Anticipation...Tales of the Giant Green Balloon

I have recently realized that Carly Simon was not entirely correct in that well worn track that all of us from a certain era remember so well.  (And those not from our era likley caught snippets of it on a catsup commercial, which is a bit of a travesty but probably fodder for a different blog). Anticipation does "keep us waiting;" however, I was given an epiphany on the topic...yes given not had.  It may keep us waiting but sometimes the wait is vastly more exciting than the reality.  We have a tendency to build things up in our minds, and the longer the wait the more glorious the imagined outcome until they become prodigous events.  In my experience seldom does reality match that anticipation.

For those of you that don't really know me I am one of the myraid of dreaded real estate brokers in Denver.  My team and I have been working frantically or perhaps even frenetically to market and sell a townhome project which we have listed in North LoDo at 34th and Larimer.  Recently, Susan, who works for the developer on a Nevada rental project as well as in Denver, mentioned ordering a huge helium balloon for the Nevada project.  Instantly I was enamoured with the idea...I went on line to take a peek and they looked even more amazing than I had imagined.  Well, needless to say-I had to have one.

We scraped and budgeted and talked to our developer partner and made the arrangements to purchase a ginormous lime green helium balloon (10' in diameter) emblazoned with the words "FOR SALE" in giant purple letters, for the mere price of $900. Within about 10 days my prize arrived, on a snowy cold day.  And for days and days after it arrived, Colorado gave us a dazzling display of its unpredictable weather with temperatures shifting from a sunny 70+ degrees to a miserable 30 degrees or less with bouts of spring snow, spring hail, spring rain and everything in between. Helium doesn't like cold and snow and harsh weather is not all that conducive to ballon flight so my balloon sat forlornly in its box.  And like a kid at Christmas I behaved until I couldn't stand it any more and I ripped open the box only to see a mountain of green plastic or rubber; it was so big I couldn't even find the lettering so I had to content myself with knowing it was there.

Finally the day came that we could raise the ballon.  My husband Greg, Susan, and I convened on the rooftop deck of one of our townhomes and after some debate about logistics we attached the tubing for the helium and opened the valve on the tank.  Slowly we saw our very large beautiful balloon come to life. She lifted herself off the pavers like a sleepy green giant just waking up from a long hibernation.  Once she was filled, we moved her about a bit until we were certain she was in the very best spot for maximum viewing.  Satisfied with our labors we drove around the block afew times like proud parents and then went back to our office for what was left of the day.  (Who knew it would take 3 hours to raise a helium balloon?) I planned to check on her on my way home; however, it wouldn't be even that long before we were summoned back up to the Upper Larimer Project.

Around 4pm that same day Greg received a phone call from one of the neighbors saying there was a problem with the balloon. So we raced up to the project only to discover that despite what we had estimated from the ground we had raised her too close to a power pole and she had wrapped her "leash" around the top of the pole.  We called the power company and asked them to come and free my balloon.  Of course they couldn't tell me when someone would get there, so I helpfully called them every 20 to 30 minutes to remind them I was still waiting.  During those calls we were able to clarify things like- "the balloon is 10 feet in diameter and contains well over 200 cubic feet of helium."  "No I didn't put her there on purpose," and so on. 

After several hours Susan decided to call a friend, who referred us to a tree trimmer.  The tree trimmer came out with the tools of his trade including some very nifty boots that allowed him to climb the power pole.  He retrieved our beauty and inflicted minimal damage to her in the process.  We placed her in one of the units to rest and await some minor surgery.  Needless to say after all of this I realized that I maybe didn't even like my giant ballon that well.  In all of those weeks of waiting to fly her I hadn't really considered the work of getting her in the air and keeping her there.  And why would I since the directions for inflating her consisted of one typed page no pictures and no diagrams?  I inflate small miniatures of her every week by the dozens right in the comfort of my own office...As I ponder my experience I suspicion that much of life is like this- just not nearly as dramatic or as much of a pain as my balloon.

My husband and I will make a reservation at a restaurant that we have been waiting to try and then get there and think- Hhhm we really like one of our old favorites just as well. But while anticipating going there we are some times certain that it will be the best ever. Likewise, buyers come to me wide eyed and innocent in their excitement to buy property.  Those that have bought before know it's hard work for the buyer as well as the agent but nothing really prepares the first time home buyer for the amount of work that goes into buying a home...the media doesn't tell them that and certainly the American dream of owning your own home doesn't come with an addendum reminding them that this could be very hard work.  Nope it's just anticipation- anticipation of buying the home, moving in and starting a  family or having that first dinner party, or barbeque or inviting the guys over to watch a game on the old flat panel. 

