It's Almost Farmers' Market Time!

As the days are now longer and we are starting to see more temps above 70 degrees. I am reminded
that it’s almost time for the Farmers Markets to open for the summer. Each year my husband and I look forward to spending Saturday mornings walking down the vendor aisles looking for items to try. The peak of our summer is when the melons come in from Rocky Ford.

Denver has some amazing markets to choose from for fresh and locally grown fruits, vegetables and wines, each with a different personality. In addition to fresh fruits and vegetables, some have music, some have chef event and some have local eateries. If you are a regular at your local market, maybe this is the year you check out a market that isn’t in your neighborhood. If you’re looking for a new place to try, here is a roundup of some of these great markets.

CHERRY CREEK FRESH MARKET 

E. 1st Ave. and University Blvd.

The Cherry Creek Fresh Market is called the “Cadillac of Farmers Markets,” and for good reason. Not only can you find locally grown produce and food vendors, you can also enjoy live musicians, chef events, and gardening tips from Master Gardeners and Master Composters. Parking is free during the market.

WHEN: Saturdays, May 5–Oct. 27, 2018, 8 a.m.–1 p.m.; Wednesdays, June 13–Sept. 26, 2018, 9 a.m.–1 p.m.

CITY PARK ESPLANADE FRESH MARKET
E. Colfax Ave. and Columbine St.

This is a great farmers market located at the historic Sullivan Fountain is the City Park Esplanade Fresh Market. This market focuses on a strong agricultural market so you will find a great selection of locally grown fruits and vegetables. There's also plenty of free parking.

WHEN: Sundays, June 3–Oct. 28, 2018, 9 a.m.–1 p.m.

THE FARMERS' MARKET AT HIGHLANDS SQUARE

32nd Ave. and Lowell Blvd.

In its fifth year, The Farmer’s Market at Highlands Square not only has farm-grown fruits and vegetables, and live music but a charming location. While there you can also visit the local boutiques and eateries.

WHEN: 2018 dates not available yet

STAPLETON FRESH MARKET

E. 29th Ave. and Roslyn St.

Located at the Founders' Green, the Stapleton Fresh Market has the typical local produce but also freshly popped kettle corn. As opening day is Father’s Day, wouldn’t this be a great place to spend it?

WHEN: Sundays, June 17–Oct. 14, 2018, 8:30 a.m.–12:30 p.m.

UNION STATION FARMERS' MARKET
Denver Union Station Plaza

As the name indicates, the Union Station Farmers’ Market at the historic Union Station, It features local produce, meat, dairy, coffee, baked goods as well as chef demos and live music.

WHEN: Saturdays, May 12–Oct. 20, 2018, 9 a.m.–2 p.m.


OLD SOUTH PEARL STREET FARMERS' MARKET
On the 1500 block of Old South Pearl St., between Florida Ave. and Iowa Ave.

The charming South Pearl neighborhood is host to the Old South Pearl Street Farmers' Market every Sunday in the summertime. There is fresh produce, ready-to-eat treats, artisan cheeses, just-out-of-oven baked and freshly roasted chilies.

WHEN: Sundays, May 20–Nov. 18, 2018, 9 a.m.–1 p.m.

HIGHLANDS RANCH FARMERS' AND STREET MARKET

9288 Dorchester St., Highlands Ranch

A potpourri of fresh produce, garden décor, cooking equipment and handbags can be found the Highlands Ranch Farmers’ and Street Market.

WHEN: Sundays, May 6–Oct. 28, 2018, 10 a.m.–2 p.m.

LITTLETON FARMERS' MARKET
7301 S. Santa Fe Dr., Littleton

The Aspen Grove Lifestyle Center hosts the Littleton Farmers Market. Great shopping can also be found in the Aspen Grove shop. Try the Bistro for breakfast or lunch while you are there. If you don’t want to deal with the traffic on Santa Fe, take the light rail to Aspen Grove.

WHEN: Wednesdays, June 13–Oct. 10, 2018, 10 a.m.–2 p.m.

FOUR SEASONS FARMERS AND ARTISANS MARKET
7043 W. 38th Ave., Wheat Ridge

Although the Four Seasons Farmers and Artisans Market has year-round indoor shopping, it offers an open-air option during the summer. The focus of this market is healthy, high-quality foods such as fresh fruits and vegetable, raw goat milk, preserves, baked goods duck eggs, flower and local meats. Artists, jewelers, and photographers also display their work.

WHEN: Saturdays, May 19–Oct. 20, 2018, 9 a.m.–2 p.m.

SOUTHWEST PLAZA FARMERS' MARKET

Southeast Parking Lot at Wadsworth and Bowles Ave.

