Radon Gas

One of the questions I always get from Buyers is do we have termites in Colorado? We do not have a termite issue here in Colorado when buying a home, but Radon Gas is an issue. The info below is taken directly from an EPA Handbook concerning Radon Gas.

Radon is a radioactive gas. It comes from the natural decay of uranium that is found in nearly all soils. It typically moves up through the ground to the air above and into your home through cracks and other holes in the foundation. Your home traps radon inside, where it cans build-up. Any home may have a radon problem ...this means new homes, well-sealed homes and drafty homes, and homes with or without basements. Radon is estimated to cause many thousands of deaths each year. When you breathe air containing radon, you can get lung cancer. In fact, the Surgeon General has warned that radon is the second leading cause of lung cancer deaths. If you smoke and your home has high radon levels, your risk of lung cancer is especially high. Testing is the only way to know if you and your family are at risk from radon. The EPA and Surgeon General recommend testing all homes for radon. Testing is inexpensive and easy. There are also professional inspection companies that can do the testing.

If a radon problem does exist, there are simple and inexpensive ways to fix the problem. Even high levels of radon can be reduced to acceptable levels. The average indoor radon level is estimated to be about 1.3 pCi/L, and about 0.4 pCi/L of radon is normally found in the outside air. The U.S. Congress has set a long-term goal that indoor radon levels be no more than outdoor levels. While this goal is not yet technologically achievable in all cases, most homes today can be reduced to 2 pCi/L or below.

Information provided by the Environmental Protection Agency (E.P.A.)

Centennial Pavillion Lofts Louisville

I visited this site on Saturday. New construction Lofts on the west end of Louisville. Construction phase is over. Two 3-story buildings side by side. Kind of an odd location for lofts to built--adjacent to a Walgreens, Grease Monkey, other retail, a couple of prairie dog fields and office buildings.

You would think that a loft type project would have been better suited closer to old town Louisville. When you walk thru the building it's just like an apartment building more so than a condo loft style.

Sales are slow--only 30% of units have been sold. I looked at the 2 bedroom model with 2 baths, 1,225 sq ft, 2 parking spots in underground garage. Kitchen is nice, have nice cabinets, granite tile (not slab) countertops. The salesperson called the floor a "hardwood floor" but to my eye it looked like some kind of pergo product.

Price on 2nd floor for this model is $259,900, 3rd floor with basic view $334,000 and 3rd floor end unit $345,000. Definitely premium pricing for these Lofts and I see why sales are so slow based on location, finish and overall feel to lofts.

For more info, their website is http://www.cplofts.com

Interest Rate Update provided by Grant Hickman, Premier Mortgage

Interest rates continue to trade in a narrow range and are mostly flat on the week. April New Home Sales were much stronger than expected although March Sales were revised downward. April Existing Home Sales declined 2.0%, in line with expectations. April Durable Goods Orders showed a substantial decline and April Personal Income was slightly lower than expectations. The Personal Consumption Expenditure Index is up 2.1% year over year, slightly above the Federal Reserve’s comfort range. Inflation concerns may lead the Fed to continue to raise short term interest rates even if the economy slows. The second look at first quarter GDP showed that the economy grew at a 5.3% annualized rate on expectations of 5.8%.

Crude Oil futures are currently trading over $71 per barrel on concerns of supply interruptions from Iran and a decline of crude oil inventories on the week. Prices are likely to continue to remain high as we head into the busy summer driving season.

All markets are closed Monday for Memorial Day. Look toward Thursday’s ISM Manufacturing Index and Friday’s employment report for May as potential market moving events.

Current rate for a 30 year fixed loan is 6.625% with no points based on a $250,000 Purchase Transaction; $187,500 Loan Amount; 10-20% Down.

Current rate for a 15 year fixed loan is 6.25% with no points based on a $250,000 Purchase Transaction; $187,500 Loan Amount; 10-20% Down.

Current rate for a 5 year ARM is 6.375% with no points based on a $250,000 Purchase Transaction; $187,500 Loan Amount; 10-20% Down.

Posting info and rates provided:

Grant Hickman
Senior Loan Officer
Premier Mortgage Group, LLC
1844 Folsom Street
Boulder, CO 80302
303-449-8855
ghickman@pmglending.com

Which Website Should I use to Search Listings?

