Category: Real Estate

At Golden Real Estate, Our Brokers Focus on What Is Important to Homebuyers

We are a listing brokerage, but, like any successful real estate firm, we also represent buyers. While we have particular competence in the listing and marketing of homes for sale, we are also successful in helping buyers find homes to buy, get them under contract, and then shepherd those buyers through closing and move-in, all the while bringing our years of experience and acquired competence to each stage of the process.

We know that, first of all, buyers’ agents need to be good listeners — find out what’s important to the buyer. That can and does vary from buyer to buyer. In this article, I’ll describe what I’ve found is typically important beyond those very personal needs and wants.

Buyers need and want to know what the real estate market is like and what their money can buy. The best way to learn that, I’ve found, is to set up an MLS email alert early on, matching their search criteria.

While buyers can do their own searching on consumer-facing websites, not all MLS fields are search-able unless you’re a member of the MLS. A good example of that is searching for a main-floor primary suite. That is not a searchable field on any consumer website that I’m aware of. On Zillow you can search for single-story homes, but many 2-story homes also have main-floor primary suites.

Think of other features important to you. Almost every MLS field can be a search criterion, but only for an MLS member agent, who can include them in an MLS alert that he or she sets up for you.

Do you want a fenced yard?  RV parking? Do you want mountain and/or city views? Solar panels? A particular elementary school?

You can receive an alert about homes matching your personalized search criteria as soon as they go on the market. Daily or monthly emails are also an option.

Such MLS alerts can give the buyer a sense of the market, whether or not he/she is ready to start looking at homes and/or make an offer on one they like.

Financing is critical, of course, and a buyer’s agent needs to know the financial capabilities and limitations of his or her buyer and have an excellent loan officer who can let the buyer and agent know the price range for which the buyer is qualified. Some loan officers, such as ours, are more creative than others at solving problems and matching a buyer with the best loan.

Knowing whether a particular home is priced correctly and what a proper offering price would be is important to any buyer. When you find a home you want to buy, we have three valuation tools, not just Zillow, that can provide guidance on what a proper offer should be. What did comparable homes sell for, how long were they on the market, and did they sell above or below the listing price? That’s easy for us to research and show you.

If you have lost bidding wars and don’t want that to be in another one, you can ask your agent to send only listings that have been on the market more than a week or 10 days. By then the chance of competing with other buyers is much reduced.

Homes in newer subdivisions may have significantly higher property taxes because they are in a metropolitan tax district. Although the MLS displayus the property tax for each listing, it doesn’t include the all-important mill levy. The tax rate for a home in a metropolitan tax district can be up to double that of a home outside that tax district, and we can make sure you know when that’s the case.

Some buyers, especially those with RVs, want to avoid listings that are in an HOA that limits RV parking. That’s another criterion that can be specified in email alerts, as is the availability of on-site RV parking.

These are just some of the things which we have found are important to homebuyers. What’s important to you? Knowing the value of an experienced agent in helping you find homes which meet your needs is a good reason to work with one of us at Golden Real Estate.

Cost-Effective Improvements to Help Your Home Sell Better

When it comes to improving your home to sell for more money, there are several improvements that experience has taught us can make a significant impact. Here’s our checklist for you:

1. Enhance curb appeal: First impressions matter, so focus on improving the exterior of your home. Trim the lawn, prune bushes, plant flowers, and add fresh mulch. (I have a vendor to recommend for yard cleanup.) Our handyman can repaint the front door, clean windows, and handle other cosmetic repairs.

2. Declutter and deep clean: Clean and clutter-free homes appear more spacious and are appealing to buyers. We can recommend a professional house cleaner, and we provide a free staging consultation to guide you on the rest. Pay special attention to kitchens and bathrooms.

3. Repaint and touch up: A fresh coat of paint can give your home a renewed look. Stick to neutral colors that have broad appeal. Our handyman can patch any holes and deal with peeling paint. Ensure that all surfaces are clean and well-maintained.

4. Upgrade lighting: Good lighting makes your home brighter and more inviting. Replace incandescent and CFL bulbs with LEDs. Focus on key areas such as the kitchen, living room, and bathrooms. (Batteries + Bulbs has great deals on LEDs.)

