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.

Should you have a 24/7 Realtor?

Dear Joan,

I know you have been asked something like this before, but I need a specific answer to end an argument my wife and I have going. Not really an argument, but a difference of opinion on what the availability of our real estate agent should be. We are trying hard to find just the right home in a neighborhood we like. It seems the good houses aren’t on the market long. We saw one come on the market, called our agent and he said he could show us after the weekend, and you know the story, it was under contract by Monday. I realize real estate agents have families and a life, but I think this is a 24/7 or at least a 12/7 day a week job.​ This is a really important purchase for us and I would like special attention to the sensitive timing of finding the right home. ​My wife​ thinks it is unfair to expect​ our Realtor to always be available. Am I right?​

​Dear 24/7 House Hunter,

​You are sort of right. I do agree that finding the property that you want, in your location, takes a great deal of diligence and you need to be ready to make your move as soon as the opportunity presents itself. No Realtor can, or should, be available every day, every minute, but they should be able to have someone on their team that is available at all times to show you the property. There are many of us that do have our own teams, but even if the Realtor doesn’t have a specific team, they need to have a network within their company, or if a single-person brokerage, then a network with other associates. You should not have to miss the opportunity to purchase a property because your Realtor was gone or unavailable for a day or more. On the other hand, you need to be ready, too. If you are simply looking and your broker has dropped everything several times to show you property and then he discovers you are not mentally or financially ready to buy, he probably won’t accommodate you the next time. If you don’t have the cash to make the purchase, are you pre-qualified for a loan with a lender? Do you need to sell your house first, and you have not put it on the market yet? Does your wife want a big new home and you are looking for a smaller fixer upper? Have you made nothing but low-ball offers on homes you have liked, even though your broker advised you the offers were too low? Make sure you are not the reason your Realtor is often “busy” because he does not think you are serious. If you are serious, and prepared, make sure your Realtor knows that. If he/she is still unresponsive, then find a new Realtor that will get you in every property you want to see, as quickly as possible. 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 published 1/24/15 and can be seen here as in the newspaper.

Should I sell before I buy?

Dear Joan,

I want to look at homes in the Vail Valley to buy, but I am not sure if I should start yet. My house is ready to go on the market (in another ​area​) but it is not listed yet, nor do I know when I would ​find​ a buyer. I ​don’t​ have to sell ​my home​ to be able to make an offer on another ho​use​, but I would feel much more comfortable if it were sold and I wouldn’t be having to deal with two mortgages. On the other hand, I am afraid to put it on the market for fear it will sell soon and I don’t have any place to move to. Any suggestions on which comes first and how to navigate this uncharted territory?

Dear Stuck in the Middle,

Needless to say, this is a very common problem. The good news for people who are just “window shopping” is that they can do that online now, viewing lots of homes and interior pictures on Realtor.com or individual broker websites (these websites are all much more current than the commercial aggregated websites).

In your case, you are a serious shopper, and an experienced, knowledgeable broker can help you find what you need, as well as help you structure an offer to work for your situation. So, I would suggest that you list your home with a competent broker in your area as soon as possible. If you are very worried it will go under contract right a way, then put a clause in the listing agreement that any accepted offer would be contingent upon you finding (and putting under contract) an acceptable replacement property in seven days after the contract on your current home is mutually agreed upon or you have the right to terminate and not sell your present home.

​Simultaneously, you need to find that​ innovative Realtor that is familiar with the Vail Valley that can help you and start looking at properties. You need to explain your situation so that they know you may have to do some creative contract writing when you find the home you want and may not ​​have your home under contract yet.

