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Welcome to Centre Pointe Station, 4600 E. Asbury Circle, and this updated 2-bedroom, 1-bath condominium (Unit 301), which is centrally located just across the pedestrian bridge from the light rail station just east of Colorado Blvd. Hardwood floors greet you as you enter this bright unit with large covered balconies and mountain views!  This condo features granite countertops, stainless steel appliances, newer sliding glass doors, room air conditioning, included washer/dryer unit, updated lighting, fans and fixtures. The building features reserved parking, a secured entry, fitness room, and owner’s storage. See more exterior and interior pictures at www.DenverCondo.info, then contact your agent or Kristi Brunel at 303-525-2520 for a private showing.   Sorry, there will be no open houses.  Listed at $210,000.

 

Golden Pines is a complex of 3-story condo buildings, with six units in each of 28 entries. It is located in the Pleasant View community about 3 miles east of downtown Golden. The address is 16529 W. 10th Ave. #E-6. Enjoy the warmth and light of this south facing top floor unit. The private balcony looks over a grassy courtyard which is adjacent to an assigned parking space. It has 2 bedrooms and 1 bath and measures 773 sq. ft.  This property needs work. It was a long-term rental with smokers but is now vacant. Great potential and priced accordingly. Needs carpet and paint. Kitchen and bathroom cabinets are original and in poor shape. Flooring, furnace and fixtures all could use some improvement. Has newer appliances and the windows and sliding door were replaced several years ago. More info at www.GoldenPinesCondo.info, then call Jim Swanson at 303-929-2727 to arrange a showing.  Sorry, no open houses. Listed at $151,000.

 

This ranch-style home at  5194 Bristol Street is in the Blue Hills Estates subdivision west of Drake Middle School. Built in 1979, the seller is the original owner, and the pride of ownership is evident throughout. The original cedar siding has been replaced with fiber cement siding and freshly painted. Five large skylights bring sunlight into the family room, kitchen and the interior bathroom. The large family room has a vaulted ceiling with 3 skylights and a wood-burning fireplace with brick hearth and chimney. The covered front porch has a rich brick floor. The backyard features mature blue spruce, ponderosa pine and other evergreens. The high-efficiency furnace has both an electronic air filter and high-end Aprilaire steam humidifier. See more photographs and take a narrated video tour at www.ArvadaRanch.info. I’m holding it open on Sunday, July 15th, 11 a.m. – 2 p.m.

Listed at $448,000.

 

As I have mentioned before (in an article about ending regulation of HOA managers), Colorado is a “regulation-light” state, meaning that it will avoid regulating an industry without solid evidence that regulation benefits the public.

That attitude is, in part, why Colorado was the 49^th state to regulate mortgage brokers when it did so in  2007, and is why the state still doesn’t regulate home inspectors. Currently, only 19 states do not license inspectors.

If it weren’t for the certification programs of two national trade associations, we would have no reasonable assurance of competence from the men and women who present themselves as “home inspectors.”

It’s amazing, given the value of the investment at risk, that anyone can offer their services as a home inspector without any experience and without taking even a single examination to determine their level competence. The inspector you hire could even be a felon, fresh out of prison, because there is no criminal background check required.

In addition, without regulation there is no requirement that home inspectors have the kind of “errors and omissions” (E&O) insurance that other professionals — including real estate agents — must carry. Without regulation there can be no requirement for continuing education classes, just as there is no requirement for training to become a home inspector.

 

Imagine the heartbreak. You’ve been waiting for a home in a particular neighborhood that backs to open space. There are very few of them. Your agent has set up an MLS alert so you’ll be notified the minute such a home goes on the market.

One day you get an MLS alert — your dream house was just listed! Two minutes later, before you can even call your agent to schedule a showing, you get a second alert that it’s under contract. Then, two minutes later, a third alert that it’s sold. What happened?

It’s simple. Listings can only be entered on the MLS as “Active” and then changed to “Under Contract” and “Sold.”  Apparently a buyer’s agent had convinced the homeowner to sell their home for $925,000. The seller agreed. After all, the county assessor’s most recent valuation was $924,138, and the seller purchased the home in 1997 for $343,400.  A tidy capital gain indeed!

But it’s not that simple.  That assessor’s valuation was as of June 2016 — two years ago!  Valuation software shows the home is worth up to $150,000 more today. Heck, even Zillow shows it as being worth $10,000 more.

Given the opportunity to see the home and submit competing offers, other buyers could well have driven the price over $1 million.

