The Silver Fern

Gunbarrel Shaping Up [Development]

2012-01-29T16:00:00.000-07:00

When it comes to real estate, downtown Boulder gets most of the publicity. But there's plenty of high impact development planned for outside of town too. Let's talk about Gunbarrel Center.

It's located at the southwest corner of Gunpark Drive and Lookout Road (map), Developers are planning approximately 22,000 square feet of new retail/commercial space and 251 attached residential units on 9.3 acres. The current proposal will exceed regulations for setbacks, height limits, parking regulations, and open space. Hence the need for the public hearing.

If you're wondering how this came to be, think of it as a direction result of the Gunbarrel Community Center Plan (GCCP). Adopted in 2004, the GCCP is a vision to remodel the commercial area into a more viable, vibrant, easily accessible, and pedestrian-oriented center to serve the Gunbarrel community.

GCCP Goals:
1. Provide opportunities for developing a viable, easily accessible, pedestrian-oriented
retail town center of appropriate scale to serve the Gunbarrel subcommunity, outlying
subdivisions and employment centers.

2. Provide safe and convenient vehicular and non-vehicular connections between the
commercial center and the surrounding area and within the center itself.

3. Provide a commercial center with a unique identity that is the heart of social and cultural
activity in the subcommunity and supports day and evening activity seven days a week

Gunbarrel Center Site Plan

It's a little fuzzy in the picture (click for a larger one). You're looking at 14 different buildings occupying over 423,000 SQFT of space. There are 462 car parking spots, 112 spots provided for bicycles, and over 16,000 SQFT of private open space (terraces and balconies).

Project Renderings
Here's what Gunbarrel Center might look like.

A view down main street, featuring a competitor to Silver Fern (red circle added)

A guy in a suit (must be from out of town), walking down street "A"

Want To Get Involved?
First, read the Proposal. Next, attend the Public Hearing this Thursday at 6pm.

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Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.

What's Wrong with Zillow [Wise Up]

2012-01-28T07:00:00.000-07:00

by Osman Parvez

I'm being a little blunt, but somebody has to say it. Not only is Zillow wrong on their property valuations, up to a staggering 80% of the time according to one study, they also disguise advertising as agent reviews. And yet, despite providing poor quality market information and very confusing agent reviews, Zillow remains one of the most visited real estate websites.

My Zillow Experiment

Let me tell you about how I learned about their agent ratings.   Last year, I experimented with our advertising budget by becoming a "Premier Agent" and paying Zillow to feature my reviews.   In exchange, Zillow promised to put my face and my stellar reviews (my Zillow profile) next to half of all the property searches in zip code 80304.

So for a price, you'd see my face next to 50% of property searches in 80304.   You could click on my profile and read about how great I was as an agent.   This would translate into dozens of new clients, their salesman promised.    Well, caveat emptor, the advertising was a dismal failure. According to the statistics Zillow provided, yes I got a lot of page views.    But when it came to client leads, all I received was a dozen or so phone calls for an agent in California and few reluctant leads via email. This translated into zero closings attributable to advertising with Zillow.   For the price, I could have schmoozed each of those leads with dinner at Frasca, several times. At least I would have gotten an excellent meal from the expense.

So, I decided not to renew my contract.   I didn't get any direct business, which was what their salesman promised, but at least my profile was viewed thousands of times. No, the big reason I pulled the plug was because of how agents are portrayed on Zillow.

Ads Should Be Clearly Labeled

Let's say you're a Realtor and you want your profile to appear next to every property in a certain zip code. No problem, Zillow wants you to pay them thousands of dollars in exchange. Here's the thing. When your profile appears next to those properties, Zillow doesn't clearly indicate it's a paid placement. Instead, they put a tiny off-white "Premier Agent" logo next to the profile. I don't know about you, but I can barely see an off-white logo on a plain white background. Even when I squint. And my eyes aren't that bad. Most people don't even realize that they're clicking on advertising and that's wrong.

Let me be clear. I don't have a problem with businesses that sell advertising or customers that pay for it. But it should always be 100% clear when you're clicking on an advertisement (or sponsored link), especially when it comes to search. Google does it. Lots of other websites do it. But the scummy ones? They mask paid advertising with the legitimate search results.

This is what you see when you click on the little logo for Premier Agent.

Sorry Zillow. Premier Agents are advertisers.

Here's what they promise, currently "starting at $128/month." That price might be for zipcodes in rural Alabama but here in Boulder, you're looking at a cost closer to 10x that figure.

Similar Scams
I have the same beef with the Tom Martino Troubleshooter Network. Like Zillow's search results, Tom Martino is not making it clear that businesses are paying a ton of money to be part of his network. And for someone who has built his reputation on "fighting for consumers," this sort of racket is surprising.

I'm sure a lot of the service providers in the Tom Martino Troubleshooter Network are great. Maybe they're even better than the typical plumber, or handyman, or home inspector. Heck, one of our most recommended inspectors forks over the dough in order to advertise himself as part of the brand. But my inspector and other service providers are not part of the Trouble Shooter network because they're good. They're on the directory because they pay Tom Martino.

Zillow Makes It Hard to Find a Good Agent

Back to Zillow.   Here's where it gets even weirder.    Let's say you just want a good buyer's agent and so you search for Realtors.   As I wrote above, Zillow makes it difficult to search for agents directly and accurately sort them by rating.    I know because despite being a paying Zillow customer in 2011, my profile no longer appears when you search for agents in Boulder.    This is despite a bunch of very positive reviews, which should put me on the first page of the search results. Try it yourself HERE.

Am I worthy of first page results?    We have excellent reviews on Zillow and I'm a heavy contributor to helping buyers and sellers understand the market.   Via this blog, I've written more than 1,000 articles about real estate in Boulder, all available for FREE. I've held workshops and seminars about understanding the market with no pushy sales tactics. Just straight up, solid information.   I've contributed to the job of educating buyers and sellers enormously, yet all of my effort counts as zero contributions to Zillow.   It doesn't make sense, unless you're setting it up entirely for profits and don't really care about the quality of agents.

In a transparent and effective review system, visitors to Zillow should quickly and easily be able to sort agents by their ratings. Instead, when visitors try to do that, they're presented with paid advertisers. The issue isn't reviews, it's how they appear on Zillow's website. It's difficult for a visitor to tell the paid advertisers from the non-paying agents, and in some cases, the non-paying agents don't show up in the search results at all.

So is Zillow playing games?    Are they favoring paying clients and masking their advertisements to look like search results?    You be the judge. I just thought you should be aware of the issue.

p.s. I'm not the only one who has a problem with Zillow's shenanigans. I'm also not the only one who is noticing their crappy Zestimates and regurgitated stale listings. And yes, I've written about Zillow before (see the past is the future).

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Non-traditional Popcorn Chicken

2012-01-27T08:00:00.000-07:00

by Dallice Tylee

One of my absolute favorite things about real estate is the people that I meet and the friendships that linger long after closing.

Last week I received an email from a friend, asking me to forward a chain letter of sorts... but she called this one a "recipe swap". I don't usually do these sorts of things, but it seemed harmless and I was feeling uninspired in the kitchen of late.

Several recipes have come back to me this week.... but I was most excited to see one from friend-client, Kathy. After all, I have eaten at her house and it was good!

I was not let down.

The following recipe is meant to be shared and I just couldn't risk waiting another 5 years for the next chain letter opportunity, before I could pass it on. So here goes....

