Should we continue to rent?

Dear Joan,

My wife and I are in the millennium generation and we decided when we got married three years ago that we would just rent, and not saddle ourselves with a mortgage and a property to care for. We felt it would save us money that we could use to travel and purchase whatever we wanted. Plus, we could easily move if we had career opportunities open up in other cities. Now, after living in Eagle County for two years, we are rethinking our decision for many reasons. Do you think our reasons still have some merit? We feel we are at a confusing juncture in our life plan.

Dear Confused,

I commend you for taking a second look while you are still young enough to have great benefit from modifying your plan. I think many people in your generation have a distorted view of what home ownership means and can do for ​them​. I think there is much more freedom derived from owning your own home than there is from being at the mercy of a landlord who can sell the property you are living in out from under you, as well as raise the rents annually. Besides the probable significant tax benefits that often go with owning your primary residence, it is like a forced savings program that can have large and sometimes huge benefits.

Rent vs. Buy Real Estate

My husband and I made our first purchase in a neighboring ski county. We were able to buy a one bedroom condo after being married for a few years. We then sold that and were able to buy a two-bedroom very modest older condo in Eagle County. We sold that in a few years and were able to buy a home with a little land in Western Eagle County. We eventually sold that (after some major remodel) for 13 times what we paid for it. We would have never “saved” that much money in a bank account nor would our saved money have increased in value like it did in our home.

Most people move every five to seven years; we didn’t. So what if you do stay​? Then you will be paying​ someone else’s mortgage for three, five, seven or 30 years? What do you have to show for all of your monthly payments? There are many statistics tied to financial success and home ownership. There are ​successful people in rental properties​, but most wealthy individuals own at least one home​ and usually an investment property as well​. As far as finding other opportunities in your careers and needing to move, you can either sell or rent your property and have someone else pay your mortgage! Right now, interest rates are lower than I have ever seen them in 29 years selling real estate in this valley, and rents are climbing at a fast pace. There are loans for first-time home buyers that require little or no money down. I strongly suggest you find the best Realtor you can to help you see all of the opportunities available to you. Congratulations for not being one of the sheep headed for a financial demise in ​your not too distant​ future. 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.

Article originally published March 21, 2015 and can be seen here as it was published.

What is a ‘Luxury Realtor’?

Dear Joan,

What is a luxury Realtor? I am looking to put my property on the market next spring and depending upon the market it will be over $900,000 ... hopefully, over $1 million, if the market gets stronger. Do I need someone who calls themselves a luxury ​Realtor​? What does that mean, and how important is that in getting my property sold?

Dear Possible Luxury Seller,

You have hit upon ​a​ question​ with many facets to the answer. First of all, let’s look at a definition of a luxury Realtor. If you call yourself an expert at anything, say skiing, tennis, business investments, dancing,​ etc., then does that make you an expert? Not necessarily, but it does show you at least aspire to be good at that chosen field! There are designations for luxury Realtors in many of our different companies. There also are a few international organizations like the Institute for Luxury Home Marketing.

Whether or not they (Realtor) call themselves or your home luxury is not nearly as important as their knowledge of the real estate and how it gets sold in this valley.

In The Top 10 Percent

For most all of these designations, you need to have sold a certain number of properties in the top 10 percent of dollar sales volume in your area in a certain time frame. When I got my designation, the minimum sales price to qualify was a $2.4 million sale in the Vail Valley. By these terms, anything under a $2.4 million sales price was not considered luxury. If this is true across the board, then you would not want a luxury Realtor. However, nationwide, a luxury sale is generally considered anything over $500,000. Obviously, it greatly depends upon the area you live in.

Location, Location, Location

Personally, I believe that there are different luxury values in our own county and your home very well may be considered luxury in your community. The location of the lot is critical in all real estate, and especially in resort real estate. We all know the value of a ski-in/ski-out location, but there are also other excellent locations throughout the valley with fabulous views, golf course community amenities and large estate-like acreages or ranches. A great (not necessarily designated as luxury) Realtor can help you evaluate your location and improvements to get the most money the market will bear when you choose to list your home.

I believe that it is most important that you find a Realtor that will work well with you and do the marketing and networking necessary to sell your property. Whether or not they call themselves or your home luxury is not nearly as important as their knowledge of the real estate, and how it gets sold in this valley, combined with the determination, social networking and experience it takes to make an excellent sales person. I have always felt strongly, along with most of the ​successful ​Realtors in this valley, that it is more important to concentrate on offering luxury service to all of our clients, rather than being so concerned with whether or not we have the luxury moniker in our title.

Joan Harned is an owner and 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 with your real estate questions at Joan@TeamBlack Bear.com, 970-337-7777 or www.TeamBlackBear.com.

Originally published in the Vail Daily on 10/25/14 and can be seen here.

Don't Settle for a Subpar Real Estate Broker in the Valley

Dear Joan,

We are looking for property in the Vail area and have a real estate broker helping that is very nice, but what I would consider very pushy. My husband says that every real estate agent is pushy because it is their job to sell you a property as quickly as possible and for as much money as possible. I don’t appreciate being shown properties that are continually “just a little” higher than the price we said was our top, and then being asked to decide if I want to make an offer or not after one viewing. Maybe I am the one that is difficult, but it seems like you should be able to find an agent that is not in a hurry and will show you what you have asked for. I am now asking you your opinion of my desire. Is it possible to find someone like that?

Dear Methodical,

I hope that you are misinterpreting your broker’s style and motives and you should tell him how

you are feeling. If no change occurs, I am sorry you have encountered one of only a few brokers that will not give you the service you want, and deserve! I think most of us that have done well in this valley have not only shown property patiently for days or weeks, but for years! It is not uncommon for clients to look at property when they are in town, but with no sense of urgency until either something in their life changes or they find “just what they have been looking for,” which may be several years into the process.

Your concern about price may be that we always look a little above the top price specified so as not to miss a good property that might accept a lower offer. Also, we have a wide range of prices in this valley, but not necessarily in one specific location.

If you don’t feel comfortable with the pricing in one area, then your broker can show you other areas, and you should ask for that, if it is not suggested. If you have insisted on just one area, then your price range may not exist there.

NATURAL?

As far as it being natural for a real estate agent (i.e. salesman) to be pushy, I would like to strongly disagree. I would, however, like to point out that, as Daniel Pink points out in his book by the same title, “To Sell is Human.” Almost everyone is selling their ideas, their desires, their rules, etc., to their spouses, friends and children, every single day. You may not feel that you make your living selling, but many more people do than you would guess. Attorneys, doctors, mechanics, service people, etc., are selling you on what they think you need. Mothers, fathers, politicians, preachers, teachers ... they are all selling you their ideas and beliefs. There is nothing inherently wrong with selling, it is just the approach used.

Pink speaks of many ways of selling, but I believe the one he calls “servant selling” is the right approach. Pink says that servant selling “begins with the idea that those who move others aren’t manipulators but servants. They serve first and sell later and the test ... is this: If the person you’re selling to agrees to buy, will his or her life improve?” I think that most of our fine real estate brokers in the valley espouse to this theory. If you found one that does not, then you need to have a frank discussion to see if you can get on the same page ... or you may choose to make a change. Looking for real estate in our beautiful communities should be fun and exciting. Don’t settle for less. Good 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.SkiAndTeeHomes.com.

Originally published 7/12/14 and can be seen here