Killer Deals

Let’s face it. These days, buyers want a killer deal. Some are even so bold as to tell their realtor that they want a killer deal. From what they have heard and seen, they think they have a legitimate request. Sure, everyone would like a great deal, no matter what they are purchasing. When it comes to buying a home though, the stakes are higher, emotions are higher, and egos step in and play a role. I understand all of this. I believe it is what makes me a good realtor. However, acquiring “a deal” means something different to everyone. Some want such a huge discount, it insults a seller. Others are a little more realistic and just want “under market value.”

So here is what I tell my clients: I absolutely want to help you get the best possible deal. But there are always compromises.  If you truly want a killer deal, then you will need cash to go to the auction held at the county courthouse to buy a foreclosure that no one else wants because it is either in bad shape or in a bad location. Then you will need to either have the cash or be able to acquire the cash to fix it up enough to live in it. If you are considering short sales, you don’t need cash, but you need time. Time to wait for the banks to sift through the stacks of paperwork to even give you a preliminary answer, so you can wait some more.

If you don’t have the cash, or the time, and you still want a killer deal, well, you may have to wait a long time. You can buy a foreclosure owned by the bank, but recently, the banks are fixing up the really distressed properties and are listing them at close to market value. Though I have seen some good deals. Otherwise, your choices are to buy a home from a “regular” seller who is not distressed and wants a good price for their home.

I would love to help you find a home. But you have to be realistic. To expect a seller, who is not in a distressed situation, to sell at a deep discount is not going to happen.

Is it Perfect Timing?

I am so often asked by buyers and sellers how I feel about the market. Is now really a good time to buy—or sell? The answer I usually give is, “it depends.” This is not a cop-out, as people who know me, know that I am always truthful in my responses and advice. It truly does depend on what your objectives are. For some sellers, who owe about as much as their home is worth, the answer would be, if you can, wait. You can rent it for now, or you can just sit tight until the market adjusts more favorably (in two to five years) If you cannot afford the mortgage payments, then that is a whole different ball of wax. (though talk to me, there are still options)

If you would like to buy a home now, while the prices are at historical lows, though you don’t have 20% as a down payment for a conventional loan, there are other options for buying too! FHA loans require 3 1/2 % down, and a credit score of 630, and the interest rate is very comparable to conventional loan interest rates. Awesome opportunity! In Colorado, CHFA, Colorado Housing Finance Agency allows you to put $1000 down with a 580 credit score (with some income limitations).

I just sold a home to newlyweds, buying their first home. They got a CHFA loan, put down $1000 and their payments are less than what their monthly rent was. AND—they get to claim the interest deduction on their taxes and have a home to call their own! And when the market improves, and they want to sell in five years or so, they will be realizing a return on their investment. What a deal!

So you can see—it really depends!

Space Ship for Sale

This is not really new news anymore, although, it sure is interesting! At least from a realtor’s perspective. And this is not really a spaceship either, but it sure does look like one! This home in Genessee has been off and on the market many times over the last several years. One claim to fame it has (in addition to its unusual shape and location) is that it was used in the Woody Allen film called “Sleeper.”

From Forbes magazine

When architect Charles Deaton designed the “Sculptured House” on Genesee Mountain just outside Denver in Colorado, he had definite ideas about its unique design.

“People aren’t angular. So why should they live in rectangles?” he said.

There’s no way anyone could confuse this house with the rectangular homes of the 1960s. The 7,500-square-foot home is three levels and curves unpredictably. It was designed as a sculpture first; the floor plan for the home was drawn up later (thus it was given the name, “Sculptured House”).

The architectural curiosity, constructed in 1963, was featured in Woody Allen‘s 1973 film, Sleeper. It was bought in 1999 by software millionaireJohn Huggins for $1.3 million. Although Huggins is now an angel investor, he was formerly chief financial officer of software companyJohnson-Grace, which developed a streaming-media application and was later acquired by America Online in 1996.

Huggins, 44, a Colorado native, said he had been interested in the home since he was a young boy. By the time he bought it, after nearly 36 years of neglect, the windows had been smashed in, the plaster was coming down, and there was snow inside the house. Three years and several million dollars later, Huggins added 5,000 square feet to the property–using plans that had been drawn up years before by the original architect–and completely redesigned the interior with custom-made modern furniture.

Located about 15 miles west of Denver, the home has five bedrooms, five bathrooms, a four-car garage and a media room. It was just listed a few weeks ago at $10 million, which includes the furniture. Rollie Jordan of Kentwood Cherry Creek is the exclusive listing agent on the property.

Interesting Times

I am asked so often (almost daily) “How’s the Market,” that I am getting a little bored with my same old answer. So it has prompted me to write a bit and share it with you, my favorite people on earth, my friends, family and clients!

