Stacie Staub

Before you hit those after-Christmas sales in search of upgraded appliances for your home, take a minute to do your research - and make sure that your purchases will be eligible for the State Appliance Rebate Program, which is expected to launch in Colorado in March 2010.

MSNBC.com featured this program yesterday…here’s some of their article…

Modeled after the popular Cash for Clunkers program, which was intended to get cars with low gas mileage off the road, a federal appliance rebate program is launching in early 2010. It offers a boost to people buying energy-efficient clothes washers, refrigerators and other appliances — those that qualify for the federal “Energy Star” designation — and to manufacturers, whose sales fell 10 percent in 2008 and another 12 percent through mid-December this year.

Read the rest here.

The program differs from state to state, here are the details regarding Colorado’s program, from Energysavers.gov, where you can also go to learn about Energy Credits, to compare different products, etc.

The State of Colorado will implement a mail-in rebate program to help residents replace older, inefficient appliances with ENERGY STAR® qualified appliances. The program is tentatively scheduled to begin in March 2010 and will continue until funds are exhausted.Eligible products include

Refrigerators
Clothes washers
Dishwashers
Gas storage water heaters
Gas tankless water heaters
Gas furnaces
Gas boilers
The state encourages residents to recycle their old appliances. Check with state officials for information on proper disposal of appliances.

Contact: Governor’s Energy Office

Total Funding: $4,739,000

Program information subject to change. Rebates may be offered for a limited time only. Before purchasing a product, check with your program sponsor to ensure rebates are available, and to confirm product eligibility and program requirements. Products purchased must meet efficiency criteria as established by the state.

Stacie Staub

John Rebchook of InsideRealEstateNews.com has a great write-up on his blog, posted a few hours ago, detailing Denver’s latest top spot - Denver is on a lot of Top 10, Top 50, Top 100 Lists this time of year, as everyone wraps up 2009 in a big round ball and chucks it toward the recycling bin, but this is a FANTASTIC way to welcome the new Real Estate Decade.

Here’s a highlight…

Denver performed the best of the 20 major metropolitan housing market tracked in the closely watched S&P/Case-Shiller Home Price Indices report released today.

Denver’s housing market showed only a only a 0.1 percent dip in housing prices in the year ending in October, compared with an overall drop of 7.3 percent for the 20 areas in the report. The 10-city index in the report fell overall by -6.4 percent.

Tom Clark, executive vice president of the Metro Denver Economic Development Corp., said that Denver’s No. 1 ranking is the latest sign that Denver’s economy is out-performing the nation’s.

“Job growth does matter,” Clark said. “What a concept.”

Gary Bauer, an independent residential broker in Denver couldn’t agree more.

“Once again, this shows the strength of the Denver market,” Bauer said. “We continue to lead the nation as far as recovering from the recession - the recession is not over yet - but we will be one of the first to emerge.”

Bauer said that “two-thirds” of the Denver-area housing market “still moving,” if not showing spectacular performance. Only the high-end market continues to be soft.

“The market has moved from the only activity being in the first-time buyer to what I call the “move” buyer,” Bauer said.

Bauer has said that the move buyer will benefit from the expansion of the federal tax-credit for qualified people who own their owns. Some of those buyers who qualify for the $6,500 tax credit will downsize to smaller, less expensive units, while others will move-up, according to Bauer and other Realtors.

Read the rest here, then get off the fence already and join the party!

Stacie Staub

Uncle Sam is offering taxpayers generous incentives to make their residences more energy efficient. Many of the eligible home improvements, such as adding insulation, can earn a tax credit of up to $1,500. More ambitious upgrades, such as installing solar panels, can net a credit worth 30% of the total cost of the project.

Improvements must meet IRS energy-efficiency standards to qualify. Don’t assume an Energy Star label is enough. Sometimes it isn’t. Save receipts and manufacturers’ statements certifying the tax credit-worthiness of the products. The IRS could ask for them. Consult a tax adviser.

Tax credit capped at $1,500

Replace aging windows, HVAC systems, and non-solar water heaters, install efficient biomass stoves, add insulation, or fix a worn roof, and you might collect a tidy credit come tax time. To encourage greater energy efficiency, homeowners can recoup 30% of the cost, up to $1,500, for making any of these qualifying upgrades during 2009 or 2010. Claim the credit for the year in which you complete the project.

