Results a mixed bag in online search for property matches

Dear Joan,

I am ready to start looking for a property in the Vail Valley. I have a family with diverse interests athletically, and my wife and I have very different concerns about what is important in a home. We have been looking online, but I have recently heard about online property matching.

Apparently, there is a way to search for properties by entering your lifestyle desires, proximity to favorite spots, travel time to specific recreation sites, etc. The information I have read is even talking about that some day there will be a hookup with your Facebook likes and you can click a button and they will automatically know all of your preferences. What do you know about this new way to search? Would it make it easier for my particular family to find everything they want or need? I would love your insight. Thank you.

Dear Modern Family,

As you know, real estate is big business, and people are always trying to find ways to get a piece of that pie. You are right — there are several apps and some advertised companies working on this concept. There are also dozens of other entrepreneurial ideas that are in the works in order to capture some of the real estate market dollars.

The concept of gathering of all of the personal preferences of everyone on the web is being done daily, I believe, as frightening as it may seem. At the moment, property matching has found limited appeal in a few big cities where simply entering a few parameters — such as price, number of bedrooms and area — can turn up hundreds of homes. It is very confusing to the untrained eye. In our community, there is not nearly the amount of inventory to choose from — in some areas and price ranges, there are very few.

I am not saying that online searches are not important. I think they are becoming more important. I have likened the property pictures and written description to online dating sites. If a buyer gets hardly any information, or what is shown, is poor quality, and the pictures are ugly and not plentiful, then buyers simply go on to the next property.

Truly, your best search should be for a knowledgeable Realtor who will take the time to listen to all of the diverse parameters your family has for choosing a property.

That Realtor will show you the best matches in the areas you ask about and will then show you nearby areas that might even have better matches that you might not have thought to look at.

Of course, you should look online, but when we are showing property every week, we always hear, “Wow, this looks so much different than it did online!” Sometimes it looks better, but often the pictures only showed the best parts. There is no substitute for a dedicated agent who concentrates on finding what works for you, and we have some excellent agents in this valley. Good luck finding the right one!

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 wwwSkiAnd TeeHomes.com.

Where can I find a good agent?

Dear Joan,

I have been trying to sell a property I own in the resort here, and I have changed real estate agents twice and am now looking for a third ... and better agent. I have made numerous marketing suggestions, but neither of them have used my ideas. All they ever said to me was I needed to lower the price. Well, anyone can sell a property if the price gets low enough! I don’t need to sell, and I am willing to hold out until I get a fair price. I know exactly how much money I have put into this property and I will be content to pay the commission, closing cost and recuperate my entire investment and nothing more. Am I being unreasonable? Where can I find an agent that will see the value I have put into my place and market well enough to find a buyer who will appreciate it?

Dear Disappointed,

I am not sure where to start answering your questions. Let’s talk about fair market value and go from there. If you bought a blue chip stock 10 years ago for $200 a share, and today it is selling for $150 a share, then you can only get $150 a share right now. The fact that you paid more for it, or that it went up even higher than $200 a few years ago or that there are forecasts that it may go higher again, makes no difference on what it will sell for today. You can only sell it right now for the fair market value. And, as far as marketing goes, no amount of fancy marketing can sell a property that is badly overpriced. If you have a grocery store and you are trying to sell milk for $15 a gallon and a store a few blocks away is selling milk for $5 a gallon, then you can use search lights, musical bands, drones and aerial banners and the public is still going down the street to buy the milk for $5 a gallon.

So, I would say, that your next step is to find a knowledgeable, honest, straight-forward Realtor that will tell you what price it will take to generate interest and get a good offer on your property. Most of us go to a large number of classes, listen to webinars and study the market daily so we know where it is best to spend our dollars to get the most advertising bang for the bucks we spend. Sometimes Realtors spend money on marketing your home in places that will get them more listings, not necessarily to sell your home. Most successful Realtors market on the Internet extensively and network continuously with other brokers, the public and their personal sphere of influence. When you find the Realtor you have confidence in, go ahead and ask them what price they think it would take to sell your home. Since you do not have to sell, you might just choose to wait until the market goes up. However, no one is certain when that will be. Do not ask your next Realtor to do the impossible and sell your home for more than it is worth in today’s market, or you will be disappointed again. Best of luck to you this time around.

