I just got off a conference call with a real estate broker from Valencia, California where they are receiving multiple offers on properties, especially those priced below $500,000. Is this good news for Colorado real estate and especially Boulder real estate?
In the early 90’s when California was faced with earthquakes and riots, the Californians were anxious to move to Boulder, Colorado. In the last few years there have been many Californians with the desire to move to Boulder however we didn’t take them too seriously because it was impossible for them to sell their homes in California in order to relocate to Boulder, Colorado. However, now that their homes are selling in California lets hope that holds optimism for Boulder County Real Estate!
For years and years in the Boulder real estate market we always considered our personal residence an asset. An asset that would keep growing and growing, giving and giving. Unfortunately too many of us have used our homes in the United States as a credit card, never the intended purpose of a residential property. I ask my sellers many times when I go to visit them at their home – is this home truly an asset at this point or is it a liability to you? If you are no longer getting the benefit of the enjoyment of living in your property, if you cannot maintain the property and certainly if you cannot afford to make the payments on your property then the property is a liability, not an asset and should be sold.
You know how when you see a great movie or eat in a fabulous restaurant you just have to tell everyone about…well…this message is really more of a testimonial, endorsement.
I have always been a raving fan of McStain Homes during my 26 years selling real estate in Colorado. I have sold more McStain Homes than any other builder. This was not a plan, they were just great homes.
With so many Colorado builders going “belly-up”, many buyers are concerned about after closing warranties, which is a valid concern.
Well…here’s the story…I have a resale McStain Home listed. Now, McStain Homes have always been great with after closing service but this home is 8 years old!
A potential buyer raised some concerns about the construction. The sellers called McStain and within 24 hours the customer service rep for McStain was at the property acting like a superman coming to save the world!
He pulled workers off of jobs to make any repairs that might be a concern to this or any buyer for FREE! His comment was, “we want to help all McStain homes sell wherever!”
I have know this sort of service to be standard for McStain through the years, but, honestly we all wonder in these time when nearly everyone is cutting costs…will even the best need to reduce their standards? Maybe some, but not McStain. I took a few lessons from this…
I will work hard to have someone tell a story like this about my company. I was wise to sell so many McStain homes and I will continue in confidence to do just that for many years to come!
When the majority of homeowners start falling behind on their mortgage payments they become ostriches, in other words, they stick their heads in the sand and go into a state of denial. Soon it’s too late to do anything about it. There are many things that we can do to stall foreclosure and get people out with their credit relatively intact. If they owe more than their home might be able to sell for in the current real estate market then this is called a short sale.
We have done a number of these short sales here at the Bernardi Real Estate Group and this is the way that some homes, even in Boulder County, are being sold in the current real estate market. The most important thing in a short sale situation is that we receive an offer from a buyer because the bank will not even begin to negotiate on a short sale until we get an offer. Once the offer is received, we go to work and negotiate with the bank to forgive the current debt up to the amount of the sale. In fact, in most cases, with every short pay we have done this year we have seen that the bank has forgiven all of the debt of the difference between the sales price and the loan amount. They have forgiven what would normally be called short fall or a deficiency and in many cases they will forgive what is called the deficiency judgment. In fact, for every home in a short sale situation that we have sold, the bank has forgiven the deficiently judgment.
If your loan was originated before January 2008 then there is no tax consequence on the amount of the loan that is forgiven. Prior to the bill being enacted last spring by Congress, you were taxed on the difference of the amount forgiven by the loan company. My expert lenders have told me that if a homeowner does a deficiency judgment that their credit is then virtually repaired and they would be able to buy another home within 2 years. If they let the property go into foreclosure, it would be 7 years before they would be able to buy another home. My belief is that by helping families do short sales, I am helping our community and the neighborhoods in all these cities in Colorado that have been affected by foreclosures such as Erie, Lafayette, Longmont and even a few cases in Boulder and Niwot. I feel that in the cases when I’m able to help these homeowners that I’m also helping the communities to not further deteriorate into crisis.
