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Denver Real Estate Blogspot
Blog by Judith Clausen
Denver, Colorado
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Denver Real Estate BlogspotMarch 2007
Mar. 13, 2007
Categorized in: Real Estate and Climate Change
Carl Brahe is a Denver home inspector my clients have done business with who has a lot to offer in his newsletter every month. I'm printing it in full because the subject is timely and the information important. Everything we can do to cope with the climate change already upon us may not be enough, but we have to try. Here are some things you should know.
Small Energy - Big OpportunityCarl Brahe, Inspection Perfection Inc
Times of great change bring great opportunities. We are at the beginning of a time of change in the way we build, and the way we generate and use power. In the next few years, new materials and technology may change some aspects of our daily living in ways currently beyond our imaginations.
Dr Hayward (The director of Swinburne University of Technology's master of strategic foresight program) says that, “While there will be, for example, a physical answer to global warming (such as changing our energy needs and resources), there will also be a philosophical, values-driven solution. Ultimately, it is down to individuals' choices … By people taking individual action, the possibility of that future they prefer actually occurring becomes more likely."
New building material technology may produce stunning changes in our homes and commercial surrounding. Already in development is a material that can be used for interior or exterior walls that act something like a giant LCD monitor. The color might change daily or display a different photo or video every few moments. The system is heated and powered by built in photovoltaic solar cells.
There are a growing number of low voltage, DC fixtures and appliances coming on the market. Low voltage radiant heat is available. It comes in plastic sheets that can be cut to fit any shape. Power can come directly from solar panels, wind generator, storage battery or can be powered by a transformer connected to the public electrical system.
Low voltage lighting is already commonplace. Higher voltage AC electricity is converted by transformers to power LCD and other types of lighting. Powering these features directly with solar/wind produced low voltage electricity is more efficient.
Electricity is 100% efficient energy, but there is a great amount of waste in the transmission over power lines and through transformers. Harvesting our own electricity and using it at home increases efficiency. Nothing is lost in transportation.
A compact florescent light that works in traditional light fixtures cleans the air and saves electricity. According to the manufacturer, Bioizer Technologies Inc: “This proven process safely eliminates airborne microorganisms, mold, mildew and fungi, germs, smoke, pollution, industrial solvents, and odors while using less energy than traditional lighting technologies.”
There has been a lot of resistance to solar power because it has come in unattractive packages. New photovoltaic (produces electricity from sun light) solar products may change that. There are already shingles that extract electricity from sun that look like regular composite shingles and last about 20 years. There are new, higher efficiency, thin film solar materials that can be molded to any surface. Spray-on solar panels are in the works.
The way we supply energy to our homes in the near future could defy traditional thinking. Advances in small-scale energy generation has advanced enough that most Coloradans no longer need to pay for electricity. We have an abundance of sun and/or wind in every part of the state. We have the resources and the technology is available to allow us to harvest energy for our own use and maybe a little left over to sell.
In the near future, we may produce our own hydrogen and electricity using fuel cell technology. Homes powered by fuel cells are already common in Japan. Fuel cells are available in the USA.
Systems in development will use electricity from solar or wind sources to make hydrogen and oxygen from water. The hydrogen could be stored and reconverted into electricity for household use with a byproduct of water. The hydrogen might also be used to drive a car. Hydrogen powered fuel cell cars are currently available in Japan.
Biodiesel will be made from carbon dioxide and algae at, New Belgium Brewing Co, in Ft. Collins. Carbon dioxide from brewing operations will be fed to algae, which grow quickly and can be turned into biodiesel. The process can produce as much fuel per acre as 100 acres of soybeans while consuming polluting gases instead of petrochemical fertilizers.
National Renewable Energy Lab in Golden, CO, is working on even more passive, and environmentally harmless, ways to produce electricity, like energy towers that are essentially nothing more than chimneys. A solar collector of some sort, such as a greenhouse, is connected to the bottom of the tower. The sun heats the air inside. As it rises, it creates currents that drive an electric generator. The process can be reversed by spraying a mist of water into the top of the chimney. The falling mist creates air current at the bottom of chimney that can drive a generator.
The great opportunity that comes with efficient small-scale generation of power is that it is small-scale. Net metering laws that require power companies to buy power produced by individual users creates opportunity. Power companies are required to supply net metering devices to feed home produced power into the grid. Individual homeowners can harvest and sell small amounts of energy to the power company.
