My Blog

Perception vs. Reality in Real Estate Negotiations

You have probably seen the attached picture before - is it a picture of a young women or an old women? The answer is it depends on how you are looking at it. How you perceive it.

 

One definition of reality is: "all of your experiences that determine how things appear to you". I agree with this on many levels - I believe you make your own reality and what you know and believe as well as your past experiences effect what is "real" for you. A slum dweller in India has a much different reality than a socialite living in Beverly Hills.

 

The key word in the definition above is experiences. I submit that this definition is not as true as it once was. Don't worry, I will tie in to real estate in a moment.

 

In the past (B.C. through the 19th century), reality was based on what one actually experienced. All inputs to opinion were very localized. For example, when there was a famine, chances were that you were hungry. Perceived reality equaled actual reality. There were no outside forces to sway your perception.

 

During the last century, technology in all of its forms have provided us a wider set of inputs. I guess this is called globalization. We have access to and know more about more subjects. Where we used to just be concerned with our local experience, we now are fed data on an ever-broadening spectrum of subjects. Google (verb) whatever subject you can imagine and have instant access to other's research and opinion's. It is no longer our own experiences that form our perceived reality it is the experiences and knowledge of others.

 

My point is that our perceived reality may not always equal our actual reality due to the influence of non-localized information. I run into people all the time who can't believe the sorry state of our real estate market. The problem is that they have no actual experience with the market, their perceptions are based on outside information. When people come in from out-of-town, (or locals who have not been paying attention to the trends) they assume that values have dropped at least 20%.  When in fact they have remained relatively stable over the past 5 years.  They come from that paradigm when they submit very low offers.  It is easy for sellers to realize that these low ball offers do not fit with the market.

 

Right now, the media has plenty of negative news to report. There is blood in the water and the sharks are in a frenzy. Foreclosure's in CA, value loss in Michigan, empty buildings in Florida, etc. Bad news all around, a fact. The problem is that people take that news and equate that news to all other areas. The message is that the market is bad, the conclusion is that the market is bad everywhere.

 

I get asked all the time what a reasonable offer would be.  My answer depends upon many factors but hard data also helps bring a good perspective to the negotiations.  Over the last year in Boulder County, real estate transactions have had the following average negotiation percentages in each price range:

$0 - $250k       3.15%    (1,307)

$250 - $500k    2.95%    (1,550)

$500 - $750k    3.99%    (498)

$750 - $1 MM    5.24%    (141)

$1 - 1.25MM      8.2%     (58)

$1.25 - $1.5MM  8.35%   (35)

$1.5 - $2MM      9.9%     (22)

>$2MM              8.65%   (23)

Numbers in parenthesis represent the number of sales in that price range.

Perception does not always equal reality. While the market in Boulder County is not stellar, it is much better than what you would think by listening to the news. Prices are holding, properties are selling and foreclosures are not a big part of our market. We are very lucky and I'm spreading the word! When you are ready to buy or sell give me a call. I'm here to help. Neil 303-818-4055

 

 

News Coverage for 749 15th Street

My listing at 749 15th Street is creating quite the buzz today.  The Daily Camera ran a short story that the house went on the market recently and once it hit the wire I started receiving calls from all corners of the media.  First a local radio station called, then a TV station.  Below is that segment.

I am pleased to be listing this fine home.  It is absolutely beautiful and is a very large unique home which combines the craftsmanship and charm of a 1920's home with all of the upgrades and conveniences you expect in a modern home.  I am focussing on the house and what a great opportunity it will be for the next owner.  We have priced the home competitively and the current owners continue to make upgrades.  As I watched the photos from 15 years ago come across the screen last night I couldn't help but notice how the house had changed.  For the better.  It has been loved, well maintained and is staged and ready for that next buyer who is ready to write the next chapter in this lovely home.  For more details on the house go to the property website I have prepared at www.749-15th.com

 

 

 

New Listing -2083 North Fork Drive - Lafayette

To view the website for this listing click here.

