The La Plata County tax assessor is sending out the new tax valuations for all real property in the Durango Colorado area, and for the entire county. It will come as a shock to many when they see the new valuations. Most homeowners have seen the tougher residential market, and the price reductions on homes in their neighborhoods. In most cases, their new tax valuation will be higher than competing homes on the market. The key difference is the time table that the county can legally use. They must have comparable sold properties during the period from January 1, 2007 until June 30, 2008, a period of 18 months. They can not utilize properties that sold before or after those dates. This period is the top of the market for price comparisons. Statistically, the median price has held strong, but when you compare values on the market currently to those that sold in this 18 month period, it is going to look like an unfair valuation.
The good news is that affects all of the market, and although the value of your home may look too high, it is going to be similar for other homes in the market, and it may not have a big impact on the amount of property tax due. The residential assessment rate is currently 7.96% for residential, and 29% for land and commercial properties. With the current residential tax structure, the Assessor takes the valuation of the property, multiplies it by 7.96%, and then multiplies that number by the mil levy for that specific area. For example, a $300,000 residential property is assessed at $23,880 by multiplying the 7.96%, and then multiplying by the mil levy. For Durango, the mil levy is approximatley 27.012 so the $23,880 is multiplied by .027012 for a taxable amount of $645.05. It is possible that the mil levy could be reduced from the 7.96%, and effectively lower the taxes for all residential properties. The 29% for commercial and land properties has been mandated by the voters of the State of Colorado, and so it will not change without a vote of the people.
The last bit of good news is that oil and gas pay for a total of over 50% of the total tax dollars collected, and La Plata County taxes are some of the lowest in the State of Colorado.
If you have any questions, please do not hesitate to call me. You can reach me, Don Ricedorff, at The Wells Group 970-375-7014, don@frontier.net, or at my website at durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado, with 16 years of experience, and he resides in Durango Colorado.
He has numerous real estate designations, which have provided him with an unparalleled education to assist his clients. The designations include:
CRS, Certified Residential Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member
CDPE, Certified Distressed Property Expert
ABR, Accredited Buyer Representation
GRI, Graduate of Realtor Institute
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property Specialist
SRES,Senior Real Estate Specialist
He is also an active volunteer in the community and his church. His highest aspiration is spending time with his wife, Janet, and his three children Kelly, Katie, and Kyle. His other interests include playing tennis, fly fishing, hiking, boating, and water skiing.
Thursday, April 30, 2009
Monday, April 13, 2009
First Quarter Statistics For Durango Area Assocation of Realors:
The statistics for La Plata County have been released for the first quarter of 2009. The closing transactions were at a four year low, and demand was stagnant following the economic turmoil during the 4th quarter of 2008.
Only 38 Durango Colorado homes closed in the first quarter, down from 100 in last years first quarter. The breakdown of the 38 homes sold was:
In Town Durango: 9
Durango Country Homes: 19
Durango Condominiums: 10
In Bayfield, there were 23 sales, with six Bayfield In-Town homes, and 17 Bayfield country homes. This compares to last years sales of 15, showing a nice improvement.
We have seen a spark of interest during April, with a number of homes under contact. It appears some confidence is returning to the market, and that demand is increasing. It also appears that the first time home buyers tax credit of $8,000 is beginning to take affect. We have worked with several buyers looking to take advantage of this wonderful opportunity. The inventory of homes continues to grow, offering buyers a great number of choices.
If you have any questions, please do not hesitate to call me. You can reach me, Don Ricedorff, at The Wells Group 970-375-7014, don@frontier.net, or at my website at durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado, with 16 years of experience, and he resides in Durango Colorado. He has numerous real estate designations, which have provided him with an unparalleled education to assist his clients.
The designations include:
CRS, Certified Residential Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member
CDPE, Certified Distressed Property Expert
ABR, Accredited Buyer Representation
GRI, Graduate of Realtor Institute
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property SpecialistSRES,
Senior Real Estate Specialist
He is also an active volunteer in the community and his church. His highest aspiration is spending time with his wife, Janet, and his three children Kelly, Katie, and Kyle. His other interests include playing tennis, fly fishing, hiking, boating, and water skiing.
