2009 had its challenges but comparing 2008 to 2009 we did see a steady increase in sales and a slight increase in median home price.

Click here to see PDF all of 2009 market statistics

Click here to visit DAAR website with all statistics

With contracts on my desk, calls awaiting answers and buyers looking for property in the middle of winter I’d say were are off to a great start for 2010!

Call or email us with questions you might have.

Feel free to post comments on this blog.

We are here to help!

Shaheen Hangval
Broker Associate/EcoBroker with Blue Ribbon Properties

835 Main Ave. Suite # 214
Office: 970-247-8388 Fax: 970-247-8360
Shaheen’s Cell: 970-769-2441

Here’s what our Realtor Board President has to say about the Durango Real Estate Market:

“In real estate, it has been one of the most turbulent years in recent history. The first nine months showed a 30% decline in transactions, and the fourth quarter to date is showing a 13.6 % gain in transactions. This reversal has been a long time in coming, as 2009 is the fourth straight year of the down market, but it is with hope that we begin 2010.

The market should improve in the first half of 2010 as we work against low results from last year, coupled with the general consensus that the worst is over and the market is improving. The extended and expanded first time homebuyers credit and the other new incentives should help to propel the market to new heights in the first half. If the economy continues to expand and consumer confidence gains strength, we will find 2010 to be a solid year in real estate.”

Cheers! Here is to 2010!
–
Claudia Williams
Owner/Ecobroker/Exchangor
Blue Ribbon Properties
835 Main Ave #214
Durango, CO 81301

970 247 8388 (office)
970 749 3555 (cell)
970 247 8360 (fax)
www.blueribbondurango.com

Check out my blog
The Scoop on Durango Real Estate
www.blueribbondurango.com/blog

When looking for a home, anyone can call the phone number on the sign in front of the home for sale.  The person who answers that phone will most likely have useful information about the property but it is important to keep in mind the person listing the home was hired to work for the Seller, and is striving for the Seller’s best interest, not the Buyer’s. 

The internet is also a great resource for previewing properties.  However the internet “MLS” websites are updated on a monthly basis so by the time you find the property you want to look at, in many cases it is already under contract or sold.  A licensed Realtor can provide current listing information for available properties on a daily basis.

The benefit of having a Buyer’s agent represent you is to have a qualified agent working as an advocate for your best interest.  We can help you arrange financing, assist in negotiating a competitive purchase price, manage the paperwork, going over all documents with you one on one, provide useful sold & listed comparables, look up important history and or tax records, remind you of important deadlines, and handle the details to ensure a smooth closing.  

The commission to pay for our services is usually paid by the Seller, not by you.  Even most FSBO (for sale by owner) Sellers are willing to pay commissions to an agent who represents a buyer for their home.  In most cases you have the opportunity to utilize full representation on your behalf at no additional cost to you!

For more information on Buyer’s agent feel free to contact us at Blue Ribbon, we are here to help!

Have a great weekend!

Shaheen Hangval
Broker Associate/EcoBroker with Blue Ribbon Properties

835 Main Ave. Suite # 214
Office: 970-247-8388 Fax: 970-247-8360
Shaheen’s Cell: 970-769-2441

Going GREEN!

 
If you are interested in saving money, remodeling and improving your carbon footprint, here is some information to get you on the right track. A citizen based agency, Environment Colorado, is an advocacy organization whose goals are to protect the environment and public health by instituting compliance with mandates. In the state, construction practices are upgrading methods to suit better lighting, heating, cooling systems and environmentally habitable insulation.
Recently, congress passed an economic stimulus package that promotes energy efficiency for home and business owners. The American Recover and Reinvestment Tax Act of 2009 include incentives for upgrading to more eco-friendly/sustainable methods of energy and insulation. The move to a greener lifestyle will build on the change to healthier methods of building products, home remodeling and renovation.
Some alternatives to insulation include: cellulose, which is becoming a popular new green insulation material. It is chemically treated to reduce levels of mold. Cotton fiber is made from recycled batted material and is then treated to be fireproof. These options have been shown to reduce annual energy costs in the home by 25 percent. These asbestos alternatives allow for a clean, healthy home, free of health damaging materials.
With the environmental consciousness of American citizens and the world growing at a rapid rate, citizens of Colorado are surely doing their part to nurture their mountains, natural springs and fresh air.

