What Your Agent Can't Do [Analyze This]

To contact us Click HERE
by Osman Parvez
You can always blunder your way through a real estate decision, but just remember that we're talking about a decision committing hundreds of thousands - sometimes millions - of dollars to an single asset.    Are you sure you want to go in blind? 

Before signing your name on the dotted line, you should have the most recent market information.  In  my opinion, it's the only way to make an intelligent, informed decision about real estate.   Anything less is gambling.

Providing detailed, up-to-date market knowledge and sound advice based on years of experience is how I help my clients negotiate better.   My advice isn't based on my personal business activity, vague "feelings about the market," or generic headlines I read in the Daily Camera.  It comes from directly analyzing market conditions. 

Boulder Real Estate Update
Two weeks ago, I sent our latest market research to clients and friends.  Now I'm sharing it with  you.   The report below comes from the same set of skills I honed working as an investment analyst and economic consultant.   Skills and experience that most agents simply don't have. 

Deep market knowledge and insights;  it's how I can help you make a smarter real estate decision.



To get on my client-only mailing list and receive my reports when they're first published (and actionable), drop me an email at osman@silverfernrealty.com or better yet, call me at 303.746.6896. ---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.

811: Know What's Below

To contact us Click HERE
 by Dallice Tylee


It is that time of year. The daylight hours are long, the temperatures are perfect.

Perhaps that is the very reason you suddenly notice the damage and deficiencies present in your yard. Or maybe, you have simply been waiting for better weather and more time to make planned improvements.

Whatever the reason... This weekend is it!

Photo Courtesy: Amy Fry

Planting a tree?
Putting up a new fence?
Digging in a new sprinkler system?
Starting the new deck?
Installing a pond?
Changing the location of your mailbox?

WAIT! Do you know where your utility lines are located? They may not be as deep as you think.

Before you go endangering yourself, potentially disrupting service to your neighborhood (and yourself) and risking expensive repairs or fines...

Dial 811
How it works:
You call this national number a few days before your intended digging.
The call is routed to a local call center.
Tell the operator the address and where you will be digging. Also the type of work you will be doing.
The affected local utility companies will be notified.
The utility companies will send someone out in the next few days, to locate and mark the approximate location of pipes and cables.

This is a FREE service and is for your SAFETY. May 2012 marks the 5th anniversary of the introduction of the National 811 number.  

Click here for more information.
Even better... click here to see what happened to two men in IOWA after they hit a natural gas pipeline while digging a trench in the middle of a field! Yikes!

---
Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.
---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.

Boulder's Bipolar Real Estate Market

To contact us Click HERE
by Osman Parvez
If you talk to a real estate agent in Boulder, you'll probably hear that the market is hot right now.   They're not lying.   It's true, but it's also not the full story.  

As my dad used to say, telling a partial truth isn't lying but it's not the same as the complete truth.   The complete truth is that the Boulder real estate market is very active in select locations and select price ranges.  

Let's look at price ranges.   The following charts show inventory (by price range) in the City of Boulder.   Each pie shows the breakdown between available homes and those under contract.  

House inventory in Boulder, $301,000 to $500,000 on 6/27/2012

This first tranche covers houses with asking prices from $301,000 to $500,000.     This is the price range for a large number of people;  first time buyers, investors, and sometimes downsizing retirees.     At the current time, more houses are under contract than available for purchase.    We've seen bidding wars repeatedly and our strategies to help buyers and sellers now reflect extremely active market conditions.

This has been the pattern since late February.   I'm advising my buyers to see inventory the day it hits the market and be ready to pull the trigger.   I've even started keeping a laptop in the car so we can write an offer on the spot, if necessary.  

Now check out a chart for higher-end, more luxurious homes in Boulder

House inventory in Boulder, $1MM to $2MM on 6/27/2012

Sellers of higher-value homes (and their agents) would probably like you believe that the frenzied market activity, bidding wars, and scarcity occurring at lower price points also exists at the upper end of the market.    This analysis say otherwise.

Yes, sales volume of higher end homes has increased this year but there's a mountain of unsold inventory - not to mention expired/withdrawn listings that have yet to return to market.   This is why I'm still advising my buyers at this price range that an opportunity still exists to get a great deal.    This might be an good time to focus on downtown real estate, or homes with protected views close to downtown.   The key is to be patient, negotiate aggressively, and be cautious.    If you want to get a good deal, seeing a lot of inventory is mandatory and if the house doesn't feel right, or the seller is simply asking an unreasonable number, walk away.     Negotiated discounts at the higher-end should be much greater than lower price levels, but not all sellers will see it that way.

