The Wells Group will be sponsoring an online webinar on October 20 from 5 PM to 7 PM dealing with "DISTRESSED PROPERTIES". Those properties would include homes subject to a short sale, homes that are currently in foreclosure, and homes that have been through the foreclosure process and are now bank owned. Generally speaking, a buyer can get a very good deal on these types of properties, but there are certain "landmines" that one must be very aware of when making those purchases. That is just part of the information that we will go over in that webinar. In addition we will do virtual tours of approximately 40 properties currently available that meet those criteria. Most of these will be Durango real estate or Bayfield real estate.
If this interests you, please send me an e-mail asking for the webinar login information and I will send that to you as soon as that password system is set up. You can click on this link to send me an e-mail.
Showing posts with label durango real estate. Show all posts
Showing posts with label durango real estate. Show all posts
Saturday, October 02, 2010
Durango Real Estate Statistics 3rd Quarter
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.
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.
Wednesday, August 04, 2010
Changing Rules in the Mortgage Industry
All of us have heard stories from friends and business acquaintances about some of the new difficulties in obtaining financing today for the purchase or refinancing of your home. A few years back we kiddingly would say "If you can fog a mirror, you'll qualify for a loan." Fortunately those days are gone and they probably never should have been here in the first place.
Lenders have tightened up on apparent loopholes and here are a few of them. Every lender will run a credit report on the buyer, usually fairly early in the loan process. In the past, that was the only credit report run. Today, some lenders are "refreshing" your credit reports by running them again just prior to closing. The purpose of this is to make sure that the buyer has not had any new late payments, hasn't run up a credit card bill real high, or the one that we see way too often is they went out and bought a new car. Each of those things can be a major issue with the lender.
Everybody is used to providing copies of their income tax returns to the lender as part of the loan process. Some people would actually turn in bogus income tax returns to make their income appear to be more or perhaps their business expenses less. Previously, in about 2% or 3% of the loan applications, the lender would contact the IRS and ask them to send a transcript or summary of the actual returns to compare with the ones turned in with the loan application.
Verifying a borrowers' employment is another step that is done early in the loan process. Now the lenders are required to call the employer just prior to closing to verify that the person is still gainfully employed. I actually had a buyer client call me on the day of closing, somewhat in bewilderment, thinking that the bank was doing a bad job if the day of closing was the first time they were verifying their employment. I assured them, it was actually the second time. If the person is self-employed, the lender is required to call the CPA or accountant to verify the profitable ongoing business is still being run by the potential borrower.
I spoke with David Fountain at Wells Fargo Home Mortgage here in Durango and asked him if this was overkill or were there really lots of problems before? "Some of this might be overkill, but lenders have to be ever so careful to make sure that the information that they provide to the secondary market is accurate at the time of closing. If somebody lost their job or even retired two days before closing, for most people that would certainly be a material change in someone's financial condition." I asked David if these rules apply with every single transaction or is it a certain percentage of them? "It varies. Let's use the example of the lender requesting a transcript of the income tax return from the IRS. Remember that number used to be 2 or 3% but today that percentage is well over 50%. The employment verification just prior to closing is required for 100% of the files."
Buying real estate is certainly a complex transaction and experienced professionals are certainly an important part of the process. I have worked with David Fountain at Wells Fargo Home Mortgage (970-385-9360) for years and truly appreciate his extremely professional service. Having a good experienced Realtor is also important in all of the brokers on Team Lorenz have that strong experience gained by successfully closing many transactions. If you or your friends are ready to make the move into the Durango real estate market please give us a call and we will hold your hand through the entire process. To take a look at properties for sale please click the following link: Durango Real Estate
Lenders have tightened up on apparent loopholes and here are a few of them. Every lender will run a credit report on the buyer, usually fairly early in the loan process. In the past, that was the only credit report run. Today, some lenders are "refreshing" your credit reports by running them again just prior to closing. The purpose of this is to make sure that the buyer has not had any new late payments, hasn't run up a credit card bill real high, or the one that we see way too often is they went out and bought a new car. Each of those things can be a major issue with the lender.
Everybody is used to providing copies of their income tax returns to the lender as part of the loan process. Some people would actually turn in bogus income tax returns to make their income appear to be more or perhaps their business expenses less. Previously, in about 2% or 3% of the loan applications, the lender would contact the IRS and ask them to send a transcript or summary of the actual returns to compare with the ones turned in with the loan application.