I get this question all the time from customers.

If you are searching in this area, the best website to use is http://www.coloproperty.com and the reason is this website is run and managed by the same staff who runs our MLS as Realtors. Coloproperty is updated nightly from our MLS. As a website, it's designed for the public to use and you don't have to submit your email and personal info in order to use it.

Another good website to use now is http://www.remax.com Re/Max is dedicated to creating a fully functional website for the public to use which has all the listings from every real estate company available in the U.S. I have used this website--there are some excellent features they have created for searching, viewing and comparative data.

Buying Tip Relocation

Moving is a daunting and stressful experience. There are so many “things” you have to deal with when moving. And one of the biggest decisions you have to make is where are you going to live?

What are the challenges you face when buying a home when relocating?

1. Fast timeline

Usually you have to complete your home search and buying process much quicker than the average Buyer. And if you are not able to buy in the timeframe you need to then you could incur additional relocation costs for household goods storage or temporary housing.

2. Unfamiliarity with the area you are moving to

Most often you do not know much about the area. You need to take the time to get a tour of the different cities and neighborhoods in close proximity to where you will be working.

This is the most critical item when choosing and selecting a property to buy. It is important to choose the area and neighborhood first and then view and screen out properties to find what you like.

3. School information

If you have children, then you need to get as much information as you can about the schools you want your kids to attend. A lot of Relocating Buyers choose the schools first and then find a home in that school zone. It’s important to find out if the school(s) you want have openings for an in-year transfer or for the next school year.

4. Commuting Distances

You need to know traffic patterns and what is your accepted commuting times in the morning and evening.

5. Lifestyle and Recreation

You need to find a neighborhood or area that fits your lifestyle. And if you have a family and/or pets then this is also important.

6. Coordinating Timeline

As a Relocation Buyer you have many events to manage such as: Selling your existing home, interim housing, shipment of your household goods and then the closing and possession of your new home.

7. Buy Right and not Emotionally

Some Relocation Buyers get taken advantage of because they are in a hurry to buy and sometimes lose their negotiating leverage by appearing too eager. It is recommended that a Relocation Buyer be represented by a Buyer’s Agent to secure the most favorable price and terms. In addition, in the future you will most likely list your property for sale in order to upgrade, downgrade or relocate out of the area so you need to make sure you are buying a property with value for appreciation and a timely sale in the future.

8. Finding a Buyer’s Agent who has experience with Relocation

A lot of Buyer’s don’t give this enough thought. It’s important you have a Buyer’s Agent who understands your special needs and who has the skills and expertise to help you. You need a Realtor who has the patience to explain the most basic parts of the process to the most complex. You want a Realtor who will show you homes that you like and want based on your needs and take the time and effort to tour you different cities and neighborhoods. You need a Realtor who has expertise and experience in the area you want to buy into. As a Relocation Buyer you require a high level of service from a Real Estate Agent so you need to find one who can deliver.

Arboretum Louisville

City of Louisville maintains an Arboretum in Louisville. Located southeast of the intersection McCaslin Blvd. and Via Appia Way. It's a very nice spot in Louisville where lots of people come to walk and jog.

The arboretum is sectioned off into different tree groups and has a Xeriscape Garden in the middle of the park. I noticed this morning there were a number of new trees on the side which are going to be planted soon.

I took the pics this morning on my way to the Rec Center.

Maxtor Layoffs Longmont

Seagate and Maxtor both have offices in Longmont. Over the years they have been two of the biggest employers in Longmont. Recently, Seagate has acquired Maxtor and the companies are integrating.

It was announced yesterday as part of the Maxtor acquisition that Seagate will be cutting 6,000 employees from the Maxtor work force worldwide. And 650 of those jobs being cut reside in Longmont.

This was expected news since Seagate plans to phase out the Maxtor disk-drive product line.

These layoffs will affect the Longmont real estate market in a negative way. More properties will be listed for sale thus increasing an already large inventory of homes and condos for sale in Longmont. And the builders are still building new housing in southwest Longmont and eastern Longmont. Demand is decreasing while the supply will continue to increase. So, the market will continue to remain soft in Longmont for some time.

Anthem Colorado at Broomfield

I visited this new community this morning. It's located on HWY 7 (Baseline) east of Lafayette and south of Erie, it's located in Broomfield between HWY 7 and Northwest Parkway.

