Is It Time to Buy?

Dear Joan,

My husband and I own ​a​ home outside of the U.S. and one home in the U.S. on the ocean. We love to come to Vail to ski in the winter, but like most​ other​ people, we rent. This year, we came out for the Fourth of July and stayed with friends who own a home here. I was not looking for a third home, but my whole family has now really fallen in love with Vail this summer. They already loved it in the winter. Would it make any sort of economic sense for us to buy here? Since we would be here less than six months, more like four months, would we be better off renting, financially​?​

Dear Newly in Love,

You have joined the ranks of thousands of us who came for the winter and stayed for the summers in the Vail Valley. It is difficult to explain to anyone who has not been here, but the beauty of the valley in the summer, the gorgeous ​pine and aspen​ trees, grasses, wildflowers, bright blue sunny skies, with snow covered peaks in the distance ​with​ the crisp cool nights​,​ are hard to beat. Not to mention the mountain biking, hiking, fishing, rafting and golfing on stunningly beautiful courses. ​There is one more undefined reason for the strong attraction,​ and I am sure you felt it already. It is the warm​,​ ​friendly ​culture of this mountain community. Nowhere else I have been have I seen such a sense of community where people are so giving and willing to help and support their neighbors in time of need. People you meet on the slopes, trails and your neighbors become life-long friends. This nurturing environment can not be totally defined nor can you put a value on it.

BETTER OFF RENTING

​Now, to your question as to whether you would be better off financially by renting, the answer is​ yes. It is very difficult to do anything other than break even by renting short term on most luxury properties in this valley, or any resort for that matter. Visitors that become local luxury homeowners do it to enjoy all the area has to offer, not to make a lot of money off rental income. Now, it is definitely possible to have your savvy, professional real estate broker find you a good buy and then you can make your financial gain when you sell. A lot of money has been made by people that have the ability to get in on a good new project or have the means to buy in a down market when many are selling. If you buy and rent​ out your property​, as a general rule of thumb, then you can cover your HOA fees, taxes and utilities. That, of course, is a huge generalization. Your competent Realtor can get comparable rental information so you can make an educated guess on the return on any given property. However, don’t forget all of the beauty, adventures, fun​,​ family memories​ and friends​ you will be making ... priceless! Good luck to you.

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 Harned with your real estate questions atJoan@TeamBlackBear.com, 970-337-7777 or www.TeamBlackBear.com.com.

Originally published 7/17/15 in the Vail Daily and can be seen here as published.

How do we get back into home ownership?

Dear Joan,

We lost our home in 2008 during the financial crisis. We had just purchased it in 2006 and then my husband was laid off work in late 2008. We could not keep up with the payments so we called a Realtor who was a wonderful help getting us out with a short sale. We were one of the fortunate ones that did not have a deficiency judgment to pay afterwards, so it could have been much worse. However, we have been renters ever since. We both have good jobs now and have been saving all we can and would love to buy a home. What will we need to do to qualify? We are a little embarrassed to start looking and don’t know what questions to ask. Thank you for any advice.

Dear Embarrassed,

I am thrilled you are getting back into real estate. Please realize that you were one of many. In fact, last Sunday’s article from Jill Schlesinger in the Business Section of The Denver Post stated that: “According to the real estate information company RealtyTrac, from 2007 to 2014 some 7.3 million Americans lost their homes to foreclosure or to short sales.” My hope is that most of those people will come back, realizing that real estate has historically been one of the best investments the average person can make. And it has made veritable fortunes for the clever or lucky ones that have been in the right place at the right time.

All you really need are two things. Actually, I am prejudiced, so I will say all you really need is one thing — another knowledgeable Realtor, like the one that helped you get out as gracefully as possible with your short sale. Tell your Realtor the whole story. This Realtor will give you two or three names of mortgage lenders that can pre-qualify you and let you know exactly where you stand in the credit world. The lender will tell you what, if any, steps need to be taken to get you qualified for your next home. I believe your timing is excellent because the lenders I know say you can qualify most easily if you wait seven years. You are probably there, or at least close enough to start the process, depending on the final date of your sale and release of liability. Fortunately, the interest rates are excellent now and there is a little more inventory to choose from at this time of year. My only advice would be to establish your own parameters once your lender has told you what you can afford. Even though the economy is growing, you might err on the side of caution this time and buy a “stepping stone” — a home that is very nice and takes care of all of your needs but still allows you room to cover your payments when the inevitable economic shifts come in the future. Later, you can sell this home and “step up” to the next one. 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 at Joan@TeamBlackBear.com, 970-337-7777 or www.TeamBlackBear.com.

