Backup phone number

If you are having trouble getting in touch with me, please call Carin at 720.335.3155.

Thank you.

Are you landlord material?

One-fifth of all home sales came available through foreclosure.

If it’s not surprising to you that nationwide home values have been falling as rents rise, you may already be considering what it would be like to go into the landlord game.

Here in Boulder County, CO, foreclosures are slowing to a trickle as rental units become scarce. Neighboring Weld County is catching up with other Front Range counties with rents soaring – sometimes 30 percent in a market that is impacted by overflow from Boulder and Larimer counties as well as the booming energy sector.

So if you have looked at these developments and have considered purchasing an income producing property, there is some basic information that might interest you.

Being a landlord is not the same experience as being a homeowner. You might contact a property management firm to get the rundown on everything you need to know. Here is a short list.

The pros:

Passive income. There was a time when capital gains were almost automatic. You need to consult a real estate agent for some guidance on what is selling well in a particular area. Growing equity probably should not be your primary objective.

Tax advantages. These you should discuss with your accountant.

Cons:

You need time to be a landlord if you don’t have someone to cover things like broken water pipes.

Along with all of the usual pitfalls of homeownership, you have to be aware of the regulations laws and regulations. And note that if the property is in an HOA, that adds another level of complexity.

If you’re going to manage your unit yourself, be prepared for a little weirdness. The stories from landlords are all over the map. Tenants sometimes believe they can pass off responsibility onto an occupant who wasn’t on the lease. You may have to go to court to recover the cost of furnishings and carpet destroyed by an occupant who was not supposed to be living there. The tenant will be surprised when you come after them instead of their boyfriend and his dog. The upshot is, you need to figure on the possibility of recovering what insurance and the deposit don’t cover.

Rental properties require a different policy under a rental homeowner’s policy known as a “dwelling fire policy”.  Under the dwelling fire policy, normal wear and tear damage is not covered, but wanton vandalism is.  However, in order to claim vandalism, homeowners must file a police report and press charges against the offender.

Always screen tenants. They should apply to rent your property and a background check is one of the chores you should do in addition to checking for employment.

I’m not a lawyer and I do not give legal advice, but you may want to have a lawyer look over the lease you use. You would be surprised by how many leases are missing important elements that can save the landlord time and money.

Some obvious and not-so-obvious tips

Yahoo put a crack team on finding common turn-offs for buyers. They found 10 they ranked. You would be right in thinking that these are common sense guides. But these are good reminders and I added my own take.

A home seller is competing with a lot of foreclosures in this market. And, while the lenders have a reputation for not getting their inventory in good shape, that is not the case with a Fannie Mae/Freddie Mac foreclosure home. They have about 200,000 homes to sell and they’re spending $40 million to get those homes in better shape. I doubt they will look as good as the photo below. You want the home you have to sell to look this good.

Here is the “after” picture from http://www.meetmyuglybaby.com/page/8/

You can make a stunning statement for why someone should buy your home – in just this way.

_________________________________

I bet you already have done everything to make your home stunning.

Humor me for a moment. Put yourself in the buyer’s shoes. You have been looking for about a month and you’re trying to make up your mind if you should just resign yourself to fixing up a foreclosure home or buy the first good looking home you find (that meets your needs). You don’t want to give the buyer a reason to keep looking.

Here is Yahoo’s list of 10 biggest turn-offs – and my comments:

‎1. Dirt.

You’re tempted to use one of your teenager’s responses to this finding. Yes, dirt doesn’t show well. Your home probably is getting compliments when you have it show ready. But you still want to take a closer look.

Every surface should be spotless. Grout should look like it’s new. Windows and countertops should shine.

I’m not in total agreement on replacing carpet. I don’t reflexively recommend it. If your agent can tell the carpet is too worn, then you should consider offering a carpet allowance. Your Realtor may suggest this because many buyers will want to choose their own colors and grade of carpet. However, if you’re going to have your home staged, replacing carpet and painting should be in your budget.

‎2. Odors. Definitely address odors.

If you’re a smoker, you have your work cut out for you. You need to prime (with a product designed for addressing smoke) and paint the walls and ceiling. If you have the popcorn ceilings that were popular in days past, this can be addressed at the same time. The carpet and drapes likely need to be thrown out. Your Realtor will tell you that this is a tough one.

There are good cleaning products for pet odors, but you should inspect affected areas. If an odor persists after you had your floors treated, then you probably need the sub-flooring replaced. That is, the material under the carpet and tile may need replacing. You need to call in a professional.

There is no bigger turn-off than a smelly floor or a smelly bathroom. Replacing vinyl tile in a bathroom is one of the easier weekend projects. It’s inexpensive, too, if you do the work of ripping out the vinyl. There is even a handy tool for this. You might consider upgrading from vinyl.

