It is not too early to start setting time aside on that holiday calendar and plan for a couple of events. Just click on this images and it will expand to a full page list of things-to-do around town over the next month or so. Enjoy the season and take some time to remember those things for which we are all so thankful!
Denver, Littleton, Georgetown and Evergreen are all rolling out the red carpet for the Holiday Season 2010! Enjoy!!
Recently, we were asked by a client with a significant inventory problem in Denver, “Other than pricing which is a given, what would be the next best marketing idea to garner greater attention for their properties?” We responded with the hypothesis, “By offering a higher co-op to the buyer’s broker, the net result would be positive.”
They asked us to prove it. So, we went into the market as the report below illustrates and provided the data. Then we completed a four property test offering a 4% co-op. The data and the test confirmed virtually the same results.
Let me demonstrate how:
The Denver metro Brokers normal co-ops range from 2.8% to 3.0% (As Reported in our Metrolist Managed System). By lowering gross commissions, it forces listing brokers to lower their co-op. The attached co-op analysis demonstrates the impact of reduced co-op commissions and the negative impact on that asset.
Attached are various co-op analyses and graph from our Denver Metro MLS. Please note how the listing’s performance is positively or negatively impacted in “direct” proportion to the “co-op commissions”. The analysis was based on a data set of over 24,000 single family homes that sold within the last 12 months in the Denver Metro Area regardless of price.
The following is a summary of the Denver Metro MLS co-op performance on the accompanying chart:
1% to 2.7% CO-OP:
Days on Market: 123
Average Price to Original Listed Price: 88.35%
2.8% to 3.0% CO-OP:
Days on Market: 103
Average Price to Original Listed Price: 90.85%
3.1% to 5% CO-OP:
Days on Market: 79
Average Price to Original Listed Price: 97.22%
The Affect of Coop Rates on Sales Price and Marketing Time
“The proof is in the pudding!”
Land Appreciates, Improvements Depreciate
With so many people in the stands, on the sidelines or just staying home, do you understand how many cheerleaders we 
will need to get things moving again. I’d hate to be considered just a cheerleader, but in economic times like we have had, it’s tough to sit on the sidelines and just watch.
Have you been going down to the corner restaurant as often? It probably needs a Cheerleader! Have you skipped a doctor or dentist appointment? They probably need a cheerleader! Have you gone later or skipped a haircut? They probably need a cheerleader! Does the housekeeper come twice a month vs. once a week? She probably needs a cheerleader! You can imagine or maybe you’ve have first hand experience with these or others. Maybe you need a cheerleader!
I lived through a Denver real estate recession in the 1980s. It almost buried me! This time around, it seems much more like a real estate depression. In my mind, this is far worse than the ’80s for Denver. Last time it was interest rates inhibiting demand and creative financing ballooning at a time when rates had doubled. It was much more timing based as opposed to artificially created. It was different, but it was the same. People and businesses were still backed into the corner. They had to make tough decisions. We needed a cheerleader then as we do now.
What about Denver Real Estate? We are cheering buyers and sellers along on a daily basis. It goes without saying, we are in the real estate business. But, that’s a good thing; Being a cheerleader when you believe what you’re cheering about.
I was showing a house to a potential buyer today. When I asked if they had a house to sell, they answered, “No, we don’t need to sell our house to move up, we may just rent it.” I looked at them, smiled and asked if they new what a great position they were in? They looked back in disbelief. I became their cheerleader!
Calmly, I showed them facts, figures and trend lines that demonstrated the advantage of where they were in the market cycle. I demonstrated why their timing could not have been better. I became the market’s cheerleader is just a few minutes, I realized how much confidence I possess in this market.
