Coming Up For Air

Louisville is 17.3%.  Boulder is 11.2%  These are the increases in the median sales price for the first quarter of 2014 over the same time period in 2013, according to the Boulder Area REALTORS® Association.  The S&P/Case Shiller Denver Home Price Index is reporting a year-over year increase of 9.13% in residential real estate prices.

Property values are recovering, more quickly in some markets than others.  This is greatly affecting about a third of the nation's homeowners who are currently in the process of foreclosure - they are discovering that they may no longer be underwater.

During the first quarter of 2013, 26% of all homeowners were seriously underwater (debt equal to or more than 25% of their home's value).  This year, that number is down to 17%.  According to RealtyTrac, that equals almost 2 million homeowners.  That positive equity may help some of them avoid foreclosure with a refinance or short sale.  The Denver metro area is a population where perhaps half of the homeowners in foreclosure may actually have gained equity again.

Many homeowners may not realize their good fortune, some of them having vacated their properties already.  If you'd like to find out if your home's appreciation is significant, please contact me.  My team of experts will get you the right information and help you navigate the process of getting back on the shore.

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I would love to help you with your real estate journey. 

Please contact me at 303-917-7143 or robbin@stauferteam.com

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FOR SALE: 411 Smith Circle, Erie

 

Brand new listing in Grandview!  Close to downtown Erie and I-25, this spacious townhouse backs to a common area, is close to walking paths and two parks, and has mountain views!

Freshly painted, custom drapes, 2 bedrooms up with 2 full baths plus a half bath off of the kitchen.  Listing price is $180,000.

Come out and visit me at the Open House Saturday, April 5 from 2-4pm.  Inventory is low - this unit won't last long! 

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I would love to help you with your real estate journey. 

Please contact me at 303-917-7143 or robbin@stauferteam.com

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HERS® Ratings Explained

The HERS® Index, or Home Energy Rating System, is how a home's energy efficiency is measured.  The Residential Energy Services Network (RESNET) is responsible for creating and maintaining training and national standards for ratings and industry professionals.  Obtaining a HERS rating can help you determine if you need to make changes to improve your home's energy efficiency, and a good rating can help you get more money when you resell.

As in the game of golf, the lower the number, the better the performance.  A standard new home is given a score of 100.  Each point decrease corresponds to a 1% reduction in energy consumption.  For instance, a home that receives a score of 70 would be 30% more efficient than a new home.  A typical resale home usually scores around 130, or 30% less energy efficient than a new home.

To calculate a home's HERS Score, a certified RESNET Rater looks at many factors, including exterior walls, ceilings and roofs, floors, attics and crawlspaces, windows and doors, HVAC systems and ductwork.  He will conduct several tests to look for issues such as air leaks and the effectiveness of insulation, and compares the data to a "reference home" - a designed model home the same size and shape of your home.

If you'd like to have your home rated, you can find an accredited HERS Provider HERE.

If you're looking at financing energy performance improvements either for your existing home or one you are considering purchasing, energy mortgages can help finance the upgrades using the monthly energy savings.  Tax credits for certain home improvements also exist that can provide significant savings on your annual return.  Need to speak to a mortgage lender or accountant to find the best approach for your situation?  Give me a call, I know a guy.

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I would love to help you with your real estate journey. 

Please contact me at 303-917-7143 or robbin@stauferteam.com

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The Lowdown on DELO

DELO, or Downtown East Louisville, is an urban infill project on the site of an old concrete batch plant, adjacent to the train tracks between Griffith and South Streets.

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244 townhouses and condos are planned within the development, as well as 15,000 sqft of commercial and office space.  The atmosphere is intended to be open and balanced, with pedestrians, bicycles, cars, retailers, residents and renters all sharing the same space with walkability to downtown's restaurants and shops.

The site was originally going to include a FasTracks train station, which may remain as part of the final plan in the hopes that future decades may still bring the commuter rail through DELO.

The developers promise to feature green and/or LEED construction standards and recycled materials whenever possible.  The preliminary plans have been submitted to the city, who could give final approval as early as April for a May start.