Claudia Williams
Owner/Ecobroker/Exchangor
Blue Ribbon Properties
835 Main Ave #214
Durango, CO 81301

970 247 8388 (office)
970 749 3555 (cell)
970 247 8360 (fax)
www.blueribbondurango.com
Check out my blog
The Scoop on Durango Real Estate
www.blueribbondurango.com/blog

A great question and the answer can change on a weekly basis.

In the past 2 weeks here are some of the things I have seen in “the real estate world” of Durango.

I have seen a lot offers come in and out of our office.  Some prices made on these offers were much lower then the listing price, not many (if any) seller’s were willing to drop their prices dramatically.  The offers that negotiated back and forth did go under contract working toward closings.

Interest rates are still low but slowly on the rise, this is why I feel people are starting to buy.  People want to lock in a low interest rate…a wise choice in my book.

Something else I have noticed is the buyers “waiting until the prices go down more” have lost the houses that were top on their lists.  More and more buyers are finding the good deals that are currently on the market are starting to go under contract and close.  The majority of the homes that are selling are under $400,000.

* My advice to buyers…

#1  If you know the house you want, go for it, don’t wait or you might lose your opportunity.

#2  Be in close contact with a local lender to make sure you will have solid financing before you make your offer.

#3  Make a decent offer with a little wiggle room for negotiations.  Get the house you want at a good price but more importantly, a good interest rate.  Your Realtor can give you more information on why this is important.

If you have more questions or would like more info on this Blog, feel free to comment or call our office.

Thanks for reading!

Shaheen Hangval

Blue Ribbon Properties

I found this helpful bit of advice on www.goswap.org, one of the internets most popular trade and exchange websites. We couldn’t agree more.

“Unofficial guide and practical advice with dirty tricks on selling or swapping a house when nothing is selling, or call it what you will.

Selling in this market takes extra effort. This guide is intended to give sellers some sense of direction where this effort should be directed to increase chances of having their property sold or swapped. Obviously there is an infinite number of ways to market a home for sale, but I emphasize some of the most productive ways plus throw in a few tricks of the trade. Permanently swapping homes is one of the best options in which sellers cannot reduce the price drastically. Trading homes by owner will also save sellers on the realtor’s commission.

1. Advertise, advertise, advertise!

Just like location, location, location is important in real estate, advertising is by far one of the most important factors (yet frequently overlooked) when it comes to selling a home in a slow market. 

UPDATE: As of late 2008, after enactment of the new Buy and Bail law, it is becoming less effective to advertise a property for sale, except if:

•           The property is priced considerably below the current market value

•           The seller is offering substantial incentives, such as seller financing

We strongly believe that pursuing a permanent exchange will likely yield higher chances of finding a buyer than trying to sell via conventional methods. Therefore, we suggest to avoid spending much money on newspaper ads or typical FSBO or MLS websites and directing marketing efforts on finding a real estate match instead.

Take many fresh quality pics of your house. Then choose the ones that can inspire or make your listing stand out and submit to all of these and other sites: http://craigslist.org  http://owners.com  http://allthelistings.com  http://realtor.com (once you submit to one of the MLS listing services such as http://iggyshouse.com make sure your listing appears on realtor.com). One way to simplify the process is to use our site http://GoSwap.org as the base and most detailed listing with up to 15 pics, then use the listing sharing tools at the bottom of your goswap.org listing to submit the same info to other sites. This reduces redundancy as you will then simply copy and paste the HTML code we provide on many sites that accept it including pics. Make sure to write extremely descriptive and long titles, description, and fill out most fields on all sites. Listing on GoSwap.org is also beneficial as your property will automatically be submitted to http://trulia.com (quickly becoming the #3 website in real estate), Google Base, and http://homesbyowner.com

The goal is to inspire buyers and make them want to click on your listing. Most swappers, myself included, would not reply to emails sent from people without their own home listed because if someone is not serious enough to spend some time describing what he/she has, what are the chances this seller will proceed with a swap? Many will also skip listings with no pics. A picture is worth a thousand words, remember?