Originally published 7/10/15 in the Vail Daily and can be seen here as published.

Does unusual floorplans harm a home's value?

Dear Joan,

My spouse and I have been looking at homes in mid-valley for over nine months. There is one home in particular that we like that has not sold in all of that time. We haven’t made an offer yet because we are concerned with the floor plan. We like everything else about this home, but the floor plan is unusual, and although we think we can easily make it work for us, we wonder if it will be harder to sell someday because it is obviously different. If the location is good and the finishes are great and the size is good, how important is an unusual floor plan in the future?

Dear “Make it Work,”

When you say “unusual floor plan,” that could mean a lot of different things. In general, there are two main reasons why properties don’t sell when they are put on the market. Of course the first and most obvious is that the price is too high for the home, the location and the current market. The second reason is new this decade: Poor presentation on the Internet and consequently online searches that lead to eliminations from the photographs. As Marni Jameson, a real estate writer in last Saturday’s Denver Post, says about her personal house hunting: “This process is exactly like online dating. If the house didn’t have photographic appeal, promise and potential, or if it was geographically undesirable or had obvious chronic issues, we hit delete.” Therefore, if the Realtor did not use a professional photographer, or the selection of pictures shows features that appear undesirable on the Internet, then the public never comes to look at the property.

“This process is exactly like online dating. If the house didn’t have photographic appeal, promise and potential, or if it was geographically undesirable or had obvious chronic issues, we hit delete.”Marni JamesonThe Denver Post

Possibly this unusual floor plan feature is prominent enough on the Internet that there are very few showings. Many times professional staging will make the home look and actually live much more comfortably, which can be a quick and easy fix.

In your case, if it appears the pictures, presentation and staging are good, then you need to consult your professional Realtor on why this home has lingered and how does she feel about resale in the future? Find out from your Realtor what the price per square foot is that homes​, in general, are selling for in the neighborhood. ​Then, talk to your Realtor about the unusual floor plan criteria that you see, i.e. multi-level​, bi-level, single level​ with no family room, basement with no egress,​ or whatever you may consider unusual.

Whatever it is​ that you are concerned about​, ask ​your Realtor​ to see what other homes in that area, that have similar features​,​ have sold for​ in the past​. Presuming there are some other homes that have ​somewhat the same​ floor plan feature, (and there usually ​are), you will start to get a sense of what you can offer to buy it right to protect yourself in the future when you sell. Your talented Realtor can help you fashion an offer that should protect you, yet not insult the seller​s. Skillful​ negotiation on the part of your Realtor will pay off for everyone in the transaction.

Hopefully you will be pleasantly surprised to find the seller cooperating in a realistic sale and you get your beautiful, non-traditional home at a great price! Best of luck to you!

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 Harned with your real estate questions at Joan@TeamBlackBear.com, 970-376-1356 or visit us at www.TeamBlackBear.com.

Originally published on 6/26/15 in the Vail Daily and can be seen here as published.

Condo or house for a young, new buyer?

Dear Joan,

My daughter is considering buying her first home in the near future. ​She is set on getting a single-family home with a garage and a yard​. She is an adult, but she often comes to me for consultation and advice on important issues in her life. I usually​ am a sounding board and usually support whatever she wants to do.​ However,​ I am worried​ that she want​s​ to bite off too much this time and would be better off starting with a small condo or maybe even a town home. I would like to hear what you have to say.​ Don’t you think a young woman would be better off with a condo with no outside maintenance? Thanks for any words of wisdom.

Dear Advisor,

You should feel very special that you have a relationship with your adult child that includes important life decisions. You are also very wise to give consideration before answering the question. There are a lot of things to consider. Is your daughter a capable, responsible young adult who has been managing her life and money well for ​her​ age? I suspect so, or she wouldn’t be considering one of the most important decisions of her financial life. To stop paying rent, start acquiring equity and receive tax benefits is often the first step to financial independence in today’s economic environment.

