Are you thinking of relocating to Estes Park, Colorado? You are probably in research mode trying to find out more information about our little town in the Rocky Mountains. Let me point you in the direction of some helpful resources to help get you more acquainted with what Estes Park has to offer.

First, I would start with a video that the Town of Estes Park put together called “Estes Park: A Great Place to Visit, A Great Place to Live.” It highlights many of the reasons people come to Estes Park and throws in a little history in the process. You can find the video here: http://www.estes.org/pressreleases/epvideo/

The town also puts out a town profile and updates it every year. This includes a ton of demographic information and helpful numbers regarding a wide range of topics: http://www.estesnet.com/CommunityInfo/CommunityProfile.pdf.

Two local newspapers serve the area. The Estes Park News is a free paper and they have an online version at http://www.estesparknews.com. The Estes Park Trail Gazette also has an online version at http://www.eptrail.com. I would recommend visiting the newspapers often for town events, classified ads (including job postings) and news about the local area.

School information can be found on the Estes Park School District web site at http://psdr3.k12.co.us/

Most other local businesses can be found on the Convention and Visitors Bureau web site at http://www.estesparkcvb.com.

Home and Apartment rentals can be found in the newspaper classified ads or on craigslist. I recommend using the Fort Collins Craigslist site at http://fortcollins.craigslist.org/ as this typically has the most Estes Park postings. There is one company in town that is a full time long term (more than 30 days) property management company and that is Range Property Management which can be found online at http://www.rangeprop.com/.

When you are ready to start looking for real estate for sale in Estes Park, there are several sites that I would recommend. First, my web site at http://www.HomesInEstes.com has an easy to use map based search with all the properties for sale. Be sure to also check out the blog for updates on the local market statistics, plus tips and tricks to buying and selling real estate in Estes Park.

Over the last week, the amount of inventory (real estate available for sale in Estes Park, Colorado) has been brought up in conversation several times. Each time, the common feeling with people I talk to is that available homes and condos for sale seem to be climbing at an alarming rate.

I would recommend caution in saying that inventory is up across the board especially at this time of year. During the spring of the year, Estes Park typically sees many properties come available for sale in anticipation of the busy summer tourism season.

The best thing we can do is test the level of inventory is look at the stats. Unfortunately, our local Multiple Listing Service does not allow us to look back at a certain date and calculate how many properties were “active” on the market at that time. Personally I have been tracking Actives for almost 2 years now. Therefore, I am finally able to compare the amount of active inventory from one year to another and from month to month.

Currently, in the 80517 zip code, we have 196 homes, 105 condos, and 103 pieces of vacant land available for sale. At this time last year, we had 180 homes available, 116 condos, and 93 vacant land available. In summary, there are 404 active listings in Estes Park compared with 389 at this time last year. This translates into a 3.9% increase in inventory. In my opinion, a 3.9% deviation in a real estate market as small as Estes Park is hardly a reason to be worried.

For those of you who follow this blog regularly, you already know that I post all sorts of statistics each month on my real estate blog. You can check out my real estate market statistics page (best viewed in Firefox) for all sorts of graphs and charts or you can view an archive of my monthly statistics blog posts for additional commentary each month.

For those of you are more visual, above is a chart showing the inventory levels of real estate in Estes Park over the past 2 years.

In my opinion as a real estate agent, Zillow.com can be a helpful tool for consumers for ball-park property valuation but should not be relied upon to provide exact opinions of value. Read the small print on Zillow.com and they will tell you the same thing. Check out their FAQ page.

The reason zillow is unreliable for property valuation is that no algorithms or mathematical formula can accurately predict a property’s value especially in a mountain community such as Estes Park where properties can vary tremendously. For instance, it is impossible to compensate consistently for many factors that influence property value including quality of construction, quality of materials used, views, privacy, neighbor quality, neighbors pets, nieghbors recreation habits, paint color, sun exposure, bright or dark interiors, smells, future events, room flow, landscaping, pests, and more.