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.

Seeking long-term portfolio advice

Dear Joan,

I would like to know if there are any real estate agents who give general advice on the market, including possible real estate portfolios that could be created, but who are willing to not close a sale for a year or more? I have always worked with a financial adviser to invest my money in stocks, bonds, real estate investment trusts and annuities. I have worked with several advisers over the years and none have been willing to direct me to real estate investments. Doing a real estate investment trust was as close as I ever got.

I am now convinced that I want rentals or land ownership included in my plans for the future. I never move quickly, as I prefer to be a student of any new subject. I would like advice from a Realtor who is willing to feed me data and educate me for as long as it takes for me to be comfortable to go forward with one or many purchases. Does such an agent exist in this valley?

Dear Potential Investor,

You may be surprised to find that we have many Realtors who have great patience and are very knowledgeable. In our valley, it is not uncommon to work with clients for two or three years before they actually buy something. It is usually because the clients only visit a few times a year and they are intent on finding what they like at a price they are comfortable with. Therefore, it can take a lot of searching and patience to wait for the right property to come on the market.

As far as the knowledge part goes, you can investigate who could help you in various ways. You can, of course, search keywords online and looking at individual agent’s websites. Social media is often a help, too. If you think there is a certain area or type of property you might be interested in, you can interview agents that deal with that location or that type of property.

However, you may not want someone who specializes in a few more limited things. Single-focused Realtors could miss some great opportunities for different types of investment properties that lie throughout the valley that they have no knowledge about. Ideally, you are looking for an agent who has a broad base of knowledge — in residential, commercial and vacant land — and is willing to help you search different types of investment properties in different locations.

I would probably check with the local title companies, local attorneys and local business organizations and ask for names of Realtors you can interview. When you find the right one you will know it, and your portfolio of properties will take off. 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 and www.SkiAndTeeHomes.com.

Will Realtors fade into cyberspace?

Dear Joan,

I have a friend who says she is going to get her real estate license and start selling property in the Vail Valley. I told her I thought she was crazy because there are hundreds of agents here already and besides, it won’t be long before the Internet will make agents unnecessary. Needless to say, we had quite an argument. We decided to ask you, although I don’t think you will be truthful about the possibility of your job disappearing. Your thoughts?

Dear Friend of Soon to be Realtor,

Please tell her to sign up for real estate school as soon as she can, if she is a good salesperson, is honest, cares about people and is willing to work and constantly learn throughout her whole career. There is always room for talent and dedicated hard workers. Real estate is a place you can build your own successful business to whatever income amount you want. There are models and systems available to make you successful your first year. Have her check around and find out who can teach her those systems in order to show her what she needs to do, and then have her do it.

As far as real estate agents fading into cyberspace, I believe just the opposite is happening. According to the latest National Association of Realtors statistics on “where the buyers found the home they purchased,” the Internet comprised less than 50 percent (actually 44 percent) of responses. This does not mean that locating their dream home on the Internet kept them from using a Realtor for the purchase. It means they saw the property they eventually purchased on the Internet first.

The next-highest statistic is that the Realtor found the buyer a home they had not found on the Internet, which was reported at 33 percent of the time. In this case, they would not have known about the home they ended up purchasing if it was not for the Realtor they used. The next-highest statistic shows that 9 percent of home buyers find their house through a friend, relative or neighbor. The lowest statistic for finding homes sold nation wide was 1 percent for homes found in print media (I believe that number is higher in our area).

What these statistics don’t show is that in general, most high-net-worth individuals, as well as investors, first-time homebuyers and even local move-up buyers all want to be represented by a professional in a transaction that will demand a large investment of their net worth.

Just because you can go to YouTube to see a video on how to extract a tooth, remove an appendix or file for a divorce, it does not mean you don’t want to find and pay for an expert to do it for you.

The National Association of Realtors statistics support this theory when they report that “87 percent of buyers purchased their home through a real estate agent or broker — a share that has steadily increased from 69 percent in 2001.” Well educated, professional Realtors are becoming more important, not less. I look forward to working with your friend in the future.

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.