A knowledgeable, concerned Realtor ​is​ the key to your daughters success​ in picking the right property. ​Ask around, find someone good who will work hard to help her find what she needs and wants.

According to Heather Perlberg and John Gittelsohn in the Bloomberg News, “Home prices have gained about 25 percent nationally since early 2012.” Where can you make an investment that pays those kinds of dividends? ​Financial benefits will apply no matter what type of property she chooses to call home. I can speak highly of both investments. If you look at ​the financial/Wall Street world, there are lots of REITS (Real Estate Investment Trusts) that acquire huge blocks of apartments and condos for terrific rental income. There are also ​huge​ investment trusts that buy large blocks of single family homes. Sunday’s paper last week spoke of Cerberus Capital Management purchasing 4,200 single-family homes for rentals in the near future. So there is income value in both types of homes.​ ​

As far as which type of home to buy for your daughter, it will depend on her desire and ability to care for a single-family home. As a general rule of thumb​,​​ for resale​,​ ​single family homes sell quicker and easier than multifamily homes. That being said, many factors such as​ the buyer’s​ age, ​desire to ​travel, maintenance concerns, etc., make multifamily homes more desirable to a certain segment of the population, especially in a resort area.

I​ would just help her weigh all of the pros and cons for each and then direct​ her​ to a seasoned Realtor who can also show her all the advantages and negatives of many properties so that she can make an informed decision. The Realtor will also direct her to get pre-qualified​ for a loan​ so that she will know what price range to consider​. Once she has seen the payments​,​ HOA fees, taxes​,​ condo fees (if applicable) and estimated maintenance costs​, she will have a more realistic picture of what her first home purchase entails. ​A knowledgeable, concerned Realtor ​is​ the key to your daughters success​ in picking the right property. ​Ask around, find someone good who will work hard to help her find what she needs and wants. Thanks for asking. ​

Joan Harned is an owner and broker for Keller Williams Mountain Properties and heads up her own real estate team. Harned has sold 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 her with your real estate questions at Joan@TeamBlackBear.com, 970-337-7777 or www.TeamBlackBear.com.

Originally published in the Vail Daily on 6/20/15 and can be seen here as it appeared.

Why do Realtors Change Companies

Dear Joan,

I have used a Realtor in Vail for years and have been very happy with her. This is not a question where I need help with anything, or that there is a decision to be made. I am just curious as to why she has changed companies throughout the years. She has been with three different companies since I have known her. I presume there are reasons to move around but I never felt comfortable asking her and she has never mentioned why. She does a good job of staying in touch, keeping me informed on the market and answering my real estate needs.

Dear Just Curious,

I think you ask a very good question. The statistics show that large real estate companies lose up to 30 percent of their current agents every year. Of course, many of these are quitting, retiring, moving out of the area, starting families and all the other normal reasons people leave their employment.

The agents that realize they are the business, also realize that they need to find a culture and environment where they can learn how to increase their skills and knowledge and how they can connect locally and globally.

But it is a different story when agents move to other companies. In these cases, either the agent has grown or the company has not.

Many real estate companies are still minimizing the agent and promoting their own brand. The company does the marketing to the agents clients, which seems good when they are new. However, if the agent is at all entrepreneurial, then they will realize that their business is their client base and they need to hold on to their database so that they truly have their own business to run and to sell if they ever want to receive passive income and/or retire. The agents that realize they are the business, also realize that they need to find a culture and environment where they can learn how to increase their skills and knowledge and how they can connect locally and globally. Many real estate companies are still old school in their thinking, even though they present a great facade. They believe the company is more important than the agent. Those companies tell the agents what to do, do not include the agents in company decisions and do not reward them financially in the company’s success. Many agents actually believe their success is due solely to the company and/or store front location and fear leaving due to lack of confidence in their own ability.

Your agent obviously is successful and is aggressive enough to look for the company that best fits her needs. That fact that you have stayed with her, because she does a great job of taking care of you and you feel her integrity proves the point that buyers and sellers are loyal to agents, not companies. We have some fabulous agents in this valley, and I am glad you have found one and you are loyal to her. Sounds like you are in good hands!

