Quarterly Real Estate Newsletter - Q2 2021


Friends,

“Bidding wars,” “low inventory,” and “inspection and appraisal waivers” were popular phrases used to describe the Q2 Denver metro real estate market. While they fairly characterized “starter” homes priced under $550K, the most important task of a real estate agent during Q2 was to separate fact from fiction, as every news outlet had an anecdotal story or two to sensationalize what was happening in the market. We appreciate being your trusted source for Denver metro real estate news and telling you what’s really going on and what to expect next…

After experiencing four consecutive months of record-setting sales, the market is beginning to indicate signs of a slowdown. When do we expect inventory to increase significantly and what are the best days of the week to shop for newly listed homes? Check out our quarterly newsletter to find out HERE


 

The second quarter kept us busy as we listed many wonderful properties, helped our buyers (including several first-time homeowners!), and marketed a 12-unit condo building in the DTC complex of Boston Commons. The listing has kept us very engaged, with plenty of buyer interest on the $3.5MM, 7.0% cap rate investment. Check it out here.

Our brokerage set several new neighborhood sales records from our listings, including the highest priced two-story home in Meridian Village (on a price per square foot basis). Our listing at 10719 Worthington Cir set the record at 293/sq ft, when we sold it for $711K, which was $61K over list price!



 



Emilia just turned two and is keeping her parents on their toes as she runs, climbs, bear crawls, and somersaults 🤸‍♀️ her way through the Zerr household! Emi celebrated her “Baby Shark” themed birthday with close family members, which was highlighted by her first “dress-up” vanity set, light-up scooter, and rainbow tutu with matching flower crown. Bryan, Brianna, and Emilia can be seen splashing around and enjoying a pool near you this summer!






With school wrapped up, the Jimenez family headed for their favorite vacation spot: Seaside, Florida! Upon returning from their trip, family days have consisted of lots of pool time and reading for the kids. David, Briana, and the girls are excited to see family and friends, once again, and return to making summer memories.

 

The high and low record sales for the past quarter include a 1 bed, 1 bath condo in the Dayton Triangle (Denver) for $100K and 5 bed, 7 bath modern estate in Polo Club (Denver) for $9.0MM. Click the icon below to check 'em out!



 

**QUESTION of the QUARTER: Should I add SOLAR?


Case in Point: : Over the past quarter, we’ve had 3 clients consider adding a solar system to their home and wanted to understand its impact on resale value.


Generally, there are three ways to acquire solar energy systems: purchase, lease, or lease with the option to purchase. A purchased system with no balance owed is the only scenario where solar systems provide resale value, which typically produces a premium equal to 5 years (60 months) of the energy savings it produces. In other words, if the solar system produces $75 of electricity value each month, the incremental value that solar system would create upon selling the home would be $4,500 ($75 x 60 months). Not a great value, considering most solar systems cost $15K-$25K+ plus any initial setup, ongoing service fees, and interest or finance fees. Further, the cost savings of solar systems are too complicated for the marketplace to understand and the average consumer has a difficult time fully grasping the cost savings and, therefore, is unwilling to pay the premium that sellers expect on their solar system-equipped homes.


Further, solar systems can actually reduce the value of your home in some instances. If the system is leased or financed, most solar companies require that the new buyer must “qualify” through their own lending standards in order to assume the lease. Several times, we’ve seen buyers qualify for their home mortgage , but run into snags with qualifying for the solar system since it uses different standards. We’ve also seen consumers encounter additional costs when filing hail claims and replacing their roofs. The roofer will require the existing solar panels be removed so the roof can be replaced and most solar companies charge $500-$1,000+ to remove and re-install the solar panels upon completion of the roof replacement.


While we encourage the use of renewable energy and protecting the environment, from a purely economic perspective, most of the time solar systems do not make financial sense for the consumer when it comes to return on investment for energy savings and eventual resale value. Tread carefully, and let us know if you have questions concerning your specific situation.


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 the hot summer months, 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 summer; we’ll catch you soon!

Blessings,

Bryan & David

P.S. - check out previous versions of our Quarterly Newsletter