Acquisition of land leads to confusion

Dear Joan,

I acquired a piece of land in another state through an accidental investment. I gave the original owner a loan, and I ended up owning the property when he went bankrupt. I am now selling the property, and I know very little about it. I just discovered that I actually acquired it by a quitclaim deed. My real estate agent wrote on my listing agreement that I would give a general warranty deed. I spoke with a friend in real estate who said that she would never give a general warranty deed if she got a quitclaim deed alone. What does that mean? What difference does it make? Any help would be appreciated.

Dear Confused Seller,

I would probably give the same advice your friend gave if I had a client in your shoes. Let’s start at the beginning — a general warranty deed provides the greatest protection to the buyer because the seller is legally bound by certain strong, enduring covenants or warranties. Although each state has some small differences, a general warranty deed gives the following basic warranties:

• A covenant of seisin says that the seller covenants that he owns the property and can convey it and if that covenant is broken, then the seller may owe damages up to the full purchase price to the buyer.

• A covenant against encumbrances means that the seller warrants that the property is free and clear of all liens and encumbrances and the seller could be sued to pay to have any removed that might show up.

• A covenant of further assurances says that the seller promises to obtain and deliver any instrument needed to make the title good.

• A covenant of quiet enjoyment says that the seller is guaranteeing that the buyer’s title is good against any third party who might bring a court action to establish superior title to the property.

• A covenant of warranty forever says that the seller promises to compensate the buyer — forever — for any loss, if there is a title defect.

On the other hand, the quitclaim deed you received gives the buyer the least protection of any deed. It carries no covenants or warranties and generally conveys only whatever interest the seller may have when the deed is executed. Therefore, if the seller actually has no interest in the property, then the buyer acquires nothing. However, a quitclaim deed can convey property as effectively as a warranty deed if the seller has good title to begin with, but it has no guarantees or warranties. Consequently, most attorneys I know recommend not to give more than you received. Hence the advice not to give a general warranty deed when you received a quitclaim deed. Talk to your attorney and your agent to see how you should convey the property. There are other deeds as well that might work better. Good luck!

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 and www.SkiAndTeeHomes.com.

What to do about surprises at closing?

Dear Joan,

I am purchasing a​ very​ nice property in the valley. I made a fair offer, which was accepted, and things were going along well until I was informed that the owner is taking several items that I felt were​ ​attached to the purchase, thus staying with the property. I hate surprise​s,​ and I hate conflict even more​. I think this situation is wrong, and I can’t get much information about what to do from my Realtor.​​ Any suggestions?​

Dear Surprised,

I couldn’t agree with you more that it is not good to be surprised near a closing date of a contract. The frustration you are experiencing, unfortunately, happens much more than it should, but can also be avoided. ​This is such an important issue that it is addressed on the first page of the 17-page Colorado Real Estate Contract to Buy and Sell Real Estate. Also, in an attempt to make clear what stays and what it does not, the Real Estate Commission changed the language this year, so it no includes “fixtures.” Fixtures were defined as “personal property that has been so attached to land or a building that, by law, it becomes part of the real property,” as defined by the 2016 Modern Real Estate Practice textbook.

Now, that confusing “fixtures” term has been removed and the contract just speaks of “inclusion — attached” and says that a list of standard items are included unless excluded under “exclusions.” The new contract goes on to mention “inclusions — not attached” and includes a large list of items that, if present on the property and not specifically excluded, are considered to be included in the sale, even though they are not attached. It might be quite a bit more work on many sales, but I think the safest way to proceed for buyers and sellers agents is to make extensive lists of inclusions and exclusions.

If the seller wants to take very little from the property, he or she might simply make an exclusion list to attach to the sales contract. However, the buyer still might want a clear list of all items included, so that it could be checked over on the final walk through before signing the paperwork.

I can remember doing detailed lists of items included for a buyer I had who was buying a large, fully furnished home. We recorded what seemed like a hundred decorative chickens of every size and color — but the buyer wanted it to look just like it did the first time he saw it, and so nothing was removed. It sounds like you need to talk to your Realtor and express your concerns to see if something can be worked out and to make sure there are no more surprises before closing. It might not be too late to do an amendment with a complete inclusion and excluded inventory list. Good luck!

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 and www.SkiAndTeeHomes.com.

Is it time to worry about the economy?