Want to continue the discussion? Join us at tonight's meetup.   Learn more and RSVP here.

---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.

First Impression - Don't Sue Me

To contact us Click HERE
Last week, I took my buyers to see houses in Superior.   The sign below was attached to the front door of one of the houses.

And Don't Run with Scissors

First impressions matter.   Greeting potential buyers with your fear of being sued is not exactly rolling out the welcome mat.  

Walking in the door of this house, I expected to see shards of broken glass on the floors, fire damage, stairs hung askew, or curtains of mold hanging from the walls.      Yet none of these things were present.    It was a just a typical house with a favorable layout, low end finishes but a good location.    There was nothing scary inside.

Is it possible that a potential buyer will get injured in your home and sue you for damages?   Of course it's possible, this is America after all.    Sellers should not be negligent, take some time and make their house safe for visitors.   In other words, correct the trip hazards and if necessary (rare), put up signs to help people avoid injury from obvious hazards.   As for THIS sign?  I'll leave it to the legal scholars in the audience to tell us whether it offers any real protection from liability.    I have my doubts.   

And if the sign offers no real protection, why put it up?   It only affects the buyers negatively.    

p.s. This is the only house I've seen - EVER - that had a injury disclaimer taped to the front door.    

---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.

Inventory, How Low Can You Go?

To contact us Click HERE
by Osman Parvez
Anyone who bought a house in Boulder this summer knows the market was very challenging.      Bidding wars were breaking out between potential buyers.   Even mildly attractive properties were getting offers and the most desirable houses were flying off the market.    Seemingly overnight, it shifted from a buyers' to a sellers' market.

The key driver?   Inventory levels were fantastically low, especially at lower price points. For the first time, I set my client's email alerts to search the MLS several times a day and I found myself responding to new listings like a fireman.  I was on call and ready to drop everything at a moment's notice to see new inventory.   We couldn't afford to wait a few days, it was pertinent to see new houses immediately.

How low can you go?      Most experts believe a healthy real estate market has 6 months of available inventory much of Boulder was well below that threshold.    Take a look at the chart below.


The chart shows months of inventory, a metric calculated by taking inventory and dividing it by monthly sales volume.      The current month (September data) and the average of three months is shown.

On the average - all local markets remain below 6 months of inventory, several are below 4, and a few are even below 3.     September trended upward (typical for this time of year) but only Erie has exceeded the 6 month threshold.

How Low Can You Go?

What's Your Strategy?
When market conditions change quickly, buyers and sellers need to adjust their strategy.    The key is to understand the market.    It's mandatory, not optional, to see a lot of inventory, tracking sale prices and days on market.     If you want to make a smart, educated decision - there are no shortcuts.    Choose a good agent and prepare to get educated.

note:  The chart above is in the upcoming Silver Fern Report.    It's one of dozens of charts analyzing the Boulder real estate market.    Are you subscribed?
---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.

image:  thefuturistics'

811: Know What's Below

To contact us Click HERE
 by Dallice Tylee


It is that time of year. The daylight hours are long, the temperatures are perfect.

Perhaps that is the very reason you suddenly notice the damage and deficiencies present in your yard. Or maybe, you have simply been waiting for better weather and more time to make planned improvements.

Whatever the reason... This weekend is it!

Photo Courtesy: Amy Fry

Planting a tree?
Putting up a new fence?
Digging in a new sprinkler system?
Starting the new deck?
Installing a pond?
Changing the location of your mailbox?

WAIT! Do you know where your utility lines are located? They may not be as deep as you think.

Before you go endangering yourself, potentially disrupting service to your neighborhood (and yourself) and risking expensive repairs or fines...

Dial 811
How it works:
You call this national number a few days before your intended digging.
The call is routed to a local call center.
Tell the operator the address and where you will be digging. Also the type of work you will be doing.
The affected local utility companies will be notified.
The utility companies will send someone out in the next few days, to locate and mark the approximate location of pipes and cables.

This is a FREE service and is for your SAFETY. May 2012 marks the 5th anniversary of the introduction of the National 811 number.  

Click here for more information.
Even better... click here to see what happened to two men in IOWA after they hit a natural gas pipeline while digging a trench in the middle of a field! Yikes!

---
Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.
---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.

Boulder's Bipolar Real Estate Market

To contact us Click HERE
by Osman Parvez
If you talk to a real estate agent in Boulder, you'll probably hear that the market is hot right now.   They're not lying.   It's true, but it's also not the full story.  

As my dad used to say, telling a partial truth isn't lying but it's not the same as the complete truth.   The complete truth is that the Boulder real estate market is very active in select locations and select price ranges.  