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 Harned with your real estate questions atJoan@TeamBlackBear.com, 970-337-7777 or wwwTeamBlackBear.com.

Originally published on 6/12/15 in the Vail Daily and can be seen here as published.

Choosing the right type of representation

Dear Joan,

I am looking for a Realtor to work with to help me find the best property at the best price. I have actually been interviewing Realtors and have discovered something I would like to understand better. One Realtor said that they would work with me as a “transaction broker.” If I understood correctly, they would just show me properties, but would not be my advocate, nor be able to tell me any insider information they knew about the property or the seller because they would technically be neutral, just trying to put a deal together between two parties.

Another Realtor said they would be my “buyer’s agent” and represent me, divulging all insider information they knew about the properties and the sellers and they could check a box on their form that said I was not obligated to pay any commission to them. They went on to say they felt it was more advantageous to me that I would sign a buyer listing agreement that said I was obligated to pay them a commission but it would be highly unlikely I would ever need to pay. Can you help me understand this better before I make my final decision?

Dear Wise Buyer,

I think it is great that you are choosing carefully who will represent you, and I do think it is best, in most cases, to be represented by an agent working for you rather than a functionary, putting the deal together. There are exceptions to this that we could discuss another day.

The Realtor that told you that you would be better served by signing an exclusive right-to-buy listing contract/buyer agency with the check mark in the box at 7.3.1 that says “listing brokerage firm or seller may pay, buyer is obligated to pay” would be the one I would choose, all other talents being equal. This box not only encourages your agent to show you all properties that they may know about that aren’t listed, or that are for sale by owners, or expired listing, etc., but it also gives the agent the legal right to work on getting the commission, in these cases, from the seller rather than you.

The 7.3.1 clause explains that the “broker is authorized and instructed to request payment of brokerage firm’s fee from the listing brokerage firm or seller.” That sentence allows your agent to negotiate so that the commission is paid by someone other than you. Without that clause, the Colorado Real Estate Commission will not allow the commission negotiation to be a part of any contract offer. The 7.3.1 clause does go on to say that “buyer is obligated to pay any portion of brokerage firms fee which is not paid by the listing brokerage firm or seller.”

You will know in advance, prior to signing any offer on a property, that you might be obligated to pay any or all the commission to your agent at closing. In some cases it is worth the (usually tax deductible) money to get the home you want at a great price. The chances of this clause ultimately obligating you to pay are probably less than 5 percent and it allows your agent the coverage to do their job to the best of their ability. You will be glad you took the time to understand and choose the best agent to represent you. Happy hunting!

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 Harned with your real estate questions atJoan@TeamBlackBear.com, 970-337-7777 or www.TeamBlackBear.com.

Getting Started in Real Estate Investing

Dear Joan,

I have a mature friend who has made a lot of money just investing in real estate over many years. He told me that real estate was tangible and simple to understand, so he just invested in what he felt he knew. He said Wall Street and stocks, bonds, mutual funds and annuities weren’t anything he felt he could see, touch and feel, so he never went there. I have now reached a point in my life where I feel I can invest some money, and I guess I feel just like my friend did. I would like to get started investing in real estate, but I am worried about making a poor investment and losing everything I have saved. There is a ton on the Internet and lots of books with conflicting advice, so I thought I would ask your opinion. You usually seem to take a plain, uncomplicated approach to things, so please point me in the right direction.

Dear Anxious Real Estate Investor,

I am delighted with your story and will take the fact that you think of me as relatively simple as a compliment. I am a big fan of investing in real estate, and I feel you should diversify within your real estate investment portfolio in locations and types of real estate. I also feel it is good to eventually have a little backup in some traditional investments that can be quickly liquidated if need be.

EASY, SAFE OPTIONS

Now back to the plan for you. You have heard me say before that the first real estate investment you make should, in almost all cases, be your home. Hopefully you have already done that. After that, I personally think it is easiest and safest to buy smaller, less expensive, residential rental properties.

If you can afford a lower end, smaller single family home in a good neighborhood, that is almost always easy to rent and then resell. Townhomes and condominiums that are in a good area and at a good price work well, too. Your goal is to have the rental pay for itself. If you pay cash, it is much easier to find rentals that can pay all their own expenses (upkeep, taxes, HOA fees, etc), but if you have a loan, you also want to know that the rental rate will pay for the mortgage in addition to the expenses.

