Colorado REALTOR Magazine - January 2019 by Colorado Association of REALTORS

c o lo r a d o

JANUARY 2019

REALTOR Official Magazine of the Colorado Association of REALTORS®

MAGAZINE

TECHNOLOGY IS AN OPPORTUNITY, NOT A DISRUPTION Page 10 An Interview with 8z Real Estate CEO and zavvie co-founder Lane Hornung

PLUS: Good Deeds, Bad Deeds, Colorado Deeds Page 6 The Very Real Threat of Mortgage Fraud Page 12

Five Unexpected Ways to Grow Your Business Page 18

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The COLORADO REALTOR® is published by the Colorado Association of REALTORS® 309 Inverness Way South Englewood, CO 80112 (303) 790-7099 or 1-800-944-6550 FAX (303) 790-7299 or 1-800-317-3689

JANUARY 2019

c o lo r a d o

REALTOR

MAGAZINE

IN THIS ISSUE:

EDITOR: Lisa Dryer-Hansmeier, V.P. of Member Services lhansmeier@coloradorealtors.com DESIGNER: Monica Panczer, Creative Marketing Specialist monica@coloradorealtors.com The Colorado Association of REALTORS® assumes no responsibility for return of unsolicited manu scripts, photographs or art. The acceptance of advertising by the Colorado REALTOR® does not indicate approval or endorsement of the advertiser or his product by the Colorado Association of REALTORS®. The Colorado Association of REALTORS® makes no warranties and assumes no responsibility for the accuracy or completeness of the information contained herein. The opinions expressed in articles are not necessarily the opinions of the Colorado Association of REALTORS®.

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6 9

Are You Committed to Excellence? Get Involved at CAR Good Deeds, Bad Deeds, Colorado Deeds CAR Spring Summit

10 Technology is an Oppportunity, Not a Disruption

12 The Very Real Threat of Mortgage

COLORFUL COLORADO: BOULDER & DURANGO

Fraud

16 2018 Market Year in Review

18 Five Unexpected Ways to Grow Your Business

21 We Hear You!

This is a copyrighted issue. Permission to reprint or quote any material from this issue is hereby granted provided the Colorado REALTOR® is given proper credit in all articles or commentaries, and the Colorado Association of REALTORS® is given proper credit with two copies of any reprints.

22 Innovative Housing Solutions 25 Waves of Uncertainty Rise

26 Colorful Colorado - Durango and Boulder

28 The Best Seats For Your Screen

The term “REALTOR®” is a national registered trademark for members of the National Association of REALTORS®. The term denotes both business competence and a pledge to observe and abide by a strict Code of Ethics. To reach a CAR director who represents you, call your local association/board.

30 HVAC Resolutions 32 Free Tax Webinar

33 Free Marketing Flyers For REALTORS®

THE BEST SEATS FOR YOUR SCREEN

34 RPAC Investors

Are You Committed to Excellence? FROM THE CHAIR

Justin Knoll 2019 Chair of the Colorado Association of REALTORS®

As I talk with fellow REALTORS® from around the state, I hear similar frustrations about the real estate industry. Difficult market conditions and affordability are making it challenging to get clients to the closing table. Changing technologies and new ways of doing our job is driving some REALTORS® to alter their business model, or even leave the business altogether. These challenges are part of a sweeping change in our profession and, in many instances, are things we cannot control. This brings me to the number one concern I get from REALTORS® everywhere I go: the level of professionalism amongst our peers. The question arises: what can I control about this issue and who is going to help? Thankfully, the National Association of REALTORS® is tackling this issue head on with the new Commitment to Excellence program. As REALTOR® members, you have access to a state-of-the-art program that allows you to gauge your own professionalism against the highest standards to see how you stack up. From any web-based device, you can go section by section and answer questions about different aspects of the business that all feed into professionalism. It is a big undertaking by NAR and early feedback from members is tremendous. Users appreciate the detailed and thoughtful depth that the program goes in to and always gives the member direction on how they can effectively improve. It wastes no time and has takeaways to implement immediately. Does this make a big enough dent in the problem we face? Perhaps not, but it is a start and it sheds light on something that will make all of us better and give the public a better experience along the way. I believe standards begin within ourselves and I urge each of you to take time to explore the www.c2ex.realtor site and start your journey today. It is easy, educational, and I promise you will get something out of it. continued on next page

Get Involved at CAR CAR Applications for the 2020 Officers and Directors Are Currently Being Accepted The Colorado Association of REALTORS® is now accepting applications for its Officers and NAR Directors positions. CAR is looking for future leaders who are willing to “rise to the challenge” of leading the Association into the future!

FROM THE CEO

Tyrone Adams President/CEO, Colorado Association of REALTORS®

One of the predominant reasons the Colorado Association of REALTORS® stays at the forefront of organized real estate in Colorado is because of its volunteer leaders. Get involved in CAR Leadership and apply your skills in “Making REALTORS® More Successful and Protecting the Real Estate Industry” through your state association. Learn more about each position by clicking the link below. The Officers and NAR Directors applications are due no later than 5:00 PM on Thursday, April 11, 2019 to participate in the CAR Leadership elections Monday, June 3, 2019. Applications must be submitted to tadams@coloradorealtors.com by the deadline. Applications must be postmarked or submitted to CAR by the deadline. Click Here to Learn More

Committed to Excellence from page 4

The true test of your commitment to excellence is now engaging others to join you in raising the bar. Take it to your office meetings, use it in coaching and accountability groups, or just send the link to your 10 favorite REALTORS® and challenge them to do the same. As we enter a new year, let’s focus our energy on what we can control, and how we can improve. Together, we can move the needle and turn this weakness into a strength one REALTOR® at a time.

Watch the January "One Thing" with Justin Knoll.

Good Deeds, Bad Deeds and Colorado Property Deeds One of the more significant changes coming to the Colorado Commission Approved Contract to Buy and Sell (“CBS”) in January 2019, relates to Paragraph 13 (“Transfer of Title”) of the form. For many years, Paragraph 13 of the CBS has included a ___________ (blank) prior to describing the type of deed that seller would deliver to the buyer at Closing. In residential transactions, this “blank” has almost universally been completed with the word “general” without any discussion or negotiation between the parties.

LEGAL UPDATE

Scott Peterson Legal Counsel, Colorado Association of REALTORS®

Beginning January 1, 2019, the new CBS will default to a “special” warranty deed if no other type of deed is specified by a box that will be checked below. The boxes to be checked, if agreed to by the parties will include: general, bargain and sale, quit claim, personal representative’s deed, or _______ “blank” (other). In Colorado, the only statutory forms of deeds that are acknowledged are the general, special, bargain and sale, and quit claim. Other deed types sometimes referenced (personal representative, beneficiary, trustee, conservator, etc.) are typically just a bargain and sale deed in form and substance. Based on the new modifications to Paragraph 13 of the CBS, I believe there may be more discussion and negotiation related to the type of deed that is ultimately contracted for between buyer and seller in a residential transaction. As such, I thought it would be helpful to describe each of the four basic Colorado deed “types” and what each type of deed may mean for a buyer or seller.

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SPECIAL WARRANTY DEED

First, it is important to clearly understand that EACH OF THE DEED TYPES TRANSFER THE EXACT SAME INTEREST IN A PROPERTY FROM THE BUYER TO THE SELLER. The difference between any of the deed types is exclusively related to the warranties or guarantees that a seller makes to a buyer regarding the quality of title. I also want to point out that, for simplicity's sake, I will be using the terms “seller” and “buyer” (rather than the more accurate “grantor” and “grantee”) throughout this document. GENERAL WARRANTY DEED

Effective January 1, 2019, a special warranty deed is the new “default” deed in the CBS. Unless another form of deed box is checked, the seller will be contractually obligated to deliver a special warranty deed to the buyer at closing. Special warranty deeds have been the common form of deed used in commercial real estate transactions for many years but, for a variety of reasons, they have been very rare in Colorado residential transactions over the years.

