5 Things You Should Know About Relocating to Denver
November 29th, 2011 categories: Relocation Tips
If you’re moving into the Mile High City, there are a few things you may find helpful as you pull up stakes and head to the Rocky Mountains.
- Denver isn’t actually in the mountains. During college, one of my friends from home commented, “Wow! You must be in good shape to ride your bike in Denver!” It took a minute to realize she was under the impression I was riding over mountain passes. I explained that Denver is on the Plains, and suggested she come visit – maybe branch out from Santa Barbara.
- We do have traffic, but it’s not as bad as Chicago or LA. It will be worse during rush hour and definitely bad when the snow is heavy. Then the sun comes out and melts it all away (and creates our wicked pot holes.) If you want to keep your drive a certain time frame, use Map Quest or Google Maps. They’re both pretty accurate, but won’t account for rush hour or snow.
- We have great public schools, great private schools, and our population is among the most educated in the nation. For school information go to the Great Schools website as a start. Always visit the school and meet the Principal and staff. Don’t choose based on web sites. That’s just a good place to begin. Like looking for houses on the internet. You’ll still need to visit, see it, smell it and look around.
- We name a lot of places “Cherry.” There is “Cherry Creek” (meaning Cherry Creek North and the Cherry Creek Shopping Center,) Cherry Creek Schools (down south by the Cherry Creek Reservoir,) Cherry Hills and finally there’s actually a Cherry Creek, with the Cherry Creek bike path along it that connects Cherry Creek Reservoir and Cherry Creek North. Confused? Come out to Denver and I’ll show you around.
- Westword and 5280 Magazines will fill you in on local flavor. 5280 is known for publishing annual editions on the Best Doctors, Best Neighborhoods and Best Restaurants. Westword is irreverent and edgy and publishes interesting exposes on Denver misadventures. We used to wait expectantly every spring for the annual summer concert edition.
There is so much more to know about Denver, but this gives you a start. Don’t be afraid to explore, we have many terrific neighborhoods and there’s something for everyone, except for a beach. Well, maybe you could call the dirt at edge of Cherry Creek Reservoir a beach… never mind.
Gretchen Faber, LifeStyle Denver author, is a local Denver real estate broker. Contact Gretchen for information on Denver area real estate.
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Mother-In-Law Suites Gaining Favor
November 18th, 2011 categories: Market Trends
While showing homes this year to several of my clients, one new trend seemed to stand out.
Several people mentioned a need to have an accessible second master suite for their parents. Bloomberg News confirmed this trend today in their online post “Homebuilders Target In-Laws, Dogs as Extended Families Grow.” We joke about our 20-somethings moving home and whether we could live with our mothers-in-law, but the reality is that many families are consolidating and cohabiting.
That’s a great trend for families. Maybe not so good for unique household formations, which drive real estate sales. Some people look at it as a temporary solution to a financial situation, but others view it as supportive and an opportunity for bonding or free childcare.
Regardless, this trend hasn’t gone unnoticed by home builders. They are sensitive to market demands, and building to suit the needs of buyers.
Gretchen Faber, LifeStyle Denver author, is a local Denver real estate broker who has sold many new construction homes over the years. Contact Gretchen for information on local builders.
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Why You Want Your Broker to Show You Properties
November 9th, 2011 categories: Market Trends, Relocation Tips
A few days ago I had a call from a buyer who wanted to see properties in Cherry Creek North. This seems to be a trend lately. Call the listing agent directly.
He found the homes on my web site, www.GretchensDenver.com, and gave me a list of what he wanted to see, which weren’t actually my listings. I asked if he was working with a broker. At first he said, “no.” Then he said, “well, my wife is, but the broker isn’t here this weekend.”
While I would love to grab new buyers, “double-end” a listing if it’s my listing and get another closing in before the end of the year, I also thought it best to warn him about why he should be represented, and what “procuring cause” is.
If you’re a buyer and you’re not real estate savvy or an attorney, then you should have your very own broker representing your best interests. If you have a broker who goes away for the weekend, then find out who is covering for him. If you call the listing agent directly, your broker will not earn a commission. Or you could be in jeopardy of paying your broker’s commission.
The same goes for builder properties and FSBO’s (for sale by owner.) Let your broker call them and set the appointment.
There’s more to real estate than checking out nice houses, and you need your broker involved to help you wend your way through complicated contracts, inspection issues and the appraisal. Not to mention the closing, settlement statements and other documents.
So when you find a property you like on the internet, call or email me. Or click the “contact” button at the top - if you don’t already have a broker representing you. If you do, have your broker call.
Thanks, Gretchen Faber
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Denver Colorado Real Estate Statistics | March 2011
April 20th, 2011 categories: Market Trends
Real Estate is like a box of chocolates. Sometimes you get nuts.
- The nuts have been our foreclosures, our short sales, our underwriting issues and our tough appraisals.
Real Estate is like a roller coaster. Sometimes you go up, and then you fall fast. It takes longer to go up than come down.
- Interestingly, last year’s tax credit made our first half of the year incredibly busy. Then third quarter we fell off a cliff. It was so quiet! We all went to the pool.
