When to Use Zillow.com?

You may have heard of Zillow.com, a leading online real estate data bank. Many folks tell us that they are following Zillow.com with respect to how it currently values their home or property. Certainly, Zillow.com can offer a starting point to determine a general value for a property you are considering buying or in determining a general value for a property you are considering selling or refinancing. As a matter of fact, our office advertises on Zillow.com because it reaches so many households.

However, in our opinion, Zillow.com cannot take the place of hiring a professional appraiser or connecting with a real estate professional to receive a Comparative Market Analysis (CMA) if you are thinking of buying or selling real estate. Even Zillow.com freely admits that: It has never done an on-site inspection of property; never seen how property finishes, landscaping or location compares with other properties in the same market; and that their data source may be inaccurate due to incomplete information. As an example, we have a property that in one Zillow report came up as valued at $215,700 and in another report similar in timeframe for the same property came up as valued at $1,272,200. That's a rather remarkable discrepancy!!! By the way, my opinion of the value of that property is $1, 499,000.

Here is an analysis for your consideration: Is it helpful to go on-line for medical information and even possible advice given a particular set of medical symptoms? Perhaps yes. We probably all have done that. However, would you rely on that on-line opinion in lieu of seeking professional medical advice for a serious medical condition? Most likely the answer is No.

Zillow.com offers an impersonal, computer-generated estimate of values. It is here to stay and serves a function in today's busy world. But, we caution you to use this service with common sense. A real estate investment may well be one of the most valuable assets you purchase or sell. Whether you are thinking of buying, selling or refinancing, make sure you take the time to get a serious and well based opinion of value from a reputable real estate professional or appraiser in your market.

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 18+ 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.

Back to School

School is back in session and more than likely it’s time to dust off the ol’ bill pay and make room for pencils, notebooks, and the constant stream of homework piles. Use my helpful tips to reign in those piles to maintain aesthetic peacefulness and productivity in your home.

--Define your workspace: Make ample room to work; fill cups, baskets, and trays with all your supplies to keep this area clear. Designate these spaces as a “home base” for each individual supply rather than catchall buckets.

--Paper piles: Collate, clip, and clear…get the jagged edges out of sight by using file folders and vertical trays. Anything you can use to work upward creates more horizontal workspace. Shelves and bulletin boards prove to be not only utilitarian but visually interesting as well.

--Storage: Nothing is simpler than a large under counter drawer for those unsightly items you want to hide in a hurry. Consider getting a unit on casters for each kid in effort to designate storage space but easily move for using a shared workspace.

Is It Time To Invest In Real Estate?

You may be having a difficult time determining where to invest in the markets. The Dow Jones average has lost 8.22% in the last month, and it has a yield of 2.89% annualized over the last 5 years, and 3.6% annualized over the last 10 years. The 2 year U.S. Treasury bonds have a yield of .26%. Gold values have escalated with worries over the economy and the potential for long term inflation. Is there a better answer?

You may want to consider a real estate investment. The downturn in the real estate market over the last six years offers some interesting opportunities. More people are choosing to rent, values of properties have come down, and mortgage interest rates are at a 100 year low.

Rental housing in the U.S. serves a population of 39 million households, and among those under 25 years old, 78% are renters. The occupancy rate for apartments is 94.3% nationally, which is up approximately 3% in the last two years. Locally, we have had strong demand in the rental market, and recently, landlords have expressed their surprise on the number of calls from Craigslist and other advertising for available housing.

What kind of return can you expect from a residential or commercial investment? The net return on a cash investment in residential real estate is often 4-6% annually, and the returns for commercial real estate range from 6-8% annually in this area. Real estate investors often benefit from the use of leverage in their investments. Leverage is simply borrowing money, and utilizing less of a cash investment. The minimum down payment is typically 25% and may be greater depending on the investment strategy. With interest rates at historic lows, and the ability to “lock in” the rates for up to 30 years, investors will usually choose to minimize their cash outlay, and have the rents cover the payments on the loan.

Rents have historically increased over time. This adds to the long term return of investment real estate.

The other advantage to residential or commercial investment is the hedge against inflation. Like precious metals, hard assets have an intrinsic value and can act as a hedge against inflation. The long term appreciation of residential properties in the Durango, Colorado area has been about 6%, although there has been a negative valuation in the last few years. When appreciation returns to the market, long term investors may see a combined annualized return of over 10%, with rents and appreciation.