If you ​know​ that you could get a second mortgage and still qualify for a loan, then you can write an offer that is not contingent upon the sale of your current home. However, in order to increase your chances of getting your home under contract and not having two mortgages, you could write the contract​ so​ that you would not close for​ 60 to​ 90 days or possibly a little more. Then you can adjust the price on your current home to make it very attractive to a buyer so that you have a good chance of doing simultaneous (one right after the other) closings on your current home and your new home. You might be surprised how often we can make this work, if you take a realistic approach to pricing your current property. Check with more than one Realtor if need be, until you feel confident you have found one that has the desire and skills to help you in your situation. 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 published in the Vail Daily on 11/15/14 and can be seen here.

Should I sign extension for buyer?

Dear Joan,

My home has some wonderful​ and unique features, ​so​ when I listed it​ for sale​ it went under contract in the first 30 days. I have plans for the proceeds from the sale and have been anxious for the closing to take place. However, the buyer’s Realtor has just now asked for the fourth extension ​for the loan issues the buyer is having. ​I am seriously considering not signing this extension. ​The​ buyer’s agent​ keep​s​ assuring us that everything will work out, but I am wondering if we should just cancel and start over with another ​b​uyer.​ ​What are the odds of continually extended deals eventually closing?​​ Any words of wisdom?​

​Dear Postponed,

There are definitely too many unknown circumstances for me to pre​dict the outcome of your situation without​ obtaining​ more facts.​ One fact I do know is that no one wins if the transaction does not go through, not the buyer, their lender, their agent, your agent or you. Therefore, we must presume that no one is intentionally wasting their time on a transaction they believe will never come to fruition. They all believe it will work out, partly because they want it to, but mostly from their knowledge of this transaction. They have been through these difficult situations before and most of the parties know the chances are good or they would pull the plug and work on something that has a chance of succeeding.

With great luck you could close in 60 to 90 days with another buyer. I am guessing the extension ​you​ have been asked to sign is much shorter than this time frame. Therefore, often the extension is your best bet for a timely close.

Hopefully you had a pre-qualification letter from their lender in the beginning and hopefully you have checked off most every contingency​ in your contract​ except the one issue that is causing the delay. Consult with your broker so that you can better understand the problem and know the odds of it getting solved.

If you decide you won’t sign this last extension, then, presuming the buyers have met all of their dates, they will receive their earnest money back. You will want to make sure you have a termination notice signed by them so that you will not have any legal hang ups ​when​ you sign another​ buyer’s​ contract.

SQUARE ONE

Then you begin the process all over with your broker to market and show your home again. Every broker showing the property will know that it was under contract and “fell out” ... and they will want to know why. They worry that there ​was ​something found during the inspection of the home that caused the buyer to not go forward​ with the purchase​. Your broker can explain that it was not a fault of the property, but rather the buyer, if indeed that is true. Then you can hope that you will get another acceptable offer in the next 30 days and then go through the inspection and loan process ​all over ​again, hoping for a better outcome. With great luck you could close in 60 to 90 days with another buyer. I am guessing the extension ​you​ have been asked to sign is much shorter than this time frame. Therefore, often the extension is your best bet for a timely close, unless it is a​ truly​ unsolvable issue.

Rely on the information and advice your experienced ​Realtor ​gives you.​ Most of us have been thorough this many times. Sometimes your Realtor can get the buyer’s agent to get permission from the buyers to let your Realtor speak directly with the buyer’s lender. This can often give you the facts you need to determine the likely success of the transaction. Good luck in making an informed decision!

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 published 11/7/2014 in the Vail Daily and can be seen here.

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.

Should I leave my own local broker? (to sell to a friend who doesn't liek brokers)

​Dear Joan, 

I have had my home listed with a local broker for months now, and I have not had any offers. A friend of mine just told me that he knew someone that he thought would buy the house right away. The prospective buyer does not like real estate agents, so he wants to bring me the offer directly. I am not sure what I should do. I have gotten lots of free advice telling me to cancel the listing contract and then deal directly with the buyer so I won’t lose the sale​. I don’t know if I can do that legally and/or if it is the “right thing” to do. I really want to sell and don’t want to miss out on this buyer. What should I do?

