Q1 was the best (and worst) market we’ve ever seen. Sellers are happy, buyers are frustrated, and inventory continues to plummet, having set new record lows each of the past 4 months and bringing with it record sale prices. In the past three months alone, we’ve seen sale prices increase 9%.
The beginning of the year brought about many opportunities and special changes at Greenwood Estates Realty. We were pleased to list a 12-unit condo building in the DTC complex of Boston Commons. This listing has kept us active, fielding buyer inquiries on the $3.5MM, 7.0% cap rate investment. Check it out here.
We welcomed Chris Snow, who recently joined us full-time as a buyer agent. Chris has a cheerful, bright personality to go along with a competitive edge, work ethic, and knowledge-base that has already earned praise from our buyer clients . Chris is a native of Colorado and experienced real estate investor, who enjoys playing guitar , working out, and rooting on his beloved Green Bay Packers in his free time. Please join us in welcoming Chris!
Recently, we said goodbye to our assistant of 4 years, Anna Weimer, who moved to Colorado Springs and is founding her own marketing company. We wish Anna the best and look forward to hearing about her achievements in the future. Happy trails, Anna!
The New Year started off with a bang in the Zerr family household as Bryan, Brianna, Emilia, and Luna celebrated “pandemic style” in their DTC home, complete with noise makers, party hats, and fun all-around ! The first three months of the year were spent taking Emilia to gymnastics, testing Bryan’s new snow blower during the March snowstorms, and Brianna helping the pharmacy team coordinate inpatient COVID-19 vaccinations at Craig Hospital . The Zerrs are looking forward to the spring weather ahead and taking Emilia to destinations like the Denver Zoo, Children’s Museum, and Downtown Aquarium.
David and the "Girls" enjoyed getting back together with friends and family during the first quarter of 2021! David & Briana enjoyed a quick trip to see friends get married in January, saw family they hadn't seen in over a year in February, and capped off Q1 with a long overdue family vacation to Cabo in March ! They are very grateful for the time with friends and family, and look forward to more in the near future.
In Memoriam. A core value at Greenwood Estates Realty is the importance and priority of family. In February, Bryan lost one of his “heroes,” his grandfather, LeRoy Heinrich. LeRoy, a retired real estate broker in the state of Kansas inspired Bryan to begin real estate investing as a freshman in college and eventually to go into real estate sales full-time. While never achieving education beyond a high school diploma, LeRoy’s accomplishments as a serial entrepreneur, civic leader, and man of faith, could only be eclipsed by his love for family. Bryan endeavors to hold onto memories of his grandfather, but, more importantly, carry on the values and principals LeRoy taught him. Bryan is honored to share with you 6 bullet point lessons from his grandfather. Check it out here.
The photo above shows Bryan and LeRoy at the 2012 Berkshire Hathaway Shareholder’s Meeting in Omaha, NE.
The high and low record sales for the past quarter include a 1 bed, 1 bath condo in Aurora for $100K and 5 bed, 12 bath estate in Cherry Hills Village for $7.8MM. Click the icon below to check 'em out!
**QUESTION of the QUARTER: Should I finish my basement?
Case in Point : In late March, our client, Grant, asked our opinion as to whether it was a good idea for him to finish his basement. The email exchange below is used with Grant’s permission and was slightly modified for clarity.
Q: Do you think I should finish my basement? As you know, my townhome contains 2 bedrooms, 3 bathrooms, and my unfinished basement has around 500 sq ft. I’m not planning on selling anytime soon and I could use the additional living space.
A: Great question! The decision to finish your basement should be based on three primary factors: (1) how long you plan to live there, (2) how much use out of the finished basement you’ll get, and (3) how much money you can get back on resale. Since you will be living there for the foreseeable future and will receive enjoyment and increased utility out of finishing your basement, future resale is what we will consider below.
To determine resale value, a quick MLS inquiry tells us that townhomes in your neighborhood sell for $300/sq ft. A rule of thumb is that finished basement square footage is valued at 1/6 of the average price per square foot and that unfinished basement square feet is worth $15/sq ft. Using this general rule, finished square feet in your neighborhood is valued at $50, which is $35 more than unfinished.
Currently, contractors in the metro area are charging $50-$60/sq ft to finish basements, therefore, you can plan on spending $25K-$30K to finish your basement and receive approx. $18K back on resale. When factoring in your own personal use and enjoyment of a finished basement, I think a basement finish makes sense... If you can wait 1-2 years when material and labor prices are expected to be less, then it makes even more sense!
That said, for your particular property there is one additional, special factor to consider... if you decide to add a bedroom while finishing your basement, it will increase the number of bedrooms in your townhome from 2 to 3 and we know from experience that the premium for having 3 bedrooms in your particular neighborhood adds an additional $20K premium. Therefore, spending $25K-$30K on finishing your basement and adding a bedroom will actually give you $38K of resale value. Finishing your basement (and adding a bedroom) definitely would be a smart investment for your particular property.
Contact us anytime you have a real estate-related decision – refi questions, property tax concerns, renovation ideas, etc. We’re more than just Realtors, we’re real estate advisors.
As we enter into spring, we are delighted to be your real estate resource and connector. We are Greenwood Estates Realty, "The best real estate experience you've ever had."
Enjoy the beautiful weather we’re having and the blooms ahead; we’ll catch you soon!
Bryan & David
P.S. - check out previous versions of our Quarterly Newsletter.