Buyers' Slice Realty

While there is some current outrage over this in the discussion (in Colorado real estate circles and beyond) around Obamacare (from which this “3.8%” number is based), the truth is that it does not kick in on ALL home sales. Only those for which the profit or gain exceeds the current capital gains threshold of $250K per person (or $500K if filing jointly). Bummer for some home owners? No question. But most people won’t be paying a tax on the sale of their home of course. Doesn’t make it right…I’m just clarifying the facts. 🙂

The Acceptance Deadline is the time your offer is expires…so you’d think Sellers and listing agents would be really interested in responding in a timely manner, right? Maybe. I cannot tell you how many real estate agents do not response by the Acceptance Deadline, and just hope that the Buyer will be willing to later modify the Acceptance Deadline if the Seller is interested in pursuing the offer. Part of the reason lately (in hot markets like Superior, Bouder, Broomfield, Highlands Ranch, Golden, Denver, and Louisville) is that one offer will attract another (second) offer and they “need” more time to consider both. Risky business if you ask me, but that’s the way how Colorado real estate has been working out there lately.

More and more analyst and real estate professionals seem to be suggesting the US real estate market may have finally hit bottom. Nineteen out of Twenty the largest metro areas in the US showed modest prices increases (average 0.7%) from March to April of this year according to the S&P/Case-Shiller index that tracks single family homes…and Denver was on that list. It was a small improvement, but any improvement or push into positive territory is meaningful! As reported anecdotally from areas like Boulder, Broomfield, Louisville, and Superior, the market has been red hot with eager buyers lately…which will presumably translate to rising prices in these markets. I suspect the same thing is happening in other parts of the Denver real estate market like Highlands Ranch and Golden too.

Short answer: great.

As long as you identify the fact that you would like to work with a real estate broker early on, it is my experience that home builders in Colorado are happy to pay a commission to the buyer broker.    I have had deals at various stages in Stapleton, Lowry, Steel Ranch, and others…and while most seem to require that I register with them (on what they often call a “REALTOR® Registration” form), the requirements/expectations of me after that are pretty limited…allowing me to consider a healthy buyer rebate in new construction deals around the Front Range!

This last week or so has proved to be a very tough market all of the sudden for those trying to buy a home in the Denver area. I lost a Boulder property that I was trying to acquire for myself at the last minute to another buyer, and the REALTOR® that was selling the home said that was the fourth time he had multiple bidders on a listing in as many days! I then had a buyer who was looking in Louisville and Superior for a nice single family home as part of their relocation to Colorado lose an offer to another buyer. They turned their attention to Broomfield only to find that there are multiple buyers interested in…and making offers on….properties in their price range out there too. Good news: things really seem to be moving. Bad news: things really seem to be moving!

I got a call last week from someone who wanted a transaction broker to help them with a home in Broomfield, Superior, or Louisville. When I said I was impressed they used the term “transaction broker” (because most people don’t know it), she responded she sure as heck did not want a full service real estate agent that stood to make $12,000 for a home she was going to find.

OK…sounds like a joke…but it isn’t:

In a recent Gallup poll of trustworthiness, real estate agent ranked higher than lawyers!  (A reversal of fortune from a 2008 survey.)

No wonder some Denver area home buyers are looking for transaction brokers like me (who can play a more minimal role in the process…empowering the home buyer.)

The National Association of Realtors trade group reported this week that April home sales of existing homes were up 3.4% versus March. The median home price was also up 10.1% to $177,400 versus a year ago! This is no surprise in Boulder where everyone is talking about how fast good homes in the low to average price range are being snapped up very quickly…many times in situations where there were multiple offers were made.

I talked to a Denver area home buyer today who is looking more in the southwest swatch between Highlands Ranch and Golden and he said he’s not so much interested in the commission rebate I offer, but in working with “a REALTOR® who won’t be annoying or abrupt, and who will just let him do his own search.” No problemo. (But I think he’ll like that buyer rebate too.)

While most are agreeing that it is a fantastic time to buy a home, economist Gary Schilling is warning that home prices could drop another 20%!!! Of course, he is speaking of the US average. If you ask any Colorado REALTOR® you will likely here a different outlook for what is happening in Golden, Broomfield, Boulder, or any number of Denver area real estate markets. Real estate is an inherently local proposition, and the supply and demand equation with real estate around Denver can be very different than what is happening elsewhere, so if you are looking to buy a home soon, ask your local real estate agent for the data.