Verifying a borrowers' employment is another step that is done early in the loan process. Now the lenders are required to call the employer just prior to closing to verify that the person is still gainfully employed. I actually had a buyer client call me on the day of closing, somewhat in bewilderment, thinking that the bank was doing a bad job if the day of closing was the first time they were verifying their employment. I assured them, it was actually the second time. If the person is self-employed, the lender is required to call the CPA or accountant to verify the profitable ongoing business is still being run by the potential borrower.
I spoke with David Fountain at Wells Fargo Home Mortgage here in Durango and asked him if this was overkill or were there really lots of problems before? "Some of this might be overkill, but lenders have to be ever so careful to make sure that the information that they provide to the secondary market is accurate at the time of closing. If somebody lost their job or even retired two days before closing, for most people that would certainly be a material change in someone's financial condition." I asked David if these rules apply with every single transaction or is it a certain percentage of them? "It varies. Let's use the example of the lender requesting a transcript of the income tax return from the IRS. Remember that number used to be 2 or 3% but today that percentage is well over 50%. The employment verification just prior to closing is required for 100% of the files."
Buying real estate is certainly a complex transaction and experienced professionals are certainly an important part of the process. I have worked with David Fountain at Wells Fargo Home Mortgage (970-385-9360) for years and truly appreciate his extremely professional service. Having a good experienced Realtor is also important in all of the brokers on Team Lorenz have that strong experience gained by successfully closing many transactions. If you or your friends are ready to make the move into the Durango real estate market please give us a call and we will hold your hand through the entire process. To take a look at properties for sale please click the following link: Durango Real Estate
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.Friday, July 23, 2010
Home on 9 Acres Bordering National Forest
Team Lorenz was recently retained to help market this Bayfield Colorado home just 25 minutes from downtown Durango. If you're looking for some privacy, direct access to national forest and a thoroughly modern home, then this one could be a good fit.
This warm and inviting 3 bedroom, 2.5 bath, 2800 square foot home on 9.7 acres is nestled amongst the towering trees and backs to National Forest for unlimited hunting and hiking access. Enjoy peace, quiet and freedom in Bear Creek Canyon which offers no formal HOA and minimal restrictions.
This beautiful and spacious home has been recently fully remodeled and is finished in Art-and-Crafts period style with every detail intact. Enjoy wood wainscoting, hard wood floors, gorgeous custom wallpaper, claw foot bathtubs, and many other features.
Large screen-covered porch and a nice established garden invite you to relax with your favorite book while listening to the birds and watching wildlife stroll by. There is also a large open space for your horses’ corral. Big living room windows allow you to watch wildlife come and drink out of the seasonal pond. Whatever you enjoy the most: hiking, hunting, picking wild blueberries, peaceful setting, or craftsmanship, this is a home for you. Priced at $315,000 this may be the perfect home for you. Please give us a call and anyone on our Team will be happy to help you.
Saturday, July 17, 2010
Irrigated 4.79 Acre Building Lot
As many of you know, I have been selling Durango real estate for 33+ years. In that time frame one of the hardest pieces of property to try to locate was a nice piece of irrigated land that can be used for a home site. Not 30 acres or 50 acres, but something in the 3 to 5 acre size that maybe didn't have a lot of covenants and restrictions. Several subdivisions were created in our County mostly with 3 acre parcels in the 70s, 80s, and even into the 90s, but most of those were fairly restrictive. That is why this piece of land that I have for sale on County Road 302 is particularly interesting. At 4.79 acres it's nicely sized and has fabulous mountain views. A side role sprinkler comes with the property and there is a shared paved driveway providing very good access. The neighbor to the east is a large alfalfa field that is well maintained. Neighbors across the street are too far away to really be in view. There is a very nice house on the south and another home on the West side of the property.
The property has a slight slope and is essentially all pastureland. With the excellent irrigation would be easy to plant Aspen or other fast-growing type trees. Price was recently reduced to $145,000. This is a perfect place for somebody that wants to have a few horses or maybe raise some 4-H pets. Located about 1.25 miles east of Hwy. 550, you have very easy access to Durango, Ignacio, or Farmington, New Mexico.
Monday, June 21, 2010
Buyers: What Do You Really Want?