INVALUABLE TOOL

This is where a great real estate agent is invaluable. The experienced agent can help you find the right property, in the right location, at a price that will work for you.

The Realtor can also recommend professional lenders and management companies, if you do not want to handle the rental process yourself. Your Realtor will also help you gather all the facts, run the numbers and allow you to make an intelligent decision.

As your real estate portfolio grows, you might look at some commercial investments, too. Small office buildings, or commercially leased land or storage can bring in substantial income, in many cases.

I think your next, most important step is finding a knowledgeable, professional, interested Realtor who will take the time to get you all of the facts, knowing it may take some time for you to decide on your first purchase. I am excited for you and know you will enjoy the process and reap the rewards!

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 Harned with your real estate questions atJoan@TeamBlackBear.com, 970-337-7777 or www.TeamBlackBear.com.

Originally published 5/22/15 in The Vail Daily and can be seen here.

Is now the right time to buy?

Dear Joan,

My wife and I are finally feeling confident enough about the economy and our income that we are ready to buy a home in the valley. However, there seems to be very little available in a mid price​ range that is​ within​ easy​ bus ​access​ ​for​ skiing. Do you think there will be a lot more ​properties​ ​come​ on the market starting in June or July? I have heard that ski area sellers often wait until the first of July​ to list, as they consider that the start of summer. Should we wait and see what comes on the market or just look harder and/or expand our budget​ and radius of our search​ right now?

Dear Ready-to-Buy,

The good news is that a lot of people are feeling the same way you are about the economy and their investments and income are up considerably from what they have been. The bad news is​,​ that many people are feeling the same way you are about the economy and their investments and their income​s​ ​are​ up, too. That is bad news for you because those are the ones waiting to put their property on the market this summer (June or July) when they believe they can finally get more for their home than in the past few years. Therefore, my best guess is​, yes, there will be more inventory available on the market, but​ the properties will be​ at higher prices than we have seen for sometime. So, it definitely is important to take a good look now. This is important information for would-be sellers, ​too. I would say​ to those who are thinking of selling this summer​, if you want to sell this year, put your property on the market now. Not only will you beat the competition of the summer rush to market, but you can be certain ​that your buyer can tak​e​ advantage of still record low interest rates, ​which​ may or may not be he​re​ in the coming months.

​I think you are right in asking your Realtor to expand the radius of your search​. Then you will, at the very least, have more comparisons for figuring out your best way to go. Remember, being on the bus route is not just in Vail, it actually goes all over the valley now. If you want to be within a few minutes of skiing, that is a different story and you will need to stay​ closer to Vail, Beaver Creek or Arrowhead, whatever your skiing preference is​. Once again a great Realtor, hired as your buyer broker, can show you the advantages and disadvantages of each property for your use and for resale. That Realtor ​can help you find a​ seller that ​is on the market or may be coming on the market soon, but ha​s ​not listed yet, so that you can ​find a motivated seller​. As always, a motivated seller and a ​qualified​ buyer can almost always make a sale work with the negotiating skills of a seasoned Realtor.​ We know you will discover something soon that you and your family can enjoy for years to come. Best of luck to you!

Article originally appeared in the Vail Daily on 5/16/15 and can be seen here.

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.

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.

Two important questions!

Dear Joan,

We have decided to list our property for sale this spring/summer and need direction on the two decisions that we think are paramount in the success of our selling our home for the most money, which is of course our goal.

We would like some parameters for the following:

• How can we know when the best time to put the property on the market will be?

• How do we pick the best real estate agent when we know so many?

Dear Soon-to-be-Seller,

I will address your No. 1 question first, although if you use the correct criteria for choosing your Realtor in No. 2, then your Realtor will be able to answer No. 1 for you. My answer to your first question is that the market is always a dynamic moving target. This year, I would say list right now. I don’t know all of the reasons, but 2015 has come out with a running start in sales. It may be the improved economy in general, the many spells of warmer weather, lots of sunshine and many sellers and buyers that wanted to get a jump on spring — we are never sure of all of the factors. We have had quite a few sellers talk about the aforementioned reasons for selling this summer, but they are still waiting for the actual beginning of the new season. They are guessing the market might continue to get better ... but going off the law of supply and demand. The sellers that are waiting now may have a lot more competition in the next few months, which actually might reduce the money they will capture with their sale. The reduced inventory in certain segments of the valley is definitely helping the sellers right now.