Easy Chicken Recipe

Here is a chicken recipe that also includes the use of popcorn as a stuffing - imagine that!

When I found this recipe, I thought it was perfect for people like me, who just are not sure how to tell when poultry is thoroughly cooked but not dried out. Give this a try.

4 - 5 lb. Chicken
1 cup melted butter
1 cup stuffing
1 cup uncooked popcorn Salt/pepper to taste

Preheat oven to 350 degrees.

Brush chicken well with melted butter salt, and pepper.

Fill cavity with stuffing mixed with popcorn.

Place in baking pan with the neck end toward the front of the oven.

Listen for the popping sounds.

When the chicken's arse blows the oven door open and the chicken flies across the room and lands on the table, it's done and ready to eat.

Photo courtesy: Herman Saksono

Kathy concludes: "And you thought I couldn't cook!"
Hahahahaha!

I don't know about you, but I'm feeling more inspired now. I'm lucky to have such wonderful friends and clients. :-)

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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.

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Notable Sales in Broomfield

2012-01-26T07:00:00.000-07:00

by Robbin Merta

Even though December is typically a low-key month in real estate, people still buy and sell all year round. If you're a seller, it's important to address any weaknesses your property may have, if you're able. Buyers are often expecting to negotiate better deals in the off-season winter months, and you don't want to give them more leverage. Here are a few properties that sold in the month of December where the sellers and their agents appear to have positioned themselves well for the market.

12578 Alcott Street - $236,000

This 2343 sqft ranch in Willow Run provides all 3 bedrooms on the main level. Hardwood floors, brand new carpeting and a pool table included in the partially finished basement complete the package. The sellers knew that a lot of buyers have high expectations right now and threw in a $500 flooring allowance for good measure. In return for a full-priced offer that came in 4 days, the sellers paid $3000 toward closing costs.

13384 Wildflower Street - $258,000
The sellers of this home capitalized on their greenbelt location and added a large Trex deck in the backyard. With 3 bedrooms, 2.5 baths, hickory floors and 3-car garage with workshop, this Trails at Westlake property commanded an offer in 4 days. Some of the big tickets items had already been addressed - new carpet, new roof, new driveway - giving the new buyers some peace of mind and selling just over the asking price with $1000 toward closing costs.

15460 Mountain View Circle - $1,700,000

Even though the luxury home market has seen big discounts over the past couple of years, some still choose to build custom. This equestrian property in north Broomfield boasts 5 bedrooms, 7 baths, 4 car garage, mountain views, trails, granite and over 9700 sqft. Built in Spruce Meadows by Coenen Homes, they originally listed the 2.76 acres for sale in February of 2010 for $489,000, lowering it 6% later in the year to attract a buyer.

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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Robbin at (303) 917-7143.

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Listings Worth Checking Out

2012-01-25T07:00:00.000-07:00

by Osman Parvez
In Boulder, inventory of available houses begins to build in January.    As selection grows, more buyers also enter the market and competition for the most desirable houses is likely. It's important to pay attention.

This morning, I sifted through the new listings in Boulder. I removed the obvious dogs (bad locations or other problems) and came up with a few worth a visit.    I'll be scheduling previews for the weekend (assuming no forecast powder). Call me if you'd like to tag along.   303.746.6896.

Remember, the only way to feel confident about the offer you're making is to know the comps. That means visiting the properties, preferably with a buyer's agent (my bio) who will point out pros and cons. You cannot rely on listing photos and flowery descriptions.

Entry Level
540 S. 40th Street.    I'm always a little worried when listing language talks about "the bones" of a house. Usually it means the interior needs to be gutted but this one looks like it's in pretty good shape.    South facing, several houses back from Table Mesa Drive, and a row behind the retail/commercial stuff.     Good for Southern Sun fans (stout month!).    $399,900 asking.

1040 Aurora Ave.     This rental is in the zone on University Hill where income properties are turning into owner occupied.   The listing conveniently leaves out the lot size, perhaps because it's tiny.   Only 2,256 SQFT which means that expansion is severely limited.   If you're thinking owner-occupied, save some cash in your budget for improvements. The location is close to Chautauqua and CU.   I can see an investor picking it up, having fun with remodeling, and turning it into a executive style rental property. Asking $449,000.

284 S. Peak Road.   The key with mountain property is not going so far up in elevation that winter lasts an extra three months.    This four bedroom house is about half the distance to Ned, near the Switzerland Trail. It has a wrap-around deck, lots of windows to let in the sunlight, and nice views. From the photos, the design feels like a mountain cabin but it's functional as a real house. As with other mountain properties, your due diligence should include your winter commute, fire insurance costs, view corridors, and potential water/sewer issues.   Asking $450,000

Mid Range
2434 Mapleton.    I like this house because it has a nice design, good indoor/outdoor transition, and a two car garage.   It's not super close to downtown but it's still in a very good location. Frankly, you should click on the link for the listing agent's engaging description and wildlife photography.   The front-side house and lack of a yard could be an issue for some buyers, or maybe it presents an appealing low maintenance situation for others.   Asking $675,000.

901 Poplar.   Close to Wonderland Lake open space, not on busy Poplar Ave, plenty of space, tall ceilings, and relatively recent construction.   The kitchen looks a little cramped (it could just be the listing photo) and at this price range, you really want a house that flows for entertaining.    The seller appears to be the first owner. They paid $475,000 in 1999.    Now asking $699,000.

Higher End
778 13th Street.   Nice design, good indoor/outdoor transition, on a decent size lot. The detached guest house is a bonus for out of town visitors or an office (hi mom!). The owners put a lot of love into their remodeling/design work.   Not a fresh listing, but the price has dropped $100K since it hit the market two years ago (check back on this blog for my video on low-offers and another reason why this one should make your show list). Asking $1,050,000.

2930 Island Drive.     There aren't a lot of properties with water and mountain views within the City Limits. This one has plenty of bedrooms, large square footage without being excessive, and an appealing design. It looks like the kitchen could use an update. If my buyers were interested, I'd be sure to also show them a few newer options at Northfield Commons and tell them that due diligence should include a check of the air traffic from the nearby airport.    Asking $1,150,000 (the owner paid $850K in 2005).

1065 8th Street.   Realtors aren't supposed to fall in love with property, but I'm guilty when it comes to this block of 8th street. Maybe it's because I once lived just up the street and adored the location. Or maybe it's because we recently sold a fantastic nearby property to some of our favorite clients.    Either way, if you're in this price range, you should take a look. This one has partial views, nice decks, and may only need cosmetic updates. On the due diligence side, I'd encourage my buyers to check the stucco on inspection. It could be EIFS which has been known for water retention and may require a higher standard of TLC.   Not necessarily a deal killer, but something I'd want my clients to know.   Asking $1,249,000.

Here's a link for those of you who want to see the Full Set.   Ignore the attached dwelling that snuck in there.   See you in the wild...

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If It's Broken, Fix It!

2012-01-24T08:00:00.000-07:00

by Dallice Tylee

Seriously! I am just a little bit tired of hearing buyers complaining about the condition of the properties that are being put up for sale in and around Boulder.

It's not that I don't feel their pain or agree with them. I do! We too bought a house that needed love. Huge understatement.

But short of bitching about it in a blog post and hoping that all the sellers in Boulder sit up and take action (anybody?), it might be fair to say that my buyers are barking up the wrong tree by complaining to me, because there is very little I can do about it.

Or is there?