WOW! Immaculate and inviting with a great location looking out on a private undeveloped area with trees & grass. Gleaming oak floors, stainless steel appliances, great light, perfect condition. Prof. finished basement includes a half bath, laundry area, & built-in shelving in 3rd bedroom. Bedroom is currently set up as an awesome home theater (all incl.) Private courtyard. Compare with single family. Tons of upgrades including appliances, wood blinds, lights, flooring and finished basement. 

January 2011 Boulder Real Estate Statistics

 

January 2011 Boulder County Real Estate Statistics

View more presentations from NeilKearney.

 

The numbers for January look good.  Usually January is one of the slowest months for activity in the Boulder real estate market but this year we are up 19% compared to last year.  Not bad since last year the tax credit was in full swing.  Inventory continues to be very low as the bulk of new listings are yet to come on the market.  Showings in my office were up dramatically during January and there are definitely buyers out there looking.

Winter Wonderland - Boulder Style

The Flatirons behind Shanahan Ridge

I was driving just south of Table Mesa today and had to pull over to capture this shot.  It was a beautiful, cold winter day and the Flatirons covered with snow created a perfect backdrop for Shanahan Ridge and the cows grazing in the meadow just west of Highway 93.

New Listing - 2242 Holyoke Dr. Boulder, CO 80305 $675,000

For the complete story on this listing go to www.2242Holyoke.com

Check out this very comfortable updated ranch style home on one of Table Mesa’s most coveted streets. This home has many special features including: large, updated, open, eat-in kitchen with a huge granite topped island; wide plank wood floors; spacious full finished basement; two fireplaces; great looking stone paver driveway and a well done xeriscaped front yard. Enjoy the outstanding location right below NCAR from the charming front porch.

Worn Listing? How to Sell a House That Has Been on The Market for Over Six Months

The end of January is when the real estate market in Boulder Colorado just starts to get moving.  New listings are coming on the market full of hope.  But what if you have been on the market for awhile?  Here are a few tips to make sure you haven't lost your showing edge.  

Here is the typical scenario; During the first few weeks it is common to have many showings because there is a pool of buyers waiting for new listings. Once the initial few weeks have passed that the showings slow considerably and only new buyers to the market set up showings. So what if your house was not priced correctly or did not otherwise compare well with the competition and remains on the market without offers or interest. I have recently shown homes that have been listed for close to a year. What if you own one of these homes and need to get the house sold. Here are some ideas:

 

1. Lower the price - The market has spoken and if your home has not sold in a reasonable time as other homes in the neighborhood get listed and sold, your price is too high.


2. Make the house look better - Sometimes you have to spend money to make money. Take an objective look at your house, maybe it needs a paint job, some new counter tops or a replacement for the green shag carpet. I have nothing against green shag, I grew up with green shag. I love it, you love it but buyers DO NOT love it.


3. Do some staging - Maybe you have all the pieces, but they are all in the wrong places. A little staging goes a long way in making that all important first impression.


4. Make sure your curb appeal is the best on the block - Do some landscaping, buy some flowers, or this time of year make sure the snow is shoveled.

All About Boulder's Chautauqua Park

Chautauqua Park is definitely one of Boulder's jewels.  Located directly below the Flatirons, Chautauqua has been a premier destination for over 110 years.  Most people know Chautauqua as a great place for a hike or a picnic but it is so much more.  If you ever wanted to learn more about Chautauqua here is your chance.

History:

Here is some information from The Colorado Chautauqua Association's website.

On July 4, 1898, over 4,000 people gathered for the opening day of the Colorado Chautauqua. Boulder civic leaders and Texas educators had joined together to create a cultural and educational summer retreat. Today, the Colorado Chautauqua is one of three remaining Chautauquas in the United States, and the only site west of the Mississippi River, in continuous operation, with its original structures intact.