So it was a lose-lose — or should we say win-lose-lose? That buyer won, getting the home for less than it’s worth, but the seller and the would-be buyer both lost. And, oh yes, the buyer’s agent was rewarded with a big commission for convincing the seller to part with their home for what the county assessor said it was worth two years ago!  (This was an actual recent sale.)

Don’t let this happen to you.   A savvy seller would treat an unsolicited offer to buy their home as the “opening bid.” Professional agents, like the ones at Golden Real Estate, would analyze the market and help you determine your initial asking price.  Our approach is to list homes at a price that attracts the greatest number of qualified prospective buyers. Using this ad space and other media, we expose our listings to the widest possible market.  In short, we do exactly what buyer’s agents hope you won’t do – work diligently to give sellers the best opportunity to benefit from the current sellers’ market.

The scenario described above has contributed to the limited inventory of active listings.   As I wrote in my March 22 column (download-able at www.JimSmithColumns.com), homes that are on the MLS between one and four days sell for much more than those at zero days.  Experience has shown us that 4 days on market is the “sweet spot,” where, with a solid pricing strategy and effective marketing (like that offered by Golden Real Estate), potential buyers are given the best opportunity to find, view and make an offer on your home.

The following chart (source: REcolorado) shows the ratio of sold price to list price for listings sold since Jan. 1, 2018:

1 Day on Market  =  102.0%

2 Days on Market  =  102.2%

3 Days on Market  =  102.2%

4 Days on Market  =  102.3%

5 Days on Market  =  102.2%

6 Days on Market  =  101.5%

7 Days on Market  =  100.5%

8 Days on Market  =  100.0%

9 Days or longer  =  Under 100%.

Of course, there can be legitimate reasons for a property to be sold without being put on the market, such as selling to a relative or friend, but any arm’s length transaction really should be put on the market. Otherwise, you could be leaving money on the table.

 

Today’s “sellers market” can prove challenging for almost any home buyer – including those who have a home to sell.  Here are some examples of buyers and sellers and the challenges they face:

►Homeowners who would like to sell but are worried they won’t be able to find a replacement home.

►Homeowners who don’t feel they can compete as a buyer because they must make any purchase contingent on selling their current one.

►Home buyers relocating to Colorado who would prefer to rent for a while before buying.

►Tenants whose landlord is selling the home they’re renting, and would like to buy it but need time to qualify for a loan.

►Tenants who see a home for sale on the MLS and wish they could rent it instead.

Golden Real Estate can now meet the needs of such would-be home buyers. Under our innovative program, you need only be pre-approved as a tenant, not as a home buyer. Once approved as a tenant, you let us show you homes (except condos) that are for sale up to $550,000, knowing that we have a cash buyer ready to purchase the home and rent it to you.

Our cash buyer is Home Partners of America. Every agent at Golden Real Estate is an approved agent for them. The process is quick and painless. Here’s how it works. We submit your name and contact information to the buyer. They interview you to determine whether they would accept you as a tenant. Once approved, you visit their website, where all qualifying homes from the Denver MLS are listed, with one important difference – each home displays a rental price in addition to its sale price. Once we’ve helped you find a home you’d like to rent, you are presented with a rent-with-right-to-purchase contract. That contract will contain a grid of rental and purchase prices spanning the next five years. You never have to purchase and you don’t have to rent beyond year one.

Below is an example of that grid for a current MLS listing we found with a purchase price of $475,000.

These figures are only estimates because they assume the home is purchased for its listing price. It could be purchased for more or for less, and there could be other costs, such as repairs, associated with making the home ready for you to move in.

As long as you remain within the terms of your agreement, you will never be asked to leave during those five years.  Move, rent or buy – it’s entirely up to you.

The rent is deemed to be at market rate, so none of your rent is applied to the purchase price. You don’t have to wait until the end of your lease to purchase. You can purchase for the designated price at any time during your lease term, as shown in the grid.

Revisiting those examples of challenged buyers above, this program has the potential to meet all of their different challenges.

The homeowner who wants to sell can now do so without worrying about finding a replacement home or submitting an offer contingent on the sale of their current home. They can sign a rental agreement with Home Partners on a house that they might ultimately want to buy, but don’t have to buy. This allows the homeowner to put their home on the market using Golden Real Estate without worrying about making themselves homeless. The program gets them into an interim home, whether or not it’s one they ultimately choose to buy. They sell their home, get their cash and become a stronger non-contingent buyer with a big down payment, who can then take as long as they need to find their new home.

What about the person relocating to Colorado? This program is perfect for them, because it allows them to “test drive” a home and neighborhood they think they might like without having to fully commit to it until they have familiarized themselves with the metro area.  They have the luxury of time that they might not otherwise enjoy.

