How to Negotiate When Buying a Home

In today’s fast-pass housing market, especially in Denver, going to buy a home can seem like an experience at an auction house. You know what I’m talking about right? Where the auctioneer (here being the home owner) has the ultimate say and you and a good dozen people stand around hoping to make the final offer and hear those magic words of “Sold!”.

So how can you best prepare when going in to negotiate? What is the best way to approach an initial offer, decide on a good price, and finally, sign on the dotted line for ownership to the house of your dreams?

Well first thing is first, you need to have help in your corner from day 1. Working with a REALTOR® is going to put you ahead of the curve because REALTORS know the industry inside and out. We know how to negotiate with sellers and buyers, we know the neighborhoods and what houses are worth, and finally, we know how to get down and creative if we need to in order to help negotiate the best price and outcome for you and your family.

First and foremost, when looking to buy or sell and when it comes to negotiations, find a good REALTOR® and even better a REALTOR® who is an MCNE ( Master Certified Negotiation Expert) (if you are looking currently feel free to give me a call, happy to talk with you).  But here are some other suggestions when it comes times to negotiate for the house of your dreams.

Denver is currently in a sellers’ market, meaning that there is a high demand for houses and sellers’ hold the power. In this type of market you need to move quick when it comes to a desirable house and make a good connection with the buyer. If a buyer doesn’t like your offer, they won’t spend a lot of time negotiating with you. So when working in this market, keep it very simple in the steps to make before negotiating and the steps during negotiation:

•  In any market, it is essential to get pre-approved right away for a loan. If a seller sees you have the means to purchase their house that always makes them more comfortable with negotiating.
• Go in strong with your offer, offer the asking price or something close to it.
• Consider writing a personal letter with your offer or even add a photo to let the seller see who the potential buyers are and an image of the new people who would enjoy the home just as much as the seller did.
• Ask only for the standard contingencies — financing, appraisal and inspection — to protect yourself down the road.
• If you really like the home, be prepared to move quickly, houses do not last long in this market.

With all of these negotiation tools in your back pocket, it is exciting to think about finding that perfect home to call your own. Always remember, REALTORS are here to help you through the processes and are your advocate and if you are looking to buy or sell, don’t hesitate to give me a call and chat about what you are looking for, I am more than happy to lend any and all master negotiation skills I have!

Photo by alengo/iStock / Getty Images

K-I-S-S - How To Start Your Own Business

So you want to start your own business, where to even begin? I would recommend first sitting down and talking with other entrepreneurs and asking them any and all questions you might have about beginning your own company. Small business owners love to network and connect with other likeminded people. Use them as mentors. Take notes and listen carefully to what advice they have to give, try to talk to a range of entrepreneurs too. Find people who have been doing this for years and find a few who are new like you that way you can get a wide range of information to help you start.

Of course the big question is, what will you be starting in? What is it you have decided to take on as a full-time entrepreneurship business? If there is any bit of advice I can give that you take away from this, start a business in something you know and something you have already done. The more you know about your business, the easier a transition will be and the more knowledge you will be able to have on all matters and we all know knowledge is power! You want to start a business where you will thrive on a daily basis, start in something you hold a great amount of information about.

It doesn't have to be complicated.  My dad always used to say "KISS" - Keep it Simple... and you know the last word.  The last word isn’t the nicest word so let’s say Silly for now…Keep It Simple Silly! You know what you know, you are good at what you are good at, and that is where you should focus your entrepreneur endeavors.

Start with the basics. Here are some pointers I would recommend that I used when first starting my own business. I found each of these to help guide me as I began my journey as an entrepreneur: 

1. What will the name of your business be?  Look on your Secretary of State website to see if the name is available.  If it is, reserve it until you are ready to actively start your business. 

2. Talk to legal council and a CPA to find out how you should structure your business.  S Corp, LLC, LLP, etc.  Find someone in your sphere of influence who you know will be a good resource and will protect you.  Don't try to do it yourself.  Hire a professional and mention you are a start up and need to keep your cost as low as possible.  They will work with you if they want your business, believe that you have a viable business and want to see you grow. 

3. Register your Business name.  Check the Secretary of State Business database to see if it is available

4. Get a FEIN ( Federal Employee Identification Number)

5. Get a Business License

8. Look into doing business with your municipality.

9. Understand Federal State, county and city tax requirements.

10. Once you have established the name and company structure open a separate bank account.  Do not mix your personal with your business.  It will be too difficult for your CPA or tax person to sort it all out.  

11. Set up a simple accounting system.  Sign up with a QuickBooks online account or if you can find a free online or cloud based accounting system that you can access from anywhere.  We are so mobile these days and it's helpful when starting out to have everything at your fingertips as most likely to start you will be the one to do the accounting until you are able to fire yourself and hire someone else.  Unless of course you like to do accounting them keep your position with the company.

