Thursday, September 29, 2016

Boulder Real Estate Enters Autumn Strong (But It's Still Bargain Season).

by Osman Parvez
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Are you ready for another update on real estate conditions in Boulder? Let's take a look at inventory. 



The chart above shows total inventory for stand alone houses (blue) and attached dwellings (red) within the City of Boulder. The typical seasonal pattern is present, with inventory having reached its peak towards the end of summer. Total inventory trended slightly higher for houses this year and somewhat lower for condos and townhomes. 




This chart shows the breakdown between available houses (dark blue) and those under contract (light blue). Although a fair portion of under contract deals terminate and return to the market, the vast majority get to the closing table. The relationship between under contract and available switches towards the end of the fourth quarter while inventory is still high enough to provide ample selection. This is why this is the best time of year for buyers to negotiate, even when it's a sellers market. 





This chart shows the breakdown between available attached dwellings (dark red) and those under contract (light red). Note that for the past two years, there are far more under contract properties than available ones. This is one of the reasons I've been encouraging my condo sellers to be more aggressive when it comes to negotiation. My condo buyers get the data that helps them understand when to submit stronger offers.   

It's worth noting that the trend lines converged this month, something that didn't happen last year.  Perhaps it's a signal of the market somewhat softening. Even so, the message remains the same. The optimal strategy is opportunistic. If you're a buyer, keep looking and consider moving up your target price range. There are a number of overpriced listings on the market, some with large equity positions. These sellers might be worth tempting with a low offer + a fast closing.

For new sellers, caution is warranted. My recommendation is to market the property professionally but price aggressively, and don't push the comps too far or you'll be on market for 6 months or longer. At this time of year, it's far better to price right (i.e. to market) to create buzz and drive a bidding war to a fast sale with few contingencies. Listings that have been on the market for a significant period of time do not have the critical momentum and air of exclusivity to drive the price higher. In other words, you only have one shot to market your home for its maximum value. Choose your Realtor carefully. 


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Want to get blog updates via email?  Click HERE.       
Ready to buy or sell?  Schedule an appointment or call 303.746.6896. 
You can also like our Facebook page or follow us on Twitter.

As always, your referrals are deeply appreciated.  

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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate. 

Wednesday, September 14, 2016

Boulder Real Estate Bargain Shopping? The Time is Now [Inventory Analysis]

by Osman Parvez
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I just completed my inventory update for the week. The Boulder real estate market is doing interesting things, but there were no big surprises. Let's look at the data. 

Note: The analysis below is for detached houses in the City of Boulder. If you're looking for an analysis of market conditions for condos or townhomes, call me. If you want to see market conditions for specific properties or neighborhoods in Longmont, Lafayette, Niwot, Superior, or other areas in Boulder - again, call me. Contact information is at the bottom of the post. 




The orange line in the chart above represents houses that are under contract (both pending and active/backup status). The blue line shows houses that are available. The series goes back to June 1st, 2015 and continues to today, September 14th, 2016.

As a rule, real estate markets are both seasonal and cyclical. Boulder is no exception to the rule. Current inventory stands at 194 properties, down about 11% from last year at this time. From March through about mid June, the market is most favorable to sellers with far more buyers than available homes. Beginning in July, the market flips back. 





In this next chart (above), I've added red arrows so you can see it more clearly.

When I represent sellers, my goal is to maximize price and speed of sale while minimizing potential seller liability and risk of the deal falling apart. The pattern in the chart above repeats year after year (i.e. it's seasonal), which is why I always strongly recommend sellers list in March and do everything possible to have closed by the end of June. It's not that you can't sell at any time of year. You can. All things being the same, you'll get a higher price and bear fewer risks if you optimize your timing. Just be sure to choose a Realtor who knows what they're doing and loves the art of negotiation.

When I represent buyers, my goals are to provide honest advice on property selection and once we've found the right house, negotiate the best deal possible. I also provide guidance for complete and thorough due diligence. 

The mid 3rd and early 4th quarter have always provided the best opportunities for buyers because there are always sellers who misjudged the market (usually based on the advice of a bad Realtor) and are now desperate. This is one of the reasons I've highlighted big price reductions in my weekly posts on fresh listings but if you're serious about getting a deal, don't wait for the price reduction. As I told a client last night, it's far better to go after the listing before the seller agrees to a large drop and publishes the new price. You're not the only bargain shopper in the market. 




