Will golf course homes retain value?

Dear Joan,

My wife is putting on the pressure again that we sell our home and buy in a local golf course community. She knows I like to golf and even though she has never played, she said she just likes the homes and the neighborhood. I know that several months ago you spoke of pricing and value in our golf course communities [Post:  Should A View Be A High Priority], but I am worried about all of the economic problems golf courses in our valley (and nationwide, for that matter) have had in the past several years. Do you think I have a legitimate reason to worry?

Dear Worried,

I would say you “did” have a legitimate worry, in general, from sometime in 2008 to the start of 2012. However, in the past couple of years, the economic outlook for golf courses has greatly improved. [Post:  How is the Real Estate Market Doing?]  Not all golf courses were in trouble during those years, but several locally and many nationwide did struggle, with some going into foreclosure, including three in our valley. Two of those have recovered and are growing and doing well and one is at least temporarily shut down.

According to Steven Ekovich, VP for Marcus & Millichap Inc.’s National Golf and Resort Properties Group, “after bottoming out in 2012, the golf course sales market looks to be recovering and stabilizing.” Ekovich goes on to say that the prices for golf courses nationwide climbed 57 percent in 2013. He also said that “bank financing is slowly returning, the average sales price is rebounding, there are fewer foreclosures and bank repossessions, and more courses are back to positive cash flow.”

Henry DeLozier, principal in the Global Golf Advisors consultancy, recently wrote an article entitled “Better to be smart than lucky,” where he states that “golf is experiencing dramatic change as the economy recovers and as people attracted to the game revise their list of wants and needs.”

He points out that women are making a huge percentage of the decisions on home purchases and women like the lifestyle that accompanies living in the golf course communities. DeLozier mentions fun, friendship, fresh air, wellness, inclusivity, safety and security as those lifestyle desires. These are all lifestyle qualities that are becoming more important to today’s modern family and as the economy strengthens, families are able to concentrate more on their wants now that their needs are taken care of.

So, in summary, as someone who lives in a golf course community, I would say that things are looking much stronger for the economy in general and golf course communities specifically. And, even when the golf courses [Post: Should I Pay More If I Don't Golf]  in our local areas were in trouble, there was still the beauty, the fresh air, the open space and the sense of community that remained. I suggest you have your qualified Realtor do a little research for you on the community, golf club financials and the housing prices in the area of your choice, so you can feel comfortable with any decision you make. Plus this might be a great time to sell your existing home! Some places in the valley have low inventory. Good luck with your decision.

Joan Harned is an owner/broker for Keller Williams Mountain Properties and heads up Team Black Bear, her own real estate team. Harned has been selling real estate in Eagle County for 27 years, is a past chairman of the Vail Board of Realtors, past Realtor of the Year, past director on the Great Outdoors Colorado Board and a member of the Luxury and Land Institutes. Contact Harned with your real estate questions at Joan@TeamBlackBear.com, 970-337-7777, www.TeamBlackBear.com or www.SkiAndTeeHomes.com.

Originally published 4/19/14 by the Vail Daily newspaper and can be seen here http://www.vaildaily.com/news/announcements/11079183-113/golf-course-harned-courses

Is It Time to Buy a Home?

Dear Joan,

As a Generation Y Echo Boomer (30-plus-year-old) potential home buyer, I wonder if I am out of touch with the rest of my generation and economic trends in general. I am working hard to buy my first home. My friends that live on the Front Range say they would rather get an apartment/condo downtown, ride the light rail and invest their money in the stock market. I have always wanted to have my own home with a garage and a yard but now I am wondering if I am out of touch with the “wave of the future.” I would like to hear what you would say to my friends, since I am guessing you are in favor of home buying as you are a Realtor.

Dear “Generation Y,”

Living in downtown Denver, Boulder or any urban city, does not necessarily mean that you friends are not “homeowners” as they may have purchased a condo “home.” Obviously, their dream is a little different from your picture of what a home should look like, not to mention very different from your choice of the best place to live in this state. The reality is that many of us started with our first “home” as a condo, even in this valley. I don’t think the lifestyle or type of home is nearly as important as the fact that it is a wise investment to buy your first home as soon as it is logical and possible.  Read more on buying condos vs single family homes at "Buying a condo versus buying a single family home".

In response to your question, according to the “2014 National Association of Realtors Home Buyers and Sellers Generational Trends Study,” Generation Y makes up the largest separate percentage of homebuyers in the nation. These Echo Boomers are also seen as very optimistic about the housing market and some are moving up to larger homes when possible. So, you are actually right on target for your generation’s goal of home ownership. Actually being part of the majority is not as significant as the fact that you are actually making a wise decision.

