National Association of Realtors statistics show that home prices have fallen by an average of 7 percent nationally in the past year. But the value of home owners' investment in remodeling projects has declined only 3.86 percent on average between 2007 and 2008. A survey completed in midsummer said home owners could expect to recoup a national average of 67.3 percent of their investment in 30 different home improvement projects. At the height of the housing boom in 2005, home owners could expect to recoup a national average of 86.7 percent on projects.

Despite home price drops in many cities, remodeling projects are holding their own as a way for owners to add value.

The temporary loan limits are going away. The limits are going back to the following:

Conventional loan limit:  $417,000     FHA loan limit:  $379,500

Rates have inched down a bit this week. You can secure a 5 7/8 rate with good credit and less than 6.5 percent for FHA.

Here is a delicious recipe to enjoy with your friends and family over the Thanksgiving holiday. It's very easy to make and will surely please your holiday guests.

2 cans "Kuner" pumpkin (prepare per pumpkin pie recipe on can)

1 box white or yellow cake mix

1/2 cup chopped pecans

1 cup melted butter

Pour prepared pumpkin mixture in 9x13 size baking dish. Sprinkle cake mix over pumpkin followed by the pecans. Drizzle melted butter evenly over the pecans. Bake at 350 degrees for 1 hour.

All La Plata County Residential Listings Comparing October 2007 to October 2008

Total active residential listings 1109     Compared to last year at this time 689

Average days on the market  176         Compared to last year at this time 166

Total number of sales  640                     Compared to last year at this time 809

Average sales price  $382,403             Compared to last year at this time  $392,316

Overall appreciation or depreciation ---  2.5%

 

 

• How do you price the property? A market analysis compares similar properties – sold and listed for sale - within your area and reflects the most current trends in the market. An appraisal is more exact in comparing like properties that have sold over a period of time.
• How do you show the house since you know all of its faults? Are you familiar with what must be disclosed to a prospective buyer?
• How will you advertise? How big an ad will you run, how often, and how will you write the ad. How much will advertising costs?
• How many prospective buyers will you reach with your ad?
• Have you investigated the financing options for your home?
• How do you distinguish the “lookers” from the “qualified buyers”? A buyer must have the desire and the ability to be qualified.
• How do you maintain security while strangers are touring your home?
• How will you show the property and point out its best qualities without being over sensitive. 
• How do you follow up on prospective purchasers without seeming anxious?
• How can you keep the negotiations professional and avoid the natural sensitivity when dealing with your own property?
• How will you schedule time for showings without disrupting you life?
• How will you write the contract? How will you ensure that it is valid and enforceable? How will you protect your rights?
• How will you handle the earnest money deposit so that it will be acceptable to the buyer and serve its purpose for you?
• How much in additional costs will you incur in having a contract prepared, the title search completed, the documents prepared, and a closing arranged?
• How will you find a closing company acceptable to you and the buyer?
• How will you handle the situation if the buyer does not perform as promised?
• How will you ensure the buyers have been pre-qualified to buy by the time they look through your home?  

• A Realtor is a licensed professional with numerous hours of real estate education. 
• A good Realtor knows the market.
• Realtors are sales people with years of experience marketing properties.
• No transaction is too big or too small.
• The market value of your home is carefully analyzed. The objective is to list your home for the best possible price.
• You can get up to date information on market conditions.
• Your Realtor understands the various types of financing and its impact on your proceeds.
• You can get a good estimate of the costs of selling your home and know how much you will realize from the sale.
• The advertising is planned and effective. Your home is marketed over the surrounding area with an effective proven method. With your permission, your home will be submitted to the Multiple List Service, making your home available to a vast network of real estate agents.
• The buyers are pre-qualified. Your home is shown to interested people capable of buying your home.
• Your home is always shown by a sales person: offering you security.
• The sales person accompanies the buyer and can point out the strong points of your property. They can be objective and help the buyer see beyond flaws.
• Open Houses are a great vehicle for exposing your home to buyers when hosted by a Realtor.
• The Realtor will follow up on potential buyers and determine their interest or get feedback.
• Your Realtor can negotiate the best price in a professional manner.
• The contract is written to protect your rights, and the items in small print are carefully addressed. The Realtor can carefully explain the terms of the contract. Any items you may not want to include in the sale can be carefully excluded.
• The title search, document preparation, closing, payment of taxes, and all the small details of the transaction are handled for you.
• In addition, the Realtor can help YOU find a home.

