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Boulder Real Estate Research
Boulder Real Estate Research
Boulder Real Estate Research
Boulder Real Estate Research
Boulder Real Estate Research
Boulder Real Estate Research
Boulder Real Estate Research
Boulder Real Estate Research
Boulder Real Estate Research
Boulder Real Estate Research
Boulder Real Estate Research
Boulder Real Estate Research
Boulder Real Estate Research
Boulder Real Estate Research
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Boulder Real Estate Research
Boulder Real Estate Research
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Boulder Real Estate Research

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The Silver Fern Report - August 2010

The Silver Fern Report - August 2010

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  • 1. THE SILVER FERN REPORT: Boulder An analysis of real estate market conditions in Boulder, Colorado August, 2010 Phone: 303 586 1241 | www.silverfernhomes.com
  • 2. 2 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Legal This presentation was prepared exclusively for the benefit and use of the Silver Fern Homes clients in order to assist their study of real estate market conditions. This presentation is for discussion purposes only and is incomplete without an in-person, oral presentation by Silver Fern Homes. This presentation reflects our views of prevailing market conditions on this date, which are subject to change. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. The following presentation is not to be construed as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment decisions derived from this presentation. Previous market performance is not a guarantee of future results and there is financial risk associated with buying or selling property. Consult with your financial, legal, and real estate advisers before making an investment decision. The data in this presentation was obtained by private and public sources, without independent verification.
  • 3. Boulder, Colorado Phone: 303 586 1241 www.silverfernhomes.com “Our goal is help you get the most value from your unique real estate situation. We offer our clients the latest market information, straight forward advice and the highest standards of service.” - Osman Parvez, Co-Founder
  • 4. 4 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 The Team Osman Parvez: Co-Founder and Associate Broker. Osman’s professional experience includes investment analysis, real estate development, and investment banking. He also loves being in the wilderness and has research experience studying the impacts of climate change. Osman holds an MBA in finance and a B.S. in Biology Email: osman@silverfernrealty.com ph: 303.746.6896 Dallice Tylee: Co-Founder and Managing Broker. She holds a GRI and CRS. Dallice is also a Certified Negotiation Expert, EcoBroker, and Accredited Staging Professional. A native of New Zealand, Dallice's attention to detail and thorough, disciplined approach comes from previous professional experiences in health sciences. She is passionate about interior design and landscaping. Email: dallice@silverfernrealty.com ph: 303.746.6765 Crystal Callipari: Associate Broker. Crystal’s experience as a real estate investor and home builder provides unique insight on buying, selling and marketing strategies. Prior to joining Silver Fern, she was a frequent client of the firm, giving her perspective on the quality of service clients should expect from their broker. Crystal has lived in Colorado for over 13 years with her husband. She has two grade school aged children, one of whom is a competitive figure skater and the other a black belt in martial arts. Email: crystal@silverfernrealty.com ph: 720.841.2701 Robbin Merta: Administrative Assistant. She has a B.F.A. in graphic design, experience owning several small businesses, and is studying for her Realtor's license. Her strong interest and experience in home renovation, both personally and professionally, is a practical complement to the Silver Fern team. She is a stained glass artist who also enjoys volleyball, cooking and martial arts. Email: robbin@silverfernrealty.com ph: 303.993.6139