Dear “Right Thing,”

I would guess you are asking the question because you inherently know it is not the “right thing” to do. I am not an attorney, but if you read over your listing contract carefully, then you will see that when you signed this legal document, you and your listing

broker agreed to many obligations to each other. If your broker has not lived up to his numerous obligations, then you should discuss this with him and then decide if you want to terminate the contract. However, finding a buyer on your own (if indeed that is even true) is not a reason to cancel the contract. In fact, you are obligated to immediately let the broker know of this potential buyer. Please reread paragraph 10.1 “Negotiations And Communication.” It says: “Seller agrees to conduct all negotiations for the sale of the property only through broker, and to refer to broker all communications received in any form from real estate brokers, prospective buyers, tenants or any other source during the listing period of this seller listing contract.”

In paragraph 7 “Compensation To Brokerage Firm; Compensation To Cooperative Broker,” it speaks of when the compensation is earned by the brokerage firm, and it states that the commission would be earned “herein without any discount or allowance for any efforts made by seller or by any other person in connection with the sale of the property.” This is pretty clearly written, but please contact an attorney for legal advice on this matter.

I would like to clarify two other matters. First of all, the question I mentioned above about if the buyer came completely on his own. It is always a question about where the buyer first heard about the property. Was it actually because the listing broker saturated the Internet with information and great pictures of the property? Was it the fact that the buyer saw all of the activity at the home ... photographer, showings, open houses, etc? Was it the fact that the broker was able to get price reductions so that you are now advertised at fair market value? 

Secondly, you do not know that this buyer is qualified to make the purchase. You don’t know if the buyer will actually do a written offer that will have terms and a price acceptable to you. You don’t know if this buyer will ask for large concessions during their inspection period. If the buyer is for real, then he/she will not be scared away by a professional broker who can be a hugely valuable asset to making the transaction happen. My advice is to talk to your experienced broker right away and let your broker help you to make the best sale possible on your property with this buyer (if he/she is for real) or any other. I know you will do the “right thing”!

Joan Harned is an owner and 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 Saturday, October 11, 2014 and can be seen here.

Viewing your realtor like a financial advisor

Dear Joan,

As a senior citizen, I have bought and sold property for decades. My last purchase was a lovely home in the Vail Valley two years ago. My question is a little different from what you normally get. My Realtor that represented me in the last transaction has called, emailed or mailed me something every few months since. I closed the deal. I am not quite sure if I am impressed or irritated that I keep hearing from her. I feel like she is trying to get me to sell, or buy, something else, and I am not in the market for either anytime in the foreseeable future. Should I ask her to stop, or be flattered?

Dear Past Client,

Be flattered, as long as the conversations, emails and mailings are friendly, informative and continually updated. Let me tell you why. If you think of your Realtor like a financial adviser, then I think the message becomes clearer. Would you like to invest a million dollars in various investments that your adviser recommended and then not hear from him for two years ... or ever again? Wouldn’t you rather be updated on the market and how your investment was doing, and maybe be made aware of other potential investments that might be equally as good, or even better? Don’t you make some of your biggest single investments with the real estate you purchase? Therefore, your Realtor can be as important to your investment portfolio as your financial adviser. Unfortunately, many real estate clients don’t look at the process in this professional manner. Actually, some real estate agents fail to look at the process as so important to their clients current and future financial portfolio. A great Realtor feels responsibility to their clients when they are actively working with them and after a transaction is complete.

Excellent Realtors keep their current and past clients informed of the market in their community and the valley. It is a task that many agents shun, as they don’t like doing busy work, such as continual follow up. Many Realtors are just concerned with their current sellers and/or buyers. It takes time and discipline to stay in touch with past clients. The interesting part of your question is why no other agent has ever done the follow through of keeping you informed. Needless to say, no one is perfect and some tasks fall through the cracks over the years. The best way to keep informed is to give your diligent Realtor (financial adviser) some feedback about the information you would like to have about the real estate market in your area. You also can let your friends and family know about what a great job he/she is doing! Thanks for your great question!

