Durango Colorado Real Estate

Thursday, February 14, 2013

The Importance Of Flood Insurance

This week we want to discuss briefly the issue of flood insurance and its importance in the selling process. With so many rivers, streams and creeks in this area, many properties are considered to be in flood zones. It is critical to know if your property is such a property because it impacts the premium cost of flood insurance for a potential buyer. Please don't stop reading because you think this is not an issue for you. In 2010 the Federal Emergency Management Agency

(FEMA) did redistricting in the Durango/Bayfield area and as a result many properties that previously were not categorized as being in "high risk" flood zones now are so designated. Everyone lives in a flood zone–it's just a question of whether you live in a low, moderate, or high risk area.

All Sellers should check with a knowledgeable insurance agent regarding the issue of flood insurance. Even if you have never had to purchase flood insurance before, it is important, we believe, to know whether your home is in a low, moderate or high risk flood area per the new FEMA zone maps. We have had instances in the last couple of years where a buyer of a property found out through the loan process that their lender would be requiring flood insurance on a property that had not had a requirement for such insurance in the past or where the premium cost was going to go up for the new owner by thousands of dollars over what the current owner was paying. The new premium cost of high risk flood insurance policy can be as high as over $4000.00 per year. Obviously, this can be a deal killer for some buyers.

If you go to the link below you can enter your property address and in most instances determine if your property is in a high risk flood area. If it is, this is a disclosure issue for a potential Buyer who will most likely have to obtain flood insurance as a part of their loan process. The sooner this issue is identified the better with respect to making it to a successful closing. With the help of a knowledgeable insurance professional there may be options to help keep the annual flood insurance premium at a more affordable rate.

http://www.floodsmart.gov/floodsmart/

Please call us if you have any questions.

Tuesday, February 5, 2013

Durango Colorado Real Estate & Mortgage Rates

The real estate market in Durango is heating up with increased sales of properties, and increases in values over the last six months. Much of this activity is driven by the availability of low interest rates. As the real estate market in the nation continues to heat up, many are concerned about the cost of future mortgages. For most borrowers, an increase of 1% in the mortgage rate has an impact of approximately 10% in what they can afford!

In the local Durango market, we are seeing low inventories in modest priced homes, and some multiple offers. Prices in these lower price ranges will increase in the near future, as there will not be the necessary inventory of homes to meet the demand.

There is an excellent article in Bloomberg Businessweek about the anticipated cost of future mortgages. It does suggest a slow increase in mortgage rates over the next two years, but it is their opinion that rates will remain historically very low. Please see the actual article per the link below:

http://www.businessweek.com/articles/2013-02-01/how-high-will-mortgage-rates-go

Regardless, buyers should find the best opportunities in the market today, to take advantage of the current market pricing, and the best interest rates possible.

Thursday, January 24, 2013

Consider the Value of Home Pre-Inspections Prior to Selling

A professional pre-inspection can be a very valuable step in the listing and marketing of your home. While professional home inspections are not a new concept, the idea to have an inspection done at listing is gaining acceptance. After all, why wait until there is a real estate contract on the line to find out if there are any significant defects in the home? A pre-inspection can help to alleviate any inspection issues that may otherwise not be known until a contract is in place and inspection issues arise that affect the health and safety of the current homeowners and the potential buyers

Inspection issues are the most common reason for buyers to terminate contracts with the seller. Also, seller disclosure requirements are causing sellers to take proactive measures to protect themselves against future liability during the sales process. Today's seller wants to close their deal knowing they made a full disclosure of any property conditions in the home.

The cost of a pre-inspection, using a 3 bedroom, 2 bath, 2000 Square Foot home as our example, would range from approximately $350 to $400. A radon test should also be added at an additional cost of about $100.

There are a number of common inspection issues that tend to come up such as electrical and plumbing issues, and other repair and replacment items such as appliances and windows. It is not uncommon to have more serious issues like radon, mold, and potential gas leaks. Correcting issues found in a pre-inspection prior to going under contract can save a lot of time, trouble, and money. Sellers who are not on a dealine can ofter repair items at a lower cost when they have the time to shop for the right trade person, or perhaps make the repairs themselves.

A recent change in the Colorado Real Estate Contracts now requires that inspection resolution items become an amendment to the contract. Contract amendments are submitted to lender scrutiny which may lead to a rejection of the mortgage or a delay in closing. Having fewer inspection resolution items can lead to a smoother transaction.

For more information about pre-inspections, please feel free to contact our office.

Don Ricedorff, Broker Associate, GRI, CRS, CCIM, ABR, RSPS, CDPE

E-Mail: don@durangorealproperty.com

Direct: 970-375-7014

Fax: 970-259-5007

Web: www.DurangoRealProperty.com

Wednesday, January 16, 2013

2012 Real Esatate Statistics

The Durango Area Association of Realtors statistics were released in the paper this morning, and this afternoon the statewide numbers will be released. Great news almost everywhere. Median price up again for the 4th quarter (3rd quarter was up too), and the number of homes sold in the County was up about 15%. The statewide numbers are even stronger.

Friday, January 11, 2013

5 Signs the Market is Recovering Fast

Below is a link to a good article from Trulia regarding the recovering Real Estate Market.
For more information about our local market, please feel free to give me a call.
http://pro.truliablog.com/tools-trends/5-signs-the-market-is-recovering-fast/?ecampaign=tnews&eurl=pro.truliablog.com%2Ftools-trends%2F5-signs-the-market-is-recovering-fast

Residential Sales Comparisons

Good morning.

This week I wanted to share with you the comparison of the La Plata County Residential Real Estate sales for the past 8 years.

As you can see, there are positive signs in the median pricing of homes priced up to $500,000. The number of transactions is also on the rise compared to 2011.

The signs seem to point to an improving market and we are looking forward to 2013.