I have been a long time tracker of Durango real estate sales statistics. The last three months of this year... July, August, September... just ended with 164 total residential sales in La Plata County. That represented a sales volume of a little over $59 million with an average days on the market of 215 days for those listings that sold. The average price was just over $361,000 while the median price was $314,500. I thought it would be interesting to look at how many units sold in the various price breaks, so I completed the study and here are the results: For homes that sold under $200,000 there were 38 sales; from $200-$300,000 there were 36 sales; from $300-$400,000 there were 43 sales; from $400-$500,000 there were 17 sales; from $500-$600,000 there were 13 sales; from $600-$700,000 there were 4 sales; from $700-$800,000 there were only 2 sales; from $800-$900,000 there was only 1 sale; from $900-$1 million there were 2 sales; and over $1 million there were 6 sales.
Clearly the largest volume of business was transacted at $400,000 and under. The very weakest price brackets were from $600-$1 million where in that $400,000 price band only nine properties sold. Obviously that is a very tough price range right now. If you are a seller in that price bracket, you may want to hang onto the property but if you are a buyer, it may be a good time to strike a hard bargain. Of those 164 sales, 123 of them were either Durango in town or Durango rural... meaning they had Durango ZIP codes. We still are seeing that people prefer to be close to Durango when buying their real estate.
This coming week I will have my complete statistical review of Durango real estate January through September. I will discuss part of it in my blog but I will also post it to the website on the statistics page which can be reached by going to www.BuyDurango.com and then clicking on the AREA INFO button, then the drop down button labeled DURANGO INFORMATION and lastly the drop-down button REAL ESTATE SALES STATS and here is a link to that homepage: www.BuyDurango.com Those statistics should be up before October 8.
If you're on the fence about whether to buy now or wait, please give Team Lorenz a call and let us help guide you through the decision-making process. In my 34 years of doing this, I've always found that the fall of the year is an especially good time for buyers because so many sellers want to be out of their property before the snow flies. There are still three months to go in 2010 and with interest rates still under 5%, it should make for a pretty easy decision.
Showing posts with label Team Lorenz. Show all posts
Showing posts with label Team Lorenz. Show all posts
Saturday, October 02, 2010
Sunday, September 19, 2010
$1,000,000+ Home Sales
I have found over the years people are always fascinated with sales in the million-dollar price bracket. This past week I closed on one of my listings in Shenandoah Peaks for just over $1 million. In the process of preparing for that closing, a competitive real estate broker asked me why it was that we attracted the million-dollar client? It got me to thinking about that subject and I wanted to see what the realities were.
Since January 1 of this year, our MLS records show that there have been 13 residential real estate closings of $1 million or more in La Plata County. In "Realtor-talk" we say that there are always 2 sides to every transaction: the listing agent side and the selling agent side. Each of those sides could be represented by a different broker. Consequently, 13 transactions would equate to 26 "sides" of $1 million or more. Realizing that there are nearly 300 brokers in our board of Realtors... about 45 of which were get the Wells Group... in roughly 50 offices, it was quite interesting to me to find out that the Wells Group participated in 12 of the 26 sides. That is, we were involved in nearly 50% of the transactions over $1 million. Coldwell Banker was involved in 4 sides; Glacier Club Realty was involved in 3 sides; Prudential and Durango Mountain Realty were both involved in 2 sides each. Clearly the competitive broker's observation was accurate that the Wells Group is very successful in working with both buyers and sellers of million-dollar plus property. I find it particularly interesting to note that the Wells Group is not a franchise and in spite of that fact dominates the higher end market. I believe this is true because the Internet has effectively made the benefits of a franchise inconsequential. We have seen statistics that show nearly 90% of all home buyers start their search on the Internet. They are not searching for a franchise, they are searching for a home, so they go to the website said best meets those needs. We feel that the Team Lorenz website www.BuyDurango.com and the Wells Group website are especially good at meeting those needs.
There is an extra level of expertise that only required, but is expected from that high-end client. On Team Lorenz, both Nicole Perino and Rick Lorenz have obtained the Institute For Luxury Home Marketing certification, with Rick being La Plata County's very first member. Membership is obtained not only through classwork, but also through documented closed transactions in the luxury home price range. Over the years I have found that a very thorough and informative website with lots of photographs and virtual tours of our million-dollar properties has been very helpful. Www.BuyDurango.com has been online for over a decade and has won numerous awards and national recognition. If you're a buyer looking in that price range please give us a call as they would be more than happy to use our 40+ years of experience to help you.
Since January 1 of this year, our MLS records show that there have been 13 residential real estate closings of $1 million or more in La Plata County. In "Realtor-talk" we say that there are always 2 sides to every transaction: the listing agent side and the selling agent side. Each of those sides could be represented by a different broker. Consequently, 13 transactions would equate to 26 "sides" of $1 million or more. Realizing that there are nearly 300 brokers in our board of Realtors... about 45 of which were get the Wells Group... in roughly 50 offices, it was quite interesting to me to find out that the Wells Group participated in 12 of the 26 sides. That is, we were involved in nearly 50% of the transactions over $1 million. Coldwell Banker was involved in 4 sides; Glacier Club Realty was involved in 3 sides; Prudential and Durango Mountain Realty were both involved in 2 sides each. Clearly the competitive broker's observation was accurate that the Wells Group is very successful in working with both buyers and sellers of million-dollar plus property. I find it particularly interesting to note that the Wells Group is not a franchise and in spite of that fact dominates the higher end market. I believe this is true because the Internet has effectively made the benefits of a franchise inconsequential. We have seen statistics that show nearly 90% of all home buyers start their search on the Internet. They are not searching for a franchise, they are searching for a home, so they go to the website said best meets those needs. We feel that the Team Lorenz website www.BuyDurango.com and the Wells Group website are especially good at meeting those needs.
There is an extra level of expertise that only required, but is expected from that high-end client. On Team Lorenz, both Nicole Perino and Rick Lorenz have obtained the Institute For Luxury Home Marketing certification, with Rick being La Plata County's very first member. Membership is obtained not only through classwork, but also through documented closed transactions in the luxury home price range. Over the years I have found that a very thorough and informative website with lots of photographs and virtual tours of our million-dollar properties has been very helpful. Www.BuyDurango.com has been online for over a decade and has won numerous awards and national recognition. If you're a buyer looking in that price range please give us a call as they would be more than happy to use our 40+ years of experience to help you.
Saturday, July 24, 2010
Points. What Are They in Should I Pay Them?
We are currently seeing interest rates at a roughly 50 year low. That makes it extremely good for a buyer because due to the low interest rate a buyer can now qualify for a larger loan or enjoy the benefits of a smaller loan payment due to the reduced interest rate. In spite of the wonderful benefit afforded by the currently low rates, perhaps you would like to have your Durango real estate purchase be more attractive with an even lower interest rate? It all has to do with points; so let me explain.
