Marianne Bandy, CRS, CDPE, GRI

Fortunately for Denver homeowners, our area has not been struck lately by natural disasters like so many other parts of the country. We haven't had to find out the hard way whether we have sufficient insurance coverage on our homes. Unfortunately, many victims of floods, tornadoes and wildfires are learning very difficult lessons about what it means to have enough homeowner's insurance coverage.

Homeowners insurance is a critical piece of your protection plan. Even if your mortgage has been paid off, you should still have insurance to protect yourself from loss. Coverage typically includes loss of use or damage to the house, contents and personal possessions, and liability insurance for any accidents. A 2008 study by Marshall & Swift, a research firm, showed that 96% of homeowners do have insurance. However, they also reported that 64% of the homes were undervalued for insurance purposes. When deciding how much insurance to purchase, there is a balance between cost and benefit, but some problems homeowners run into when trying to submit claims include:

• The home is not valued properly in the policy: the homeowner may have made renovations or the home's market value has changed, and this hasn't been taken into consideration in the policy.
• Insufficient replacement coverage: some homeowners don't realize there are different types of replacement coverage. "Replacement Cost" insurance may not reflect increases in the cost of construction. "Extended Replacement Cost" will pay a higher percentage to account for inflation, but still requires homeowners to update their coverage every so often. "Guaranteed Replacement Cost" will pay the total cost of home replacement, but may be expensive or difficult to obtain.
• Exclusions: sometimes a policy may specifically exclude damage from certain events such as floods, earthquakes, hurricanes or termites. Special insurance may be required to cover these possibilities.
• Contents: Typically contents are only covered at 50-70 percent of the amount of insurance. If you lose items that have appreciated, their value may not be covered.

If you're thinking of selling your Denver home, it's a good idea to check your insurance coverage. You'd hate to get to the point of making a sale and have something happen that isn't covered by your insurance. Then, you might not only potentially lose the sale; you could also suffer a financial loss in trying to pay for any uncovered damage yourself.

For those of you thinking of buying a Denver home, ask your insurance agent about insurability of the home, exclusions, dollar limitations to claims, replacement cost, actual cash value and liability, so you can have peace of mind knowing that you're properly covered.

If you're considering purchasing a Denver home, our team of real estate experts at Bandy Homes can answer your questions and show you some beautiful homes in Denver, Colorado; terrific houses in Aurora; sensational views from houses in Castle Rock, including homes in Castle Pines, a beautiful and secure community; and houses in the Denver Metro Area, including homes in Littleton.

Marianne Bandy

Consider relocation to Denver, Colorado.

The April 2011 month end inventory of unsold homes was at 19,553 units, up 1% from last month and down 9% from April, 2010. The inventory of unsold homes will continue to increase in the coming months. Now is a great time for prospective sellers to discuss listing their home as Denver is in the prime selling/buying season.

4,749 units were placed under contract in April, up 33% from March and down 28% from April, 2010. Please note that in April 2010, the First Time Home Buyer Tax Credit effectively expired. As such, the April, 2010 market saw buyers create a frenzy situation by placing multiple offers on multiple homes in order to insure use of the federal program.

3,429 units sold/closed in April, up 7% from March and down 18% from April, 2010. Please see the above note to appreciate the impact of the First Time Homebuyer Tax Credit program last year. In review, the first time home buyer/move-up buyer needed to have the home under contract by end of April and closed by June 30th. The June date was later changed to September 30th to take into consideration the extended time period required to close a distressed property.

Residential average prices, $248,991 for 04/2011, decreased slightly month over month and year over year.

Single Family average price at $271,969 decreased slightly month over month and year over year. 41% of the Single Family properties sold/closed in April were under $200,000 and 27% were in the $200,000 to $300,000 price range.

Condo average price at $158,438 decreased slightly month over month and year over year. 37% of the Condo properties sold/closed in March were under $100,000 and 74% were under $200,000.

Condo median prices increased 1% to $121,200 in 04/2011 when compared to 03/2011 and decreased 13% from $139,700 in 04/2010.

Single Family median prices decreased 1% to $222,000 in 04/2011 when compared to 03/2011 and decreased 3% from $230,000 in 04/2010.

The leading counties for number of home sales in the Denver market were: Denver, Arapahoe, and Jefferson.

On average a homeowner sells their existing home every six (6) years.

Advice to Sellers:

Establish your expectations as to home pricing, deferred maintenance needs, and the average amount of time required before your home can be sold. Denver is in the prime home selling season. It is time to take advantage of the summer home selling season to sell your Denver home while buyer activity is at its peak.

Talk to us today so we can guide you through the home selling process.

Advice to Buyers:

Rental rates continue to increase and availability of rental properties continue to decrease. Denver continues to be a great market for first time home buyers.

As we move into the prime home selling/buying time of the year, more and more buyers will be entering the market. Establish your personal expectations of Denver home ownership benefits and costs.

One may ask "Does buying really make better sense than renting?" While the answer is personal, one should take into consideration the results of a recent Fannie Mae National Housing Survey which shows that forgetting the finances for a minute, four of the biggest reasons people buy a home have nothing to do with money: they want a place to raise and educate their children, a place where their family will feel safe, to have plenty of living space, and to have control over the space.

Talk to us today about the benefits of home ownership.