5. Improve your home’s energy efficiency: Buyers favor energy-efficient homes. Consider installing weatherstripping, sealing air leaks, and adding insulation if needed. Upgrading to energy-efficient appliances, such as refrigerators and water heaters, can also be appealing. We can guide you on this and recommend honest vendors.

6. Update kitchen and bathrooms: If a major renovation is not feasible, focus on small updates such as replacing cabinet hardware, upgrading faucets, and installing new light fixtures. Consider painting or refinishing cabinets. Flooring is important, too!

7. Enhance storage: Ample storage space is so important! Increase the functionality of closets and cabinets by adding organizers or shelves. Our staging consultant can provide guidance on this topic, too.

8. Improve landscaping: Clean up flower beds, and consider some strategic landscaping improvements such as a patio.

9. Address minor repairs: Our handyman (available only to clients) can fix any visible issues like leaky faucets, broken tiles, or squeaky doors. It’s important to fix what I call “eyesores” — anything that draws negative attention during a showing.

10. Stage strategically: Our stager can help you rearrange furniture to maximize space, remove personal items, and add tasteful decorations.

Hiring Golden Real Estate is a good first step. Like our handyman, our free stager is a benefit that comes with hiring us, but even before hiring us — in other words, during a listing appointment — my broker associates and I are happy to provide our own advice based on our years of experience listing and selling homes. Call us! Our phone number is 303-302-3636 or email info@GoldenRealEstate.com.

Condo in Downtown Winter Park Just Listed by Austin Pottorff

This condo at 78491 Hwy 40, Unit B3, is in the very center of downtown Winter Park, offering great views and easy access to all the activities Winter Park has to offer. It is listed at $699,996 by broker associate Austin Pottorff. This 2-bedroom unit with 1,063 square feet is within walking distance to restaurants, grocery stores, retail shops, the Idlewild Park Amphitheater, the Fraser River, and numerous bike/pedestrian trails. Recent updates include a new water heater, bathroom, and washer/dryer. Free shuttle buses stop in front of this building, allowing convenient access to the Winter Park area and beyond. This condo presents an excellent multi-use investment opportunity, whether for personal use or for rental purposes. More pictures and a video of this listing are at www.WinterParkCondo.info, or call agent/owner Austin Pottorff at 970-281-9071 to arrange an in-person showing. 

It’s Still a Seller’s Market in Metro Denver – If Homes Are Priced Right

Here’s this week’s report on the real estate market in the Denver Metro Area.  Unlike others, I define the metro area geographically, not by county — as an 18-mile radius of Downtown Denver (see map), which includes Lone Tree but not Parker or Castle Pines to the South and Superior and Louisville but not the City of Boulder to the North.  To the west it goes to El Rancho, but not Evergreen, and to the east it goes to DIA but not Watkins.

In that area, there are currently 4,210 active listings with a median Days on MLS (DOM) of 28.  Only 830 of them are 7 days or less, which is the median DOM of the listings that closed in the last 7 days. Two-thirds of the active listings have been active over 14 days, and over 11% of the listings have been active over 120 days!  In short, we have a HUGE surplus of over-priced active listings.  (If you want to make a lowball offer, ask me or your agent to show you only listings that have been active over a month!)

Of the nearly 4,000 listings currently under contract within 18 miles of downtown Denver, the median days before going under contract was 9.  Of the listings that closed in last 7 days, the median days on the MLS was 7.  What does that say about the 80% of currently active listings that have been on the MLS over 7 days.  Not good!

There has been a big shift in Median Days on MLS this spring. Until last August, the median DOM had been under 10 throughout the pandemic, but between August 2022 and Feb. 2023, it ranged from 10 to 32 median days on the MLS.  But, surprise! Starting in March of this year, the median DOM is again under 10.  Happy days are here again — IF the home is priced right!

Real Estate Industry Is Abuzz With How Brokers Could Utilize ChatGPT

I’ve been reading lots of real estate newsletters and blog posts about how to put AI to work, specifically by using ChatGPT. I have also played with that app, asking it to generate articles and answer questions on a variety of real estate-related topics. Like others who have reviewed ChatGPT, I am super impressed — and also a little concerned. Why? This column, written entirely by me, a former professional journalist, has set Golden Real Estate and myself apart from my colleagues and has brought my brokerage and me 90% or more of our business because of the credibility it has succeeded in building for us. 