Let's look at price ranges.   The following charts show inventory (by price range) in the City of Boulder.   Each pie shows the breakdown between available homes and those under contract.  

House inventory in Boulder, $301,000 to $500,000 on 6/27/2012

This first tranche covers houses with asking prices from $301,000 to $500,000.     This is the price range for a large number of people;  first time buyers, investors, and sometimes downsizing retirees.     At the current time, more houses are under contract than available for purchase.    We've seen bidding wars repeatedly and our strategies to help buyers and sellers now reflect extremely active market conditions.

This has been the pattern since late February.   I'm advising my buyers to see inventory the day it hits the market and be ready to pull the trigger.   I've even started keeping a laptop in the car so we can write an offer on the spot, if necessary.  

Now check out a chart for higher-end, more luxurious homes in Boulder

House inventory in Boulder, $1MM to $2MM on 6/27/2012

Sellers of higher-value homes (and their agents) would probably like you believe that the frenzied market activity, bidding wars, and scarcity occurring at lower price points also exists at the upper end of the market.    This analysis say otherwise.

Yes, sales volume of higher end homes has increased this year but there's a mountain of unsold inventory - not to mention expired/withdrawn listings that have yet to return to market.   This is why I'm still advising my buyers at this price range that an opportunity still exists to get a great deal.    This might be an good time to focus on downtown real estate, or homes with protected views close to downtown.   The key is to be patient, negotiate aggressively, and be cautious.    If you want to get a good deal, seeing a lot of inventory is mandatory and if the house doesn't feel right, or the seller is simply asking an unreasonable number, walk away.     Negotiated discounts at the higher-end should be much greater than lower price levels, but not all sellers will see it that way.

Want to continue the discussion? Join us at tonight's meetup.   Learn more and RSVP here.

---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.

First Impression - Don't Sue Me

To contact us Click HERE
Last week, I took my buyers to see houses in Superior.   The sign below was attached to the front door of one of the houses.

And Don't Run with Scissors

First impressions matter.   Greeting potential buyers with your fear of being sued is not exactly rolling out the welcome mat.  

Walking in the door of this house, I expected to see shards of broken glass on the floors, fire damage, stairs hung askew, or curtains of mold hanging from the walls.      Yet none of these things were present.    It was a just a typical house with a favorable layout, low end finishes but a good location.    There was nothing scary inside.

Is it possible that a potential buyer will get injured in your home and sue you for damages?   Of course it's possible, this is America after all.    Sellers should not be negligent, take some time and make their house safe for visitors.   In other words, correct the trip hazards and if necessary (rare), put up signs to help people avoid injury from obvious hazards.   As for THIS sign?  I'll leave it to the legal scholars in the audience to tell us whether it offers any real protection from liability.    I have my doubts.   

And if the sign offers no real protection, why put it up?   It only affects the buyers negatively.    

p.s. This is the only house I've seen - EVER - that had a injury disclaimer taped to the front door.    

---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.

The Artists Way - Open Studios [EVENT]

To contact us Click HERE
by Osman Parvez

Do you love art?   I've got just the ticket for you.

This weekend is your last opportunity to check out the 2012 Art Studio tour presented by Open Studios.    Every year dozens of Boulder artists open their private studios to showcase their art, technique, and work spaces.

Swing by Whole Foods, the Boulder Bookstore, or BMOCA to pick up a map (other locations, too).   For only $10, you'll have your own guided tour of local artists, neighborhoods, and private studios.    Bicycling is probably the best option to get around Boulder,  if you have the time.     The weather forecast is looking a bit damp on Saturday morning but Sunday is supposed to be the perfect autumn day.

Many different mediums are represented including ceramics, drawing and print making, fiber arts, pastels, sculpture, and oil painting.    The directory is here but you won't find the map online.    You've got to pick one up in person.    The tour is open from noon to 6pm and it's perfect for all ages.

I went on the tour (for the first time!) last weekend and it was a fantastic experience.  In addition to meeting local artists and talking about their work, you'll also have a rare opportunity to see the relationship between artist, their art, and their work spaces.    Clearly the space we choose to surround our self with has a essential impact to the way we work and the outcome of our work itself.    Something to keep in mind the next time you're considering a real estate purchase.

Learn more about Open Studios Fall Artist Tour HERE.

Warren Buffett's best investment? Now it's the single-family home!

To contact us Click HERE
Warren Buffett, chairman and CEO of Berkshire Hathaway, is widely regarded as one of the world's most successful investors. He recently appeared live on CNBC's Squawk Box program, Monday, February 27, 2012, for his annual "Ask Warren" three-hour marathon. Among the many topics covered was the housing market. Here is Warren's latest advice on investing in that area.
Buffett began by pointing out, "...equities are still cheap relative to any other asset class," but added, "I would say the single-family homes are cheap now, too." He then made this startling statement:

"If I had a way of buying a couple hundred thousand single-family homes... I would load up on them."