In Colorado, the only

A seller, when giving a special warranty deed, warrants the buyer’s title to the property only against any encumbrances on the property that were created DURING THE PERIOD OF THE SELLER’S OWNERSHIP OF THE PROPERTY. As with the general warranty deed, the seller’s warranty is limited by any specifically listed exceptions to the conveyance.

statutory forms of A general warranty deed has been, for many years, the traditional deed deeds that are acknowlthat has been offered in a residential edged are the general, transaction in Colorado. It is typically special, bargain and considered the “strongest” form of sale, and quit claim. deed based on the expansive warranties that a seller makes to a buyer in conveying title to a property. Subject only to any specifically listed excepIn short, the distinction between the tions or encumbrances on the deed, two forms of “warranty” deeds is that the seller warrants the buyer’s title to the property all the in a general warranty deed, the seller warrants against way back to the property’s origin. In short, regardless anything any owner of the property ever did to encumof whether an encumbrance to title was created by the ber title and in a special warranty deed the seller only seller, or some remote previous owner of the property, warrants against anything the seller did to encumber the seller is warranting to the buyer that they will defend title. them against any claims on that title. Period. continued on next page

BARGAIN AND SALE DEED

to add or remove someone from title, or to convey a property from individual ownership to a newly created trust or other entity. This is not to say that a quit claim deed couldn’t be used in a traditional sales transaction if it was, for some reason, the negotiated agreement of the buyer and seller.

A bargain and sale deed is typically NOT a warranty deed (unless specific warranties are expressed on the deed itself ). Therefore, in most cases, the seller is making no warranties as to the quality of title or existence of any encumbrances/exceptions on the property. The seller is essentially giving the buyer whatever title the seller currently has and, importantly, LATER ACQUIRES in relation to title on the property. Bargain and sale deeds are uncommon in a typical residential conveyance. Often, a bargain and sale deed is the statutory form of a deed that may be more commonly referred to as a personal representative’s deed, treasurer’s deed, trustee deed, or guardian deed. The deed is typically signed by some third-party fiduciary or government official.

CONCLUSION Colorado REALTORS® need to clearly understand that the selection of the type of deed used in a sales transaction is for the negotiation of the parties (buyer & seller). As should be clear from this summary, there are very important legal consequences to the type of deed that a seller agrees to give, and a buyer agrees to receive in a contract. I believe that insufficient attention has been given to the selection of deed form for too many years. This is particularly the case in residential transactions. Title insurance may provide some protections for potential warranty perils, but it is not a complete solution. As always, Colorado REALTORS® need to remind their clients that they should be consulting appropriate legal counsel if they have specific questions related to the type of deed they will be giving or receiving in a transaction.

QUIT CLAIM DEED A quit claim deed is the simplest form of deed in that it is NOT a warranty deed and it merely conveys whatever interest the seller CURRENTLY has in the property, to the buyer, with no additional warranties or representations whatsoever. It merely transfers the title of the real property, including any defects or encumbrances, from one party to another. Quit claim deeds are often used in intra-family transfers,

April 23-25, 2019, VAIL The 2019 CAR Spring Summit is geared towards REALTORS® who want to become more involved at CAR or in the REALTOR® association. Packed with new ideas, new products, networking and fun, Vail is the place to be April 23-25, 2019 at the Four Seasons Resort. REGISTRATION COMING SOON! Included with your registration is:

REALTOR® Leadership Program 300 (4 CE): Strengthen your leadership skills through group activities and case study analysis in this advanced course.

“10 Things” Every REALTOR® Needs to be Thinking about in 2019 (2 CE) Keynote Lunch Presented by CAR General Counsel Scott Peterson.

Top Sponsors:

Learn more about the Summit at:

coloradorealtors.com/car-spring-summit/

Opening Reception Enjoy networking with your friends and colleagues at this fun event.

TECHNOLOGY IS AN OPPORTUNITY, NOT A DISRUPTION An Interview with 8z Real Estate CEO and zavvie co-founder Lane Hornung

TECHNOLOGY

Lane Hornung 8z Real Estate CEO and zavvie co-founder

A study conducted by the Pew Research Center shared that 89% of adults in the United States were using the internet in 2018. With such a high percentage of internet users and technology allowing for more and more of a real estate transaction to be completed in a digital space, consumers have never had as much data as instantly available as they do today. We sat down with Lane Hornung, cofounder of hyperlocal technology leader zavvie (winner of multiple innovation awards from Inman and NAR) and CEO of its brokerage partner 8z Real Estate, and asked: Does new technology pose a threat to REALTORS®? How can REALTORS® remain relevant to consumers? REALTOR® Relevancy in Tech-Heavy Culture “Technology empowers the best REALTORS® to become even better and provide excellent service for their clients. In today’s world, to be the best agent, you have to be facile and proficient with the tech tools out there,” says Hornung. “I came into real estate from a tech background 20 years ago and from what we’ve seen over that amount of time, I believe that technology will be an enabler of REALTORS® rather than a disruption.” So how do REALTORS® use technology to their advantage without getting left behind? “I believe that the machine will never replace the value of a REALTOR®,” says Hornung. “We have the ability to present so much more information to consumers quickly, narrow it down, and interpret it for them. There is data overload and the REALTORS® who will do best are not the ones who will simply provide it to their clients, but the ones that will interpret it for them.” He suggests knowing every nook and cranny of your local MLS and all the tools it offers, as there is an amazing sweep of materials and training. “Info Sparks also changed my life for interpreting

and understanding the market. It’s a game changer.”

time carpet was new, neat, and cool, and now it’s of course a house has carpet,” says Hornung. “It’s the same with smart home technology: it’s utilitarian and makes a home much better and will likely be permanently adopted as well.”

Hornung shares that the key to success is to be a “hyperlocal market expert.” REALTORS® will need to specialize in market niches or local markets in order to stay ahead. “A REALTOR® who does not know more than what the consumer can get through technology will face challenges,” he says. “Mostly, they will be challenged by other great REALTORS® who are doing these things, not the advanced technology itself.” The bar will continue to rise with regard to what is needed to be a great REALTOR®, especially since technology cannot be ignored when the consumer is already using it.

The rate of adoption of smart home technology accentuates the importance of being a hyperlocal expert. You should know if your market is an “early adopter community”, or follows the lead of others in the way that smart home tech is being approached and adopted. Words of Wisdom Technology is a permanent fixture in the real estate transaction, but that doesn’t have to be a bad thing. “The four most powerful words a REALTOR® can say to a consumer is ‘I know that house…,’” says Hornung. “A computer screen can’t say I’ve been in that house.” To stay ahead, get to know your hyperlocal market better than anyone else in the world. “This is a real opportunity for REALTORS®,” says Hornung. “The theme here is being a REALTOR® is becoming more complex. What you need to be well-versed in is increasing technology. Becoming a market specialist allows you to get your arms around it.”

Smart Home Technology – How Will the Market Respond? In addition to internet usage, things like ride sharing have become more prevalent as is the expectation of smart home technology. There is some question as to how the market will respond. Will garages go away? Will smart home tech become a new norm in future years? How will development of the market respond to these types of requests in a digital environment? “Even though people are interested in walkable homes and ride-sharing, what I’ve seen is that the amount of gear, (bikes, scooters, road bikes), and hobbies that require space (studio, wood working, building), I don’t think it will necessarily mean the ‘end of the garage.’ As much as everyone likes to talk about walkability, people still like square footage and yards. The death of the suburban home has been predicted for a long time, but people keep purchasing them because they like them,” says Hornung.

Every house is different, and by becoming the greatest expert studying market data in real time and previewing homes, REALTORS® will bring value to clients that technology alone just can’t. “I believe it is the best time in the history of the world to be a REALTOR®,” says Hornung. “And I believe that BECAUSE OF the technology we can be so much more productive and helpful to our clients today than we have ever been before!”

The Voicebot Smart Speaker Consumer Adoption Report found that 19.7% of U.S. adults have access to smart speakers today. That is up from less than 1% of the population just two years ago. With smart home technology on the rise, Hornung believes smart home technology will eventually become the “new normal” in the future, like carpet in homes when it was introduced. “At one

Lane is the Co-founder of zavvie and the CEO of 8z Real Estate. As both a tech guy and real estate practitioner, Lane believes technology will empower real estate professionals to deliver amazing consumer experiences. Read more about 8z Real Estate here.

