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.

In a real estate market where demand for home sales has slowed considerably and inventory is rising, selling your home can be an emotionally exhausting experience. It is easy to blame others for why your home is not selling and most times, that blame falls on the real estate agent.

In the current Estes Park Real Estate market, I have seen many listings sit and wait for months with no action. Some listings expire, a few are withdrawn, and some drop their prices to try to gain more attention.

Many of these listings change hands from one agent to the next assuming the next agent will be more effective at selling their home.

There are two ways to look at this change in real estate agents. Getting a fresh agent to represent you and your property can sometimes be a positive change in scenery. New pictures, an updated content description and fresh excitement from the new realtor’s attitude sometimes results in the property selling soon after the change.

On the flip side, all the hard work and effort the first realtor put into the listing will go down the drain. There is nothing worse for a real estate agent than to see their expired listing come back on the market with another realtor at a price they recommended to the seller in the first place.

If you are going to switch real estate agents be sure that you are doing so for the right reasons. I’ve heard stories of agents being dropped because the seller just needed a “change of scenery.” Be sure to look at things objectively to find out if the problem may be outside of the agent’s control. Also be cautious of unreasonable promises from other agents trying to gain your business. If it sounds too good to be true, it probably is. Selling real estate in this market is a tough business, especially in Estes Park, Colorado.

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.

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!

Real Estate jargon can be confusing to the average real estate buyer purchasing a property in todays real estate market. Fortunately, Estes Park has relatively few distressed properties compared to the rest of the nation. However, we are not exempt from troubled properties and it is good for buyers and sellers to understand the real estate terms associated with these troubled properties.

Many buyers and sellers (and even some real estate agents) have trouble differentiating between a short sale, REO property and the different stages of the foreclosure process.

Short Sale

A Short Sale occurs when the seller of a property owes more than the property’s market value. A short sale requires bank approval to forgive the difference between the purchase price and the loan balance. Typically, short sales are not approved without proof of hardship to the seller causing the sale of the property. Bank approval for a short sale can take anywhere from 2 to 6 months to process.

Short Payoff

A Short Payoff occurs when the purchase price of a property is less than what is owed, however, the difference is not forgiven. A settlement is arranged for the seller to make up the difference to the bank through an unsecured loan.

Foreclosure

The foreclosure process is the process by which a bank takes title to the property as a result of non-payment of debt on the part of the property owner. The process begins when the bank serves the property owner with a Notice of Election and Demand. The bank then schedules a public auction to take place 110-125 days after recording the Notice of Election and Demand. Check out this web site for more information on the foreclosure process in Colorado.

REO Property

REO stands for “Real Estate Owned” and is the same thing as a bank owned property. The foreclosure process has run its course and the bank now owns the property.


Are you looking to purchase a distressed property in Estes Park? Contact me for an up to date “Distressed list” of bank owned homes, short sale properties and fixer uppers.


Photo Credit: Jeff Turner

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.

Establishing market value of real estate in Estes Park, Colorado is not an easy task. I’ve talked about this matter before in The Art of Pricing Your Home To Sell. Market Value is defined by what a willing and informed buyer and a willing and informed seller agree upon. There are many factors that influence true market value and unfortunately, homeowners can easily be swayed into thinking their house is worth more than it is.

Remember, true market value is NOT influenced by:

• Previous Sale Price
• How much you owe against a property
• The number of visiters coming to Estes Park each summer and how much they spend
• Time on the market
• County assessed value
• Number of elk or deer that frequent your yard
• The amount of money spent making improvements
• The stock market
• Gas prices
• Your Texas cousin’s opinion (even if they are a real estate professional)

If you are looking to see what the market value of your property in Estes Park is, read this blog post and then contact me and I’ll walk you through it.

Mortgage rates are down across the board. While you can find out why on any major financial news portal, you may be a little confused as to what it means to someone trying to buy a home or condo in Estes Park, Colorado.

FREE MONEY! Really?

Well not exactly…but pretty close. You won’t find anyone handing you a suitcase full of cash. However, when you are looking to finance real estate, a 1% change in mortgage rates roughly translates into a 10% change in the amount you can qualify for. As an example, the cost per month of financing $300,000 at 6% interest is roughly the same amount per month as financing $330,000 at 5% interest. Do the math for yourself on any online mortgage calculator or call your local mortgage broker.

This good news is viewed in one of two ways depending on your personality.