When a buyer takes out a home loan, often times the lender will ask that they pay a "point". The money goes to the lender to increase the yield on the loan. One point is defined as one percent of the loan amount... not one percent of the purchase price. A $100,000 sales price with a $20,000 down payment would result in a loan of $80,000. If the buyer paid one point, that would equal $800. Sometimes you hear loan rates quoted as X% with a 2% loan origination fee (LOF). For purposes of this discussion, points and loan origination fees are the same thing.
How are points useful? Let's say you have been preapproved for a 6% loan in the amount of $200,000. That would require a payment of $1200 per month. Remember it is the monthly payment amount that the bank uses in qualifying a borrower, not the gross amount of the loan. If the borrower has the cash to pay a point (or sometimes we can get a seller to pay it on behalf of the buyer) then that cash payment "buys down" the interest rate on the loan to a lower level. With a lower rate, the payment comes down or it will allow the borrower to qualify for a larger loan. Using our example above, let's say we paid one point. The rate would drop to 5.75% which would allow the borrower to get a loan for $205,475. If 2 points were paid, that would increase the loan amount to $211,187. That larger borrowing ability could be very useful in buying just the right home.
Should I pay points or not? It is a question I often hear and I always answer and say this: "Paying points is a math problem." Again, using our example from above, if one point is paid that would amount to $2000. If taken as a decreased interest rate, the payment would go from $1200 a month to $1167 per month a savings of $33 per month. Hence, it would take 60.6 months for the borrower to recoup their $2000. So the question to be asked is this: "Do I feel comfortable that I'm going to live in this house for at least 60.6 months?" If the answer is yes then you should seriously consider the option of paying the points.
By these two examples you can see there are two reasons to pay points: (1) to allow you to qualify for a larger loan or (2) to lower your monthly payment. If you need assistance in buying a property in the Durango area please give us a call and a Team member will be more than happy to help you with this type of calculation.Saturday, July 10, 2010
Durango Real Estate Sales Statistics-2010 YTD
I just completed compiling the Durango real estate sales statistics for the first six months of 2010. I traditionally do this study at the end of six months, nine months and 12 months of each year and compare those statistics for the same time period the year before. The complete spreadsheet for that analysis is located on the following link: Durango Real Estate Statistics.
2010 has seen a significant improvement over the 2009 sales statistics. Total residential dollar volume in La Plata County increased by 52% while the average sales price increased by 10%. In terms of units sold, it went from 210 units the first six months of 2009 to 293 units in the first six months of 2010. That which represented an increase of 39.5%. There was an increasing number of units sold in every single price range. The smallest increase was 27% but it happened to be in the most popular price range of $200,000-$400,000. Last year's complete "dead market" was anything from $800,000 and up where only seven properties sold in the first six months of 2009. This year 15 properties sold in that price bracket, although one buyer bought three in that price range.
In our business we often refer to the term "absorption rate" which is the period of time it would take for all active listings to be sold, assuming no additional properties would come on the market, based on the current rate of sales. For illustration purposes, let's say 10 homes sold between $400,000 and $600,000 in the last 12 months. Currently available on the market are 30 homes in that price range. That would be a three-year supply or absorption rate. The higher the absorption rate the more the market is benefiting a buyer; the lower the absorption rate, then we would call it a sellers' market. In 2009 the residential absorption rate was 3.29 years which is extremely high. This year it dropped all the way down to 2.34 years, which still is pretty high. Typically, we like to see it at about one year or less.
Where did the buyers buy in 2010? Durango in town sales were 111 units, while Durango country properties represented 104 units. Bayfield in town came in at 19 units and Bayfield rural actually dropped this year down to 23 units. Clearly Durango is the market maker but with the slowdown in the Bayfield area I would think there would be some very good values out there available for somebody who is especially budget conscious.
It is a very common question to be asked of our team members "Is it cheaper to build or to buy an existing home in Durango?" Even with builders and other contractors giving great deals right now because they are not busy, financially, it is a far better deal to buy an existing home. We are finding builders/sellers who are selling their properties for well below their cost. I met with another broker in town this past week who did a study on all of the foreclosure property sales in La Plata County this year. We have heard figures from places like Phoenix, Aurora and Pueblo were that percent would reach 35 to 50% of all transactions were sales where the bank was the seller. This fellow broker looked at every sale for the year 2010 and came up with a 7% figure for La Plata County. That was certainly an encouraging number.
Again here is a link to the full Excel spreadsheet: Durango Real Estate Sales Statistics
With over 1380 homes to choose from in La Plata County, a Team Lorenz buyer broker would love to help you in your efforts to buy a home in Durango. Lisa and Nicole are the very best and statistically have been the number one top-selling team since January of 2006 for the CREN MLS system (Durango, Grand Junction, Cortez, Delta,Montrose, San Luis Valley). It's one thing to talk and say you're good it's quite another to actually do it. And they are the best so please give us a call we are here to help.
2010 has seen a significant improvement over the 2009 sales statistics. Total residential dollar volume in La Plata County increased by 52% while the average sales price increased by 10%. In terms of units sold, it went from 210 units the first six months of 2009 to 293 units in the first six months of 2010. That which represented an increase of 39.5%. There was an increasing number of units sold in every single price range. The smallest increase was 27% but it happened to be in the most popular price range of $200,000-$400,000. Last year's complete "dead market" was anything from $800,000 and up where only seven properties sold in the first six months of 2009. This year 15 properties sold in that price bracket, although one buyer bought three in that price range.
In our business we often refer to the term "absorption rate" which is the period of time it would take for all active listings to be sold, assuming no additional properties would come on the market, based on the current rate of sales. For illustration purposes, let's say 10 homes sold between $400,000 and $600,000 in the last 12 months. Currently available on the market are 30 homes in that price range. That would be a three-year supply or absorption rate. The higher the absorption rate the more the market is benefiting a buyer; the lower the absorption rate, then we would call it a sellers' market. In 2009 the residential absorption rate was 3.29 years which is extremely high. This year it dropped all the way down to 2.34 years, which still is pretty high. Typically, we like to see it at about one year or less.
Where did the buyers buy in 2010? Durango in town sales were 111 units, while Durango country properties represented 104 units. Bayfield in town came in at 19 units and Bayfield rural actually dropped this year down to 23 units. Clearly Durango is the market maker but with the slowdown in the Bayfield area I would think there would be some very good values out there available for somebody who is especially budget conscious.
It is a very common question to be asked of our team members "Is it cheaper to build or to buy an existing home in Durango?" Even with builders and other contractors giving great deals right now because they are not busy, financially, it is a far better deal to buy an existing home. We are finding builders/sellers who are selling their properties for well below their cost. I met with another broker in town this past week who did a study on all of the foreclosure property sales in La Plata County this year. We have heard figures from places like Phoenix, Aurora and Pueblo were that percent would reach 35 to 50% of all transactions were sales where the bank was the seller. This fellow broker looked at every sale for the year 2010 and came up with a 7% figure for La Plata County. That was certainly an encouraging number.
Again here is a link to the full Excel spreadsheet: Durango Real Estate Sales Statistics
With over 1380 homes to choose from in La Plata County, a Team Lorenz buyer broker would love to help you in your efforts to buy a home in Durango. Lisa and Nicole are the very best and statistically have been the number one top-selling team since January of 2006 for the CREN MLS system (Durango, Grand Junction, Cortez, Delta,Montrose, San Luis Valley). It's one thing to talk and say you're good it's quite another to actually do it. And they are the best so please give us a call we are here to help.