Residents of Louisville have voiced concerns over the impact DELO and other potential developments will have on the city, specifically on enrollment at Louisville Elementary and Middle School.  Discussion over short- and long-term options for rapid growth included continued restrictions on open enrollment, portable classrooms and even boundary changes.  For more specifics, click HERE for recent City Council meeting summaries and minutes.

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I would love to help you with your real estate journey. 

Please contact me at 303-917-7143 or robbin@stauferteam.com

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To Renovate or Not To Renovate?

One of the issues I am running into with my Louisville clients who want to upgrade but stay in the city is that they have nowhere to go - the low inventory keeping them from finding a replacement home is also keeping them from listing their own house and perpetuating - yes, the low inventory.  I am not above knocking on stranger's doors and asking them if they are willing to sell, and have created several letter-writing campaigns to ferret out dormant sellers.

At some point in the house search, potential buyers have to decide if it's worth it to keep going or stay where they are.  I always advise my clients to seriously consider their best alternative to the desired solution - if you can't find a new place, what are you really willing to live with instead?  I also give this advice when we are knee-deep in negotiations.  It's easy to get emotional and upset with the other side, sometimes digging into a position.  But if you're alternatives are worse than the offer on the table, it's important to revisit your goals and not cut off your nose to spite your face.

One solution to the low inventory is renovating a current property.  This can make your home meet your family's needs better, even temporarily, and also add sweat equity for when you can finally make that move.  Potential sellers always want to know which improvements will give the most bang for their buck - what makes their home more marketable, and which renovations actually recoup the most for their investment?

Check online or design books for current color trends.

At the inexpensive end, paint can make the biggest impact for the least cost.  While it won't add dollars to the price of the home, it will make it more attractive to buyers.  Replacing hardware on cabinets and doors is another small investment that refreshes the space and gives the impression that the house has been maintained and updated.  Spending a few bucks on the front landscaping is generally a good idea, as well.  Improving the curb appeal doesn't have to be expensive and is important for getting people in the door - they won't buy if they don't go in.

For bigger projects, the answer will depend to some degree on the specifics of the particular house - the location, the price range, the market trends.  For instance, if you have an older home that only has one bathroom, figuring out how to construct even another half bath is a smart investment; many people won't even bother to look at homes with only one bath.  But if you already have three bathrooms, adding a 5-piece luxury master bath may not be the best place to put your bucks.  

An expensive upgrade may be overkill
when a gas insert will do the trick.

There are some guidelines to help you decide which projects are worth tackling.  For a midrange home in the Denver metro area, the renovations that will give you the biggest return for your money are kitchen remodels, basement remodels, deck additions, window replacements and garage door replacements.  Generally speaking, these improvements will recoup 70% or more of their initial investment upon resale, not counting any energy savings that might be realized through replacing low-efficiency materials and appliances with high-efficiency ones.  Again, you need to do your research (or talk to your Realtor® who already has) to determine how far to take the renovation.  Do buyers in your neighborhood expect to see cherrywood floors, triple-glazed windows or media rooms?  You may choose to do these upgrades anyway because you like them, but it's good to know what to expect from the market.

Wood shake shingles are a red flag for buyers,
and some cities are already banning them.

Bathroom remodels, roof and siding replacement, garage additions and front door replacements fall into the next tier, usually recouping 55% or more.  Another consideration when deciding on your renovation priorities - is the current situation functional and adequate or broken and obsolete?  In other words, if the roof is at the end of it's life and buyers are going to request a new one anyway, you might as well get it done before it becomes an inspection and negotiation item.

Projects that are probably best avoided?  Anything too unique or custom that won't appeal to a larger audience.  Wine cellars and hot tubs may be an integral part of your lifestyle, but just as many people will rip them out as keep them when they move in.  Also, large room additions like master suites or family rooms generally prove too costly to pursue.  However, if the homes around you are popping the top and getting top-dollar for it, your home may be an exception to this rule of thumb.  If you'd like a professional contractor to give you estimates and advice on the projects you're considering, give me a shout; I've got several trustworthy recommendations I can give you.

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I would love to help you with your real estate journey. 

