Setting the Stage

Staging a property to sell is more than adding a few candles and throw pillows.  It's about maximizing a home's best features and minimizing the less than ideal.  This can involve such things as rearranging furniture to improve traffic flow, harmonizing a room's color palette, removing clutter and distracting items, and guiding potential buyers to see themselves living in the home.

Vacant properties are a wonderful opportunity to bring personality to a clean canvas.  Sometimes, sellers are hesitant to spend money renting furnishings for staging as they aren't sure they will see a return.  However, there is plenty of evidence that staged homes sell faster, and the sooner homes go under contract, the more likely they are to get a higher price.  Properly sized and placed furniture can reveal just how large a room is, and what the best use for a space might be.  Randomly placed plants or chairs add nothing and might even detract from the space.

From a recent showing in Denver - an example of what not to do...

Staging doesn't always have to cost big money, though.  As part of my listing services, I provide a professional stager early in the process to consult with the seller.  We take a tour of the property together, making a list of items that should be repaired or improved, and our recommendations for priority.  The seller can then decide which items to tackle before listing the property.  Paying attention to items before listing usually gets the seller more money - if a seller identifies an item needing attention, he can repair it.  If a buyer finds it during inspection, they may want it replaced instead.

Cleaning, decluttering and painting to make the best first impression possible is important.  If a buyer sees a lot of repair items - even small ones - they will begin to mentally subtract those costs from their offer price.  Additionally, they may begin to worry that there are other items they can't see that have been neglected, possibly discouraging them from making an offer at all.

The final stage before listing involves the stager coming back to stage the property for photographs and showings.  She will use some of the furnishings that are already there and add to them with other things she feels are in keeping with the character of that particular home.  A well-staged home can make buyers want the lifestyle represented and make an emotional connection with the property.  Remember - the way a home looks while you are living in it is often much different from the way it should look when it is up for sale, just like how your children look when they come back from the park and when you ready them for family portraits.

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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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Can a 1031 Exchange Help You?

For a lot of people, their home is their most valuable asset.  The long-term appreciation and equity in the property is likely to be their biggest investment, so the IRS allows sellers to exclude $250,000 in gains from the sale of their primary residence from taxes; $500,000 for a couple filing jointly.

For investors who use their properties to generate revenue, this exclusion is not available.  However, the IRS provides another avenue to defer the tax liability for a time by reinvesting the sale proceeds into another like-kind property, called a Section 1031 Exchange.  Business entities can also use this vehicle to protect assets.

The simplest exchange is a simultaneous swap of one property for another.  If the exchange does not happen at the same time, a qualified third party will hold the funds from the sale of the first property until they can be used toward the purchase of another.  Several rules govern this process.

First, the seller must identify, in writing, one to three replacement properties within 45 days of the closing of the sale.  All three properties may be purchased in exchange, or they can be treated as back-up options should one of them become unavailable after identification.  The purchase of the replacement property must be completed within 180 days of the initial sale.

There are other rules related to the value of the replacement homes identified and the percentage of the value that is actually acquired in the final sale.  In addition, if there is still additional money left after the purchase of the replacement property, that gain, or "boot," could be subject to taxation.  It is highly advisable to hire an exchange service to account for all funds and handle this sometimes complex transaction.  These experienced professionals can also help you make long-terms plans regarding the best way to handle or even reduce the deferred tax liability.  If you would like a referral, don't hesitate to contact me.

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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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Colorado Ranks 6th Best for the "New Economy"

With a score of 81.4 out of 100, the Information Technology and Innovation Foundation (ITIF) has ranked Colorado in the top 10 states in the nation for the "new economy." ITIF, a nonprofit think tank, defines the new economy as, "marked by globalization, technological innovation and entrepreneurial development."

ITIF used 25 indicators in 5 categories to asses a state's ability to adapt to more a technological culture and encourage development.  The categories are knowledge jobs, globalization, economic dynamism, digital economy and innovation capacity.  The Foundation indicated that states are better focusing on high quality innovation than incentive packages to bring new companies in.  Policy makers need to support measures that prioritize retaining high-skilled workers, access to education and laboratories, and research and development.

Colorado came in 6th behind Massachusetts (#1), Delaware, California, Washington and Maryland.  Colorado's strengths were listed as workforce education, initial public offerings and high-tech jobs.  If you're looking to move here, I've helped many families get to know Colorado and find a great house in the Denver and Boulder areas.  Through listing alerts, local news articles and property previews, I'd be happy to help you with your search.

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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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Enough to Make a Cat Laugh

Some of my coworkers and I joke about writing real estate memoirs.  From walking in on the naked couple, to the underground grow room, to the headless Barbie doll in the window, there are plenty of situations that keep us on our toes when we enter a home.  As a REALTOR®, we have a great deal of responsibility to the sellers we represent and the houses we list and show.  We're always conscious of making sure the property is secure and taken care of, although some days we're more on top of it than others.

My buyers and I were greeted one afternoon by a curious cat in the front hallway.  He stared at us for a few seconds, and then bolted into another room as cats are wont to do.  He continued to keep tabs on us as we walked through the house, never getting too close.  When we went into the garage, he ran through our legs and bolted out a doggie door into the yard.  He seemed to know where he was going, but just to be sure I called the showing service.

"Yes, hi.  I'm showing the house at 123 Main St.  Are there any specific instructions regarding the cat?

"Hold on a moment, please."  Pause.  "Yes, there are.  Don't let him out."

"Uh...okay.  Thanks."

As my buyers finished checking out the rest of the home, I searched for the cat in the yard, and again in the garage.  When I couldn't find him, I called the showing service back to ask them to call the listing agent and let her know what we had done.