He admitted that he would need a way to manage so many residences: "... the management is... really the problem because they're one by one. They're not like apartment houses." But if it were practical, he would "load up on them and I would take mortgages out at very, very low rates."

He then offered an insightful summary of the current situation in the housing market: "If anybody is thinking about buying a home -- five years ago they couldn't buy them fast enough, because they thought they were going to go up, and now they don't buy them because they think they're going to go down. And interest rates are far lower."

Keying off the low mortgage interest rate situation, he pointed out:

"It's a way, in effect, to short the dollar, because you can take a 30-year mortgage and if it turns out your interest rate's too high, next week you refinance lower. And if it turns out it's too low, the other guy's stuck with it for 30 years. So it's a very attractive asset class now."

Buffett was then asked, point blank, if he were a young individual investor who had to choose between buying a first home or investing in stocks, which one would be the better bet? His characteristically direct answer:

"...if I knew where I was going to want to live the next five or 10 years, I would buy a home and I'd finance it with a 30-year mortgage and it's a terrific deal."

He followed that with this business idea:

"... if I was an investor that was a handy type, which I'm not, and I could buy a couple of them at distressed prices and find renters -- and again take a 30-year mortgage -- it's a leveraged way of owning a very cheap asset now and I think that's probably as attractive an investment as you can make now."

Check out the video: http://www.youtube.com/watch?v=vkx57Ifein8&feature=share

And a final note: Buffett wrote in his latest letter to Berkshire Hathaway shareholders: "Housing will come back -- you can be sure of that."


Remember, we're always here to answer any questions.... Have a great day!

P.S. So with today's mortgage rates at historic new lows and with very affordable home prices, this is a great time to upsize, downsize or refinance. Please call or email us now to discuss your situation.

First Impression - Don't Sue Me

To contact us Click HERE
Last week, I took my buyers to see houses in Superior.   The sign below was attached to the front door of one of the houses.

And Don't Run with Scissors

First impressions matter.   Greeting potential buyers with your fear of being sued is not exactly rolling out the welcome mat.  

Walking in the door of this house, I expected to see shards of broken glass on the floors, fire damage, stairs hung askew, or curtains of mold hanging from the walls.      Yet none of these things were present.    It was a just a typical house with a favorable layout, low end finishes but a good location.    There was nothing scary inside.

Is it possible that a potential buyer will get injured in your home and sue you for damages?   Of course it's possible, this is America after all.    Sellers should not be negligent, take some time and make their house safe for visitors.   In other words, correct the trip hazards and if necessary (rare), put up signs to help people avoid injury from obvious hazards.   As for THIS sign?  I'll leave it to the legal scholars in the audience to tell us whether it offers any real protection from liability.    I have my doubts.   

And if the sign offers no real protection, why put it up?   It only affects the buyers negatively.    

p.s. This is the only house I've seen - EVER - that had a injury disclaimer taped to the front door.    

---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.

Warren Buffett's best investment? Now it's the single-family home!

To contact us Click HERE
Warren Buffett, chairman and CEO of Berkshire Hathaway, is widely regarded as one of the world's most successful investors. He recently appeared live on CNBC's Squawk Box program, Monday, February 27, 2012, for his annual "Ask Warren" three-hour marathon. Among the many topics covered was the housing market. Here is Warren's latest advice on investing in that area.
Buffett began by pointing out, "...equities are still cheap relative to any other asset class," but added, "I would say the single-family homes are cheap now, too." He then made this startling statement:

"If I had a way of buying a couple hundred thousand single-family homes... I would load up on them."

He admitted that he would need a way to manage so many residences: "... the management is... really the problem because they're one by one. They're not like apartment houses." But if it were practical, he would "load up on them and I would take mortgages out at very, very low rates."

He then offered an insightful summary of the current situation in the housing market: "If anybody is thinking about buying a home -- five years ago they couldn't buy them fast enough, because they thought they were going to go up, and now they don't buy them because they think they're going to go down. And interest rates are far lower."

Keying off the low mortgage interest rate situation, he pointed out:

"It's a way, in effect, to short the dollar, because you can take a 30-year mortgage and if it turns out your interest rate's too high, next week you refinance lower. And if it turns out it's too low, the other guy's stuck with it for 30 years. So it's a very attractive asset class now."