3. Old fixtures. This is a mixed bag. For appliances, an allowance will do in some cases. You should discuss this with your Realtor. For instance, if your home has those cute strawberry fixtures on your cabinets that I saw in a home last month, you should replace them. I’m not saying they were unattractive. The point is people have different tastes and the point is to de-emphasize your tastes so the buyer can imagine themselves in your home. The kitchen and bathrooms often sell a home. If the kitchen is seriously outdated, you should consider the expense of upgrading.

4. Wallpaper. Yes. Remove it. It’s a weekend project for one room. Rent a steamer and go for it.

5. Popcorn acoustic ceilings. They were all the rage once. Not anymore.

‎6. Too many personal items. See my response for old fixtures. The objective is to de-emphasize that you lived in the home. Your home may be the most tastefully decorated home in two counties, but if there are pictures of your family on the walls … You’re working against yourself. Box the family photos and store them for your next home.

7. Snoopy sellers. Hire a Realtor and follow their advice. Agents want their clients to feel comfortable making comments about your home when they are there. If a seller is present, the buyer may hasten their tour.

8. Misrepresenting your home. Never a good idea. Take wide shots for photos with the lights on for interior shots. Take the most flattering shots of the exterior. Common sense is your guide, too. You should avoid taking photos of the neighbor’s RV in the background, if there is restricted RV parking in your neighborhood. In Longmont, a vehicle can be parked for 72 hours on the street.

• Any amount of clutter is going to be a distraction, including the ceramics collection.

9. Poor curb appeal. Your home’s exterior appearance is what invites people in. There are buyers who schedule appointments but drive off before ever leaving their vehicle. The same rules apply for outside. Remove clutter, make any needed repairs and trim the lawn.

10. Clutter. Any amount of clutter is going to be a distraction, including the ceramics collection. I like the rule of three. For bookshelves this means one-third empty, one-third for vases and one-third for books. Three counter-top appliances. Actually, you can go the extra mile on this, put these items away in a cabinet.

Your Realtor will share their thoughts on staging, too. You may want to consider hiring a professional staging service. Sure, there are still a lot of foreclosures on the market. This is all the more reason you want your home to look its best.

You want your home to stand out.

Win-win economy roars to life

Amy Hoak of Marketwatch writes that there is a bit more confidence this year. Others, too, have noticed what Realtors noticed months ago. There is a sudden and surprising strong interest in real estate right now.

The pace of existing housing sales were up 11.4 percent nationally in February.

Could it be a coincidence that the surge in housing was accompanied by announcement of a court settlement with five of the largest mortgage lenders? Bank of America, Wells Fargo, JP Morgan Chase, Ally Financial and Citibank all agreed to pay $25 billion to put the robo-signing debacle in the rear view mirror. Colorado is scheduled to get a share, too.

It’s like another stimulus for the economy. All that money will be applied to assisting homeowners on the verge of foreclosure. Homeowners who lost their homes unfairly will receive compensation.

Confidence has picked up noticeably as investors seemed in a rush to buy. Economists tell us that the cause for the near-collapse of the financial system was a single non-payment that set in motion a quickly spreading fire. A recovery works in a similar way. A sudden availability of money accompanied by the right news is enough to spark a rush on housing, which ignites a cascading upswing throughout the economy. The right news is that foreclosures at least for a moment will slow considerably.

Buyers showed up in January and the down market quickly turned into a contest for grabbing up low-end homes. When those clear out, investors and buyers will compete for higher priced homes. The situation became so acute in the Denver area, agents were asking other agents for open houses so they would have something to show. Realtors in Aurora and Longmont are reporting multiple offers for the homes they are selling.

The news has the attention of would-be sellers, too. Sellers have been sitting on the sidelines waiting for the market to turn. What we have appears to be the start. Trulia reports that 63 percent of the Longmont market is foreclosure sales. I’m not reading this as weakness. We noticed the surge in foreclosures last year, which appears to have anticipated the stronger buying interest. If buying keeps up, foreclosures will clear and prices will begin moving up.

New brochure for a new market

Early signs are this will be a good year for real estate in Boulder County.

This week, I changed my brochure. This is what I am loading on my Twitter sites. Yes, I have more than one. I find I don’t have to annoy friends and colleagues with all of what I post. I can put new listings and listings I like on Suzrealestate, Nedrunning and Bouldersue. Sometimes I just have too much to post. The news these days is overwhelming. You sometimes feel like your drinking from a fire hose.

