Zillow: The Good and the Not So Good

Zillow is one of the top real estate sites in the world.  It is an incredible real estate online site offering information to consumers wanting to make informed decisions.  The mobile version and the desktop applications both work exceptionally well, and can provide buyers with information on properties available for sale and property information on homes & parcels not on the market.  The mapping feature allows consumers to “hone in” to the neighborhoods and homes they desire. 

Zillow has another feature that many buyers and sellers utilize.  It is the Zestimate, and according to Zillow, it is a home valuation of the estimated market value of a property, computed using a proprietary formula.  Zillow suggests its use as a starting point in determining a home’s value, and they further recommend having a Realtor® complete a comparative market analysis or getting an appraisal.  They acknowledge the limitations of the Zestimate, a compilation of public records, and Zillow has not inspected the home or is knowledgeable about special features.

Unfortunately, many consumers have not read about those limitations and recommendations, and often count on the Zestimate to be a correct market value of the property.

When the market value is higher than suggested by a Realtor’s® comparative market analysis, sellers want to believe the Zillow Zestimate is accurate, and it can lead to a home being marketed at the wrong price.  As pricing is one of the most critical functions in marketing a home, a higher than market price can lead to long “days on the market” and potentially, the lack of a sale.

The Durango area is a unique market, and far different than the metropolitan areas.  Most of the big cities are dominated by large developments of similar homes, and estimating value based on other home sales is far easier.  In La Plata County and in Durango, almost all of the homes were designed and built individually, with a variety of materials, different levels of customization, and large differences in size.  It is not unusual to have homes in very different price ranges next to each other.  You can drive down Durango’s 3^rd Avenue as a simple example.

Unfortunately, when the Zillow Zestimate is low compared to the market value of the property, buyers want to utilize it as having more integrity than it deserves, and of course, sellers are often angry at the Zillow Zestimate, as it makes it more difficult to negotiate a transaction.

I have personally seen Zillow Zestimates that are hundreds of thousands of dollars different than the market value.

In conclusion, use Zillow to search for properties, and by all means, take a look at the Zillow Zestimate, but be careful in believing that it is correct.  Utilize your Realtor® to help you determine the correct market value, and perhaps turn the Zestimate into a Zactimate!

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

Our Featured Property, December 2013

Important News For Buyers

Good day.

There are some important factors that are coming up that you will want to be aware of if you are looking to purchase Real Estate in 2014.  Below are three important points that were made by Deanna Lawley in a blog on HomeFinder.com.

Avoid rising rates roulette: Mortgage interest rates, while still attractive, are up 1 to 2 percent over this time last year. It’s possible to lock in a 30-year fixed rate mortgage at about 4.5 percent, says Shari Cashman (Gencor Mortgage). According to the Mortgage Bankers Association’s forecast, mortgage rates will likely rise to about 5 percent in 2014. If you buy now and the rates drop, you can always refinance. If you wait and the rates rise, you are stuck, says Todd Huettner (Huettner Capital).
 
New Year, new lending rule: Lending rules will change on January 1, 2014 and it could be harder to get a loan. 2014’s rules will allow you to borrow less, at your same level of income, says Huettner. 2013’s current mortgage rules allow for a 45% total debt to income ratio (DTI); in 2014, the DTI will go down to 43%. What does this mean? You need to make or reduce your debt in order to buy the same house!

Easier financing: If you are waiting for home prices to decrease, don’t. 2014’s mortgage changes could make it harder to get financing, says Robert J. Spinosa (RPM Mortgage). So if you are looking to save a few dollars by waiting for home prices to drop, you could miss your window to secure a mortgage entirely.

If we can answer any questions, or be of any assistance in helping you with your purchase, please contact our office.

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

The Wells Group Real Estate Brokerage

E-Mail:  don@durangorealproperty.com

Direct:  970-375-7014

Fax:  970-259-5007

Web:  www.DurangoRealProperty.com

 

Real Estate News Release

Real Estate News Release!

Don Ricedorff, Durango Real Property, and Max Hutcheson are pleased to announce the merger of their two real estate businesses!  The combined real estate businesses are creating The Durango Team to better serve their friends and clients.

The team will consist of three real estate brokers, Don Ricedorff, Max Hutcheson, and Janice Martin, and two marketing staff members, Jonathan Hunt and Kim Tucker, and will also benefit from the marketing and continued relationship at The Wells Group.