  • 5. Spotlight: The Colorado Chautauqua Association Mission: to preserve, perpetuate and improve the site and spirit of the historic Chautauqua by enhancing its community and values through cultural, educational, social and recreational experiences. The Chautauqua experience is based on lifelong learning, love of nature, voluntary simplicity, and music, oration and the arts. Historic significance, traditions, cultural relevance, respite and enrichment are among the community benefits provided by the Colorado Chautauqua www.chautauqua.com Silver Fern donates 5% of every commission to local non-profits. 2009 Recipients: Boulder Shelter for the Homeless Colorado Chautauqua Association Greenwood Wildlife Rehabilitation Sanctuary Big Brothers Big Sisters I Have a Dream Foundation Circle of Care Growing Gardens Intercambio de Comunidades Wildlands Restoration Boulder Emergency Squad Boulder Day Nursery Citizens' Community Television 2008 Recipients: Archway Wildlife Rehabilitation Association for Community Living Big Brothers, Big Sisters Boulder Humane Society Boulder Shelter for the Homeless Front Range Center for Assault Prevention Greenwood Wildlife Rehabilitation Center I Have a Dream Foundation Circle of Care The Medicine Horse Program
  • 6. 6 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 City of Boulder Single Family Houses (detached dwellings)
  • 7. 7 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 House Inventory Rises • 527 houses were available for sale in the City of Boulder during July, about 4% higher than the previous month but well below last year. • Inventory remains above the long term average. • Inventory usually peaks in June and begins to decline in July. Not this year. • The pronounced dip in May was created by home buyer tax credits. This is “move forward” buyer activity. Boulder Inventory 300 350 400 450 500 550 600 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average ('04-'08) 2010 2009 Data: BARA© Silver Fern Homes Make a Smart Real Estate Decision. www.silverfernrealty.com
  • 8. 8 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 House Sales Volume Plummets • Only 49 homes sold in the City of Boulder in July, down 29% from last year. • Compared to the long term average, sales volume was down more than 50%. • Looking back over a longer period: during the past six months, 359 units sold, an increase of 26% from the same period a year ago. Boulder Sales Volume 0 25 50 75 100 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average ('04-'08) 2010 2009 Data: BARA© Silver Fern Homes Our Realtors Can Help You Understand The Market and Negotiate A Great Deal
  • 9. 9 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 House Absorption Rate Cliff Dive • Absorption is the percentage of properties that sell each month from available inventory. • It was 9.7% last month, a record low and about half the long term average for July. • Fewer than 1 in 10 listings found a buyer in July. Ouch. Boulder Inventory Absorption 0% 5% 10% 15% 20% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average ('04-'08) 2010 2009 Data: BARA© Silver Fern Homes Expert Advice, No Happy Talk. www.silverfernrealty.com
  • 10. 10 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 What’s Under Contract? • Inventory under contract is a look at houses that will likely close in the near future (generally within 30 days). • As the season ends, the entry level is experiencing a dramatic reduction in demand while homes priced from $450,000 to $600,000 are experiencing increased demand. • Experience working with buyers suggests that the tax incentives mostly impacted lower priced homes. The credit was particularly meaningful for first time buyers. Now expired, this possibly explains the dramatic reduction in activity at the entry level. Price Range Analysis Percent Of Inventory Under Contract Boulder Houses 0% 10% 20% 30% $300 to 350K $350 to 400K $400 to 450K $450 to 500K $500 to 600K $600 to 700K $700 to 800K $800 to 900K $900 to 1MM $1.0 to 1.5MM May July August © Silver Fern Homes
  • 11. 11 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Sales Volume Breakdown • This chart shows sales volume from the first two quarters and July. • Sales volume has been highest at the mid-range of the market. The $450,000 to $500,000 tranche saw the most activity in July. Price Range Analysis Sales Volume Boulder Houses 0 10 20 30 40 50 $300 to 350K $350 to 400K $400 to 450K $450 to 500K $500 to 600K $600 to 700K $700 to 800K $800 to 900K $900 to 1MM $1.0 to 1.5MM 1Q 2Q July © Silver Fern HomesStraight Talk, Honest Advice. www.silverfernrealty.com