There is no perfect house! As simple as that observation would seem, I can't tell you how many buyers I meet who believe that if we look long enough and hard enough their perfect home is out there. I tell buyers, "Even if you find a great lot and build from scratch... it still will not be perfect." (See the three rules of building below.) To help the buyers realistically focus on their needs, we have a tool in our conference room that is made up of 16 wooden sticks. On each stick is written a question that every buyer has to consider. What price range? How many bedrooms? City lot or country acreage? Move in ready or fixer-upper? Mountain View's? Travel time to town? Price range? You get the idea. Our goal as your real estate broker will be to find you a house or lot with as many of your "sticks" as possible. From our experience we have found that if we are able to find you a 12, 13 or 14 stick home, the buyer is very satisfied and we have accomplished our task.
Since we know you'll have no interest in looking at an "8-stick house", there just isn't any point in us wasting your time or the seller's time, looking at homes that are simply not "keepers". If we have good listening skills and you've been accurate at giving us answers to the questions on the sticks, we can take the frustration out of the home selection process and actually make that part of the purchase process smooth and efficient.
Those who have built before, know the following axiom to be true. The three rules of building are: (1) It will cost you more than you figured; (2) It will take longer to build than you figured; and (3) When it is all done... it didn't come out just exactly like you figured it would. If all three of those statements archer, you didn't do so well. If only two were true, you did about average. If only one sure with some was true, you did very well indeed. If none of the above is sure about your quest to build the perfect house... you may want to consider becoming a builder.
Buying Durango real estate is certainly something that needs professional advice. The "sticks" method of determining a buyer's true needs has proved very successful for our Team over the years. We would be happy to sit down with you and do this very exercise. It will help you to focus on what is important and it helps us in trying to match up your needs with what properties are available.
Since we know you'll have no interest in looking at an "8-stick house", there just isn't any point in us wasting your time or the seller's time, looking at homes that are simply not "keepers". If we have good listening skills and you've been accurate at giving us answers to the questions on the sticks, we can take the frustration out of the home selection process and actually make that part of the purchase process smooth and efficient.
Those who have built before, know the following axiom to be true. The three rules of building are: (1) It will cost you more than you figured; (2) It will take longer to build than you figured; and (3) When it is all done... it didn't come out just exactly like you figured it would. If all three of those statements archer, you didn't do so well. If only two were true, you did about average. If only one sure with some was true, you did very well indeed. If none of the above is sure about your quest to build the perfect house... you may want to consider becoming a builder.
Buying Durango real estate is certainly something that needs professional advice. The "sticks" method of determining a buyer's true needs has proved very successful for our Team over the years. We would be happy to sit down with you and do this very exercise. It will help you to focus on what is important and it helps us in trying to match up your needs with what properties are available.
Tuesday, May 11, 2010
Beware of Scammers on Craigslist
Have you ever been caught up in a scam before? Many of us probably have and we just headed one off before it was able to culminate. Many of you may use Craigslist as a way of buying and selling things over the Internet. We advertise many of our properties for sale using Craigslist. We are able to put pictures as well as a virtual tour of the home into our advertisement. It is surprising the amount of activity that we are able to generate in an advertising medium.
Here is how the attempted scam worked. Some bad person out there in the Internet world took the pictures from my advertisement for a property in place them in a Craigslist ad of a home for rent. The rent was especially low in the advertisement. This bad person said that they were the owner and were out of the country buying property in Africa someplace and needed to get the property rented right away. They created an e-mail account in the name of the seller@yahoo.com and had that e-mail go directly to them, the bad people. People actually showed up at the house and knocked on the door to see the property very much to the seller's surprise. One real estate broker in town called me because his son was looking for a place to rent and mentioned the property to his father who then called me about the house. The bad person's advertisement specifically says to not bother the Realtor because they're about to take the property off the market. Their goal was to get the prospective tenant to send them $900 as a damage deposit and when they had received a damage deposit, they would then send the keys to the prospect.
It is hard to believe that anyone would fall for this scheme, but people do. The especially low rent tends to be a dead giveaway but so does the traveling out of the country excuse. We immediately contacted the Sheriff's Department and it's hard to know where this will end up. Hopefully they can trace the location of the bad people through the Yahoo account.
We are very thankful that several of the potential victims contacted us anyway and all have been willing to talk with the Sheriff. These scam artists are a dime a dozen and I hope by sharing this information with you, that you won't end up being caught by something as goofy as this.
