Is it time to downsize?

Dear Joan,

My parents live in the Vail Valley in a large home, and we three adult children have been talking to them about downsizing. Our parents have their master bedroom upstairs and they also have a finished basement. They say they really don’t need their big house anymore, but then they turn around and say how great it is when we all come home together with their grandchildren, which is very seldom now. Although our parents are both in good health, we think that this is a great time for them to make their move and find something with a main floor master and not have so many stairs to contend with. Do you see this happening a lot in the valley as the Baby Boomers age but still want to stay in the area? Any words of advice to encourage them to make their move now?

Dear Adult Children,

Being from the same era as your parents, I will not have any trouble giving my opinion to you on your verbal encouragement to move, main floor masters, stairs and finding suitable smaller accommodations. I would like to ask how much you enjoy suggestions now (and in the past) from your parents about how to direct your lives, where to live and when to move? Although you believe your intentions are good, your parents seem very capable of making their own decisions and probably prefer to do so. I am sure they love and enjoy their home and their life the way it is and do not have a good enough reason to give up what pleasures them right now. As a Realtor, I have done a needs assessment with some potential sellers only to discover they actually already have exactly what they like and want.

ABOUT MAIN FLOOR MASTERS

Main floor masters are now a popular request for buyers of all ages. In the past, especially on steeper terrain, it was popular to build an upstairs master suite (look at most of the homes in Beaver Creek) to be able to get the square footage desired in all of the other rooms. The convenience of the main floor master is now considered desirable and is now advertised as a selling point in homes. We have not had a lot of ranch-style homes built here, in the higher end properties, in the past.

My opinion of stairs is that they are good for you. If you don’t climb stairs, then very often as you grow older, you will not be able to without assistance at some point in your life. I remember a story about Swedish female twins that lived into their 90s. One lived in a three-story home and stayed mobile and active until she died and the other lived on one level and ended up feeble and unable to get around without a wheelchair. This may have been a fluke or a telling tale.

‘NOT TOO BIG’

Lastly, hopefully the builders in the valley are listening to this message. We do get requests everyday for homes that have main floor masters and homes that are “not too big.” Now “not too big” is a very relative term. You mentioned that your parents home was “large.” Is that 3,000 square feet, 5,000 square feet or 7,000 square feet? The request we get for homes that are “not too large” usually are for homes that are 3,000 to 4,000 square feet. It is delightful to see new homes sprouting up all around our valley this year. Hopefully, we will be having many new homes that will give your parents choices when they are ready to consult with a knowledgeable Realtor about their plans for a change in the future. Have a great spring!

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 on 4/4/15 and can be seen here as printed.

Should I Fix Up Before I Sell

Dear Joan, ​

Shall I do some fix-up/remodel before I entertain listing my house with a broker? My wife says we need to remodel the kitchen and our master bath and do all new floor coverings before we can ​put our home on the market.​ I say, we should stay here​ if we put that much money into it​! Should I do anything at all​, and if I do, how ​do I know I will get my money back from the cost of the remodel when the house sells​?

Dear Fix-Up,

Many sellers make the mistake of spending too much on the wrong thing, ​and/or not fixing the most important items to make the home able to sell in today’s market.

​You will not be surprised to hear me say the first thing you need to do is find a knowledgeable, honest and

successful real estate broker to come look at your house just the way it is today. They should be able to give you the information you need to make intelligent decisions on what to do and what not to do to facilitate the quickest sale for the highest net to you. Remodel also affects the timing of a sale, which is also very important in our current market.

EXTERIOR IS IMPORTANT

In the 2014 Remodeling Cost vs. Value found on the National Association of Realtors website, Realtors responded to a new survey and voted that the exterior was the first most important item to spend money on to receive the biggest financial returns. If your house does not look like “a million dollars” (or whatever your asking price is) when the buyer drives up, then it is hard to even get them in the door. Actually all of the outdoor living space is considered important in today’s market. The survey listed five mid-range remodeling projects that offer the biggest returns monetarily.

Surprisingly, the survey said that the highest return for your dollars (96.6 percent) was received by replacing your front door. Obviously they are very concerned with that immediate feel of “opening the door” to a great home. The kitchen remodel you spoke of is the fifth suggestion on the survey, giving you the possibility of receiving up to 82.7 percent back from your investment. Remember, these numbers are only educated guesses and they are based on nationwide information.

Oftentimes, it is better to thoroughly clean your home (and windows), clean the yard (if there is one), de-clutter and have a stager help you present your home in the best way possible than spend significant money to do a remodel that will significantly raise the listing price. There are exceptions to every rule, and if you can afford it, then remodeled kitchens, baths and new flooring can usually bring you a quicker sale.

The question is the return on investment. So, remember, have a serious pre-listing talk with your Realtor about the market in general, your neighborhood, comparable sales in the whole community and what your competition would be in the market today. You will be able to make good choices once you are armed with the knowledge you need. Good luck!

Joan Harned is an owner-broker for Keller Williams Mountain Properties and heads up Team Black Bear. 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@TeamBlackBear.com, 970-337-7777 or www.teamblackbear.com.

Originally published 5/31/14 in the Vail Daily.   View article as it appeared in the newspaper.

Turning low-ball offers into successful contracts

Dear Joan,

I have had my house on the market for six months, and I am very frustrated about it not selling. The first 60 days I had no showings, then we lowered the price and I started to get showings. I have even had two “low-ball” offers that were actually insulting. What is my next move? A new broker that does better marketing? Lower the price again so I get even lower “low-ball” offers? I don’t want to give it away. I don’t have to sell, but I would like to. Looking forward to your advice.

Dear “Don’t Have to Sell.”

Your situation is pretty classic. Most sellers (other than distressed sales) say that they don’t have to sell and that they “don’t want to give away” their property. Assuming that your broker has experience, skill
and integrity, the broker probably recommended listing your property at a price lower than your starting price. If you are now getting showings, but no offers, then you are still too high. Since, however, you have received two offers (and I don’t know the time frame), I think the place you need the most advice is about counter proposals.

NO OFFENSE
First of all, no written offer should be considered “insulting.” If a buyer went to the time and trouble to write up an offer, then they are genuinely interested, but, as is human nature, they want to see how much discount they can get. You might do the same when you go to buy your next property.

Secondly, the National Association of Realtors says that about 50 percent of the time a written offer can be turned into a successful offer. Therefore, no matter how low the offer price is, you should do a written counter proposal on price and terms. You need to counter with terms (dates) that will work for you and your family and then discuss a strategy for a counter on the price with your broker. If the offer is quite low, then you might want to counter just under your asking price in order to make it plain that you are not going to go much under your price but that you are willing to negotiate a little. Chances are that the buyer will counter your counter, so if you come back at your bottom line, then you have no place to go. On the other hand, if the buyer’s offer has terms that are close to what works for you and the price is not too far off your bottom line, then you might counter at exactly what your most flexible terms are and your rock bottom price, in hopes that they will sign your counter, and you will be under contract!

TRUST A PROFESSIONAL
Please rely on your professional, knowledgeable broker, who should be a skilled negotiator, too.

Negotiating skills are extremely important in getting your property under contract and then working your way through the inspections and other aspects of the path to closing. 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 of qualified experts. 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@TeamBlackBear.com, 970-337-7777 or www.teamblackbear.com.

Originally published 5/16/14 in the Vail Daily Newspaper and can be seen by clicking here.

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