It's going to be a very large housing development. 2,648 acres split between Anthem Ranch by Del Webb for residents 55 years and better, and Anthem Highlands by Pulte Homes for residents of all ages, and a planned multi-use, office, retail, and town center commercial component.

Anthem Ranch

Base prices range from $286,990 to $479,490. Square footage of homes range from 1,555 sq ft to 2,837 sq ft. On top of these prices, you will need to add options, lot premium, elevation choice, landscape packages, basement options, etc.

Anthem Highlands

Base prices range from $351,990 to $470,990. Square footage of homes range from 2,112 sq ft to 3,343 sq ft. On top of these prices, you will need to add options, lot premium, elevation choice, landscape packages, basement options, etc.

Property taxes are taxed at Mil Levy rate of .0146695. For example, a house with an assessed value of $350,000 will have property taxes of $5,134.33 a year.

HOA Fees are as follows--$92.00 a month prior to opening of recreation center. $137.00 a month when recreation center opens (estimated Spring 2007). And there's a one time capitalization fee of $822.00 at closing. HOA includes parks, trails, landscaping and lighting for open areas, lakes and water features, monumentation and signage. Staffing and operation of the Rec Center, outdoor courts, and swimming pool. These rates are from the Anthem Ranch product, not sure if the Highlands will be the same.

My opinion on what I saw today and info I reviewed.

Looks like a beautiful development. It's going to be a big development, thousands and thousands of homes will be built when complete. Some of the smaller ranch homes will not have a basement. Basements I did see were concrete slabs. I did not see copper pipes for water pipes coming off water heater, a pvc pipe product is what I saw.

The land there has expansive soils just like parts of Rock Creek in Superior. Water availability could become an issue in future--we are going to have drought years again like we had in 2002. HOA fees seem high for a housing community. Property taxes are very high compared to homes in surrounding cities. Parts of community will be in flight path of Erie airport.

I took some pics while I was there.

Their website if you like to peruse is http://www.anthemcolorado.com

Erie Balloon Festival

What a great way to start your weekend!! My daughter and I took a drive out to Erie early this morning to see the balloons. They all took off from Vista Ridge Golf Course.

Balloons kick off Erie's Town Fair for the day--lots of fun activities scheduled. Check it out on the Town of Erie website, http://www.ci.erie.co.us/ My favorite is the pie eating contest at 2:30 pm, I wish I could be there.

Interest Rate Update provided by Grant Hickman, Premier Mortgage

Date: May 19, 2006

Interest rates remained mostly unchanged on the week despite a fair amount of volatility in the bond markets. Weakness in housing starts and building permits supported lower rates while a higher than expected increase in the Consumer Price Index (CPI) drove rates upward. Both the overall CPI and the core CPI, excluding food and energy, increased more than expected. Year over year, the overall CPI is up 3.5% and the core CPI is up 2.3%. Yesterday, two Fed officials indicated that the Fed may have to tighten short-term interest rates again at their June meeting to fight inflation. These comments supported lower rates.

Other economic reports of note included April Industrial Production and Capacity Utilization which were both stronger than expected. The Philadelphia Fed Business Index was also stronger than expected although the New Orders and Employment components of the index were weaker than expected.

Crude Oil prices are down over $3 on the week. The Dollar has improved versus both the Euro and Yen on expectations of another Fed rate hike and comments from the European Central Bank that the Euro has gotten too strong. A stronger Dollar should increase demand for US debt instruments and support lower rates.

Next week look toward Wednesday’s Durable Goods Orders, Thursday’s second read on first quarter GDP, and Friday’s Personal Income and Outlays as potential market moving events.

Current rate for a 30 year fixed loan is 6.625% with no points based on a $250,000 Purchase Transaction; $187,500 Loan Amount; 10-20% Down.

Current rate for a 15 year fixed loan is 6.25% with no points based on a $250,000 Purchase Transaction; $187,500 Loan Amount; 10-20% Down.

Current rate for a 5 year ARM is 6.50% with no points based on a $250,000 Purchase Transaction; $187,500 Loan Amount; 10-20% Down.