When you have Durango real estate needs, we hope you'll give the Team Lorenz a call and let us provide professional services for you.
Here is how the attempted scam worked. Some bad person out there in the Internet world took the pictures from my advertisement for a property in place them in a Craigslist ad of a home for rent. The rent was especially low in the advertisement. This bad person said that they were the owner and were out of the country buying property in Africa someplace and needed to get the property rented right away. They created an e-mail account in the name of the seller@yahoo.com and had that e-mail go directly to them, the bad people. People actually showed up at the house and knocked on the door to see the property very much to the seller's surprise. One real estate broker in town called me because his son was looking for a place to rent and mentioned the property to his father who then called me about the house. The bad person's advertisement specifically says to not bother the Realtor because they're about to take the property off the market. Their goal was to get the prospective tenant to send them $900 as a damage deposit and when they had received a damage deposit, they would then send the keys to the prospect.
It is hard to believe that anyone would fall for this scheme, but people do. The especially low rent tends to be a dead giveaway but so does the traveling out of the country excuse. We immediately contacted the Sheriff's Department and it's hard to know where this will end up. Hopefully they can trace the location of the bad people through the Yahoo account.
We are very thankful that several of the potential victims contacted us anyway and all have been willing to talk with the Sheriff. These scam artists are a dime a dozen and I hope by sharing this information with you, that you won't end up being caught by something as goofy as this.
When you have Durango real estate needs, we hope you'll give the Team Lorenz a call and let us provide professional services for you.
Tuesday, April 27, 2010
Home Buyer Tax Credits about to Expire
Today is April 27th and these tax credits will expire at the end of the day on April 30th. When we say this is the last chance we truly mean "this is the last chance". Unlike last November when the tax credits were extended, there is no talk about that happening again. While I don't recommend buying simply because of the credits, if you are a buyer, then it would be foolish to pass them up.
Just to review, there are two tax credits available. One is a first-time home buyer tax credit worth up to $8000. The other is for a repeat homebuyer and is worth up to $6500. Our team conducted a seminar on these tax credits recently and we have the entire slide presentation posted on www.BuyDurango.com right on the home page. The presentation goes through all the rules, the income limits, and filing requirements in order to obtain the credit.
Please give us a call and one of our team members me more than happy to help you in your search for Durango real estate. The Team Lorenz phone number is 970-375-7007.
Just to review, there are two tax credits available. One is a first-time home buyer tax credit worth up to $8000. The other is for a repeat homebuyer and is worth up to $6500. Our team conducted a seminar on these tax credits recently and we have the entire slide presentation posted on www.BuyDurango.com right on the home page. The presentation goes through all the rules, the income limits, and filing requirements in order to obtain the credit.
Please give us a call and one of our team members me more than happy to help you in your search for Durango real estate. The Team Lorenz phone number is 970-375-7007.
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.
Thursday, March 11, 2010
Eco-Friendly Strawbale Home
It is not often that we get a very environmentally friendly home for sale. It's even less often that we have a strawbale home to offer people looking for Durango real estate. The Strawbale home is really a post-and beam constructed home with bales of straw used as the infill between the various posts and beams. The straw doesn't hold anything up, that is, it is not weight bearing at all. It offers fabulous insulation and makes up the base upon which the plaster, stucco, or whatever covering you are using. This home, located on 3.3 acres at the very end of Meadow Road in the Rafter J. Subdivision has been a labor of love for the two builder owners. Every attention to detail has been paid with beautiful hardwood floors, granite countertops, and Ponderosa pine cut from local forests. This particular home is unique in that it actually has irrigation water which is used for the pond on the property but can also be used for a garden and yard. Built with two bedrooms, this property is ideal for a retired couple or newlyweds just getting started. Since the parcel adjoins 53 acres of open space, which then adjoins BLM land, we feel that the peaceful quiet setting could make this a great artist studio, as well.
If you are new to the area and don't know where Rafter J. is, this home would be less than 10 minutes from downtown Durango over paved roads, except for about the last 1/4 mile. The entrance to the new Lake Nighthorse will be less than 3 miles away from this home. Lake Nighthorse is currently being filled and should be ready for fishing, boating, water skiing and sailing in the year 2011.