I do feel that it's my job to (nicely) tell it like it is, when I have a buyer getting ready to list. Cleanliness, staging and safety are all very important in making a first impression and I will be reviewing and reporting my findings to the buyer, for their own good.

What may be equally important is presenting a property to a potential buyer, that doesn't scream "My owners have neglected me", "I need basic maintenance" or "Imagine the deferred maintenance that you can't see!"

For the love of God, don't just price it to sell "as is" unless there is absolutely no other way!

What a buyer wants to see is evidence that the home owner cares about the house. Dated is fine, if the place clearly demonstrates that the "bones" have been well maintained. But when I see that the seller ran out of the trim for doors and windows and "finished off the job" by attaching a piece of baseboard over one door, please don't expect me or my buyers to believe that corners were not cut in other areas also.

The good news is that when a buyer does find a property that has been cared for, maintained, updated, cleaned and shows to sell, they are wowed - and likely racing to beat other buyers and submit an offer, even in the slower season.

I showed one such house a few months back. It was clear the sellers were well informed about what is attractive to a buyer and were motivated to meet those expectations. All was looking wonderful... until we saw the mud room door to the back yard....

Oops is right!

But you know what? The buyers looked at this, had a giggle and passed a "shit happens" glance between themselves. Who hasn't been here before?

The seller had done everything right. The garden looked good because the weed wacker had been implemented. The sellers admitted their faux pas and the buyers believed this window had not been damaged for months and months.

I hear you ask "What else could they have done?"
You would be surprised! On another day, in another house, the note may have read:

...And my buyers would have instinctively thought that:
A) The replacement cost was more than $100 and/or
B) The sellers were too lazy to fix other things in the house too.

To the seller of the weed-wacked window; I applaud you!

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Build New or Buy Used?

2012-01-23T07:00:00.001-07:00

by Robbin Merta

After doing some initial research, both online and through showings, one of my buyers has decided to build a new home in a development near Stanley Lake. The model home is lovely, and they are very excited to break ground. New construction has both advantages and disadvantages, and it's important to know what you're getting into before you sign on the dotted line.

PROS:

You get a brand new, clean home with new materials and appliances, usually with some kind of limited warranty offered.

You can drive the neighborhood and select the lot you prefer; location and views make a big difference in the value of the home.

You get to pick out custom finishes, floorplan options, colors and elevation, depending on what stage of construction your new home is in when you sign the purchase contract.

Materials and appliances are all the latest models and designs, taking advantage of things like energy efficiency and current design trends.
You can put in the infrastructure for systems you plan to install later, like solar panels, when it is most cost-effective to do so during initial construction.

Builders often offer incentives to help with closing costs, which is contingent on used their "preferred lender."

New developments are generally planned in areas of expansion rather than decline, improving future appreciation.

The neighborhoods themselves are often more thoughtfully put together for today's lifestyles than older, pre-existing neighborhoods. They may include new recreation centers, schools, trails or other amenities.

CONS:

Builder's contracts do not offer the same level of protection to buyers that the standard Colorado Real Estate Commission residential contract does. Usually, once the financing is approved, there is little recourse for a buyer to terminate the contract and still get his deposit returned, or any other monies paid thus far.

While you are free to use any lender you want, if you choose a lender other than the builder's there can be sacrifices. For instance, the earnest money becomes non-refundable and the deadline to prove evidence of all funds necessary to close becomes tighter.

Builders reserve the right to make certain changes to the home if they come across unexpected situations, e.g., hitting bedrock while digging the foundation, forcing a flip of the entire home's floorplan.

While it is in the builder's best interests to finish your home as soon as possible, they give themselves a large margin of error due to unforeseen events. They could legally keep you waiting two years or more for your closing date.

While you have the chance for an independent inspection of your property before closing, there are no guarantees regarding unsatisfactory items. Most builders will work with you so that you are happy with the final results, but you cannot delay closing or terminate the contract based on these items.

Depending on what stage of development your street is in, it may be difficult to tell how close other houses will be or what your views will look like from different rooms. If it is a largely undeveloped area, it's also important to check zoning for an idea of what the surrounding properties may become in time.

Developments can have very restrictive covenants regarding new construction; be sure to review all of these docs as they may have certain time requirements for such things as completing your landscaping (if the builder doesn't) or even putting up window coverings.

Buying in a brand new development can mean you will be inconvenienced with construction traffic, dirt and noise for many months, sometimes years, after you move in.

Builder upgrades can be expensive, and charges like lot premiums can take a long time to recoup. Depending on the local market, you may have to stay in the home for many years to make money on resale.

In the end, it's about your budget and meeting your specific needs - be sure to ask lots of questions! Better yet, hire a Realtor to represent you ( I happen to know one). Most builders want to deliver you a good product, but make no mistake - they are looking out for themselves, not for buyers. And since builders are highly unlikely to pass on any commission savings to you should you have no buyer's agent, getting your own representation is definitely in the "PROS" column.

images: BCRE, USACE

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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Robbin at (303) 917-7143.

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Rent or Buy, The CU Parents' Dilemma

2012-01-20T07:00:00.001-07:00

by Osman Parvez

Every February, CU students line up to "prelease" rentals for the fall term.    Prices per bedroom start at about $700 per month for anything close to campus.   If you want to live on the Hill, expect prices to start at about $800 per bedroom.   Want your own place, not a shared house, expect monthly rent to exceed $1000.

The Parents' Dilemma
Most CU undergraduate students will spend their first year living in on-campus housing. After that, they'll want to live off-campus. If they rent a bedroom for the remaining three years, and you're looking at an expense of at least $25,200 plus rental insurance.

Rents may also continue to rise, as they have for the past 5 years in Boulder. Rents are rising because underwriting standards are tight. This means a huge number of potential buyers are renting instead. Meanwhile, CU increased Freshman enrollment by 500 students this year.    It's supply and demand.

Instead of renting for $25,200+, many parents opt to purchase a condo near CU.    Given ultra-low mortgage rates and the lack of return in other investments, this can be an attractive option. It gets even better if you have multiple children that might use the condo and you can extend your holding period beyond 3 years.

Peace Of Mind Isn't About The Numbers

Good Luck with Finals

As I'm writing this, I realize that for most parents who decide to buy, it's not about the cost.   It's about peace of mind.

Let's just say that certain parts of town, particularly near fraternities and sororities, are more lively than others. They also experience higher crime rates.    Do you really want little Johnny living in that zone? And do you want to pay more for the privilege?

What about maintenance? Some landlords are very responsive.   They own clean, well maintained units and if a problem arises, they are on top of it immediately.    These are the good guys.    Then there are the slumlords.   The owners of these properties look at them as cash cows; every dollar not spent on maintenance is a dollar in their pocket. They ignore problems and do the least possible.

For the most desirable locations on the Hill, slumlords can do very little in the way of maintenance and still find a line forming to rent the property.   And don't rely on the city's rental housing inspection to give you comfort. It doesn't take much to pass.

But what if buying were about the same cost as renting?    Would it give you a reason to consider the option?

The Numbers

Here are what the economics of owning might look like. For $259,900 you can purchase a 2 bedroom, 2 bath unit at Gold Run (example).    Full disclosure; it's my listing.    There are 9 other units currently available (click here) with prices that start below $200,000.   Keep in mind that the price depends on how many bedrooms, whether the unit was recently constructed, has elevator access, underground parking, views, and whether it over-hangs the creek (among other factors).

