by neil kearney | Oct 15, 2009 | Uncategorized
|
# New |
Price Drops |
# U/C |
# Sold |
Median $ of Sold |
| 30-Apr |
166 |
142 |
125 |
81 |
$ 317,900 |
| 7-May |
182 |
170 |
141 |
90 |
$ 294,700 |
| 14-May |
211 |
170 |
126 |
46 |
$ 301,950 |
| 21-May |
220 |
169 |
140 |
92 |
$ 275,950 |
| 28-May |
167 |
165 |
137 |
66 |
$ 272,450 |
| 4-Jun |
213 |
204 |
131 |
141 |
$ 324,500 |
| 11-Jun |
210 |
198 |
155 |
74 |
$ 296,400 |
| 18-Jun |
222 |
191 |
125 |
94 |
$ 339,950 |
| 25-Jun |
178 |
223 |
131 |
100 |
$ 339,900 |
| 2-Jul |
163 |
158 |
132 |
150 |
$ 299,000 |
| 9-Jul |
157 |
181 |
102 |
81 |
$ 332,900 |
| 16-Jul |
187 |
197 |
121 |
93 |
$ 289,900 |
| 23-Jul |
166 |
211 |
95 |
92 |
$ 334,450 |
| 30-Jul |
149 |
189 |
109 |
110 |
$ 278,950 |
| 6-Aug |
155 |
197 |
106 |
144 |
$ 312,450 |
| 13-Aug |
161 |
202 |
105 |
84 |
$ 319,975 |
| 20-Aug |
178 |
187 |
120 |
79 |
$ 345,000 |
| 27-Aug |
156 |
163 |
113 |
88 |
$ 317,475 |
| 3-Sep |
138 |
173 |
112 |
103 |
$ 285,000 |
| 10-Sep |
112 |
139 |
100 |
63 |
$ 284,900 |
| 17-Sep |
163 |
159 |
114 |
63 |
$ 317,000 |
| 24-Sep |
143 |
152 |
112 |
74 |
$ 314,500 |
| 1-Oct |
125 |
160 |
87 |
128 |
$ 259,900 |
| 8-Oct |
136 |
173 |
116 |
71 |
$ 300,000 |
| 15-Oct |
129 |
170 |
102 |
63 |
$ 352,750 |
Here we are midway through October and activity in the market still continues to surprise me. The number of properties that go under contract each week has been fairly consistent in the low 100’s over the past few months. One thing I have been noticing is the high number of homes that fall out of contract. Since late April an average of 118 properties go under contract each week at the same time an average of 90 properties close each week.
What happens to the 28 properties which go under contract but never close? There are any number of hurdles in a real estate transaction but they include; buyers remorse, inspection issues, appraisal issues and loan issues. Each transaction has its own challenges but from my chair it seems more difficult than ever to get from contract to closing. In fact, since April nearly 24% of all contracts have not made it to the closing table.
Picture a real estate transaction as a big rubber band held at one end by the seller and at the other end 
by the buyer. A normal transaction has a little give and take but the rubber band has enough slack on one side or the other to keep the band from snapping. Right now, it seems like buyers and sellers need to stretch their side of the band to the max in order to just get the initial contract together. If something comes up on the inspection, there is no more elasticity when the buyer wants a bit more and the band snaps. It seems like each transaction is formed on the precipice and it is a high wire act to get to closing. People definitely need a professional on their corner to help stretch it to the closing table. I’m here for you.
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 | Jun 24, 2009 | Uncategorized
The tight credit market has been well documented. Commercial deals are falling apart, large companies are not buying smaller companies and fewer real estate transactions are taking place. 
The first step in the home purchase process is to consult a lender to see how much you can afford. This friendly conversation consists of a one-sided interrogation about your work history, financial history, bank balances, familial relations and taxes. At the end of the conversation you will get an indication from the lender about your chances to qualify for a loan. It is a tough environment right now and lenders are understandably cautious.
So let’s assume that this first conversation (pre-qualification) went well. You would then get busy with your Realtor (me!) in finding a new, great place to live. Once this happens (sometimes this takes awhile), a whole new set of deadlines and documents comes into your life. There are application deadlines, appraisal deadlines, loan condition deadlines, inspection deadlines etc. No problem right? As long as the dates are reasonable you are protected (this is where a good agent comes in).
But here is the rub. The dates as we have known them for the last half decade or so are out the window. It takes longer to do everything right now. Last summer the mortgage companies trimmed their staff, lean and mean awaiting the real estate trough. Their prediction was pretty good one over the winter but come spring the interest rates plummeted and a refinancing boom …well boomed. And when it boomed it didn’t take much to clog up the arteries. Then came some real estate transactions. What used to happen in 10 days is now 15 days. Appraisals now have to not only come in but need to be reviewed. A file goes through underwriting not once but up to seven times. Lenders are being careful, very careful and their caution is leading to much angst in making a deal happen on time.