This is my neighborhood market. You will find the usual fresh produce, baked good, and honey. One of my favorite wineries, Avanti, also has a booth where you can try samples of their wine. Sometimes the Tupperware lady is there also.

WHEN: Saturdays, May 5–Oct. 27, 2018, 8 a.m.–2 p.m.

LAKEWOOD FARMERS' MARKET

Mile Hi Church, Alameda Ave. and Garrison St., Lakewood

The Lakewood Farmers' Market, features kettle corn, cheese samples, as well as fresh produce. While there you can also check out the knitted shawls and handmade soaps.

WHEN: Saturdays, June 16–Sept. 29, 2018, 10 a.m.–2 p.m.

What Can a Buyer Do in a Seller’s Market?

There is no question that we are still in a Seller’s market. The median sold price in February was up 10.3% over the 2017 February median sold price. The lack of inventory and the competition for homes is especially frustrating to buyers. If you are a buyer and you are tempted to give up looking for a home, I have a little good news for you.

The Denver Metro Realtors Association released their April market report with some positive news for Buyers. The Market Trends Committee saw active housing inventory increase 13 percent month over month in March to 4,482. As the Denver Metro February 2018 numbers saw the lowest inventory mark, this is significant.

In March, 6,335 new listings were added to the housing market, an increase of 36.44 percent from the month prior. That increase was slightly offset by 5,674 listings being placed under contract, demonstrating strong home buying activity.

So, what can a buyer do to improve their chances of getting their offer accepted in this competitive market? Below are some tactics to use during the search and offer process.

When looking for a home:

1. Have a pre-approval not a pre-qualification letter from a quality lender. A pre-approval means the lender is indicating that based on the info the buyer provided, they look to be qualified. Any new information obtained during the pre-approval process could change this. With a pre-qualification letter, the lender has taken the next steps and verified the income and asset information provided by the buyer. This will significantly cut down the loan process timeframe and reduce the possibility of the loan falling through. The Seller will see your offer as stronger than those with a pre-qualification letter. Not all lenders are equal. Using a locally based lender that knows the area will reduce unnecessary requirements. You also want a lender that has a track record of closing transactions. The right lender made the difference on one of my transactions.

2. Have as much cash available as you can manage so you can make your highest and best offer when you are ready to submit an offer. You may not get a chance to negotiate. Having cash is not possible for some people if you don’t have assets you can use. However, if you don’t have the cash available you might be able to use your 401(k) account. Most 401(k) accounts allow the withdrawal of funds to purchase a primary residence. The withdrawal becomes a loan that is paid back from your paycheck. Of course, those funds are meant for your retirement so you may be hesitant to withdrawal from your 401(k). Here is an alternative. A lender I work with has a program where you can pay for the down payment with cash from your 401(k) and then they will concurrent give you a loan at close that will pay back the 401(k) money. It is set up to pay off the 401(k) loan in the time frame that will eliminate any penalties.

3. Have your Realtor contact homeowners in your preferred neighborhood. The agent can call or mail the homeowners a letter letting them know that they have a buyer that is interested in purchasing a home in the neighborhood. They can also contact expired and withdrawn listings. This tactic can be used to find homeowners that have considered selling but don’t have their property listed. They may not want to deal with the hassle of listing their home.

4. If you have a home to sell, get it under contract before you make an offer. Like it or not, Sellers see a home contingency as a negative. They fear that if they must wait for your home to sell then it may cause problems for the closing on their transaction. If your home is under contract already, then it reduces some of the Seller’s worry. A better tactic might be to sell your home and rent until you find the home you want. This tactic not only removes the contingency but may make your offer a cash offer. A definite point in your favor as far as the Seller is concerned as it will likely mean a faster close.

5. Consider delaying your home search until September. Prices and competition for homes start to drop off as kids go back to school and people start thinking about the holidays. There won’t be as much inventory either, but you won’t have to go up against 20 other buyers if you find the home you want. A bonus point is prices will be lower.

When making an offer on a home:

1. Agree to make earnest money “hard” after a certain date such as after the inspection. This means the earnest money will not be refundable after the specified date. It shows the Seller that you are a serious buyer and reduces the possibility that the buyer will get “buyer’s remorse” and back out of the transaction. A Seller’s worst nightmare is to take their property off the market for four weeks only to have the buyer walk away before the transaction closes.

2. Use an escalation clause. An escalation clause states that the buyer is willing to beat any offer higher than their offer by a specific amount over the highest offer with a maximum purchase price. For example, the purchase prices might be $250,000. The escalation clause will state the buyer is willing to beat any offer over $250,000 by $1000. As long as the final purchase price does not exceed $260,000. Escalation clauses have positive and negative points. The downside is the Seller will know exactly what is your top purchase price. If there are multiple contracts, then escalation clauses are nightmares for the listing agent. One of the positive points is that your offer will not be automatically be kicked out by higher offers.