Historically, Gold Run has been a good choice for parents because it's directly adjacent to CU, on the bike path to downtown, and not in the party zone (i.e. the Hill). It also has a decent health club facility and reasonable HOA dues. There's a big grocery store nearby and plenty of other shopping/entertainment options. There are other options available in Boulder, of course, and you should see them before making an offer.

Taxes for this condo are currently about $1,700 per year and you'll want to buy some homeowner's insurance. So, let's estimate taxes and insurance at $2,100 per year. If you buy a unit with recently upgraded mechanicals (heat, a/c, water heater), such as my example, you can expect little in the way of additional maintenance inside the unit.

Put down 30% and obtain a 4%, 30-year mortgage. Your monthly payment is looking like $1,044 (including insurance and taxes).    Toss in another $286 for the HOA for a total of $1330.    Rent one of the bedrooms out to a friend for $700/month and your monthly cost is $630.    Over the three year period, that saves about $2,500 over renting. I'd consider that about a break-even.

When Your Kid Moves Out
Assuming a 1% rate of appreciation, conservative for the long run in Boulder, you're looking at a sale price of $267,812. That assumes your kid isn't on the "five year plan." If you choose Silver Fern to represent you again (repeat client), I will give you a big break on the commission. But let's say you didn't know better, chose one of my competitors and pay the full 6%. After paying the fees and the loan balance, you'll still end up getting about $80,000 in net proceeds, or drumroll... approximately your down payment.

So appreciation washes out, too. Again, the real benefit is in peace of mind. Your kid will be living in a clean, well-maintained unit right next to campus. They won't be dealing with a slumlord and because you chose wisely, they won't live on the Hill next to the greek houses, the pot shops, and the late night parties.    Instead, they'll have a nice fitness center, volleyball and tennis options, and a fairly quiet place to live and study (especially if you buy on the top floor).

When you sell, hopefully the market will be in your favor, too. Location-wise, Gold Run is well positioned for downside risk protection (and upside potential). It's right where CU is growing the most, with hundreds of millions recently spent on new buildings. Of course, that doesn't make it immune to market forces. Annual appreciation could be greater than 1% during your holding period or it could lose value.

If the market is down when you want to sell, my advice would be to consider keeping and renting it.    At $1400 per month, the rent covers the loan and the HOA nicely.   Finding a tenant at Gold Run is also not challenging because of proximity to CU. After 3 years, you may even be able to bump the rent a bit.

What About...
I tried to keep it simple in the example above, but there are lots of additional factors you should think about.   For example, you might qualify for depreciation during your ownership period, a potential tax shelter.   Most of our clients don't qualify (they earn too much), you'll want to talk to your accountant about that. In this example, I assumed you don't qualify for depreciation.   If you are claiming your child as your legal dependent to get the deduction, that might also influence how taxes and capital gains are handled on the property. Again, talk to your accountant.

I'm also ignoring various small transaction fees in my example above, adding them up and you'll probably end up at a wash.   For example, when you sell, you'll pay for title insurance and the title company will also charge you a few hundred bucks to handle the closing.   If little Johnny punches holes in the walls or otherwise trashes the place, you'll pay for a bit of clean-up in order to sell the unit.   But you would have paid the slumlord damage charges too, so that probably nets out.

Final Note
Owning a rental unit in Boulder (or anywhere else) is not for the faint-hearted, but it can be a better return than your alternative.   This goes especially for the parents of a CU student. If you rent, you'll pay the slumlord a guaranteed $25,200 expense. Buy intelligently on the other hand, you'll have expenses that are about the same but more importantly, you'll also have deep peace of mind.

It's true, prices could fall further. Anybody who tells you different either doesn't know better or is not being honest. However, after 5 years of downturn, I believe the big drop is over and downside risk is limited. To help you get comfortable, I'm happy to walk you through the price history at Gold Run, or any other development.   You should know how a development fared during the most recent downturn and during the big upswings of the past.   The past is not the future, but that analysis should give you some comfort.

Before you buy at Gold Run (or anywhere else), you should also do your compete due diligence.   HOAs can be over- or under-funded with maintenance reserves. Management companies change.   Development patterns can have a huge impact on appreciation.   Some units are energy efficient. Others are horrible inefficient. At Silver Fern, we can't be legally responsible for the due diligence but we will do our best to help you along the way. When you call me (303.746.6896), ask about my due diligence checklist.

images:
gilmorec

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Conservation Easements

2012-01-19T08:00:00.001-07:00

by Dallice Tylee

Like me, you have probably hiked a trail or stared across undeveloped land and admired our beautiful Colorado landscape. I am occasionally greeted with the thought "Lucky for us, no one has (or can) build here and ruin the view!"

I had heard of conservation easements, of course. And often wondered how they worked and what the advantage to the land owner might be.

Yes, yes, there is such a thing as giving out of the goodness of one's heart with no thought of receiving, but it stands to reason that if there is also some benefit or financial upside to the giving, there is likely to be more giving!

So here it is...

Legislative changes due to HB11-1300 make available a chunk of money for tax credit certificates, which are issued when land is donated and designated a conservation easement.
In 2011 there was $22,000,000 and it was all used.
In 2012 another $22,000,000 was available (see table below) and in 2012, there is a whopping $34,000,000 available.

All entities that accept a conservation easement for which a tax credit is claimed must be certified by the Colorado Division of Real Estate.

In order to claim the tax credit, the donor must obtain a tax credit certificate from the Colorado Division of Real Estate.

The Division issues tax credit certificates if the donation meets the right criteria and in the order that the application for the tax certificate was received. The amount is then deducted from the available balance.

You can find more information about the tax credit and get guidance on applying for the credit certificate Division of Real Estates website.

For the tax credit application, click Here.

For the rules regarding the submission of a claim for a tax credit, click Here.

It truly is a win-win.

Instead of selling the real estate - often not easy and then subject to the wants and needs of the buyer, the seller donates it with the specific intent that it is designated a conservation easement. The donor receives the tax credit as an incentive for the donation and rests assured that the land (possibly adjoining his remaining property) will not be developed.

The rest of us (people and wildlife) enjoy the open space and benefit from unobstructed views and natural places that are irreplaceable in Colorado.

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Know the Numbers - Rock Creek Ranch

2012-01-18T07:00:00.014-07:00

by Robbin Merta

I have several friends who call Rock Creek Ranch in Superior their home. They like the plethora of restaurants and shopping nearby, the wealth of jobs at Interlocken, the Boulder Valley School District, and the convenience of the Denver Boulder Turnpike. Rock Creek Ranch is Superior's largest residential development, subdivided in 1987 and boasting over 2700 single-family homes and 1800 multi-family homes.

So how has Rock Creek fared through these tough times? The chart below tracks the number of sales of single family dwellings in the neighborhood since 2006.

The number of sales follows the seasonal pattern across the years but has steadily decreased since 2006. However, the total number of sales for 2011 stands at 112. This is a decrease of only 3.5% from the year before, compared to the 22%, 8% and 4% sales decreases from 2007 to 2010. It appears that the decline is leveling off, hopefully demonstrating that the bottom of the market has been reached.

If you are thinking of selling your home and would like a similar history and evaluation of your neighborhood, give me a call. Accurately pricing your home from the beginning is important, and knowing your local sales numbers is a crucial part of selling your home quickly and for the most money.

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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Robbin at (303) 917-7143.

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Serving Those Who Have Served... VA Loans

2012-01-17T08:00:00.001-07:00

by Dallice Tylee

What is a VA loan? Who is eligible to apply for a VA loan?