The improvements must be made to your existing primary residence to be eligible. You can include the labor costs for HVAC, stove, and water heater installations; only the cost of materials counts for insulation, roofs, and windows (as well as exterior doors and skylights). Ask your contractor for a receipt that itemizes materials and labor. The IRS refers to the tax relief you can get for these projects collectively as the Nonbusiness Energy Property Credit.

Keep in mind that the $1,500 cap applies to all of the projects combined for both years. You can’t claim a $1,500 credit for new windows in 2009 and a separate $1,500 credit for a new furnace in 2010. A $5,000 project would max out the credit.

Uncapped energy tax credit

There’s no cap on tax credits for a handful of residential projects that involve alternative energy sources including solar, geothermal, and wind. That’s good news considering costs can run into five figures for photovoltaic systems (for electricity), solar water heaters, geothermal heat pumps, and small wind turbines. Fuel cells qualify too, though they’re subject to slightly different criteria.

This tax incentive is called the Residential Energy Efficient Property Credit by the IRS. Homeowners can earn it anytime between 2009 and 2016 for the tax year that one of these systems is placed into service. The tax credit, equal to 30% of the project cost, applies to second homes as well as primary residences. New homes are eligible too. A rental property generally is excluded unless it’s a second home that’s only rented out part of the year.

You can use the uncapped tax credit even if you’re using the capped tax credit. In fact, you can claim separate uncapped credits for a wind turbine, a geothermal heat pump, and a solar water heater. Use IRS Form 5695, which has separate pages for capped and uncapped tax credits.

How tax credits work

A tax credit is usually more valuable than a tax deduction because the credit lowers your tax bill—or increases your refund—dollar for dollar. Think of it this way: A $1,500 deduction will save $363 on taxes owed for a married couple filing jointly with an adjusted gross income of $100,000. That same couple would save the full $1,500 with a $1,500 tax credit. Married filing separately taxpayers may be able to take separate $1,500 tax credits.

Residential energy tax credits do have limits. The IRS considers the credits “non-refundable,” which means you can’t claim more in credits than you paid out in federal income taxes. You may be able to carry forward some of your surplus uncapped tax credits to future years.

While Form 5695 shouldn’t take more than an hour or two to complete, it’s a good idea to consult a tax adviser. Credits are gold, so you don’t want to risk missing one.

Want more information about Tax Credits or the upgrades that qualify?  Visit www.houselogic.com - it’s a great resource for home purchasing, selling, or valuating.

Stacie Staub

As you are writing out your New Year’s Resolution list this year, you might find yourself adding “Sell this house and Buy a new one” to the list - and it would be great timing if you did.  With the Tax Credit extended to existing homeowners, and with a shortage of great properties on the market, early 2010 might just be your opportunity to Move Up to that bigger home, better neighborhood, etc.  Or, it might be a smart move to Move Down the property ladder, consolidate your stuff and move to a smaller place in a more walkable area.  Whichever way you are looking to go, there are going to be buyers looking for a place like yours, so now is the time to get it ready and get it on the market.   We are expecting a rush of new business at the start of the new year - especially because properties must be under contract by April 30 in order to qualify for both the First Time Buyer and Existing Homeowner Tax Credits.

Here is a list of small projects that will improve your property’s value - allowing you to get top dollar and pull the most equity out of your current home to put toward your new place:

1. Tidy up kitchen cabinets.

Potential buyers open kitchen cabinets and look inside, so make it look like there is plenty of space for all of their dishes and cooking supplies.

 2. Add or replace tile.

By retiling, you make a room look way nicer than it was, and you can do it on the cheap - many stores, including Lowe’s and Home Depot have $1 to $2 tile, so it’s very affordable to add a new kitchen backsplash or bathroom floor without breaking the bank, and it makes a huge impact on buyers.

3. Add a breakfast bar.

When a wall separates a kitchen from a family room try cutting out an opening to create a breakfast bar. Buyers will be looking for open floorplans and great spaces for entertaining.  So take a look at the walls dividing your rooms - if they don’t need to be there, get rid of them.

4. Install granite tile instead of a slab.

Granite kitchen countertops have become a necessity, even in lower priced homes, but slabs can be really expensive.   As an alternative, install 12-inch granite tiles with very tight grout lines - you will create a similar look and feel for a fraction of the cost of slabs.