Buffett was then asked, point blank, if he were a young individual investor who had to choose between buying a first home or investing in stocks, which one would be the better bet? His characteristically direct answer:

"...if I knew where I was going to want to live the next five or 10 years, I would buy a home and I'd finance it with a 30-year mortgage and it's a terrific deal."

He followed that with this business idea:

"... if I was an investor that was a handy type, which I'm not, and I could buy a couple of them at distressed prices and find renters -- and again take a 30-year mortgage -- it's a leveraged way of owning a very cheap asset now and I think that's probably as attractive an investment as you can make now."

Check out the video: http://www.youtube.com/watch?v=vkx57Ifein8&feature=share

And a final note: Buffett wrote in his latest letter to Berkshire Hathaway shareholders: "Housing will come back -- you can be sure of that."


Remember, we're always here to answer any questions.... Have a great day!

P.S. So with today's mortgage rates at historic new lows and with very affordable home prices, this is a great time to upsize, downsize or refinance. Please call or email us now to discuss your situation.

Having trouble getting a mortgage? Here's why

To contact us Click HERE
My good friend Rich Moroscak at Southern Trust Mortgage (http://www.southerntrust.com/tysonscorner/richm) shared this great article from Forbes on all the hoops you have to jump through now to get a mortgage:

http://www.forbes.com/sites/moneybuilder/2012/03/09/the-perfect-loan-file-2/

As the article explains banks are now in the default avoidance business rather than the lending business.  It makes sense considering there were 22% default rates on mortgages loans made in 2007.  Nevertheless, the mortgage loan origination and underwriting process has become absurd.  The article is not exaggerating when it says that you will need to document every aspect of your financial life to the banks and then provide them with that information several times throughout the underwriting process.  Every transaction on your bank statements will be scrutinized and will have to be justified.  Good credit and a large down payment are no longer enough.  The underwriters now want the perfect paper file.

To survive this new regime have plenty of patience and grin and bear it when the underwriters ask for the same documents for the 10th time.  It will be worth it when you finally close on the property.

Thomas Jefferson's 10 Rules for Living

To contact us Click HERE

Never put off till tomorrow what you can do to-day.

Never trouble another for what you can do yourself.

Never spend your money before you have it.

Never buy what you do not want, because it is cheap; it will be dear to you.

Pride costs us more than hunger, thirst and cold.

We never repent of having eaten too little.

Nothing is troublesome that we do willingly.

How much pain have cost us the evils which have never happened.

Take things always by their smooth handle.

When angry, count ten, before you speak; if very angry, an hundred.

We Can't All Be Donald Trump - And That's Okay

To contact us Click HERE

When consideringthe many obstacles on the road to success, you might overlook “perfectionism”,but you shouldn’t. This sneaky stumbling block can stop you from even beginningyour journey.Nancy’sColasurdo’s excellent article, “We Can’t All be Shakespeare- And That’s Okay”,takes a look at a ‘defeat mechanism’ that can stop us from even trying toaccomplish our dreams.  And as weall know, if you don’t begin your journey, you certainly won’t get there.As a coachColasurdo has found that clients “often feel that they have to be perfect oraspire to be at the level of someone they feel is at the top of theprofession.” Looking at the end game, some feel that such an achievement isimpossible for them. They forget the many steps that a leader took to achievehis or her goals.  And they alsoforget that each one’s way is individual. How might thisapply to real estate investing? What if a would-be investor chose Donald Trumpas a model, and said, “What’s the point of buying a small rental property, ortwo or even three?  That’s nothingto Donald Trump.”  But just becauseyour journey may be different, that doesn’t mean you shouldn’t take it. Whenlooking at others’ success stories – remember, their starting point may bedifferent, they have a different path to take, but the important factor toemulate is the mindset that looks for opportunities small and big and makes themost of them one by one.Donald Trumplearned the real estate business first hand from his dad, Frederick, asuccessful developer in Queens and Brooklyn.  When ‘the Donald’ wanted to invest in Manhattan, his dadtried to discourage him. But Trump had a vision of what he could accomplish, hefelt he understood the risks, and was determined to go for it.  His mid-70’s transformation of theCommodore Hotel into The Grand Hyatt, not only made him a fortune and set him ona road to tremendous success, but it also completely revitalized a rundown areaof Manhattan.Few of us beginwith Trump’s assets or a dad like his for a mentor. Instead, we have to learn thebusiness on our own from the ground up. But we do have the ability to adopt theTrump mindset – the approach of a champion.  What does itentail? Doing your homework, understanding the finances, taking well-consideredrisks, planning every step, being prepared for challenges and dealing with them,capitalizing on success, learning from failures.  And to quote Winston Churchill, “Never, never, never, never giveup.”And little bylittle, step-by-step you will build your real estate business, write your ownstory, improve neighborhoods and achieve success your way. And you’ll be gladyou didn’t wait to become perfect before beginning your journey.