More than 25 million Americans are eligible to apply for a VA loan. With lighter qualification requirements, often lower interest rates, no monthly mortgage insurance and often no down payment, this loan is often the best or only way an otherwise high risk borrower, might be able to achieve home ownership.

Loans must be used for the borrowers own occupancy.
The VA will guarantee a maximum of 25% of the loan, up to $104,250. This means the loan amount can be up to $417,000.
A veteran may borrow the reasonable value of the property or the purchase price - which ever is lower. The funding fee may also be borrowed.
The guaranty means the lender is protected against loss if the home-owner fails to pay the mortgage and it effectively replaces the protection the lender normally receives by requiring a down-payment.

NOTE: The borrow must still qualify for the loan. No one is automatically eligible.

To be eligible to apply for a VA loan:

You must have begun service prior to September 7, 1980, or
If you began service after September 7, 1980, or if you were an officer who began service after October 16, 1981, there is a two year requirement.
You must not have been dishonorably discharged.
Have served on active duty.
You must have served a minimum of 90 days during wartime or 181 continuous days during peacetime.
If you served in the National Guard or as a Reservist, there is a 6 year requirement and certain other criteria/rules concerning the eligibility of surviving spouses.

Are VA loans assumable?

Yes, VA loans are assumable... meaning when you are selling your VA mortgaged home, you can grant permission for the new buyer to take over the payments and responsibilities of your mortgage, complete with that fantastic interest rate you locked in when you first got the loan.

A couple of caveats though:
1. Unless the new buyer is a qualified veteran, you (the seller) will not be able to take your eligibility with you and re-qualify for another loan.
2. If the new Buyer defaults on the loan you let them assume, you are still on the hook for the payments.

Image: chuckmarisha

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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.

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The Peloton a Value Investment? [Notable Sale]

2012-01-16T19:45:00.001-07:00

by Osman Parvez

Right now, I'm reviewing sales from last month for the upcoming Silver Fern Report. We usually put a handful of notable sales in our research report on Boulder real estate, but there were too many in December, so I've decided to publish a few on this blog.

Why Notable
The intention behind Silver Fern's notable sales is to help you understand market conditions. Whether you're buying or selling, we believe knowledge of the market will help you make a smarter decision. As a seller, perhaps it will give you a reason to negotiate with that lowball offer instead of not responding. It could work the other way too, perhaps you'll feel confident declining the offer because you know that a better one will likely come along. As for buyers, many are swayed by emotions. Wouldn't you feel better knowing that you're not overpaying for your dream house, that your offer is in-line with the market?

Sold properties may be "notable" for a variety of reasons; perhaps they're historic, or they've been on the market a long time, or maybe they were underpriced which incited a bidding war. Perhaps we just like the location, or believe future development will enhance the property's long-term value.

Notable Sale -- Unit C318 at The Peloton
This sale is notable because it's one of the last ones handled by the developer's sales office. The developer is getting ready to complete the interior build-out of the remaining two buildings (~200 units). They've announced they are considering turning them into rentals, a move with significant impacts to current and future owners. They've also turned over the job of marketing the remaining for-sale units to a Realtor not affiliated with the developer (a wise move, in my opinion).

Unit C318 sold last month (December) for $389,900. It's a 1,200+ SQFT unit with 2 bedrooms, 2 bathrooms, and 2 underground parking spaces. The now closed listing office put it on the MLS as a new listing (#627647), with an asking price of $389,900. No coincidence, the asking price on the MLS was precisely the selling price, which might give you the impression that the unit received a full price offer.

Wrong.

The original list price was not $389,900, it was $659,900. I know because I've been tracking the Peloton since pre-construction in 2007. I've also advised a number of buyers considering the Peloton on the alternatives available. When they've concluded the Peloton is what they've wanted, I've negotiated on their behalf, getting them some of the best pricing offered at the time.

After five years on market, the sale price of unit C318 represents a 41% discount from the original asking price. Yes, it paid to wait. Here's the chart showing the price history:

Does this represent the bottom at the Peloton?
There are currently 12 units being marketed at the Peloton for sale. Click HERE for details.

The lowest priced unit is a 1 bedroom condo, currently under contract (asking $275,000). Most of the remaining inventory consists of 2 bedroom, 2 bath units with prices that start $390,000 (1300+ SQFT). The most expensive 2 bedroom, 2 bath is priced at $545,000 (1600+ SQFT).

First, the risk regarding how the rental scenario might play out should be carefully considered by potential buyers. With that said, value investors should note the chart above and ask themselves how much further down might it go. With an indefinite holding period, are you now buying at a price below intrinsic value?

If you can get comfortable with the risks (rental scenario, location, rising HOA costs), perhaps you're looking at a value play. Do your due diligence and before you pull the trigger, see the alternatives. As I've told my other clients interested in the Peloton, the only way to feel confident is when you see what else your money might buy. A good buyer's agent can help you with that (here's one!). They're not wedded to Peloton and can offer you straight talk on the pros/cons of your alternatives, helping you make a smarter decision.
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An Ounce of Prevention...

2012-01-14T08:00:00.000-07:00

by Dallice Tylee

Like me, your new year's resolutions may have included taking better care of things. You know... pets, car, relationships, etc.

It was at least a week into 2012 before I realized that my home, which protects me from the elements, provides a quiet sanctuary and privacy, a place from which I work, eat, sleep and entertain, deserves some more love and attention too. Ooops! Bad Realtor!

This comprehensive list of things to check and maintain, serves as a good reminder.

Home Maintenance Tips

A key to protecting the investment you’ve made in your home is by following a regular maintenance schedule. By performing preventative maintenance on an on-going basis, you’ll avoid many of the big ticket repair items that can lower the value of your home.

Monthly

Test your smoke alarms and carbon monoxide detectors.
Check the filters on your heating and cooling systems.
Be sure to clean and change according to the manufacturer’s schedule.
If you have a humidifier or an electronic air filter, check these as well.
Check faucets for drips.
Check plumbing for leaks.

Spring

Inspect fireplace, wood stove and chimneys. Have each cleaned and serviced as needed.
When heating season is complete, shut down and clean furnace humidifier. Close the furnace humidifier damper on units with central air conditioning.
Have A/C system serviced as needed. (Recommended every 2 to 3 years).
Check and clean dehumidifier as necessary.
Where possible, turn off furnace and fireplace pilot lights.
Ensure sump pump is operating properly. Check to be sure discharge pipe is connected and allows water to drain away from the foundation.
If applicable, have well water tested for quality.
Examine foundation walls for cracks, leaks or signs of moisture. Repair as required.
Check paint on outside walls and fence. Repair and paint as necessary.
Check level of any exterior steps or decks which may have moved due to frost or settling. Re-level as necessary.
Check and clean out gutters and downspouts. Repair loose joints and ensure secure attachment to your home.
Clear any obstructions and make sure water flows away from your foundation.
Remove any debris from drainage ditches and culverts.
Prune and fertilize landscaping as necessary.

Summer

Deep clean carpets and rugs.
Vacuum air duct grills and bathroom fan grill.
Inspect your dryer’s lint duct. Disconnect it from the dryer and vacuum out lint from the duct and areas surrounding your dryer.
Inspect windows and doorways and replace damaged caulking and weather stripping.
Check pipes for condensation or dripping.
Inspect driveway and walk ways and make repairs as needed.
Remove or prune any plants, shrubs or trees that penetrate the foundation, siding or brick.
Check exterior siding and trim for signs of damage. Clean, repair and/or replace as needed.
Check for and seal holes that could be an entry point for pests and rodents.
Make a visual inspection of your roof (or hire a professional to do so). Note the general condition. Sagging could be a sign of structural damage and should be checked by a professional. Inspect all roof flashings, checking for signs of cracking or leakage. Replace broken or damaged shingles as needed.
Inspect the chimney cap and caulking.
Sweep out chimneys connected to a fireplace or wood burning appliance. Inspect the chimney for end-of-season problems.