Saturday, July 03, 2010
Certified Negotiating Experts
This past week all three of the licensed brokers on Team Lorenz received their Certified Negotiation Expert professional designation. This is a nationally recognized program and is designed especially for real estate brokers. It was taught by Oliver Franscona a well-known real estate attorney from Denver. The two day class covered various techniques and styles of negotiating so that we as real estate brokers can better serve our clients whether they be buyers or sellers. Less than 1% of the Realtors nationwide have attained this designation.
Our team is dedicated to always improving our services and the additional classwork, training and transactions required to obtain many of these designations is certainly something that benefits our clients. Nicole Perino has received her Eco-broker designation, the CNE designations and the prestigious Luxury Home Marketing Institute designation. Lisa Govreau has received her CRS, GRI and now her CNE designations. Rick Lorenz has received the CRS, GRI, E-Pro, CNE, ABR designations as well as the Luxury Home Marketing Institute Certification. In addition Rick is a member of the CyberStars a by invitation only group of approximately 250 Realtors around the world.
Those of you that have used our services before know that we work very hard on behalf of the people that we represent. If you haven't used our services yet, we encourage you to begin the dialogue with one of our Team members. Please give us a call and we'll be happy to help you anyway that we can.
Our team is dedicated to always improving our services and the additional classwork, training and transactions required to obtain many of these designations is certainly something that benefits our clients. Nicole Perino has received her Eco-broker designation, the CNE designations and the prestigious Luxury Home Marketing Institute designation. Lisa Govreau has received her CRS, GRI and now her CNE designations. Rick Lorenz has received the CRS, GRI, E-Pro, CNE, ABR designations as well as the Luxury Home Marketing Institute Certification. In addition Rick is a member of the CyberStars a by invitation only group of approximately 250 Realtors around the world.
Those of you that have used our services before know that we work very hard on behalf of the people that we represent. If you haven't used our services yet, we encourage you to begin the dialogue with one of our Team members. Please give us a call and we'll be happy to help you anyway that we can.
Sunday, May 16, 2010
Million-Dollar Homes Sales
Over the years I have found out that many people are intrigued with the $1 million plus homes in the Durango real estate market. How many luxury homes have sold? How big a discount is having to be given to get them sold? Are buyers getting financing or paying cash? Just for fun I thought I would go ahead and look at this year through May 15 and see how it compared to last year through the same date. Here's what I've found.
In 2009 only three homes sold in that timeframe with the sales price of over $1 million in La Plata County. The average days on the market was 250 while the longest days on the market was only slightly more at 283 days. One property sold at 100% of asking price; one sold at 76% of asking price and the third property sold at 84% of asking price. The highest priced sale was $1,275,000 and that home was located on County road 250 (E. Animas Valley Rd.). Of those transactions two were financed and one was for cash. Based on their addresses, none would have been considered resort properties or homes located at the ski area.
In 2010 there have been six luxury homes sold from January 1 through May 15 within La Plata County for over $1 million. The average days on market was 275 days while the longest days on market was 1046 days. That large number skews the average so I will tell you that the median days on market was only 131 days. Three of these sales all happened at the same time with one buyer and they were all properties located on County Road 250. That series of transactions just closed last week. This year some high-end resort property sold. One at the Glacier Club and one at the ski area. Overall these homes sold at 84% of the asking price with the highest percentage of asking price being 93%. The property that sold at Purgatory was a condominium. With the availability of jumbo loans having loosened up quite a bit in the last year, it was pretty interesting to see that four of the six transactions sold for all cash where no financing was necessary.
If you are a regular reader of this blog you're already aware that I like tracking statistics. Our main website, www.BuyDurango.com has an entire section related to statistics and here is a link to it:
Durango Real Estate Market Statistics
Please feel free to give me a call if you have specific questions or have certain types of searches that you would like me to perform that may be of some help to you in your analysis of Durango real estate. We would certainly like to help you get a good handle on the condition of the market so that you can make informed decisions. Team Lorenz prides itself on trying to be very current on the market conditions and Lisa and Nicole certainly have all of the statistics available for them to use with you as well.
In 2009 only three homes sold in that timeframe with the sales price of over $1 million in La Plata County. The average days on the market was 250 while the longest days on the market was only slightly more at 283 days. One property sold at 100% of asking price; one sold at 76% of asking price and the third property sold at 84% of asking price. The highest priced sale was $1,275,000 and that home was located on County road 250 (E. Animas Valley Rd.). Of those transactions two were financed and one was for cash. Based on their addresses, none would have been considered resort properties or homes located at the ski area.
In 2010 there have been six luxury homes sold from January 1 through May 15 within La Plata County for over $1 million. The average days on market was 275 days while the longest days on market was 1046 days. That large number skews the average so I will tell you that the median days on market was only 131 days. Three of these sales all happened at the same time with one buyer and they were all properties located on County Road 250. That series of transactions just closed last week. This year some high-end resort property sold. One at the Glacier Club and one at the ski area. Overall these homes sold at 84% of the asking price with the highest percentage of asking price being 93%. The property that sold at Purgatory was a condominium. With the availability of jumbo loans having loosened up quite a bit in the last year, it was pretty interesting to see that four of the six transactions sold for all cash where no financing was necessary.
If you are a regular reader of this blog you're already aware that I like tracking statistics. Our main website, www.BuyDurango.com has an entire section related to statistics and here is a link to it:
Durango Real Estate Market Statistics
Please feel free to give me a call if you have specific questions or have certain types of searches that you would like me to perform that may be of some help to you in your analysis of Durango real estate. We would certainly like to help you get a good handle on the condition of the market so that you can make informed decisions. Team Lorenz prides itself on trying to be very current on the market conditions and Lisa and Nicole certainly have all of the statistics available for them to use with you as well.
Friday, April 09, 2010
Open Houses This Weekend... Earn $1000?
To help you in your search for Durango real estate, the Wells Group is holding approximately 57 open houses this weekend all across La Plata County. This is all being done as part of the National Association of Realtors national open house weekend. To view the list of homes that will be open you can go to http://wellsgroupdurango.com/open_house_index.asp and get a list and view a map of all of the properties. As an extra incentive, the Wells group is offering to pay to a buyer at closing $1000 provided that you purchase one of the Wells Group properties that you actually toured and that you signed up in that property. You must go under contract on one of your registered homes by April 30 and then close on the purchase by May 31 of this year in order to receive the $1000 credit. For those of you that are interested in the first time home buyer credit provided by the federal government or the repeat buyer credit, this $1000 would be over and above that.
Team Lorenz will have a condominium priced at $175,000 available both Saturday and Sunday from noon to 3 PM. It is located at 343 E. 8th Ave. unit number 9. Just follow the red and white open house signs. This is a great location near the college and at that price is certainly a very good value.