Posting info and rates provided:

Grant Hickman
Senior Loan Officer
Premier Mortgage Group, LLC
1844 Folsom Street
Boulder, CO 80302
303-449-8855
ghickman@pmglending.com

Foreclosures on the Front Page

You can't seem to pick up a newspaper nowadays without news on foreclosures in Colorado. Both Denver papers yesterday had this news highlighted on front page. Our state has the highest foreclosure rate in the Country according to RealtyTrac Inc.

Counties with the highest foreclosure rate are Adams, Arapahoe, Denver and Weld. Out of these counties the one I have experience with is Adams County, the city of Thornton specifically. I have seen a lot of homes built in Thornton the past few years and there is still a lot of new homes being built and planned to be built in the future. So when I have taken Buyers out to view existing homes in Thornton my Buyers generally gravitate towards looking at new construction--their reasoning is why should I buy a "used" home that's 2-3 years old rather than buying a brand new one for the same price or in a lot of cases a lower price due to builder incentives.

When looking at buying a home it's important to find out the overall plan for the city and area you are buying into to find out how many new homes will be built in the future. Seems like I keep making this point again and again but it's so important in relation to the future value of your property.

Waneka Lake Lafayette

Beautiful little spot tucked in Lafayette. Right in the middle of a few neighborhoods. Lots of people walk/jog around the lake--has a nice sidewalk. Playground area on west side of lake.

Boulder and Indian Peaks are in background of pic.

How's the Market?

It's funny, whenever I go to parties or get together's I always get this question from people I know and those who have just met me--"how's the market?" Since I am a Realtor people think I should have a ready answer.

Well, here's an answer with a little research plus some of my observations.

Here's a snapshot of Days on Market for homes in this general area-

Boulder 95 DOM
Louisville 88 DOM
Lafayette 110 DOM
Longmont 113 DOM
Erie 116 DOM
Broomfield 102 DOM

Dates are from 1-1-06 thru today, 5-16-06.

Overall, the market is not as strong as it has been the past few years. With interest rates having gone up the entry of first time homebuyers into the market is not like it was two years ago. Plus, we are not seeing many homeowners slotting up--sell a home for $300k and then buy a home for $450k. The inventory availability in Louisville for example of higher priced homes is very low now. A home on Manorwood went on the market last week for $850k and went under contract today.

But, if you look at higher priced homes in the Niwot area specifically Somerset, there are 24 homes for sale from the $800k range to the $4m range. It's a lack of high paying jobs being created in the area. When the market was really hot here in the mid to late 90's it was primarily a result of high paying jobs being created in the high tech field in places like Interlocken, Boulder and Longmont.

Areas which are really struggling now are Erie, parts of Longmont and parts of Broomfield. Why is that? The areas which grew the fastest during the high tech boom are the ones which are having the biggest pullback with the layoffs and downsizing. And in addition to the loss of jobs these three areas still have builders building new homes right now. New construction with a decrease in demand equals foreclosures. I was in Broomfield a few weeks ago showing property with one of my Buyers and we looked at a home in Broomfield which was only a few years old in the one of the newer neighborhoods which was a foreclosure--the home was priced in the $400k range which was surprising to me.

There are still Buyers moving into the area but it's not like it was pre Y2k. Colorado is still a very desirable place to live because of the quality of life, climate, outdoor activities, etc.

More to come later.

Masalaa Restaurant Aurora

On Saturday we took a drive to South Denver for some authentic South Indian Food.

Masalaa Restaurant is in Aurora on S. Parker Rd., just west of I-225, on the right hand side just past Peoria Street.

Food was fantastic!! They had a lunch buffet and some of the dishes included: Idli, Masala Dosa, Sambar, Garlic Rasam, Mixed vege kootu, Rice, Veg Biryani, Gujurati khadi, Gujurati Undhiyu, Paneer Masala, Puri, Badam Halwa, Dahi Vada.....Dosa's are made fresh, once you get your food from the buffet they automatically bring you some freshly made masala dosa's from the kitchen.

I ate mostly Idli's, Sambar, Dosa and plain basmati rice and had an excellent Mango Lassi to top it off. Service was as good as the food. I highly recommend this restaurant, it's definitely worth the drive.

Buying Tip

Buying Right: At or below market price, stable neighborhood, quick turnover time, least expensive home in neighborhood, good schools, solid infrastructure, and low taxes and assessments.