  • 12. 12 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Inventory by Price Range • This chart shows inventory by price range. The gray bars are inventory levels as of May. The blue bars are current inventory (August). • Several price tranches experienced dramatic increases, most notably homes priced from $350,000 to $400,000. • Historically, the entry level has seen the most intense demand. Currently this segment has surprisingly high inventory, a likely artifact of the now expired tax credits. Good news for buyers. Bad news for sellers. Price Range Analysis Inventory Boulder Houses 0 15 30 45 $300 to 350K $350 to 400K $400 to 450K $450 to 500K $500 to 600K $600 to 700K $700 to 800K $800 to 900K $900 to 1MM $1.0 to 1.5MM May August v © Silver Fern HomesLet's Talk Strategy. www.silverfernrealty.com
  • 13. 13 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Inventory by Price Range • This chart illustrates how the price tranches are behaving in current market conditions. • The $350,000 to $400,000 tranche has experienced inventory levels rising more than 200% from May. Price tranches from $600,000 to $800,000 have also experienced substantial inventory increases, but nothing close to the entry level. • This price range analysis is also available for properties valued above $1.5MM. Contact your Silver Fern Realtor for more information. Price Range Analysis Percent Change in Inventory Boulder Houses (May to August) -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% $300 to 350K $350 to 400K $400 to 450K $450 to 500K $500 to 600K $600 to 700K $700 to 800K $800 to 900K $900 to 1MM $1.0 to 1.5MM Percent Change v © Silver Fern HomesMake a Smart Real Estate Decision. www.silverfernrealty.com 208%
  • 14. 14 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Time After Time 2455 Bluff Street Key Statistics: 3 Bed, 4 Bath 2,008 SQFT Sold: 7/30/10 Days On Market: 130 Sold: $746,500 % of Original Asking : 93% A succession of buyers have rolled the die and hoped to make some money on this house. Spec’d and sold in 2006 and then again in 2008, 2009, and now 2010. With fees, not likely at breakeven. Notable Sales A Million Off Sale? 2895 Stanford Ave Key Statistics: 4 Bed, 4 Bath 6,430 SQFT Sold: 7/30/10 Days on Market: 475 Sold: $1,700,000 % of Original Asking : 63% Even the most stubborn sellers eventually capitulate to Mr. Market. Another beautiful, high- end spec project with all the bells and whistles that went awry. Left Money On The Table 420 S. 43rd Street Key Statistics: 5 Bed, 2 Bath 2,700 SQFT Sold: 7/01/10 Days on Market: 42 Sold: $325,000 % of Original Asking : 99% Seriously underpriced and under contract in 3 days. Basic ranches go for more in Martin Acres. This one was on a quiet street in the central part of the neighborhood and included a full basement. Oops.
  • 15. 15 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 City of Boulder Town Homes and Condos (attached dwellings)
  • 16. 16 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Town Home & Condo Inventory FLAT • 464 units were available for sale in July, 1 more than last month. It’s unusual to have stable inventory levels for three months in a row. • On average, inventory peaks in June. This year it occurred in April. • Inventory remains well below the long term average, a surprising fact but most builders do not put their full available inventory on the MLS. Boulder Attached Dwelling Inventory 300 350 400 450 500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average ('04-'08) 2010 2009 Data: BARA© Silver Fern Homes Note: developers do not list full inventory on the MLS. True inventory is substantially higher. Serious Negotiation. www.silverfernrealty.com
  • 17. 17 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Town Home & Condo Sales Volume CRASHES • 36 units sold in July, down 64% from last year. • Over the past six months, 375 units have sold, 2% more than the same period a year ago. • Town home and condo sales are expected to continue to comprise an increasing share of the Boulder real estate market. This is driven by increasing buyer interest in lower maintenance living. Boulder Attached Dwelling Sales Volume 0 20 40 60 80 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average ('04-'08) 2010 2009 Data: BARA© Silver Fern Homes It's Your Money. www.silverfernrealty.com