We would love to see you at our open houses this weekend but if you are unable to make it please feel free to give Team Lorenz a call and one of our excellent buyer brokers would help you in your search for Durango real estate. That number is 970-375-7007.
Team Lorenz will have a condominium priced at $175,000 available both Saturday and Sunday from noon to 3 PM. It is located at 343 E. 8th Ave. unit number 9. Just follow the red and white open house signs. This is a great location near the college and at that price is certainly a very good value.
We would love to see you at our open houses this weekend but if you are unable to make it please feel free to give Team Lorenz a call and one of our excellent buyer brokers would help you in your search for Durango real estate. That number is 970-375-7007.
Friday, January 22, 2010
FICO Score Information
Your FICO score is certainly something that anybody who has some interest in borrowing money is concerned about. If there was a magic pill to raise your FICA score by 50 points, almost everybody would take one of those. Mortgage lending is getting tougher and tougher... in spite of what the government says is going on in loosening of credit... and a high FICO score is even more important. For years people have tried to figure out the formula for determining that score, but it has been a well-kept secret. However, I recently read an article by Jeff Mandel and Marlin Brand Pres. and COO respectively, of ApprovalGUARD. It gave me some very helpful information. According to the authors, your credit score is based 30% on your payment history, 35% on the amounts of money that you owed compared to your available lines of credit, 15% on the length of your credit history, 10% on newly established credit and then 10% on the different types of credit that you use. You can see by these percentages, that the single most important figure is the one that relates to the balance you have outstanding compared to your available line of credit. That 35% is 5% higher than what your payment history has been. Just to be clear, the higher the credit score the better.
It seems that a higher credit score results when you keep your credit card balances at 30% or less of the authorized line of credit. Let's say you have a credit limit of $10,000 on your credit card, if you carry a balance of $9000 on it and pay it on time or even early all the time, that will result in a lower score than a person that has the same $10,000 limit that keeps a balance at $3000 or less and always pays on time.
Why is your credit score important? Mortgage lenders base the interest rate on your loan using what is called risk based analysis. A person with a credit score of 780 will pay lower interest rate than a person with a credit score of 715. The differences in interest rate can be significant one quarter of a percent to 1/2%, but more importantly some loan programs won't even be available to a person with a lower score. Some programs for second homes or investor (rental) properties may not be available to a person with a low credit score. In addition, a person with a lower score may be required to make a larger down payment.
Team Lorenz experts would be happy to connect you with a top-notch mortgage lender to get your credit report run, make sure there are no errors and maybe suggest some things to help improve the score. You want that score to be as high as possible when you apply for your loan. This is an especially good time for buyers as I'm sure everybody is aware it is a buyers market out there right now. Many sellers have reduced their prices back to levels of three, four or even 5 years ago. Those prices won't stay low like that forever; nor will the interest rates remain low forever. Please give Team Lorenz a call at 970-375-7007 and we will be happy to help.
Wednesday, January 20, 2010
Durango Mountain Biking Trails
Continuing in the series on why we love living in Durango.
If you are a fat tire mountain biker, then you're going to feel like you died and went to heaven when you come to Durango. To say we have miles of trails is an understatement; we've got several hundred miles of trails for the enthusiast. First off let me say that I am not a biker but it's hard not to know a fat tire biker in this town. I am going to tell you a little bit about several of the trails and areas and I'm also going to give you a link to a fabulous website that describes every single trail.
First off the Colorado Trail which starts in Denver and comes all the way to Durango runs through forest lands and other public lands for over 300 miles. You will cross the Continental Divide and go to elevations of 11,000 feet above sea level. The trail ends north and west of Durango out Junction Creek Rd. From the city limits it would be about a 3 mile ride to the trail head.
Another very popular trail system is located in Horse Gulch which lies due east of the city. It is accessed via a sidestreet right by the Sonic Drive-In or go south past the Sonic on Highway 3 and enter at Carbon Junction just North of, and right across the street from Wal-Mart. There are a vast number of trails in the Horse Gulch area but I'm just thinking anything called "Suicide Hill" is not my cup of tea, but it certainly is for those adrenaline junkies out there.
Don't think that every trail is super advanced. Little kids have to learn how to bike and there are numerous trails rated "easy" that are perfect for mom and dad and the little tykes.
One of our more famous trails, indeed many say it is world famous, is the Hermosa Creek Trail which is rated as most difficult. It is 21 miles in length and starts up near Purgatory (our ski resort) and ends at Hermosa where the train crosses highway 550. This particular ride has been written up in numerous fat tire biking magazines and is certainly a very popular all day event.
Here is a link to the descriptions of many of the biking trails in our area.
This outdoor activity is just another one of the many reasons people love to live in Durango. So many of the trails are close to town and it's not unusual for somebody to take a quick 30 minute spin on a lunch break. My oldest son will even ride his bike to work during the summer and spring months and that is about a 6 mile trek each direction. Since we live in the mountains, 6 miles of that is downhill, but the other 6 miles is uphill!
If you'd like to get to know more about Durango real estate market and the opportunities that exist for employment, Team Lorenz stands ready to help you at any time. Just click on this link ~Durango Real Estate~ and it will take you to my 500 page website that should be able to answer almost all of your real estate questions.Between the three of us that are licensed on the Team, we have a combined experience of over 40 years of selling real estate. Please give us a call, we are here to help. 970-375-7007
If you are a fat tire mountain biker, then you're going to feel like you died and went to heaven when you come to Durango. To say we have miles of trails is an understatement; we've got several hundred miles of trails for the enthusiast. First off let me say that I am not a biker but it's hard not to know a fat tire biker in this town. I am going to tell you a little bit about several of the trails and areas and I'm also going to give you a link to a fabulous website that describes every single trail.
First off the Colorado Trail which starts in Denver and comes all the way to Durango runs through forest lands and other public lands for over 300 miles. You will cross the Continental Divide and go to elevations of 11,000 feet above sea level. The trail ends north and west of Durango out Junction Creek Rd. From the city limits it would be about a 3 mile ride to the trail head.
Another very popular trail system is located in Horse Gulch which lies due east of the city. It is accessed via a sidestreet right by the Sonic Drive-In or go south past the Sonic on Highway 3 and enter at Carbon Junction just North of, and right across the street from Wal-Mart. There are a vast number of trails in the Horse Gulch area but I'm just thinking anything called "Suicide Hill" is not my cup of tea, but it certainly is for those adrenaline junkies out there.
Don't think that every trail is super advanced. Little kids have to learn how to bike and there are numerous trails rated "easy" that are perfect for mom and dad and the little tykes.
One of our more famous trails, indeed many say it is world famous, is the Hermosa Creek Trail which is rated as most difficult. It is 21 miles in length and starts up near Purgatory (our ski resort) and ends at Hermosa where the train crosses highway 550. This particular ride has been written up in numerous fat tire biking magazines and is certainly a very popular all day event.
Here is a link to the descriptions of many of the biking trails in our area.