Fall

Test your smoke alarm and carbon monoxide detector.
Change the batteries in both.
Have your HVAC system serviced by a qualified and insured professional.
If you have electric baseboard heaters, vacuum them to remove dust.
Remove the grills on forced air systems and vacuum inside the ducts.
If you use a portable humidifier, it’s time to clean it.
Put up storm windows.
Remove screens from the inside of casement windows to allow air from the heating system to keep condensation off window glass.
Ensure windows and skylights close tightly.
Make sure all doors to the outside shut tightly. Renew weather stripping as required.
Check your chimney for obstructions, such as bird’s nests.
Clean gutters and test downspouts to ensure proper drainage from the roof.
Make sure the ground around your home slopes away from the foundation wall. Remove mulch from the foundation wall as well. This helps prevent water damage.
Drain and store outdoor hoses. Prepare your outdoor faucets for winter freezes.
Protect young trees and bushes for winter and winterize gardens.
Trim shrubs and trees so that they clear the foundation, exterior walls, and roof of the house.
Store outdoor furniture.
If you have well water, test the water quality. Testing for bacteria twice a year is suggested.
If you have a septic tank, measure the sludge and scum to determine if the tank needs to be emptied before spring. As a general rule, septic tanks should be pumped out at least once every three years.

Winter

Check furnace air filters each month during the heating season. Clean or replace as necessary.
Consult your owner’s manual for your hot water heater. Most recommend draining a dishpan full of water from the clean-out valve at the bottom of your hot water tank to control sediment build-up to maintain its efficiency.
Check all fire extinguishers. Recharge or replace as necessary.
Review family’s escape and preparedness plans for fire and natural disaster.
Check locks on doors and windows to ensure they are functioning properly.
Throughout the winter, watch for excessive moisture build-up. Take necessary action whenever excessive build-up exists to prevent future maintenance and health problems.
(For example, excessive condensation on windows.)
Test all faucets and monitor for signs of dripping. Change washers as needed.
(If a faucet leak persists, it may need replacement.)
Check and clean drains in sinks, bathtubs, shower stalls and dishwasher.
Test all plumbing shut-off valves to ensure they are in proper working order.
Monitor windows and doors for cold air leaks or ice accumulation. Note any problems for repair or replacement in the spring.
Before installing indoor or outdoor seasonal lights, check all electrical cords, plugs and outlets for signs of wear. Test cords and plugs, if they feel warm to the touch or show any signs of wear, replace immediately.
Test all outside lights and timers to make sure they are functioning properly.
Check roof for ice dams or icicles. If there is excessive staining or frost on the roof’s underside or excessive ice accumulation on the roof itself, it may require repair.

"An ounce of prevention is worth a pound of cure."

- Benjamin Franklin

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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.

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Smarter Space Solutions

2012-01-13T10:37:00.000-07:00

by Robbin Merta

As we all become increasingly aware and educated on environmental issues, architects, developers, designers and homeowners are devising innovative methods and materials to maximize the potential of living spaces while reducing waste. Enjoy the videos below that present some very unique space solutions - maybe you'll find an idea in there for yourself!

Christian Schallert takes us on a tour of his 258 sqft apartment in Barcelona:

How about living in a container house to reduce your carbon footprint...

...or be your own builder with an allen wrench and a kit?

If you'd like to explore non-traditional housing options, let me know, I'd love to help you find something that is as unique as you are. Or, even if you just want a ranch, I still sell those, too.

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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Robbin at (303) 917-7143.

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Finance That Face-Lift!

2012-01-12T08:00:00.000-07:00

by Dallice Tylee

Have you ever walked into a property and seen a brochure or sign that tells you "This home qualifies for HomePath financing"?

Chances are you are already pre-qualified and paid it little attention... But, if you are like me, you may have been just a wee bit curious what HomePath financing was. I decided to investigate for you and report back!

The first thing to know is that HomePath financing is only available on Fannie Mae-owned properties.
Perhaps just as importantly, there are two types of financing using HomePath.

The regular type... where you borrow to buy a house using a HomePath mortgage.

The benefits of using this mortgage to finance your new home include:

Financing is possible for primary homes, second homes or investment properties.
Down payment as low as 3% for primary residences and 10% on investment properties.
The down payment may come from savings, a gift, a grant/loan from a non-profit organization, state or local government or an employer.
Fixed or adjustable rate mortgage terms.
No mortgage insurance.
You may qualify even if your credit is less than ideal.
There is no appraisal requirement by the lender.

The other type, is where you borrow to buy and renovate that house. This is called a HomePath Renovation Mortgage.

Like a regular HomePath mortgage, the benefits include:

Financing is possible for primary homes, second homes or investment properties.
Down payment as low as 3% may come from savings, a gift, a grant/loan from a non-profit organization, state or local government or an employer.
Fixed or adjustable rate mortgage terms.
No mortgage insurance.
You may qualify even if your credit is less than ideal.

However:

The renovation amount is based on an "as completed" appraisal value.
You may borrow up to 35% of the completed value, but no more than $35,000.
Many condo project requirements are waived; ask your lender for details.
For more information about the renovation process, contact a HomePath Renovation Mortgage lender or click here for the Home Buyer's Guide.

HomePath financing is available from local banks, credit unions and other financial institutions. You may use your choice of lenders.

To find lenders and homes that qualify you to use HomePath financing, visit HomePath.com.

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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.

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Scarce Pickings in Boulder, Inventory Plummets

2012-01-11T11:48:00.002-07:00

by Osman Parvez

Inventory is normally low in December, but this is getting ridiculous.

You're looking at house inventory in Boulder at 8+ year lows.     I say "8+" because I'm not going back further than 2004 to look at the data.    It could be 10 year lows, or 12 year lows.

The chart above shows inventory by month for the last few years.   Typically inventory peaks in June or July in Boulder.   This past year, it peaked in May.

What does it mean?
If you're buying in Boulder, you better start tracking inventory closely so you are prepared to pull the trigger.   Not all price range and locations are the same.   The upper end is quite a bit softer (but improving) and the entry level is tight.   Every market segment has dogs left over from last year that you should ignore.

Solution?    Know The Market.
Step 1: Sign up for the Silver Fern Report. No spam, just market analysis and detailed research for Boulder and surrounding areas. It's how we keep our clients informed. Get a sample HERE. Sign up HERE.   The chart above is from the upcoming report.

Step 2: Attend the Boulder Real Estate Meetup. The next one is January 26th.   Meet me in person. Participate in great conversation on local real estate related topics. Drink good beer.

Step 3: Get yourself a good agent and go out for weekly showings of new inventory.   Eventually, when you sign on the dotted line, you'll feel more confident because you'll know the inventory (and last year's sales history) for your specific price range and location. If you're shopping, give me a call (303.746.6896). I'll give you straight talk about market conditions and how to get the best possible deal. Check out my reviews.
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Higher End Recovery in Boulder [Analyze This]

2012-01-10T07:00:00.000-07:00

by Osman Parvez

What does a recovering market look like?