This last chart simplifies the inventory analysis even further. The black line represents the percentage of inventory under contract. Typically, the bottom occurs at the beginning of the 4th quarter, precisely the time that many sellers who blew the summer season are hating their life and willing to capitulate. 

Guess what time of year it is? If you're buying, let's find you a deal. The time is now.  

If you're considering selling, let's get a strategy in place to maximize the sale price. If you can hold out, you should wait for the spring but keep in mind that we're nearing the end of a cycle and it's an election year to boot. There is risk in waiting that may offset the benefit of timing it for the season. Call me for a consultation on how I can professionally market your home for the highest potential sale price.

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-> Ready to buy or sell?  Schedule an appointment or call 303.746.6896. 


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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate. 

Friday, September 09, 2016

Big Discounts, South Boulder Views, Spacious Luxury [Fresh Listings, Get 'Em Hot]


It's early September and there's a whiff of autumn in the air. Colorado is talking about the Broncos, the Aspens have started to change on the Western Slope, and reality is knocking on the door for sellers who blew the summer selling season. 

As usual, I've sifted through the market so you don't waste time with egregiously overpriced listings, bad locations, or old inventory refreshed to appear new on the MLS. There were no notable sales this week, but I've included two listings with significant price reductions that are worth your attention. 

Ready for the latest in Boulder real estate? Let's go see some houses.


To schedule a private showing, which includes a discussion of valuation and price trends, call Osman at 303.746.6896.



Interesting Price Reductions

755 Jonquil Place | $3,250,000 | More Details 
I wrote about this house when it first hit the market at the end of July. At the original asking price, the sellers clearly tested the market. Two weeks later, they cut the price by $100K. Now they’ve cut another $200K. There’s a reason I call this time of year bargain season. Sellers who overshot the market during the summer are now hoping they can lure in a buyer with a price discount. They’re also far more willing to negotiate. If you think this is the one, don’t wait on the sidelines. You have to actively engage with an offer. Pro tip: Be sure your agent loves negotiation.



499 Eisenhower Drive | $899,900 | More Details
Another example of a seller who overshot and is now chasing the market. Originally listed at $1.2MM in May, and they’ve cut the price twice. The latest ~$200K puts the house into value investor territory. I personally love this location. The views are stellar and only a small cluster of homes on the street have them. The house itself has a decent layout, is goldilocks-sized, and was built in the mid-80's. Finishes might stand for a refresh, but they also won’t embarrass you at dinner parties. Note: This one is not a good low-ball target at the current asking. It’s priced right. Don’t expect it to last long.   


Fresh Listings
To schedule a private showing, which includes a discussion of valuation and price trends, call Osman at 303.746.6896.

BOULDER

2890 Juilliard St| $1,700,000 | More Details 
This boasts the best Boulder schools, a rapidly improving retail mix, and an easier commute into Denver or the airport than North or Central Boulder. The late 80’s/early 90’s look is clearly dated, but the architecture of this one might stand up well to a less expensive cosmetic refresh. Pocket views look like they have some value. Decent size, solid layout. As a car guy, I’ll be jealous of the 3 car garage and built-in lift. Due diligence: Be sure to bring an architect along to your showing. Maybe even a GC. What’s that - your agent doesn’t do that? Find a better Realtor.


2221 Spotswood Pl | $1,500,000 | More Details 
The cover shot of this one might make it look like it’s someplace tropical (those colors), but it’s well situated in a part of Boulder that sometimes feels rural but is actually only minutes from downtown. The asking price is what makes this one compelling. Built in the early 90’s, 3977 finished SQFT above grade (nearly 6,000 with the finished basement), and some tasteful updates. This summer, I met with sellers who thought their dirt lot was worth $1.2MM in this location. You couldn’t come close to building this home today for what they’re asking for it. 



3205 Martinique Ave | $969,000 | More Details
Historically, the Four Mile Creek neighborhood has been a value play. Compared to North or South Boulder, buyers get more bang for the buck when it comes home quality. The downside is that there’s no easily walkable retail. It’s 30-35 minutes to walk to retail centers on Iris or Uptown Broadway. The recent inventory shortage has pushed prices up rapidly, and this home is similar to several others that were available earlier this year. If this one doesn’t work for your needs, you can patiently wait for another. I recently analyzed the neighborhood for a client, so I can confirm this one is priced right, but they’re testing the late 3rd Quarter, early 4th Quarter market (i.e. off season).  