Go one step further and make a short video if you are a techie. In fact take extra steps on any of the points mentioned here–be creative.

2. MLS, MLS, MLS!

List in the Multiple Listing Service but avoid listing with what I call a “sleepy realtor” who simply submits your listing to the MLS then waits until it sells through other realtors so that he/she can then cash your commission check to pay for his sleeping. Either find an ACTIVE realtor in YOUR AREA (not a national firm) or, better yet, submit your listing to the MLS yourself, then reduce the price by the amount of the commission you will save. There is at least one FREE service at http://iggyshouse.com , but make sure that this service belongs to your immediate area MLS board. For example, Iggyshouse.com does not yet cover all parts of Florida. Even though they will submit your listing, it will appear in the closest MLS system, which is not good enough. You want your property to be listed in your area MLS so that local agents can see it. Do not forget to set a commission. I suggest at least 3%, otherwise realtors will not show or mention your house to prospective buyers.

3. Be creative, be creative, be creative

and look for creative, alternative, and cost effective ways to promote your sale. So advertising your house for swap on this website is one of the creative ways, but open up your other options. Describe all your possible swap combinations, then search our site for people who want to swap for your location and email all of them about possible trade. Go a step further, and email all owners who indicated they will consider swapping for ANY LOCATION, then please do not stop even at that.

Look in your local craigslist.org real estate wanted ads section and see if anyone might want your property. There are many other great services that cost next to nothing. The ultimate goal is to get as much foot traffic through your front door as possible. Keep in mind that nowadays internet has become a vital tool used by buyers to shop for real estate. So online traffic to your listing plays the same role as the physical home showings. It is a pure numbers game: the more people know about your house for sale, the higher the chances of your success in selling it.

4. Open, open, open!

Hold open houses every weekend, even if just a few people stop by. Remember, you only need one buyer! Constantly advertise your property and open houses in local papers, community forums, craigslist.org,  GoSwap.org (of course) and anywhere else you may think of. Use your own imagination to get some traffic through your door. If you are really desperate, consider very desperate measures, such as contacting a local newspaper reporter to do a story about your house not selling even at a greatly reduced price. This would certainly bring some attention.

5. Price, price, price!

Price your property slightly below of what you think the market price is. Remember that in a low market no one really knows what the actual market price is, but the only price that matters is the one that gets your property sold. No, I am not implying selling short (less than you paid). Buyers will only consider buying from you if THEY THINK your price is LOW, so make them think your price is low. One trick of lowering the price without actually lowering it is by having buyer pay for most of the closing costs, while reducing your asking price by that amount. So, say the house is listed at $250K and seller’s closing costs will typically run $5K, then lower the price to $245K and when it comes to signing the contract insist that buyer pays for closing because the price is great. Do the same by listing in MLS yourself and apply the savings in commission towards the ASKING price of your home. A 3% commission savings equals $7,500, then your new asking price should be around $237.500 ($250K – $5K – $7.5K = $237.5K) Here you effectively reduced your asking price by $12.5K, while you would end up with the same amount at closing.

Remember, one of the most effective ways to get people to look at the property is to attract them with a low price. Think about it this way: if your house was for sale for a hundred bucks, the entire nation would probably stand in line to write you a check. Well, find that magic number that seems attractively low to buyers, yet acceptable to you. Forget about the era of making huge profits in real estate.

6. Follow up, follow up, follow up!

Create a new folder called “prospects” in your email program and save all your listing related emails there. Keep a detailed log of all callers, too. Keep in touch with all your previous enquirers with any updates or changes in price. If you get a lowball offer, here’s another of my dirty tricks. Contact all your prospects saying you have an offer while indirectly inviting them to participate in a bidding war. I am not a psychologist, but  it appears people get especially excited when something they consider buying is becoming popular and wanted by other people. In fact, this is precisely why this whole bubble thing popped up–flipping homes has gotten too popular. Someone once said, if even homemakers get involved in buying real estate, it’s time to get out as things are just about to get ugly and they sure did.