Only 38 Durango Colorado homes closed in the first quarter, down from 100 in last years first quarter. The breakdown of the 38 homes sold was:
In Town Durango: 9
Durango Country Homes: 19
Durango Condominiums: 10
In Bayfield, there were 23 sales, with six Bayfield In-Town homes, and 17 Bayfield country homes. This compares to last years sales of 15, showing a nice improvement.
We have seen a spark of interest during April, with a number of homes under contact. It appears some confidence is returning to the market, and that demand is increasing. It also appears that the first time home buyers tax credit of $8,000 is beginning to take affect. We have worked with several buyers looking to take advantage of this wonderful opportunity. The inventory of homes continues to grow, offering buyers a great number of choices.
If you have any questions, please do not hesitate to call me. You can reach me, Don Ricedorff, at The Wells Group 970-375-7014, don@frontier.net, or at my website at durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado, with 16 years of experience, and he resides in Durango Colorado. He has numerous real estate designations, which have provided him with an unparalleled education to assist his clients.
The designations include:
CRS, Certified Residential Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member
CDPE, Certified Distressed Property Expert
ABR, Accredited Buyer Representation
GRI, Graduate of Realtor Institute
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property SpecialistSRES,
Senior Real Estate Specialist
He is also an active volunteer in the community and his church. His highest aspiration is spending time with his wife, Janet, and his three children Kelly, Katie, and Kyle. His other interests include playing tennis, fly fishing, hiking, boating, and water skiing.
Wednesday, April 8, 2009
Do you have a distressed property in Durango Colorado? If so, this is important to read!
I recently completed the course work to achieve the CDPE (Certified Distressed Property Expert) Designation. In these difficult times I have found that sometimes homeowners in distress don't always know about options other than foreclosure. The old adage that knowledge is power could not be more important than today with our current market conditions.
There are numerous options that may be available to a distressed homeowner. Two of the most frequently discussed are Foreclosure and Short Sale. Foreclosure is a court supervised process where a mortgage company or other lienholder institutes a legal proceeding against a homeowner who is in default. A Foreclosure process may ultimately result in a public sale of a homeowner's property. A Short Sale, on the other hand, occurs when the homeowner enters into negotiations with the mortgage company or companies to accept less from a third party purchaser than the full balance of the outstanding loan.
What many people do not know is that there are very important differences in homeowner consequences between Foreclosure vs. Shortsale. Let me outline some of those differences:
Issue: Future Fannie Mae Loan - Primary residence. In a Foreclosure, a homeowner who loses a home is ineligible for a Fannie Mae backed mortgage for a period of 5 years. A homeowner who successfully negotiates and closes a Short Sale will be eligible for a Fannie Mae backed mortgage after only 2 years.
Issue: Future Fannie Mae Loan - Non Primary. An investor who allows a property to go to Foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years.
An investor who successfully negotiates and closes a Short Sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.
Issue: Future loan with any Mortgage Company. On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?" This will affect future rates. There is no similar declaration or question regarding a Short Sale.
Issue: Credit Score. With a Foreclosure score may be lowered anywhere from 250 to over 300 points and typically will affect score for over 3 years. With a Short Sale only late payments on a mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. A short sale's affect can be as brief as 12 to 18 months.
Issue: Credit history. A Foreclosure will remain as a public record on a person's credit history for 10 years or more. A Short Sale is not reported on a credit history. There is no specific reporting item for "short sale." The loan is typically reported as "paid in full, settled."
Issue: Security Clearances. A Foreclosure is the most challenging issue against a security clearance outside a conviction of a serious misdemeanor or felony. If a person has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance, in almost all cases clearance will be revoked and position will be terminated. A Short Sale on its own does not challenge most security clearances.
Issue: Current Employment. Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A Foreclosure in many cases is ground for immediate reassignment or termination. A Short Sale is not reported on a credit report and is therefore not a challenge to employment.
Issue: Future Employment. Many employers are requiring credit checks on all job applicants. A Foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge future employment. A Short Sale is not reported on a credit report and is therefore not a challenge to future employment.