This outdoor activity is just another one of the many reasons people love to live in Durango. So many of the trails are close to town and it's not unusual for somebody to take a quick 30 minute spin on a lunch break. My oldest son will even ride his bike to work during the summer and spring months and that is about a 6 mile trek each direction. Since we live in the mountains, 6 miles of that is downhill, but the other 6 miles is uphill!
If you'd like to get to know more about Durango real estate market and the opportunities that exist for employment, Team Lorenz stands ready to help you at any time. Just click on this link ~Durango Real Estate~ and it will take you to my 500 page website that should be able to answer almost all of your real estate questions.Between the three of us that are licensed on the Team, we have a combined experience of over 40 years of selling real estate. Please give us a call, we are here to help. 970-375-7007
Tuesday, January 19, 2010
Why Live in Durango?
Many of the subscribers to the Durango real estate blog are from out of the Durango area. These are people whose main goal is to get an idea of what Durango is all about; what goes on here that makes it attractive; and why might they want to live in Durango? I thought I would take a couple of blog postings and answer some of those questions.
There are lots of outdoor activities and events in Durango. I particularly like the Animas River Trail which runs from 32nd St. on the north end all the way down to behind Wal-Mart on the South end. I would guess that's 3 or 4 miles in length. And more Trail is being created on each end of the existing trail. This wonderful path is hard surfaced with either concrete or blacktop the entire route and is roughly 6 to 8 feet wide. Except in a few isolated spots, this trail runs right next to the Animas River and in certain spots the Durango to Silverton Narrow Gauge Railroad is right next to the river trail as well. There are bridges in several locations so that the trail crosses the Animas and behind the high school there are many days when the kids will dive off of the bridge into the river. You could ride your bike, push a baby in a stroller, jog or just take a leisurely stroll and there's always plenty of room for everyone. There are numerous access points to the River Trail all up and down the system, so getting to it is quite easy. It's a lot of fun to watch the fishermen fly fishing for trout or the kayakers running the rapids or the tubers and rafters meandering downstream. There are a couple of gaps in the entire system and these are being filled-in every year. You see, several years ago the voters passed a very small sales tax increase to pay for the completion and extension of the river trail system. So this is something that is used not only by tourists when they come to town, but very much so by the locals.
While we're talking about the Animas River, let me also mention some of the other water resources that we have in our area. The Animas is graded as gold -medal fishing waters right downtown! Our newest reservoir is currently being filled and it is just South and West of the city limits. It will be used for boating, water skiing, fishing and other outdoor recreation. It's going to take another year or possibly two to fill up so it is currently not open to the public. This reservoir will be called Lake Nighthorse after our former US Senator from Durango, Ben Nighthorse Campbell. There are 4 other reservoirs in our area: Lemon Reservoir; Vallecito Reservoir; Pastorius Reservoir; and Navajo Lake. Of these four, Navajo is by far the largest. That lake starts in Colorado and runs all the way down into New Mexico. It is perfect for enjoying waterskiing, sail boating, and there are those who even houseboat on that lake. There is a marina in Colorado as well as one in New Mexico. Navajo Lake is about a 40 minute drive from downtown Durango on all hard surfaced roads. You get there by driving through Ignacio, which by the way, has a $92 million casino hotel complex owned by the Southern Ute Tribe.
Vallecito Lake is North and East of Durango and is a 30 minute drive, also on hard surfaced roads. It is roughly 5 miles north to south and maybe a mile wide. Trout, pike, and bass are typical fish located in this lake. There are a couple of marinas on the Lake and if you decide to go swimming or waterskiing, you better have a wetsuit because this water is cold. There are several restaurants and watering holes at Vallecito as well as places to rent a horse for a horseback ride. It's not uncommon to see sailboats on Vallecito, but you see far more of them at Navajo Lake. Lemon Reservoir is in the same general area as Vallecito, it is just one River over to the West. This is a smaller lake with no marinas or docks. Great for a quiet day of fishing or kayaking. Pastorius Reservoir is located southeast of town on the Florida Mesa and is really just a nice spot to go fishing.
My next blog article will be on the fat tire bicycle trails that are all around town. We even have a mountain bike park!
Team Lorenz is here to serve you in your real estate needs. Rick has been involved in the real estate business for 34 years and knows Durango forwards and backwards. With the real estate market in lending practices as volatile as they have been the last year or so it's good to know there's somebody on the team with a little "grey hair behind the ears" to help guide buyers and sellers through their Durango real estate transactions. We specialize in getting the transaction completed when many other brokers are not able to. For the third year in a row, Lisa and Nicole (The Team Lorenz Buyer Specialists), successfully took more buyers to the closing table than any other team, agent, or mega broker in all of La Plata County. We specialize in results. We would be happy to help you locate your "dream home", please just give us a call at 970-375-7007.
Friday, January 08, 2010
End of Year Sales Statistics
Talk about a roller coaster ride! I'm not sure I've ever seen any year quite late 2009 before, as it relates to Durango real estate. As everybody knows, the sales volume was down in almost every market around the country. Durango's real estate market followed that trend but was certainly not nearly as bad as many markets which were predominantly foreclosure sales and bank owned properties. The "tide" was down all across the country, and our boat was caught in that tide.
In my blog article at the end of the third quarter I told you I was beginning to feel positive and I'd give you a firmer prediction at year's end as to which way the Durango real estate market is going. Rather than look at numbers on a static basis, I like to look at the trends and see which direction the numbers are moving. That gives me a much better sense of "predicting" the future. I've done a ton of analysis and here are some of the thoughts that I have. At the end of the first six months of 2009, La Plata County residential sales volume was down 45% from last year; at the end of nine months of 2009, the volume was down 37%; and at the end of the year 2009 volume was down only 22% compared to 2008. That shows me that the last half of 2009... in particular the last quarter... was making good headway in catching up to the very slow start to 2009.
In my third-quarter blog article, I discussed absorption rate at length. Remember that that rate is the period of time it would take all active listings to be sold, assuming no additional properties come onto the market based on the current rate of sales. That is, it is a reflection of how many homes are currently for sale and how many homes per month are selling. Generally speaking, a faster absorption rate reflects an improving market. For the first six months of 2009 residential absorption rate for all price categories of $100,000 and above in La Plata County was 3.29 years; at the end of nine months it dropped to 2.68 years and at the end of the year was down to 1.5 years. Again, this is another trend going significantly in the right direction.
The last quarter of the year finally saw the higher-end properties begin to come out of their doldrums. Through the first nine months of '09, 10 homes priced at $1 million and up had sold; by the end of the year 18 of those homes had changed hands. In the $800,000-$1 million price bracket, 7 homes sold during the first nine months but by the end of the year 14 had sold. In the $600,000-$800,000 price bracket, 20 homes had sold in the first nine months but by the end of the year 35 had sold. That clearly is a very good rate of increase in sales volume in those higher-end properties.
Areas that did not show improvement the sales price to list price percentage. Let's say you listed your home for $100,000 and sold it for $97,000. That sales to list price percentage would be 97%. Through the first six months of ‘09, that ratio was 96.8%; by the end of nine months it was 94%; and when the year concluded, it dropped to 93.3%. Pretty clearly sellers were willing to negotiate more in order to get their properties sold. Another measuring stick that I look at is median days on the market. It's a little different than absorption rate in that this simply says for those properties that did sell, how long did it take them to sell. Again, through the first six months, median days on the market was 115 days; by the end of nine months it had risen to 144 days; and by the end of the year it was 158 days.
