Black Friday Real Estate Deals + Happy Thanksgiving!

The real estate market has continued to slow as we enter the holiday season. This is completely normal for this time of year and as always, the slower market offers an excellent opportunity for investors and owner occupants alike. I have investor clients who have done incredibly well buying rental properties during the holidays and it's also a great time for owner occupants who happen to be looking right now. Every year there are sellers who came on the market too late in the season and at too high of a price. As the holidays approach, some sellers become very motivated.

Traditionally, I see properties selling at a 5% discount during December, but this year it is entirely possible to purchase a property for 10% lower than it would have sold for this past spring/summer. And as a bonus, it will most likely be worth more by next March. I have seen this pattern play out year after year.

High interest rates are the reason why the real estate market is especially soft right now, but interest rates have recently dropped a bit because of reports showing that inflation is under control. With some seller paid closing costs, it's possible to get a rate that starts below 6% for an owner occupant. Please call me to discuss the opportunities that the current market presents.

For sellers, it's best to list after the New Year since the market will pick up once the holidays are over. I'm predicting an active market in the first half of 2024.

If you are interested in viewing the 3rd quarter real estate statistics for your specific market area, click here.

Lastly, I'd like to take a moment to express my gratitude to you, my clients, for your business, referrals and friendship. I am sincerely thankful for you. Happy Thanksgiving to you and your family!

All the Best,

Rich

New Radon Law - Landlords and Tenants Take Note!

You may or may not be aware, but Colorado has a new law that went into effect last month regarding radon (CO Senate Bill 23-206). Radon is a naturally occurring radioactive gas that is derived from decaying uranium in soils. The toxic radon gas produced then exits the soils and can enter homes. Prolonged exposure to radon gas has been linked to lung cancer, which prompted the State of Colorado to establish the new law to better protect homeowners and renters from its harmful effects. Click here to learn more about radon gas.

Read below to learn how the new radon law will impact the different real estate parties.

This law applies to real estate contracts or leases signed on or after August 8, 2023. These new requirements do not apply for contracts and leases signed before this date.

Sellers

• If you are selling your home, you will need to disclose any knowledge of radon concentrations to a buyer. This includes any radon test results you have or any information about radon mitigation systems installed in your home. Your contract will also need to include a warning statement about radon and recommendation for testing.

• There is now a section included in the seller's property disclosure that you fill out when selling your home. This disclosure along with providing any radon documentation for your home will fulfill your disclosure requirements under the new law.

Buyers

• If you are purchasing a home, it is your responsibility to read and acknowledge the provided seller's property disclosure as well as read the EPA Guide on Radon.

• It is highly recommended by the Department of Public Health and Environment that you have a professional radon test conducted before purchasing a home. This can be completed with your home inspection by a qualified inspection company.

Landlords

• Landlord disclosure requirements are similar to sellers. You will need to disclose any knowledge of radon concentrations to a potential tenant. This includes any radon test results you have or any information about radon mitigation systems installed in your home. You also need to provide them with the EPA Guide to Radon.

• Your lease will also need to contain a warning statement about radon and the recommendation for testing. If you use a platform such as Zillow or have a property management company create your leases, they should automatically include the required disclosures.

• If you are creating your own lease, you will need to be sure to include the appropriate disclosures and statements.

Tenants

• If you are going to be signing a lease, it is your responsibility to read, acknowledge and sign all documents provided by the landlord.

• It is highly recommended by the Department of Public Health and Environment that you have a professional conduct a radon test before leasing a home. This can be completed by a professional radon testing company for a fee.

Radon disclosure has been a regular part of real estate sales transactions for many years and the additional disclosure does not change the process for buyers & sellers too much. The big change in my opinion is the added disclosure in the rental business. It's a little more paperwork, but will provide renter's with important information about radon. If you manage your own rental property and have questions about radon disclosure and the required forms, feel free to reach out to me if you need assistance.

As always, I appreciate your business and your referrals. I hope you are enjoying this amazing fall weather. All the best.

Smart Regs Deadline Approaching

Investment property owners: In the city of Boulder, the deadline for your rentals to be SmartRegs compliant is December 31, 2018. SmartRegs require all licensed rental housing to meet specific energy efficiency standards. Find more information on SmartRegs here.

If you're not SmartRegs compliant, the first step is to get a SmartRegs inspection to see if your property passes or if you need to make some energy efficiency upgrades. If you need a SmartRegs inspection, I highly recommend Steve Root with PPS Inspection Services at 303-472-3528. Click here to view Steve's website.