With a huge online presence, it will take a little while for me to get all of the brochures changed out. I will be going over to Pinterest, Tumblr and Facebook, too. Then there is Zillow and Trulia and on and on …

The point is the market here has changed. The under $250,000 part of the home sales market is moving. I looked today at all the listings that have gone active and it is amazing. That reminds me. If anyone is interested in a 2 bed/2 bath condo, I’ve got one coming soon. My other listing is active and I expect more than a few more are in the pipeline. Sellers are moving property. I know the question on your mind buyers. Yes, there are more bank-owned properties on the market right now. Trulia says there are about 460 foreclosures right now.

If you’re wondering if I list homes that are more expensive. I do. In fact, most of my experience is selling homes in the 300s all the way to 1 million. These listings will come later as the  market gets into full swing. Check here again from time to time.

Enter the expert

You can’t make bricks without straw. It’s an old saying. It means you can’t do something correctly without the right materials. That’s true. It is also true that you need a licensed contractor to perform work like a basement finish. At the very least, it should be someone who is competent enough for their work to pass an electrical inspection. Most contractors say basement finishes are not a do-it-yourself job.

No one really knows how many of those do-it-yourself projects are lurking out there. But someone is buying all those hammers and trowels at Home Depot, Ace and Lowe’s. I like all three of those stores and they have helpful people ready to assist with your questions.

It is at this point, I sigh.

Unfortunately, despite all the available help, some people just shouldn’t swing a hammer. You know them. Their friends have to suppress laughter when they see the finished project. If they could see through walls, they might shriek.
Even worse, there are unlicensed contractors who do work so poorly they shouldn’t be allowed in your house.

Holmes

Botched basement finishes and poorly remodeled bathrooms are a danger. Substandard work is the most common cause for home fires, the insurance industry says. My advice is do not buy property that has had additional work that was done without a permit. The guy on the left has a cable program called Holmes on Homes. Great education and it’s free except for the cable connection. Holmes on Homes appears on HGTV.

When you go shopping for a bargain home this spring, make sure that home is, in fact, a bargain.

Make sure you have the home inspected. Many Realtors like myself have a background working for builders. We can spot do-it-yourself work from outer space. If you have a good eye, you can spot shoddy and substandard work. If you know a basement was finished without permit, you might want to just keep looking for a home.

Tip No. 1: Hot spots. You can have the electrical work inspected for hot spots. In a recent show, Holmes pulled down drywall on a house that had been wired haphazardly. Junctions were made every three feet. Wiring should be strung through holes drilled by the electrician, not chipped out of the side of the stud.

Tip No. 2: Look for water damage usually appearing as stains on walls and under pipes. If there is water present, then move on.

mold

Tip No. 3: Look for mold spots. They can be small dots and much larger. You often can smell them before you see them.

There are more red flags you should look for and Holmes often features work performed to correct these. For instance water should flow away from the house.

You don’t have to be an expert. Expert help is available for hire. And, it pays to have inspectors look at the roof, electrical work and furnaces. One of the easiest things that can be done is to check to see if a building permit was pulled for a basement finish or any work involving electrical installation. A good home inspector will do this. That visit or call to the city offices might be the most important thing you do in your home search.

And, for those who want a basement finished, you can find a list of licensed contractors on file with the city.

Spring is in the air!

Nothing says spring like new blooms, showers, glorious sun and … home buyers.

This year, the buyers jumped the gun. They’ve been ringing the phone, peeking at our social sites and touring our listings.

This year definitely is different. For one thing, we head into the buying season with less inventory. In fact, her in Boulder County, Colorado inventory might be the smallest we’ve seen in a decade or more. Sales and inventory are off 30 percent.

Why aren’t there more sales? Market prices sagged to the point that sellers just haven’t been motivated. Sellers have gotten beaten up to the point that many would-be sellers have not ventured into the marketplace. There is something that can be done. Prices will have to rise, and we’re already hearing reports of double-digit increases in the states hit hardest by foreclosures.

Builders have taken notice. Sentiment is the highest we’ve seen in years. In my neighborhood, Richmond American Homes took over the Shadow Grass development and is building there.

A question on Trulia about new housing in Boulder went unanswered. I’m sure a custom builder can find a lot there to build on. Call my friends at Daystar IV of Longmont. The Millers have been building here for decades because they build a great home. But for buyers who prefer existing homes, you have to compete with other buyers for many homes in Boulder County. It has been frustrating for some of my buyers.

The seller is still hibernating. What will get them to wake up? Higher prices.

And for those who are waiting for more foreclosures, there is word that more foreclosures are on the way. Remember though, just because something is sold at steep discount, it might not be a bargain. Consult a Realtor. We can give you a general overview and answer specific questions about the Boulder County market.

Staging tip: Turn up the lights!

The words are imortalized in theater: Turn up the lights!