Maybe the next self-made billionaires will come from the ranks of entrepreneurs leasing solar panels to homeowners, or leasing space from homeowner to harvest energy. Co-op or HOA owned private generation facilities, that produce and sell excess power, could become common. This assumes no legislation to define small generation systems as power supply plants subject to federal regulations and bureaucracy.
There are many proposals in the state legislature that deal with promoting the use of renewable, clean energy. Thinking big, these proposals mainly focus on power generated by large power companies. Focus has been on the lack of transmission lines preventing large-scale use of solar and wind energy. Thinking small, a system is already in place that delivers electricity to nearly every spot in the country. This system may not allow for huge amounts of electricity being fed into it by large wind or solar farms, but it carries electricity to nearly all homes and businesses in the state. At least an equal amount of electricity could flow back into the grid from small energy harvesters.
If all Colorado homes and businesses harvested their own electricity from wind and sun and fed the excess power to the grid, electricity production would be increased greatly with no new transmission lines. Theoretically, each home or business could eliminate its own need for power from the grid. The power grid, relieved of the burden of transporting that amount of energy, could accept at least that much back. We could provide electricity for our own needs and the needs of another home or business in a less sunny/windy state.
New ways of thinking combined with new technology will provide new solutions for satisfying consumer demand. Colorado farmers and ranchers may find that energy harvesting is more profitable per acre than livestock, produce or grain. Electricity harvested from sun or wind can be converted to hydrogen and oxygen. These gases can then be piped or trucked to market.
There are currently mortgage programs that will add in the cost of energy improvements that pay for themselves. The cost of the improvements can be rolled into a first mortgage or added as a second. Tax incentives exist at federal and local levels for solar and wind energy. Power companies are offering rebates for systems installed and are paying premium prices for the energy produced.
The legislators talk about the cost of change and who will pay it. There is only one answer. We will pay the cost of change. It may come through spending tax dollars to subsidize the powers companies, or from increases in energy costs. We will pay for it. We should we own it.
There are an abundance of new opportunities for small businesses and homeowners. As new technology becomes more widely used the costs will come down. Rebates are available from power companies that can pay for up to half of a solar photovoltaic system or a wind generator. Tax incentives cover more of the cost. There is a demand and there is the capital to drive it.
Opportunities seem to abound in energy related fields, yet at a recent home remodeling show in Denver these technologies were almost unrepresented. I saw only a single, bulky, low efficiency solar panel.
Small businesses can drive big changes and unforeseen fortunes can be made in times of shifting paradigms. A few years ago in India, a man started a microbank with a few hundred dollars. He made loans for small amounts of money, mostly under $100, to entrepreneurs in poor places. In only a few years, the bank now has billions of dollars to loan. The default rate on these micro loans is almost zero and many borrowers have risen from poverty to wealth. Sometimes small is huge.
Energy technology is starting to grow at a rate similar to personal computer technology in the 1990s. Opportunity is great now for delivering renewable energy and energy saving products. Incentives exist to enhance these opportunities and more incentives from the government and the energy industry are in the works. Demand for this technology is growing in response to environmental concerns.
Now the advantage in this field belongs to small, innovative companies. Microsoft, Apple and HP had their time of golden opportunity. That time is here for personal energy production and related products and services. What’s your Apple?
Additional Resources:
American Solar Energy Society, 303-443-3130
Colorado Renewable Energy Society, 303-279-1446
Smart Energy Living Colorado, 303-216-2026
E-Star Colorado, (303) 482-2072
Rocky Mountain Institute, 970-927-3851
Solar Energy International, 970-963-8855
Copyright 2007 All rights reserved.