Dear Joan,

I am starting to worry about the economy again. I could make a whole list of negative things happening in the world and can argue all day long about what is​ wrong and what could get worse. However, from what I have been hearing, things are getting better. Locally, there are more jobs, there is more construction activity and the real estate market is ​quite ​active.

Does the conflict between my worries and the optimistic things I’ve been hearing mean that I am the only one worried about the economy in the valley and the only one afraid to buy or sell now?

Dear Afraid,

I am sure there are other worriers here. Overall, however, we have an optimistic group in the valley and, true to the law of attraction, if you are feeling and acting like things are going well, they often do end ​up​ going well. ​

To determine the tone of our real estate market, one sign I like to note is when buyers are looking ​at​ and buying discretionary properties. Not only does that ​include​ buying second homes in our resort areas, but also commercial investments and ranch properties — none of which are necessities, or defined as your primary home that you live in all the time.

Everyone needs shelter, especially in the mountains. ​N​o one really needs discretionary property​ but it certainly is fun to own.

We have had buyers looking at ​and contracting ​nice ranches throughout December and January this year. ​This is not always the case, since most ranch buyers usually want to see the real dirt and not just snow. When showing some of them we have had to use snowmobiles even to approach the properties. Unless you are raising livestock or crops​​, a ranch is a fun purchase to be used for recreation, hunting, family gatherings and the like.

Second-home buyers are back and we have lots of buyers moving up in​ price on their primary residences so that ​the homes they buy are no longer​ necessities but are more similar to luxurious vacation homes.​

‘DON’T STAY ON THE SIDELINES’

All of this activity makes me believe in the health of our economy. Our buyers are feeling confident in their jobs or businesses here and across the nation, so they are starting to enjoy that wealth again by buying these properties.

I predict that we have at least four more good years, so don’t stay on the sidelines. I am guessing — like everyone else — but remember: positive feelings bring more of the same!

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, a past Realtor of the Year, a 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.

Is it time to buy?

Dear Joan,

Ever since I went to see my grandmother last month, I have been rethinking my plan to rent my housing for my whole life. I am in my 20's, and people in my generation doesn’t really talk about buying a home. We like to stay mobile and free to spend our money on trips and concerts and exciting recreation adventures​ that are great fun.

However, when I visited with Granny, she had trouble remembering almost everything, except her first and only home. She kept talking about the corner window in her kitchen and how she had made the curtains herself. We would try to talk about other things and then she would say, with such pride, how she fell in love with that house when she saw her beautiful corner kitchen window.

She was a single mother at the time and she used all her savings, and we all loved that home as long as she could live there.

How important do you think it is for a person my age to buy​ a​ home? My friends think I am nuts to even be considering it now.

Dear Nuts,

What a nice story. Your home or​, for some, your second home, ​is​ where so many memories are made when friends and family get together, as well as on special occasions. Some say home ownership is not for everyone, because it does involve responsibility, some maintenance and attention and it is stationary, but there really is no better first investment. There may be tax benefits, you may utilize a forced savings program and hopefully,​ ​you are​ building ​equity ​from the first day​ ​(you need a great Realtor to help you accomplish this).

Did you know that over 30 percent of the home sales in the U.S. are to first-time home buyers? Also, the interest rates are still very low, which enables buyers to get more for less. D​o​ you realize that if you could get a $400,000 mortgage now at 4 percent interest rate, but ​if ​instead you waited a year or two and the rates went up to 5.5 percent interest, that you would be paying $362 more a month for the next 30 years?

THINGS TO CONSIDER

There are several factors for you to think about when you are making your decision to move forward when looking at homes​ ​​with your Realtor​. ​Consider where you are in life.

For one thing, what life events are coming up in your future​?​ Graduation, marriage, children, more schooling and other events may be relevant. Another item to consider is your job status and professional plans. Your ​current investments, or lack of them​,​ may increase the urgency to buy now​ as well.

ASSISTANCE MOVING FORWARD

Your Realtor will likely advise you to visit with a lender and discover your next step in working toward qualifying for a home loan. As long as you get good ​Realtor​ and receive lender advice, I would say that if you move forward now, you will ​start to experience a pride similar to your Granny’s, and hopefully you will be on your way to financial stability for your future. 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 and www.SkiAndTeeHomes.com.

Should I become a Realtor?

