Friday, August 12, 2016

Needs a Little Remodeling [Fresh Listings, Get 'Em Hot]

Bring your pickiest buyers....
This week: A Victorian in clown paint, a cottage in downtown Louisville, a historic grandfathered income property in Chautauqua, and a rare opportunity to get into Old Town for cheap. Plus notable sales. 

As always, I've carefully sifted through this week's listings and recent sales in Boulder and surrounding areas. These are the properties worth seeing and worth talking about.  

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


Sold Listings of Note


8964 Little Raven Trl 
| Sold: $1,507,500 | More Details 

A beautiful house in a great location. It's also a good illustration for why I push my luxury market clients to be extremely selective. 

The seller of 8964 Little Raven must have felt a great deal of confidence when they first listed the house in March of 2015 for $1,850,000. Four painful, back to reality price reductions and 18 months later, they finally found a buyer at $1.507,500. 

Lesson 1: To maximize price, market psychology must be on your side. Price it right, market it professionally, or risk tainting the listing. You want buyers to feel a sense of exclusivity, to be blown away by the staging, and feel lucky they got a chance to see it. The last thing you want is for them to ask "what's wrong with it?" Even two weeks on market without a buyer creates a negative perception of the desirability of the property. Never, ever list your home with a wishful thinking asking price. 

Lesson 2: Certain locations (like Niwot) have a large supply of luxury homes and demand (relative to supply) is quite low. During the last downturn, Niwot had well over two years of supply of $1MM+ homes. This particular owner purchased the house at $1,416,000 way back in 2001. That's a 0.4% IRR. In other words, they lost money on this house despite the lengthy ownership period.

805 Pine Brook Rd | Sold: $1,103,511 | More Details
This beautiful 4 bedroom, 4 bath house in the lower foothills is only a short drive into Boulder. Framed around mountain views, nicely updated inside, and on a generous lot. It was listed at $1.3MM in May, but after two months on market, the seller took a low offer and the deal closed at $1.1MM, a whopping 8.5% below asking.  Lesson: Don't be afraid to write low offers on property that has been on the market for a significant period of time, especially when the seller is sitting on a mountain of equity.  In this case, mortgage records show precisely that. If your agent is afraid to negotiate, find one who makes negotiation expertise their competitive advantage.  

630 Hartford Dr | Sold: $815,000 | More Details 
A data point for the current market value of a cosmetically updated 4 bed, 2 bath bi-level in a decent location in South Boulder. Updates are kitchen and baths, staging makes it look great. Formerly a rental house. Boulder's best rated schools. There are many similar houses, most not updated. Data: Year to date, there have been 45 bi-level sales in Boulder.  The majority (28) were in Table Mesa. This one sold at asking, 28 days on market before receiving an offer, not cash (conventional mortgage).  Remember, before you write an offer, review the most recent negotiations. 



7793 Cornwall Circle | Sold: $687,000 | More Details 
Another one for your data file.  This is an early 70's 4/3 two story in Heatherwood on a generous lot. The kitchen was updated recently but that gold trim around the master bath tells you it's been at least a couple of decades since it was last touched. Good location within the neighborhood. Easy commuting into Boulder and Gunbarrel retail keeps getting better. Sold for $7,100 over asking, conventional mortgage (not cash), available for a full 8 days before an offer was accepted. If you need space for a family and feel priced out of Boulder proper, a house like this in Heatherwood would be an excellent alternative.


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

Boulder 

3981 Promontory Ct| Asking: $1,850,000 | More Details 
Pros: nicely updated on the inside (beautiful wine cellar), this 4 bed, 4 bath is parked right up against Wonderland lake open space. Lucky's North is within walking distance. The three car garage is a bonus.Cons: Curb appeal on the outside is a little lacking for a house a this price point and it feels a penned in among neighbors. 

927 12th Street | Asking: $1,200,000 | More Details 
The property currently throws off $5,100 in rent and is a non-conforming, but supposedly legal Duplex. Lots of students in this location but it's steadily turning over as landlords exit and sell to non-investment buyers. This would make a great opportunity for a buyer who wants to get into Chautauqua and will live in one side while renting out the other to offset ownership costs. In the future, the owner could do a complete renovation and occupy both sides or move out and enjoy the income.   Due diligence: Costs to bring this house into smart regs compliance could be significant.  Also don't let the rental licenses expire - ever. 

960 McIntire Street | Asking: $625,000 | More Details 
A 3 bed, 3 bath Tri-Level east of Foothills with a 2 car garage.  Priced slightly more than typical Martin Acres or Baseline ranch.  You're trading living space for a family for a less than optimal location. Could use a few updates but livable as it stands.  This is slightly above the entry level for Boulder.  Won't last long is an understatement.  The entry level is the market segment with the highest demand relative to available inventory. 


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

1100 La Farge Ave | Asking: $1,359,000 | More Details 
Good thing paint is cheap. This house is in an awesome location and the lot size is generous. The layout is great, the architecture is classic Victorian, the wrap-around porch is inviting. It even has a 3 car detached garage.  The interior could also use a refresh.  

836 Lincoln Ave | Asking: $625,000 | More Details 
Historic miners cottages in prime locations are rare. This one is on a huge lot and includes a detached 2 car garage and large shed. The house itself needs lots of updating but the bones might be there for a long-term investment project. The large lot could allow expansion potential if the historic charm is preserved. It checks a lot of my personal investment boxes. 

Longmont 

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

526 Pratt Street | Asking: $565,000 | More Details 
A legal, non conforming duplex.  Consider this a cheap way to enter the Old Town neighborhood with the ability to offset ownership costs by renting out the upper level (or vice versa).  In a few years, convert it back into a single living unit or use the extra cash flow to fund the renovation or your next investment. 

4555 13th Street #2C | Asking: $450,000 | More Details 
1 bed, 2 bath lock and leave with excellent retail just steps away. Easy bike or bus ride into downtown Boulder, just minutes away.  Stop at North Lucky's to bring home the bacon on the way back. This neighborhood is the only one in Boulder to have an actual plan for revitalization. It's also coming along nicely and will continue to accelerate as the Armory Project gathers steam (read: What You Need to Know) and the miscellaneous light industrial and strip club are replaced.  Full disclosure:  I am a big believer in the long term potential of Uptown Broadway. I like it so much, I own investment property here. 

3303 ONeal Parkway | Asking: $299,900 | More Details 
2 bed, 1 bath condo in a high student density location. Build quality is not stellar but these units make for good CU kiddo condos. Historic returns have not been as good as, say Wimbledon, but the location has been improving in recent years. Rayback and lots of other interesting retail is a short bike ride away.

3250 ONeal Cir L-24 | Asking: $210,000 | More Details

Same location as 3303 Oneal but in Stratford Park and only a 1 bedroom.  A few months ago, I analyzed appreciation rates for 1 vs 2 bedroom condos in Boulder for an investor. 2 bedroom and 1 bedroom units are not markedly different, but 1 bedrooms should rent more easily.  3303 ONeal is a smarter buy.


Investment Opportunities 

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

1254 Sherman Drive #1-5| Asking: $895,000 | More Details
5 units of light industrial/warehouse space, partially rented.  Might be ideal for a business owner who needs flexible space.  With 3/5 units rented, it also has built-in income until the time comes to expand. Great location.  

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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:  Donnie Nunley via CC 2.0

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