If you're considering buying a Denver home, our team of real estate experts at Bandy Homes can answer your questions and show you some beautiful homes in Denver, Colorado and terrific houses in Parker - a close-knit community in Douglas County, including the different levels of living with homes in Stonegate Village. You might also want to consider our neighboring communities for Denver Metro Area homes, including homes in Centennial, Colorado's newest major city in the south Denver metro area.

Marianne Bandy

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Well, it wasn't actually Denver home owners who first posed this question. Shakespeare himself originally had the star-crossed lover Juliet utter the now-famous words, "What's in a name? That which we call a rose by any other name would smell as sweet." In reflecting upon the differences between the Montague's and Capulet's, Juliet seemed to say that names don't change the nature of the object. But a 2010 article in Psychology Today revealed there might be a deeper connection between what we name something and how that makes us feel about it.

When it comes to our homes, a recent study by the University of Georgia showed that what's in a name can actually lead to more money for Denver home sellers. Their research showed that home buyers are willing to pay 4.2 percent more for a property with the word "country" in its name, when other attributes of homes they were considering were equal. What's more, they were willing to pay 5.1 percent more if the name included the phrase "country club!" That's $4000-$5000 more for every hundred thousand dollars of sales price, based on name alone. And the wealthier buyers felt the implied prestige of the name was even more important.

The researchers' one caution was that the name may not have as much importance during recessionary times. If you haven't sold your Denver home because the market was down, it might be time to reconsider now that the market is beginning to improve again. Especially if you live somewhere that has the name "country" or "country club," there could be a nice monetary benefit in it for you.

Keep this idea in mind, too, if you're thinking about buying a Denver home. When you're considering the many great opportunities available in our area today, be sure to look for a home that's right for you and your family, and also offers the maximum resale potential down the road.

If you're considering buying a Denver home, our team of real estate experts at Bandy Homes can answer your questions and show you some beautiful homes in Denver, Colorado; terrific houses in Aurora, Colorado's third largest city, including the country appeal of homes in Tallyn's Reach; or some sensational views from houses in Castle Rock, including the country feel of homes in Castlewood Ranch.

Marianne Bandy

Consider relocation to Denver, Colorado.

If you want to get an extra advantage when it comes to selling your Denver home, then be sure to pay close attention to a recent survey by a major national real estate broker. The company found that 87% of first-time home buyers want a home that is move-in ready. I know it may be hard to envision the benefit of investing time and money in a home you're about to leave, but I've seen many homeowners who were able to justify their asking price and sometimes even more with some timely updates.

As with any home sale, you'll want to make sure your home makes a great first impression. Staging Your Home is one way to do that. For investing in your home, the hard part comes in deciding whether or not to invest in major home improvements. Read our free Cost vs. Value Report for Home Improvements to decide if this is a wise investment for you, but keep in mind that many first-time homebuyers may be inexperienced at home repair or might not have additional money to complete any repairs. That's why they're looking for homes that are ready to move into right away. If you can make your home appealing to them, you'll increase your chances of a quick sale.

If you are thinking about selling your Denver home, a professional realtor can advise you on the best repairs to make to increase your home's appeal to first-time buyers as well as a wide range of potential buyers. You'll learn how to prepare your home for sale and how to market your home so you'll be able to sell it within your desired timeframe and get the best price possible. If you're a first-time homebuyer, be sure to look for a house where the current owners have already made any needed repairs, so you'll make a smart investment and be able to enjoy your new home right away.

If you're thinking about buying a Denver home, our team of real estate experts at Bandy Homes can answer your questions and show you some beautiful homes in Denver, Colorado including houses in Stapleton, the urban development community; terrific homes in Aurora, Colorado's third largest city, including the carefree lifestyle of Saddle Rock Homes; or some affordable houses in Centennial, Colorado's newest major city in the south Denver metro area.

Marianne Bandy

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As a Denver homeowner, you may have seen The Denver Post article which reported that Colorado is about to pass a bill that bans private transfer fees on home sales. Already in place on some Colorado homes, these fees force anyone selling their property for the next 99 years to pay a fee equal to one percent of the selling price to an outside party. With the support of the Colorado Association of Realtors, the Colorado Mortgage Lenders Association, State Rep. Tom Massey and State Sen. Cheri Jahn, the governor is expected to sign a bill outlawing these fees in early June of 2011. Although the exact number of homes in Colorado that may already have these fees attached to them is not known, they are not covered by this legislation. It will apply only to new home sales going forward after the governor has signed the bill.

If you are thinking about buying a Denver home, you'll want to determine whether these fees have been added into your cost estimates and how this bill could affect your purchase price. You'll also want to work with a professional real estate agent to determine whether these fees might already apply to the home you have in mind. If they do, this is something you will want to take into consideration because it could affect your ability to resell this home in the future. Also be sure to request our FREE Report on "8 Important Tips for Protecting Yourself When Buying a Home" so you'll know what else to expect.

Whether you're moving around the corner or relocating to Denver, the real estate experts at Bandy Homes are here to help you understand the impact recent legislation may have on your transaction, so you'll know what costs to expect. We are your Denver area real estate experts, and we're here to help you learn all about the costs and benefits of owning a home. We can answer your questions and show you some beautiful homes in Denver, including some terrific homes in Cherry Creek; some great houses in Parker including the Pinery Golf Community; or some fabulous, family-friendly Highlands Ranch homes.

Marianne Bandy

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