1900 Dartmouth Avenue  | $949,900 | More Details 
The story is that an investor acquired this property last year for their personal residence but the family didn’t want to move. Uh huh. More likely they found out the real cost and timeline to build due to a labor shortage on the Front Range or they found a turn-key option that was better. Survey, soils report, variance report, solar shadow analysis, environmental report, sewer scope, and preliminary plans are available. The location is pretty solid although I haven’t evaluated the perch personally as yet. Good news is this trailhead doesn’t get a ton of use by people from outside the neighborhood (i.e. this isn’t Chautauqua or Sanitas, which is swarmed by visitors from out of town). 


290 Spruce Street A | $624,000 | More Details 
It’s hard to argue with 2nd and Spruce as a location, although Buyers should also know about the high density of subsidized housing nearby. With continued investments in downtown, it’s a desirable spot nevertheless. 624K asking makes sense for a lock and leave option or executive residence, despite the dated finishes. Due diligence: HOA dues are only $220/month. Sounds good on the surface but check for unfunded deferred maintenance and a looming capital assessment.




3049 Redstone LnC-2 $415,000 | More Details
Here’s another Shanahan Ridge townhome. This one has some tasteful updates and supposedly fronts on HOA open space, which makes it more desirable if true. Units that have ground level patios work better for people with pets. Negotiation tip: Compare premiums paid for other condos in Shanahan Ridge which sold last month before finalizing your offer. 






3250 Oneal Cir J-37 | $275,000 | More Details 
A decent and relatively affordable condo for young professionals or CU students. Top floor is more desirable and will help mitigate the high sound transfer known to be a problem in these units. Clean and presentable, with fun amenities. Reserved space parking only, don’t bring your nice car. This area has high student density







LONGMONT 

832 Neon Forest Cir $675,000 | More Details
There are several neighborhoods that stand out in Longmont for investors as well as primary home buyers. Prospect is one of them. Years ago, I was skeptical when it was first built, but there is no doubt it has come into its own. This particular house has a more traditional design and is located more centrally within the neighborhood. Worth a look, especially at this price point.  






1507 Florence Court | $515,000 | More Details 
Renaissance homes are a value investment for the rapidly appreciating Longmont market. The neighborhood is near open space and a reasonable commute into Boulder. Elementary and middle schools perform well, but Silver Creek high school doesn’t rank quite as high as schools in the City of Boulder. When (and if) Whole Foods opens in December as planned, the momentum will be baked in for this neighborhood and it will continue to attract families seeking an affordable alternative to Boulder. You can’t buy an entry level ranch in Boulder for this price. Due diligence: There is a significant amount of build-out left to occur in this location and construction is underway. Much of what is planned is expected to sell at higher price points. Full disclosure: I own an investment property in this location.


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As always, your referrals are deeply appreciated.
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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate.

cover image: Francesco Gallarotti

Thursday, September 08, 2016

A Note of Thanks



We love receiving hand written thank you notes.  Congratulations Brian and Jackie on your awesome Boulder house!  We wish you many years of joy and fulfillment.  

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Want to get blog updates via email?  Click HERE.       
Ready to buy or sell?  Schedule an appointment or call 303.746.6896. 
You can also like our Facebook page or follow us on Twitter.

As always, your referrals are deeply appreciated.  

--
The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate. 

Friday, September 02, 2016

Dream Homes, Chautauqua Bargains, and More [Fresh Listings, Get 'Em Hot]


Miss us last week?   

We took a trip to California to ride the Pacific Coast Highway and watch Eddie Vedder perform at the Ohana Music Festival. If you ever have the chance, I highly recommend the campgrounds along the coast. Many have direct access to the ocean and the views are magical.

Now it's back to the grindstone. As expected, sellers who blew the summer selling season are now scrambling to find buyers. This week a few partially finished spec homes were listed along with five $100K+ price reductions in Boulder alone.  

Amid the sea of stale old listings and listings pretending to be new, a number of interesting new properties came to market. Here’s what’s worth seeing in Boulder real estate this weekend. As usual, let's start with a discussion of a few notable recent sales.

To schedule a private showing, which includes a discussion of valuation and price trends, call Osman at 303.746.6896.


Sold Listings of Note


400 Utica Avenue | $4,795,000 | More Details
The buyer went 6.7% over asking for this stunning 2.1 acre lot with epic views. Click the link above for photos. Properties of this caliber come to market very rarely and the buyer of this one looked for over 2 years.