To make my point, I would like to mention that one of my financial advisors tells his clients to decrease debt and save until they can buy a home as their first and possibly most important investment. Once they complete that purchase, they can start to work on their investment portfolio. He tells the story of his mother recently needing to move into a retirement home. She was able to have great choices and the financial capability to do so because she had paid off her home and its sale provided all of the money she needed for the transition. I know this retirement home issue is a ways off in your case, but take it from someone “a little older,” that time goes by quicker than you think.

I applaud you on your goal choice and I know you will do well. Be sure to get a competent Realtor to help you make the best investment you can make and get the most for your money in today’s market.   Read these blog posts "Could the internet really take the place of a realtor?", and "Is the agent or company more important" before hiring a Realtor.

Best of luck!

Joan Harned is an owner-broker for Keller Williams Mountain Properties and heads up Team Black Bear, her own real estate team. Harned has been selling real estate in Eagle County for 27 years, is a past chairman of the Vail Board of Realtors, past Realtor of the Year, past director on the Great Outdoors Colorado Board and a member of the Luxury and Land Institutes. Contact Harned with your real estate questions at Joan@TeamBlackBear.com, 970-337-7777 or www.TeamBlackBear.com.

Originally published April 4, 2014 in the Vail Daily.  See original article.

                

Is The Agent or Company More Important?

Dear Joan,

I am in the process of picking someone to list and sell my home this spring.  I have been doing research and still have not determined if the agent or the company they work for is more important when I am making my selection. After searching the internet, newspapers and magazines, I am still uncertain. I would like to hear your opinion on this matter.

Dear Soon to be Seller,

As you know, I always have an opinion. In this case I would definitely say that the emphasis is on the agent. I would say that the choice should be weighted somewhere around 80 percent on who the individual agent is, and only 20 percent on which company you end up with. (It is however, very important to the agent what company they are with, but that is another story.)

I support the premise that the selection of the agent is most important because no matter how good you think a company is, it will be your agent who will initiate the marketing and your agent will be the one to “sell” how great your home is to the rest of the real estate community. A strong agent can demonstrate the value and desirability of your property not only to clients but to other agents who will bring in clients.

Also, once your property receives an offer, it is critical to have your agent have the skills to do all the important negotiations on price, terms, inspection resolutions and urgency of dates. If you have an indolent, disinterested or unskilled agent, then the name of the best company in the world won’t help you get your property sold in the least amount of time, with the least amount of stress and for the highest net profit.

On the other hand, if you find a great agent, then chances are they are with a company that has a strong culture and deep resource system for that agent. Really good agents make certain they are with a company that allows them the freedom to grow and promote their listings and themselves in the most beneficial ways.

When you start your search for that great agent, it is always invaluable to have a referral from a friend or neighbor. Most of my business comes from referrals and it is a real compliment to have referrals from past clients. Once you have a name, then the Internet is a good place for the initial search. See if they have one or more websites and read about their history and successes. Google gives a wealth of information, and you can often learn a lot about an agent by looking at their Facebook page. Now, you are ready for an interview to see if your desires and personalities work well together.

You are fortunate you live here, as we have a lot of great agents in this valley with many different companies. Best of luck to you!

Joan Harned is an owner-broker for Keller Williams Mountain Properties and heads up Team Black Bear, her own real estate team. Harned has been selling real estate in Eagle County for 27 years, is a past chairman of the Vail Board of Realtors, past Realtor of the Year, past director on the Great Outdoors Colorado Board and a member of the Luxury and Land Institutes. Contact Harned with your real estate questions at Joan@TeamBlackBear.com, 970-337-7777 or www.TeamBlackBear.com.

Could the Internet Really Take the Place of a Realtor?

Dear Joan,

No offense, but I am very savvy with the Internet and feel I can find everything listed for sale myself, without a Realtor. Now, I may need a Realtor to actually help me look at the property, but I can have an attorney write the offer, or I could do it myself. Do you think we are fast approaching a time when the Realtor will not play a prominent role in the sale of real estate?