If you're interested in getting more information, here is a link Durango real estate Strawbale home to this property’s page on my Main website, www.BuyDurango.com Priced at just $389,000
If you are new to the area and don't know where Rafter J. is, this home would be less than 10 minutes from downtown Durango over paved roads, except for about the last 1/4 mile. The entrance to the new Lake Nighthorse will be less than 3 miles away from this home. Lake Nighthorse is currently being filled and should be ready for fishing, boating, water skiing and sailing in the year 2011.
If you're interested in getting more information, here is a link Durango real estate Strawbale home to this property’s page on my Main website, www.BuyDurango.com Priced at just $389,000
Friday, February 19, 2010
Tax Credit Seminar March 18, 2010
In your continuing search for Durango real estate, I want to remind you that the federal government income tax credits will be expiring April 30 this year. In order to help you beat that deadline, Team Lorenz and Wells Fargo will be cosponsoring a one-hour seminar to be held on Thursday, March 18 at the Durango Public Library in Program Room 2. The seminar will run from 6 PM to 7 PM.
There are now two tax credits available. One is for first-time home buyers and that credit is up to $8000. The new tax credit that was added last November, is for existing homeowners who want to buy a new principal residence. That tax credit is up to $6500.
People have asked us many times about how the credit works, whether or not they are eligible, do they have to trade up, and so many other questions. We will go over all of these questions and many more at the seminar. There will be handouts available. In addition, both Lisa and Nicole will be there with their laptops so they could show you specific properties that might fit your needs. David Fountain from Wells Fargo will be there to answer questions regarding the loan process, getting you pre-qualified, etc.
Reservations are not required, but if you know you're going to come it would be great if you just drop us an email or a call and let us know so we can have a better idea of the number of materials to prepare. You can contact Team Lorenz at 970-375-7007. Rick@BuyDurango.com
There are now two tax credits available. One is for first-time home buyers and that credit is up to $8000. The new tax credit that was added last November, is for existing homeowners who want to buy a new principal residence. That tax credit is up to $6500.
People have asked us many times about how the credit works, whether or not they are eligible, do they have to trade up, and so many other questions. We will go over all of these questions and many more at the seminar. There will be handouts available. In addition, both Lisa and Nicole will be there with their laptops so they could show you specific properties that might fit your needs. David Fountain from Wells Fargo will be there to answer questions regarding the loan process, getting you pre-qualified, etc.
Reservations are not required, but if you know you're going to come it would be great if you just drop us an email or a call and let us know so we can have a better idea of the number of materials to prepare. You can contact Team Lorenz at 970-375-7007. Rick@BuyDurango.com
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
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.
Tuesday, October 20, 2009
Year-To-Date Comparative Sales Figures
As is my custom, I've compiled a complete analysis of the residential sales data for all Durango real estate (that would be for all of La Plata County) from January 1 through September 30 of this year as well as the same time period in the year 2008. In addition, my analysis breaks down the price brackets by $200,000 increments, which makes it easier to understand it allows you the public to look at your specific price range.
Overall the total residential dollar volume in 2009 versus 2008 has dropped 37.05%. The average residential sales price, however, only declined by 8.2%; while the median sales price declined 10.33%. You can see by these figures that values are holding reasonably well... it's just that the dollar volume is down significantly. Those numbers seem to reinforce our concept that Durango Colorado real estate has been, and is still a good place to invest your money.
The busiest price bracket is from 200,000 of $400,000 where 219 units sold this year compared to 293 last year. That is a decline of 25.26%. The hardest hit price range is the $800,000-$1 million price bracket. That is almost a no man's land with very few buyers closing on properties in that price bracket. Last year 17 homes that sold, this year only seven have sold and their average days on the market this year has risen to 402 days. Somewhat oddly, I would think, in 2009 more homes over $1 million and sold than in 2008; granted it's only one more than last year, but it's the only price bracket where there was an increasing number of units sold.
One of the items that I analyze is where are people buying? Durango in town? Durango rural? Bayfield in town? Or Bayfield rural? Condos at the resort? Per each price bracket, I have the answers to those questions.
My complete Excel spreadsheet...in an easy to view format...for Durango real estate sales analysis is located on my website. Click the following link to take you directly to that spreadsheet: Durango Real Estate Sales Analysis
If you would like to discuss this analysis in more detail or if you are ready to get some help in your search for Durango area real estate, please give us a call and we will be more than happy to take care of your needs. My direct line office number is 970-375-7007.