People in general, are curious as to how this economy is affecting the real estate market, and many are equally curious as to how it is affecting me personally and my real estate business. I have had conversations with many of you about both. So here is the condensed version: the real estate market has its challenges. The entire economy does! Even though real estate is shifting, people will always outgrow their homes, get transferred, get married, have babies, retire, and you know—other life changes. So I know I will always have a job. And that’s good news.

Devon’s First Home–Buying Real Estate in Denver

I was recently privileged and honored to help a thriving young man purchase his first home. His name is Devon, and he is 24 years old. He started talking about buying a home about two years ago when I reconnected with him at his grandmother’s birthday party. He has been saving his money, working on his credit, and preparing himself to be a homeowner since that time.

We viewed about 30 homes and during that time I learned a lot about Devon. He is a very smart, kind, caring and intuitive young person, mature and wise beyond his years. He knew that the first property we made an offer on wasn’t the “right” home, even though the location was great, the price was well below market and it needed very little work. He decided that with some HOA issues and some incorrect information on the property disclosures, there was a good reason not to buy that house, which would be his first real estate purchase. So instead he waited for the “right” house. He found it, and we closed thirty days later. The home he bought was even better than the first. It was closer to work, less money and a better floor plan. It was a short sale that we stumbled upon just as it had been approved by the bank although the first buyer got cold feet and terminated the contract. Lucky Devon! He waited a week for his short sale offer to be accepted by the bank and we closed less than three weeks later. In addition to this being a great success story, it is also a great example of being patient, trusting your intuition, and of course having a competent, diligent real estate agent and mortgage specialist. Successfully buying real estate in Denver is an awesome experience! Congratulations to Devon!

A Great Coach Leaves a Legend—Life Lessons for a Real Estate Agent

One of my favorite human beings died last weekend. John Wooden, legendary basketball player and coach died at 99 on June 4, 2010.

I’m not really a basketball fan, heck; I’m not really a sports fan, even though I enjoy an occasional tennis match on TV. But coach Wooden made an impact on my life when I read the book, “Beyond Success,” and listened to the audio several years ago. His character, his behavior and the way he treated people was exemplary. He never cursed, berated or humiliated his players. He coached by guiding, encouraging, supporting and praising his players to success. No wonder he won so many championships! I’ve recorded a few of his most famous quotes that to me do a better job of summarizing his life than I could possibly do.

“Nothing will work unless you do.”

“The athlete who says that something cannot be done should never interrupt the one who is doing it.”

“Be more concerned with your character than your reputation, because your character is what you really are, while your reputation is merely what others think you are.”

“I’d rather have a lot of talent and little experience than a lot of experience and little talent.”

“Failure is not fatal, but failure to change might be.”

“Do not let what you cannot do interfere with what you can do.”

“Success comes from knowing that you did your best to become the best that you are capable of being.”

“Ability is a poor man’s wealth.”

“The main ingredient of stardom is the rest of the team.”

“You can’t live a perfect day with doing something for someone who will never be able to repay you.”

What does this have to do with selling Real Estate in Denver? Maybe nothing. Maybe everything. Selling Real Estate is all about relationships. Since John Wooden was so great at relationships, mentoring leaders and encouraging success in all individuals, maybe there is something there for us to pay attention to. I know there is for me.

What do you know about Bed Bugs?

I just met Walter Penny today at Panera Bread. His dog, Macaroni sniffs out BED BUGS! He’s a funny guy and even has bed bugs to train his dog! Watch this clip from Channel 9!

Buy Your Next House Without a Realtor!

Did I really say that? Buy your next house WITHOUT a realtor? Yes, and here’s the reasons why. Hmmmmm….I’m not thinking of any right now! Chances are, I never will.

OK, all jokes aside, I hear about this scenario A LOT! I recently read an article that one of my colleagues, Jim Smith, a realtor in Golden, CO, wrote regarding not using a realtor to purchase a home. His article was inspired by an individual who had visited one of his open houses—a seemingly educated and informed individual who expressed his rationale for not using a realtor when purchasing his next house. Because of a negative experience, he had unjustly categorized all realtors. In real estate, as in any profession, you may occasionally find unethical, dishonest jerks, and yes, sometimes even weirdoes. And it’s too bad, because there really are many outstanding realtors out there. I believe I fit in this category. 

Why would anyone avoid using a real estate agent to help them buy a home? Heck, it’s free, as in, it costs you NO MONEY! My guess is that these folks believe that they can apply the buyer agent’s fee, that they think they are saving, toward a discount on the home, if they buy through the listing agent. Trouble is, this just doesn’t happen. Not that I’ve experienced anyway. 