First Impression - Don't Sue Me

To contact us Click HERE
Last week, I took my buyers to see houses in Superior.   The sign below was attached to the front door of one of the houses.

And Don't Run with Scissors

First impressions matter.   Greeting potential buyers with your fear of being sued is not exactly rolling out the welcome mat.  

Walking in the door of this house, I expected to see shards of broken glass on the floors, fire damage, stairs hung askew, or curtains of mold hanging from the walls.      Yet none of these things were present.    It was a just a typical house with a favorable layout, low end finishes but a good location.    There was nothing scary inside.

Is it possible that a potential buyer will get injured in your home and sue you for damages?   Of course it's possible, this is America after all.    Sellers should not be negligent, take some time and make their house safe for visitors.   In other words, correct the trip hazards and if necessary (rare), put up signs to help people avoid injury from obvious hazards.   As for THIS sign?  I'll leave it to the legal scholars in the audience to tell us whether it offers any real protection from liability.    I have my doubts.   

And if the sign offers no real protection, why put it up?   It only affects the buyers negatively.    

p.s. This is the only house I've seen - EVER - that had a injury disclaimer taped to the front door.    

---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.

Warren Buffett's best investment? Now it's the single-family home!

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Warren Buffett, chairman and CEO of Berkshire Hathaway, is widely regarded as one of the world's most successful investors. He recently appeared live on CNBC's Squawk Box program, Monday, February 27, 2012, for his annual "Ask Warren" three-hour marathon. Among the many topics covered was the housing market. Here is Warren's latest advice on investing in that area.
Buffett began by pointing out, "...equities are still cheap relative to any other asset class," but added, "I would say the single-family homes are cheap now, too." He then made this startling statement:

"If I had a way of buying a couple hundred thousand single-family homes... I would load up on them."

He admitted that he would need a way to manage so many residences: "... the management is... really the problem because they're one by one. They're not like apartment houses." But if it were practical, he would "load up on them and I would take mortgages out at very, very low rates."

He then offered an insightful summary of the current situation in the housing market: "If anybody is thinking about buying a home -- five years ago they couldn't buy them fast enough, because they thought they were going to go up, and now they don't buy them because they think they're going to go down. And interest rates are far lower."

Keying off the low mortgage interest rate situation, he pointed out:

"It's a way, in effect, to short the dollar, because you can take a 30-year mortgage and if it turns out your interest rate's too high, next week you refinance lower. And if it turns out it's too low, the other guy's stuck with it for 30 years. So it's a very attractive asset class now."

Buffett was then asked, point blank, if he were a young individual investor who had to choose between buying a first home or investing in stocks, which one would be the better bet? His characteristically direct answer:

"...if I knew where I was going to want to live the next five or 10 years, I would buy a home and I'd finance it with a 30-year mortgage and it's a terrific deal."

He followed that with this business idea:

"... if I was an investor that was a handy type, which I'm not, and I could buy a couple of them at distressed prices and find renters -- and again take a 30-year mortgage -- it's a leveraged way of owning a very cheap asset now and I think that's probably as attractive an investment as you can make now."

Check out the video: http://www.youtube.com/watch?v=vkx57Ifein8&feature=share

And a final note: Buffett wrote in his latest letter to Berkshire Hathaway shareholders: "Housing will come back -- you can be sure of that."


Remember, we're always here to answer any questions.... Have a great day!

P.S. So with today's mortgage rates at historic new lows and with very affordable home prices, this is a great time to upsize, downsize or refinance. Please call or email us now to discuss your situation.

Having trouble getting a mortgage? Here's why

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My good friend Rich Moroscak at Southern Trust Mortgage (http://www.southerntrust.com/tysonscorner/richm) shared this great article from Forbes on all the hoops you have to jump through now to get a mortgage:

http://www.forbes.com/sites/moneybuilder/2012/03/09/the-perfect-loan-file-2/

As the article explains banks are now in the default avoidance business rather than the lending business.  It makes sense considering there were 22% default rates on mortgages loans made in 2007.  Nevertheless, the mortgage loan origination and underwriting process has become absurd.  The article is not exaggerating when it says that you will need to document every aspect of your financial life to the banks and then provide them with that information several times throughout the underwriting process.  Every transaction on your bank statements will be scrutinized and will have to be justified.  Good credit and a large down payment are no longer enough.  The underwriters now want the perfect paper file.