Dear Joan,

Someone recently mentioned that I should consider selling real estate. I’ve never considered it, though I love looking at houses in the paper, and I often stop by when I see an open house sign. This person said it’s pretty easy and that I would make a lot more money and work fewer hours. Is all of that true?

Dear New Realtor(?),

I think that it’s great that someone is encouraging you to explore a job​ that​ I feel is one of the most exciting, continually changing, ever-expanding and rewarding careers. I​ think that almost everything said is true, except for the suggestion that the work is easy and you’ll work fewer hours. Despite this, I do agree it is a path well worth exploring if you enjoy working with people and ​doing ​sales. Most of life is selling, whether you are convincing your husband or your children or your boss on some idea. ​If you are good at selling, then you have a talent that can take you anywhere you like.​

Here are the facts about getting your Colorado real estate license. You have to complete a 168-hour training class. You can now do this locally by attending a four-hour class weekly for six weeks while studying online, reading the books and taking the quizzes.

This process gets you ready to pass the course necessary to take the PSI Colorado Real Estate Exam. This exam is made up of two parts: a national section and a Colorado section. ​You should fully expect to spend 25 hours per week in study and review for the six-week period and then sign up and take the test within seven to 10 days after completing the course.

Once you have your license​,​ you will look for a company that is well established, has integrity and will accept and train new agents. You want a company that will guide you through the process of writing your own business plan, teach you and provide you with weekly education classes and a mentor or coach to help you through the process.

I would not count on working fewer hours​ and making more money as you start your new career. ​However, you may have more flexibility with the hours you work. The potential is unlimited, but most successful agent​s​ ha​ve​ put in long hours and earned every bit of their good reputation​ and wealth​.​ ​Check with the Vail Board of Realtors to find​ out​ where to ​get more information ​on local classes. It is at least worth​ looking into​ this exciting, lucrative occupation​ if you are looking for more excitement and unlimited wealth opportunity.

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, a past Realtor of the Year, a 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.

What needs to be fixed by seller?

Dear Joan,

My husband’s perfectionism is driving me crazy! We are buying a property that is not new, and he thinks the seller should make it like​ it is​ new again. We have just had someone inspect the property and now my husband is telling our Realtor to write up every single thing the inspector noted, and more.

I think the home is fine, and we have it at a good price. Now, I am afraid we will lose it because the seller will get angry and tell us to move on. What do you suggest?

Dear Realist,

You have a truly difficult situation. Inspectors write up everything that is not perfect — but not with the intention that a seller will indeed make all the cosmetic changes. After all, you saw most of the imperfections when you made an offer and then agreed upon a sales price. If there are health and safety issues ​that ​were discovered, then the situation should be handled accordingly.

You need to ask your husband if what he wants to write up as objections are really worth losing the property over. There may be a back-up offer or another interested party waiting to see if your deal does not go through.

Possibly, you and your Realtor can establish a position of compromise in which you​r husband prioritizes the items to be fixed instead of asking for the small items easily and independently fixed.

Also, bear in mind, the seller will probably not agree to everything you ask for, even on an abbreviated list. ​Presuming you finally​ have agree​ment​ on how you will resolve the inspection objection​ list you send, your Realtor will advise you that you need to discuss details with your lender and how to proceed from there, if you have a loan. ​

METHOD OF RESOLUTION

Your​ Realtor will instruct you to ask your lender whether the method of resolution you have chosen will have a detrimental impact on your ability to receive the loan you desire and if it will cause any delays in the lender’s processing and funding of the loan. How the resolution is handled could also necessitate calling for a more extensive inspection process​ at your expense​.

These inspection objection and inspection resolution ​processes ​need​ to be handled by competent lenders and Realtors so that there are no unintended consequences. Just make sure you have the whole procedure explained before making any ​quick​ decisions. ​

A knowledgeable, trusted Realtor will be able to help you through this process seamlessly because we Realtors encounter similar situations on a regular basis.

I hope your husband will proceed by gathering all of the facts and consulting all of the relevant parties. 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, a past Realtor of the Year, a 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.

How important are mineral rights?