5. Freshen up a bathroom without retiling.

An outdated bathroom is easily updated by installing a new medicine cabinet for $100 to $150, light fixtures for about $100, a faucet for $50 to $75, and a vanity for $200 to $300. Instead of replacing the tile, consider simply applying new grout - it can make ugly tile appear new again.  There are also tile paints that can cover seriously outdated colors in a fresh coat of white.

 6. Freshen up the basement.

If you have cement block or poured concrete walls in the basement, fill in cracks with hydraulic cement and then paint with waterproofing paint, then add a top coat to add color. You can also paint the basement floor with a good floor paint, which will really clean it up. The basement may not be finished, but it also shouldn’t be a damp dungeon.

 7. Add a room.

Look for large spaces that can be enclosed to create a new bedroom for just the price of creating a wall. As long as there is a window and  a closet in that new space, you have added a ton of value for very little investment.

 8. Spruce up cabinet fronts.

Update tired-looking kitchen cabinets. Paint or stain old cabinets for a fresh new look and feel in the kitchen.  Install new hardware as well - you will be shocked at the difference, and buyers will be able to focus on the counter space and layout rather than the ugly old oak.

9. Replace light fixtures.

Especially in the foyer and in bathrooms and kitchen, replacing the lighting is a very easy and inexpensive project that can change the entire look of the home.  Installing recessed lighting, especially when ceilings are low, and pendants over the kitchen island also add a lot of bang for just a few bucks.

 10. Tech-up the garage.

Replace the garage door opener with a remote touchpad entry system - makes any system feel high-end.

Mic Ortega

If you have driven down a major Denver street lately, then surely you have noticed more and more green leaves popping up on the outside of previously empty retail spaces.  This phenomenon of medical marijuana dispensaries is streaking across the city and leaving a swath of controversy in its wake.  This week, the dispensary craze has come to the forefront of major media throughout Denver with front page reports of holdups and new regulation to grab our attention.

It was earlier this summer when dispensaries began popping up around town.  At first, most people thought little of them, just a good joke and laugh for who was caught walking in and out.  Lately though, the situation has seemed to grow a little more heated, not just because of combating individual opinions of the dispensaries and their purpose, but just as importantly, the impact they are having on local communities.

Obviously, safety has been a number one concern of neighborhoods who are now presented with more and more green leaved signs popping up.  With two dispensaries in Denver held up at gun point, a break in at a Boulder shop and an expected explosion in Breckenridge this week alone, the safety concerns have certainly been magnified.

These concerns have prompted the government to take a closer look at the states fastest growing business.  On Wednesday, Denver Council Members voted to ban dispensaries from opening within 1,000 feet of a school and of one another.  This issue of opening within such close proximity to each other has become another major point of contention, in addition to safety, for local residents and merchants.

On one particular Denver boutique laced street, the issue of so many potential dispensaries opening has local business owners on edge.   Speaking with members of the local merchant association, there is a strong possibility that there will soon be six dispensaries in their merchant district that stretches six city blocks, and 5 within one block.  This means there could easily be dispensaries side by side and their competition side by side directly across the street.  For a merchant association that has worked so hard the past 3 years to create a unique shopping experience and has been awarded millions of dollars in funding to improve the shopping district, this block of dispensaries creates a major obstacle for strolling shoppers and diners and feels like a major step backwards for local merchants. And with landlords bumping rent that only dispensaries can afford to pay, it has forced out other long term merchants on the block, forever changing the make up of the street.

With these new rules and regulations going into effect after January 1st, 2010, we will have to wait and see how many dispensaries pop up between now and New Years.  With the potential for five dispensaries on one block, and countless more surely opening across the city, odds are pretty good that the face of many of our city streets could drastically be changing.  The question is then how much they will change and the how the city will regulate these changes moving forward.   Living, working and selling real estate in the neighborhoods seeing the highest concentration of dispensaries opening, I personally am worried about the long term impact they will have both on resale value and attractiveness of these thriving communities.  I am sure that we will be hearing much more about this debate in the coming months and the backlash it brings.

Mic Ortega

Now that the new year is almost on us, it is time to look back from a Real Estate perspective to see what trends in home building and remodeling have changed in 2009 and how they will look in 2010.  In a recent study, five new design trend became apparent, the full list is below.  In general, it appears as if the McMansions are now making room for more economical, smaller homes that are efficient and practical.  Still popular are the open living spaces and using all aspects of the lot by bringing the indoors outside.