Joan Harned is an owner and 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 9/27/14 and can be seen as it appeared in the Vail Daily here.

How to Come Up With a Convincing Purchase Offer

Dear Joan,

Our family is moving out of Eagle County to another more populated area.  The good news is that the new city has more homes for sale.  The bad news is the competition for homes seems higher also.  We have found several homes that we like and they went under contract to another buyer almost immediately.  We also have found several homes that would work for us and we have written up offers.  Unfortunately, they have been rejected and before we could put in another offer, they were quickly put under contract by someone else.  What do you suggest we do to increase our chances of securing a home as soon as possible?

Dear “Aspiring Home Owner”,

It sounds like you are in a Seller’s market in your soon-to-be new location.    Or, at least, the price range you are looking in has a lot of competition due to more buyers than Sellers right now.  This can be a frustrating experience but you can certainly

take steps to greatly increase your odds of getting an offer accepted on a home you would like to own.  First, I would try to take the mindset of the Seller, i.e. what would you be looking for if you were a Seller in a relatively low inventory market and wanted to sell your home, and be sure the offer you accepted had the best chance of making it all the way to closing?  Keeping that thought in mind, here are the 6 things I would suggest you incorporate into your offer:

1.   Make your very best offer on price.  Now is not the time to low ball or hope the Seller will counter to your offer if you are too low.  You may only have this one chance, so make your very best offer that you can and will pay for the property.  Then, if someone else gets it for more money, you can just go on to the next property, instead of wishing you had gone a little higher.


2. Make a cash offer or attach a pre-approval letter with the offer.  Of course the most convincing offer is cash, but absence of being a cash buyer is best covered by a strong pre-approval letter from your lender showing that they have verified your income and credit score and have determined that you can make payments on the amount you will need to borrow.


3. Make a statement with your earnest money deposit.  This is a place you can stand out and look like a  strong Buyer by offering at least twice what a normal earnest money deposit would be in that local area, at very little risk to you.  Colorado contracts have clauses that allow the full return of your earnest money.  Be sure to go over this with your Realtor, especially if you happen to be going to another state.


4. Make an offer that has minimal contingencies.  There are a number of standard contingencies that Sellers usually will allow.  Try not to add any more, as these become red flags to the Seller. Usually the standard contract covers the Buyer quite well.


5. Make your offer reflect that you will pay all of the normal costs associated with the sale that go to the Buyer’s side, and you might even include that you will pay some of the closing costs of the Seller.


6. Make your closing and move-in date work with the Seller’s needs and concerns.  Here I would ask your Realtor to check with the Seller’s agent to learn what the Seller’s ideal timetable is for closing.  Then find out if offering the Seller an opportunity to  lease back for a short time (usually not more than 30 days if you are getting a loan) to take pressure off their move out of the house, would be a plus to them.  This willingness to work with the Seller’s timing is often extremely attractive to a Seller and may make your offer the one they cannot refuse!

The above techniques work in almost all markets, so be sure to discuss them with your Realtor, if you have not already done so.  We hate to have you leave the Valley, but we wish you all the best!

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

Original publishing in the Vail Daily on 2/8/14 can be seen by clicking here.

Leasing a home while trying to sell it

Dear Joan,

I am very anxious to sell my townhome, but I have not even had an offer yet. I feel I have priced it right and I have taken care of every maintenance item that has come up since I have owned the property. I have two very nice tenants in the property, and I have always found them to be neat and tidy. Their lease runs out in 90 days and I have told them I will honor their lease or give them monetary compensation to move. Both tenants seem to be fine with that. The only issue I can think of is that one of them works days and one of them works nights. The listing agent has said he often has trouble accommodating showing requests with their schedules. What advice would you give to expedite a sale?

