart Brochure
by neil kearney | Jan 31, 2008 | General Real Estate Advice
Rental Vacancy Rate Falls
Simple Supply and Demand
It was reported in a http://www.dailycamera.com/ story this morning that vacancy rates throughout the Denver Metro Area fell during the last quarter of 2007. Here is a quick excerpt from the story by Alicia Wallace.
"Apartment vacancies in Boulder — minus the "university area" — dropped to 2 percent during the last three months of 2007, making the city's rental market the tightest in the Denver metro area, according to a report released Wednesday. Near the University of Colorado campus, vacancies were slightly higher, at 3.7 percent, according to the Metro Denver Multifamily Vacancy and Rent Survey, a report released quarterly by the Colorado Division of Housing and the Apartment Association of Metro Denver. Vacancy rates in markets across Boulder and Broomfield counties varied widely, with Broomfield at 6 percent; "Boulder County-other," which includes Louisville, Lafayette and Superior, at 3.3 percent; and Longmont at 11.5 percent. Longmont's higher rate is the result of new rental units on the marketplace, said Gordon von Stroh, a University of Denver professor of business who researched and authored the report. Anything below 5 percent is considered a "tight" market, von Stroh said. "
I see the increasing demand for rentals locally caused by a few factors. One is normal supply and demand. Eight or nine years ago national developers identified our area as a place to invest. Large rental apartment communities sprung up everywhere. For some early projects this was a boon, full units and good rents. For some late arrivals it meant "Free Rent" signs and a low return on investment. After the tech bubble burst most plans for new rental units were scrapped. It has taken us a few years to fill those vacancies and in the interim rents fell. We still have people moving to our area and with the tightening of credit, many of them have to delay buying a home. Even the rise in foreclosures will help rentals. The people who lose their homes will become renters. Look at this post to see how this news fits into the upswing in the real estate cycle. Neil Kearney Kearney Realty Co. 303-413-6624
by neil kearney | May 11, 2007 | General Real Estate Advice
Appeal Your Property Tax Assessment
Property tax assessments were recently sent out to property owners in Colorado. What I first noticed was more information than usual. Boulder 
County provided a photo of the houses that were used in comparison to come up with the “actual value”. The assessors office uses the market approach which compares your house to other similar homes that have sold during a certain time frame. This is the approach I use when I list a house. The key to this method is using the “right” houses. Comparing houses is an art and the computers at the county are not artists. They cannot tell the difference between a patio home and a custom home. This is where the appeal process comes into play.
If you feel like your home was overvalued (not many people appeal a low valuation) and you can provide the assessor data that supports your case, you have a good chance to lower your assessment and subsequently your taxes. During the appeal process a person reviews the homes and makes a new determination.
If you need data to support your appeal, let me know. I’d be happy to provide you data from the time frame they are looking for (summer of 2006). I’m always happy to be of service.
