Golden Real Estate – Page 34

Big Battery-Electric Trucks Are Coming Soon

Previously I wrote about 2021 being “the year of the electric pickup.” Well, this year is also going to see the arrival of multiple box trucks, buses (including school buses), and big rigs with electric drive trains.

Rivian is already delivering on its order of 100,000 electric delivery trucks for Amazon, shown here. Nikola has an order from Republic Services for 5,000 trash trucks using the same platform as their semi tractor (below). Even Detroit Diesel, despite its name, is going to be producing a battery-electric semi tractor (also below) for its biggest customer, Freightliner.

The Tesla Semi (bottom) begins production by the end of 2021. Introduced with great fanfare in 2017, it has been field tested, I’m told, delivering trailer loads of Tesla cars to local Tesla stores. One was spotted last year at the Littleton store.

Want to keep up with EV news? Subscribe to a great weekly newsletter at www.GreenCarReports.com.

**Detroit Diesel electric tractor schematic**

NAR’s ‘Clear Cooperation’ Policy Is a First Step at Eliminating Pocket Listings

A “pocket listing” is a property which the listing agent does not put on the MLS, hoping to sell it himself or get it sold by other agents in his office. It’s not typically in the best interest of the seller, since the property is withheld from the full universe of potential buyers.

The organizing principle of the Multi-List System, or MLS, is “cooperation and compensation.” Every real estate agent working in the public arena needs to belong to the local MLS, because it’s only through the MLS that the agent can show and sell that MLS’s listings and be guaranteed the “co-op” commission displayed on the MLS.

A listing agent, naturally, would prefer not to give a big slice of the listing commission to the “cooperat-ing” broker who brings the buyer. He or she would much rather sell the listing, keeping the entire commission for him or herself. Meanwhile, other agents (and their buyers) are upset when they don’t have the opportunity to show a new listing and submit an offer, especially when there are so few listings on the market, as is currently the case.

The National Association of Realtors (NAR) took up the issue of pocket listings last year when it adopted a policy called Clear Cooperation. Essentially the policy says that if an MLS member advertises or promotes a listing in any way — including putting a “coming soon” sign in the yard or mentioning it on social media — that listing must be entered on the MLS within 24 hours. It can be listed as “coming soon” on the MLS, during which time it can’t be shown, including by the listing agent. Once it is shown, it must immediately be changed to “active,” allowing all MLS members to show and sell it.

Unfortunately for sellers, who are the big losers with pocket listings, this policy will never be completely effective. That is evident from the fact that over 7% of listings, by my count, are entered on the MLS only after they are sold. Unless a home remains active on the MLS for 3 or 4 days, it’s unlikely that all potential buyers will have had a chance to compete for it.

You may recall the featured listing in last week’s column. It was listed at $375,000, a price consistent with comparable sales, and we received a full-price offer on the first day. Our policy, however, is to get our sellers to wait four days before going under contract. We had 30 showings and received six offers by day four. By being transparent about the offers received, we were able to bid up the property by more than $55,000 by day four. We did get an offer $35,000 over listing price on day two, but we waited. Our seller benefited from waiting 2 more days.

Sadly, most listing agents haven’t adopted this practice. They sell their listings too quickly, potentially costing their sellers thousands but also frustrating would-be buyers who might pay more.

I have calculated that in addition to the 7% of listings being sold with zero days on the MLS, 15% are sold after only 1 or 2 days on the MLS.

One technique for minimizing showings by other agents has been to make a listing “active” but block showings with the showing service. Because the listing is “active,” the listing agent can show the property him or herself without technically violating the clear cooperation policy.

Another technique is the “office exclusive” option. A listing can be marketed within a brokerage without putting it on the MLS. But once any kind of public marketing takes place, the listing must immediately be put on the MLS as either “coming soon” or “active.”

Division of Real Estate Warns Homeowners About ‘Equity Skimming’ Schemes

By now, we should all be wary of people offering to “help” us financially, usually via the internet or email, but also by phone. As the saying goes, “If it sounds too good to be true, it probably is.”

Last week the Colorado Division of Real Estate (DRE) issued a warning about scammers cheating homeowners out of their home’s equity on the pretext of helping them pay HOA liens on their home.

Yes, an HOA can place a lien on your home for failing to pay your HOA assessments or fines, and an HOA lien takes priority even over the lien of your mortgage lender.