Mar. 10, 2007
Categorized in: Denver Market Info
It's still a great buyer's market in Denver, and interest rates are still low. Sales were down from January, a drop of nearly 13%. The drop likely reflects snow on the ground in January when offers are made for February closings. Denver's snow on city streets has just melted in the last two weeks. Prior to that, rutted "ice" streets put a damper on buying. Prices were down slightly for single family homes. The drop for condos/townhomes was much steeper, from $154,900 to $144,950, a drop of 6%. Median price for a single family home was $235,000. A year ago the price was $238,500 a 1.5% drop. Metro Denver's high rate of foreclosures is having a slight impact on prices. It's having a greater impact on how long a house stays on the market before it sells. Average days on market this year is up by 19.05% to 125. Homes in great shape in good locations priced properly will sell much more quickly. But many sellers are still pricing their homes too high to readily sell. That makes it a buyer's dream -- unless the home hasn't been on the market very long. If it's only been on the market a week, the seller still has "pie in the sky" ideas about what their home should sell for. But if it's been on the market awhile, reality does begin to set in and the price begins to come down. I've had several buyers lately who have bought at the beginning of the listing period, and they've paid higher prices than buyers who find houses that have been on the market awhile. So unless you're willing to walk away when a seller demands a price higher than comparable sales in the neighborhood, be prepared to pay the higher price. Home buying is not for sissies! Denver’s cost of living makes it an easy choice over higher cost areas like both coasts. It costs 40 percent less to live in Denver than in San Jose; 34 per cent less than in San Diego; 43 per cent less than in San Francisco; and 14 per cent less than Seattle. If you live on the east coast, it will cost 15 per cent less than in Baltimore; 28 per cent less than in Boston; 50 per cent less than in New York; 14 percent less than in Miami For buyers coming from the south and the midwest, Denver could cost more. It costs 2 per cent more in Denver than in Atlanta; 14 per cent more than in Houston; 7 per cent more than in Dallas; 6 per cent more than in Dayton, Ohio; and 11 per cent more than in Minneapolis. But living in Denver still costs 3 per cent less than in Detroit; 20% less than in Philadelphia; 1.5 per cent less than in Cleveland, and 1.5 per cent less than in Chicago. You’ll need to do your due diligence to compare cost of living between your city and Denver at websites like http://www.bestplaces.net, http://www.bankrate.com/brm/movecalc.asp, or http://cgi.money.cnn.com/tools/costofliving/costofliving.html. Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests – finding the best home at the lowest possible price, and saving you time and hassles. See client references at http://www.buyers-advantage.net/happy-clients.html. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your new home in Denver.
Mar. 10, 2007
Categorized in: Real Estate Blogs
If you're looking for real estate information in a place other than Denver, here's the place for you. A great list of real estate and real estate related blogs, generously donated by the Bloodhound Blog. Some of the links are a different color. These are ones I've added. If you'd like to add a blog, post a comment about it and include the name and the web address, and I'll review it. If it's a good blog, I'll add it.
Mar. 3, 2007
Categorized in: Mortgage Thoughts
Yesterday a woman called wanting to know how much values have dropped over the last year. She was in a very precarious situation with her mortgage, and had only 30 days to figure out how to keep her house. She was hoping to solicit a relative's help in refinancing her current loan, and needed to know where an appraisal would value her house for refinancing purposes. I offered to provide her with a market analysis of her home, but she already had one from another REALTOR(R). I wished her well, knowing that she probably wouldn't be able to save her home because of the kind of upside-down mortgage she had. Colorado is one of two states who don't regulate mortgage brokers. Registering with the state and background checks were required last year for the first time, but that only weeds out the lawbreakers. It doesn't require a minimum of training, continuing education, adherence to a Code of Ethics or any of the other strictures placed on real estate sales people or brokers. Anybody can go into business as a mortgage broker without knowing anything about what they're doing, or with an intent to make as much money as possible by passing along home loans to unwary and naive home buyers with the highest rate of return for the mortgage broker. A new bill making its way through the Colorado legislature would require mortgage brokers to be licensed and not just registered. Rocky Mountain News real estate reporter, John Rebchook, contributes a stellar article on The Ins and Outs of Home Loans that should be required reading for all consumers in the market for a home loan. When home buyers come to me for a referral to a lender, I point them to a direct lender in Memphis who treats my clients with respect, doesn't try to talk them into inappropriate loans, charges no "junk" fees, and provides great customer service. Some folks think that's "steering," but as an attorney friend of mine (also an Exclusive Buyer's Agent) says, "You wouldn't want me to represent you as an attorney, and if we needed an expert witness, submit three names to you for you to choose. You'd leave it up to me to choose the best expert witness who in my judgment will provide you with the best expert testimony" He thinks that it's our obligation as fiduciaries representing clients to provide them with the very best mortgage professional we know of. I'm with him on this issue. I've dealt with my Memphis lender in representing my clients over a long period of time, and I have the judgment required to decide whether a lender can be trusted to look out for my clients' best interests. If you're thinking about buying a home in Denver and need an Exclusive Buyer's Agent (who never represents sellers, and therefore doesn't have a conflict of interest, and is an expert on buying residential homes) and a mortgage referral, give me a call at 303-587-3509. You don't want to take chances on what may be the biggest purchase you'll ever make. |