It’s a sad truism about America that the vast majority of citizens, unless they are in a writing profession, can’t or are reluctant to compose a readable, grammatically correct and compelling paragraph about anything.  Thanks to ChatGPT, don’t be surprised if you start receiving newsletters, blog posts and other well written materials demonstrating greatly improved skills by your local agents!

One blog post I read about ChatGPT suggested that I ask it to rewrite a property description to be more compelling, and so I entered the description of a particular listing and within a few seconds got the rewrite.  Look for the separate blog post comparing what I wrote with ChatGPT’s rewrite of it. In that blog post, I did not change a single word, although I did eliminate a few paragraph breaks. The quality of the writing is superb, and the content was completely faithful to what I had written. It is significantly more wordy, with 317 vs. 218 words, making it more conversational.

I also asked ChatGPT to write some articles on different real estate topics to see how wise and accurate they might be, and I was surprised to see how well it did.

One of the topics I gave to ChatGPT was based on a May 8th article on Inman News with the headline, “Why buyer love letters deserve a second chance.” Look for the separate blog post of what ChatGPT wrote for me on this topic, followed by my reaction to it.

I Asked ChatGPT to Improve Upon My Description of This Listing:

Here’s what ChatGPT produced in about 10 seconds:

The property at 1004 4th Street sounds truly remarkable. With its unique features and convenient location, it offers an exceptional living experience in the heart of Golden. Here’s a summary of the key highlights:

This one-of-a-kind home boasts stunning views of North and South Table Mountain, visible through the floor-to-ceiling windows on the main level. Being within walking distance to downtown Golden allows easy access to its renowned shops and restaurants, adding to the convenience and charm of the location. The house itself is a spacious 4-bedroom, 4-bathroom residence situated on a corner lot. The wide-open floor plan on the main level creates a welcoming space, ideal for entertaining or simply enjoying the breathtaking views while staying cozy near the gas fireplace.

The kitchen is a chef’s delight, featuring state-of-the-art appliances including a 6-burner stove with an additional griddle and double oven. The oversized refrigerator and walk-in pantry provide ample storage space for culinary enthusiasts. The primary suite offers a spa-like retreat with a walk-in steam shower featuring three shower heads, two sinks with quartz counters, a soaking tub, and an extra-large walk-in closet. On the upper level, you’ll find two bedrooms, a tiled 3/4 bath, and a versatile bonus area with desks, bookshelves, and fantastic views. Additionally, there’s a rooftop office/reading room that opens up to a private roof-top deck, offering a tranquil space to work or relax.

The lower level presents the opportunity for a mother-in-law living space, featuring an extra-large bedroom with a walk-in closet, a spacious living area with a wet bar, and its own private patio. Included with the property is a one-year builder warranty, providing peace of mind to the new homeowner. For a detailed visual experience of the home, you can take a narrated video tour at www.NorthGoldenHome.com.

With its exceptional design, breathtaking views, and convenient location near downtown Golden, this property offers a truly unique and desirable living environment.

Warning: Being ‘Anti-Woke’ Could Be a Realtor Code of Ethics Violation

Dictionary.com defines “wokeism” as “the promotion of liberal progressive ideology and policy as an expression of sensitivity to systemic injustices and prejudices.” The political right in America has made “wokeism” one of its favorite punching bags.

June is being celebrated as “Pride Month,” and Realtors with conservative leanings might want to keep in mind that any expression of anti-gay or anti-trans opinions could be taken as a violation of Article 10 of the Realtor Code of Ethics, which states that NAR members shall not discriminate “on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.” Since ethics complaints are initiated not by NAR, but by individual members against each other or by the general public, this matter should not be taken lightly.

Opportunities abound to show one’s “anti-wokeism” through, for example, social media likes and posts. Take, for example, right-wing attacks and boycotts against Disney World, Target and Bud Light because of their alignment with LGBTQ issues or celebration of Pride Month.

Realtors who agree with such anti-LGBTQ sentiment would be wise to keep their feelings to themselves. That advice would apply as well to any expression of prejudice against other protected classes enumerated from Article 10 above.

Don’t Let Capital Gains Tax Deter You From Cashing Out on an Investment Property

According to the Census Bureau, our country has nearly 116M housing units for a population of 330M men, women, and children. Sixty percent of the housing units are single-family detached homes.

The National Association of Home Builders states that roughly 7M of the housing units (about 6%) are second homes or vacation homes not available to rent.   