- Prices have fallen across the nation since 2008. In some areas, they fell fast. Now, they’ll take longer to creep back up. Appreciation won’t be crazy fast like it was. It will be slower, more rational. This is the new normal.
Real Estate is like babies and teenagers.
- If you own your home, you need to baby it. Feed it with updates to keep it current. Clothe it in great curb appeal, lovely landscaping, an occasional fresh coat of paint and new carpet.
- Some days owning a house is like having teenagers. Temperamental (notice the word “mental” is in there?) Keep your mechanicals, appliances and roof in good working condition so you don’t have to use your mattress money to bail them out of jail.
Whatever your real estate is like, Denver real estate is always interesting. And the homes for sale are the bargain of a decade right now, with prices on the rise again.
In March 2010, the tax credit was just about to end. Buyers were in a tizzy to get their new homes under contract by the deadline. This was driving the market and the main price-point was the lower end, or starter homes.
This year, you can see in the chart that prices are moving back up. We don’t have much appreciation yet, if at all. We have a more normalized market, with the higher end finally coming back. In 2008-2010, jumbo loans were nearly impossible to get. Luxury homes were purchased with cash, so fewer luxury homes were selling. This resulted in significant price reductions by Sellers who wanted to compete and sell. Now that jumbo lending is back, rates are low and prices are low – the high-end is off of life support.
So Real Estate is like life. Ups and downs, ins and outs and always interesting. If you’re interested in searching for a Denver home or listing your fine property, call on Gretchen Faber and The Kentwood Company for assistance. Our company was ranked the #1 residential real estate company in the United States for per-agent sales volume in 2009, with 2010 results posted soon. We’re a dedicated team of professionals, looking forward to helping you find your next dream home.
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A New Generation Of Homebuyers is on the Scene! Part 2
November 14th, 2010 categories: Real Estate News
In Friday’s post, I was discussing whether Generation Y will value home ownership the way Baby Boomers have.
There was much discussion at the recent Realtor’s convention about this topic. In the airport, waiting to fly home to Denver, a group of us were discussing it again. A little while after we settled in to wait for the flight, I felt a tap on my shoulder and an, “excuse me…”
Rachel Krill, a Realtor from Yuma, Arizona said, “I couldn’t help but listen to your conversation. I’m 23 and I sell a lot of homes to Gen Y’ers!” Rachel was (and is) an impressive young woman. She exuded a confidence and business savvy that is rare for someone without the benefit of years’ of experience and hard knocks. She is enthusiastic about her chosen profession, and I can tell she’ll be a force to be reckoned with.
Rachel wrote me a guest post to reflect her sentiments about home ownership:
A few days ago, I was sitting in the airport, and overheard a few Realtors talking about the real estate market and trends. I was leaving New Orleans after the National Association of Realtors conference. There was one conversation that my ears could not turn away from. The agents were talking about the real estate trend for Generation Y!
I am a Gen Y Realtor (23 years old), and have been for five years, so I was intrigued by this conversation! They were talking about a blog by Tinus Swanepoel (son of a well known real estate speaker and trend writer, and a Gen Y’er himself.) In his blog he says there is a current market shift taking place, as Baby Boomers desire to sell off their real estate, but Gen Y’ers are not interested in buying (at least not in the same numbers and at a later age,) thus creating a stand off. He states they (Gen Y’ers) are “too into” their fast paced life style, taking their focus away from home ownership. He says home ownership simply is not on the top of their list.
I disagree with the premise! I am a Gen Y’er who owns 2 houses and I sell a majority of homes to Gen Y’ers (40-50 percent). I have a few reasons why I believe Generation Y’ers will not abandon home ownership:
1. Generation Y does care about wealth and making money. As much as we are into our smart phones, $300 jeans, Sushi, and fast paced lifestyle, our end desire is to have money to pay for this lifestyle. Buying a home is the fastest way to create and build wealth. When a Gen Y’er is educated about the benefits of being a homeowner, including building their asset portfolios, most of them are on board immediately with asking how do I do it?!
2. No matter whom you are, Baby Boomer or Gen Y’er, you need a place to lay your head. With home prices down and interest rates at a record low, owning a home is very cost effective. When a Gen Y’er is shown the cost of owning vs. renting, in some states it is much more beneficial to own, or very close to the same price as renting. When they see the comparisons they jump on board with the home ownership philosophy.
3. Because Gen Y’ers live this fast paced lifestyle, our idea of home ownership is not that of our parents. Please don’t compare us! We don’t dream of the plot of land with a home and the white picket fence, but it doesn’t mean we are abandoning home ownership all together. Our idea in owning a home is how much money we can make on it and how fast, while still having a place to lay our heads. We see it more as an investment ~ rather then a dream.
I am not lumping all Gen Y’ers in this category; however, from my experience most Gen Y’ers are interested in owning a home, but their reasons for purchasing a home, and their emotions involved in doing so, differ dramatically from that of the Baby Boomers. I speak to young people in our local schools and talk to them about owning vs. renting. 90% of them say they WANT to own a home one day…and soon!