Below is a brief bio on each:

Don Ricedorff:

Don has long term ties to Southwest Colorado, growing up in Cortez, a graduate of Fort Lewis College, and 21 years of real estate experience in La Plata County.  He is married to Janet, and they have three grown children, Kelly, Katie & Kyle.

He has received numerous sales and recognition awards in his real estate business, and ties to a number of community organizations.

Max Hutcheson:

Max is a Colorado native, who has spent over 15 years enjoying all that Durango has to offer.  He graduated from DHS in 1996, and he went on to play basketball and complete his degree at Fort Lewis, with a degree in marketing.

He has been representing buyers & sellers in real estate for the last six years, and he has built a very successful business.

Janice Martin:

Born and raised in Kansas, Janice practiced law for over 20 years as a partner in the Kansas City law firm of Lathrop and Gage before “retiring” to Durango.  Janice has enjoyed a second career in real estate for over 10 years in Durango and looks forward to her continued association with Don Ricedorff and now with Max Hutcheson as part of The Durango Team and The Wells Group.

Jonathan Hunt:

Jonathan is a Durango native and lifetime resident of the area - graduating from Bayfield High School and attending Fort Lewis College.  His marketing career has included work with the Durango Herald, The Wells Group, and Don Ricedorff. 

He enjoys spending time with his two children, Ashley & Dylan, and acting on stage whenever the opportunity arises.

Kim Tucker:  Kim moved to Durango in 1994 with her daughter.  Within a few years of moving here she started working for The Wells Group where she enjoyed working behind the scene of the real estate world for 10 plus years.  Kim married her husband in 2007, purchased the local Scuba Diving shop  and exchanged her time at The Wells Group for her passion of teaching individuals to scuba dive.  Just recently Kim returned to Durango after living a 1 ½ years abroad.  She is happy to be back in Durango working with The Wells Group.

Latest La Plata County Residential Sales Numbers

Below you will find the latest reporting from the Colorado Real Estate Network MLS showing the year to date sale information for residential properties in La Plata County.  While the number of sales for November 2013 are down from November 2012, the overall trend is still very positive.

As we near the end of 2013 and approach the Christmas season, we often are asked advice regarding remaining on the market.  Below is an article that came out recently from the National Association of Realtors that addresses just that issue.  Keep in mind, that the artcle adresses the broad, National real estate landscape including large metropolitan areas and does not take into account specific market segments.  For example:  in-town, single family homes and condos/townhomes in our market fare far better during the winter months than rural properties on acreage.

From a marketing perspective, we continue to market all properties actively in the winter season - locally via our print ads in the Durango Herald, as well as Nationally, and Internationally through the internet.  The latest analytical information culled from our website, www.DurangoRealProperty.com, for the past 30 days shows 1225 visits with 869 unique visitors to the site.  Those using our site for real estate information come from the US, UK, Canada, Germany and beyond.  When you combine the use of our site, along with www.WellsGroupDurango.com and our dominant presence on popular sites such as Trulia, Zillow, and Realtor.com - you get the most conistent representation around - no matter the time of year!

Home Buyers Plan to Make a Move This Winter

Daily Real Estate News | Thursday, November 21, 2013  | Realtor.org

Home buyers who weren’t successful this summer at finding a home due to limited inventories and competition from all-cash offers are looking to retry their luck in the winter, according to realtor.com®’s Winter Home Buyer Report. 
“This summer and spring, home-buying season was particularly challenging for buyers, especially first-time home buyers trying to compete with all-cash offers and bidding wars because of reduced inventory,” says Alison Schwartz, vice president of corporate communications at realtor.com®. “In fact, a quarter of the winter home buyers revealed they are in the market now because they were unable to find a home during this last home-buying season.”
But winter home buyers know they’ll face some challenges. Forty-five percent of those surveyed say they believe they will be up against inventory challenges again, with few homes for sale within the price range they desire. Twenty-nine percent also say that winter weather makes house-hunting unpleasant. 
But they believe that the winter can be a good time to buy a home. Twenty-six percent say winter is a good time to buy because they feel sellers will be more motivated and willing to negotiate. Twenty-four percent also say they think home prices will be better.
Of those looking to buy this winter, 23 percent are planning to make a down payment of 10 to 20 percent, according to the realtor.com® survey. Twenty-two percent are planning to put down 21 to 99 percent in cash; 19 percent plan to put down 100 percent cash; and 13 percent are planning to make a down payment of 3.5 percent to qualify for a Federal Housing Administration loan. 
We hope you have a wonderful weekend, and - as always - if you have any questions, always feel free to give us a call.

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