950 15th Street | $825,000 | More Details 
Every craftsman style historic house in Boulder gets a bidding war, right? Guess again. Despite only two weeks on market, this seller took a low ball and settled for $100K less than their asking price. It turns out that wishful thinking is not an effective marketing strategy. Who knew?  

It didn't help that at some point in the property’s history, the owner decided to maximize their cash flow by converting everything into a bedroom, likely without permits. 7 bedrooms in this Frankenhouse but zoned for 4 unrelated. That can be fixed. What can’t be fixed is the high red cup density in this location. It’s party central for CU students which translates into occasional late night noise and property vandalism. If the new owner tries to occupy it, expect it to be back on market in a few years. 

Due diligence tip: Always check recycle containers in the alley when considering a house on the Hill. 



3045 Redstone Ln 2D | $435,000 | More Details 
The listing agent nailed the staging on this property, netting significantly more than a similar property listed at the same time. Now that's effective marketing. I took my buyers to see it. We weren’t fooled by the choppy floor plan and lack of storage. Still, this sets a new high water market for well marketed town homes in Shanahan Ridge.  






Fresh Listings


BOULDER

1080 Juniper Avenue | $5,995,000 | More Details 
Double size lot, double size house, and double the price. No doubt, this is a stunning house but the location is an A minus. At this price point, I advise my buyers to only acquire when the home features spectacular views. It’s the only protection to reduce downside risk when the cycle turns. Protected views and direct access to open space are the equivalent of waterfront property in Boulder. See 400 Utica for an example (above). Buyers should also know that trophy homes this large are starting to fall out of favor. Worth a look if you’re shopping at this price point for comparison to new build or renovation of an existing property.   



470 Juniper Avenue | $2,125,000 | More Details 
Despite being 20+ years old, this house has classic architecture and beautiful finishes that have stood the test of time. The location is excellent, with close but not front-row proximity to open space and an easy stroll to downtown. The layout is intelligent, the house size is reasonable and the large lot should allow for future expansion if you need it. Large lots are one way to hedge against future restrictive zoning by an overreaching city council. Two car garage. I’ve already sent it to one of my buyers but as of right now, it’s available. 





340 17th Street | $1,495,000 | More Details 
At the asking price, they’re giving this house away. The location is excellent, with immediate access to Chautauqua open space and cultural events. Interior is dated but not embarrassing. Save some budget for the remodel but don’t wait. Jump on it.  








LOUISVILLE

921 Main Street | $650,000 | More Details 

A historic 3 bedroom house converted to commercial use. Main street in Louisville is a very desirable location for a variety of businesses. It would almost work for a primary home buyer to reconvert it but oy! Those taxes. Good option for a buyer who needs a downtown office with good foot traffic. 





337 Roosevelt Ave | $595,000 | More Details 
The location has excellent access to downtown and it’s a generous lot. The seller thinks you can build a duplex or an ADU based on their read of the zoning. Smart buyers always confirm during the inspection period. The structure is pre-war and although Louisville is far less protective of historic property than Boulder, it might still be factor. 






LONGMONT

1404 Cannon Mtn Dr | $649,900 | More Details 
A solid value for a large family friendly home. 15 minutes to the Google campus, 25 to downtown Boulder (off-peak). Only a few miles from the future Longmont Whole Foods. Decent elementary and middle schools. I’m a fan of this location, it’s a value play. Full disclosure: I own an investment house in an adjacent neighborhood. I'm bullish on southwest Longmont, but keep in mind the ongoing build-out will continue to expand supply for at least a few more years. 






801 Confidence Dr 17 | $295,000 | More Details
Modern 1,100 SQFT two bedroom condo in the hip Prospect neighborhood. It’s bigger than a typical entry level house in Boulder. Click above for the photos. It’s worth a look and likely won’t last. I’d buy it and live there myself but the Chairman of the Board demands a yard.   






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Ready to buy or sell?  Click HERE to schedule an appointment or call 303.746.6896.

Like our Facebook page


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As always, your referrals are deeply appreciated.
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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate.

Cover image: Joshua Earle

Friday, August 19, 2016

The Autumn Real Estate Market Begins [Fresh Listings, Get 'Em Hot]


Just like that, the summer selling season has come to a close. The kids are back at CU.  There's a whiff of autumn in the air... and once hopeful, doe-eyed sellers, convinced to overprice their property by overzealous agents, are now starting to offer steep discounts. There were four +$100K price reductions in Boulder this week alone (link).  