And of course “green” is a major trend that will continue to develop over the next year, as long as it is affordable.  A big part of this green trend is not only the addition of such items such as solar and using renewable products, but also being smart with the size of the home and not building more than what is needed.  A good example of this is a local builder, 5280 Urban Homes, who is in the process of currently building smaller, highly efficient Green homes in urban settings.

It will be interesting to see what 2010 brings, but I imagine these five trends will prove to be very accurate and a smart system to follow for those planning on remodeling in 2010.

1. Small is the new big.A shift toward “smaller, better-designed homes” has already occurred among home buyers, says Zach Schabot, a broker with Garman Realty in Durham, N.C. AIA Chief Economist Kermit Baker observes that home sizes “have been trending downward recently, with a significantly higher number of architects reporting demand for smaller homes this year.” Only 4 percent of survey respondents reported increases in home square footage in 2009.

2. Open floor plans are still in.“Homes with kitchens that open up to the dining room, that open to the family room are very popular,” says Valerie Torelli, founder of Torelli Realty in Orange County, Calif. Such layouts, which have come into vogue in the last decade, are especially trendy with home buyers who enjoy entertaining guests at home; another trend impacted by the economy. Instead of expensive dinners out, more homeowners are inviting friends and family in, creating demand for living spaces that support that.

3. Dual home offices. Thanks to two-income couples in which both individuals work from home, there has been a rise in demand for extra office space. In metro New York, buyers now want a second bedroom large enough to accommodate two work stations, or a three-bedroom condo or co-op, reports Anne Buckley, an agent with Fillmore Real Estate in Brooklyn. In that case, she explains, “although the couple has no children, they desire three bedrooms because they work from home.”

4. “Green” details.Interest in affordable, eco-friendly home details is increasing, especially among younger home buyers. Some of the features Schabot has heard buyers ask for include concrete counter tops; tankless water heaters; and recycling bins built into kitchen cabinets. Energy-efficiency is another, related feature buyers are looking for, according to the AIA report. Alternative home insulation techniques and extra insulation in the attic are among most-wanted features.

5. Extending the indoors outside. According to the AIA’s report, buyers now want to make full use of their living space, including outdoor areas. That means outdoor living enhancements such as fire pits, kitchens and, in some cases, sleeping accommodations are especially desirable, allowing buyers to enjoy as much of their property as possible.

Buyers today are less willing than before to risk investing their finances in a massive home that may not appreciate as quickly as in years past. Instead, they want fully functional space that is well-designed, less expensive to maintain, and that matches how they live now — which is clearly different than how they were living even a year ago.

Irene Glazer

Came across a situation the other day that I thought warranted some attention…

I believe that there exists some confusion regarding what to do in multiple offer situations, particularly with regards to the counter-offering process. There are agents out there who do not know that just because the seller has submitted a counteroffer to a prospective buyer, doesn’t mean that the seller cannot rescind that counter-offer. Quite the contrary, sellers CAN and SHOULD rescind their counter-offers, if in fact they get a better offer during the negotiation phase. Does your agent know that until both parties have signed on the dotted line, the property is still available and up for grabs to any other buyers? Sellers can rescind counter-offers, just like buyers can rescind offers at any time, up until the point where everybody signs, and the contract is binding. The deadline (date and time) on that counter-offer, as well as the contract acceptance deadline in actuality mean nothing, they are basically a guideline. This will become more and more relevant as we head into a seller’s market (yes, we will be heading into a seller’s market, it’s just the natural course of markets, right). We will see issues arise when a buyer submits their offer, it gets it countered, and sees that they have a deadline of say 5PM the next day, then they drag their feet in signing the counter-offer, thinking that they actually have until 5PM the next day. The seller receives a better offer during that time-frame, and rescinds their counter. At least that’s what they should do, if their agent advises them properly, and acts in their best interests. Then, ooops, the buyer loses that property, and is furious at their buyer’s agent. We as buyer’s agents, need to make sure to communicate to our buyers that until ALL parties have signed on the line, there is no contract, and they do stand the chance of losing that property, and the seller can rescind their counter-offer.