Issue: Deficiency Judgment. In 100% of Foreclosures (except in States that do not provide for deficiency) the bank has the right to pursue a deficiency judgment. In some successful Short Sales it is possible to convince the lender to give up the right to pursue a deficiency judgment.
If you have any questions, please do not hesitate to call me. You can reach me, Don Ricedorff, at The Wells Group 970-375-7014, don@frontier.net, or at my website at durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado, with 16 years of experience, and he resides in Durango Colorado.He has numerous real estate designations, which have provided him with an unparalleled education to assist his clients. The designations include:
CRS, Certified Residential Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member
CDPE, Certified Distressed Property Expert
ABR, Accredited Buyer Representation
GRI, Graduate of Realtor Institute
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property Specialist
SRES, Senior Real Estate Specialist
He is also an active volunteer in the community and his church. His highest aspiration is spending time with his wife, Janet, and his three children Kelly, Katie, and Kyle. His other interests include playing tennis, fly fishing, hiking, boating, and water skiing.
There are numerous options that may be available to a distressed homeowner. Two of the most frequently discussed are Foreclosure and Short Sale. Foreclosure is a court supervised process where a mortgage company or other lienholder institutes a legal proceeding against a homeowner who is in default. A Foreclosure process may ultimately result in a public sale of a homeowner's property. A Short Sale, on the other hand, occurs when the homeowner enters into negotiations with the mortgage company or companies to accept less from a third party purchaser than the full balance of the outstanding loan.
What many people do not know is that there are very important differences in homeowner consequences between Foreclosure vs. Shortsale. Let me outline some of those differences:
Issue: Future Fannie Mae Loan - Primary residence. In a Foreclosure, a homeowner who loses a home is ineligible for a Fannie Mae backed mortgage for a period of 5 years. A homeowner who successfully negotiates and closes a Short Sale will be eligible for a Fannie Mae backed mortgage after only 2 years.
Issue: Future Fannie Mae Loan - Non Primary. An investor who allows a property to go to Foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years.
An investor who successfully negotiates and closes a Short Sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.
Issue: Future loan with any Mortgage Company. On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?" This will affect future rates. There is no similar declaration or question regarding a Short Sale.
Issue: Credit Score. With a Foreclosure score may be lowered anywhere from 250 to over 300 points and typically will affect score for over 3 years. With a Short Sale only late payments on a mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. A short sale's affect can be as brief as 12 to 18 months.
Issue: Credit history. A Foreclosure will remain as a public record on a person's credit history for 10 years or more. A Short Sale is not reported on a credit history. There is no specific reporting item for "short sale." The loan is typically reported as "paid in full, settled."
Issue: Security Clearances. A Foreclosure is the most challenging issue against a security clearance outside a conviction of a serious misdemeanor or felony. If a person has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance, in almost all cases clearance will be revoked and position will be terminated. A Short Sale on its own does not challenge most security clearances.
Issue: Current Employment. Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A Foreclosure in many cases is ground for immediate reassignment or termination. A Short Sale is not reported on a credit report and is therefore not a challenge to employment.
Issue: Future Employment. Many employers are requiring credit checks on all job applicants. A Foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge future employment. A Short Sale is not reported on a credit report and is therefore not a challenge to future employment.
Issue: Deficiency Judgment. In 100% of Foreclosures (except in States that do not provide for deficiency) the bank has the right to pursue a deficiency judgment. In some successful Short Sales it is possible to convince the lender to give up the right to pursue a deficiency judgment.
If you have any questions, please do not hesitate to call me. You can reach me, Don Ricedorff, at The Wells Group 970-375-7014, don@frontier.net, or at my website at durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado, with 16 years of experience, and he resides in Durango Colorado.He has numerous real estate designations, which have provided him with an unparalleled education to assist his clients. The designations include:
CRS, Certified Residential Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member
CDPE, Certified Distressed Property Expert
ABR, Accredited Buyer Representation
GRI, Graduate of Realtor Institute
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property Specialist
SRES, Senior Real Estate Specialist
He is also an active volunteer in the community and his church. His highest aspiration is spending time with his wife, Janet, and his three children Kelly, Katie, and Kyle. His other interests include playing tennis, fly fishing, hiking, boating, and water skiing.
Subscribe to:
Posts (Atom)
