Dan Polimino's Blog

If you have been reading my columns these past months, you would know I have been talking about the Denver real estate market converting to a seller’s market. In keeping with that theme, I wanted to pass along some tips to frustrated buyers who are getting outbid for the homes that they want. There are some things that any buyer can do to put themselves in better position to win the home. Here are a few ideas:

1) The majority of buyers look at homes on weekends. So it’s no surprise that listing agents get multiple offers on weekends. If possible, try to look at homes in the middle of the week. If you can go and look at homes during the day when most people are at work, it would be even better. I understand you make an offer when you feel the time is right, but also understand that when you do it on the weekend or nights after work, there’s a good chance that someone else will be doing the same thing.

2) You must have your ducks in a row. Buyers must be prepared to pull the trigger and write a contract when they least expect it. That means that you must be pre-approved by a lender and have your lender letter ready to go with your offer. You must also have your earnest money deposited in your account so you can submit a check with your offer. Finally, you must be sure of your terms and timing so your agent can prepare an offer quickly and have it submitted.

3) Be prepared to go over the ‘asking price.’ I know that this is difficult to come to terms with, but yes, homes are selling again over the asking price. The key thing to remember is not to get caught up in the moment. Offer a reasonable amount over the asking price, because if you offer too much and are getting a loan, it may not appraise. If it doesn’t appraise for the purchase price, then you will be paying the difference between the appraised price and the purchase price as cash at closing.

4) You can use an escalating clause. This can be written in the additional provision, saying something to the effect that “the buyer would be willing to pay_____ (amount) over the highest written and signed offer.” The key here is to state the amount you would be willing to pay over the highest offer. The second key is to make sure that you are only paying higher than actual written and signed offers in possession of the listing agent.

Let me know how this works and happy house hunting.

Dan Polimino is an Owner/Broker with Keller Williams Realty DTC. He can be reached at dan@coloradodreamhouse.com  and www.coloradodreamhouse.com/denverpost

This week’s column is dedicated to my brethren in real estate. I know that many of you read this column on a weekly basis. I know this because of your continued emails and phone calls, or in the course of doing business together. I am always flattered when a fellow agent contacts me to tell me how much they enjoy reading my column. I equally appreciate it when fellow agents contact me and tell me how much they disagree with what I write in my column. We may not agree on every topic I write, but I always humbly recognize your opinion and I appreciate you taking your time to write to me. More importantly, I appreciate you reading my column.

Recently in my new position, I have been speaking with a lot of agents about the state of their business. I heard from one colleague that had 26 properties under contract, another had 15, and yet another had 20. Even my fellow luxury agents are boasting the same type of numbers. My team, The Colorado Dream House Team, has enjoyed the same success this year and I think that we are poised to have our best year in the last five years. It seems as though as the song says, “Happy Days Are Here Again,” that real estate agents in Denver have reason to celebrate and I could not be more thrilled for all of you.

If you were able to weather the storm for the past four years after the worst real estate crash in the history of our nation, then you are to be applauded. I know it was not easy to keep a smile on your face, keep the lights on, put food on the table, and sell real estate in that environment. I know that many of you burned through your entire savings and retirement funds just to keep you and your family afloat. If you are still standing today and selling real estate, you are a success story. More importantly, if you are starting to reap the benefits of a better market, then you deserve every bit of it.

Jonathan Tisch is the Chairman of Loews Hotels and the author of three best-selling books on leadership. In his book “The Power of We,” Tisch talks about his philosophy that he never felt he had a competitor in the hotel business. Tisch never tried to compete against another hotel chain; instead, he tried to find a way to work with other hotel chains. His philosophy was, “There is enough business for everyone to succeed.” As such, no one was a competitor for Tisch; rather, everyone was an opportunity to work together and succeed.

I share the same philosophy and feel the same way about all of you. Congratulations to you and your business. I look forward to partnering with you in the future.

Dan Polimino is an Owner/Broker with Keller Williams Realty DTC. He can be reached at dan@coloradodreamhouse.com  and www.coloradodreamhouse.com/denverpost

Chances are, if you own a business or you were ever an employee, you may have been asked to take a personality assessment. As an owner of Keller Williams Realty DTC and a partner of The Colorado Dream House Team, we often have the new recruits take a D.I.S.C. (Dominance, Influence, Steadiness, Conscientiousness) assessment test. It‘s a quick personality test that will tell me a lot about how someone communicates. I also get to know their likes, dislikes, and how I might relate to him or her.