1. The spender says “I can qualify for a more expensive home.”
2. The saver says “Now I don’t have to pay as much for the home I want.”

Either way sounds like a great deal to me.

Current Mortgage Rates

While there has been a lot of news lately about the Fed making 4.5% interest rates available to home buyers, interest rates that low are not available…yet. Estes Park mortgage brokers are currently quoting phenomenal rates between 5% and 5.25%.

Lower interest rates are the best thing that can happen to you if you are considering purchasing real estate. It also reinforces what you are hearing every realtor across the nation who says “Now Is a great time to buy real estate.”

Buying a home or condo in Estes Park is no exception. Call or email me today to get started.

Pricing a property accurately is more often an art form than an exact science. Finding the market value for your home can be tricky in a buyers market.

What is Market Value?

Market value is determined by the price at which a potential buyer and seller agree to sell the property. Unfortunately, it’s not quite as easy as it sounds.

1. No two buyers have the same life situations or preferences. A 2nd home market like Estes Park can magnify this issue because the people who buy homes here come from all over the world.
2. No two properties share the exact same features. There are multiple intangible and unquantifiable factors that influence buyer’s perceptions of value.

Homeowners, Realtors, and appraisers are often stuck trying to put an objective value on a subjective reality. Online appraisal web sites like Zillow and others may give you a good ballpark price, but they are faced with the same hurdle of intangible factors influencing price.

How then do we establish a price?

We must look at your property from the perspective of those who you are trying to attract.

• Buyers regard value as most important. They will only pursue properties that have the most perceived value at the lowest price. Over 50% of properties within a buyers price range may NEVER EVEN BE CONSIDERED.
• Realtors heavily influence buyer’s decisions and sometimes will determine if a buyer even knows about the property or not. Typically, Realtors don’t get truly excited about a property unless it is the “best of the best.”
• Lenders and Appraisers can be just as tough to please. Even if a buyer likes the property enough to pay full price, a property priced over its comparable sold properties is in danger of not appraising. Without a good appraisal, a bank will not fund the loan and therefore the property will only sell to cash buyers willing to pay above appraised value. Most people who have enough money to buy real estate with cash most likely didn’t accumulate that cash by paying over appraised value on ANYTHING.

3 Simple Steps to Pricing your Property:

1. Check the online appraisal services to get a general ballpark of your home’s value.
2. Ask a competent local Realtor to verify the information you have with comparable sold properties.
3. Search for similar properties online as if you were a buyer looking for a home to buy. Establish a price where your home provides more value than 75% of the competition. (Your Realtor should be able to help you with this as well.)

Of course, if no one knows your home is for sale, having your home priced well isn’t going to do you any good. The best way to get the word out is to hire a competent Realtor to market your property. That is a topic for another post. Stay Tuned.

I had the privilege of sitting in on a panel discussion featuring practically ALL of the local Estes Park Mortgage Brokers. It was a lively discussion about how Estes Park property buyers are being affected by the national credit market upheaval.

Panelists included Sarah Walsh of First Home Mortgage, Rich Flanery of The Mortgage Center, Harriette Woodard of Estes Park Mortgages, Jose Santana of Blue Diamond Mortgage, Susan Raso of First City Mortgage Group, and Tim Ortiz of Home Financial

Below are some of the general topics covered during the session.

Can I still get a mortgage?

Several of the panelists stressed that money is still available to qualified buyers; however, there are more requirements and higher costs to the buyer in getting a mortgage funded. Recent changes in the way banks are doing business have increased the likelihood that problems are going to arise during the approval process.

Isn’t my credit score good enough?

Having a great credit score is no longer your golden ticket to getting a mortgage, although it does help. Expect to verify assets and income in multiple ways and be sure your credit history is as good as it can be. You may also have to put down more of a down payment in order to get a loan than you needed to in previous years. There are virtually no 100% loans available unless you qualify for a VA loan.

What else do I need to know?

Lenders are also looking much more critically at the property being mortgaged. They are being more strict with appraisals, the overall health of the homeowners associations, and the quality of the house itself depending on the program.

So, what do I do next?

If you are thinking about buying a home with financing, contact me as soon as possible. I’ll get you connected with a local lender who will help you sort out what options are available to you and what your best plan of action will be.  From there, we’ll go out and find you a property with the the best value in your price range. By working together, the three of us will make financing your home purchase as easy as possible.