History of County Foreclosures – Mid Year 2010
Why did I feel that way? (See Chart Above) Because, history repeats itself over and over again. We have had commodity cycles before, and even a few in the housing market. Basically, what happened over the last 30+ years we “commoditized” the residential market. When I say “we”, I mean the powers in Washington, the powers in our state and believe it or not, the powers in our own hometowns artificially inflated values with low and no down payment programs. When a market is fueled by buyers with “no skin in the game”, the lack of vesting can only lead to problems long term. That being said, I’m not sure we can limit this trend in the future, but we do know, “skin in the game” stabilizes markets; History proves this hypothesis.
I thought this was too good for it to just be back in 2008.
via MyTownCryer
“Membership at most golf and country clubs begins with a high entry fee and substantial monthly dues. We believe the Canongate concept provides an attractive alternative. The Canongate concept gives members private club privileges for a modest entry fee and low monthly dues offering incredible value. Canongate is also known for its unique reciprocity privilege that allows members to play all the courses in the portfolio, conveniently located near each other. It’s like joining multiple private clubs for the price of one. Plus, all Canongate memberships include access for the entire family.”
Can you believe this? Here’s the deal, a $1,500 entry fee, a $179 monthly fee, two clubs right here and 30 additional clubs in Atlanta and Houston! Blackstone and Black Bear Golf Clubs offer great Southeast Denver Suburban locations.
The online description and images of the communities and club facilities can be reached by clicking here.
I am happy to introduce you to new the home builders in both areas, and I can show you the resale choices that exist nearby. As Warren would say, “be greedy”!
Good Hands?
I’ve been a home owner since 1977. That Palace was $33,000 back in the day. 10% Down giving me a PITI of $315/month, I felt like a king! I drove past it the other day. It made me start thinking. I’ve owned and lived in 7 homes, three with my bride. What was it that kept me in the market through “thick and thin”?
I said to myself, “I bet it would be easy to come up with my 10 Reasons for Homeownership”. Here I go:
1. Always Knowing Where Home Is.
2. Being Part of a Community.
3. Knowing My Neighbors.
4. Making It My Own.
5. Backyard BBQs With Neighbors.
6. Knowing My Mail-person.
7. Mowing The Yard.
8. Planting A Tree.
9. Sitting On The Front Porch Feeling A Sense Of Pride!
10. Paying It Off!!
Now, a lot of homeowners will read this. What makes you stay in the market through thick and thin?
Nestled in the most northeastern reaches of Colorado‘s Black Forest just south of Parker is Colorado’s most successful custom home community, The Timbers. In the developer’s words: “The sights… ..the sounds… ..the serenity of woodland home sites… Just south of Denver, in Douglas County, 30 of Colorado’s most prominent home builders are creating one-of-a-kind custom masterpieces at Denver’s top selling custom home community, the Timbers at the Pinery. The unique design and craftsmanship of these homes are accentuated by extraordinary home sites featuring spectacular views, breathtaking vistas and thousands of towering ponderosa pine trees, giving residents a sense of privacy and seclusion rarely found in today’s busy world.”
Just a few blocks away, however, you can enjoy the Pinery Country Club with all the recreational outlets a suburban family could desire. If the Pinery Country Club is not enough, nearby are Colorado Golf Club and Pradera Country Club. More than anything, living in The Timbers allows it’s residents the ability to walk right out their front or back doors straight into a rural setting complete with numerous species of wildlife still living off the land just as they have for years.
Access to suburban employment is easy and 15 to 20 minutes away. Working in the Denver Central Business District is still possible at twice that. Parker, just 3-5 miles away offers any and all shopping opportunities with a cozy little vintage core with enough life to make it a destination.
Typical homes in the Timbers currently range from under $600K to over $2M. To tour one currently for sale, click here. 9159 Scenic Pine Drive is currently listed at just over $1M.
If you are considering a Denver Suburb, you need not look any further than Parker, CO. Within Parker, for the lifestyle described above, you need look only to The Timbers, and to enjoy the best custom home value in The Timbers, look no further than 9159 Scenic Pine Drive Parker, CO 80134.