After a short series of questions, the test is scored and an individual will come out either a “D,” an “I,” an “S,” or a “C.” However, it is more likely to result in a combination of two, three, or four of the personality traits. In most cases, a person tests to be dominant in one category more than another. Here is what each letter represents:

* Dominance: Direct to the point, decisive, and bottom line oriented.

* Influence: Optimistic and outgoing, often highly social.  

* Steadiness: Empathetic and cooperative. Typically a team player; supportive, and helpful to others 

* Conscientiousness: Concerned, cautious, and correct. These individuals are often focused on details and quality.

When I took the test, I came out as a “High D” with some “C’s” on it. If you would ask my friends, I am all “D” with no “I,” “S,” or “C” in my gene pool. For the most part, that’s accurate and reflects my personality since I am a very bottom line type of guy. So how does this apply or matter to people buying and selling homes?

We often talk about consumers making sure that they should have a good rapport with the agent they selected to represent them. My business partner Gary Lohrman and I often joke with costumers saying, “If you want a short and to the point conversation, then call Dan. If you want to talk about your day, the kids, or even the weather, then call Gary.” You see, Gary is a “High I.” He loves being social and that’s his DNA. In fact, if we could give each one of our customer a D.I.S.C test, we would. I am sure it would be an easier transaction for everyone because we would be able to match up the seller or buyer that best fits with either my personality or Gary’s.

I know that this is not a “change the real estate market” kind of news, but it does give us great insight on how to relate to buyers and sellers so everyone has a pleasant experience. If you are a “High I” and have an agent that is a “High D,” chances are, the two of you are having a tough time communicating.

Dan Polimino is an Owner/Broker with Keller Williams Realty DTC. He can be reached at dan@coloradodreamhouse.comand www.coloradodreamhouse.com/denverpost

As always, accurate information is critical to help you manage your finances. While we all know the importance of a good credit score, the many factors that determine a good credit score are often not understandable to the average consumer. When questions come up about what happens when a person gets married or divorced, I see a lot of myths and inaccurate information.

The experts at Advantage credit have done a great job addressing this subject. The best explanation I have seen on this is at http://www.advcredit.com/ under Yours, Mine and Ours: Marriage, divorce and credit.

Your questions and comments are always welcome.

Chip Allen

Crestline Mortgage Bankers

A Division of Universal Lending Corp                                   

Direct: 303.947.2109

Fax: 303.987.0676

Loanchip@hotmail.com

Colorado Mortgage Broker License # 100019831

NMLS# 378621

Your Lender for Life!

When people you care about need a mortgage,

for purchase or refinance, please do not keep me a secret. 

Since the real estate market crashed in 2008, the best position to be in would have been a buyer’s agent. After all, for the last five years, buyers have been in the driver’s seat in Denver. They had the low interest rates, low prices, and plenty of choices in homes. Since there were so few of them, they could name their price and get it. In essence, they had all the power while the sellers had none, and boy did the sellers feel it.

Fast-forward to present day and it’s a whole new world in Denver. Being a buyer’s agent in Colorado is not much fun right now. If you are currently a real estate agent, you know what I am talking about. It’s getting pretty hard to get a home under contract for the buyers that you are representing. At least 7 out of the last 10 buyers I had been working with got into multiple offer scenarios. The majority of homes we were trying to buy are getting two, three, or more offers at the same time. In the lower price ranges (300K and below) some sellers are getting higher than asking price and buyers are getting frustrated. It’s not like the buyer can just move on to their second choice, because there is no second choice. There are so few homes on the market with more buyers everyday it’s becomes a bidding war.

I looked at the stats from Metrolist for March 2011 versus March 2012. Two things jumped off the page: Firstly, inventory across the board for all price ranges was down 53.4 percent from March 2011; Secondly, when you look at how many “month’s supply of homes” it fell down from 8.7 to 3.4. It’s a competitive market.

For most of my career, I have been known as a seller’s agent. My business partner Gary Lohrman and I usually represent 25-45 sellers at a time. We can easily handle these many properties because we have seven people on our team so the news above is music to our ears. What it means to us is that for the first time in five years as a seller’s agent, we are finally on the right side of the equation. There’s no more getting beat up by buyers and their agents. These days, we manage the multiple offers for our sellers and we get them the highest price possible. In some cases as I mentioned, we get over the asking price.

I have been waiting to say this for five years. I know some people are afraid to say it and still others disagree, but I am going to say it anyway… ”IT’S NOW A SELLER’S MARKET in some of the price ranges!”