3. Agree to pay the difference if there is a gap between the appraisal and the purchase prices. Lenders will only lend on the lesser of the appraised value and the purchase price. In the past, if the appraisal came in lower than the purchase price, then the contract was open for negotiation. Recently we have seen buyers offering to pay the difference. If you use this strategy then your real estate agent should have a very strong handle on the values in the neighborhood. Prices will most likely go up but if they don’t, you may have overpaid for the property if you paid for the appraisal gap.

4. Agree to either waive the inspection or agree to require no inspection requirements. I would never recommend waiving the inspection unless it’s a very new home. Even then I would recommend getting the inspection, so you know if you have any potential issue. If you get the inspection you can agree to not request any fixes. Repairs required by home inspections are expensive for seller so knowing that they won’t have to make any repairs could be a point in your favor.

5. Write a letter to the Seller about what you value about the home. It may seem corny to you but Sellers want buyers that will love the home as much as they did. It puts a face to the buyer and personalizes it for the Seller. I have seen more than one transaction where the Seller went with a buyer with a lower offer because they liked the letter the buyer wrote.

Finally, all of this may seem overwhelming so your first step is to select the right real estate agent. A good agent will already know these tactics and when to use them so they can make the process stress free for you.

If you are interested in seeing some more stats from the Denver Metro Realtor’s market trends report, you can down the report at this link-  DMAR April Market Trends Report

What Does theTax Cut Bill Mean to Colorado Homeowners?

As a Realtor, it is my responsibility my clients to stay current on any issue that impacts homeownership including taxes. If you are a homeowner, you may be wondering what the impact of the tax bill will be to you. As most of the changes take effect on the 2018 tax year most of the tax preparers are waiting for direction. However, there are a few areas where the tax implications are known so I am covering them today. 

MORTGAGE INTEREST DEDUCTION

For many people, the mortgage interest deduction is one of the few remaining write-offs they have. In the original House bill, the mortgage interest deduction was limited to $500,000 and second homes were no longer allowed for the deduction. Congress apparently heard the concern being voiced before they finalized the bill as the mortgage interest deduction was lowered from $1 million to $750,000 with a mortgage age condition instead. The reduced mortgage limit of $750,000 only applies to mortgages originated after 12/14/2017. For mortgages originated before 12/14/2017 the mortgage interest remains deductible on existing mortgages up to $1 million. The second home mortgage interest deduction is also still allowed. Additionally, the homeowner with a grandfathered $1 million loan can also refinance that loan and maintain the $1 million deductibility limit as long as the new loan amount does not exceed the amount of the mortgage being refinanced. Granted there are certain areas where 750,000 mortgages are more common. In those areas, the new bill could have a negative impact on home prices. As the median home price in Colorado is below $400,000, the limit to $750,000 won’t impact most people.

GAIN ON SALE OF HOME

This item was also causing quite a bit of concern prior to the passage of the bill. In the original House and Senate bill, the time a homeowner must live in their home to qualify for a capital gains exclusion would have changed from 2 out of the last 5 years to 5 of the last 8 years. If passed, many potential sellers might have delayed selling their home for a year or two to avoid the capital gain tax. With Colorado’s limited housing inventory, this would have further reduced the number of homes available. Thankfully, this item was removed so the exclusion has not changed. The exclusion allows homeowners that have lived in their home for 2 of the last 5 years to exclude up to $250,000 of capital gain as a single person or $500,000 as a married couple.

STANDARD DEDUCTION

The final bill doubled the standard deduction for joint filers. Because the tax advantages won’t be significant most homeowners won’t itemize deductions for mortgage interest and property taxes. If you find itemizing cumbersome you might find the change an improvement. Some real estate professionals feel that without the tax difference between renting and owning a home, some people will choose to rent rather than buy. This would reduce the demand for homes. Personally, I believe most people buy a home for reasons other than the tax write off.  My clients express a desire to be able to buy a home they can personalize as their own. Or they want to be in a specific school district. Another reason expressed is the benefits of a long-term investment as property values have always increased, some years more than others. All of these reasons are not available to a renter.

DEDUCTION FOR STATE AND LOCAL TAXES

The final bill still allows homeowners to deduct property taxes but sets a cap on the amount of the deduction at $10,000 for both single and married couples. Where property taxes are higher in certain states, the $10,000 limit is significant. As property taxes remain comparatively low in Colorado, the deduction limit probably won’t have much impact on our housing market.