Negotiation is one of my favorite parts of this business. I've always been able to help buyers obtain the largest negotiated discounts during the late 3rd and early 4th quarters of the year. I expect this year will be no different. The key to getting a great deal? Intelligent property selection and savvy negotiation. If you're thinking of selling, it's critical to be cautious in your marketing approach. I recommend setting a conservative asking price based on intel from the latest sales and the slate of active competitors. 

Before we discuss fresh listings this week, take a look at the following analysis of stale listings in the Boulder real estate market.
The chart below shows the percentage of active inventory over a period of 90 days on market.  



County wide, 25% of houses have been on the market for 90 days or longer. Think of it as an opportunity for savvy house buyers and a caution flag for would-be sellers who want to aggressively push the comps. 

Condos and town homes (attached dwellings) tell a different story. Only 12% have been listed for 90 days or longer.  

The Cities of Boulder and Longmont (Boulder County's largest) show another interesting contrast: 21% and 13%, respectively. This is driven largely by much higher prices in Boulder, causing a flight of buyers to Longmont. Meanwhile, you can pretty much forget about getting a discount on a condo in Boulder - since only 4% of listings are over 90 days old.  

Remember: Intelligent real estate decisions are based on deep market understanding.  Buyers and sellers need to carefully evaluate active, sold, withdrawn, and pending inventory relative to their specific real estate situation.

Enough about stale listings. Let's get to the fresh stuff. As usual, I'll start by highlighting a few notable sales. 

To schedule a private showing, which includes a discussion of valuation and price trends, call Osman at 303.746.6896.

Sold Listings of Note


2675 Dakota Place | Sold Price: $2.6MM | More Details 
This sale is interesting because it sets the benchmark for Newlands, where proximity to open space is the equivalent of waterfront property. As you move back from open space on the West side, prices fall steadily until you hit Broadway (a key value North-South delineation). This house was listed back in April at $2.6MM and the seller held steady, offering no price concessions. 59 days after listing, it went under contract and finally closed 54 days later for a total time on market of 113 days. The deal closed for cash. The house itself was larger than typical (nearly 6,000 SQFT), with an excellent floor plan. The majority of it was finished and above grade. Relatively recent construction and excellent finishes throughout. Buyers and potential sellers should use this one as a standard for pricing and negotiation going forward.  




2840 N Lakeridge Trail | Sold Price: $2.5MM | More Details 
Lake of the Pines is an exclusive enclave of high end homes located right off US36, North of the city limits. Sales are rare and they often take a long time to trade hands. This one was on the market since July 2015, with a short withdrawal period over winter, before finally finding a buyer a year later in July of this year. The house itself is spectacular, with exceptional finishes and a rugged Rocky Mountain feel. The private dock and views over the lake beautifully complete the estate. Original asking: $2.95MM. Negotiated discount from last asking price: 8.6%.






623 Garfield Avenue | Sold Price: $984K | More Details 
There are a number of beautifully expanded and renovated houses in downtown Louisville. Old bungalows continue to be converted into large, family residences. This one was completed in 2014, is in a very good location within strolling distance of shops and open space. For both buyers and sellers, it's a value benchmark for high quality, turn-key property in a prime location. Many of my Louisville buyers end up comparing houses like this to say, similarly priced property in South Boulder.  


Fresh Listings

Boulder 




2395 Vassar Drive | Asking Price: $2.45MM | More Details 
Recently completed, high-end spec project in Table Mesa. Reasonable size and layout, great schools, solid perch and design for viewing the Flatirons. Very contemporary and a great example of what you can do with an older ranch in Boulder. Check out what it used to look like. This one is turn-key and ready for a buyer that doesn't want to manage architects or take construction risk.  

P.S. The listing description says this house has "amazing" views. Want to know what else is amazing? 118 listings in Boulder County use the word "amazing" in their listing descriptions.  There's no shortcut to slicing through hyperbole. You've got to see it in person. 





960 7th Street | Asking Price: $1.7MM | More Details 

On a dead-end section of 7th Street in Rose Hill, a few blocks from Chautauqua. Late 80's construction and finishes. Grade: A for location, with a typical size lot. Save some money for interior remodeling. 











