How Not to Win a Bidding War [Due Diligence]
by Osman Parvez ---- The most attractive listings in Boulder, priced appropriately and marketed professionally, attract multiple offers. Yes, even in this market. One way to increase the attractiveness of your offer (without increasing the price) is to limit the inspection (usually to health and safety items, or to a specific price threshold). Tightening up the inspection can help you win the bidding war, but forgoing the inspection entirely may cost a lot of money down the road. This is why. A post shared by HouseEinstein (@house_einstein) on Nov 15, 2017 at 1:37pm PST The service life for cast iron sewer pipes [...]
Wire Fraud and Realtor Phishing Attacks
by Osman Parvez ---- You may have heard that there's a scam out there with bank wires and earnest money. Here's how the phishing attack starts. Your Realtor receives an email that looks like the screenshot below. It looks like an offer on a listing. The link leads to a Russian site where your email account will be compromised. Later, in the middle of a deal, the buyers will get an email containing phony wiring instructions that appears to be coming from their Realtor. The originating email is coming through a compromised email account at Rochester Institute of Technology (RIT), [...]
And Then The House Exploded [Due Diligence]
by Osman Parvez ---- Buying a house? It's not just air quality from fracking that you should be worried about. First, let's catch up on the facts: A house exploded in Firestone a couple of weeks ago, killing two people. In response, Andarko shut down 3,000 wells. Meanwhile, Boulder County's oil and gas inspector admits that 40% of the wells tested are leaking. To say there is renewed interest in the potential dangers of oil and gas infrastructure is an understatement. I encourage all of my buyers to conduct complete and thorough due diligence. It's why we offer our clients a detailed [...]
No Dogs Allowed [Due Diligence: Read Your HOA Docs!]
by Osman Parvez ---- Public service reminder: Read your HOA documents. The following references sections of the standard Colorado Real Estate Commission approved real estate contract to Buy and Sell. § 7.3 Association Documents This is the seller's deadline to provide the buyer with association documents. Among other things, it should include the covenants, codes, and restrictions for the property. It should also include minutes from board meetings and financials. § 7.4 Association Documents Objection Deadline This is the buyer's deadline to have reviewed the documents. If something is not acceptable, buyers must notify the seller on or before [...]
Deal Killers and Due Diligence
by Osman Parvez ---- This morning, I helped my buyers terminate a contract on a condo. When we wrote the offer, they absolutely loved the property and were willing to pay far more than asking. By the end of our due diligence, they knew it just wouldn't work. What happened? We found significant repair issues that frankly should have been addressed by the seller prior to listing the home. We might have been able to resolve these problems through negotiation but HOA mismanagement and the fact that one of the neighbors is making a stink about a potential adverse possession [...]
The Case for Caution
by Osman Parvez ---- With Google’s new building well underway, there has been considerable buzz in the real estate community about the potential impact. As everyone knows, home prices have risen dramatically during the past several years, not just because of Google, but due to a large influx of people moving to the Front Range and a shortage of available homes. Sounds like a recipe for continued strong appreciation. Is there a reason for caution? You bet. In the Bay Area, venture capital fuels startups to compete for and compensate early stage employees who in turn, hand over a significant chunk [...]
Osman, How Much Should I Offer? [Investment Analysis]
by Osman Parvez ---- We took one of our buyers to see an investment property at the Wimbledon in Boulder last week. At the end of the showing, they wanted to buy it. They asked "Osman, how much should we offer?" How much to offer and how much to list are the most common questions we get from our clients. To give you a sense of the type of work we do to answer the question, let me walk you through the analysis. This is far beyond the service you'll receive from a typical Realtor. We believe that [...]
Another Money Pit [Tales from the Trenches]
by Osman Parvez ---- Want to know a secret? Sometimes I talk people out of buying houses. Helping buyers and sellers make smarter real estate decisions is not just our tag line. It's how I've built this business. Here's a story. Pro tip: remove rat poison boxes before allowing showings I was out of town this weekend, enjoying a tour of the Fall Colors with some friends (pics), when I received a text message from one of my clients. Sophie (my assistant) had taken them to see a fresh listing in Boulder and they were seriously considering an [...]