7. What to do if nothing happens?

If you have done everything above and are still sitting in your living room and scratching your head, then repeat some steps above.

If it still does not sell, consider the following alternatives. Can you owner finance? If you have only a small balance on your mortgage, then odds are in your favor and you could potentially set the down payment close to the amount of your mortgage balance, so that the balance is paid off and the buyer owes you about the same as your equity. You could create a balloon mortgage where the buyer will be required to pay off the mortgage early, say in 5 years, if becoming a bank and carrying a loan for 30 years is not your cup of tea. One great site to advertise your owner financed real estate FREE is http://SellFinanced.com“

The key is creativity and hard work. I do believe if both the homeowner and realtor work together in getting as many of these steps done as possible it’s just a matter of time before your property will sell.

Call me to discuss, Claudia Williams, Exchangor, Realtor, 970 749 3555.

P.S. Thank you www.goswap.org for this great bit of advice.

So how does a real estate exchange or trade really work? It’s essentially a permanent house swap, you buy mine, I buy yours. You balance the values with equity, loans or other assets, or you can do what is called a three way trade and involve a third party to take the house. It can become confusing and definitely involves creativity. In a tough market like this it definitely helps to be creative and is almost a must to get the job done.

Goswap.org has a great little interactive tool to determine if you are a good canditate for property trade. It just takes a few minutes and you will have your result right away. Call me if you have any questions.

Can I trade my property? What are my chance? Find out by clicking here.

Here is a video of an inspiring story of two families in Florida that successfully traded their homes, click here.

I am a NCE (National Council of Exchangors) certified Equity Marketing Specialist, meaning I am trained in exchanges and go to regular exchange marketing meetings. I have contacts and resources to help you market your home for both sale and trade and have successfully completed trades. Stay tuned for more trade and exchange info.

Claudia Williams

Exchangor

970 749 3555

claudia@blueribbondurango.com

If you are not in LaPlata county and would like Regional Housing information for your county check with your local real estate association.
Thanks!

~Shaheen Hangval

What is low-balling and why do people do it?

Low-balling can happen during any type of market but typically occurs more frequently in a Buyer’s market. A Buyer finds a home they would like to buy and then offers a much lower price than would usually be acceptable, simply because they believe that the Seller is only selling at this point in time because they must be desperate. The “why people do it” is obvious: they hope to get a smoking deal on their dream home/second home/investment, etc.

This sometimes works for Buyers, in the right time and place, but not always. Many times, this technique of offering can be an insult to the Seller, if not handled carefully.

I’m not totally convinced that this method works in the Durango real estate market. I’ve been hearing from other Realtors in the area that their numbers of Buyers who are looking and offering have gone up recently (which typically happens at this time of the year)–but many Buyers are making low-ball offers only. Durango real estate is somewhat immune to the current “necessity” to sell, mainly because many people invest in second homes here and have plenty of money to keep rolling along until they get the price they want. The “DOM” or Days on Market, can sometimes be a good indicator of how ready a Seller is to sell, but this can also be tricky.

I have dealt with a number of Sellers who say they’re in no hurry and will wait until the right Buyer comes along (and of course, by “right Buyer, they mean the right price). Their DOM may be high, but there is no pressure to hurry and settle for less.

One thing your Realtor can help you research, that may clue you in to a Seller’s “need” to sell is the original listing price in comparison to where it’s currently listed. For example, if a home goes on the market in January at $699,900 and was lowered to $650,000 in February and then to $615,000 in March, you may be looking at a situation where the Seller is needing to get out from under this house ASAP.

Of course, as with anything, this may not always be the case, which is why it’s always a good idea to have a Realtor who can help determine, tactfully, a Seller’s motivation to sell. In many cases, Listing Agents are authorized by their Sellers to advertise the Seller’s willingness to “look at any offer”, and they will do so within their real estate community. More importantly, your Realtor can help you analyze the current market data to determine whether that home you’re itching to buy is really worth what the Seller is asking, or if a lowball offer would be appropriate.