Dear Internet Savvy,

I am so glad you asked that question. Actually, the statistics show the opposite trend. According to the National Association of Realtors, you are correct in saying that an ever-growing number of buyers start their home search on the Internet. Actually, 92 percent of home buyers in 2013 started their search on the Internet. However, the percentage of home buyers that purchased their home through a Realtor in 2001 was 69 percent, and in 2013 it increased to 88 percent. It is starting to look like the bombardment of information is actually increasing the need for a Realtor. Wary of Internet I am not sure where to begin explaining why I believe the Internet is a great way to increase your knowledge, but a frightening thought to think that you would actually use the Internet as the sole basis of your real estate decisions. Let’s start with:

• The information you get on the Internet about any subject is often conflicting, wrong and outdated, as in the case of “for profit” real estate websites. Remember that the pictures always look great because the positives are always emphasized and the negatives are omitted. We know much of the information in not current as we often get calls on properties that have been off the market for weeks or even up to two years, and they are still showing as “available” on the Web. Also, price changes are not always reflected in a timely manner.

• Only a local Realtor knows the whole story about what is happening in the community and what plans there are for a particular location and what the changing landscape may do for your resale value in the future.

• The history of the property ownership and pricing, local traffic information, neighborhood schools, nearby recreation available, etc. is not all on the Web.

• The act of negotiating a deal, which includes carefully constructed offers and counter offers, inspection items that may or may not be taken care of, financing guidance, final walk through, etc., are not able to be done well without the help of an experienced, skilled negotiator — all the qualities of a good Realtor.

These are just a few of the reasons I have room to list. Please continue to search and educate yourself on the Web when you start your property search, but please consult your local, experienced, professional Realtor when you are ready to seriously look and purchase your next home or real estate investment. Not only will you save time and frustration, but probably a substantial amount of money, too. Thank you for asking a very important question that affects most every buyer. Joan Harned is an owner-broker for Keller Williams Mountain Properties and heads up Team Black Bear, her own real estate team. Harned has been selling real estate in Eagle County for 27 years, is a past chairman of the Vail Board of Realtors, past Realtor of the Year, past director on the Great Outdoors Colorado Board and a member of the Luxury and Land Institutes.  Contact Joan Harned with your real estate questions at Joan@TeamBlackBear.com, www.TeamBlackBear.com 970-337-7777 or www.SkiAndTeeHomes.com. View original publishing in the Vail Daily on 3/22/14

Is it Time to Quit Renting

Dear Joan,

I have been a renter in the valley for more years than I care to count up. I am now getting worried that rents are going up [Post:  How is the Real Estate Market Doing?] and I will not be able to afford to rent a place in the location and with the size and quality that I like [Post:  Is It Time To Buy A Home]. I have thought about buying a home, off and on, but I have not saved enough to put 10 to 20 percent down on anything I would like to live in. I am reading that many people are buying and their monthly payment is now less than their rent. How can I get in on this?  [Post:  Why Rent Your Home Wen You Can Own It?]

Dear Rented Too Long,

Living in a resort area has some of its own unique attributes, where people will pay more to be in a smaller place if the location is great for their favorite sport. Also, living in a resort area has lulled a lot of people into thinking they will just rent for a while [Post:  Does it Pay Off To Rent Forever?]  because they might not be here for long. We have all discovered that we truly come for the winters and end up staying for the summers and the wonderful friendships that are made in our valley. Therefore, taking a long look at what your housing needs and wants are is an immensely important subject. As a rule of thumb, it is better to own then to rent, once you are committed to living in a certain area and you have a stable income. There are always exceptions, but most of the time the benefits are numerous:

• Being able to control your own housing payments.

• Having improvements you do to the property actually add to your equity.

• Having potential tax write offs for interest and improvements.

• Experiencing the pleasure and pride of owning your own home.

The good (or bad) news is that you are not alone. According to the Harvard Joint Center for Housing Studies, the percentage of Americans who rent rose to 35 percent in 2012. The same study says 27 percent of renters now pay more than half of their income on rent. The truly good news is that it is possible to purchase a primary residence with 3.5 percent down, or less. If you did not read Chris Neuswanger’s article in the paper March 8, look it up and read it now. It goes into quite a bit of detail about three great government loans for owner occupied properties. Another consideration is location. Please contact a reputable Realtor today and let them help you find a lender so that you can determine exactly what you can afford. Then enjoy the Realtor’s expertise in showing you the opportunities that await you. I would not delay, as interest rates are still good and housing prices have not recovered yet but both are on the rise.

Joan Harned is an owner-broker for Keller Williams Mountain Properties and heads up Team Black Bear, her own real estate team. Harned has been selling real estate in Eagle County for 27 years, is a past chairman of the Vail Board of Realtors, past Realtor of the Year, past director on the Great Outdoors Colorado Board and a member of the Luxury and Land Institutes. Contact Harned at Joan@TeamBlackBear.com, 970-337-7777 or www.SkiAndTeeHomes.com.

See original article as published: March 14, 2014 in the Vail Daily