It is called staging because showcasing your home is like your home taking the stage. You want to spotlight the great features of your home. You want to find perfect places for pendants and sconces. Invite people in to take a look. Remove anything that might distract. And add some magic.

Tips:

• If your home is not well lit, it will not sparkle. Before your home goes on the market, you might organize a weekend project to do something to get more light on a fireplace or a featured area. You can highlight countertops, nooks and even staircases. Show off the great features of your home with great light.
• If you have fixtures that are out of date, replacing fixtures is a comparitively inexpensive way to bring out the best in a home.
• Designers and stagers lavish money on professional photography. If having a pro photograph your home is not in the budget, take some cues from the people who do design and staging for a living. Go look at their web sites.

Search the Internet for designs. It is unrealistic to expect many people to achieve the same subtlety, contrast and balance a professional photographer can achieve. But you would be amazed at what improvement you can make with some light touches. Study the photos you find in your search. What were the designer and photographer thinking when they placed the lighting.

When it comes to staging, light is a tool that brings forward the features you want to emphasize. Think about how a tour will proceed through your home. Then add light for impact. Remember, this is a show!

Invite a friend for coffee and this light chore.Have your friend hold a lamp at different locations in the room. Of course, you should make sure the lamp is safe. It should have a shade, too. You want to try the light on any granite countertops you might have installed. If you do good job with the new lights, you might be tempted not to sell.

This is your home’s time to shine!

Can a recovery be far off?

Are real estate prices headed down?

That has been the question for the past four years.

Buyers and sellers have to ask themselves how the market fits with your long-range plans. California must be happy about events that include an election year settlement for the foreclosure scandal that will funnel most of the money to the golden state, a government program to sell Fannie Mae properties and get them rented and a bonus from the Facebook IPO, which will create a few millionaires. The money the millionaires spend won’t be available for a few years and usually it is the bottom of the market that pushes at the top – not vice versa.

Here in Boulder County, Colorado, it looks like recovery. Inventory is short. Activity is picking up. More people are visiting Zillow.

That’s all nice, you say. So, you ask again, are real estate prices headed down?

That is a question on a lot of minds, and let’s say the pundits are still cautious. Every bit of good news is accompanied by a reminder that there are still foreclosures to come.

For the individual, buyers and sellers should remember that a home is long-term purchase. Your concern should be what is the market going to do over the long run. The world did not end. Real estate here never fell like it did in California, Arizona, Florida and elsewhere, even amid record foreclosures here. Longmont, Firestone, Frederick and other communities may have felt the worst of it.

Important to any analysis is to recall that people generally want to be homeowners. People are not responding to surveys saying they have given up on the dream. Their ability to buy the dream hit a big speed bump in 2007. We can, though, count on one thing not changing: An overwhelming majority of American voters support the homeowner tax deduction. The National Association of Home Builders sponsored the survey. See the link below. In survey after survey, American adults say they want to own. Sure, the economy has to get better for those dreams to come true. Looking around, there is a tendency to be optimistic. There are even a handful of people who think housing is seriously unprepared for a correction that could see home prices rise dramatically.

You need to ask:

• What is a realistic plan for you?
• How is your business doing?
• Is your company still laying off?

We all would like to consult a crystal ball. We can only point to the analysis that is largely based on the past. Where there seems to be an agreement is that the markets around the nation have been putting in a floor on prices in recent months. Prices may still slip some. No one is say the economy is healthy – yet. This is why many of us are suggesting homeowners take the long view. Are we closer to a recovery or in recovery? That seems to be the question these days.

Prices increased

NAHB survey

Including the kitchen sink in your sell strategy

If you’re like me, the first place I head for when I tour a home is the kitchen. If the kitchen doesn’t work for me, then there is no sense in touring the rest of the place.

I’m looking for how the kitchen works with the rest of the house. Is there a breakfast nook and a dining room somewhere close. Homes I’ve purchased had kitchens next to great rooms. I wanted to be able to watch the kids at play or watching the tube when I was working in the kitchen. Smart designers also put the laundry close by so I could hear it. A bathroom was to be found somewhere on that floor, too.

When I entertained, I wanted an island where guests could sit and nosh on snacks.

The kitchen has always been the center of our world. That’s not unusual. Most buyers would say the same thing.

So, if you’re planning on selling this year, you might want to give that kitchen some attention. I don’t recommend installing granite counters and wood floors. You might consider providing an allowance, so the next owner can do more with this place that had so much going on there.

If the appliances are more than 10 years old, you have a tough decision. You might make that allowance for appliances, too.

If you have great wood floors, that is a big plus. White cabinets are all the rage right now. (Yes, that was hint. Get out the paint brush.)