  • 18. 18 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Town Home & Condo Absorption DISMAL • The absorption rate was 7.8% in July, less than half of last year’s level. • This is the aftermath of “move forward” stimulus activity. • With flat inventory, this points to more selection and increasing buyer leverage in negotiation. • Sellers entering the market are advised to select Realtors based on their current market knowledge and marketing ability, not happy talk on price. Boulder Attached Dwelling Absorption 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average ('04-'08) 2009 2010 Data: BARA© Silver Fern Homes Silver Fern Realtors Can Help You Understand The Market and Negotiate A Great Deal
  • 19. 19 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Town Home & Condo Sales Volume • With only 39 sales, the market was very thin in July. • The chart shows sales priced below $600,000 (where the vast majority of sales occur). • Units priced from $200,000 to $300,000 led the way, with 14 sales. • Above $600,000, 3 units sold (not shown in the chart) with One Penn Place, The Arette, and The Walnut each notching a closing. Price Range Analysis July Sales Volume Attached Dwellings 0 1 2 3 4 5 6 7 8 $0 to 100K $100 to $150K $150 to $200K $200 to $250K $250 to $300K $300 to $350K $350 to $400K $400 to $450K $450 to $500K $500 to $550K $550 to $600K © Silver Fern Homes Silver Fern Realt ors Can Help You Underst and The Market and Negot iat e A Great Deal
  • 20. 20 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Town Home & Condo Sales Volume • This chart adds sales from July to the 1st and 2nd quarters of this year. • The $150,000 to $200,000 tranche comprises the highest volume, roughly half the price of the entry level house in Boulder. • The luxury end of the market is still hobbling along, with 36 sales this year priced above $600,000 (not shown on the chart). Price Range Analysis Sales Volume Attached Dwellings 0 20 40 60 80 100 120 $0 to 100K $100 to $150K $150 to $200K $200 to $250K $250 to $300K $300 to $350K $350 to $400K $400 to $450K $450 to $500K $500 to $550K $550 to $600K Q1 Q2 July © Silver Fern Homes Silver Fern Realt ors Can Help You Underst and The Market and Negot iat e A Great Deal
  • 21. 21 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Town Home & Condo Inventory • This chart shows how inventory levels have changed from May (pink) through August (gray). • For buyers, selection has increased in price ranges from $150,000 to $250,000. • From $250,000 to $400,000, fewer units were available in August than July (blue). • The lowest priced units have seen a substantial inventory drop. Price Range Analysis Boulder Inventory Attached Dwellings 0 10 20 30 40 50 60 70 $100 to $150K $150 to $200K $200 to $250K $250 to $300K $300 to $350K $350 to $400K $400 to $450K $450 to $500K $500 to $550K $550 to $600K May July August © Silver Fern Homes Silver Fern Realt ors Can Help You Underst and The Market and Negot iat e A Great Deal
  • 22. 22 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Town Home & Condo Inventory • This chart shows how inventory has changed on a percentage basis from May to August (essentially the peak real estate season). • The $200,000 to $250,000 and the $550,000 to $600,000 tranches have seen the largest inventory increases, 62% and 38%, respectively. • The $100,000 to $150,000 and $500,000 to $550,000 tranches have seen decreases of 37% and 50%, respectively. • These changes are attributable to asking price declines, withdrawn or expired listings, and yes, the occasional sale. Price Range Analysis Inventory Attached Dwellings Change from May to August -60% -40% -20% 0% 20% 40% 60% 80% $100 to $150K $150 to $200K $200 to $250K $250 to $300K $300 to $350K $350 to $400K $400 to $450K $450 to $500K $500 to $550K $550 to $600K © Silver Fern Homes Silver Fern Realt ors Can Help You Underst and The Market and Negot iat e A Great Deal
  • 23. 23 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Town Home & Condo % Under Contract • Inventory under contract is a forward look at property that is likely to close in the near future (generally within the 30 days). • Overall, a relatively small percentage of inventory is under contract. • $300,000 to $350,000 is currently the strongest tranche, with buyers putting more than 30% of inventory under contract. Price Range Analysis Boulder Percent Of Inventory Under Contract Attached Dwellings 0% 5% 10% 15% 20% 25% 30% 35% $100 to $150K $150 to $200K $200 to $250K $250 to $300K $300 to $350K $350 to $400K $400 to $450K $450 to $500K $500 to $550K $550 to $600K 8/22/10 © Silver Fern Homes Silver Fern Realt ors Can Help You Underst and The Market and Negot iat e A Great Deal