Yes, times are changing, life is fast paced, Gen Y’ers seem to be glued to their gadgets, but they still want to own homes. Maybe for different reasons, but I do not believe Generation Y will abandon home ownership! And I, for one, will work my hardest to make sure it doesn’t happen!
So there you have it. Differing opinions. It will be interesting to see how this plays out in the future. I’m signing off now because I need to go into the MLS and begin a search for Denver homes for my newest clients. I received a web inquiry yesterday from a 27 year-old woman. She and her fiancee are ready to buy their first home. They need a single family house with a yard for their two dogs.
Gretchen Faber is a real estate broker in Denver, Colorado. She sells homes in all price ranges and to any generation.
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Top 7 Reasons to Buy A Home Now
September 6th, 2010 categories: Market Trends, Real Estate News
Have you considered buying a home this year? Did you toy with the idea of making that purchase while the tax credits were still in play?
If you missed out on the credits, did you get back on the sidelines? You may want to reconsider jumping in. After all, there are more homes coming on the market every day and you just may find the perfect house tomorrow.
Here are 7 reasons why buying today may be in your best interest and why home ownership is still important:
1. Home owners build communities - In the recently released report The Homeownership Gap in Current Issues in Economics and Finance, the Federal Reserve Bank of NY states that, “Because owners have a financial interest in their property, they have incentives to take measures that will maintain or increase the value of that property. Some of these measures—such as fixing a leaky roof—are closely related to the house itself. Others, such as investing resources in the betterment of the neighborhood and the community, have broader beneficial effects on the local area, creating what economists call “positive externalities.”
2. We still have a mortgage interest deduction in the U.S. - Many countries around the globe do not allow their citizens to take a tax deduction on any interest they may be paying on a home. In the U. S. we have a huge opportunity and benefit by the MID policy. It has increased buyers’ ability to leverage their purchase and to often pay less than renting. As long as buyers are responsibly leveraging, this is a policy that supports homeownership, and buyers should consider their potential deduction when making a decision between buying and renting.
3. Owning a home is an investment in family - In the 2010 National Housing Survey, Fannie Mae asked renters why they would consider purchasing a home. To renters, owning a home meant a safe place to live, a good place to raise children and would give them control of their own space. We’ve owned the same home since our boys started Kindergarten 11 years ago. I can’t imagine a better environment than the neighborhood where we live. The boys have grown up surrounded by trusted friends and neighbors.
4. It can be cheaper to own - In Denver, rental vacancy rates are low. Therefore, the rental rates that landlords can command are increasing. With today’s low rates, renting in many neighborhoods would be more expensive than buying.
5. Rates are low ~ Unbelievably low - When we bought our first home in 1988 we assumed a 9 1/2 % mortgage. We were absolutely thrilled with the rate and the 30 year term. Today, you can find a 30 year loan in the 3 to 4% range, and even 15 year mortgages are in the 4’s. You can buy much more house than you could three years ago when rates were 6.25%. And prices have dropped dramatically since then too! If this isn’t the time to buy, I’m not sure when is. If you aren’t buying, you should consider refinancing (as long as you haven’t used up the equity with liens or lost value to the point where you can’t refinance.)
6. Real Estate is still a great investment - If you’re in your home for the long term, your investment will likely out perform the stock market. Mike Mandel, the former chief economist at Business Week and currently at The Wharton School said, “We’ve just had the biggest boom and bust in real history in recent history. Nevertheless, real estate has still greatly outperformed the stock market over the past ten years.”
7. Buying a home gives you roots - most people want a sense of community, permanence and belonging. My brother is the proverbial rolling stone (I’ll probably never sell him a home,) but most of us want to be a part of something. To contribute to our neighbors in a way that short-term housing solutions just can’t foster. Bankrate.com recently surveyed homeowners, and despite the recent rash of foreclosures, short sales and the ongoing (but stabilizing) housing crisis those homeowners said they did not regret their decision to purchase their home.
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Earnest Money Requirements in Denver
October 4th, 2009 categories: Relocation Tips
Relocating buyers often ask how much earnest money they’ll need when they make an offer on Denver real estate.
My answer? “It depends.”
Some brokers and sellers request 3% some request 10%. Earnest money requests/requirements are entered in the MLS, so your Buyer Agent can tell you what the sellers have requested. 3% is more the norm for mid-priced homes, 10% is extremely high. However, for high end homes, closer to 10% isn’t too unusual.
What the sellers request and what the buyers provide are not always the same amount. When you prepare an offer for a property, consider how motivated you are, how strong you want to appear as buyers and how much money you want to risk.
Keep in mind that your earnest money is not at risk if you legitimately terminate the contract on inspection, appraisal or loan conditions. Make sure your broker and lender are keeping tabs on those dates.
Colorado is a very easy state to contract for purchase. We have state-mandated contracts that all real estate brokers are required to use. We close properties “at the table” in the offices of a title company (not in escrow.)
Earnest money is meant to show good faith on the buyer’s part. Plan to deposit enough to show you’re serious, but not more than you could stand to lose in the event of a default.
Looking to buy in Denver? www.GretchensDenver.com gives you access to nearly all listed properties plus the ability to map them! Bookmark the site today!
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