At Silver Fern, we're currently putting together the year-end review for our clients. As part of that analysis effort, I'm taking a look at trends worth noting. Take a look at the following chart.

There were fewer new listings (blue bars) and more sales per year (red bars), since 2009. Listings have dropped by 38%, sales have increased by 13%. The ratio has tightened from 28% to 52%. Economics 101; less supply and more demand equals higher prices.

Of course, there's more to it than that. Prices have been falling for the last few years for the high-end in Boulder. This year alone, we've helped several clients take advantage of that to acquire luxury property for 30%+ discounts from the peak.

Lending remains tight and creative sellers have been offering owner financing. This can be a win-win because (a) sellers know their asset and it's already taken a hit and (b) negotiated rates are pretty good, far better the public markets. Assuming high credit quality for the buyer, (c) this can also be a more reliable return.

Based on the law of supply and demand, you're looking at a trend which suggests an increasingly stable market and eventually higher prices for luxury property in Boulder. If you're feeling confident about the economy and your financial well-being, you might still catch the end of the real estate cycle in Boulder. It's time to get off the sidelines but shop carefully and choose a good agent. Be ready to walk away from deals which aren't sweet enough.

If you're selling, consider that you had about a 50/50 shot of getting it done last year. Those are not good odds. Here's the open secret to getting it sold; know your competition, price it right (lead the market), stage it well (don't skimp), fix everything that needs fixing, have it professionally photographed, and hire a great agent to handle all of the above. Do that and your odds will improve, markedly.

A couple of notes about the data.
The data is for detached dwellings (i.e. houses) within the city limits priced above $1,000,000. New Listings are freshly listed property on the MLS. Some agents still refresh their listings in an attempt to have them appear as "new" to unweary buyers. Thus, these are not entirely fresh listings, but it's still a good approximation. Sold property are listings closed during the calendar year. Sold to New Listings is a simple ratio.

What's not included? High-end condos like the Arete. Private party and other non-Realtor assisted transactions. Property outside the city limits but still within Boulder County.

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Is Your Ex Still The Beneficiary Of Your Life Insurance?

2012-01-09T08:00:00.002-07:00

by Dallice Tylee

It's a new year!

With it comes both the realization that "a lot has happened over the last year" and perhaps a plan to implement more changes over the coming year.

Life changing events necessitate the review, update or preparation of important documents such as your estate planning documents, will, healthcare directive/living will, durable power of attorney, IRA, 401(k) and life insurance policies.

Events that may cause you to re-examine or make changes to personal documents include:

The individuals you have named are deceased.
There are new people to be named in your will (e.g., birth, adoption).
Divorce or marriage.
There has been a change in guardians, personal representatives, or trustees.
Children reach the age of eighteen.
A substantial increase or decrease in the value of your estate.
The acquisition or disposition of a significant asset.
New state laws. You need to periodically check to see whether your state has enacted new laws that impact your estate planning documents. More importantly, if you move to a different state, don't assume that your will made in your previous state conforms to the requirements of your new state. Each state has its own legal requirements for making a will.
You should see an attorney about reviewing and updating your estate plans prior to reaching 701/2 years of age if you have an IRA, 401(k), or other qualified plan that requires you to begin to take distributions at age 701/2. The beneficiary that you designated will have an irrevocable impact on both your and your beneficiary's required distributions.

If you do not have an estate planning lawyer and would like to start the search, try this site.

Estate Planning Attorneys By State

Finally...

It is wise to review your will, estate planning and insurance documents every three to five years, regardless of life changes.
Be sure tell someone the location of your important documents, lists of bank accounts etc.
Don't forget to mention how to access security enabled websites and storage places.

Remember, if you have bought or sold property with Silver Fern Homes recently or not so recently and need help locating documents relating to the transaction, just ask! We would love to help and are always happy to hear from you.

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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.

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The New Columbine Elementary School

2012-01-07T08:00:00.001-07:00

by Dallice Tylee

How very cool! A newer school in Boulder.

Columbine Elementary was in need of ...well... A new school building. The old one, with it's leaky roof and lack of group work space, was not the learning environment that the kids really needed... and deserved.

In August 2010, construction of the new 2 story, 65,000 square foot state-of-the-art building began. Rodwin Architecture teamed up with BWG Architects for the $12m project. The project was completed in September 2011 and features plenty of natural light, is more environmentally friendly and is wireless.

For fascinating time-lapse photography, click here. Click on the time-lapse button above the image to begin.

Or visit Rodwin Architecture's post to see some beautiful interior and exterior photography, highlighting the space, light and features that make the new Columbine Elementary so special.

On a side note:

Columbine's Vision

Columbine's vision is to provide a bilingual learning community that nurtures academic excellence for all students and encourages each of them to achieve their full potential as emerging responsible citizens with the strength of character to take on the challenges of the 21st century.

And take a look... Academic excellence is definitely in the cards!

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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.

---see Rodwin Arch newsletter

Shake it off

2012-01-04T08:00:00.000-07:00

by Dallice Tylee

We live in a dry climate. Couple that with lightning, carelessness or bad luck... then add wind.
It's a recipe for wildfire and with wildfire comes the inherent risk of loss of homes and other structures.

Rebuilding after the devastating Fourmile Canyon fire of 2010

Firebrands are the burning embers produced by a fire and carried into the air, beyond the front of the fire. They account for the majority of homes lost due to wildfires. Firebrand materials typically include pine cones, bark and you guessed it... the wood shakes and shingles of an already burning house.

These burning embers may be transported by wind, up to a half mile away. In a residential area, the most vulnerable part of a house is its roof and the roof is also the place where firebrands may be caught and trapped. If the roof is composed of untreated wood shakes or shingles, this house is now in jeopardy of burning too.

Predictably, the ability of a house to survive a wildfire is influenced greatly by the type of roofing materials it has.

The City of Boulder considers the risk of loss of the structure with wood shingle roofs to be so great, that they have banned wood roof coverings.

Properties located in the City of Boulder with wood roof coverings containing 50+% wood by volume must be replaced before January 1, 2014.

Chapter 10-5: Building Code

10-5-5 Wood Roof Covering Materials Prohibited.

(a) No person shall install or cause to be installed any wood roof covering materials, including, without limitation, wood shakes or wood shingles. This prohibition includes wood roof covering materials with fire retardant treatments of any kind.

(b) It shall be a specific defense to a charge of violation of subsection (a) of this section that the wood roof covering materials were installed before January 1, 2014, to repair portions of an existing wood roof, that the repair wood roof covering materials were factory pressure treated so as to be fire retardant and are approved as meeting Class B standards in accordance with section 1501.1 of the building code, and that the wood roof covering materials were installed in a quantity not exceeding fifty percent of the roof surface in any three-hundred-sixty-five-day period.

(c) No person owning a building with wood roof covering materials shall fail to remove or cause to be removed from the building all wood roof covering materials before January 1, 2014, and to replace the removed roofing with approved roof covering materials which conform to the International Building Code as adopted, and no person shall thereafter take possession or ownership of a building with wood roof covering materials.

(d) The following additional definition applies to this section and to chapter 15 of the building code:

"Wood roof covering material" means an exterior surface material used as a top covering and made of wood. "Wood," for the purposes of this definition, means any natural or composite material containing at least fifty percent wood by volume.

Ordinance Nos. 5645 (1994); 5693 (1995); 5781 (1996); 7566 (2007)

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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.