My situation, was the flip-side of that coin. My buyers wrote on offer on a property, the listing agent told me that there had already been an offer which the seller countered, but the property was technically available. My buyers wrote a good offer, and we actually heard from the other agent (verbally) that it was the better offer. I tried the convince the listing agent (but to no avail) that the seller CAN actually rescind their counter, and go with our offer. The listing agent (in my opinion) did not communicate that to her seller, and the other buyers accepted the seller’s counter (which was less than our offer), and now the seller is obligated to that buyer for less than my buyer was willing to pay. It is quite obvious, that in this particular situation, the sellers best interests were not being represented.
So the next time you hire an agent, ask them, do they really know how to negotiate offers, and how do they deal with multiple offer situations (as they are arising more and more frequently). Their answer could be very telling, and could cost you thousands.

Mic Ortega

 Don’t miss Jingle and Mingle this Saturday and Sunday on Tennyson Street in the Berkeley District!  Bring the kids for Holiday book readings, pictures and hanging out with Santa.  For adults, don’t miss the extensive wine tour at participating restaurants, extended hours and promotions for stores and restaurants, and Santa handing out prizes on the street.

Mic Ortega

In article out today from the Denver post, we see just how much the First Time Buyer credit has helped the real estate market, and with it pushed back to next summer, we should see more great results in the near future.  Historically people think winter is a slow time of year for Real Estate.  But these numbers tell a different story and I have never been busier, already lining up appointments for right after Christmas and new listings ready to go the first of the year.  If you have been sitting on the fence, now is the time to get off.

Here is a snippet from the article.  To read it in its entirety, click here.  Metro Denver’s housing market showed its first year-over-year improvement in 11 months, as the number of homes sold in November surged 23 percent over the same month in 2008, data released Tuesday showed.

At least part of the increase was attributed to a rush by buyers to take advantage of the $8,000 federal tax credit for first-time homebuyers, originally set to expire at the end of November but later extended through the spring.

But it wasn’t just first-time buyers who returned to the market. The median sales price for condos and single-family homes increased, a sign that more-expensive properties were also selling well.

“An increase of 23 percent versus a year ago suggests that confidence levels of potential buyers are higher,” said Jeff Thredgold, an economist for Vectra Bank Colorado. “Part of that is based on better economic news, and part is based on the most attractive mortgage interest rates in 40 years.

“We were all in this massive state of flux a year ago. The sky was falling, for all we knew.”

Last month, 3,599 homes sold, compared with 2,920 in November 2008. Sales last month were down 9.1 percent compared with the previous month, when 3,958 homes sold.

Martin Yeager

Earlier this year, I started redesigning and remodeling a home on Perry Street as my new residence. My sister, Pat Perry, is the owner and chef at the Highlands Garden Café and she the purchased the home three years ago. While she and our mother completed the gardens next to the home, the remodeling and construction was up to me. Imagine my surprise when I uncovered a bit of North Denver history lost under the floorboards.

The home was built in 1902 and it is a small unassuming flat roof structure, lacking the character and elegance of the surrounding homes. While working in the small cellar, I discovered a thin handwritten journal filled with names, drawings, and maps. You can imagine my surprise of discovering a lost journal though there was no mention of its author or the owner.

I decided to find out more and tracked down Frederick Stanford whose grandmother owned the home from 1910 through 1984. He graciously filled in all the details and I now find myself writing the Highlands Christmas Story in hopes of returning the journal to its rightful owner.

In his letter, he described the home on Perry Street perfectly and shared why this home has a special place in North Denver’s history. I have posted the entire story online at HighlandsChristmasStory.com and I am sharing a sample of his letter with you.

“It seems the flat roof on Perry Street was actually the perfect size for eight reindeer and a sleigh! Unlike the high-pitched Victorian style roofs of her neighbors, this spot was the best resting spot in the Highlands for Santa to allow his reindeer a quick break in their amazing journey. As kids we used to snicker when she told us Santa would drink her homemade Peppermint tea sitting on the ledge above the front door. Those snickers would be goose bumps now! You have proven her story true”.

To celebrate this Highlands story, you and your family are invited to the Highlands Garden Café on December 20^th from 1-3PM for decorating cookies and sharing in the conclusion of the story It is our hope to leave Santa hundreds of Highland cookies in homes everywhere to celebrate this Christmas season. The Café is also collecting new, unwrapped toys for donation to the Boys and Girls Club of Metro Denver. Your contribution will add to the smiles Christmas morning for those in need. If you would like to receive your own online copy of the story, please email me at martin@liveurbandenver.com and I will forward it to you.

Please RSVP online for the Christmas cookie party at HighlandsChristmasStory.com or call the Café at (303) 458 5920.

We hope to see you there!