See you online!

Claudia

A house that “sparkles” on the surface will sell faster than its shabby neighbor…

…even though both are structurally well-maintained.

From experience, REALTORS® also know that a “well-polished” house appeals to more buyers and will sell faster and for a higher price. Additionally, buyers feel more comfortable purchasing a well-cared for home because if what they can see is maintained, what they can’t see has probably also been maintained. In readying your house for sale, consider:

• How much should you spend

• Exterior and curb appeal

• Preparing the interior

• How much should you spend! (Not a typo!)
  

In preparing your home for the market, spend as little money as possible. Buyers will be impressed by a brand new roof, but they aren’t likely to give you enough extra money to pay for it. There is a big difference between making minor and inexpensive “polishes” and “touch-ups” to your house, such as putting new knobs on cabinets and a fresh coat of neutral paint in the living room, and doing extensive and costly renovations, like installing a new kitchen. Your REALTOR®, who is familiar with buyers’ expectations in your neighborhood, can advise you specifically on what improvements need to be made. Don’t hesitate to ask for advice.

Maximizing exterior and curb appeal

Before putting your house on the market, take as much time as necessary (and as little money as possible) to maximize its exterior and interior appeal. Tips to enhance your home’s exterior and curb appeal:

• Keep the lawn edged, cut and watered regularly.
• Trim hedges, weed lawns and flowerbeds, and prune trees regularly.
• Check the foundation, steps, walkways, walls and patios for cracks and crumbling.
• Inspect doors and windows for peeling paint.
• Clean and align gutters.
• Inspect and clean the chimney.
• Repair and replace loose or damaged roof shingles.
• Repair and repaint loose siding and caulking.
• In Northern winters, keep walks neatly cleared of snow and ice.
• During spring and summer months consider adding a few showy annuals, perhaps in pots, near your front entrance.
• Re-seal an asphalt driveway.
• Keep your garage door closed.
• Store RVs or old and beaten up cars elsewhere while the house is on the market.
• Apply a fresh coat of paint to the front door.

Maximizing interior appeal

Enhance your home’s interior by:

• Giving every room in the house a thorough cleaning, as well as removing all clutter. This alone will make your house appear bigger and brighter. Some homeowners with crowded rooms have actually rented storage garages and moved half their furniture out, creating a sleeker, more spacious look.

• Hiring a professional cleaning service, once every few weeks while the house is on the market. This may be a good investment for owners who are busy elsewhere.

• Removing the less frequently used, even daily used items from kitchen counters, closets, and attics, making these areas much more inviting. Since you’re anticipating a move anyhow, holding a garage sale at this point is a great idea.

• If necessary, repainting dingy, soiled or strongly colored walls with a neutral shade of paint, such as off-white or beige. The same neutral scheme can be applied to carpets and linoleum.

• Checking for cracks, leaks and signs of dampness in the attic and basement.

• Repairing cracks, holes or damage to plaster, wallboard, wallpaper, paint, and tiles.

• Replacing broken or cracked windowpanes, moldings, and other woodwork. Inspecting and repairing the plumbing, heating , cooling, and alarm systems.

• Repairing dripping faucets and showerheads. Buying showy new towels for the bathroom, to be brought out only when prospective buyers are on the way.

• Sprucing up a kitchen in need of more major remodeling by investing in new cabinet knobs, new curtains, or a coat of neutral paint.

We’d be happy to come by and offer our modest opinion on how make your house appeal to the highest number of people, thus increasing your chance of selling at full price in the shortest amount of time.

Even better…

Get a free – no commitment – market valuation and price analysis for your home. That means based on other sale in the area and what is currently for sale in your neighborhood we will help you determine a realistic market value that will ensure a sale of your house at top dollar.

Check out this video: Maybe it will remind you to enjoy your day-to-day!

Claudia Williams
970 247 8388

P.S. Search the MLS at http://www.blueribbondurango.com/mls.php or email us to receive listings as they hit the market

P.P.S. Determine the value of your home, call me today