Investments in real estate should be considered as long term investments. Investors may want to consider holding real estate in their portfolio for multiple years.

If you have any questions about investing in Real Estate, 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 18+ 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.

Types of Surveys

There are several types of surveys that a Seller might be asked to provide and/or that a Buyer might want to purchase in a real estate transaction. Below is a brief description which was prepared by a local surveying company, Mountain Man Surveying, Durango, Colorado. I've also noted fees charged for each kind of survey by that company. Fees may vary by company and should be checked prior to engaging a surveyor.

1. Improvement Location Certificate: The purposed of this document is to provide a map of the property which identifies any issues with encroachment. It shows all improvements and recorded easements on the property except for utilities. This is not a BoundarySurvey and is not intended to be used for constructing new improvements or fences, only to identify the location of existing improvements. Fees: Within Durango $300.00; 0-10 miles from Durango, $325.00; 10-20 miles from Durango, $350.00; over 20 miles from Durango, $375.00.

2. Boundary Survey: The purpose of this survey is to locate existing monuments that pertain to the property, replace corners that are not set and to show any monuments that may be placed in an inaccurate location. A plat is provided and it is a requirement of the surveyor to record a deposit plat with the county if any corners are set by the surveyor on a metes and bounds description or if pins are set within a subdivision which has a recording date that is older than twenty (20) years prior to the date of the boundary survey. Existing improvements are generally not shown, unless asked for, and recorded easements are shown if a title commitment policy is provided. Fees: based on total of fieldwork and drafting, $800 to $1200.

3. Improvement Survey Plat: This type of survey is similar to a Boundary Survey and all of the same rules apply, except that all improvements are shown, including fence lines. Fees: based on total of fieldwork and drafting, $800 to $1200.

4. Alta Survey: This type of survey is similar to an Improvement Survey Plat, except it is subject to guidelines required by the title insurance company and may include items such as underground utilities. All exceptions from the title commitment policy are shown on the plat and the survey data is subject to much more exact tolerances for setting and showing monuments related to the property. Fees: based on total of fieldwork and drafting and also the required information to be identified on the survey, $2500 to $3500.

5. Elevation Certificate: This is a document which shows various elevations of a subject property in relationship to the existing flood plane data. Fees: similar to those for an Improvement Location Certificate.

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 18+ 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.

I'm an Accredited Buyer's Representative

One of my top priorities as a Realtor is to make sure I continually educate and update myself. I devote approximately 20 hours a year, at least, to my continuing education. I hold many speciality real estate designations earned by taking extensive course work in each designated specialty. One of my most valued specialty designations is Accredited Buyer’s Representative (ABR). I am not the only Realtor who feels the value of earning this designation. This designation was ranked #1 as having the most value in a recent survey of members who hold the ABR designation.

Below is a list of questions republished from the July issue of Today’s Buyer’s Rep published by the National Association of Realtors . Buyers should ask themselves these questions as they make a decision about seeking representation in today’s real estate market. My sincere belief is that my expertise is a huge asset and brings value to the table for buyers in today’s confusing and challenging real estate marketplace.

1. D o I have time to not only research the residential housing market but also understand the best type of property to purchase based upon my needs?

2. Do I have access to the most up-to-date and comprehensive information on properties for sale?

3. Do I understand how to accurately interpret market data? (For example, how to compile and evaluate actual sales data and absorption rates?).

4. Do I know how to interpret this data in a way that will help me structure an attractive offer that has a reasonable chance of closing?

5. Do I understand real estate representation? The difference between being a client or a customer? What rights and duties come with representation and who is loyal to the seller versus the buyer? In other words, have I researched the value of formalizing a relationship with a buyer’s agent?

6. Am I familiar with the common residential real estate contract and how to interpret various clauses to best protect myself from making common buyer mistakes?

7. Do I have the expertise to negotiate on my own behalf when, for the most part, the seller’s side has a real estate professional assisting the seller with negotiations?

8. Do I have the ability to find a qualified home inspector? What about other qualified professionals needed in the real estate transaction?

9. Do I have time to research current home loan programs and determine which one is best for me?

10. Do I know the zoning regulations and building codes pertaining to residential real estate in the area I am interested in moving to? Do I understand how this may impact my plans to use or modify the property I want to purchase?

These issues and more may come up during the home buying process. If you have questions please don’t hesitate to contact me. It would be my pleasure to assist you as a Buyer’s Agent as you look for property in the Durango, Colorado area.

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 18+ 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.