The problem right now is that lenders are making their money right now on refi’s with no specific deadlines and no angry and impatient realtors calling asking about the status of a loan which was sent to underwriting last week. They would rather us go away for a little while, but that would be short sighted now wouldn’t it?
by neil kearney | Mar 26, 2009 | For Sellers |
Going green may not only be a good thing to do for the environment it can also end up saving you money. Boulder is an environmentally friendly place, from Climate Smart, to green building regulations, to a new solar array at the water treatment plant, going green is everywhere. With the new energy star tax credits and rebates it makes for everyone to do their part. Here are the details of the program.
What is Energy Star? Energy star is a government backed program established in 1992 that provides an international standard for energy efficient consumer products. Products that have the Energy Star seal meet the requirements set forth by the Environmental Protection Agency and the U.S. Department of Energy. The idea is to promote the use of products that will save energy and therefore the environment.
Rebates:
If you are considering a new appliance, furnace or home electronic go to Energy Star Rebate Center and enter your zip code check what type of product you are interested in and see if there are rebates available. These rebates are offered through the manufacturers.
Tax Credits:
This is a new program. Federal tax credits up to $1,500 are available when some energy efficient home improvements are completed. For details of the program click here. The home improvements must be placed in service between January 1, 2009 and December 31, 2010 and are only available for upgrades done on a principal residence. The tax credit is for 30% of the cost of the qualifying product for up to a total combined maximum of $1,500 per household. I can see this really coming in handy when an inspection calls for a new furnace. Most of the time the seller just wants to put in the basic, cheapest model. These are usually 80% efficient. They have no incentive to pay more money up front because they will not reap the energy savings in the future. Depending upon price, the seller may be able to save a bit of money by putting in a 95% efficient furnace and the buyers will be happy because their energy bills will be lower into the future.
This brings up an important point, energy star rated products tend to be more expensive up front but make up for it in the long run by saving money every month in the form of reduced energy bills.
Additional Resources:
City of Boulder Energy Resource Page
Boulder Water Saving Rebate Program
by neil kearney | Mar 25, 2009 | For Buyers, For Sellers
The real estate market in Boulder County is very interesting to study. On one hand we are doing great when compared to many markets, in its latest report FHFA ranked Boulder 17th in the nation in annual appreciation. I am very grateful! On the other hand sales are down to levels we haven’t seen since 2001. What’s up and what can you do about it. Here is a quick snapshot on how buyers and sellers should be thinking if they are looking to buy or sell a home in or around Boulder. I write a monthly statistics column in the Boulder Area Realtor Association newspaper The Realtor Review. Here is my lest entry. Let’s take a look.
Now is a great time to buy a house*. So why are sales in February down 24% from last year? The answer can be found in the asterisk. It is a great time to buy if:
1. You can buy a house and stay within the conventional or FHA limits.
2. You have a job, great credit, plenty of reserves and a letter from your 6th grade teacher.
3. You have confidence that your job is stable and that eventually everything is going to be okay.
4. You haven’t been scared to the point of inactivity by the images in the media; “Lost Trillions in Equity”, “Modesto Neighborhoods Decimated by Foreclosure”, etc.
5. You haven’t lost all of you savings in the stock market. It is easier to ignore and cope for some people than realize and act.
6. You don’t have a house to sell. See #4.
There are many thoughts running through the minds of our would-be clients and not many are positive. The six scenarios above are just a few of the variables in today’s market. Most of these challenges lead to one answer. Good homes in the lower price ranges are still selling!
There are many reasons why people buy and sell. Many of the reasons don’t wait for a better market. What the public needs now is accurate local information.
For Buyers:
· There are opportunities out there but our market is holding up very well. Sales price to list price ratio is still above 95% so offers at 60% of list price probably are not going to fly.
· Prices are holding steady. If you’re waiting for a big drop in our market you probably won’t see it.
· Take advantage of interest rates while they are low because all indications point toward our area being on the leading edge of the nation wide recovery.
For Sellers:
· Buyer’s have choices so your house needs to be both the best priced and best looking house in its price range. Many homes right now are not selling if they don’t get both just right.
· Now is not the time to put your house on the market at too high a price and wait and see. Be realistic now and save both time and money in the long run.
· Be ready to deal on inspection items. Buyers expect the roof to be in good shape and if there is a puddle under the water heater, replace it – it’s not going to get any better.
· Be patient and vigilant. There may not be many showings, so make each showing count.
The advice here becomes exponentially important as the price range increases. Right now 15% of homes under $500,000 in Boulder County are under contract while only 3% of homes over $1.5 million are under contract. Similarly, the absorption rate for properties under $250K is 4.25 months, between $250 – $500K is 5.71 months, $500 – $750K is 10 months, $750 – $1MM is 14.41 months, $1MM – $1.25MM is 22.73 months and above $1.5MM is 48 months of inventory.
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