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City of Boulder code/ordinance re: shake and wood shingle roofing

Only In Aspen

2011-12-29T08:00:00.000-07:00

by Dallice Tylee

Wandering the streets of Aspen, enjoying the sunshine and avoiding the ice, I came upon an eye-catching real estate listing.

It struck me simply because of the novelty of seeing a low-end FSBO with such a high price on it.
Dare I say it... Where else, but Aspen, would you find a mediocre looking townhouse, in a very ordinary part of town, going for $1.2m?

You are probably thinking along the same lines as me... "How do we know if it is priced well for the market?". We don't, without a bit more research. It's an asking price only, but take a look at the other asking prices around this part of Aspen, courtesy of Zillow.

It's looking more and more like it could be a bargain, right? Probably not... But this map puts it in perspective, if nothing else.

It's hard to imagine a situation where this makes sense - financial or otherwise - and yet for someone, under the right circumstances, this townhouse will fulfill a need.

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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.

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The Two-Month Tradeoff

2011-12-28T07:00:00.001-07:00

by Robbin Merta

So the two-month extension of the payroll tax cut was agreed to by House Republicans last week. The $33 million package, that also includes an extension of unemployment benefits and a postponement of cuts for Medicare reimbursements, will be funded by an increase in fees by Fannie Mae and Freddie Mac for lenders on mortgage loans.

What does this mean for the average homeowner or buyer? The fees translate into in increase of about $15 a month on a $200,000 mortgage loan or refinance, or about $180 a year. While this may not be significant enough to drive people in droves to seek out other financing, it could be another piece of encouragement towards the private sector market.

In 2008, Congress raised conforming loan limits for the Federal Housing Administration, Fannie Mae and Freddie Mac. By the end of 2009, 90-95% of mortgages were FHA/GSE supported. Those who needed financing about the loan limits ("jumbo" loans) sought out private financing, which usually results in higher interest rates and larger down payments.

Counties affected by October 1 loan limit decrease,
U.S. Department of Housing and Urban Development.

On October 1, the loan limits were lowered, affecting an estimated 1-2% of the mortgage market. While this may not sound like much, a successful absorption by the private sector remains to be seen. With a decrease in the private label securities market over the past couple of years, some argue that the private sector is not ready to handle this new demand.

Borrowers in different cities across the country are being affected differently by the loan limit decrease. Some of the biggest numbers come from California, showing 5-7% of FHA/GSE loans impacted. Some reports are showing that for the private sector market to pick up even some of the slack, it will take a 56% increase in loan originations. The question is, can they gear up that quickly? And will investors even want to?

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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Robbin at (303) 917-7143.

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Tequila Christmas Cake

2011-12-23T08:30:00.000-07:00

by Dallice Tylee

Ok... I admit this has little to do with real estate, but bear with me...

It's the week before Xmas and like me, you are probably madly baking, purchasing last minute gifts, braving the crowds, tolerating the repetitive music and wishing that you had just a little time for yourself.

In the "spirit" of the holidays, I am going to share with you a secret family recipe.
Well, maybe family tradition is more accurate? Either way, it will get you to your "happy place"!

Infamous Tequila Christmas Cake

1 cup sugar
1 tsp. baking powder
1 cup water
1 tsp. salt
1 cup brown sugar
Lemon juice
4 large eggs
Nuts
1 bottle tequila
2 cups dried fruit

Sample the tequila to check quality.
Take a large bowl; check the tequila again to be sure it is of the highest quality. Repeat.
Turn on the electric mixer. Beat one cup of butter in a large fluffy bowl.
Add 1 teaspoon of sugar. Beat again.
At this point, it is best to make sure the tequila is still OK. Try another cup just in case.
Turn off the mixerer thingy. Break 2 eegs and add to the bowl and chuck iin the cup of dried fruit. Pick the fruit up off the floor. Mix on the turner. If the fried druit getas stuck in the beaterers, just pry it loose with a drewscriver.
Sample the tequila to test for tonsisticity.
Next, sift 2 cups of salt, or something.
Check the tequila.
Now shift the lemon ice and strain your nuts. Add one table. Add a spoon of sugar, or somefink. Whatever you can find.
Greash the oven. Turn the cake tin 360 s and try not to fall over.
Don't forget to beat off the turner.
Finally, throw the bowl through the window. Finish the tequila and wipe the counter with the cat.

A couple of caveats to go with this recipe:
Firstly, you are reminded that Tequila Cake and driving is a bad idea!
Secondly, the Realtor in me reminds you that we only have 3 requirements for signing legal documents... You must be at least 18 years of age, sober and sane.

Photo courtesy: dmushrush

Merry Christmas everyone!
Wishing you a safe, happy and warm holiday season.

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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.

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'Twas the Night Before Closing

2011-12-21T07:00:00.005-07:00

by Robbin Merta

‘Twas the Night Before Closing and all through the Fern

Every creature was stirring, each agent in turn.

The contracts reviewed, dotted Is and crossed Ts,

In hopes of a closing proceeding with ease.

My buyer was nestled, all snug in his bed,

While visions of hardwood floors danced in his head.

To sleep did my husband Dennis succumb

While I settled down to a hot buttered rum.

When out in the office arose such a clatter

I sprang from the couch to see what was the matter.

Away to the laptop I rushed with a groan,

Tore open my email and checked my iphone.

The voicemail light of the phone in the room

Cast an ominous hue of most threatening doom.

When, what to my wondering mind should divine?

An Amend and Extend for my buyer to sign.

With a stack of demands unacceptably thick,

I thought for a moment I just might be sick.

More countless than snowflakes the seller avowed,

And I whistled, and grunted, and read them out loud.

As a soldier assuming her resolute mask

When she meets with a seemingly insolvable task

Was my expression on hearing it all;

To the listing agent I then placed a call.
And then, in a twinkling, I heard in his voice
The realization that he had no choice.
As I picked up the pages and tore them in half
I had to suppress a most satisfied laugh.
With a gratified grin I then put up my heels –
I really enjoyed working out deals.
In the morn’ I was gone with nary a sound,
Assisting my client with his new piece of ground.
And laying the keys in his satisfied hand,
I nodded and smiled; it all went as I planned.
I jumped in my car, gave my buyer a wave
And set off to find the next deal to save.
And then I exclaimed, ere I drove down the lane,
“Please call if you need me to sell it again!”

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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Robbin at (303) 917-7143.

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How Are Your Local Schools Performing?

2011-12-17T08:30:00.001-07:00

by Dallice Tylee

I'm one of those people to whom commercials are aimed at!

To be honest, I don't even remember where I heard about this site. I just remember that my ears perked up and I thought, "This might be really useful for my clients, friends and readers!"

http://coloradoschoolgrades.com/

This easy to use website allows you to search for schools and gather basic, up-to-date information about them. It makes it easy to compare options, using grades for academic growth and proficiency and ranks each school among all the other schools.

Creekside Elementary

In short, it is a very interesting and easy to use site. It paints a picture of a neighborhood, the school, its pupils and the quality of education.

When Buyers are looking at neighborhoods, regardless of whether they have, or even intend to have kids, I encourage them to check out the nearby schools. Part of the due diligence of buying is also thinking ahead to selling.

Another part of the due diligence of selling is understanding your audience and knowing your product. Playing up your home (neighborhood) strengths and playing down its weaknesses.

Whether you are a buyer, seller, parent, teacher or (future) home owner, this site can help you get some of the insight you need to make the decisions that are critical to you.

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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.

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