What about the tenant whose house is being sold and they have to move? Home Partners might be able to purchase that house and keep them as a tenant – a tenant who now has the security of a guaranteed right to stay for 5 years, plus the right to purchase the home if they later qualify.

People often walk into our office and ask if we handle rentals – we don’t.  This program provides an opportunity to many of these walk-ins, who would really prefer to buy but aren’t yet ready for one reason or another. Also, the inventory of homes for rent is even smaller than that of homes for sale. Wouldn’t it be great if nearly every home (except condos) priced up to $550,000 on the MLS was also available to rent?  With this program, that opportunity is yours.

You can’t contact Home Partners directly. If you think the program might be for you, you apply for it through me or one of my broker associates at Golden Real Estate. You are under no obligation to follow through, even after you are approved as a tenant. But if you like what you see, we’ll start showing you homes for sale which Home Partners is willing to purchase for you to rent.

There are other brokerages who participate with Home Partners in this program, but you’ll benefit from using Golden Real Estate, because we offer free moving into your rental — and into your ultimate purchase, if different. Conditions apply, but at the very least you have free use of our moving trucks, boxes and packing materials. Call or email me for details. (See below.)

You’re also welcome to call our office at 303-302-3636 and speak to the agent on duty.  We’re happy to answer all your questions.

 

In a real estate transaction, the seller’s biggest single expense after brokers’ commissions is typically the title insurance policy — a little understood cost of selling real estate.  What does it cover, and why is it required?

While most insurance protects you from future risks, title insurance protects you from past risks. Title insurance guarantees that you get title to property free and clear of any liens or claims of ownership. Since we consider this the responsibility of the seller, that is who pays for the title insurance,  although I understand that in some states it is common for buyers to pay for it.

Another difference between title insurance and other types of insurance is that the premium is paid only once for lifetime coverage.

Although it’s unusual for a claim to be made on a title policy, it does happen.  For example, I once had to file a claim regarding a building I purchased in 1991.  A year after closing, I received a “lis pendens” (suit pending) notice from a Texas lawyer. I simply forwarded it to Land Title, which had issued the title insurance policy, and they settled the matter at no expense or inconvenience to me.

Unless it’s a cash transaction, there is a “piggy-back” policy issued to protect the mortgage lender. This policy is for the amount of the loan, versus the owner’s policy that protects the buyer up to the full purchase price. Such policies cost less because they require no additional work by the title company, and are typically issued at the buyer’s expense.

There are two kinds of title companies. There are direct underwriters, such as Fidelity National Title or Stewart Title, while other title companies serve as agents for those larger companies. Since the policies are underwritten by those big national companies, you’re not really at risk by using an agent company. However, you could have a problem if the agent company  holding part or all of your down payment goes out of business prior to closing. Those funds are supposed to be segregated in escrow accounts, but when commingling or misuse of funds occurs — as it has in the past — it can be a big deal.

Since Colorado has a somewhat antiquated regulatory environment in this arena; it is recommended that buyers and sellers obtain a “Closing Protection Letter” (which typically costs $25) to better protect their monies throughout a real estate closing.

All title insurance rates and closing settlement fees are regulated by the Division of Insurance. However, these filed rates and fees can still vary substantially, because of various discount programs offered by each company. The cost of title policies can vary by $100 to over $1,500, depending on the transaction; and the fee for conducting a closing can range from $100 to  $750.  Because of these variations, I recommend that sellers visit www.CompareTitleCompanies.com before selecting their title company.

 

Q. I want to get above my listing price. If I get a full-price offer, do I have to accept it?

A. My sellers occasionally ask this question because my listing strategy involves pricing a home at or near current, real-world market value, as opposed to some hoped-for higher price. Sometimes a seller says they don’t want to sell for any amount that’s not above the listing price and asks if they’re required to accept a full-price (or any) offer.

The answer is “no.” Sellers cannot be compelled to accept an offer, irrespective of the offered price.  I always explain this up front to prospective buyers (through their agent, if represented) who submit a full-price offer.  The Colorado real estate contract states that if the listing agent produces an offer that matches the terms specified, the seller owes the commission to the agent. To better serve my clients’ interests I insert an “additional provision” stating that they, as the seller, will not owe me a commission on any rejected offer.

At the same time, however, I point out that if the only offer(s) we receive are for full-price (or less), then we didn’t underprice the home, did we?

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Do you have a question you’d like answered here? Send it to Jim@GoldenRealEstate.com.