Dear Anxious to Sell,

An online real estate-related blogging platform named “ActiveRain” recently polled 1,000 Realtors and asked them the top-three mistakes sellers often make when it comes to trying to get their homes sold. Six items rose to the surface. I believe that with the information you have provided, the top two issues from the poll are the most likely reasons why your property has not sold yet.

The top mistakes made by home sellers:

• Overpriced home: 77 percent.


• Showing availability: 34 percent.


• Cluttered space: 32 percent.


• Unpleasant odors: 28 percent.


• Unwilling to negotiate: 21 percent.


• Won’t make repairs: 20 percent.

I know you believe that you have priced the home right. However, it can always be argued that a home is over-priced if it is not under contract. I would say that there are other variables, but if a house is priced low enough, then it will almost always sell despite any and all other issues. You, of course, want the highest price possible, so I would suggest you look at the second issue, “showing availability.”

Not being able to show on short notice is always detrimental to getting property sold. Now your tenants have not only made it difficult to show on short notice, but often your agent cannot set up showings even with 24 hour notice at times that are convenient for the buyer. This is very detrimental to getting your property sold because some buyers simply will not be able to look during the few times available to them. And another possible consequence could be that showing brokers may get discouraged trying to get into the property, so they pass it by on the properties they present to their buyers, if the buyers are not flexible with their viewing times.

Serious Conversation

If I were you, I would have a serious conversation with your broker and see if the broker thinks that the price is at or above market value. If you want to leave the tenants in, then you may need to go under current market value to encourage buyers to deal with the schedules and the lease that the tenants have.

If you have the ability to wait until the tenants move out, then that may be a solution also. However, you will need to deal with no rent for a few months, the time of year you are selling and whether or not the market will be going up or down at that time. I would look at the above statistics and work on the price first. Good luck with your decisions.

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.

Original publishing in the Vail Daily on 1/31/14 can be seen by clicking here.

Friend’s exclusion worries buyer

Dear Joan,

I have a home out of state and I am listing it with an agent soon. I have asked for an exclusion of a friend of mine that wants to buy my house, but my friend’s purchase is contingent upon his house selling, and it is not under contract. My friend has made an offer at an acceptable price, and now I am worried his house won’t sell and neither will mine if the listing agent has to tell clients it is under contract but there is a contingency. What do you suggest? Chuck.

Dear Chuck,

You are asking some good questions, I must first state that I am only licensed in Colorado and different states have different rules. Also, I am not an attorney and cannot give legal advice, only seasoned Realtor advice.

Those things being said, I am not certain at what stage you are in the process. If the listing agent has agreed to take the listing and exclude your friend, then it probably is not for very long. Most Realtors will only exclude a seller’s buyer for a short amount of time when they take a new listing. This actually helps you as well as your Realtor. It helps you because it forces your buyer to do a written offer right away, so that you know where you stand with him. If he does not do the offer right away, then he will become subject to the same price and conditions as any other buyer.

If, indeed, you have an already signed written offer from your friend, then hopefully you have made it for a short amount of time. Meaning that you are only giving him 30 days to get his property under contract, for example, or his offer expires (unless you both mutually agree to extend it). Hopefully you also have a clause in your friend’s contract that gives him only a few days to remove his contingency if you receive another acceptable, non-contingent offer. By having a clause that gives him, say, three business days to remove his contingency of selling his home (i.e. he gets a bridge loan, borrows from his family, can afford to have two mortgages at once, etc.) you are less likely to discourage other potential buyers. If you have not done either of the above mentioned suggestions, then see if you can get him to let you make an amendment to his offer to add the proper clauses to protect yourself.

One last item to check on — in the Vail Multiple Listing Service, if you have signed and accepted a contingent contract, then the listing agent must show the property as “under contract” and your likelihood of finding another buyer dramatically drops. Please discuss all of these items with your Realtor as soon as possible. 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.

Original publishing in the Vail Daily on 1/24/14 can be seen by clicking here.