To survive this new regime have plenty of patience and grin and bear it when the underwriters ask for the same documents for the 10th time.  It will be worth it when you finally close on the property.

Thomas Jefferson's 10 Rules for Living

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Never put off till tomorrow what you can do to-day.

Never trouble another for what you can do yourself.

Never spend your money before you have it.

Never buy what you do not want, because it is cheap; it will be dear to you.

Pride costs us more than hunger, thirst and cold.

We never repent of having eaten too little.

Nothing is troublesome that we do willingly.

How much pain have cost us the evils which have never happened.

Take things always by their smooth handle.

When angry, count ten, before you speak; if very angry, an hundred.

We Can't All Be Donald Trump - And That's Okay

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When consideringthe many obstacles on the road to success, you might overlook “perfectionism”,but you shouldn’t. This sneaky stumbling block can stop you from even beginningyour journey.Nancy’sColasurdo’s excellent article, “We Can’t All be Shakespeare- And That’s Okay”,takes a look at a ‘defeat mechanism’ that can stop us from even trying toaccomplish our dreams.  And as weall know, if you don’t begin your journey, you certainly won’t get there.As a coachColasurdo has found that clients “often feel that they have to be perfect oraspire to be at the level of someone they feel is at the top of theprofession.” Looking at the end game, some feel that such an achievement isimpossible for them. They forget the many steps that a leader took to achievehis or her goals.  And they alsoforget that each one’s way is individual. How might thisapply to real estate investing? What if a would-be investor chose Donald Trumpas a model, and said, “What’s the point of buying a small rental property, ortwo or even three?  That’s nothingto Donald Trump.”  But just becauseyour journey may be different, that doesn’t mean you shouldn’t take it. Whenlooking at others’ success stories – remember, their starting point may bedifferent, they have a different path to take, but the important factor toemulate is the mindset that looks for opportunities small and big and makes themost of them one by one.Donald Trumplearned the real estate business first hand from his dad, Frederick, asuccessful developer in Queens and Brooklyn.  When ‘the Donald’ wanted to invest in Manhattan, his dadtried to discourage him. But Trump had a vision of what he could accomplish, hefelt he understood the risks, and was determined to go for it.  His mid-70’s transformation of theCommodore Hotel into The Grand Hyatt, not only made him a fortune and set him ona road to tremendous success, but it also completely revitalized a rundown areaof Manhattan.Few of us beginwith Trump’s assets or a dad like his for a mentor. Instead, we have to learn thebusiness on our own from the ground up. But we do have the ability to adopt theTrump mindset – the approach of a champion.  What does itentail? Doing your homework, understanding the finances, taking well-consideredrisks, planning every step, being prepared for challenges and dealing with them,capitalizing on success, learning from failures.  And to quote Winston Churchill, “Never, never, never, never giveup.”And little bylittle, step-by-step you will build your real estate business, write your ownstory, improve neighborhoods and achieve success your way. And you’ll be gladyou didn’t wait to become perfect before beginning your journey.