Unfortunately, if the property goes into foreclosure it could sell for no more than 50 cents on the dollar. The pipes could break or the grass goes brown and these foreclosed homes become an eyesore in our community. I feel like I am doing the homeowner a big favor by helping them to salvage their credit as well as assisting them to move on in a dignified manner and by doing that we are also doing the right thing for our community. I believe that I am also helping our country by facilitating the absorption of the real estate inventory in Boulder Colorado to help expedite the end of our real estate recession. In addition, I’m helping our banks because they will receive more money than they would if the property went into foreclosure and this will in turn aid our country. Lastly, I’m helping the buyer because they are getting a great deal on a property that has not been vacant for 6 to 9 months.
If you are facing a foreclosure situation then please call us here at The Bernardi Real Estate Group because I can help.
Because I have been among the top real estate agents in the nation for over 20 years, I have the opportunity to network with many various agents from around the country. Because of this network, I stay pretty closely attuned to what is going on in luxury real estate markets in the rest of the country. So far, Boulder luxury real estate is pretty healthy compared to the rest of the United States. If you would say that the luxury real estate markets in the rest of the country are dying then you would say that in Boulder Colorado our luxury real estate market just has the flu. Good homes in good locations that are priced well are still selling in this real estate market. They have to be in good condition and buyers are pickier but we are still selling houses in this real estate market. In fact, in 2008 The Bernardi Real Estate Group sold 168 properties.
Around the country, real estate depreciation has taken a toll on many luxury real estate markets. Miami is seeing depreciation at about 1-2% a month, Las Vegas is depreciating up to 3% a month, Southern California is depreciating 1-2% a month and in Detroit some houses are selling for $8000 that were formerly sold for $100,000 because there are so many foreclosures in that real estate market.
So, once again, if you are buying or selling real estate in Boulder County then we are still in a relatively healthy real estate market compared to the rest of the United States.
Year after year real estate agents from all over the country call me to ask, “How do you do stay consistently the #1 agent in Boulder and Colorado?”
It makes me think, in fact, how do we do it? My first answer is that we work smarter. To be the #1 team year after year, formerly the #1 agent with ReMax, formerly the #1 agent with Century 21 in the country and to be in the top 10 in the country with Coldwell Banker year after year has not been an easy thing and it has required a great deal of focus and energy.
The most important thing that I have done is that I have built an incredible team around me. The difference between me and other agents is that I truly delegate different responsibilities to my team members and we specialize in every area of the transaction. Instead of me being out all day long with buyers and then coming back to the office to service my listings, I use my time wisely to drive sales. I spend my time trying to find buyers for listings, advertising my listings, answering my calls, servicing my listings so that they actually sell and negotiating the best price I can for my sellers. My buyers agents are out all the time with fully qualified buyers and relocation buyers and focusing their entire energy on servicing their buyers and helping to get our listings sold.
The 2nd thing that we do is we try to keep our atmosphere really positive. We don’t listen to the news and we are constantly reading new and different books to keep us motivated.
The 3rd thing that we do is that we practice and constantly hone our skills. We role play how to handle buyer calls and how to handle the various situations that come up as we sell real estate.
The 4th thing is that we market more than anyone else. Most real estate agents cut back on marketing during these hard times but in our office we believe that keeping our name and the exposure to our listings out there is of the upmost importance. If you live in the city of Boulder or close by we hope that you have heard of us.
The 5th thing that we do is that we operate as an aggressive sales team. We don’t wait for people to call us but instead we call them. We spend our day searching for people with whom we can share the great news of our fabulous listings. We don’t just sit around and wait.
The 6th thing that we do is we are constantly studying the Boulder luxury real estate market and we stay ahead of it. We never want our sellers to chase the market down so we want our listings to be the best price and in the best condition of anything else on the market.
The 7th thing we do is that we work to make our homes the prettiest by working with great stagers. This is so that people feel like they have great alternatives such as instead of just paying for their home to be staged they can have to option of having a home manager live in their property while it is on the market so that their property can be ready for showings at any time.