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 [...]
Sunshine, Daydream. A Few Thoughts on Decks
by Osman Parvez There's nothing like a deck. It's a place to hang out with family and friends, share a meal, and enjoy the sunshine. A well designed Colorado home almost always includes outdoor living spaces and beautifully transitions between indoor and outdoor. I've helped a lot of buyers over the years, and I've learned a few things about decks. Here's a couple of things to consider when you're shopping. 1. Colored Composites Colors are cool but they may not go all the way through. I took this photo at my client's new Toll Brothers [...]
Understanding the Marijuana Market in Colorado [Analyze This]
by Osman Parvez Dude, where's my tax revenue? Eight months have passed since recreational Marijuana became legal in Colorado. It's a big deal for our state and local economy. It has cultural impacts. The rest of the country is watching. future tax revenue? Today, the majority of Americans favor legalization1 but medical marijuana is legal in only 23 states. Recreational pot is legit only Colorado and Washington state (map). Implementation is already being called a success2 and despite the hoopla, Colorado has not become the Amsterdam of the Rocky Mountain region. Sure, you catch the occasional whiff of pungent [...]
Hey, My Buddy is a Roofer…
by Osman Parvez The moment we stepped into the backyard, I saw it. My buyers didn't notice but I sure did. At some point, the current (or previous) homeowner decided it was time for a new roof but didn't want to pay the additional expense to remove the old one. It's not uncommon to see multiple shingle layers in Boulder, but have you ever seen composite shingles installed over shake shingle? It's not easy being green Now you have. Something tells me this installation wasn't to code. Check out the moss and rot! My [...]
Seriously, Get a Radon Test [Due Diligence]
by Osman Parvez This is a vacuum gauge showing the radon mitigation system is functioning. These are the radon test results from the same house. Due diligence tip: Just because the radon fan is generating vacuum doesn't mean the system is actually working. The EPA recommends mitigation for radon levels above 4.0 pCi/L. This house has radon levels of 9.5 pCi/L. You can have your inspector test the radon level or you can buy a radon tester that you leave plugged to continuously monitor radon levels (with an alarm) for about the same cost. Either [...]