Overall the total residential dollar volume in 2009 versus 2008 has dropped 37.05%. The average residential sales price, however, only declined by 8.2%; while the median sales price declined 10.33%. You can see by these figures that values are holding reasonably well... it's just that the dollar volume is down significantly. Those numbers seem to reinforce our concept that Durango Colorado real estate has been, and is still a good place to invest your money.
The busiest price bracket is from 200,000 of $400,000 where 219 units sold this year compared to 293 last year. That is a decline of 25.26%. The hardest hit price range is the $800,000-$1 million price bracket. That is almost a no man's land with very few buyers closing on properties in that price bracket. Last year 17 homes that sold, this year only seven have sold and their average days on the market this year has risen to 402 days. Somewhat oddly, I would think, in 2009 more homes over $1 million and sold than in 2008; granted it's only one more than last year, but it's the only price bracket where there was an increasing number of units sold.
One of the items that I analyze is where are people buying? Durango in town? Durango rural? Bayfield in town? Or Bayfield rural? Condos at the resort? Per each price bracket, I have the answers to those questions.
My complete Excel spreadsheet...in an easy to view format...for Durango real estate sales analysis is located on my website. Click the following link to take you directly to that spreadsheet: Durango Real Estate Sales Analysis
If you would like to discuss this analysis in more detail or if you are ready to get some help in your search for Durango area real estate, please give us a call and we will be more than happy to take care of your needs. My direct line office number is 970-375-7007.
Tuesday, October 06, 2009
$8,000 Tax Credit..Is It Affecting Lower Priced Sales?
What affect has the $8,000 first time home buyer tax credit had on the lower priced real estate market in Durango and throughout La Plata County? As many of you know, the Durango real estate market has certainly been affected by the drop in the national economy for the last couple of years. Durango Real Estate Sales Statistics. Overall sales volume, depending on the specific area of the county and price range, has dropped roughly 40%. I recently reviewed the residential sales for the last 120 days in this County and came up with the following sales statistics. Please note this is for homes/condos only and only sales that occurred within La Plata County, so that would include Durango, Bayfield, Ignacio and the rural areas around each of those towns.
In analyzing the data it is clear that the “sweet spot” is $300,000 and under. It is interesting to note that nearly 70% of all the sales have come from homes priced at $400,000 and under. When compared to the available inventory of homes note the large difference in the percent of sales versus the number of properties available in that particular price range. The buyers are certainly gobbling up the lower end price range of homes while the higher priced properties are just sitting almost stagnant on the market. First-time homebuyers tend to buy in that lower price range, so these numbers would certainly seem to suggest that the tax credit is having an effect here for sure.
In order to truly come to a correct conclusion, I feel it would be necessary to compare the sales in 2008 versus the sales in 2009 for that same time frame and price brackets. The chart below uses all residential sales in La Plata County from June 1 through October 1 of the appropriate year.
This chart even more graphically demonstrates the impact of the tax credit on homes priced $300,000 and under. Look at the huge differences in the bottom three categories. It is clear that the product mix of what is being sold is $300,000 and under and there is very little doubt in my mind that what is driving that is the $8000 first time home buyer tax credit.
There are still opportunities out there to obtain that credit, but window of opportunity will soon be closed. Generally speaking, it takes 30 to 45 days to get a loan approval... could be done faster with A+ credit and good steady employment... so it's pretty clear that somebody needs to be under contract on a home of their choice by mid-October or they will quickly be out of luck.
Team Lorenz has two excellent buyer specialists whose only function is to work with buyers and help them find properties. If you're one of those people seeing the window of opportunity getting smaller and smaller, please give us a call today and would be tickled to get you into your first home. Buying Durango real estate can certainly be a daunting task, but with her many years of experience in successful closing of thousands of transactions, we will take you through the process and hopefully have it be into an enjoyable one. To learn a little bit about our Team, click here. Team Lorenz
In analyzing the data it is clear that the “sweet spot” is $300,000 and under. It is interesting to note that nearly 70% of all the sales have come from homes priced at $400,000 and under. When compared to the available inventory of homes note the large difference in the percent of sales versus the number of properties available in that particular price range. The buyers are certainly gobbling up the lower end price range of homes while the higher priced properties are just sitting almost stagnant on the market. First-time homebuyers tend to buy in that lower price range, so these numbers would certainly seem to suggest that the tax credit is having an effect here for sure.