Zillow.com discloses these variances on their website in specific markets. Unfortunately, they do not disclose the variance for communities as small as Estes Park, Colorado. In Denver, in a location where the majority of homes are in subdivisions with consistent values, the zestimate (zillow’s estimate of value) was off more than 10% of the actual selling price more than 55% of the time. Over all, zestimates have a history of having an 11.6% margin of error in Denver. See this page on zillow.com talking about accuracy.

As a real estate agent, I wouldn’t be in business very long if I estimated property values with an 11.6 percent average margin of error. Do yourself a favor and get the opinion of a local real estate agent or appraiser to establish market value. Otherwise, you run the risk of making very important decisions based on inaccurate data.

The environment surrounding the national, regional and local real estate markets is converging into a perfect storm of buying signals for people who are looking to buy real estate in Estes Park. You’ve heard it before from real estate agents from time to time across the country that “now is the time to buy” without much to back up that statement. Right now, I believe that now is the right time to buy and here are several reasons why you should be looking to buy Estes Park real estate in the next few months.

Low Interest Rates

In March the Federal Reserve will stop buying mortgage-backed securities which was a part of the stimulus programs congress passed several months ago. The Fed has essentially been buying down mortgage rates to make real estate more affordable. Without the Fed buying mortgage-backed securities, rates will rise until they are attractive to investors once again. Where they will end up has been speculated to be between 5.5% to over 7%, depending on who you talk to.

A rise in interest rates is bad for people who need to rely on a mortgage to purchase a home. For example, if you were to buy a $300,000 home and had 20% as a down payment, an increase from 5% rate to a 6% rate would increase your monthly payment from $1,288.37 to $1,438.92 (an 11.7% increase) excluding taxes and insurance.

High Inventory

“Absorption rates” is a real estate industry term that describes the relative health of the real estate market. The absorption rate describes how fast the current inventory levels are projected to sell based on how many sales actually happen per month. Nationally, it is considered a buyer’s market if you have more than 6 months of inventory. Right now, we have over 13 months of inventory available in the Estes Park real estate market. Here is another post I wrote about absorption rates in Estes Park.

Being in a “buyer’s market” makes it easier to be a buyer. Basically, buyers are in more control during negotiations because of the increased inventory to choose from and less competition from other buyers. Therefore sellers are more likely to be more flexible.

Home Buyer Tax Credits

Both the first time home buyers tax and the existing homeowner tax credit will be expiring in the next few months. First time buyers can get $8,000 and existing homeowners can get $6,500 if they follow the rules correctly. If you are a first time home buyer, you must not have owned a home in the past 3 years and must be under contract to purchase a home by May 1st in order to qualify. Existing home buyers need to purchase a new primary residence and have to have owned your previous home for 5 years. You can buy a smaller home or a larger one as long as the new home will be your primary residence.

While it is my opinion that these tax credits should not be the ONLY reason you make a move, if you were already thinking about moving, then why not take advantage of the free money? If you are looking for more information on the tax credits, here is a great blog post by Jay Thompson filled with more information on taking advantage of the tax credit.

Bounce in Median Sale Statistics

I reported in my most recent monthly stat report that the median price of homes sold in Estes Park has increased in each of the past two months. While I’m not guaranteeing this was the bottom of the market, I will say it is a very solid step in the right direction for homeowners in Estes Park. If you are a buyer sitting on the sidelines waiting for our prices to bottom out, this might have been it.

Great Deals Available RIGHT NOW

• Half finished cabin and separate lot for $150,000 in Glen Haven
• Luxury home on 10 acres has reduced its price over $500,000
• 2600 square foot home with views in a great neighborhood for under $300,000
• Brand new 4 bedroom condo with 2200 square feet for $429,000

These aren’t the only deals out there. If none of these trip your trigger, contact me with what your ideal property is and we can see what deals are available.