Please contact me at 303-917-7143 or robbin@stauferteam.com

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Geothermal Explained

Heating and cooling expenses are the largest part of most homeowners' budgets.  High-efficiency methods such as solar roof tiles and tankless water heaters will continue to become more commonplace, and buyers who get familiar with the newest technologies will be able to select the best performing systems and homes.

One technology that is spreading is geothermal heating and cooling.  In most parts of the world, the top 10 feet of the Earth's surface maintains a constant temperature between 50° and 60° F.  A geothermal system circulates water through a continuous loop of pipes with wells buried below the frost line.  A heat exchanger extracts the thermal energy to heat or cool the home through conventional ducts.  In the summer, the heat removed from the indoor air can also be used to heat water for the home.  Industrial systems can access heat from deeper underground and power turbines to generate electricity.

Geothermal radiant heat floor being installed

While it's obviously easier to install geothermal in new construction, retrofits to existing heating systems can be done.  The easiest system to adapt is hydro-air - replace the boiler with a heat pump and the rest of the system just needs minor adjustments.  Electric baseboard heat is more difficult, especially if there is no central air conditioning.  In this case, new ductwork will also have to be installed throughout the home.  Installing the underground pipes is not difficult, and while your grass will need some time to recover, the system will not interfere with trees or any other plants.

The US Department of Energy estimates that about 50,000 geothermal systems are installed in the US each year, and most of those are in the western states, Alaska and Hawaii.  The average savings over a conventional air conditioning system result in a return on investment in about 5 years.  For more information on geothermal technology, visit the National Renewable Energy Laboratory website.

I found a ball park savings calculator here, and after digging out some old utility bills I went through the couple dozen questions about my home and yearly energy usage.  While it's only an estimate, it seems that it would take about 30 years for me to recoup my investment.  Keep in mind, though, that I have a small home and we've worked to keep our energy consumption down.  It's also cooled by evaporative cooling, and there isn't a field to enter that factor, so I don't know how much of an effect that would have.  There is a 30% federal tax credit for installing one of these systems, however, which may not be around forever, so it might be worthwhile for you to take a few minutes with the calculator to see if geothermal would benefit your home.

image: VIUDeepBay

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I would love to help you with your real estate journey. 

Please contact me at 303-917-7143 or robbin@stauferteam.com

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Dutch Creek Update

 

Last week my sellers closed on 208 S Jefferson Avenue in Louisville.  With a selling price of $350,000 and no seller concessions, it was the highest dollar per square foot amount for Dutch Creek going back to at least 2008, likely farther.  (This excepts ranches, as the above- and below-ground square footage are valued differently than a 2-story or bilevel without a basement.)

Leading the Pack

Between 7 and 10 homes have sold per year in Dutch Creek since 2009 - that's out of 290 total homes in the subdivision.  Inventory in general is expected to continue to be low in 2014, so sellers in the area can expect to sell quickly and likely get multiple offers.

Why the dearth of listings?  There's several reasons, none of which are expected to change much over the next couple of years.  For one, new construction starts decreased during the recession, and with the population continuing to increase we are looking at a national shortfall of 14 million housing units over the next decade!  

Locally, the flooding last fall paused some sales and potential listings in Boulder and surrounding areas.  Houses had to be rescued and repaired and, in a few cases, taken off the market for an extended period of time.  Additionally, while home prices are starting to rise again, there are still some sellers who are waiting for their home's value to fully recover before they sell.

Another factor that is increasing demand and creating a sellers' market are the "boomerang" buyers.  These are people that lost their homes during the recession and have been working on repairing their credit and saving money and are now re-entering the market to purchase.  Louisville is a popular city with it's charming downtown area and great school system, and interested buyers are hovering over their favorite neighborhoods, anticipating new spring listings.  If you've been thinking about selling your home, contact me for a free market evaluation and neighborhood sales.  Preparing yourself with local historical data (not to mention this Real Estate Professional's expertise) will enable you to pick the best strategy to prepare your home for sale and negotiate with hungry buyers.

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I would love to help you with your real estate journey. 

Please contact me at 303-917-7143 or robbin@stauferteam.com

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