Buying Wrong: Over market price, declining neighborhood, one-of-a-kind house, most expensive home in neighborhood, incomplete subdivision and stigmatized property. If you are buying near new construction and the Builder will still be building new inventory in the next 5-10 years and Buyer Demand has decreased.

McIntosh Lake Longmont

I was in Longmont today. McIntosh Lake is in the northwest part of Longmont. Great area around the lake to hang out with a park, playground, and sidewalk around the lake.

The twin peaks in the background are Longs Peak and Mt. Meeker.

Davidson Mesa Louisville

Great spot in Louisville to go for a walk, hike, jog or mountain biking. On top of McCaslin Blvd on the west end of Louisville. It's a spectacular view.

Took the pics this morning--it snowed last night. Crazy, we sometimes get snow in May. Snow melted off right away once the sun came out. It was barely an inch just covering the grass and yards--nothing on the streets.

The sign for the mountain lions is at the beginning of the trailhead. Apparently, a mountain lion had been spotted in the area. When I have been on the trail in the past I have seen prairie dogs, a fox and lots of hawks circling.

Hooray for Louisville!

Louisville is #1 rated city in new book--"Best Places to Raise Your Family" by Bert Sperling and Peter Sander.

News item was posted on USA Today website yesterday.

I have lived in Louisville for 10 years now--I started out as a single guy moving out of Boulder and then got married while living here. To me Louisville is a great place for anybody.

Buying Tip

When buying a property, find out how much new construction will be built in your neighborhood. Market prices for homes are based on the old law of Supply and Demand.

For example, if you are buying a home in an area where the builder will continue to build new homes over the next 5 years you have to realize that the builder then will be your competition if have to sell in that time period.

And Builders use a lot of marketing strategies to sell their homes which you as an individual seller can not offer.

So, make sure to do your research when buying a new home in a new neighborhood or close to new construction.

What do Buyers Notice when Viewing Homes?

When walking into a home the Buyers generally will look at the floor on the main level. What do Buyers like best? Hardwood floors by far--real hardwood. Pergo is a negative--Just say "No" to Pergo.

From there the Buyers go to the kitchen. Older, outdated kitchens are always a challenge. Buyers like updated kitchens with nice cabinets (not too dark), updated appliances (stainless is very popular). Kitchens which are connected to the family room show better--Buyers don't like kitchens which are sectioned off from the rest of the house.

From the kitchen, Buyers then always go into the backyard. Having good access to the backyard from the house is very important. Either a nice deck or patio is what Buyers want with a yard which is well maintained and not overly landscaped.

The next area which Buyers always scrutinize is the bathrooms and especially the master bathroom. Carpet in bathrooms is a major "no-no." Tile is definitely preferred and vinyl is acceptable. And updated master bathrooms always show better--brushed nickel faucets are in and brass is definitely out.

Enough for today--my conclusions are based on my experience of showing many, many homes each year with Buyers.

More tips will be posted later.

Walnut Cafe Boulder

Great place in Boulder to have breakfast and lunch. Recognized as having some of the best homemade pies in the area. It's a very Boulder place--after you have been here awhile you always bump into someone you know when you go there to eat.

Boulder Scenic Overlook

Today we were driving into Boulder on HWY 36. Great view of Boulder and the Valley. Took the pic at 12:25 pm. Little cloudy.

Hectic Few Days

On Monday of this week I met some new Buyers coming in from out of town. They are relocating to this area. We had spent some time emailing each other back and forth buying criteria information along with sharing listings they might be interested in buying.

Monday and Tuesday we viewed 18 properties together giving them an opportunity to see and choose which property they wanted to buy. On Wednesday, we viewed the 1 property which they really liked. Wednesday afternoon we worked together and I wrote up a contract which we submitted later that day. And by Thursday evening we were under contract. And my Buyers flew back home today, Friday morning. So it was a productive trip for them.

New Louisville Park

This park is just south of Downtown Louisville. Great big park with lots of grass to play on. I haven't had time yet to go and use it. Maybe soon.

They just cut the grass today and it smelled very nice. There's a dog park for dogs to play and hang out together. There will also be a sprayground--a water spraying area for kids to play in--not active yet. I am sure it will be up and running after Memorial Day.

Took the pics today--kind of a gray day. 52 degree F.