THE VERY REAL THREAT OF MORTGAGE FRAUD How to Protect Yourself, Your Business, and Your Clients from this Growing Threat By Jason Hayes with Point B If we look at this past year’s cybersecurity statistics, doubt accounts for a large portion of this uptick. we see compelling evidence that mortgage fraud The bad news is that small companies (those dederiving from cybersecurity incidents is an attractive fined as having an annual IT Operating Budget of landscape for cyber criminals. Verizon’s 2018 Data less than $5 million) are becoming more of a target. Breach Investigative Report Fifty-eight percent of last year’s (DBIR2018), tells us that 76 attacks targeted small businesses percent of last year’s attacks “Fifty-eight percent of last year’s at(DBIR2018), and the reason why is were financially motivated. tacks targeted small businesses, and easy to understand: Small busiThis is not a surprise – hackthe reason why is easy to understand: nesses do not have the same ing data is a for-profit busicontrols in place as their bigger ness and a full 50 percent of Small businesses do not have the same counterparts, making them easilast year’s successful breaches controls in place as their bigger couner targets. Small businesses may were carried out by organized terparts, making them easier targets. ” offer less in terms of a theoretical criminal groups. According “big haul” for a hacker who wants to Computer Economics’ IT to hit the jackpot, but the rate of Spending and Staffing Benchsuccess is much higher. The combination of the atmarks 2018/2019, IT spending as a percentage of revtractive financial transactions and the relative ease enue has grown from an average of 2.3 percent across with which these transactions can be stolen means all industries to 2.7 percent This same report tells us that real estate transactions are, and will continue to that 75 percent of organizations are planning continbe, an attractive target for cyber criminals. ued increases to their security spending, which no

What should REALTORS® be doing to protect themselves and their clients on the tech side of things?

often in order, and one such approach involves reviewing publicly-available threat landscape assessment reports that are written by major cybersecurity players like Verizon. In reading these reports, insight can be gained into the most prevalent types of threats to organizations. Some great examples include the annual Verizon Data Breach Investigations Report, Symantec’s Monthly Threat Report, and the monthly Global Threat Intelligence Report (GTIC). As echoed in these reports, some of the biggest threats to REALTORS® in today’s environment are Physical Data Theft, Ransomware, and Phishing.

The first step in protecting yourself involves understanding the criminals. According to Verizon’s DBIR2018, 73 percent of attacks are initiated by outsiders. When thinking about hackers, many people have an image of a highly-skilled data scientist who writes complex code to exploit vulnerabilities that are difficult to address. This is a big misconception – the vast majority of cyber criminals do not possess the deep mathematical and coding skills required to break modern encryption algorithms or discover a new vulnerability within a major platform that is not already well known. Rather, the lion’s share of cybercriminals is exploiting well-known vulnerabilities that organizations have failed to remediate, often via the application of simple configurations or patches. These hackers are simply downloading free scripts that are readily available on the “dark web” and using them to find and exploit vulnerabilities. In today’s world, anyone armed with a rudimentary understanding of networks, a second-hand laptop, and an Internet connection can set themselves up to launch damaging attacks against organizations in 30 minutes. Because of all of this - except in cases where an organization is being specifically targeted - the single best thing an organization can do to avoid a data breach is to be harder to hack into than other organizations.

PERFORM A SELF-ASSESSMENT Finally, REALTORS® should perform a self-assessment. A review of the current IT operating budget, as a percentage of annual revenue, is an interesting high-level barometer for assessing security posture. Organizations that do not reinvest enough of their revenue into IT operating budgets routinely fall short on providing adequate cybersecurity controls. Investments should be pragmatic and impactful, without causing unnecessary business inefficiencies. One of the tools that helps IT organizations make good investments in IT security controls are called cybersecurity frameworks. This space has evolved rapidly in the past few years, and today there are a few different good framework options. Each framework comes with its own set of pros and cons, and some frameworks take less effort to implement than others. Some of the common frameworks most organizations have heard of include the National Institute of Science and Technology Cybersecurity Framework (NIST CSF), Control Objectives for Information Technology version 5 (COBIT 5), HiTrust, and the International Standards Organization (ISO) 27001/27032. Each of these frameworks are common in larger organizations, but are likely

UNDERSTANDING THE THREAT Next, understand the threats. Big organizations have highly evolved Risk Management processes that continually identify, assess, prioritize, and manage appropriate mitigation of risks. This is a good practice for organizations of all sizes, but often small businesses do not have the resources to do this. A lighter-weight approach is

too complex for most REALTORS® to adopt in whole. A smaller, light-weight framework called the CIS Top 20 is a great framework for smaller organizations that is quite easy to implement. I recommend that organizations that adopt the lighter CIS Top 20 also take a look through the bigger frameworks, looking for any specific items within them that might make sense to layer on top of the CIS Top 20. The first step in adopting a framework like the CIS Top 20 involves an assessment against the controls advocated for in the framework itself, so adoption of it or any other framework invariably results improved self-awareness.

part of daily operations. Address the Trifecta of People, Process, and Technology – Controls that fail to address the trifecta of people, process, and technology are incomplete and typically do not result in the desired outcomes. Take an example of a simple desktop anti-virus product. When deployed as a pure technology solution it will block malware, but additional people and process questions need to be answered. For example, how is the product updated? What happens if a computer that has not been updated, and may be infected, accesses your network? How are malware detections between individual endpoints correlated so that malware does not spread uncontrolled across all the devices on your network? Who receives notifications of an outbreak and what actions should they take?

EMBRACE SECURITY AS A JOURNEY Remember that security is a journey, and not a destination. There is no such thing as “being secure”, because the threat landscape is constantly evolving. In the time it took me to write this article, dozens of new threats have been identified, and these exploitation of some of the threats will be made available on the dark web for hackers to download and use against organizations in the very near future. The big threats of today – Phishing, Physical Data Theft, and Ransomware – can all be mitigated in whole or in part by the implementation of a framework like the CIS Top 20. However, organizations must continually apply the controls they’ve adopted in order to maintain a proper security posture.

Invest Appropriately – Understand the threat landscape and your organizations’ appetite for risk. Make investments that are impactful, as defined by reducing a risk to within your organizations’ risk appetite. Track the impact of those investments. Know the Threat Landscape – Stay up to date with the threat landscape via reading reports and newsletters or hire an outside security advisor that knows your environment and provides monthly recommendations in reaction to the changing threat landscape.

WHAT ARE BEST PRACTICES FOR REALTORS®?

Embrace Security as a Journey – The investments made today do not forever mitigate all future risks.

Conduct Annual Security Training – Well-meaning internal employees represent an easy method of access for savvy hackers. Conduct annual security training that informs employees about major risks and what they should be doing (and not doing!) to help protect your organization and customers.

Jason is a principal consultant with Point B. He has over 20 years’ experience helping organizations realize business value from the strategic use of technology. He has proven success in numerous roles in IT security, privacy, compliance, risk management, cloud adoption, architecture and design, strategy, and process development and implementation. He has worked in the high-tech, entertainment, legal services, financial services, manufacturing, government, and healthcare (plan/payer, provider, and medical device manufacturing) industries. Prior to joining Point B, Jason was an executive with a Colorado-based healthcare insurance company, serving as Chief Information Officer and HIPAA Security Officer.

Adopt a Framework of Controls – No need to reinvent the wheel. Collaborative groups of cybersecurity professionals have put together several great security frameworks that can help organizations achieve their desired security posture. Pick a framework that matches your organization’s capabilities and apply the framework as

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MARKET TRENDS

2018 A YEAR OF CONTRASTS ACROSS COLORADO MARKETS A strong spring in many markets across Colorado could contradict some reports of a slowing market in 2019 2018 was a year of tremendous contrasts across most Colorado markets, giving both sellers and buyers opportunities to take advantage of ever-changing market conditions, according to the latest monthly market trends data from the Colorado Association of REALTORS®.

3.7%

$376,450 MED. SALES PRICE - DEC 2018 - SINGLE FAMILY HOME CO.

4.8%

$297,500 MED. SALES PRICE - DEC 2018 - CONDO/TOWNHOME CO.