One of the most significant changes was in the number of units currently available for sale. Again, this is strictly residential, priced at $100,000 and above, and only in La Plata County. Inventory at the end of six months was 1382 units; at the end of nine months it had dropped to 1333 units; but at year's end that number was all the way down to 854 units. That is even lower than at the end of 2008 when the available inventory was 1004 units. That is a very significant number of units that are not currently available and figuring out why they are not is a challenge. Partly, some sellers have clearly become discouraged and decided to simply take their property off the market in hopes of the market coming back. Another part of that slack is taken up because more properties sold in the last quarter of ‘09, thus reducing inventory. And thirdly, I believe some sellers have put their homes on the market as rental properties as we have certainly seen an increase in the number of rental homes available at this time of year.
Next week I will be able to post the spreadsheet for the full year statistics. Remember that on my website, www.BuyDurango.com I have posted previous spreadsheets. Here is a link to that page in my website: Durango Real Estate Statistics.
If you are a seller, then this information should be fairly encouraging to you especially when you realize that there's a lot less competition out there right now. If you are a buyer that has been sitting on the fence, I think most people can see that it's time to get off the fence. In spite of what we hear out of Washington DC, qualifying for a loan can be a challenge today. Our team members here would very much like to help you get connected to a good local lender who can start you in that process. Own qualification takes longer now than it did six months or a year ago. With the first-time home buyer tax credit having been extended as well as the creation of a new tax credit for home buyers that previously owned homes, we feel that those two market segments will have increased activity and thus more competition for a fewer number of properties. With more people chasing less properties, it is basic economics that teaches us that prices should rise in that market segment.
Team Lorenz is here to help you and we certainly look forward to a call from you.
In my blog article at the end of the third quarter I told you I was beginning to feel positive and I'd give you a firmer prediction at year's end as to which way the Durango real estate market is going. Rather than look at numbers on a static basis, I like to look at the trends and see which direction the numbers are moving. That gives me a much better sense of "predicting" the future. I've done a ton of analysis and here are some of the thoughts that I have. At the end of the first six months of 2009, La Plata County residential sales volume was down 45% from last year; at the end of nine months of 2009, the volume was down 37%; and at the end of the year 2009 volume was down only 22% compared to 2008. That shows me that the last half of 2009... in particular the last quarter... was making good headway in catching up to the very slow start to 2009.
In my third-quarter blog article, I discussed absorption rate at length. Remember that that rate is the period of time it would take all active listings to be sold, assuming no additional properties come onto the market based on the current rate of sales. That is, it is a reflection of how many homes are currently for sale and how many homes per month are selling. Generally speaking, a faster absorption rate reflects an improving market. For the first six months of 2009 residential absorption rate for all price categories of $100,000 and above in La Plata County was 3.29 years; at the end of nine months it dropped to 2.68 years and at the end of the year was down to 1.5 years. Again, this is another trend going significantly in the right direction.
The last quarter of the year finally saw the higher-end properties begin to come out of their doldrums. Through the first nine months of '09, 10 homes priced at $1 million and up had sold; by the end of the year 18 of those homes had changed hands. In the $800,000-$1 million price bracket, 7 homes sold during the first nine months but by the end of the year 14 had sold. In the $600,000-$800,000 price bracket, 20 homes had sold in the first nine months but by the end of the year 35 had sold. That clearly is a very good rate of increase in sales volume in those higher-end properties.
Areas that did not show improvement the sales price to list price percentage. Let's say you listed your home for $100,000 and sold it for $97,000. That sales to list price percentage would be 97%. Through the first six months of ‘09, that ratio was 96.8%; by the end of nine months it was 94%; and when the year concluded, it dropped to 93.3%. Pretty clearly sellers were willing to negotiate more in order to get their properties sold. Another measuring stick that I look at is median days on the market. It's a little different than absorption rate in that this simply says for those properties that did sell, how long did it take them to sell. Again, through the first six months, median days on the market was 115 days; by the end of nine months it had risen to 144 days; and by the end of the year it was 158 days.
One of the most significant changes was in the number of units currently available for sale. Again, this is strictly residential, priced at $100,000 and above, and only in La Plata County. Inventory at the end of six months was 1382 units; at the end of nine months it had dropped to 1333 units; but at year's end that number was all the way down to 854 units. That is even lower than at the end of 2008 when the available inventory was 1004 units. That is a very significant number of units that are not currently available and figuring out why they are not is a challenge. Partly, some sellers have clearly become discouraged and decided to simply take their property off the market in hopes of the market coming back. Another part of that slack is taken up because more properties sold in the last quarter of ‘09, thus reducing inventory. And thirdly, I believe some sellers have put their homes on the market as rental properties as we have certainly seen an increase in the number of rental homes available at this time of year.
Next week I will be able to post the spreadsheet for the full year statistics. Remember that on my website, www.BuyDurango.com I have posted previous spreadsheets. Here is a link to that page in my website: Durango Real Estate Statistics.
If you are a seller, then this information should be fairly encouraging to you especially when you realize that there's a lot less competition out there right now. If you are a buyer that has been sitting on the fence, I think most people can see that it's time to get off the fence. In spite of what we hear out of Washington DC, qualifying for a loan can be a challenge today. Our team members here would very much like to help you get connected to a good local lender who can start you in that process. Own qualification takes longer now than it did six months or a year ago. With the first-time home buyer tax credit having been extended as well as the creation of a new tax credit for home buyers that previously owned homes, we feel that those two market segments will have increased activity and thus more competition for a fewer number of properties. With more people chasing less properties, it is basic economics that teaches us that prices should rise in that market segment.
Team Lorenz is here to help you and we certainly look forward to a call from you.
Wednesday, December 02, 2009
Holiday Season-To List or Not to List
Clients often ask me whether they should list their home during the holiday season and early winter months. For others the question is, "Should I take my home off the market for the next three months?" There is no one set answer to either of these questions, but my general feeling would be to go ahead and list the property or keep it on the market, as the case might be.
Everybody knows that there is a large influx of homes that come on the market starting in late March or early April. In addition many sellers do take their homes off the market in November, December, and January. The consequence of this is that the inventory is always lower during those months of the year. Another way to look at that would be to say that there is less competition out there if your house is one of the ones that is on the market. Less competition is always good when you are the seller. A second, and very important consideration, is that any buyers who are looking at that time of year are far more likely to be serious buyers and not tire kickers. Who wants to stomp around in the snow and stormy weather looking at houses "just for fun" some Sunday afternoon? It would be an accurate generalization to say that the only buyers during those winter months are buyers who have to buy. What more could a seller ask for?
As a general rule, most people's homes are well decorated and very attractive during the month of December due to the holiday season. This helps the property show more like a "home" than a house, which generally would help in good sales appeal. In Durango, we often have a nice group of people coming to look at property during the month of December because they are combining their "real estate searching trip" with their trip to the ski area or visitation with friends etc. Our Team is very busy this month with buyers coming to town.