Winter a good season to sell

Dear Joan,

I have finally decided to sell my outlying ranch property — but it is now the dead of winter and you can’t see the dirt anywhere! Is it possible to sell an Eagle County ranch this time of year? Am I better off to wait until spring to sell it? What has been your experience?

Dear Winter Ranch Seller,

I will give you the facts, as I see them, thorough my 27 years of real estate, including selling many ranches on the Western Slope and then you can decide.

• There are as many or more qualified buyers here in the winter as the summer. Think about how many planes, commercial and private, that frequent our Eagle County airport and Vail-Beaver Creek Jet Center. Vail is known for its premier skiing worldwide — not our wonderful summers.

• Many winter “guests” fall in love with our area and like to look at property on an off day of skiing. Once winter guests are here, they often cannot believe how beautiful our county is, and they start to think about owning property here. They may call and talk to a real estate broker and decide that they can take a day off of skiing and look and see what they might choose to own here. Some have always wanted to own a “piece of the West,” and a ranch has great appeal.

• It is important for a buyer to see the ranch they will buy in the winter (wind drifts, ice dams, accessibility, etc). If you truly want to own a Western ranch, then you need to know what it will look like in the winter, as well as summer. There are usually a lot of summer pictures that have been taken, but to truly know what it is like in the winter, including the roads to the property, you need to see it in the winter.

• If it is a very large purchase (such as a $23 million ranch we sold), then they will want to see it now, in the winter, but they may not close until they also see it in the summer. If they want to see it both times of year, then it is better to start now.

• Some buyers are considering a purchase for winter recreational use, snowmobile, cross-country skiing, snowshoeing, winter hiking, sledding etc. As you would guess, the clients that come in the winter actually like winter and winter sports. We often have the criteria given to us from clients that they want to be able to snowmobile on any ranch they would consider buying.

• You never know when your buyer will show up, so why not start working on selling it now. This is the one thing we have learned in decades of selling that we may guess the profile and timing about the client that will buy a certain property, but we are continually pleasantly surprised with who and when a client will buy a property.

If you have definitely decided to sell, then I would not miss the winter season in our resort community. Consult with your ranch broker and see what they advise. 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.SkiAndTeeHomes.com.

Original publishing in the Vail Daily on 1/17/14 can be seen by clicking here.

Cap rate vs. appreciation investments

Dear Joan,

I am looking for a real estate investment in your valley, and I have not decided the best way to go yet. I am considering a residential rental or maybe a commercial property. Do you have any local knowledge that I may not have thought of, as I sort through properties on the way to making my decision? I just want to make sure I end up with a sound investment here!

Dear Investor,

Let’s talk about what you consider a sound investment. Are you are looking purely to make money, or are you also buying for pleasure, with reasons such as using the property part-time for yourself or just having a possible tax write off for coming to the valley more often? Once you have decided your true goal(s) you will be able to take a better look at each opportunity.

When I am advising my clients that are looking at making a real estate investment, I have them look at two factors: Capitalization rate (cap rate) and appreciation.

You have picked a good time to look for your investment because there are options in both residential and commercial in today’s market.

Let’s look at residential first. During the height of our previous pricing boom, there were very few residential properties that would have a positive cap rate (annual net operating income divided by the cost equals capitalization rate or the percentage you will make on your money). Meaning, that you could not charge enough rent, monthly or daily to defray your initial purchase price to make the residential property have a positive cash flow. At that time, almost all of the income you could hope for was appreciation as the value of the property increased, and that increase was substantial in many cases. However, in today’s market it is possible to actually find some rental residential properties that do have good cap rates.

As far as the appreciation for a residential property goes, we are starting to see appreciation become a positive factor again as prices slowly creep up. As a licensed real estate broker, we can never state that a property will increase in value we can only give you the comparable information during a period of time and let you draw your own conclusions. Ideally, you will find a property that will cash flow and be appreciating at the same time. On the other hand, if your main goal is to enjoy the property yourself and defray some costs and some expenses, the location and your personal preferences for your family’s wants and needs will probably be the deciding factors, not necessarily the potential income.