Market Update For the Week of October 8, 2012

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QUOTE OF THE WEEK... "Winning can be defined as the science of being totally prepared." --George Allen, American football coach INFO THAT HITS US WHERE WE LIVE... Many observers feel we should be totally prepared for the housing recovery to continue. A major real estate portal reports list prices UP 2.5% in September versus a year ago, the biggest year-over-year boost since the housing recession started. Excluding foreclosures, list prices were UP 3.5% from a year ago. From July to August, those prices were UP 0.5%, their eighth straight month of gains. These numbers are causing experts to predict that 2012 will likely record the first calendar year list price increase since 2006, as gains were seen in 74 of the top 100 U.S. metros.  A leading data aggregator reported national home prices in August UP 4.6% versus a year ago, the largest annual hike since July 2006. Their repeat sales index showed a 0.3% monthly price gain from July to August, which was the sixth straight month of both monthly and yearly gains. Another index, based on MLS data, expects September will continue its monthly string of home price gains, plus a 6.3% increase, year-over-year. BUSINESS TIP OF THE WEEK... The best way to build sales in a tough economy isn't to cut prices, it's to keep customers. And the best way to do that is to focus on great customer service! >> Review of Last Week STOCKS UP AMIDST MIXED ECONOMIC MESSAGES... Investors sent stock prices upward as they digested a spate of positive and negative economic data. The fun began with both ISM Manufacturing and ISM Services coming in above 50, indicating modest expansion for both sectors. Europe was less of a worry, as the European Central Bank reiterated its support for the euro and Spain said it didn't need a bailout just yet. But FOMC Minutes from the last Fed meeting pointed to downside economic risks. And August factory orders dropped 5.2%, their worst reading in over three years.  As a prime example of mixed messages, it would be hard to beat Friday's Jobs Report.There were only 114,000 nonfarm payrolls added in September, just 104,000 in the private sector. Yet the unemployment rate dropped from 8.1% to 7.8%! It was explained that the payrolls number comes from the Bureau of Labor Statistics (BLS) "establishment survey" of employers. But the unemployment rate is calculated from the volatile BLS "household survey," in which more than 800,000 people said they found work. However, two-thirds were part-time jobs. New weekly unemployment claims were up 4,000, to 367,000. For the week, the Dow ended up 1.3%, to 13610; the S&P 500 was up 1.4%, to 1461; and the Nasdaq was up 0.6%, to 3136.  Some economic data, plus less concern over Europe's fiscal problems, sent investors into riskier stocks. Bond prices consequently suffered. The FNMA 3.5% bond we watch ended the week down .81, at $106.27. But with the Fed buying $40 billion a month of mortgage bonds, national average fixed mortgage rates fell again last week, several to all-time record lows. Not surprisingly, applications for purchase loans were up a seasonally adjusted 4% over the week before. DID YOU KNOW?... The final estimate of GDP growth for Q2 was revised down to 1.3%, representing the slowest economic growth we've had in a year. >> This Week’s Forecast TRACKING THE DEFICIT, INFLATION, CONSUMERS... Analysts don't expect theFederal Deficit to shrink for September, no big surprise there. The end of the week will report wholesale inflation, with the Producer Price Index (PPI) forecast down slightly for September and Core PPI, excluding volatile food and energy prices, holding at a benign 0.2%. Michigan Consumer Sentiment is predicted to remain in surprisingly good territory, given the still slow growing economy. Wednesday, the Fed Beige Book will come out with observations of economic conditions in the 12 Federal Reserve districts. The U.S. Treasury market is closed today, in observance of Columbus Day. >> The Week’s Economic Indicator Calendar Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.  Economic Calendar for the Week of Oct 8 – Oct 12  Date Time (ET) Release For Consensus Prior Impact W Oct 10 14:00 Federal Deficit Sep NA –$62.8B Moderate W Oct 10 14:00 Fed Beige Book Sep NA NA Moderate Th Oct 11 08:30 Initial Unemployment Claims 10/06 370K 367K Moderate Th Oct 11 08:30 Continuing Unemployment Claims 09/22 3.275M 3.281M Moderate Th Oct 11 08:30 Trade Balance Aug –$43.8B –$42.0B Moderate Th Oct 11 08:30 Crude Inventories 10/06 NA –0.482M Moderate F Oct 12 08:30 Producer Price Index (PPI) Sep 0.8% 1.7% Moderate F Oct 12 08:30 Core PPI Sep 0.2% 0.2% Moderate F Oct 12 09:55 Univ. of Michigan Consumer Sentiment Oct 78.5 78.3 Moderate >> Federal Reserve Watch    Forecasting Federal Reserve policy changes in coming months... As long as the Fed keeps buying $40 billion a month of mortgage backed securities, you can be sure the Funds Rate won't be going anywhere. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.Current Fed Funds Rate: 0%–0.25% After FOMC meeting on: Consensus Oct 24 0%–0.25% Dec 12 0%–0.25% Jan 30 0%–0.25% Probability of change from current policy: After FOMC meeting on: Consensus Oct 24      <1 p="p"> Dec 12      <1 p="p"> Jan 30      <1 p="p"> UIE

What Your Agent Can't Do [Analyze This]

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by Osman Parvez
You can always blunder your way through a real estate decision, but just remember that we're talking about a decision committing hundreds of thousands - sometimes millions - of dollars to an single asset.    Are you sure you want to go in blind? 

Before signing your name on the dotted line, you should have the most recent market information.  In  my opinion, it's the only way to make an intelligent, informed decision about real estate.   Anything less is gambling.

Providing detailed, up-to-date market knowledge and sound advice based on years of experience is how I help my clients negotiate better.   My advice isn't based on my personal business activity, vague "feelings about the market," or generic headlines I read in the Daily Camera.  It comes from directly analyzing market conditions. 

Boulder Real Estate Update
Two weeks ago, I sent our latest market research to clients and friends.  Now I'm sharing it with  you.   The report below comes from the same set of skills I honed working as an investment analyst and economic consultant.   Skills and experience that most agents simply don't have. 

Deep market knowledge and insights;  it's how I can help you make a smarter real estate decision.



To get on my client-only mailing list and receive my reports when they're first published (and actionable), drop me an email at osman@silverfernrealty.com or better yet, call me at 303.746.6896. ---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.