Now back to the second question, which often seems difficult for sellers with lots of Realtor friends in the valley. If you look at it purely as a business decision (and a very important business decision!), then it becomes much easier. You want someone who is successful, happy and enthusiastic. These characteristics may seem like an interesting grouping, but they are actually an essential combination. First of all, according to a recent Harris Poll, only 33 percent of the population reports that they are very happy. And, according to the editor of Inc.com, “happy people are more successful people.” So eliminate the two-thirds of your Realtor friends who are negative, complainers and gossiping victims of life’s circumstances. You are now looking at the one-third that are cheerful and optimistic. Have each one of them come to your home and interview them about what they think about the market, your home in relationship to the market and how they would go about marketing your home. If they speak mainly of print advertising, then I would say you are still looking. You want someone who will concentrate on all the facets of the Internet and social media coupled with copious high-quality photography to be placed on all of the Internet sites. I think by this time in your selection process you will know who will best protect your investment by working to get you the most money possible in today’s market. Best of luck to you!

Joan Harned is an owner, broker and Operating Principal 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 orwww.TeamBlackBear.com.

How does skiing affect market value?

Dear Joan,

My question to you is about the value of skiing to real estate in this valley. I don’t ski, by choice, and my husband says he loves to ski. But, frankly, when we come to the valley in the winter, he finds more excuses not to ski then there are days to ski. He actually seldom goes on the mountain in the winter, and when he does he goes late and quits early. We both love to hike and ride bicycles in the summer, and we love the social and cultural events, not to mention the dining opportunities year-round. Now, after years of renting, we are ready to buy and feel we will be retiring here in the not too distant future. He thinks we need to spend the extra money to buy a home with skiing access because he “loves to ski” plus he says that if we buy something that is not associated directly with skiing, we will spend less, but we will have a hard time selling if we decide to in the future. Can you weigh in on this?

Dear Non-Skier,

All properties will sell at market value. Market value varies with the location, construction and what the market is doing at the time of sale. If you buy with ski access, then you should pay more, and sell for more. If you buy without ski access, then you probably will get more home for your money, and it should sell accordingly when you are ready to sell. There are a couple of other points you two might want to consider. First, you don’t have to ski to enjoy watching your friends, family and others ski. Just as you don’t have to golf to enjoy living on a golf course, enjoy the scenery and watching others golf. Plus, homes with ski access usually are close to the hub of stores, restaurants and activities. This makes for a pleasurable time to be able to walk to many of your daily and evening events. You definitely don’t have to ski to greatly enjoy living in Vail Village, Beaver Creek or Arrowhead.

Secondly, if you choose to not be located on the ski hill, you are not alone. Many families are enjoying alternative winter activities (cross-country, snowshoe, snowmobile, snow biking, etc.) plus numerous summer activities (golfing, fishing, biking, hiking, gardening, etc.) more than skiing these days. Golf has become an important reason for many buyers here from climates with hot summers. The whole world in general is exposed to and enjoying new winter and summer sports all of the time. Any “good” location should hold its market value now and in the future. My suggestion is to find a great Realtor who can show you what your choices are. I am sure you will know when you see the right one. Welcome to the valley — you are going to love it all year long!

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.

Published in the Vail Daily on 3/7/15 and can be seen here.

Why so many opportunities in the western part of county?

Dear Joan,

I own a second home in Beaver Creek and for the first time I am giving thought to doing a development venture in Eagle County. I have checked with a Realtor and discovered numerous opportunities for sizable developments in the Eagle and Gypsum areas. Why are there so many opportunities for sizable tracts of land in Western Eagle County and how does that fit with what is happening in the resort areas?