It is possible for an HOA to foreclose on your $600,000 home because of unpaid dues or fines, no matter how small. But if you can’t pay, what do you do? Those liens and subsequent foreclosure actions become public records, making you an easy-to-find target for a scammer wanting to “help” you.

Here’s a link to the full DRE warning. It describes several scamming scenarios. According to the DRE’s warning, those scenarios “can leave a homeowner losing their property, becoming a renter in their own home, having their credit rating severely damaged, and having the possibility that the lender may pursue a deficiency judgment against them if the property is foreclosed upon, as well as the HOA pursuing a personal judgment against them for unpaid HOA dues.”

Homeowners are urged to look for the following red flags:

> Anyone wanting you to act fast with a quick-fix to your financial difficulties.

> Promises to resolve your financial problems and to leave your cares behind.

> Someone wanting you to transfer your ownership in the property to them.

> Anyone asking you to sign a power of attorney for them to act on your behalf.

> Proposing that you’ll be a tenant in the home that you now own.

> Someone telling you that there is no need to consult with an attorney, accountant, real estate broker, lender or anyone else.

Feel free to contact me if you find yourself in this or a similar situation. My intention is not to convince you to list your home with me. I just want to give you my own layman’s feedback on what others may have told you, and I can, if appropriate, refer you to a trusted real estate attorney. First, however, read that DRE warning, which has lots of useful information and links for reporting suspected scams or getting other advice.

And, as I like to say, remember that “Google is your friend.” When contacted by someone you suspect could be a scammer, do a web search for the person and/or company and/or email address and/or phone number. Also, we have a special app called “Forewarn,” only available to licensed Realtors like myself, where I can instantly search by name or phone number. My broker associates and I use that app to check out people who want to do business with us, instantly learning their age, properties owned, bankruptcies or liens, criminal charges, and even cars they own. I’m happy to do such a search for you, too.

Lastly, I’d like to put in a good word for my cell carrier, T-Mobile. My previous cell carrier was AT&T, which didn’t provide Caller ID on people not in my contact list, but I do get Caller ID with T-Mobile. If a number does not have a name associated with it, I let it go into voice-mail, and those callers rarely leave a message, suggesting, I believe, that it was a “spoofed” number by a solicitor or scammer. Thank you, T-Mobile! I’m wasting a lot less time than I used to on answering unwanted calls.

2021 Will Be the ‘Year of the Electric Pickup’

The best selling vehicle in America for many years has been the Ford F-150 pick-up, so 2021 is bound to be a watershed year, given the number of electric pick-up trucks expected to hit the market — including, by the way, an electric F-150, which has been teased for at least a year.

Rivian is furthest along and will beat Tesla’s entry by several months. Rivian is simultaneously releasing an SUV and 4-door pickup, which appeal to the same demographic. The company is backed by Amazon, which has boosted Rivian’s financial situation by ordering 100,000 delivery vehicles to replace the blue Amazon vans we see every day in our neighborhoods. Some of them are already in service, but not in the Denver market. You may have seen an Amazon commercial featuring the new van.

The F-150 Electric begins production this year. Tesla’s Cybertruck may be in production by year’s end but certainly in 2022.

Also coming this year (or soon) are GM’s Hummer EV, the Atlis XT, Bollinger’s B2, and more. Click here for ChargePoint’s article with specs and prices on these six trucks. Click here for InsideEVs.com’s list of all the electric trucks they are expecting in 2021 and 2022, including the above six trucks plus the Lordstown Endurance, the Chevrolet BET, Nikola Badger, Hercules Alpha, and Fisker Alaska. Nissan is reportedly considering hiring Hercules to create an electric Nissan Titan.

**Amazon van by Rivian – already in production and in service**

DMAR Reports Average Home Price Rose by $100K in Last 12 Months

The Denver Metro Real Estate Market Trends Report, released on February 3rd by the Denver Metro Association of Realtors, reveals that detached single-family homes in the metro area set yet another record for average price, exceeding $629,000 in January. Attached single family homes (condos & townhomes) rose by less than half that amount, as shown in the above chart. Download the full report here.

What Defines a Bedroom? Neither the Real Estate Commission nor MLS Will Say

As a broker, I get to decide what constitutes a bedroom. We get no guidance or rules about that from either our MLS (REcolorado) or from the Colorado Real Estate Commission.