Increased Buyer Activity

Since the beginning of the year, our office has seen a flurry of activity including several offers and excellent showing activity on all of our listings . January numbers were very solid with single family homes selling twice as many this year as sold last January.
Also, all of the sale prices in January were higher than the median value of homes sold in the last 12 months in Estes Park. That is very good news for anyone trying to sell a home in Estes Park; it’s even better news for those trying to sell a luxury home in the area.

Pent Up Demand

I hear plenty of talk about “pent up demand” in our market place. Personally, I know several clients who are waiting for the market to show a solid and unmistakable rebound before they will be ready to purchase real estate. Other potential buyers are waiting for the stock market to get back to where it was before the “recession.” The problem with waiting is that the first-movers are the only ones that will get the best deal. Everyone else will be buying after prices have already appreciated some.

Summer Weather is Just Around the Corner

Longs Peak and Mount Meeker from Lily LakeClick for Full Size

Summer is coming, and you know you want to be in Estes Park during the summer. Let’s face it; summer in Estes Park is why everyone wants to live here. Highs in the low eighties, plenty of sunshine, beautiful snow-capped peaks, a gentle breeze. Just thinking about it makes me sad that there is still snow on the ground. If you buy now, you’ll have plenty of time to get the property ready so you can sit back and relax as soon as summer gets here.

Purchasing Real estate needs to be a long term, focused decision. The days of massive short term appreciation are long gone. Looking back at the history of Estes Park real estate values, we are known for long term steady growth without major downswings or upswings. In light of the recent volatility in real estate across the country, long term steady growth rates sound very appealing. Are you going to let this perfect storm pass you by?

***Thanks to millicent_bystander for the Estes Park storm photo via Flickr.

1. Cash will most likely help you negotiate a lower price, however, just because you have cash does not mean you will be able to walk away with a property for 75% of its value
2. Seek out the best locations. The Estes Park Real Estate market places high value on mountain views and river property.
3. If you see a property that looks like a good deal, act quickly because someone else is thinking the same thing. Even when the average time on the market is 4-6 months in Estes Park, properties that are priced extremely well may disappear in a matter of days with multiple offers.
4. When evaluating properties, know your limits. Everyone knows the more work you can do yourself, the more money you’ll save. However, when you plan on re-selling the property, only high-quality work results in the highest resale value.
5. Trust your local advisors. They are in the trenches on a daily basis and they will save you money. Your cousin who “knows a guy” doesn’t know what he is talking about.

This afternoon, I had a great conversation about the Estes Park real estate market with Rich Flanery of Cherry Creek Mortgages (a local Estes Park Mortgage Broker who calls himself a “loan consultant” – I like that). In our conversation we talked a lot about where mortgage rates are, where they’ve been and where they are headed in the near future. Rich had so many good things to say, that I asked him to send it to me in writing so I could share it with all of you!

Life is all about second chances. If you are in the market for a new home it appears you may have been given a second chance. Just a few weeks ago, mortgage rates were at historical lows. However, in just two short weeks, mortgage rates have shot up dramatically. The main reason for this is the prospect of future inflation because of all the money the Federal Government is printing in the form of Treasury bills, notes and bonds. But I anticipate that we will see a reversal in this rate trend and will watch rates move lower. A word of caution, it is unlikely that we will see rates moves to the levels we were at just a few weeks ago.

Currently homes have never been more affordable, first time homebuyers are eligible for an $8,000 tax credit and rates should begin to slide back down again. If you are in the market than you have a second chance at very affordable housing. This window won’t last long as current economic indicators reflect that rates could start moving higher as we move towards the end of the year. Rich Flanery CMPS® Certified Mortgage Planner

Feel free to contact Rich with mortgage questions about Estes Park. I am sure he would be happy to help. Unfortunately, he tells me he really doesn’t have a crystal ball, though.

If you ARE interested in pursuing Estes Park real estate, now is the time to do it. Give me a call or email and we can formulate a plan for you to take advantage of one of the best real estate buying environments in a long time.