In order to truly come to a correct conclusion, I feel it would be necessary to compare the sales in 2008 versus the sales in 2009 for that same time frame and price brackets. The chart below uses all residential sales in La Plata County from June 1 through October 1 of the appropriate year.
This chart even more graphically demonstrates the impact of the tax credit on homes priced $300,000 and under. Look at the huge differences in the bottom three categories. It is clear that the product mix of what is being sold is $300,000 and under and there is very little doubt in my mind that what is driving that is the $8000 first time home buyer tax credit.
There are still opportunities out there to obtain that credit, but window of opportunity will soon be closed. Generally speaking, it takes 30 to 45 days to get a loan approval... could be done faster with A+ credit and good steady employment... so it's pretty clear that somebody needs to be under contract on a home of their choice by mid-October or they will quickly be out of luck.
Team Lorenz has two excellent buyer specialists whose only function is to work with buyers and help them find properties. If you're one of those people seeing the window of opportunity getting smaller and smaller, please give us a call today and would be tickled to get you into your first home. Buying Durango real estate can certainly be a daunting task, but with her many years of experience in successful closing of thousands of transactions, we will take you through the process and hopefully have it be into an enjoyable one. To learn a little bit about our Team, click here. Team Lorenz
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.
Tuesday, September 15, 2009
Buyer Agency... Having Someone Represent You.
Navigating your way through Durango real estate can certainly be a daunting task. If you are a prospective buyer from out of the area, it's hard for you to know the benefits of the various subdivisions and building projects that we have around the County. Nearly all subdivisions will have rules and regulations, called CC&R's, that define what you may or may not be able to do in that development. Let's say that you wanted to have horses and you are told that horses are allowed in a particular subdivision. It would not be unusual to see that there might be a limit as to the number of horses that you could have. In the Shenandoah subdivision, for instance, you have to have 5 acres in order to be allowed 2 horses. No horses are allowed if you have less than 5 acres. A Buyer Specialist will be able to find out this information for you.
Many buyers have campers, motor homes or RVs that they would like to park on their property. That is the type of thing that could easily be covered in the CC&R’s. You need to be certain that you get all of those rules and regulations ahead of time. An experienced real estate broker is very vital in helping you work your way through those sorts of issues when buying Durango real estate. Our Team is set up quite a bit differently than anybody else here in town. Lisa and Nicole are Buyer Specialists whose only job is to work with buyers. They may each see 100 properties or more a month so they truly know the market extremely well. I often kid them and say: “I have a buyer who wants pink carpet in the hallway...” and I'll get a response that says they know three homes just like that. Knowing the product that is available and then matching it to your specific needs is very important.
Another important advantage of having a Buyer Specialist work for you is that you can have an advocate on your side. A Buyer Specialist does not represent the seller; they represent you, the buyer.
Having a Buyer Specialist on your side is definitely to your advantage. ”Does it cost me anything to have a Buyer Specialist on my side?” is a question I often hear. In Colorado, the seller is allowed to pay the buyer brokerage commission and in probably 99% of the transactions that is exactly what happens.
If you're at that spot where you're ready to look for real estate in the Durango area please give us a call and we will have one of our Buyer Specialists take care of you. Please Click Here to learn a little bit more about our team.
Many buyers have campers, motor homes or RVs that they would like to park on their property. That is the type of thing that could easily be covered in the CC&R’s. You need to be certain that you get all of those rules and regulations ahead of time. An experienced real estate broker is very vital in helping you work your way through those sorts of issues when buying Durango real estate. Our Team is set up quite a bit differently than anybody else here in town. Lisa and Nicole are Buyer Specialists whose only job is to work with buyers. They may each see 100 properties or more a month so they truly know the market extremely well. I often kid them and say: “I have a buyer who wants pink carpet in the hallway...” and I'll get a response that says they know three homes just like that. Knowing the product that is available and then matching it to your specific needs is very important.
Another important advantage of having a Buyer Specialist work for you is that you can have an advocate on your side. A Buyer Specialist does not represent the seller; they represent you, the buyer.
Having a Buyer Specialist on your side is definitely to your advantage. ”Does it cost me anything to have a Buyer Specialist on my side?” is a question I often hear. In Colorado, the seller is allowed to pay the buyer brokerage commission and in probably 99% of the transactions that is exactly what happens.
If you're at that spot where you're ready to look for real estate in the Durango area please give us a call and we will have one of our Buyer Specialists take care of you. Please Click Here to learn a little bit more about our team.
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