This week’s featured listing is a good example. When my seller purchased the condo in April 2017, it was advertised as a 2-bedroom unit, which is what the county assessor calls it. But that “second bedroom” has no window and no closet, measures only 9’ by 10’, and has double glass French doors between it and the kitchen area.

I could not in good conscience market that condo as anything other than a one-bedroom unit with a study.

I could “get away with” marketing the study as a “non-conforming” bedroom, but there are no definitions for that term, either. The term “non-conforming” is most often used for basement bedrooms which don’t have egress windows, although I’ve only used it when, for example, there was no bathroom on the same level or no door giving the room privacy.

On the other hand, I have seen basements listed as having a bedroom when the only door to that bedroom was the door at the top of the stairs. The most outlandish example I can recall was when an open loft overlooking the living room was listed as a bedroom, perhaps because there was a closet — but the nearest bathroom was downstairs.

I don’t sense any interest on the part of the MLS (on whose Rules & Regulations Committee I have sat for over a decade) or the Colorado Real Estate Commission (to which I’ve applied for appointment) to come up with a definition of “bedroom.” As with other terms such as “raised ranch” or “garden level,” it’s left to the managing brokers (like me) or the listing agents themselves to decide how to describe the homes they market, and it’s up to buyers to make their own decisions to buy a home, irrespective of how it has been described on the MLS.

So, for what it’s worth, here’s my definition of a bedroom: It must have walls (no open lofts!), a window to the outdoors, its own door to common space, a 3/4 or full bathroom on the same level, and, optionally, a closet. The window does not have to qualify as an egress window. The closet is optional only if the room is big enough to allow for a piece of furniture (a wardrobe or armoire) that can serve as a closet. It has to be big enough to support a bed and dresser without being crowded (at least 9’ by 12’ or about 100 square feet).

It’s a judgment call as to whether a room without all those criteria should be called a “non-conforming” bedroom. I do take stock of whether the county assessor calls it a bedroom, but, as I said, the assessor called the study in my condo listing a bedroom, probably because the builder called it that on their plans. (Builders, like brokers, have their own ways of seeing things, and no one is there to contradict them.)

Buyers ask to see a listing based on its description in the MLS, and I’ve had a buyer get really annoyed when we went to see a 3-bedroom home (which was their minimum requirement) only to discover it was a 2-bedroom home. I shared that buyer’s annoyance in the feedback I provided, but that listing continued to claim three bedrooms.

Some brokerages contribute to the problem of inaccurate property descriptions by not allowing broker associates to enter and manage the MLS data for their own listings. That’s not how Golden Real Estate operates. As managing broker, I want my broker associates to enter their own listings on the MLS, and I usually will look at those listings and give my feedback or make changes directly on the MLS, which I’m able to do as their managing broker.

We have an office policy of providing maximum (not just accurate) information on each listing. That means entering data in all applicable MLS fields and not just the mandatory ones. Many optional fields are quite important, not just useful, to buyers. These include each room’s dimensions and a general description of each room. A quick check of 71 current listings in Lakewood showed that only 13 of them included room dimensions and descriptions. A couple of them only listed bedrooms and bathrooms, not living rooms, kitchens, and other rooms. That’s because you can no longer just indicate the number of bedrooms and bathrooms, you must list each of them and the floor they are on, but you don’t need to enter dimensions or descriptions.

To me, describing the rooms is just as important as the “public remarks,” which is that one paragraph which you read on all the consumer websites to which each listing is populated (Zillow, Redfin, etc.). In describing each room, we like to list the floor covering (hardwood, tile, etc.) plus things like the view out the window, coved ceiling, ceiling fan, walk-in closet(s), access to deck or patio, fireplace (gas or wood), en suite bathroom, wainscoting, and more. Sellers deserve no less.

Room dimensions and descriptions help to sell a home, so we owe it to our sellers to take advantage of that opportunity. It’s a shame that the majority of listing agents leave these non-mandatory fields blank.

Reader Comment on Last Week’s Article About Racism & Zoning

Your article was very interesting and timely as we must be reminded of our country’s systemic racist policies that contribute to the discord we experience today. I have a couple of other examples.