12. Identify your customer segments and revenue streams

13. Meet with other business owners, councilors to get questions answered.  Get a mentor, someone who can help you through the process and who has been there and knows how to succeed in business.  

14. Get a website or Just simply a Facebook business page. If you want to be in business your business card is your website or online presence.  There are free websites and low cost hosting available.  I recommend Squarespace for a website template and Host Gator or Google for your hosting.  Try to use your business name as your website or get as close as possible.  

15. Marketing collateral.  Make some business cards.  They don't have to be expensive you just need to have them.  Vista Print offers free business cards and you just have to pay shipping.  

16.  Social Media. Start marketing your new business on social media.  Create A Facebook Page, Instagram, Twitter and Linked in account if you don't already have one. If you can link all of your social media together to host all posts, images, write-ups, and etc. great that means less work for you! Again keep it simple.  Start with one page and start sharing posts about your business.  Remember don't sell your business, inform people about what you do and how you can help them.  People don't like to be sold they like to Buy.  I recommend a great book called The Little Red Book of Selling by Jeffery Gitomer.  Jeffery talks about this and how to get yourself into the marketplace without selling.  

17. Networking. Start to network in your community.  Go to free networking events and socialize with other business people.  You will connect with people who can help you with your business. 

18.  Insurance -  make sure to get business and liability insurance and make sure you know what is needed for your business.  

There is so much more but these are the basics to get you started. Remember, start with what you know and also what you love and as they say, you will never ‘work’ a day in your life because you are doing something that sparks a fire in you. 

Photo by Oko_SwanOmurphy/iStock / Getty Images

#StartYourOwnBusiness #BrigetteModglinRealtor  #AllThingsBusiness

 www.BrigetteModglin.com 

Looking for My Next Listing - DO YOU HAVE WHAT I AM LOOKING FOR?

So I am going to try something a little different this week because different can be a good thing right? I am looking for my next listing and looking in-depth at the RiNo area in downtown Denver for both commercial and residential properties. So my question to all of you is simply this: do you have what I am looking for and if so, are you ready to pair up so I can help you sell and/or buy the property of your dreams?

Here are some facts about RiNo that make it such a great place to be - 

- RiNo is called an "art district" for a reason. With a vast array of creative businesses such as art galleries, designers, illustrators, authors, wineries, distilleries, painters, and photographers, this is one of the most up-and-coming areas in the city.

- There is constant building going on, from new apartments to coffee shops and hip restaurants, this ever-expanding area is the ideal place for anyone to live.

Here are some facts about me and why we should work together if you have some RiNo space - 

- I have loved Denver for a long time and have worked countless years in the downtown area so I know it like the back of my hand. I enjoy all of the amenities that RiNo has to offer from the art to the coffee shops, you can find me down there at least two days a week. 

- I'm a realtor which means I get satisfaction in helping people sell their homes as well as find their new homes. With many people moving to this area, I strive to continue to help each and every person who wants a place to live or work from find the location that best suits them. 

If you think you have the right listing for me, shoot me an email or give me a call and lets go grab a coffee in RiNo.

brigette@brigettemodglin.com // 

#LetsWorkTogether #ILoveAllThingsCreative #BrigetteModglin

Paying Over List Price

Spring has sprung around the Denver area and with the changing of seasons and new life sprouting everywhere there also begins the new busy season in the housing market. Have you decided this spring might be the perfect time to start looking for that dream home of yours? There is no time like the present and as Denver continues to grow on the daily, if you are ready to purchase a home, start looking today but be prepared for what you might run into along the way.

 In the Denver market, many buyers are paying over the list price, which can be hard or uncomfortable when you are entering the market with a specific budget in mind. Due to this being a sellers market where homes sell quickly and sellers have a lot of pricing power often even the appropriately priced homes in the Denver metro region sell quickly and receive multiple offers and even cash on the spot offers. In the last month alone, 48 homes in Denver urban neighborhoods went under contract in 7 days or less and sold for 102% of their original list price. The seller and the listing agent determine the list price based on the current market and by comparing recent sales of similar homes. If priced well, the home will fall within a verifiable range based on those sales. Please understand this is a range and there is not set number.  To ensure the home is priced accordingly, ask your Realtor to look at sold and under contract comps in the neighborhood and to discuss those with you.

 With record low inventory and high buyer demand this is causing homes in the Denver metro region to appreciate rapidly. The rule of thumb is to look at comps within the last three months.  If you look back further than three months this can skew your price point and your mental willingness to aggressively pursue the home. Denver homes appreciated at an average of 17% over the last year. This means that the home you could have purchased 12 months ago for 400k is now worth 451k. This provides a solid case and can make you more comfortable when offering over list price. One thing not to do is wait to make an aggressive offer until you have searched for months and lost out on several homes due to being outbid because you could very well price yourself out of the market.  Here are some guidelines you and your agent can employ to help you get under contract and into your next home:

·       Pursue homes priced below the top of your price range. Giving yourself a 3-5% financial buffer will allow you to comfortably bid over list price, providing you a competitive edge and more leverage.  