Are My HOA Dues Absurdly High?
by Osman Parvez ---- We're back. After a multi-week adventure in the lovely Nevada desert, we're saddled up and ready to ride. Let's kick off the fresh content with a question about HOA dues. Q: I'm considering buying corner loft condo. The ask price is $299k and HOA fees are $385/month which include nothing other then exterior maintenance and hazard insurance. And am I crazy for thinking the dues are absurdly high for offering ZERO amenities? A: Buying a property with an HOA is akin to an investment partnership over which you have very little control. Do your due diligence [...]
Paint on a Rotten Board [Due Diligence]
by Osman Parvez ---- My gutter guy pulled off the badly installed rain gutters to find rotten fascia boards. This house was painted a few months before it hit the market. This is what it looks like when a seller window dresses a home for sale. Any questions? ---- Like this analysis? Subscribe to our client research report. Want to get blog updates via email? Click HERE. Ready to buy or sell? Schedule an appointment or call 303.746.6896. You can also like our Facebook page or follow us on Twitter.As always, your [...]
Fresh Listings: Twelve Worth Seeing [Get ‘Em Hot]
minor flood damage Twenty two house listings hit the Boulder market this week. Four were snapped up by desperate buyers. Eight were in bad locations, grossly overpriced, or simply refreshed old listings pretending to be new. Only ten are worth your time. Let's take a look. Note: We're ignoring attached dwellings again this week. Too little inventory and frankly, my buyers don't need any additional competition. To schedule a private showing, which includes a discussion of valuation and price trends, call Osman at 303.746.6896. Single Family Homes 2100 Riverside Lane | $2.3MM | More Details First, there's no [...]
What’s an Egress Window?
by Osman Parvez The other day, I took a buyer to see a house in Boulder. It was listed as a six bedroom house and two of the bedrooms were in the basement. Here's what they looked like: The windows in the basement bedrooms wouldn't comply with code. In other words, two of the six bedrooms in the house are "non-conforming." The listing description doesn't mention it. Here's the issue. In a fire, basement bedrooms without egress windows are a deathtrap. Boulder uses the International Residential Code which defines an egress window as follows. IRC egress window requirements (2012) [...]
The Risk of Municipalization [Due Diligence]
by Osman Parvez Ever since the movement began to create a municipal electric utility in Boulder, I've received a steady stream of emails from concerned clients. From a real estate investment perspective, the size and activities of local government have become an increased area of risk. Comprehensive due diligence mandates that you understand the risk before the investment decision. After studying the issue for some time, here's my opinion: Municipalization feels good but lacks economic merit. It's a slippery slope. My concerns: 1. Lack of Transparency It took a lawsuit from a Boulder resident for the City to release their [...]
Air BnB CRACKDOWN – Read Between the Lines
by Osman Parvez I've been warning my clients and now it's come to pass. Twenty unhappy owners have recently received "cease and desist" letters from the City of Boulder for operating illegal short term rentals. More citations are likely on the way. The city recently hired more code enforcement personnel who continue to target violations on a complaints first basis. Anything less than 30 days is considered short-term. From the City's official position: When the owner of a property that has a single-family or multi-unit dwelling rented out for a short period of time (usually less than 30 days), [...]
Boulder Snow Removal and Snow Plowing
by Osman Parvez Snow removal. It's probably the last thing you think about when buying a house - until the white stuff starts hitting the ground. If you're new to Boulder, you might be surprised to learn that the city only plows a small portion of our city streets. This is particularly hazardous in certain residential areas. Not your street What You Need To Know When it snows, Boulder plows primary and secondary streets only using a fleet of 15 trucks. Here's a map of what they usually plow. If there is 8+ inches of accumulation, and the [...]
Welcome to House Einstein
Locations, Due Diligence, Negotiation
Testimonials
We can highly recommend Sophie. Her attention to detail and communication skills are great. Our home was in area that most realtors are not familiar with, but Sophie took extra time to get to know the neighborhood in order to give us quality service. She also brought in a professional photographer to make our home look its best. Even though the listing was in winter, the house sold quickly. With Sophie’s business and people skills, we have no doubt she will be a top realtor in the area.
Osman was a refreshingly honest realtor. He stressed through the entire process that his goal was to make me happy with my home purchase. I greatly appreciated the fact that he never shied away from pointing out the negatives as well as the pluses of different places while leaving the final decision up to me.