As far as commercial opportunities that have cash flow, these were hard to find during our economic down-turn but they are also starting to appear on the horizon now. Commercial store-front property can still be purchased at a good price and we have had some multifamily properties with good cap rates plus room for “sweat equity” improvements. We have also recently had some multifamily lots become available, as well as prime locations for commercial services on our I-70 corridor in our current market.

I would recommend that you find a knowledgeable real estate broker to represent you and have them make a thorough search of the market in your ideal price range. If you get an agent that has experience and a good working knowledge of the area you would like to be in, then they may know of opportunities that will be coming available soon and can let you be one of the first to see a new listing as it hits the market. The wonderful part of Eagle County is that there are so many great choices! 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.skiandteehomes.com.

Original publishing in the Vail Daily on 1/10/14 can be seen by clicking here.

How much is enough earnest money?

Dear Joan,

I just received an offer on a property I have listed for sale and I am concerned about the earnest money. First of all, the buyer has an “alternative earnest money deadline” date, saying they will provide the money in the future, not with the contract offer. Secondly, they have made the earnest money amount less than 2 percent of the purchase price, and I think that is too low. I have been told that the buyer can get their earnest money back for a lot of reasons, so not to worry about the amount. What do you think?

Dear Concerned,

In answer to your first question, it is very common to use the “alternative earnest money deadline” with a date in the future for the buyer to provide the earnest money. This is done so no one has to put up, or hold on to, a large sum of money while the buyer and seller are still negotiating back and forth hoping to work out an acceptable contract that might never happen. I think the only important consideration here is to have the money be tendered within a few business days of mutual acceptance of a contract by the buyer and seller.

Secondly, the amount of the earnest money is an important factor in a contract, in my opinion. It is true that the buyer has eight to 10 ways they can object (in a timely fashion) and be released from the contract and have all of their earnest money returned. If, however, the contract is contingent upon the buyer getting a loan, and then the buyer does not go through all the steps necessary to apply for a loan, or they fail to object to any part of the contract on or before the specified date to object in the contract, their earnest money could be at risk. Also, Paragraph 29 of your Colorado Contract to Buy states that each party has an obligation “to act in good faith” and therefore must earnestly and diligently work towards the completion of the contract. This paragraph is, of course, subject to legal interpretation, but could be cause for the buyer’s earnest money return to be put at risk for various reasons.

You should also consider Paragraph 19 of your listing agreement called “forfeiture of payments” that states that in the event that the buyer does forfeit their money, that money is to be divided 50/50 between you and your listing broker, not to exceed the commission amount that could have been earned. Therefore, unless you have made other arrangements, you need to ask the buyer for twice the amount of earnest money that you plan on retaining.

Before making your final decision, if you have a good offer and the earnest money becomes the only sticking point, you can sometimes accept less money initially and then ask for additional earnest money once all the contingencies have passed. Your listing broker can advise you on how to do this. Good luck with your sale!

A copy of the Colorado listing contract can be seen at http://tinyurl.com/colisting and the sales contract can be seen at http://tinyurl.com/cocontract.

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.

Original publishing in the Vail Daily on 1/3/14 can be seen by clicking here.

Buyer confused about survey

Dear Joan,

I am working on buying a house in the valley and the contract has a section about a survey. There are several surveys mentioned in the contract, and I have been advised to pay for an “improvement location certificate” (ILC). I’m not even sure what that is. The seller says they have a survey of the property, but my Realtor says that it is not an “ILC.” Can you please tell me the difference and why they want that certificate? My Realtor has explained it, but I am still uncertain.