We continued on to view the rest of the properties lined up for that afternoon, and concluded our tour about an hour later.  I said goodbye to my clients and headed back to the home, hoping maybe the cat was wandering nearby.  As luck would have it, I found him sleeping on the back deck.  He wasn't too happy with my arrival, and fought me a little bit when I tried to get him back into the house, but I was just relieved.

On my way back to the office, I called the showing service again to let them know that the cat had been found and was safely back in the home.  It was a few blocks before I questioned myself, "Wait...what color was that cat?"

I could not remember what color cat had greeted us when we entered the home in the first place, and suddenly I was not at all sure that I had put the correct cat back in this owner's house.  What if I had picked up some stray from their yard and thrown it into their front hallway?  A nice surprise to come home to after a long day at work.  Once again, I called the showing service to notify the agent and suggest that maybe she visit the home before her seller got there.

Shortly after, the listing agent on the property called me back.  She also happened to be the owner, and when she got the last message I had left she busted out laughing.  She mentioned that a stray had been hanging around the house the past few days, and that it was as likely as not that I had gotten the wrong cat.  But luckily, she found her cat safe and sound when she got home - and it was alone.

image: eviltomthai

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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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ENERGY STAR Explained

By now, most people are familiar with the little, blue ENERGY STAR logo.  The ENERGY STAR Program was established by the Environmental Protection Agency in 1992, under the authority of the Clean Air Act.  It's a voluntary program to "identify and promote energy-efficient products and buildings in order to reduce energy consumption, improve energy security, and reduce pollution through voluntary labeling of or other forms of communication about products and buildings that meet the highest energy efficiency standards."

That's great - but what does that mean for the average consumer or home buyer?  It means that someone else has already done the legwork for you in identifying the most efficient products and manufacturers.  Visit the ENERGY STAR Certified Products page for an easy way to look up the specific item you are researching.  These items use less energy to operate, reducing utility bills and usually enhancing performance.

Homes can also receive the ENERGY STAR qualification.  These homes use less energy for heating, cooling and water heating - about 20% less.  Comfort and indoor air quality are improved, as well as the reduction of fossil fuels burning which decreases outdoor air pollution.  Homes that are awarded the ENERGY STAR qualification must meet minimum standards in 5 areas:

• Efficient insulation system
• High performance windows
• Tight construction and ducts
• Efficient heating and cooling equipment
• ENERGY STAR appliances and lighting

Obviously, then, the presence of ENERGY STAR appliances alone in a home does not necessarily mean that the home itself is ENERGY STAR qualified.  In addition, energy-efficiency standards have changed over the past 22 years; an old ENERGY STAR appliance may no longer meet the current minimum standards to receive the qualification.  The ENERGY STAR qualification is awarded for a specific year and must be requalified yearly to maintain the certification.  Find home builders who are committed to building ENERGY STAR homes HERE.

If your home does not have the ENERGY STAR qualification, there are still things you can do to improve it's performance.  As you replace appliances, windows, insulation, etc., consider ENERGY STAR products that will reduce utility bills over time.  Certain product models also perform better due to their design; for instance, refrigerators with bottom freezers and through-the-door water and ice dispensers are more efficient.  Chest freezers use less energy than upright freezers.  Front-loading washing machines are more energy efficient, use less detergent and get clothes cleaner.  Appliances that don't receive ENERGY STAR ratings?  Clothes dryers, microwaves, ovens and ranges, solar products (other than water heaters), and space heaters.

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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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Are You in Your Forever Home?

I sometimes ask this question of clients to give, "someday we'd like to move..." some real thought.  There certainly are times in life when moving just isn't in the cards, but it's also true that, like having a baby, it's almost never an ideal time.  Regardless of what's going on in people's personal lives, the market keeps moving and changing, and it's important to really think through the scenarios.

If you have a home to sell, the current low inventory will offer you an opportunity to get the price you want.  Homes that are well-priced and even moderately updated are going under contract within days.  And while the lack of inventory can affect your replacement home search, interest rates are still historically low and offer maximum purchasing power.  The chart below shows how much your options can be affected by waiting until next year to make a move:

	Purchase Price (with 20% down)	30-Year Fixed Rate	Monthly Principal and Interest	Monthly Cost to Wait	Cost Over Life of Loan
Purchase Now	$450,000	4.5% (4.523% APR)	$1,824
Wait (rates rise)	$450,000	5.125% (5.274% APR)	$1,988	$164/mo	$59,040

Or, looked at another way, if you wanted to keep your monthly payment the same while the interest rate rises, your purchase price would be reduced to only $418,758.  That $30,000 jump can mean significant sacrifices to your wish-list.  It's also going to reduce the buyer pool for the house you are trying to sell.

 

Staufer Team has a great reputation in the Louisville/Superior area, and often our agents have clients who are waiting for the right opportunity before they become serious about their move.  There are several homeowners in Louisville who would sell their home if only they could find another replacement nearby.  If this describes you, please let me know.  Our team may be able to match you up with another seller or buyer just waiting for 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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The Music of the Street Faire

 

Every summer, the Louisville Street Faire attracts guests from all over the area to enjoy food, drink, vendors and most of all - great music.  This year's lineup is setting a new bar:

June 13 - BoDeans

June 20 - Terrance Simien and the Zydeco Experience

June 27 - March Fourth Marching Band

July 11 - Los Lobos

July 18 - Young Dubliners

July 25 - Iguanas

August 1 - Chuck Prophet & the Mission Express

August 8 - Samantha Fish

August 15 - Subdudes

The event runs from 5-10pm at 824 Front Street, with live music from 6:30-9:30pm.  Come out and join us!

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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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