Since 1985, The Wells Group has hosted its Annual Holiday Party for clients, friends, business associates, and community members. Our first party was held in the front office at 901 Main Avenue. It's hard to believe that this annual party could once fit in our Main Avenue space. Last year, as had become customary, party goers overflowed the entire Strater Hotel and Diamond Circle Theatre.

Our holiday parties have served two purposes:  the opportunity to thank our clients  for their patronage and increase our contributions to the community we serve. In fact, thanks to the voluntary contributions of guests and brokers who attended, we have contributed many thousands of dollars to designated local charitable organizations each year.

The very success of the party no longer allows us a venue large enough for our guests to be comfortable. It has become increasingly difficult to focus on you, our clients; our most valued guests. So, for 2008, instead of hosting a holiday party, The Wells Group would like to acknowledge your patronage by making a charitable contribution to a local organization on your behalf.

Our brokers have identified the following local charitable organizations to be recipients of this year's contribution:

1.  United Way

2.  Boys and Girls Club of Durango

3.  Alternative Horizons

4.  Project Merry Christmas

To ease your concerns about the current mortgage industry, rest assured there is money available to borrow; the mortgage lenders are merely adjusting their processes in an effort to adhere to stricter guidelines. The following four areas of mortgage lending are changing to some degree:

1.)  Documentation is more important and required. This includes tax returns, clarifications of large bank deposits, income received in the past 30 days, etc.

2.)  Pricing of loans includes interest rates and loan origination costs. The most significant factor in how much or little you pay for your loan is dependent on your credit score. Those people with credit scores below 740 will have to pay higher interest rates and points. Now is the time to pay attention to your credit history and find out where you stand with your credit score.

3.)  Loan-to-value ratios--There are no more 0% down conventional loans. Conventional loans require a minimum of 5%, FHA requires a minimum of 3% and 2nd home/investment purchases require a minimum of 20% down. You can still obtain a VA loan with 0% down but please consult your mortgage professional for the necessary requirements.

4.)  Property types--loans for condos and manufactured homes are becoming more challenging.  The required down payment % is higher in order to secure decent rates. With condos specifically the % of owner occupied residents must be at a certain level for certain loan qualifications. Many lenders are requiring a minimum of 75% owner occupancy rates in condo complexes.

So with these tightening guidelines there is challenge, but please remember there is money available to borrow.  The first step is to find a local lender with the knowledge and expertise. We are happy to recommend some reputable lenders in La Plata County who can ease you through the loan process. Please contact us direct at (800) 955-0259 x 1036.

December is a Great Month to List a Home. . .

Please be aware there is an email scan allegedly conducting a survey for Walmart. The survey asks you to rate your recent Walmart visit, and after completing the survey they offer to pay you $150 for this information. All you need to do is provide your credit card information so they can credit the $150. Needless to say you do NOT know who you would be giving your credit card info to.

This is the perfect time to buy--wait too long and inflation is likely, prices will increase and interest rates will go up. We have more price reductions than new listings and closings--this is the time to purchase a property in La Plata and Montezuma County. Take a look now at what is available:  http://www.durangohomespecialist.com/property_search

Here is a great opportunity to live in the desired neighborhood of Shenandoah. This lot has so much to offer with its year round pond, La Plata views, and 15+ acres. The level lot is perfect for horses and a soil test has been completed. Water tap is paid and roughed -in driveway has been completed. Everything is ready for building your dream home. Paved road access within subdivision. This lot is going off the market soon so do not delay. Check it out:  http://www.durangohomespecialist.com/inc/pmisc?pid=275

 

This property offers a lovely setting in Mancos on 35+ acres. There is a large, well constructed building already in place that could be lived in while you build your dream home and then converted into a barn, shop, etc. Take a look: http://www.durangohomespecialist.com/inc/pmisc?pid=261

 

Here are some interesting facts taken directly from our local MLS as of September 30, 2008:

Total Active Listings:  1184    Compared to last year at this time:  877

Average days on market:  174   Compared to last year at this time:  163

Total number of sales to date:  570  Compared to last year at this time:  734

Average sales price:  $381,382  Compared to last year at this time:  $397,395

Overall appreciation or depreciation--4%

These statistics certainly support that the Durango market is still strong and not taking the dramatic drop that other markets across the U.S. have seen. Real Estate in Durango and its surrounding areas is still a great investment so the time is now to buy or sell.