Who would be a good candidate not to have their house on the market during the holiday season? Often times you may have many family members coming to visit and is almost like they have camped out in your house. If you've got eight, 10, or 12 guests literally camped all over the place in sleeping bags etc. then that's not a good time to be showing the property. This is especially true if it is a small house and the extra people would make the place seem really cramped for space.
If you are an owner thinking about selling your Durango real estate, I would suggest giving Team Lorenz a call and let us put our 30+ years of experience to work for you. We are not just great marketing and effective websites, we are great at getting transactions closed during this very difficult market time when close to 50% of all transactions do not close. To learn a little more about what we do for you as a seller click the following link. Listing my Durango real estate.
Everybody knows that there is a large influx of homes that come on the market starting in late March or early April. In addition many sellers do take their homes off the market in November, December, and January. The consequence of this is that the inventory is always lower during those months of the year. Another way to look at that would be to say that there is less competition out there if your house is one of the ones that is on the market. Less competition is always good when you are the seller. A second, and very important consideration, is that any buyers who are looking at that time of year are far more likely to be serious buyers and not tire kickers. Who wants to stomp around in the snow and stormy weather looking at houses "just for fun" some Sunday afternoon? It would be an accurate generalization to say that the only buyers during those winter months are buyers who have to buy. What more could a seller ask for?
As a general rule, most people's homes are well decorated and very attractive during the month of December due to the holiday season. This helps the property show more like a "home" than a house, which generally would help in good sales appeal. In Durango, we often have a nice group of people coming to look at property during the month of December because they are combining their "real estate searching trip" with their trip to the ski area or visitation with friends etc. Our Team is very busy this month with buyers coming to town.
Who would be a good candidate not to have their house on the market during the holiday season? Often times you may have many family members coming to visit and is almost like they have camped out in your house. If you've got eight, 10, or 12 guests literally camped all over the place in sleeping bags etc. then that's not a good time to be showing the property. This is especially true if it is a small house and the extra people would make the place seem really cramped for space.
If you are an owner thinking about selling your Durango real estate, I would suggest giving Team Lorenz a call and let us put our 30+ years of experience to work for you. We are not just great marketing and effective websites, we are great at getting transactions closed during this very difficult market time when close to 50% of all transactions do not close. To learn a little more about what we do for you as a seller click the following link. Listing my Durango real estate.
Friday, November 06, 2009
More Info On Homebuyer Tax Credits
As predicted yesterday, President Obama has signed the legislation to not only extend the $8000 First Time Home Buyer Tax Credit but has added a new tax credit of up to $6500 for what we are going to call the Move-Up Buyer Tax Credit.
Many of you are very aware of the First Time Home Buyer Tax Credit and there have been some changes in that program. Here are the important points: (1) The credit is for 10% of the purchase price of the property, but not over $8000 if you're married filing a joint return, or $4000 if you are married filing tax returns separately; (2) A first time homebuyer is defined as someone who has not had any interest in a principal residence for the past three years prior to the closing date; (3) There are income limits, namely $125,000 in annual income for a single person or $225,000 annual income for a married couple and there is a phase-out of the credit as income increases; (4) the home must be under a binding contract of sale by April 30, 2010 and the property must close on or before July 1, 2010.
The Move-Up Buyer Tax Credit is for people that have lived in their principal residence five consecutive years out of the previous eight years. That wording is a little interesting, because what that means is you could have sold the home two years ago and been renting in the meantime, and as long as you can close on another property, by the deadline date outlined below and in such time that you don't negatively impact the five-year rule, then you can go ahead and get the $6500 credit. Even though we call this the move-up buyer tax credit, the replacement property does not have to be a higher price than your previous home. We do know that the value cannot be over $800,000, however. Income levels appear to be the same as above. The time frame in which to put a property under a binding contract and close is the same as the above as well. The credit amount is a maximum of $6500 or $3250 if married filing separately.
I'm sure there will be many more questions and clarifications that will come up just like we did this last year when a first-time buyer credit came out. Buying real estate in Durango, or any other part of the country, is complex and we would certainly like to help you in your endeavors to buy Durango real estate. Over the years Durango Colorado homes have been a very good investment and Team Lorenz is here to help you whether you are buying or selling. Give us a call at 970-375-7007. If you'd like to look at all of the Durango homes for sale feel free to click this link and it will take you to my Main website buydurango.com.
Many of you are very aware of the First Time Home Buyer Tax Credit and there have been some changes in that program. Here are the important points: (1) The credit is for 10% of the purchase price of the property, but not over $8000 if you're married filing a joint return, or $4000 if you are married filing tax returns separately; (2) A first time homebuyer is defined as someone who has not had any interest in a principal residence for the past three years prior to the closing date; (3) There are income limits, namely $125,000 in annual income for a single person or $225,000 annual income for a married couple and there is a phase-out of the credit as income increases; (4) the home must be under a binding contract of sale by April 30, 2010 and the property must close on or before July 1, 2010.
The Move-Up Buyer Tax Credit is for people that have lived in their principal residence five consecutive years out of the previous eight years. That wording is a little interesting, because what that means is you could have sold the home two years ago and been renting in the meantime, and as long as you can close on another property, by the deadline date outlined below and in such time that you don't negatively impact the five-year rule, then you can go ahead and get the $6500 credit. Even though we call this the move-up buyer tax credit, the replacement property does not have to be a higher price than your previous home. We do know that the value cannot be over $800,000, however. Income levels appear to be the same as above. The time frame in which to put a property under a binding contract and close is the same as the above as well. The credit amount is a maximum of $6500 or $3250 if married filing separately.
I'm sure there will be many more questions and clarifications that will come up just like we did this last year when a first-time buyer credit came out. Buying real estate in Durango, or any other part of the country, is complex and we would certainly like to help you in your endeavors to buy Durango real estate. Over the years Durango Colorado homes have been a very good investment and Team Lorenz is here to help you whether you are buying or selling. Give us a call at 970-375-7007. If you'd like to look at all of the Durango homes for sale feel free to click this link and it will take you to my Main website buydurango.com.
Thursday, November 05, 2009
$8000 Tax Credit Extended
Late this afternoon both the Senate and the House passed the extension of the $8000 first time home buyer tax credit. It was part of an unemployment benefits extension legislation. The first time home buyer tax credit is now extended through April 30, 2010as a deadline to be under contract and the property must close by the end of June of 2010.
A new, move-up homebuyers tax credit of up to $6500 was also part of that legislation. A person would have to have lived in their home five out of the prior eight years as their primary residence and the home that they purchase must be $800,000 or less.
Both of these tax credit are only available for primary residence which can include condominiums, but it would not include second homes or vacation homes. More details will be coming out and as they are I will be sure to include them in this blog.
Please feel free to call Team Lorenz as we would be happy to help you in your Durango real estate endeavors. Our phone number is 970-375-7007. If you would like to look at homes for sale in Durango please click this link and it will take you directly to all of the homes for sale.