First, the FHA was the driver for much of the single family homes constructed in suburbia during the ’50s and ’60s. Its underwriting policies in the early days, mandated that “the neighborhood be homogeneous (seg-regated), with that homogeneity preferably assured through racist restrictive covenants, for which the FHA helpfully supplied forms,” according to Michael Carliner, Development of Federal Homeownership Policy, as quoted on page 96 of Concrete Economics by Cohen and DeLong in 2016 .

In addition, I’ve read, but cannot remember the source, that the VA lending policies were similar. As a consequence, black GIs returning home, could only get loans for properties located in black communities (inner city residences) and thus were not able to build up the equity in their homes like the white GIs who were able to buy new homes on the large lots in suburbia.

This “homogenous neighborhood” requirement in federal lending practices prevented the mixing of the races in modern America, contributing to the racial divide we experience to this day. —Michael Nosler

Real Estate Magazine Names Jim Smith a Real Estate “Influencer”

RISMedia, the national real estate news service which publishes Real Estate magazine, has named Golden Real Estate broker/owner Jim Smith as a 2021 “Real Estate Newsmaker” in the category of “Influencer.” It’s in recognition of him publishing this real estate column in multiple newspapers for nearly two decades. Click here to view the RISMedia web page.

“I’m honored to receive this recognition for my work seeking to educate both the general public and my colleagues about important news and developments in this industry which has been so good to me over the past 19 years,” Smith said.

We Can All Learn From Studying Racism’s Role in the Evolution of Local Zoning

No one can deny that racism has played a role in housing, as it has in virtually every aspect of society since the founding of our country. Like me, however, I bet you’ll learn some things you didn’t know from this study of racism in zoning written by my friend, Don Cameron. While this study is of the City of Golden, it would be fair to say that it reflects the evolution of zoning throughout the country. Click here for Don’s full report with artwork, photos and footnotes.

A History of Golden Zoning

Golden Colorado circa 2020 has zoning that is best described as Euclidean, named after a court case in Euclid, Ohio. Euclidean zoning prescribes various areas in town to have various uses by right, and other uses that can be obtained by special permit.

Prior to that court case in Ohio, it was not clear that the government had a role in regulating land use, and individual landowners could pretty much do what they wanted. But in 1922 the Supreme Court ruled that municipalities had the right to regulate land use.

Golden’s history of zoning was initially one of mutual agreement between the town’s settlers and the city in laying out streets, creating easements for streets and utilities, but generally leaving land development to the individual owners. This sort of planning resulted in building on some lots that don’t meet current lot minimums, a variety of housing types and a mix of commercial and residential uses in some areas.

From 1954 onward, though, this mix of uses did not fit neatly into the districts that were created. Because of the mix of use types that already existed, some areas were zoned as commercial even though they had a large proportion of housing that was built as single family homes.

Other areas were zoned for higher density in anticipation of growth that in some cases still has not come. Later developments were zoned planned use development (PUD), with uses identified that were specified on the plats and may have included mixed use.

In parallel to this history there were also restrictive housing policies that were in place in Jefferson County, including Golden. Specifically, redlining was a practice put in place at the federal level by the Home Owners Loan Corporation in 1938.

Redlining defined areas where federally backed loans could and could not be obtained. Golden itself had no redlining map, but let’s look at Golden’s history.

From the 1880s and into the 1920s property owners could pretty much do what they wanted. There were no explicit covenants preventing Blacks or non-Caucasians from buying or building in Golden. However, the 1920s also saw our government filled with KKK members and sympathizers and a reduction in Black (Negro at the time) residents in Jefferson County.

While Blacks in the county and city were few in number in the 1920s, nonetheless the KKK burned crosses on South Table Mountain’s Castle Rock formation above where Coors’ tourist parking lot is now.

There was a measurable racist element in the population, and there was not a welcoming environment. The plats were already written, and the residential land use defined, so there was little “need” to be racist in zoning because there was no demand (that is, few black people lived in Golden).

This “lack of need for racist/exclusionary zoning” changed, however, in the late 1930s amid the boom leading up to World War II.

Again, land use at the time was mostly protecting individual property rights. While the Supreme Court had ruled that cities could control land use, there was a very hands-off approach to this. So the “law” was on the side of homeowners.

Starting in the 1920s and into the 1940s it was common for people in many areas of Jefferson County to say they’d only sell their property to those of the Caucasian or other non-Negro races.