Despite the increase in listings coming onto the market in the later half of 2018, providing buyers with more choices than they’d seen in early 2018 and late 2017, new listings in December took a dive with only 3,868 listings, down 36.5 percent from the 6,095 listings that hit the market in November; though buyers should note that such trending is not unusual during the holiday months and that we may see a resurgence of listings hit the market in 2019 as we edge our way towards the warmer months. Statewide, sold listings followed the same pattern as new listings with a 11.8 percent drop in sold listings over the previous month, down 15.8 percent year over year.

While both market trends experts and economists have been looking at the potential of a shifting real estate market in 2019, the evidence of softening markets is not universal across Colorado and is dependent on the neighborhood, down to the zip code, further reinforcing the narrative that all real estate is local. With the volatility in the stock market, mortgage interest rates have unexpectedly dropped to 12-month lows, resuscitating interest from buyers and allowing sellers to capitalize on a reignited estate market in early 2019.

Click here to take a closer look at some of the state’s local market conditions.

Median Sales Price - Statewide

Coupled with dropping rates, affordability actually eased a bit in the later months of 2018. Statewide, December’s Affordability Index looked similar to that seen in early 2018. Despite this, December’s median prices actually went up .04 percent over November’s numbers (and still up 3.7 percent year over year), and average prices spiked 1.3 percent from prices seen in November (up 5.8 percent from this time last year). As expected for the winter months, days on market continued to trend upward to 57 days and 52 days for single-family homes and townhomes/condos, respectively.

Median Sales Price - Month Jan-2018 Feb-2018 Mar-2018 Apr-2018 May-2018 Jun-2018 Jul-2018 Aug-2018 Sep-2018 Oct-2018 Nov-2018 Dec-2018

Single % Change % Change Townhouse % Change Family YTD Monthly Condo YTD $361,500 +8.7% -0.4% $280,000 +12.4% $375,000 +9.5% +3.7% $295,000 +17.5% $380,000 +7.9% +1.3% $290,000 +10.5% $390,000 +9.4% +2.6% $298,000 +10.6% $395,000 +8.3% +1.3% $300,500 +12.1% $399,000 +7.8% +1.0% $305,000 +10.9% $389,900 +7.7% -2.3% $298,900 +11.1% $390,000 +8.3% +0.0% $296,000 +7.6% $375,000 +5.6% -3.8% $305,000 +12.3% $378,108 +5.0% +0.8% $299,900 +8.2% $375,000 +3.4% -0.8% $298,000 +8.4% $376,450 +3.7% +0.4% $297,500 +4.8%

% Change Monthly -1.4% +5.4% -1.7% +2.8% +0.8% +1.5% -2.0% -1.0% +3.0% -1.7% -0.6% -0.2%

Real Estate SnapShot S TAT E O F C O L O R A D O - D E C E M B E R 2 0 1 8 PERCENT OF LIST PRICE RECEIVED

-0.2%

98.5

AVERAGE DAYS ON MARKET

1.8%

Historical Median Sales Price

YTD 2018= 45 2017= 48

$500000

$400000

$300000

$200000 Sept 2016

MONTHS SUPPLY

2.0

0.0% DEC 2017= 2.0

Single Family Condo

State of Colorado

Dec 2016

Mar 2017

June 2017

Sept 2017

Dec 2017

Mar 2018

June 2018

Median Sales Price $363,000

3.7%

$385,000

$358,500

$297,500 $284,000

$298,000

10.4%

4.8%

7.4%

Dec 2018

Single Family Condo

State of Colorado - DEC $376,450

Sep 2018

$270,000

3.8% DEC 2018= 5,277 DEC 2017= 5,488 YTD 2018= 138,716 YTD 2017= 136,978

Inventory of Active Listings 19,065 19,243

8,619 14,565 15,008

6,647

4,393 4,168

Total Market DEC

YTD 2018= 113,035 YTD 2017= 116,364

7,265 5,598

5.2% DEC 2018= 6,505 DEC 2017= 6,184

Sold Listings

Single Family DEC

Condo DEC

1,666 1,971

Total Market DEC

Percent changes calculated using year-over-year comparisons. All data from the multiple listing services in the state of Colorado. Powered by 10K Research and Marketing.

For more data visit ColoradoREALTORS.com 17

Single Family DEC

Condo DEC

MARKETING

How to Make 2019 Your Best Real Estate Year Yet! Five Unexpected Ways To Grow Your Business According to figures provided by the Colorado Department of Regulatory Agencies, there are 44,000 By: Daisy Perez, Director of Mortgage l i c e n s e d real estate Originations agents in the FirstBank state – and 37,000 homes listed on the MLS – meaning agents greatly outnumber the homes they’re trying to sell. What’s more, 87 percent of real estate agents leave the business in their first several years.

rates, a volatile stock market, and a general softening of buying and selling activities, and yes, ladies and gentlemen, the real estate market may be entering a year of transition.

brokerage owners and satisfied customers -- to bring you five proven ways to make 2019 your best year yet.

The silver lining? Several Colorado cities, including Denver, Aurora and Colorado Springs, are still recognized as the top markets for real estate agents and some markets are experiencing a hotbed of activity. And regardless of a potential economic dip or slowing pool of buyers, 2019 can still be an amazing year for either growing or building a successful business.

Couple that with rising interest

We did some serious digging -- interviewing top producing agents,

A positive mindset is crucial is to success. What famed psychologist and author of “Mindset” Dr. Carol Dweck – along with several other renowned scientists and studies – have proved, is that folks who believe positive things will happen (and view setbacks an opportunity to learn) are less likely to suffer from major illnesses, depression and even live longer. They’re also more likely to succeed compared to their “glass-half-empty” counterparts. The reason? Positive expectations become self-fulfilling

BELIEVE GREAT THINGS WILL HAPPEN.

prophecies, because it motivates you to persist in the face of failure. It also enables you to seek out opportunities you might otherwise avoid when you have a negative outlook. Main takeaway: Thinking things will work out -- and if they don’t, you’ll still learn from it -- will serve you immensely better, than thinking the alternative.

BE A LASER, NOT A LIGHTBULB. Roughly 80 percent of wealthy individuals -- including REALTORS® and real estate agency owners – are laser focused on achieving one large goal. Not multiple goals, but one (hence the laser, not a lightbulb analogy). They create an idea and break off smaller attainable chunks until they achieve extraordinary results. For instance, their goal might be to increase revenue by 30 percent, so they may spend one hour each day following-up with leads. Or they may network with at least four industry professionals a month. The point is, their daily, weekly and monthly tasks center around this one objective. Here’s what’s really interesting, though, and separates the achievers from the quitters: writ-

ing down goals – with actionable steps -- makes you 1.4 times more likely to accomplish them. In fact, research shows that the majority of the people that set goals at the beginning of the year – and don’t write it down/create an action plan -- quit 17 days later (or what’s referred to as “Quitters Day” – no joke). Just remember successful goals should be actionable, obtainable and deliberate. Main takeaway: Have one main objective and write down daily/ weekly/monthly tasks as stepping stones to help you accomplish it.

EMPATHIZE MORE. Fun fact: an estimated 80 percent of your company’s revenue will come from 20 percent of your existing clients. This means that your customers are literally your best source of income and referrals. Not to mention, when they work with you, they’re often making the biggest decision or investment of their life. So your actions – no matter how small -- can carry a profound effect. Putting your clients first and more importantly, putting yourself in their shoes, can go a long way in developing lifelong client-

agent relationships with a steady stream of referrals and sales, to boot. According to the most recent Empathy Index, companies that exercised empathy were able to nearly double their earnings compared to competitors who didn’t. And many successful salesmen and women believe demonstrating an understanding of client frustrations, wants and needs gave them a substantial advantage. A key to becoming more empathetic and transforming clients into your biggest advocate and income source is actually pretty simple: ask questions, listen more, talk less. One study found that the majority of self-made millionaires spend roughly five minutes listening for every minute they talk. Active listening enables you to pick up communication styles or important values that can deepen your rapport and better demonstrate you’re representing their best interest. Main takeaway: Ask questions, listen more, talk less, and watch referrals grow.

AIM FOR FIVE MINUTES OR LESS. In addition to being a good empathizer, being quick and respon-

sive is crucial to converting leads and transforming customers from feeling lukewarm about you into thinking you’re Colorado’s no. 1 REALTOR®.

up). There’s also several low cost CRM services you can subscribe to help create auto-generated communications and ensure your services are top of mind.

Did you know responding to an online lead within five minutes – as opposed to within 30 minutes -- increases your chances of converting them by 2,100 percent? Responding after five minutes decreases your odds by a whopping 400 percent. Yet, very few brokers actually respond within that timeframe. After all, you’re jugging clients, showings, closings, etc. You’re busy.

Main takeaway: Aim for faster responses, even if it’s just a quick text or email acknowledgement.

But here’s the thing: that’s the wrong mindset to have with both existing clients and new leads, especially when REALTORS® greatly outpace listings and buyers/sellers can choose anyone to represent them. We live in a digital world where most Americans are on their smart phones incessantly. Pair that with the anxiety of making a major investment, and an instantaneous response isn’t just appreciated, it’s expected. Excusing yourself for two seconds and sending a simple acknowledgement text (e.g. “Saw your email. I’ll call you in an hour to discuss”) can go a long way in keeping customers happy (just make sure you follow-

INVEST IN ONLINE REAL ESTATE. The largest growing pool of buyers in the market – millennials -start their home buying process online. In fact, over 90 percent almost exclusively use online channels to sift through real estate agents, houses, loan options, and so on. So boosting your presence can often be key in getting that next client. First step (if you don’t already have one); start your own website or blog. There are several easy-touse platforms that allow you to design a site and create content to help effectively market yourself, your services and your listings. Remember: your site should operate like a “house,” where all important items are stored, and your social channels -- Facebook, Instagram, Twitter, etc. -- should be the “vehicles” driving out this information to the public. If you work for a brokerage that’s conveniently running your ads online, that’s great. But don’t for-

get having your own “online real estate” can go a long way in building your business. How? It won’t only enable you to feature your own properties and drive traffic back to your site, but can also help generate leads or gather important insight and analytics on what descriptions or photos perform better. That’s like gold in the selling world. It’s also provides a nice segue if one day you decide to go out on your own. Main takeaway: Create a marketable online presence and share, share, share. Daisy Perez is the Director of Mortgage Originations for FirstBank, one of the nation’s largest privately held banks and Colorado’s largest locally owned bank, responsible for producing nearly $5.8 billion in real estate loans in 2018. If you have any questions about this article or would like to contact Daisy (NMLS # 1049914), she can be reached at Daisy.Perez@efirstbank.com or 303-239-5135.

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AFFORDABLE HOUSING

50-State Research Aims to Identify Nation’s Most Innovative Housing Solutions The Colorado Association of REALTORS® (CAR) has completed a 50-state research analysis designed to identify the most innovative and successful programs being implemented to address the full spectrum of housing issues facing communities across the United States.

CAR will be introducing legislation in 2019 that expands the Colorado first-time homebuyer savings account program to give employers an opportunity to match their employee contributions to their own savings accounts as a near term device that enables both the employer and the employee to pitch in and contribute money to save for that first home purchase and allowing employers to help their employees save faster to purchase a home.

From affordability and product type to inventory needs, CAR’s research set out to help identify what state and local governments, public and private businesses, and individual communities are doing to tackle a broad range of issues impacting nearly every state. The analysis revealed distinct common attributes of the most successful programs that included bold, innovative, out-of-the-box thinking to address housing shortages, as well as a clear cooperation and participation in program implementation from the public, private, and not-for-profit sectors to address the full spectrum of housing issues.

The analysis also revealed a growing list of creative ideas and programs coming from collective partnerships and non-traditional partners working towards a common goal. “Although we can’t neglect the public sector systems that provide important foundational and critical programs, we need to think more in terms of driving our possibilities with a multi-pronged approach,” said Liz Peetz, CAR’s Vice President of Government Affairs. “That means we need strategic input, measurable data and impact goals that can drive us to new types of solutions that leverage the best that each sector has to offer.”

In addition, the analysis revealed the work being done in a handful of states starting to dip their toe into the employer side of the equation and housing supply issues. The report highlights the success of first-time homebuyer savings accounts and the growing number of states pursuing legislation similar to Colorado.

CAR’s report revealed that the shared risks, shared goals, and shared thought partnerships can be game changers, breaking down traditional silos, diffusing tensions and creating new opportunities that are more dynamic and flexible to suit state and local government community needs for the present and future.

wide analysis include: Kansas City, Missouri - The Kansas City Housing Committee approved a measure in November 2018 to utilize the scooter fee collected by the city and put those dollars toward affordable housing. Scooter companies, Bird and Lime, pay $1 a day for every scooter which generates about $300,000 per year in additional revenue for the city.

Finally, the analysis looked at overall housing supply and the issues surrounding affordability and attainable solutions.

Idaho - The Idaho Housing and Finance Association (Idaho Housing) is a self-supporting corporation that must generate all revenue to cover the cost of its operations. Idaho Housing earns fees for work performed and does not use any state-appropriated funds. There is also a Home Partnership Foundation, an independent 501(c)(3), that accepts charitable donations from employers, private citizens, developers, local governments, and others to help communities meet their most pressing housing needs.

“We are at a time when we should evolve beyond these two phrases and think about housing as an entire spectrum because everyone needs better options, whether it’s a vulnerable subpopulation where supportive housing is necessary to meet basic needs, or a new family looking to invest in their future, to our senior citizens whose needs are changing as they retire,” said Peetz. “Housing is one of the ways that we can bridge gaps and build strong communities, so our challenge is to be bold, bring the unorthodox and the new ideas to the table. Homeownership is the American dream, so it’s time that we think about how to protect and enable that dream to be a reality for everyone.”

Juneau, Alaska - House Build is a partnership between the University of Alaska Southeast, Juneau School District, and the Juneau Housing Trust. This program gives students real world construction experience that can be applied toward a degree or certification. All housing built through the program is used to address the

Some of the communities with the most innovative and successful housing programs discovered in the nation-

affordable housing needs in Juneau.

Other elements of the nationwide housing analysis included a look into issues including but not limited to:

Vail, Arizona - The Vail Unified School District found a creative solution to help its teachers by constructing a tiny home village on land purchased by the district to help educators stay in the communities where they teach.

• Diverse and creative housing product types; • Housing fees; • Tax-based and incentive programs;

• First-time homebuyers savings accounts; Maine - With an affordable housing tax increment • A wide range of innovative funding efforts (includfinancing program that offers municiing Colorado’s own marijuana tax and palities flexible financing tools, the similar product taxes); This is Colorado’s state program allows municipalities • Social impact bonds; and opportunity to cultivate to designate a specific area as the affordable housing development • Opportunity Zone programs which and execute innovative district where the communities use emerged from the late 2017 Federal ideas to increase the the incremental tax revenue to help Tax Cut and Jobs Act. supply of housing and make housing affordable and pay for Additional details and recommendadiversity of housing related costs such as public infrastructions from those components of the options to meet ture improvements, support services analysis will be released later this for residents, costs of recreational and demands... year. child care facilities and even poten“This is Colorado’s opportunity to tially establishing permanent houscultivate and execute innovative ing development revolving loans or ideas to increase the supply of housing and diversity investment funds. of housing options to meet demands from across the “Our research clearly shows that funding and specific entire spectrum of our population,” said CAR CEO Typrogram solutions to our wide range of Colorado rone Adams. “From first-time home buyers to growing housing issues will only be created and implemented families, and senior citizens, it’s time to make a move through a cooperative, bipartisan effort,” said Peetz. and work together to plan for our shared future.” “With no template for creating these solutions, we set out to gather and now share our findings with our elected officials, business leaders, local communities and residents who will ultimately have to come together and implement solutions for our state’s long-term success and economic vitality.”

READ ENTIRE REPORT

Waves of Uncertainty Rise From Seasonal Factors and Government Shutdown There is little that markets like less than uncertainty, be it real estate, or otherwise. So when a segment of the population isn’t working, and worse, when they aren’t spending money, uncertainty grows and creates a ripple effect throughout our economy. As the partial government shutBy Matthew down nears ever closer to a month, the Leprino, CAR likelihood that it will affect the real estate Spokesperson consumer grows and could impact both financing as well as, you guessed it, the confidence a buyer or seller needs when making their future housing decisions.

have in years past. Plotting these figures gets even more interesting when we see that although fewer sales are occurring from inventory, median pricing somehow still managed to rise 9.7 percent in the Metro Area, 12 percent if we are considering the average price. What this means is that overall less homes are coming on the market, consumers are buying a smaller percentage of them all while prices continue to rise. 2019 is the year where these seemingly contradictory movements change. The rate at which prices increase will slow this year – reacting to supply and demand as the seller is losing control of the marketplace and buyers, quite simply, aren’t buying like they used to. We can’t yet speculate as to whether a home’s value will be less in two years than it is today, but what we can say is that because of economic factors and local demand, we may not experience double digit gains like in previous years. We know that real estate always gains value over time but the high rate at which it grows could be coming to a long overdue summit. The time to be a buyer is, dare we say it, coming back.

Just as the Denver Metro Area is getting used to the idea of a mellowing in the real estate arena, we find ourselves at the convergence of a dual-fueled market, both lacking the inertia of certain money markets and a lingering shortage of supply. This shouldn’t suggest that we are beginning our eventual way back down, as many have speculated, but rather that we have officially tiptoed into that sought after ‘balanced market.’

Like any good American, we hope that a prosperous marketplace rebounds better from the current speed bump and that the income and spending of those most affected returns to the marketplace. Until then, we must wait patiently while either certainty or the lack thereof points us in a clear direction. We are, after all, a marketplace riding the waves of uncertainty.

According to the latest data from the Colorado Association of REALTORS®, between December 2017 to 2018, several key fluctuations took place signaling this shift. The first; from December to December, 26 percent fewer new listings came to the market. During that same timeframe, 30 percent less sold. While the two measurements certainly seem to go hand-in-hand. In fact, given that a bigger percentage dropped than arrived on market shows that even during the darkest (proverbially and figuratively) month of the year, the consumer just isn’t buying as much as they

Matthew Leprino is Broker/Owner of Leprino Home, Inc. and spokesperson for the Colorado Association of REALTORS®. He can be reached at: 303.482.1299 or matthew@leprinohome.com

AROUND THE STATE

Colorful Colorado A look at Durango and Boulder

This year, we are featuring different areas of our state in a few articles written by our very own Colorado REALTOR® members.

DURANGO

able. Galleries, restaurants, breweries, and boutiques line the downtown, with our share of museums from children and science to trains and history. We now number 18,000 residents. Tourists come for world-class fishing, Class 5 rapids, hiking, mountain biking, the Durango & Silverton narrow gauge train, resort golf, and our family-friendly slopes. We continually make the top lists of places to visit, live, and get radical in the great outdoors.

I live in a town that is part resort, part college, and part urban center in sunny southwest Colorado. With definitive industry as well as a regional hospital, Fort Lewis College and a year-round tourism draw, the Durango-area has both amazing variety and a balanced By: Jarrod Nixon, economy. Our location on the Coldwell Banker Heritage House border of both desert and wild REALTORS® mountain country, with the Animas River running through, truly offers something for everyone.

Around our vibrant city is bustling La Plata County with a population of 55,000 people, situated within millions of acres of San Juan National Forest and Weminuche Wilderness. Our real estate market has grown over the years from a short and seasonal (summer) to one with year-round activity. Purgatory Ski Resort is 30 miles from downtown and hiking and biking trails are everywhere. This is as close to paradise as you will find.

Durango was founded in 1881, and we’ve taken great pains to keep our urban core historic, beautiful, and walk-

BOULDER I recently went to dinner with friend on the famous Pearl Street Mall and while walking to my destination, I could faintly hear the sounds of the CU marching band. It was Friday night and Pearl Street was buzzing with enBy: Kelly Moye, ergy – young students out for the RE/MAX Alliance evening, parents with their little ones having hot chocolate, and well-dressed professionals out for a night at a high-end restaurant. The place was lit up like a postcard with white lights on every tree and street musicians entertaining the crowds. As the music became louder, I saw the wave of people singing the CU Fight Song along with the band ate exactly that feel. Because there is a no-growth policy and as it passed me, each band member high-fiving the here and the quality of life is quite appealing, the demand crowd as they finished their song. I remember feeling so outweighs the supply and the real estate prices are some lucky to be living in this community. of the most expensive in the front range. The energy, excitement, and school The population of Boulder is currently A community of pride were captivating! 108,000 people and the average sales price for a single-family home is just over young students Boulder is home to some of the $1,000,000. Living here is certainly a priviand sophisticated healthiest people in the world – hiklege! ers, biker, tri-athletes, climbers – all professionals, all train here. The combination of the nuThere is also something intangible about set in a dramatic merous trails, close-by mountains, and Boulder. Some would call it “energy” and mountain backdrop. high altitude make it attractive to elite some would say its arrogance, but Boulathletes. derites really love their town. The “hippie”, natural culture lends to organic food, The city is at the base of the Flatirons, spiritual centers, health, and wellness. a dramatic mountain backdrop that Boulder is unique in this way and it truly can feel like it’s a makes it unique. Boulder was designed to be a small city little world all on its own. It’s a special place! surrounded by open space. The county has purchased hundreds of acres of open space around Boulder to cre-

THE BEST SEATS FOR YOUR SCREEN

Whether you’re gearing up for the Big Game or just want the perfect setup for a movie marathon, choosing the right seating can take your media experience to the next level. By: Rachel Sellers, American Furniture Warehouse

But how do you select the perfect spot to watch TV? This guide will navigate through the different seating options to help you make the most of your screen time.

SOFA VS. SECTIONAL

some people may have to sit at an uncomfortable angle or crane their necks to see the screen.

One of the first things to consider when choosing the seating to pair with your TV is whether a sofa or a sectional would best suit your needs. Because they come in a wide variety of styles and colors, it can be easier to find a sofa that coordinates with your decor if you have a very specific decorating style or if you’re working with a particular color scheme. Plenty of sofa styles also come with a sleeper option so that you can easily host overnight guests when you’re not working your way through your Netflix queue.

If you have a smaller space, you might have to think outside the box to create a seating arrangement that works for your space. If you love the look of a particular sofa but it just doesn’t fit in your space, consider using the coordinating loveseat instead. If you have your heart set on a sectional, a two-piece sectional—particularly a modular one—may offer the features you want in a footprint that fits your space.

TO RECLINE, OR NOT TO RECLINE

A sectional, on the other hand, offers a wider variety of seating types—including stationary seats, reclining seats, cuddlers, and chaises—all in one piece of furniture. Modular sectionals have plenty of options that allow you to easily create a custom configuration that fits your needs, whether that’s seating for miles, a theater-style experience, or a compact arrangement that works in your tiny apartment. Depending on the sectional, it may even seat more people than a sofa and loveseat setup with the same footprint. However, it’s important to keep in mind that not all seats on a L- or U-shaped sectional will necessarily be facing your TV, so

Once you’ve concluded whether a sofa or sectional would best fit your needs and your space, it’s time to decide whether or not you would like your seating to recline. Reclining can be the most comfortable way to watch something, and power reclining furniture often includes adjustable headrests and lumbar support to give you total control over your comfort. It also frequently offers handy

features that aren’t generally found in stationary furniture, like storage consoles and cup holders. Unfortunately, reclining furniture may not be the best choice if your space is on the smaller side: reclining furniture requires extra room for the footrest to extend, and most reclining furniture can’t be placed up against a wall because the back will hit the wall when the piece is reclined. Power reclining furniture needs to be either plugged into a wall outlet, which limits where in a room you can position it, or attached to an external rechargeable battery pack that grants you flexibility in placement but must be purchased separately.

the darkened-room movie theater experience? Some cup holders light up to add a little extra flair that helps you find your drink in the dark. Pieces with center consoles typically feature both cup holders and a hidden storage compartment that is perfect for keeping remotes from getting lost. Some center consoles also include a drop down table to provide a level surface for your mid-media munchies, as well as handy reading lights. If you want cup holders and the storage a center console offers but don’t have the space for it, look for a piece with cup holders and storage built into the arms.

BONUS FEATURES

AVOIDING A FUMBLE

Reclining sofas and sectionals (and occasionally stationary pieces) often have additional features that can make your screen time even more enjoyable. Most power reclining pieces offer built-in USB charging ports and/or AC outlets so you can charge your devices without snaking a cord across the room or worrying about missing a great play because your phone battery died. Some pieces even have LED lighting along the bottom of the piece to complete the home-theater experience. If you like to enjoy a beverage while catching up on the latest episode of your favorite show, look for a piece with cup holders to keep your drink close at hand without the need to worry about spills. Enjoy

Regardless of what type of seating you opt for, make sure that it will fit in your space. There’s nothing more disappointing than getting new furniture delivered and realizing that it’s too much furniture for the room, or even worse, too big to even move into the room. Be sure to measure your room and use tools like the AFW Space Planner and the AFW Visualizer AR app to determine whether your picks will work with your space. By understanding the different seating options and the variety of features available, you can easily pick the furniture that helps you enjoy your media-watching experience to the fullest. Rachel Sellers is a Content Writer for American Furniture Warehouse, one of the nation’s top furniture retailers with a large selection of affordable furniture and home decor. American Furniture Warehouse has more interior design tips, how-to guides, inspiring looks, and other design and lifestyle topics on the American Furniture Warehouse blog.

5 Residential HVAC-Related Resolutions for the New Year Article provided by Xcel Energy.

5. Check your filters Don’t overlook the air filters in your HVAC systems. Getting regular checkups on your filters every 30 days are essential for keeping your appliances well maintained. The filters keep pollution out of your system, and a dirty filter will really affect the efficiency of your furnace or air conditioner because air won’t be able to flow through. Your furnace will have to work harder and can suffer more wear and tear, reducing the lifespan of the unit.

When heading into a new year, many people make resolutions to get themselves or their finances in tip-top shape. Why not set some resolutions to get your house in better shape this year? Here are five HVAC-related resolutions for you to consider in 2019. 1. Schedule an annual preventive maintenance tuneup A check up on your furnace and air conditioner tune-up is a great way to start off the year. A HomeSmart Preventive Maintenance tune-up will keep your HVAC systems running safely and efficiently during the year.

Bonus tip: Consider an upgrade to high-efficiency HVAC equipment and save money! Have you thought about upgrading your HVAC system in your home this New Year? It’s not too late to make a resolution to set aside a little money every month so that by the end of the year you can finally install that modern highefficiency furnace or air conditioner that utilizes less gas or electricity which could lower your monthly utility bill. Xcel Energy even offers rebates on qualifying high-efficiency equipment. Call HomeSmart for a free installation estimate at 1-866-837-9762.

2. Insulate your attic, windows, and doors An improperly insulated attic could cost you a lot of money this coming year. Use an HVAC professional to install the insulation so you get sufficient coverage and proper venting. You could notice a big difference on your utility bill once your attic is appropriately insulated. Additionally, use weather stripping or caulking to plug any possible air leaks around windows and doors in your home. 3. Get your ducts in a row The hot or cool air in your HVAC system needs working duct systems to circulate throughout the house. Clogged air ducts hamper the ability of your heating or cooling system to move clean air through your home. Schedule a duct cleaning to keep your family comfortable this winter and your HVAC system operating smoothly.

Reminder: Stay motivated Of course, the hardest part of any resolution is following through. Here are a few easy first steps to help you with your HVAC-related resolutions and any other goals you set for this year: • Prioritize your goals. • Create plans with specific deadlines. • Set reminders on your smartphone. • Brainstorm solutions for possible obstacles. • Discuss your resolutions with friends to keep yourself accountable.

4. Get with the program If you don't have a smart thermostat yet in 2019, set a resolution to upgrade your system. Programming your thermostat with a daily schedule using your smartphone or tablet will save you money and time—otherwise, making those adjustments manually everyday can be tedious.

We hope these resolutions will help improve your home comfort and save you money this New Year! Call 866.837.9762 or visit xcelenergy.com/HomeSmart to receive more information, enroll in a repair plan, or schedule an AC or furnace tune-up with us. 30

A broken appliance shouldnâ&#x20AC;&#x2122;t break your budget.

Avoid the high cost of fixing or replacing a broken appliance with HomeSmart from Xcel Energy. We offer custom coverage for appliance repairs starting as little as $19.95 per month. If you know your furnace, refrigerator or other appliance is more likely to give you problems, then you can choose to protect it â&#x20AC;&#x201D; avoid costly parts, labor and trip fees by covering critical appliances you select for coverage on your monthly plan. You never know when an appliance may break. Visit xcelenergy.com/HomeSmart or call 866.837.9762 and sign up today.

ÂŠ 2019 Xcel Energy Inc.

How to Legally and Ethically Build Up Your Fortune by Profiting from Special Tax Laws… All With the Blessing and Approval of the IRS In this country there are basically two ways to get rich as a business owner. You can deftly out-maneuver your competition, have some hockey stick growth, get a little lucky, and make a ton of money...

In this live webinar, I will show you how to use tax deductions to:

...Or, you can have a stable business, make smart decisions and get your money to work FOR you which makes you even MORE money. I have spent my career telling people that the quickest way to build wealth is to lower your taxes to the legal limit. Why?

• Write off all of your medical expenses from dollar one

Because you're going to spend more on taxes in your life than you will on your food, your house, your clothes, and your vehicles COMBINED. Taxes are by far your biggest life expense.

In the book I give a simple, easy to read breakdown of how the new tax code will affect your personal life as opposed to your small business. Both underwent a bunch of changes so you need to know both!

Now, let’s use some simple logic…

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• Write off your home office while staying compliant • *PLUS Just for registering I'd like to send you a digital copy of "Crack the Code".

If taxes are your biggest expense...and I can show you how to drastically lower the amount of taxes you are paying right now you would have a lot more cash in your pocket.

FREE WEBINAR Monday, February 4, 2019, at 12:00 PM

What would you do with that extra cash? Grow your business? Save it for retirement? Pay down business or personal debt? Have a little fun?

FREE FLYERS TO SHARE! Download this marketing flyer and more from the CAR Website. Click Here.

FACTORS ENHANCE YOUR HOME’S VALUE THAT

Small size Open floor plan

modern style

Having a open floor plan led to an average 7.4% appreciation per year. • Granite countertops (2.5%) • Stainless steel appliances (3%)

Over the past 5 years, homes under 1,200 sq. ft. have appreciated by an average of 7.5% per year. Homes 2,400 sq. ft. or larger have risen just 3.8% per year.

Modern/contemporary homes rose 7.7% per year, followed by bungalows (6.5%), traditional (5.6%), ranch (4.5%), Craftsman (3.7%), and Victorian (2.2%).

Location Homes in urban areas near mass transportation grew 8.4% in value per year. Those near good schools increased by 7.2% and those near shopping was by 6.5%.

fewer bedrooms

Homes with one bedroom increased by 7.2% per year. Two Bedrooms (6.6%) Three Bedrooms (6.3%) Four Bedrooms (4.9%)

good view

the right stuff

Homes overlooking a park increased 7.9% per year. Those with mountain views 5.1% and those with lake views 4.9%.

The top amenities to increase the value were: Patios (6.8%/year) Hardwood Floors (5.7%/year) Fireplaces (5.3%/year)

2 car garages Homes with space for two cars appreciated by 6.4% per year and those with one-car garages was 6%. Those with three-car garages just 3.8%.

Looking for the best return on investment on the home you’re buying? Consider these 8 factors which Realtor.com identified by analyzing millions of sales nationwide.

COLORADO ASSOCIATION OF REALTORS®

2018 RPAC MAJOR INVESTORS

2018 NAR President’s Circle

{as of December 15, 2018)

($1,000 Minimum to RPAC and $2,000 to National Political Parties or NAR-Selected Federal Candidates) Tyrone Adams, Colorado David Barber, Aurora Gary Bauer, Denver Metro Michael Burkhard, Grand Junction Area Dale Carroll, South Metro Denver Amy Dorsey, Vail George Harvey, Telluride Ann Hayes, Grand Junction Area Jay Kalinski, Boulder Area Keith Kanemoto, Longmont Piper Knoll, Denver Metro Michael Labout, Pikes Peak John Lucero, Denver Metro

Melissa Maldonado, South Metro Denver Michael Marcus, South Metro Denver Scott Matthias, South Metro Denver Chris McElroy, Fort Collins Larry McGee, South Metro Denver Ron Myles, Denver Metro Commercial Marcel Savoie, South Metro Denver Todd Schuster, South Metro Denver Bonnie Smith, Summit Lynn Snyder Goetz, South Metro Denver Linda Romer Todd, Grand Junction Area Kay Watson, South Metro Denver

NAR Corporate Ally Program

(Multiple Listing Services voluntarily investing in RPAC) IRES Pikes Peak REALTOR® Service Corp

REColorado

Platinum R - Annual Investment of $10,000+ Boulder Area REALTOR® Association Gary Bauer, Denver Metro

Colorado Association of REALTORS® Linda Romer Todd, Grand Junction Area

Golden R - Annual Investment of $5,000+ Dale Carroll, South Metro Denver REALTOR® Denver Metro Area Assoc. of REALTORS® Amy Dorsey, Vail Grand Junction Area REALTOR® Association George Harvey, Telluride Keith Kanemoto, Longmont Michael Labout, Pikes Peak John Lucero, Denver Metro

Michael Marcus, South Metro Denver Scott Matthias, South Metro Denver Chris McElroy, Fort Collins Larry McGee, South Metro Denver Ron Myles, Denver Metro Commercial Todd Schuster, South Metro Denver Bonnie Smith, Summit Kay Watson, South Metro Denver

Crystal R - Annual Investment of $2,500+ David Barber, Aurora John Mitchell, Aurora Robert Walkowicz, Loveland-Berthoud

COLORADO ASSOCIATION OF REALTORS®

2018 RPAC MAJOR INVESTORS

Sterling R - Annual Investment of $1,000+ Andrew Abrams, Denver Metro Tyrone Adams, Colorado David Anderson, Pueblo Monica Anderson, Grand County Brian Anzur, Denver Metro Okie Arnot, South Metro Denver Barbara Asbury, Pikes Peak Aspen Board of REALTORS® Richie Averill, Denver Metro Ann Bagwell, Aurora Sunny Banka, Aurora Erin Bassett, Glenwood Springs Ed Behr, Pikes Peak Pat Bigley, Pikes Peak Nick Bokone, South Metro Denver Mark Bowman, Denver Metro Michel Brossmer, Denver Metro Michael Burkhard, Grand Junction Area Vicki Burns, Craig Michael Burns, South Metro Denver Janna Burton, Montrose Linda Buzzalini, Durango Area Anthony Carnesi, South Metro Denver Nels Cary, Telluride Amy Cesario, Denver Metro Cheryl Chandler, Glenwood Springs Kathy Christina, Summit Joseph Clement, Pikes Peak Carol Click, Four Corners Barbara Cline, Aurora John Cooley, Aspen Camellia Coray, Pikes Peak Jacob Curbow, Pikes Peak Mercie Curbow, Pikes Peak Charles D’Alessio, Pikes Peak Robert Danos, Longmont Natalie Davis, Fort Collins Shane Dawson, Durango Area David DeElena, Aurora Amanda DiVito Parle, Denver Metro Joe DiVito, Denver Metro Chris Djorup, Denver Metro Christopher Doyle, Fort Collins EAVE Lending Kathleen Eck, Vail Barb Ecker, Denver Metro Molly Eldridge, Gunnison Country George Emmett, Vail William Fandel, Telluride James Flaum, Vail Cherri Fischer, Pikes Peak Bob Fullerton, Glenwood Springs Micah George, Grand Junction Area Jace Glick, Denver Metro Euan Graham, Denver Metro Heidi Greer, Denver Metro Scott Grossman, Denver Metro Buck Haddock, South Metro Denver Andrea Haitz, Grand Junction Area Heather Hankins, South Metro Denver Lauren Hansen, Colorado Deborah Hansen, Loveland-Berthoud

Lisa Hansmeier, Colorado Steve Harder, South Metro Denver Ed Hardey, Aurora Tyler Harris, Grand Junction Area Ann Hayes, Grand Junction Area Tor Hayward, Grand Junction Area Toni Heiden, Grand Junction Area Robert Henderson, Pikes Peak Phillip Heter, Denver Metro Mary Ann Hinrichsen, South Metro Denver Ken Hotard, Boulder Area Deborah Howes, Pikes Peak Max Hutcheson, Durango Area Dennis Johnson, Summit Association Janene Johnson, Grand County Board Jeremy Johnson, Greeley Area Alan Jones, Loveland-Berthoud Jay Kalinski, Boulder Area Jonathan Keiler, South Metro Denver Pamela Kiker, South Metro Denver Krista Klees, Aspen Kelly Kniffin, Durango Area Justin Knoll, Denver Metro Piper Knoll, Denver Metro Anne Marie Kremer, South Metro Denver Cynthia Kruse, Vail Dave Kupernik, Denver Metro Shannon Kyle, Glenwood Springs Bob LeGare, Aurora Matthew Leprino, Denver Metro Karen Levine, Denver Metro Elizabeth Levinson, Denver Metro Cheri Long, Aurora Alan Lovitt, Pikes Peak Linda Lowry, Pueblo Kevan Lyons, ROCC Mike MacGuire, Pikes Peak Gary Maggi, Loveland-Berthoud Melissa Maldonado, South Metro Denver Janet Marlow, South Metro Denver Michelle Martinez, Montrose John McComas, South Metro Denver Joe Bob McGuire, Durango Area Stew Meagher, South Metro Denver Kristin Miller, Denver Metro Rick Miller, Denver Metro Jill Moneypenny, Vail Josette Montgomery, Mountain Metro Kelly Moye, Boulder Area Daniel Muldoon, Pikes Peak Patrick Muldoon, Pikes Peak Christopher Mygatt, Boulder Area George Nehme, Pikes Peak Karen Nichols, Denver Metro Jarrod Nixon, Durango Area Wynne Palermo, Pikes Peak Rike Palese, South Metro Denver Kevin Patterson, Pikes Peak Jason Peck, Denver Metro Elizabeth Peetz, Colorado Scott Peterson, Colorado John Pfeiffer, Vail

{as of December 15, 2018)

Linda Philpott, Aurora David Pike, Denver Metro Hank Poburka, Pikes Peak Preston Porter, Pagosa Springs Area Joan Pratt, South Metro Denver Veronica Precella, Boulder Area Bobbi Price, Pikes Peak Sally Puff-Courtney, Telluride Debra Ann Reardon, Pikes Peak Amy Reid, Pikes Peak Julie Retzlaff, Vail Randy Reynolds, Pikes Peak Daren Roberts, Glenwood Springs Albert Roer, Telluride Gretchen Rosenberg, Denver Metro Laura Ruch, Denver Metro Jolon Ruch, Denver Metro Crissy Rumford, Vail Kylie Russell, Denver Metro Ulrich Salzgeber, Steamboat Springs Scott Sammons, Boulder Area Marcel Savoie, South Metro Denver Dennis Schick, Fort Collins David Scott, Boulder Area Christine Serwe, Durango Area Page Slevin, Vail John Simmons, Loveland-Berthoud Richard Sly, South Metro Denver Alan Smith, South Metro Denver Lynn Snyder Goetz, South Metro Denver Diane Sorensen, Denver Metro South Metro Denver REALTOR® Tami Spaulding, Fort Collins LaDawn Sperling, Denver Metro Denise Staab, Fort Collins Betty Tack, Pueblo Stephanie Tanis, Pikes Peak Steve Thayer, Denver Metro Eric Thompson, Fort Collins Ron Thorne, Mountain Metro Mark Trenka, Denver Metro Ann Turner, Denver Metro Alice Van Westenberg, Denver Metro Lisa Wade, Boulder Area Jon Wade, Steamboat Springs Robert Walkowicz, Loveland/Berthoud Darrell Wass, Pikes Peak Dean Weissman, Pikes Peak John Wells, Durango Area John Wendt, Glenwood Springs Robert Werthman, Pikes Peak Brenda Wild, Aspen Ryan White, Fort Collins Brad Whitehouse, South Metro Denver Taylor Wilson, Denver Metro Lori Wood, Grand Junction Area Heather Woodward, Gunnison Country Jim Wotkyns, Durango Area Merrite Wyatt, Grand Junction Area Greg Zadel, Denver Metro Sandi Zimmerman, Denver Metro Sabrina Zunker, Denver Metro