The Census Bureau calculates there are 20M rental properties in the U.S., owned by 14.3M individual investors. According to www.AirDNA.co, there are 1.1M short-term rentals.

So, there are over 28M properties out of 116M that are either vacation homes, second homes or investment properties of some type.

The Colorado Association of Realtors reports that the number of second home sales has jumped 44% since the beginning of Covid in March 2020.  So, whether you own a vacation home, second home, rental home, or short-term rental condo, you own real estate subject to capital gains tax when you sell.

Many sellers of investment properties take advantage of the Sec. 1031 tax deferred exchange option, which allows the property owner to put your full proceeds, pre-tax, to work. 

Doing a 1031 exchange of real estate requires what’s called a “qualified intermediary” (or QI) and not the title company conducting the closing to hold your proceeds until you reinvest them, and the IRS allows 45 days to identify and 180 days to close on the replacement property. Sellers cannot “touch” the proceeds from the sale of your relinquished property. The QI must work with the title company to facilitate transfer of the proceeds to the new closing. If a qualifying replacement property cannot be closed within 180 days, that opportunity is lost and the gain will be taxable.

Unless the investment property is inherited at your death, there will be a capital gains tax liability. For some, the gain has been so significant that perhaps it’s time to pay the tax and laugh all the way to the bank with the remainder. Note: You cannot use the 1031 tax deferral strategy to sell or purchase a primary residence.

There are capital gains tax calculators online. Here’s one: https://smartasset.com/investing/capital-gains-tax-calculator

Here’s the IRS’s Fact Sheet for 1031 Exchanges: www.irs.gov/pub/irs-news/fs-08-18.pdf

To determine your tax exposure, start with the original purchase price. What did you pay for the property when you bought it? Second, add up all the money you put into capital improvements of the property. Then subtract depreciation which you took on your tax returns. The IRS considers investment real estate’s “useful life” to be 27.5 years. The cost basis of the property is the amount you paid, plus the cost of selling it – commissions, settlement fees, and closing costs, minus the depreciation taken.

An agent in our office calculated the following numbers for a deal he is doing and roughly calculated the net gain. His seller’s unit was purchased in 2016 for $275,000, netted the owner $10,000 per year in passive income, enjoying a 61% profit in just six years, after tax. The lucky owner paid the tax man and was left with roughly $377,000 in cash after everything was deducted. Discuss your particular situation with your CPA if you have one, and, if not, I can recommend a local firm. These figures are round numbers and for the purposes of this article.

I believe in paying taxes. It is pothole season and street crews are at work. Fireman are on call and the police are vigilant. Our national defense is strong, and we live in the most prosperous nation in the world where wealth can be created simply from smart investing. Be proud, as I am, to pay your taxes, for you made a lot of money in a beautiful place called Colorado.

Austin Pottorff, who deals more than I do with investors, helped with the research for this article.  He has two development sites listed at this time. See them at www.GoldenDevelopmentSite.info and at www.LakewoodDevelopmentSite.info.

If Energy Efficiency in Your New Home Matters to You, Call Us.

One of the two value statements on our yard signs (see logo above) is “Promoting and Modeling Environmental Responsibility.”

If you’re a buyer wanting to assess the energy efficiency of the homes you are looking at, you owe it to yourself to hire one of our agents to represent you and show you homes, because we know this topic better than most real estate agents.

In addition to pointing out how sustainable the houses we show you are, our inspectors “speak green” too, and, as a summer special, we are giving buyers who hire us a Free Energy Audit as a closing gift. Call me at 303-525-1851 or email Jim@GoldenRealEstate.com.

Meet Our Broker Associates and Me at the Farmers Market in Golden June 17th

Every summer, Golden Real Estate gets a “showcase” booth at one of the farmers markets held in downtown Golden, and Saturday, June 17th, is our date this year.

Bring your questions about real estate, or simply come to say “hello.” We’ll have our laptops online so we can even help you look at homes and set up an MLS email alert matching your search criteria.

You’ll get to enter a drawing for a $100 gift certificate to a Golden restaurant. And bring your reusable bags — Golden’s is one of Denver’s top-rated farmers markets!

We’ll be there from 8 a.m. to 1 p.m. The market is in the parking lot next to the Public Library on 10th Street in downtown Golden.