  • 24. 24 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Gold Run 2902 Shadow Creek, #304 Key Statistics: 2 Bed, 2 Bath 1,003 SQFT Sold: 7/07/10 Days On Market: 163 Sold: $246,875 % of Original Asking : 90% On the creek path, near CU and 29th Street, and popular with students and young professionals. Too bad it catches fire every now and then, but sprinklers are likely in the future. This one was a penthouse unit with an elevator. Boulder: Notable Sales Land Lease 350 Arapahoe, Unit: 19 Key Statistics: 2 Bed, 2 Bath 851 SQFT Sold: 7/02/10 Days on Market: 571 Sold: $33,000 (not a typo) % of Original Asking : 22% Land leases come with financing issues and uncertain risk. Add $9,500/yr for the lease and $230/month HOA. Awesome location but dropped to unbelievable $39/SQFT to find a buyer. Add some head scratching for due diligence. Beats A Dorm 2870 E. College Ave #104 Key Statistics: 1 Bed, 1 Bath 792 SQFT Sold: 7/16/10 Days on Market: 79 Sold: $235,000 % of Original Asking : 96% One of three similar units that closed in July, with prices that range from $297 to $373/SQFT. What accounts for the difference? Hate to be the guy who bought the small one for 26% more.
  • 25. 25 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Neighborhoods: Newlands • There is no formal definition of the neighborhood. For purposes of this analysis, the search area was bounded by Alpine to the south, Broadway to the east, and Linden to the north. This is the blue shaded area of the map. • Note: some homeowners north of Iris might claim to belong to Wonderland Hills. Yes, the lot sizes are larger on Juniper, Kalmia, and Linden, but "the hill" in Wonderland Hills doesn't really begin until north of Linden. Research Spotlight
  • 26. 26 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Neighborhoods: Newlands • The chart shows sales volume over the past six months in Newlands. The same time period is shown for the past four years. • This year broke the trend, with sales volume increasing 100% from last year’s level. • Despite the increased activity, volume remains below the level in 2007, which itself was not a particularly great year for Boulder Real Estate. Research Spotlight Sold Houses in Newlands Last Six Months (Feb-July) 0 5 10 15 20 2007 2008 2009 2010 data: IRESIS Down 33% Down 38% Up 100%
  • 27. 27 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Neighborhoods: Newlands • This chart compares sales volume over the past six months to recent inventory levels. • As the season winds down, inventory remains at nearly twice the level of what sold over the past six months. Research Spotlight Sold vs Inventory of Houses in Newlands 0 5 10 15 20 25 30 35 Sold (L6M) Inventory (8/13) data: IRESIS
  • 28. 28 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Neighborhoods: Newlands • Market performance can differ wildly by neighborhood. This chart shows how Newlands compares with all of Boulder and with Martin Acres. • Martin Acres, which has a high percentage of entry level homes, not coincidentally also has an exceptionally low supply of inventory. Newlands has nearly 3x the supply of inventory. Research Spotlight Months of Inventory 0 2 4 6 8 10 Newlands All Boulder Martin Acres data: IRESIS
  • 29. 29 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Neighborhoods: Newlands • This chart depicts the price distribution of current inventory and listings that sold over the past six months. • The red circle highlights a glaring problem: nothing sold over $1.4MM in Newlands over the past six months, yet a large volume of homes remains available. It’s a clear indication of downward price pressure at the high- end. • If Silver Fern was representing a higher-end buyer in Newlands, this would be presented to the seller accompanying our initial low offer. Research Spotlight Price Distribution in Newlands $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 Inventory Sold (L6M) data: IRESIS