1505 Mapleton Avenue | Asking Price: $1.35MM | More Details
A flood of buyers are trying to see this pre-war beauty. Potentially undervalued, assuming no foundation issues or other undisclosed problems. It boasts a decent location and what appear to be protected picture-frame views. A little on the small side. Will likely not last the weekend.  









7545 Park Circle | Asking Price: $899,900 | More Details 
This neighborhood in Gunbarrel is filled with large family friendly houses built in the late 1980's. The semi-private park in the center of the neighborhood is a nice draw. Easy commute into Boulder. This particular house has a number of tasteful updates. 

To schedule a private showing, which includes a discussion of valuation and price trends, call Osman at 303.746.6896.







2947 Broadway Street B | Asking Price: $750,000 | More Details 
An alley Franken-house with a top level private apartment to offset the ownership cost. Claims to not front on Broadway, but you'll almost certainly be subject to traffic noise. The rental income offset and location might be attractive for an entry level or vacation use buyer looking for downtown Boulder proximity while using the garden to live their own farm-to-table fantasy.







1360 Walnut Street 213 | Asking Price: $749,000 | More Details 
Downtown lock and leave apartment with an industrial chic design. Decent size for entertaining. The studio is not a true one bedroom, but 1290 sqft of space gives you room to spread out.  
Due diligence: The downtown smoking ban has increased transient density in this location, in particular in front of the Circle K and Liquor Mart (one block away)  








3935 Darley Avenue | Asking Price: $689,900 | More Details 
A decent size bi-level in Table Mesa. What it lacks in curb appeal it makes up in walking distance to the new Lucky's and to Southern Sun. Best schools in Boulder. Typical size lot, might be a good candidate for a renovation. This price point is now the entry level for Table Mesa houses.  
Due diligence: Check traffic on Darley during peak periods.



Longmont 



333 Terry Street | Asking Price: $599,000 | More Details 
West side of Old Town, two blocks from Main Street. Classic architecture and tasteful updates in this 116 year old historic home. Prime location, and rapid gentrification will likely continue. The same house in a similar location in Boulder would be 2.2X to 2.5X. Sadly, no garage spaces or I'd want to buy it myself. 




Niwot

7265 Spring Creek Circle | Asking Price: $1,179,500 | More Details

Late 90's construction. Not too large (a common issue for higher end homes in Niwot) and on a decent size lot. Based on what the owners paid in 2000, and assuming few capital improvements, the asking price represents a 2.1% IRR. That sounds about right, but Niwot listings often have a ton of competitors and unusually long listing periods. If Niwot's performance during the last cycle is a guide, Buyers concerned with capital preservation and downside risk should plan to hold for at least 7 years.



To schedule a private showing, which includes a discussion of valuation and price trends, call Osman at 303.746.6896.


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Ready to buy or sell?  Click HERE to schedule an appointment or call 303.746.6896.

Like our Facebook page


Follow us on Twitter.

As always, your referrals are deeply appreciated.
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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate.

cover image: Marjorie Bertrand

Monday, August 15, 2016

No Dogs Allowed [Due Diligence: Read Your HOA Docs!]

by Osman Parvez
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Public service reminder:  Read your HOA documents.  

The following references sections of the standard Colorado Real Estate Commission approved real estate contract to Buy and Sell. 

§ 7.3 Association Documents 
This is the seller's deadline to provide the buyer with association documents. Among other things, it should include the covenants, codes, and restrictions for the property.  It should also include minutes from board meetings and financials. 

§ 7.4 Association Documents Objection Deadline
This is the buyer's deadline to have reviewed the documents. If something is not acceptable, buyers must notify the seller on or before the deadline.

Occasionally, I'll find restrictions that just won't work for some buyers - like rules against certain pets or in this particular case, against motorcycles or commercial vehicles parked on the street. More commonly, I'll find discussions over nuisance matters, deferred maintenance, and potential special assessments.  

Buyers Beware. If available, carefully review the reserve study and analyze the financial track record of the association.

Remember: You're buying into a club where you're on the hook for maintenance and capital improvements.  Misspending and mismanagement is a huge red flag.  It's not just about the rules for fido and fifi.  

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Want to get blog updates via email?  Click HERE.       
Ready to buy or sell?  Schedule an appointment or call 303.746.6896. 
You can also like our Facebook page or follow us on Twitter.

As always, your referrals are deeply appreciated.  

--
The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate.