Q: What is your assessment of the Denver real estate market?
A: I think right now our market is going through recovery. By October or November, this market will really bottom out. Then in the next six months, we’ll be stable, and we’ll see some growth in April and May.
I believe Colorado will lead this nation out of this recession/depression.
Q: Why have prices declined so much?
A: I think it’s really mortgage-related. There were a lot of bad loans out there.
Mortgages are adjusting to outrageous amounts. These were products that were meant for investors and were sold to occupants.
Banks are only allowed to carry a certain inventory, so they liquidate and get 80 cents on the dollar. Those houses are being compared to the other houses in the neighborhood and reducing the value of that property as well.
Q: What are your thoughts on the housing- relief legislation?
A: Colorado is going to get about $88 million to buy some of these distressed properties. I believe it’s a great start. You have to see where it goes before you write new legislation.
It’s similar to back in the late ’80s when the Resolution Trust Corp. came in to help out these banks. It’s kind of comparable, but it’s not as bad as back then when interest rates were 18 percent. We have more people and more jobs, so on a percentage basis, it’s not as bad.
Q: Do you have any ideas about how to provide more affordable housing?
A: I know Kathi Williams (director of the state’s Division of Housing) says we are about $30 million short to meet our housing needs. The Denver Board of Realtors is looking at all types of ways to deal with it.
First, we need to assess the true need.
We have CARHOF (Colorado Association of Realtors Housing Opportunity Fund) for affordable housing, whether it’s rentals or home ownership. Some of it might go to Habitat for Humanity.
One way to increase CARHOF funds would be to give home buyers the option to put their (earnest) money (in escrow with CARHOF) rather than with a title company. CARHOF would get the interest.
The fight we would have with that is with the banks and the title companies because they earn thousands of dollars off other people’s money.
Q: What else can the Division of Real Estate do to combat mortgage fraud?
A: I think Erin Toll (the division’s director) has done a wonderful job. There are three or four bills that were introduced to make sure mortgage brokers were properly licensed.
We need to see it in action. We see the indictments coming down and the bad apples going away.
With appraisers, the only thing you can do is to periodically appraise a property that was recently appraised. Self-policing in the industry would help.
Q: What are your goals as president of the Denver Board of Realtors?
A: We would like to strengthen the Realtor brand. We can provide more value than just finding the property; we can provide further information on schools, help with disclosures and addendum.
The Denver Board of Realtors plans on helping that effort by making sure our members are educated to the highest degree possible. We are working with other associations to grow our numbers and show a higher return on investment to our members.
Q: What real estate-related issues will be in the legislature next session?
A: (Section) 1031 exchanges and qualified intermediaries. They’re not regulated unless they’re part of a bank.
There are probably 10 to 20 1031 exchange companies that are not regulated. There were millions of dollars that went overseas to other investments, and then when it came time to invest it here, that money was no longer available.
Eminent domain is another issue. Eminent domain is necessary because we have all these transportation plans.
There are good arguments on both sides. Is it right to take someone’s property for the public good and also allow retail and condos in order to make the parking lot sustainable? Should the current owner be able to participate in the development?
Q: What is your background?
A: I grew up in the construction industry. My family owns Empire Construction. It was Roberts Construction before we changed the name.
I come from a highly political family. My father was a councilman for District 11 and deputy mayor under (Federico) Peña.
I’m a former firefighter. I retired with disability back in 2000.
I went to CU-Boulder and was president of the student body. I got into the real estate business for our family. We were always in construction, and we wanted to get into development. The real estate side was missing.
Edited for length and clarity by Margaret Jackson