  • 30. 30 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Neighborhoods: Newlands • This chart shows price distribution of sales in Newlands over the last six months and the same time period for the previous three years. • Adding weight to the argument that prices will come down for high-end properties in Newlands is the fact that little has sold while inventory remains high (see last slide). • The density of sales between $600,000 and $800,000 suggests a support for pricing but unless demand increases materially at the high-end, prices should continue to erode from the top down over the long-term. Research Spotlight Sold Price Distribution in Newlands $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 2007 2008 2009 2010 data: IRESIS
  • 31. 31 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Neighborhoods: Newlands • Failed listings are those that automatically expire from the MLS at the end of the contract term or are pulled off the market by sellers (usually due to lack of buyer interest). • Looking back over the past six months, the number of failed listings fell somewhat this year. • 2009 was an unhappy year for a surprising number of sellers in Newlands. Research Spotlight Failed Listings in Newlands Last Six Months (Feb-July) 0 5 10 15 2007 2008 2009 2010 data: IRESIS
  • 32. 32 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Neighborhoods: Newlands • Adding sales volume to the previous chart shows that there were more failed listings than successful closings last year. • This year has been somewhat better, but the failure to success rate is still dismally low. • We reiterate: choose an agent who adds value to the transaction. The agents at Silver Fern will help you understand the market and advise you on how to get maximum value. Research Spotlight Listings in Newlands Last Six Months (Feb-July) 0 5 10 15 20 2007 2008 2009 2010 Sold Failed data: IRESIS
  • 33. 33 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Neighborhoods: Newlands • The chart shows the average and median negotiated discount (from last asking) in Newlands over the last six months. The same time period is shown over four years. • As market conditions weaken, negotiation leverage shifts to buyers. • Agents have been able to negotiate steeper discounts and buyer expectation for larger discounts is increasing. • For buyers, our goal at Silver Fern is to do better than “average.” Research Spotlight Negotiated Discount in Newlands Last Six Months (Feb-July) -7.0% -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 2007 2008 2009 2010 Median Average data: IRESIS
  • 34. 34 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Months of Inventory • 5 to 6 months of inventory is considered a normal or “healthy” market. • As expected, with the expiration of the buyer tax credit, inventory has climbed in nearly all local markets. Superior is the exception. • The largest relative increases in inventory have been in the Boulder Attached Dwelling and Broomfield markets. Research Spotlight Months of Inventory 0 2 4 6 8 10 12 14 Boulder Boulder AD Broomfield Erie Lafayette Longmont Louisville Superior 3 Mo. Avg Latest Month www.silverfernhomes.com data: BARA based on:
  • 35. 35 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Lessons from the Trenches On Pricing: • Sellers: before listing, pay obsessive attention to your home’s competition. At Silver Fern we carefully review other homes a buyer might consider before establishing a marketing plan. On Negotiation: • Primary negotiation occurs with the offer. Knowledge of recent closings, when properly communicated, adds leverage for buyers seeking a large discount from the asking price. On Inspection Resolution: • It’s reasonable to expect concessions for serious flaws uncovered through the buyer’s property inspection, however this is not generally a second round of negotiation. Get the price settled during the primary negotiation. • Trivial inspection items are usually not addressed in resolution. Focus on the big ones.
  • 36. 36 THESILVERFERNREPORT:AUGUST2010 www.silverfernhomes.com ph: 303 586 1241 Get A Great Deal • Buying or selling a home is one of life’s largest financial decisions. Shouldn’t you have a professional adviser? • We believe agents should add value and earn their commission. The sooner we get started, the more we can help. • Give us a call. The real estate experts at Silver Fern Homes can advise you on current market conditions, help you find the right home, and negotiate the best possible deal. • We work with buyers and sellers throughout Boulder County and beyond, including international relocations.

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