·       Unless you are paying cash for the property, an appraisal will be required. The appraisal is an official report comparing similar properties (comps) to determine the value of the home you are purchasing. The lender will use this appraised value to determine how much money they will lend to you. If the offer you submitted on the property is higher than the appraised value, you will need to account for the difference.

·       As the buyer, be prepared to make up that difference by bringing cash to the closing table. If the seller is willing to negotiate, they may adjust the purchase price or look to find a compromise between the two. If you reviewed the comps with your Realtor prior to making an offer, you should have a realistic idea of the value of the property.

If your offer far exceeded the homes estimated value, in order to get under contract, there is a good chance the deal will crash at appraisal. Another buyer, the one with the solid and realistic backup offer, is waiting for this to happen. Moral of the story: Make sure you can follow through on your offer before submitting it.

·       Consider terms when writing a competitive offer. The highest offer is not always the deciding factor for sellers. In other words, those with the most money do not always win. A well-written contract with terms that address the seller’s needs is equally important. Does the seller need to find a replacement home? If so, your offer should allow them time to do just that. Will they consider making a concession for updates or closing costs? If not, don’t ask for them in your initial offer. Are there any other offers on the property? If so, you need to adjust your offer accordingly. An experienced Realtor will call the listing agent to ask questions specific to your purchase, allowing you to craft an offer that works well for both parties. The fact of the matter is: If multiple parties are imagining living in the home you love, you’ve got to move past the list price before putting out the welcome mat. Talk to your Realtor about thoughtful strategies to secure your next home.

 If you think you are ready to dive in and start looking, start your search here. I know how daunting it can be to begin looking for that dream house of yours and I am here to help you take those first and last steps to securing that special place. 

Photo by: Walnut Street Photography  Flour Mill Lofts - Denver 

Shipping Container Architecture - We love all things modern and historic!

I have partnered up with a local Denver Architect, Carolyn Corogin and we have come together to form The ModCOR Group LLC.  We are a 100% woman owned Business and we will be redeveloping or developing in the Denver Metro area.  We love all things modern and historic and are looking forward to our first project together. 

I first met Carolyn three years ago when she wanted to look at a loft at the Walnut Loft or know as the  in RiNO.  It was a Penthouse loft that was a short sale.  She took one look at it and decided to make an offer.  It was the only property I showed her.  It was love at first sight!  We went under contract and thirty days later it was Carolyn's

Later on Carolyn decided that her Benjamin Moore loft was getting a little small as she works at home as a full time Architect, Visual Artist and Interior Designer.  She wanted another penthouse on a corner with two parking spaces and some views.  I looked for over a year to find Carolyn her larger perfect loft and I finally found her a gorgeous loft at the Cherokee Lofts in the Golden Triangle.   Unfortunately Carolyn did not like the way it was designed so she completely remodeled it from head to toe (pictures coming soon)  I just recently got the pleasure to see her loft now that it is complete and it's is absolutely stunning, a true master piece and work of art.  

Carolyn and I continued to stay in touch and worked on referring business to each other over the years.  At the beginning of this year we decided to become partners so we could start working on redeveloping, renovating and restoring old properties or possibly just building from scratch.  We met at the Source Downtown and just started talking about that project and what we liked and didn't like about it.  We though if only we could get our hands on a building like that we could really do something wonderful.  While we didn't find anything like the source we found a building that was just as unique and interesting, an old church in Downtown Brighton.    It was just what we were looking for and it was in a an area that has a lot of potential.  So we decided to to make an offer and go for it.

We are currently under contract on this old 1968 building in Downtown Brighton that has been vacant for about 10 years.  It's our understanding that this building was an old Buddhist Church.  Our plan is to redevelop this property into Retail and either a Tap Room , Brewery or Restaurant.  That plan is not set in stone as we still need to get through to the planning department and our due diligence to make sure this project makes sense.  This property is currently on the Historic preservation list so we will be working on getting it designated as well once we close.  This will allow it to be on the national historic preservation list.  We have also been told there is an old Pinyon Tree that sits on the property so we will be designing this project around this pinion tree so we don't have to cut it down.  Most of the trees surrounding the property will be incorporated into the project as well.  

Are designs will use sustainable practices and green building techniques.  Each of our projects will incorporate using old shipping containers as part of the architecture and design. I have included a couple photos of some shipping container projects in the Denver metro area.  One is the Starbucks on 104th and Bannock and the Cart and Driver, Huckleberry Roasters Building at 2500 Larimer.  

Stay tuned for more details on this project and we would love to hear your comments and feedback.  

#ShippingContainerArchitecture  #Brewery #TapRoom #BrigetteModglinRealtor #AllThingsModernandHistoric #BrightonBuddhistChurch