So in my opinion, not using a realtor to assist you in the purchase of your home makes less sense than representing yourself in a lawsuit. You don’t pay the fee for the realtor when you buy a house, the seller does. When you buy a house, there are many legal documents to read, understand and sign. The consequences of not fully understanding what you are doing and/or what you are signing can be risky both legally and financially. Without a realtor you may not know some of the potential risks that may occur during any step of the process. If you purchase without a realtor, you are most likely dealing with the listing agent, hired by the seller, paid for by the seller, and representing the seller. This means they are not representing you or advocating for you. You may be a good negotiator, but how do you know you are negotiating a good deal or even a fair price? Below I have listed a few points I urge you to consider: 

1. Are you avoiding using a realtor to assist you in the purchase of your next home because you think you can do a better job yourself?
2. How do you know if you are paying a fair price, or better yet, getting a good deal. Do you have the resources to research all similar homes sold, listed, withdrawn and under contract in the last six months?
3. What makes you think that the listing agent is telling you all that you have a right to know? After all, he is working FOR the SELLER and is required by law to represent the best interests of the SELLER!
4. What makes you think that you can negotiate a better price in an industry where you are not the expert?
5. Do you really think the listing agent is going to give up part of his commission to YOU, a stranger?
6. Do you know the history of the property? Do you care? Should you care?
7. Are you hoping to simplify the transaction by eliminating the buyers’ broker, the agent representing YOU?
8. How many houses have you viewed before making an offer on one? A realtor will most likely show you only houses that meet your criteria.
9. While searching for a new home, are you expecting to contact and ask each listing broker to show you just their listing?
10. Do you know the difference between agency agreements? Sellers’s agent, Buyer’s agent, Transaction broker vs. Customer?
11. When it comes to the inspection, do you know what your rights and obligations are? Do you know what to look for and how to handle any objections?
12. Do you really trust the listing agent to tell you everything you need to know? How could he—he is working for the sellers!
13. What if something goes wrong during the transaction? Will you be able to represent yourself adequately? If not, you may have to hire an attorney which will cost you time, effort and possibly thousands of dollars. Is that something you are willing to risk?
14. Are you sure that the listing agent is treating you fairly, informing you of all facts required by law? Are you sure this agent is honest and ethical? Do you really want to forgo having a realtor represent you at the risk of saving a thousand dollars or two? 

It’s your decision. Make it wisely. This will most likely be the biggest purchase of your lifetime.

Staying on Top

Part of my job as a realtor, especially during these economic times, is staying informed—staying “on top” of the news and what is happening in the market—and the world. I am finding that quite a challenge! Not only is there an enormous amount of news and information to sift through, but much of it is filled with forecasts and predictions on what the economic gurus believe is going to happen. Holy, moly! With all of these expert opinions, what’s a person supposed to believe? What is a realtor supposed to believe and pass on to her clients, friends and family? It’s overwhelming! I for one try NOT to let myself get caught up in the all the news and hype. So much of it is negative, and I have to draw the line somewhere. Part of my job as a realtor is also to be positive, optimistic and encourage my clients toward making the right personal decisions regarding buying or selling real estate.

 SO, this is how I approach the news, the economy and the world situation… I listen to news on the radio for one hour in the morning, (yes that’s how long it takes me to get ready for the day—sometimes even longer!) Beyond that, I pick up a few breaking headlines from the Denver Post online. I am especially interested and aware of the Real Estate market in Denver, how we fair in the nation, and in the world. I attend real estate classes, seminars, workshops and often times I pick up something of interest just by attending events and volunteering at the South Metro Denver Chamber of Commerce.

 I DO believe Denver is faring better than most other markets. As a matter of fact, it was rated # 1 in a recent interview with real estate expert Barbara Corcoran on the Today Show, May 19^th. Click on the link: www.gawkk.com/housing-markets-most-likely-to-rebound-fail/discuss#3082512  Also, according to our office stats, showings, closings and listings are all up. All good news!

My First Time

YES! This is my first time! —-Blogging, that is! I just took a class on Friday and want to thank the instructor that was so helpful and made it seem so easy—thank you Mariana Wagner, realtor-blogger from Colorado Springs! The jury is out on how easy this is…or is not. I will keep you posted!

Since this is my “maiden voyage,” my first blog, I will just tell you a little about me and why I am doing this. Believe it or not, I used to be very computer saavy. But then things started changing at lightning speed and I moved beyond just sitting behind a computer. So I guess blogging is my attempt to regain some of my “techiness” that I feel I lost. I also learned (last Friday) that it is a great way to become an (even better) expert in my career and also get marketing exposure. (hope that is true!)

Selling real estate is not my first career. (amazing) I’ve had many careers before this which includes school teacher, graphic designer, marketing manager…. However, helping people buy and sell real estate in Denver has been the absolute best! I’ve incorporated almost ALL my greatest talents and skills and rolled them up into a nice little package career which is now real estate. I feel blessed and honored to be able to work at a job I really enjoy, but most importantly, I just really enjoy helping people get what they want. And ocassionally, it doesn’t even involve real estate! More next time…