Dear Property Owner,

The fact that almost all of the new development opportunities are in Western Eagle County is not too difficult to figure out if you look at the property ownership and the geography of the area. As many locals know, over 80 percent of the land in Eagle County is owned by the government, either National Forest or Bureau of Land Management. The other approximate 20 percent of privately owned land i​s mainly located in the valley floors (river and creek drainages). Armed with this information and​ a map​,​ you can see that the Gore Creek/Eagle River valley widens as you proceed west from Vail to the mouth of Glenwood Canyon​, a​s do the tributaries, Brush Creek and Gypsum Creek​. Therefore, there just is more usable, privately owned land as you move ​from East Vail to Gypsum. Now you add the fact that most of the land that was developed first was around the ski areas, and once again you are looking west for more new development of any size.

​The above facts are no secret, so​ many forward thinking developers started ​purchasing Western Eagle County land years ago and even got several plans approved for large residential and/or commercial developments west of Edwards. The economic slowdown put many of them on hold​ and or sank some of them​. Currently, with the economy ​picking up on many fronts,​ interest has returned, along with multiple opportunities for investors right now. ​Many of these large parcel​s​ ended up in the hands of lenders, who do not care to own land, but had no choice with non-payment in a difficult economy.​ It is very pleasant to now see that the investors are coming in with interest​ that​ we have not seen for many years.​ Be sure you find a knowledgeable Realtor that knows the area and has the history to inform you about everything that is on the market and may be coming on the market in the near future.​

​As far as how this fits with what is happening in the actual resort areas, to me it is an essential part of the resorts success. When most of us moved here (some of us in the ’70s) we lived in or near Vail. As time passes, many of the original reasons for moving to the valley expand. Singles get married and have families, ​those who stay single decide they want a dog, a yard and a garage. And many of the “original settlers” decide they would like to play more golf, shovel less snow and have more oxygen to breathe on a daily basis. Western Eagle county is almost 2,000 feet lower in elevation than Vail and therefore provides many differences in a short amount of distance on a great interstate. The towns west of Vail provide the “affordable luxury” to be able to have more amenities for changing lifestyles. We appreciate you and others looking forward into the future to have this valley provide accommodations for a wide variety of wants and needs of our ever growing population. 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.

Originally appeared in the Vail Daily on 3/1/15 and can be seen here as published.

Finding luxury bargains

Dear Joan, 

I am afraid my husband is going to buy a luxury second home for us here in the Vail Valley​. I do love to visit here, and so do our children, it is just that I am the practical one in our family, and I fear it is a poor investment. We can afford it, but there are so many other places we could spend that much money and get a return on our investment that I feel frivolous spending it here. I know that it is your job to sell buyers the most expensive homes you can, but don’t you think I have a valid point?

Dear Not So Frivolous, 

First of all, we realtors that value our clients do not try to sell them the most expensive home we can. Rather, we try to find them the home they can afford and will enjoy. This necessarily covers a large price range as we work with diverse clients. We also don’t consider it frivolous to buy a beautiful home you and your family and friends will enjoy for years to come. None of us know how long we are here on earth, and to put off pleasures that are earned, and can be savored by all, is not recommended where I come from.

 

I personally think some of the best values in our area are luxury homes and outlying properties. I will tell you my reasoning. Many of our lavish homes and ranch retreats are built by very wealthy owners who had the money to get the best and build it “their way”, regardless of cost. Then, age, health, changing interests, divorce, and many other circumstance come along and they are immediately ready to sell. Most of them know they cannot get the money out that they put into it, because that was never a goal when they were building their dream home. Therefore, there are some wonderful “luxury bargains” here that you can find with a professional, experienced realtor. 

There are beautiful homes that you can buy for much less than you could buy the land, pay all the architectural fees, tap fees, engineers and contractors to build the same home on a similar lot or acreage, if you could even find a similar quality location. Lastly, I have had many real estate coaching experiences over my 29 years in real estate here, and one very successful coach, named Rick Ruby who owns The Core Training, says you should always buy the most expensive property you can afford, since quality always holds it’s value the best in down economies. I don’t have any statistics on it, but I have witnessed it and it certainly has worked for him and many others. I hope you can relax and enjoy every moment in your new home, if that is the decision you and your husband make. Best of luck to you.

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 Harned with your real estate questions at Joan@TeamBlackBear.com, 970-337-7777 or www.TeamBlackBear.com.

Originally appeared in the Vail Daily on 2/21/15 and can be seen here.