Dear Uncertain,

A survey is a scale drawing of the exact location of all the borders and corners on a specific parcel of land. An improvement location certificate shows a “depiction” of the property boundaries and shows the location of all of the improvements (structures), encroachments and recorded easements pertinent to the property. An ILC used to be required by most lenders and many title companies, but rules have changed. Most companies in the valley now only require an ILC on homes over $2 million and many lenders have deleted that requirement. The ILC, though not often required, is always recommended by a competent Realtor for homes that include the surrounding land to make sure the home is actually built on the land that you will acquire in your deed at closing. Some of the older towns in the valley had lot lines that were measured incorrectly many, many years ago and consequently, all of the homes on the street actually have part of the dwelling on a neighbors property. Many of these have been straightened out over the years, but not all. Even in new subdivisions, mistakes have been made and homes have been built in the setback from the street that the town owns.

One property we sold had the barn accidently built almost entirely on the neighbor’s property. They had went off survey pins that were wrong pins. Sometimes homeowners add fences, decks, home additions, etc., that hang off the land that they own. Therefore, it is always best to spend the money to have an updated ILC so you can see the improvements or encroachments and know how far away your improvements are from your actual lot line. If there is an encroachment, it can often be legally mitigated with endorsements from the title company. However, if you purchase the property with no knowledge that part of your home or other improvements encroach on your neighbor, you could someday be forced to remove the part that encroaches. Not a pleasant thought. Take the advice you were given and have your Realtor recommend a good surveyor. An ILC from a licensed surveyors is less expensive than a full land survey and is often well worth the price. Best of luck to you.

Joan Harned is an owner and 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 her at joan@teamblackbear.com, 970-337-7777 or www.skiandteehomes.com.

Original publishing in the Vail Daily on 12/27/13 can be seen by clicking here.

How is the real estate market doing?

Dear Joan,

I think I am reading good news about real estate prices and sales in our valley in the local paper. However, I am not sure enough to go ahead and put my property on the market and feel confident I can get the price that I want. Is the real estate market truly better this year? Are prices going up? What is your interpretation of the market in general?

Dear “Unsure,”

I can’t tell from the information you gave me about “the price you want,” but I will happily give you my opinion of the market in general. We have several great title companies in our valley and one of them is Land Title, which gives us sales statistic updates regularly. Land Title’s most recent report shows that we are up 8 percent in the number of transactions in Eagle County over 2012. Also, we’ve only had 120 bank owned sales this year, compared to 313 last year. Having fewer bank owned sales has helped stabilize pricing. As far as price increases go, it is difficult to assess each of the 32 areas in the county simply by taking the average price of a single family home. I say this because home sizes vary greatly and some areas have a low volume of sales, which provides less than realistic data.

Although price per square foot doesn’t tell the whole story, it might be a slightly more accurate measure. Overall, the average price per square foot for single family homes is up 1 percent year to date from 2012. But the real story is in the different areas of the valley. To determine what your neighborhood is experiencing, here are communities and the change in price per square foot from 2012: Vail Golf Course, 133 percent; Vail Village, -7 percent; Lionshead, -8 percent; Minturn/Redcliff, 36 percent; Eagle-Vail, 10 percent; Avon, -23 percent; Edwards, 27 percent; Cordillera Valley Club, 20 percent; Cordillera (south of I-70), 0 percent; Eagle, 8 percent; Gypsum, 23 percent.

Once again, this doesn’t tell the whole story, as some areas were harder hit so their increases are greater in a recovering environment. You can see that we are generally on the rise, and I can definitely say the “feeling” of stability is back.

Also, don’t forget that if you are going to buy a new property, while you are waiting for your price to go up, chances are the price of your next property is rising also. You may not end up better off financially by waiting. An experienced broker can help you interpret your neighborhood and make this decision.

Joan Harned is an owner and 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 Harned at Joan@teamblackbear.com, 970-337-7777 or www.skiandteehomes.com.

Original publishing in the Vail Daily on 12/20/13 can be seen by clicking here.