Harvard Practice Fields
The Holy Trinity of any good amateur sporting event began gathering in and around Boston on Friday. Teams, parents and friends from as far as CA and as close as Harvard, the unsuspecting host campus.
At the US Team level of Women’s Lacrosse, “Fall-ball” keeps the dust at bay for most, but there is always the BUZZ! Who will travel with the U-19s to Germany this summer? Which elite player will call it quits? Which coach will blowup? Which parent clustered in the stands will have the best story? You get the idea. It’s a relatively small close knit group only separated by miles but not ideals.
Many in the stands are watching that second generation player on the field. A very small contingent are the proud third generation observer, but women’s lacrosse is just now truly writing it’s history. Dedicated young women taking the sport to the next level one sacrifice at a time.
The world stage brings a new set of nuances, opponents and venues, but this weekend BC, BU and Harvard offer a “friendly confine” for the women to hone their skills, bond and catch up on the latest of Lady Lax.
A long tough “two-a-day” Saturday closed in on a great crowd of Harvard Homeys vs. The US Women’s Elite Team in a newly completed “stadium” for just lacrosse and soccer. The cool crisp Cambridge night reminded everyone that fall is upon us!
The Harvard women clearly wanted to show well against America’s Best, but it was not to be. The US Team slowly piled on the score board until it was clearly a USA Victory!
Sunday brought a field full of future hopefuls. The US Women shared all they had with youth and high school girls all morning. An informative and healthfully good time was had by all!
Then the US Women took the field with segregated squads of 15 each against BC & BU. The games were full of energy and emotion, but once again, the US women demonstrated why they are the best in the world, and will have no true challengers until 2013 at the next World Cup.
On the flight home, the reality set in. These young women can’t go pro. It is strictly for the love of the game. Focused for years, achieving team and individual greatness through high school and then with their respective university teams their last gasp in the game is an amateur status on a World Cup Team. The purity of it is so refreshing. Their only glory is the love of the game!
Homeowners are in good hands...
It’s true, Homeownership is a Gateway Drug! As home ownership relates to a lifestyle choice, it is clearly a commodity that 70% of American‘s on the street aspire too. As a drug, the idea of homeownership causes these aspiring individuals and families to:
This homeownership idea is not such a bad thing! It has been said that homeownership in Nazi Germany dropped from our current levels of 60-70% to a low of 33% by the time Hitler was in charge. This may sound extreme, but responsible government policy that encourages homeownership is deeply rooted.
Currently, state and federal benefits include but are not limited to:
For the most part, this has been responsible public policy. It is well defines and clearly proven that crime rates and public school performance are lower and superior respectively. Citizens worldwide aspire to homeownership. Where we average between 65-70%, around the world, rates run as high as 80-90%. Italy ranks the highest on a worldwide ratio.
According to the Department of Commerce:
During the height of the housing bubble in 2004 the U.S. rate of homeownership soared to 69%. While Americans enjoyed record low interest rates and some of the most relaxed credit requirements; homeownership rates climbed to record highs.
The American Dream of becoming a homeowner seemed to come true for hundreds of thousands of wishful Americans and the possibilities seemed endless. Mortgage lenders seemed almost giddy at the opportunity to place wanting American into homes of their own. As we all know now it was this open-handed approach to lending that not only shattered the dreams of hundreds of thousands of Americans, it also caused the housing market to become saturated with foreclosures.
There is a fundamental difference between a dream and an entitlement. Dreaming of becoming a homeowner is just that, a dream. The American system of reward has always been that of hard work and sacrifice, and most of all a common sense approach to all things of importance. If any of those measuring sticks are removed front he equation there is no real possibility of true success.
Exactly, responsible public policy can enhance our communities. Correctly administered, homeownership policy can be medical relief. Handled irresponsibly, homeownership becomes a prolific gateway drug that damages our entire economy.
MyTownCryer 
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