The courts backed up this right because they were protecting homeowners’ use of their land and had no civic duty to prevent this discrimination. Blacks were excluded from being shown properties in these restrictive areas, and. if they tried to purchase them, they might have it taken away soon after.

In 1942 there was the case of a Black family trying to build a new development and victory garden near what is now Boyd Street. The family said they would put in all the utilities required to government code. Still, white citizens of Golden protested. The following article appeared in the October 22, 1942, edition of the Golden Transcript:

Citizens Protest to City Council

A large number of citizens appeared before the city council Wednesday evening, and stated that a group of colored people had taken possession of the land recently purchased by them east of the Clark’s Garden addition, within the city limits of Golden, and were apparently staking out some proposed building sites. These citizens protested to the city council the starting of a colored settlement in Golden.

It was pointed out in the meeting that the sale of the property had been approved by the county court on September 24, and that the purchase price for the 30-acre craft was $1,500, not including some legal and abstract of title cost…

The article went on to say that at the mayor’s direction, a citizen’s committee was formed to negotiate with the FHA to not allow this sale to go through and not fund it, claiming the cost of extending utilities would be burdensome. One of the citizens appointed to this committee was Casper Bussert.

Golden had few areas that were not platted, but when a new plat was put in for the Sunshine Park Addition in 1944, by this same Casper Bussert, he added a deed restriction limiting ownership to Caucasians.

While this would seem to violate the 14th Amendment, the Supreme Court had already ruled that the 14th Amendment was about states not discriminating based on race, but was silent on individuals’ ability to discriminate. However, in the late 1940s the NAACP and others started pushing back on these covenants using the following argument: If a black person were to buy a restricted property and then the state were to enforce the covenant, that would constitute a violation of the 14th Amendment, which eliminated slavery and gave Blacks the right to buy and own property.

In 1948 the Supreme Court ruled that these types of covenants were no longer enforceable. Almost immediately, and certainly by 1950 one sees a complete change to the covenants created in Golden and surrounding areas. Rather than explicitly restricting an area to whites, there were new restrictions excluding those without access to capital. Enter classism.

Even though redlining was no longer permitted, there were (and are) limits on Blacks’ ability to get loans on favorable terms. Some loans, for example, were interest only for the term of the loan, so one did not gain any equity until the loan term ended. Failure to make even one payment could result in “owners” losing their homes with no equity.

When new restrictions were put in place by the FHA, they targeted people without access to loans. An additional clause that targeted families with kids was the Nuisance Clause, which limited activities based on the opinion of the architectural control committee.

R1 (single-family) zoning, as laid out in the city code, shows a direct evolution from racist covenants to restrictive covenants to exclusionary zoning, all of which kept housing out of the hands of Blacks.

The legacy of this is the noticeable and persistent wealth gap in this country. Blacks, by being excluded from homeownership, have not been able to build wealth, escape blighted areas, or enjoy integrated schools. Because school funding is typically based on property taxes, school districts are self-segregated by wealth and thereby race.

In summary, Golden’s history follows the narrative of the country with respect to race. Land planning and zoning may be silent on race, but the effect of both planning and zoning continues to exhibit, in its end result, the heritage of systemic racism, to the detriment of Blacks in particular.

Email response received from Michael Nosler:

Jim, as always, your article was very interesting and timely as we must be reminded of our country’s systemic racist policies that contribute to the discord we experience today. I have a couple of other examples. First, the FHA was the driver for much of the single family homes constructed in suburbia during the 50s and 60s. It’s underwriting policies in the early days, mandated that “the neighborhood be homogeneous (segregated), with that homogeneity preferably assured through racist restrictive covenants, for which the FHA helpfully supplied forms.” Michael Carliner, Development of Federal Homeownership Policy, Housing Policy Debate9,no.2(1998)at 299-321. As quoted in Concrete Economics by Cohen and DeLong 2016 at p.96. In addition, I’ve read, but cannot remember the source, that the VA lending policies were similar. As a consequence, black GIs returning home, could only get loans for properties located in black communities(inner city residences) and thus were not able to build up the equity in their homes like the white GIs who were able to buy new homes on the large lots in suburbia.

This “homogenous neighborhood” requirement in federal lending practices prevented the mixing of the races in modern America, contributing to the racial divide we experience to this day.