Dear Joan,

I am finally going to own some acreage I can call my own! I have been saving and looking for years. Now I have found this sweet spot — my dream property — on a creek that backs up to BLM. The only problem is that now, as I read over my contract to purchase, I see that it includes some really scary stuff about the mineral rights, which I know do not come with the land. How important is it that I own the rights to the minerals on property I buy? Am I in danger of a big oil company coming in and putting a well right in front of the cabin I plan on building? Should I refrain from going forward with my dream purchase? Thanks.

Dear Mineral-less Buyer,

You are in a situation common among land sales in Colorado (and the West). Many of our states’ mineral rights were originally reserved by the federal government when they issued patents for only the surface rights of the land they sold to entities and individuals. Then, during the oil boom, many land men went around buying or leasing mineral rights from the land owners who did actually own the minerals under their ranch land. This is a very simplified picture, but most sales of Colorado property do not include mineral rights.

Therefore, several years ago, the Colorado Real Estate Commission added another clause to our purchase contracts in paragraph 8.7 Title Advisory. Part of this paragraph states that “the surface estate may be owned separately from the underlying mineral estate, and transfer of the surface estate does not necessarily include transfer of the mineral rights or water rights. Third parties may hold interests in oil, gas, other minerals, geothermal energy or water on or under the property, which interests may give them rights to enter and use the property. Such matters, and others, may be excluded from or not covered by the owner’s title insurance policy. Buyer is advised to timely consult legal counsel ... ”

This means that your safest bet is to hire a mineral rights attorney. At the very least, you are advised to investigate a “surface owners” rights so that you can feel comfortable with your purchase. The clause above is in every contract to purchase in Colorado so that you know who owns what, and which protections are available in the event that the mineral right owners would exercise their rights to take the minerals they own under your land.

Now remember, whether you are purchasing a Beaver Creek condo, a Vail luxury home, a property in downtown Denver or acreage anywhere in Colorado, this clause will be in your contract. Rest assured that in addition to some risks, there are also protections for surface rights and homeowners.

Please have your agent point you in the right direction to investigate what can and cannot be done on your land. After selling ranches and all types of properties in Eagle County for nearly 30 years, I have not seen any mineral extractions here ... yet. This has been an issue in other counties in Colorado and your competent Realtor can give you more information on this and advice to help you make a good decision.

Mineral rights should not be feared, but it is important that you understand what you have, what you don’t have, and what your rights are. Good luck on your 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, former 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.SkiAndTee Homes.com.

What is a 'luxury' home?

Dear Joan,

I hear a lot about the luxury market in the Vail Valley and would like some clarification on what exactly that means. I presume it mainly refers to the ski resort areas of Vail, Beaver Creek and Arrowhead and applies to multi-million dollar homes. ​Do most agents in the valley primarily sell luxury homes? It seems that most Realtors emphasize that category. I am not poor, but I do not consider myself a luxury buyer. I want the best Realtor I can find, and especially one who is willing to work and help me within my price range. How do I find that person?

Dear Non-Luxury,

This a great question and there is a lot of confusion about who sells luxury and who doesn’t — or which Realtors do both. In my world, it is commonly accepted that any property that is $1 million or more can safely be called luxury. That being said, we all know there are some older, not updated million-dollar condos in Vail that you would not walk in and think, “This is luxury.” And, there are some homes further from the resort area in the valley that are gorgeous but may be less than $1 million.

So far in 2015, there have been 342 residential properties sold for $1 million or more (sometimes a lot

more) and there have been 894 residential properties sold for under $1 million. Since there are just a little over 600 Realtors in our Vail multiple listing service, it is obvious every Realtor is not selling luxury all the time.

My suggestion is to call several Realtors and tell them what you are looking for. Ask them to send you some information and homes which fit your parameters. It will not take you long to figure out who is the most knowledgeable and helpful.

I think the more important question is, what kind of luxury service you are going to get from the Realtor you choose? Some of us sell everything, in all price ranges, because we think it is important to know the broad spectrum of our market so we can give our clients all of the information they need to make good financial decisions. We often help our clients’ children and parents find their first or last properties, and it is a great help to understand the whole market. Our valley is not so big or complicated that one agent could not know, or at least access the resources to find out what their client needs in each area.

Do some, or many of us, have more knowledge in one area than another? Yes, but I believe the more important factor to consider is whether or not your Realtor wants to help you find what you want — in the price range where you are comfortable.