A new addition has been placed in the sidebar to the right that connects you to my Facebook Fan Page for Real Estate in Estes Park.

Click on the facebook button in the sidebar on my blog. Otherwise you can get there just as easy by going to http://Sambasel.com. On the page, be sure to click the “Become a Fan” link!

This new page on Facebook will allow you to get an inside look into Estes Park Real Estate right in your Facebook News Feed. On the page, you can interact with me and other fans sharing stories, asking questions, and following along with interesting tidbits about Real Estate in Estes Park and the reasons people choose to live here.

I hope to see you on Facebook soon!

Everyone knows that Real Estate agents have a nasty habit of embellishing details of the properties they are describing. The agents in Estes Park are no exception.

I got a kick out of this Youtube video and thought I would share it with you.

Properties in Estes Park can be completely different from one property to the next. It helps to have someone with an inside track who knows the area. Next time you are wondering how accurate the descriptions are on homes for sale in Estes Park, give me a call and I will be happy to give you the “no frills” version.

There was an article in the Estes Park Trail Gazette today by Juley Harvey explaining all the benefits available to first time home buyers in Estes Park. I thought it was a great article explaining the many benefits available to first time home buyers and low income home buyers for our local area.

Some of the Highlights include

• First time home buyers (anyone who hasn’t owned a home in the last 3 years) can get a $8,000 tax credit if they buy a home now through the end of November. Thats $8,000 cash in your pocket next spring when you do your taxes.
• A Down Payment assistance program is available for a loan of up to $10,000 at 2% interest for 10 years through the Estes Park housing authority.
• There are two properties in Estes Park that have a mortgage assistance program for qualifying applicants. This program does not exclude you from the down payment assistance or the $8,000 tax credit. One property contains 1 bedroom condos and the other contains 2 and 3 bedroom condos.

For more information or questions about any of these programs, contact me or contact Rita Kuralja at the Estes Park Housing Authority and let her know I sent you.

Here are the 5 Myths:

1. Sellers today are desperate
2. Don’t buy before prices have bottomed
3. You can’t buy a home unless you have 20% down
4. Now’s the absolute worst time to sell
5. Before you refinance, shop around

Does this apply to real estate in Estes Park?

I am definintly seeing these myths permeating the attitudes of buyers and sellers the local Estes Park real estate market.

1. The majority of sellers in Estes Park are not desperate. In the video, Barbara Corcoran mentions the ratio that 1 in 10 Sellers are “desparate.” However, I would venture to say the ratio is more like 1 in 20 (or more) Sellers in Estes Park because of the large presence of 2nd home and vacation home owners. These people are usually financially capable of waiting for their price. Of course, there are properties available that are more desperate than others. (As a side note, I do keep a running list of distressed homes for sale. Contact me for more details.)
2. Prices in Estes Park are not declining as you can see in my market statistics commentary on this blog. In Estes Park, we are seeing a decrease in demand because people are fearful of prices dropping due to all the negative hype in other markets. I believe there is a lot of pent up demand waiting to buy property. As soon as demand starts to pick up again, I think we are going to see a huge jump in the number of homes sold in the next couple of years.
3. This is also true for Estes Park. While you may get the most favorable terms with 20% down, having less to put down does not eliminate you from buying a home. My recommendation is to talk to a mortgage broker and/or your bank about what programs you may qualify for before ruling out a home purchase.
4. While it may be difficult to sell a property in Estes Park right now, it is not impossible. Buyers are still buying property but they are only looking at property where they know they are “getting a good deal.” The most important thing in this market is to be a better value than your competition. In other words, price your property correctly or you may be waiting a very long time to sell. You need to be the most attractive home at the best price to get any attention from buyers.
5. My opinion is to go ahead and shop around but don’t forget about your current bank when considering a refinance. Be sure to weigh all costs involved including closing costs and other fees. Also be careful about how many inquiries you make that may count against your credit score.

Thanks to Ines Hegedus-Garcia of Miamism.com and Agent Genius Fame for the video. See her original post here.