Dan Polimino is an Owner/Broker with Keller Williams Realty DTC. He can be reached at dan@coloradodreamhouse.com  and www.coloradodreamhouse.com/denverpost

"Did you know that Denver is No. 2 in the nation for the shortest length of time a home is listed (33 days) before being sold?

Here are the facts (March 2012/March 2011):

1) The Number of Sold Properties is up 4.2% over last year. (3,514/3,371)

2) The Number of Properties for Sale is down 53.4%! (13,246/28,440)

3) The Average Days on Market is down 11.7% (91/103)

If you are in the market looking for a home, it is extremely important to have the very best experts on your side! The Colorado Dream House team is here to help you find your dream house of choice. If you are interested in buying, selling or investing in real estate, contact us today. http://coloradodreamhouse.com"

Buyers must act fast to get dream home. By Steve Raabe The Denver Post.

New advice from the trenches on buying a home: Look early. Think fast. Hone your quick-draw skills with the checkbook.

Metro Denver’s real estate market, not long ago a buyer’s domain, suddenly has shifted to a seller’s paradise, at least in some neighborhoods and price ranges.

Realtors’ offices are rife with fresh anecdotes of sellers happily cherry-picking from multiple offers - some of them above the asking price.

How fast is the market moving? A new report shows that Denver is No. 2 in the nation for the shortest length of time that a home is listed before being sold - 33 days - far below the national median of 89 days.

Until recently, prospective buyer Patty Kupfer had viewed shopping for a home as a weekend diversion. You know, tell your broker that you’re available, say, from 2 to 4 p.m. on Saturday.

Hah.

“There’s no such thing anymore as a weekend home tour,” Kupfer said this week. “Because if you wait till the weekend, nothing’s going to be there. If you’re just looking casually, you’re not really in the market.”

Kupfer, managing director of a nonprofit immigration-reform organization, said she has adjusted her approach in the face of vigorous competition from other buyers.

“Every house I’ve looked at has gone under contract within 48 hours,” she said. “This has forced me to be more serious about it. The very next house that seems like a good fit, we’re going to visit it that very day (it’s first listed).”

In recent months, buyer demand has surged and the number of homes for sale in metro Denver has dropped sharply.

Unsold homes on the market totaled 10,325 at the end of March, a 42 percent drop from March 2011.

The result is that for some neighborhoods and some price ranges, homes are in short supply and selling fast.

In particularly high demand are homes priced from $250,000 to $400,000 and in central Denver neighborhoods such as Park Hill, Congress Park, Curtis Park, Mayfair and the Highlands, said Michelle Ackerman, Denver-area manager and broker for Redfin.

Even though metro Denver homes have shown only marginal price appreciation so far this year, realty analysts say strong demand and multiple offers could soon push values higher in lower to moderate price ranges.

One factor that makes price predictions difficult is foreclosures.

Lenders hold an estimated 1,650 foreclosed properties in metro Denver that haven’t been put on the market, according to data compiled by Redfin. As the market strengthens, more foreclosures will be listed for sale, which in turn could slow down price appreciation.

Sellers of homes listed for more than $500,000 generally aren’t enjoying the market heat.

“Once you move above $500K, inventory widens dramatically and prices are still down, and arguably falling,” Ackerman said.

Elsewhere, inventories are low and urgency among buyers is high.

Joshua Kurdys and Ileana Sadin, recent arrivals to Denver from State College, Pa., found the Denver market to be an exercise in frustration.

“You’d go out and see five or 10 houses, and the one house that was decent would be snatched up immediately” by other buyers, Kurdys said.

After several failed offers in central Denver neighborhoods, the couple decided to expand their geographic parameters, accelerate their pace and be willing to bid higher.

“It was very apparent that if we didn’t make an offer at very close to asking price, we weren’t going to get it,” Kurdys said.

The strategy worked. They recently targeted a newly listed home in Curtis Park, made a 9 a.m. appointment to see it and submitted an almost full-price offer the same day. They now have it under contract.

What can be a frustrating endeavor for buyers is a pleasant relief for sellers.

Connie Ulrich was anticipating the worst in attempting to sell her three-bedroom home in the Northbrook subdivision of Thornton.

But within a month of listing the home, she’d had 34 showings.

“We had so many showings, it was just insane,” she said. “I never expected it to be so busy.”

Listed at $254,000, the home now is under contact for $256,000.

“There is a shortage of good product,” said broker Rhonda Knop of Distinctive Properties. “If it’s priced right and shows well, it is selling.”