A new, move-up homebuyers tax credit of up to $6500 was also part of that legislation. A person would have to have lived in their home five out of the prior eight years as their primary residence and the home that they purchase must be $800,000 or less.
Both of these tax credit are only available for primary residence which can include condominiums, but it would not include second homes or vacation homes. More details will be coming out and as they are I will be sure to include them in this blog.
Please feel free to call Team Lorenz as we would be happy to help you in your Durango real estate endeavors. Our phone number is 970-375-7007. If you would like to look at homes for sale in Durango please click this link and it will take you directly to all of the homes for sale.
Near Biking Trails And Downtown Durango
One thing that I've always found interesting about Durango real estate is the wide variety of Durango homes for sale. We have hand peeled log homes in the forest overlooking lakes; we have cattle and horse ranches with a river running through it; we have irrigated farmland; we have stately Victorian homes in downtown Durango; and we have a number of different styles of condominiums and townhomes to suit almost anyone's tastes.
Durango Real Estate Blog's featured property is a condominium located in the southeast end of the town with very easy access to Fort Lewis College, Horse Gulch hiking and biking trails (right across the street) and it is even within walking distance to downtown Durango. Built in 2004, this Santa Rita town home has all the amenities and upgrades one would hope for. Essentially, there are two master suites on the top floor as well as an additional half bath on the main level. The kitchen is top notch with cherry cabinets and granite tile countertops. You will love to cook with the GE profile appliances. On those winter nights when the snow is coming down, you will enjoy curling up with a glass of wine in front of the gas-fired fireplace in the living room. This unit was the builder's model so you know he paid extra special attention to every detail during construction. This is a small townhome complex with only 13 units in it, most of which are owner occupied.
The lower-level is an oversized one car garage with a tank-less water heater to help save on your utility bills, yet there is plenty of room to store your kayak, bicycle or camping equipment. The entire home is protected with a fire suppression system. Condo dues are quite reasonable at $100 per month which includes snow removal, outdoor maintenance, exterior insurance and a mailbox system.
To obtain more information on this Durango Home for Sale please click this link.
Team Lorenz is more than happy to help you with any and all of your real estate needs. For the third year in a row, Team Lorenz has successfully taken more buyers to the closing table than any other team, mega agent, and in many instances, even entire companies. During this time when so many transactions fail due to financing, appraisal issues, etc. we are proud to say that we are able to get the job done and our record proves that very fact. Our phone number is 970-375-7007.
Durango Real Estate Blog's featured property is a condominium located in the southeast end of the town with very easy access to Fort Lewis College, Horse Gulch hiking and biking trails (right across the street) and it is even within walking distance to downtown Durango. Built in 2004, this Santa Rita town home has all the amenities and upgrades one would hope for. Essentially, there are two master suites on the top floor as well as an additional half bath on the main level. The kitchen is top notch with cherry cabinets and granite tile countertops. You will love to cook with the GE profile appliances. On those winter nights when the snow is coming down, you will enjoy curling up with a glass of wine in front of the gas-fired fireplace in the living room. This unit was the builder's model so you know he paid extra special attention to every detail during construction. This is a small townhome complex with only 13 units in it, most of which are owner occupied.
The lower-level is an oversized one car garage with a tank-less water heater to help save on your utility bills, yet there is plenty of room to store your kayak, bicycle or camping equipment. The entire home is protected with a fire suppression system. Condo dues are quite reasonable at $100 per month which includes snow removal, outdoor maintenance, exterior insurance and a mailbox system.
To obtain more information on this Durango Home for Sale please click this link.
Team Lorenz is more than happy to help you with any and all of your real estate needs. For the third year in a row, Team Lorenz has successfully taken more buyers to the closing table than any other team, mega agent, and in many instances, even entire companies. During this time when so many transactions fail due to financing, appraisal issues, etc. we are proud to say that we are able to get the job done and our record proves that very fact. Our phone number is 970-375-7007.
Saturday, September 19, 2009
Can't Sell? Try Exchanging.
Having been in real estate in Durango for so many years, I have witnessed the ups and downs of numerous markets. Back in the 80’s I became familiar with the concept of real estate exchanging. In its simplest form person A has a home worth $300,000 and they want to down size to a condo worth $250,000. Person B has just that type of condo and guess what? Their family is expanding and needs a home worth $300,000. Both parties like each other's property so they exchange their properties, one for the other, and person B gives to person A $50,000 to make up for the difference in values. This straight across, one for one exchange, doesn't happen very often. Instead what we see is person A wants out of their property very badly and really likes person B's property. Person B however has no interest in person A's property. Consequently, we need to add what we often call the third leg to the transaction and that would be a taker for person A's property. You can see how this could get interesting pretty quickly with it not being uncommon to have 3, 4 or even 5 legs to a transaction.
Brokers who do exchanges often get together in groups and present various properties that their sellers have indicated they would be willing to take other property for in exchange for theirs. These meetings are open forums where each presenter gets about five minutes to explain what his client has and what his client would like as well as what his client might be able to add to a transaction in terms of additional properties. I attended just such a meeting yesterday and came away with a proposal for one of my clients. Lots of times, at meetings like this, it isn't just real estate that is offered. When a broker says that their client can add something to the transaction, that “something”could be a boat, a motorhome, an interest in a houseboat, etc. These things are often added in order to balance the equities between the parties. Let's go back to our first example where the one party needed to pay the other party $50,000. It wouldn't be unusual to see an offer made where the one-party would offer you $25,000 in cash and his free and clear ski boat. As you can see these affairs can be very fun and interesting but most importantly they are focused on problem-solving.
There are two ideal candidates in exchanging: the first is what we call a “don't wanter” that is to say, the seller absolutely doesn't want their property anymore. It could be someone who's had a terrible experience in property management; it could be caused by a divorce; it could be someone who has a property that is difficult to sell or so high-priced that it might be better if they had two or three smaller properties which individually would be easier to sell. The second ideal candidate is somebody that owns free and clear property. That makes it very easy for them to go into a transaction because they have a 100% equity position in relation to the value of their property. Bad candidates would be people who are upside down... that is they have no equity in their property... unless they are able to add other properties that have equity.
There are certain tax benefits to doing an exchange but those would only pertain to investment properties. That is, your personal residence is not eligible for a 1031 tax-deferred exchange. That's not to say you couldn't exchange it, it simply means that that you don't have the benefit of the of the 1031 terms. A personal residence, as long as you've lived there for two years, has the $250,000 or $500,000 tax-free gain benefit anyway. I've written some additional information regarding 1031 exchanges that can be found on my main website www.buydurango.com here is a link to that specific page: Durango Real Estate Exchanges .
As you can imagine, these transactions can be complex and you certainly need an experienced real estate broker to guide you through the process. A very good knowledge of the inventory of properties available in the Durango real estate market is certainly important. How to structure an exchange to minimize the tax consequences is important as well. And lastly a broker that can be creative and think out of the box is the kind of broker that you need in order to put together a 3, 4, or even a five legged exchange. If this sounds interesting to you please give us a call, Team Lorenz is here to help.
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