But nothing has really prepared any of us for the real estate market in which we now find ourselves.  I often tell my agents that every deal is a new deal, the banks have turned their backs on condo projects so that in new projects only the lucky last 30% who buy get the benefit of conforming loans.  (We were fortunate to get our Upper Larimer Project approved at Wells Fargo before they completely turned their backs on condos, so we are able to offer conforming products to all qualified buyers) And of course the guidelines for various loans seem to change daily if not more frequently.  Lending programs come and go, as do mortgage brokers and realtors.  But as I have said before if you have the energy and perhaps just the plain old gumption there are definitely bargains to be had, so don't toss in the towel at the first sign of a quagmire.  Work with your broker to find a creative solution, there are some out there if you dig. And if you need a creative city broker don't hesitate to call us or email us- we are a great downtown resource.

I leave you with an invitaion to be a part of our second attempt at flying my prized balloon.  Weather permitting we anticipate raising her for our beer tasting on May 22nd at the Upper Larimer project.  Even if you don't want the beer it might be worth the adventure to see if we can actually keep her in the air this time.  So join us under the giant green ballon. 

Read more »

Spring time In The Rockies

Well here I am a native of Colorado and I can still be surprised by the whacky weather. From snow storms to sunshine to sunshine and snow it's still the best place to be. When I was a kid folks used to say, "Don't like the weather? Give it a few minutes and it will change..." I guess in this time of uncertainties it's good to know some things are consistent....even if those things are actually inconsistency. Real estate and the weather are the same in that way and you must constantly adapt.

For the Colorado climate one is well advised to wear layers- things that can be shed as the weather warms and slipped back on with the inevitable cooling off that will follow, particularly as the sun sets. In the case of real estate, it is wise for all of us realtors, buyers and sellers alike to pause and at the very least re-adjust our thinking if not being actually prepared to shed some of our preconceived notions formed from "how the market used to be." It is a whole different market than the one we knew just 3 or 4 years ago.

We are still laboring under a very clear and present lending crisis. It is difficult for even well qualified buyers with substantial down payments to get loans and it is virtually impossible to get loans for condominiums. The lending market appears to have turned its back on condominiums. If the condo that you or your buyer have your eye on is not in a project that is at least 70% sold there will be no fannie mae approval. And what you ask does that mean? Well it means that your lender cannot send a loan package through automated underwriting and will likely have a very difficult time selling the loan- hence they won't make the loan. However, there are still a few options if you look hard enough or work with a savvy city realtor. If the project is at least 51% owner occupied and the HOAs look good a buyer may be able to get an FHA loan, through a process known as spot approval for a purchase price of $417,000. or less. And if that isn't a possibility there are things called portfolio loans that allow a buyer to obtain a loan for a few years until such time as the market corrects itself. These loans are made by banks, typically smaller state chartered banks and they do not sell the loan, instead holding it in their portfolio. Knowing where and how to find some of these products will allow condo buyers to purchase property and take advantage of some really great opportunities that prevail in this market place.

Yes I did say opportunities. Many brand new condos have not been able to sell because of these very lending practices and so developers are a bit more motivated not only to sell but to help the buyer obtain their loan and get to the closing table. Now this is the part where I say be prepared to slip some of those old notions back on...there is a point beyond which a seller can not or will not go. If a deal seems unbelievable- it probably isn't real; there is probably something that you don't know or are missing so as always, "caveat emptor" (latin for buyer beware).

If you get to the point of making an offer and you have your financing figured out- at least in theory- there are some things you should consider. When dealing with a developer of a new project know that often times the developer is not the only one negotiating. It may be that the developer's lender is directly involved in the release prices- that is the number at which the bank is willing to make a partial release of the construction/acquisition loan enabling the developer to provide you with a clear title. The developer is still there to try to make money or at the very least to escape without losing money.

When making an offer on any property whether it be a private party seller or a developer remember that nothing counts unless it is in writing and signed by all parties. Don't ask your realtor to field verbal offers- they don't mean anything anyway. Your realtor is there to help you and if you have chosen wisely your realtor has likely been through many many closings, even in this market so trust them. If you don't value the realtor's opinion then get another realtor. And last but not least, when negotiating remember what our mamas always told us, "you get farther with honey than you do with vinegar." All negotiaitions are contentious- the mark of a good negotiaition is when both parties feel like they had to give a bit more than they wanted to, but that doesn't mean it has to be personal or ugly. Placating a seller who is accepting a lesser price costs the buyer nothing and can make a big difference throughout the transaction.
Contemplating a condo? Need city realtors? Call us or email

Read more »