My suggestion is to call several Realtors and tell them what you are looking for. Ask them to send you some information and homes which fit your parameters. It will not take you long to figure out who is the most knowledgeable and helpful. Have a great holiday and good luck finding that agent that will provide just what you are looking for!

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, a past Realtor of the Year, a 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.

Home is smaller than we thought!

Dear Joan,

After months and months of searching, we have finally found the perfect home. We have it under contract and have received the appraisal for review. The appraiser measured the property and says it is about 100 square feet smaller than was represented in all of the marketing material. Now we feel a little like we are being cheated and maybe we should get a discount on the price. Our Realtor said we could try, but he does not think we will be successful. How should we feel about this and what would you do?

Dear Square Footage Concerns,

Unfortunately, you are not the only one confused that there really is no universally applied standard for measuring square footage. The American National Standards Institute method of measuring a house uses the exterior measurements of the home. This method is usually recommended by the National Association of Home Builders and may come out with a larger total square footage than the method of measuring each room and coming up with an aggregate total. Measuring the interior of rooms generally excludes about 6 inches for every wall, which may or may not be added back in to the final total. ANSI only counts habitable space that is finished and heated and does not count patios, porches, garages or unfinished storage rooms or basements. However, developers may choose to include what areas they want on their promotional materials for a project, but usually with a disclosure. Now you can see that advertising square footage is a big issue for Realtors.

There have been very large lawsuits in the past, so the Colorado Real Estate Commission has come up with a separate form called the square footage disclosure that we sign on every home purchased. Hopefully, you received one and signed off on it after your Realtor explained it.

The first section is to be checked if the Realtor did the measurements and then the Realtor is to disclose which method he or she used, and there are five choices. I have never seen this section used by a Realtor.

Then the second paragraph ­— one that is almost always checked, reads that the Realtor is relying on another source for the square footage published, and the Realtor ought to mark the source used.   Right below where the square footage is filled in, the form reads, “Measurement is for the purpose of marketing, may not be exact and is not for loan, valuation or other purpose. If exact square footage is a concern, the property should be independently measured.” In my opinion, even seeing different calculation of square footage, you are still getting the exact same house you fell in love with. In most cases, no one is trying to cheat anyone else — it’s just an imperfect system we use for calculation. I hope you will go forward and totally enjoy your wonderful new home. Happy holidays!

Joan Harned is an owner and broker for Keller Williams Mountain Properties and heads up Team Black Bear, her own real estate team. She 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 is 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.

Should I follow agent to new company?

Dear Joan,

I have used one real estate agent in the valley for several transactions I have done over the last few years. Now today I got a letter from him saying he is changing companies. I was surprised because I have always considered him as pretty successful. I have also considered the company he was with as one of the more successful companies in the valley, too. Why would he change companies if he is not leaving the area? And do you think it will make a big difference that he is not with the company I considered so successful? This change does not make any sense to me, but I probably will continue to use him since he does such a good job for me. What are your thoughts?

Dear Confused,

I would say that although you were surprised, you are making a great decision to stick with the agent that has done such a good job for you. Real estate service and knowledge comes from individual agents, not companies. The company they are with can support them and give them tools to use, but ultimately it is the individual agent, and/or their team, that has to deliver the information, service and negotiating skills that help you be successful in your real estate transactions. It actually is not as uncommon as you think that agents find an opportunity to advance their careers and move to a new company. The moves are often initiated by some less than perfect conditions at their current

brokerage, which could range from working conditions, personnel issues, basic philosophical differences or lack of freedom to build their business as they see fit. If they are now with a reputable company that is a member of the Vail Board of Realtors, then they must follow the Code of Ethics when dealing with the public and other agents, so I would not be worried. I would say that most agents are very careful about making a change in companies and therefore usually have a lot of good reasons for making the change, since it can be costly and time consuming to switch. Therefore, I would guess your Realtor can give you several good reasons for the change when you ask, and hopefully one or more of those reasons is that they feel they can better serve you by their increased opportunity for education, coaching, networking opportunities, marketing skills, and innovative technology. I would suggest you call your agent and thank them for notifying you and tell them you are curious about why they made the decision to change. Your agent will be pleased you took the time to call and will feel good that you are genuinely concerned with their career decisions. Then you will feel better and won’t have to wonder any more! Happy Holidays!

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.