Before radio and television, the Chautauqua Movement united millions in common cultural and educational experiences. Orators, performers, and educators traveled a national Chautauqua circuit of more than 12,000 sites bringing lectures, performances, concerts, classes, and exhibitions to thousands of people in small towns and cities. Theodore Roosevelt called Chautauquas, "the most American thing in America."

Located at the base of Boulder's Flatirons, Chautauqua Park is on the National Register of Historic Places and is a local landmark. The Colorado Chautauqua Association, a 501 (c) (3) organization, leases twenty-six acres of land from the City of Boulder, on which are situated:

The Auditorium (1898) included on the National Register of Historic Places. It has been voted one of the top ten places artists love to play because of its superior acoustics and intimate feel.

The Dining Hall (1898) is now open all year, offering excellent cuisine.

The Academic Hall (1900) houses Chautauqua's administrative offices and housed the first collegiate-level summer school in Colorado.

The Community House (1918) is a stunning example of Arts and Crafts architecture and has been winterized and renovated.

Chautauqua is not just a park with a few community buildings in which to eat, meet or enjoy a concert.  Chautauqua is a collection of charming cottages set apart from the rest of the city.  There are 100 cottages.  60 are owned by the Colorado Chautauqua Association and 40 are privately owned, many by the same family's who built them five generations ago. 

Activities and Programs

The founders of our Chautauqua were a group of educators from Texas.  They came for the summer to enjoy the mountain climate (pre-air-conditioning) and engage in a program of art, exercise and cultural events (pre-TV). 

There are three remaining Chautauqua's in the United States and ours is the only one that is active all year long.  The program schedule definitely peaks during the summer months but there are activities all year long.  The highlights of the year, in my opinion, are the summer concerts and movies in the wonderful Chautauqua Auditorium.  This wonderful building has not been noticeably improved since it was built.  I remember as a kid that part of the fun of going to a movie there was to see the bats fly in front of the screen.  Events and programs have a wide variety and include, classical music, folk music, popular music, films, ecology talks, current issue forums and much more.

Location

Chautauqua is a park, it is a trailhead, it is a destination, it is a trailhead.  It is located on the far western part of Baseline Road (40th parallel) at 9th Street.  It is adjacent to the University Hill neighborhood to the North and the Bluebell or Chautauqua neighborhood to the East.  To the west you will find The Flatirons which is the unique rock formation that can be seen on most postcards.  To the south you will find hiking trails which are part of the Boulder Mountain Parks system.

Trails

I would say the Chautauqua trailhead is the busiest in the area.  No matter the time of year you will find walkers, hikers, climbers and photographers taking advantage of trail system which starts in Chautauqua Meadow.  The beauty is that you can take a 15 minute stroll or a 15 mile hike and start off in the same spot.  There are trails along the base of the Flatirons (these tend to be easier) and there are those that go vertical and end up above the them.  Choose your level of commitment and go for it.

 

Links

Map of the Chautauqua property

Lodging Information

Still want to learn more watch this great VIDEO

Hiking Map

2010 Boulder Real Estate Market Report - Now Available

Are you curious about what is happening in Boulder real estate.  Well, I have just completed the comprehensive guide to the Boulder Real Estate Market for 2010.  The guide includes market statistics and analysis for all Boulder County including; Boulder, Louisville, Lafayette, Longmont, Erie, Superior, Gunbarrel and the Mountains. 

Concise and easy to read, this report tells you why median prices went up despite depressed sales.  No cost and no obligation.  Just send me an email and I will send you the report.  I always protect and respect your personal data.

Send a message to Report@NeilKearney.com and I will send a copy right out.

 

NCAR from Skunk Canyon

A chinook wind came through last night and melted most of the snow.  Today was a beautiful, warm winter day and I took the opportunity to take a quick hike.  The light was just beautiful coming off Kohler Mesa into Skunk Canyon.  It was great to be able to take advantage of one of the best reasons to live in Boulder; a refreshing January hike.