Local Hot Springs Offer Soak Relaxing Getaways

One of the most unique experiences in Four Corners is the natural hot springs through the area. In Durango and several of the surrounding towns, natural hot springs have been converted into pools and resorts for guests to enjoy soaking. In Durango, visitors may enjoy Trimble Hot Springs (north of town in Hermosa), and Pagosa Springs and Ouray each feature hot springs. Additionally, for the more adventurous, Ridgeway features a clothing optional location at Orvis hot springs.

Most of these hot springs have been utilized for hundreds of years, as the Native Americans discovered and utilized them. Some people find the natural waters provide health benefits, as they are saturated with minerals. Supposedly the natural waters provide defenses against fatigue, insomnia, and poor circulation, amongst other benefits. Some even drink the waters, but that is only recommended with caution.

Each of these locations features specific benefits, but all of them offer exceptional Colorado views and the ability to relax and enjoy a stress-free soak in warm waters. In the winter time, a dip in the springs is invigorating, especially after an action-packed day on the slopes. In the summer, guests may enjoy the outside more—some of the locations offer picnic spots and cold swimming pools. Some of them even offer onsite lodging, so a true getaway and spa experience may occur.

The water in these springs is derived from the underground springs. In general, the temperature is controlled by the volume of water flowing to the pools. Different pools at these locations offer different temperatures to create a more complete experience.

We have loved visiting some of these hot springs over the years. They have been fun family activities—either day trips or quick mini getaways. It is so amazing to see these hot springs in full use, and to enjoy the naturally warm water. They are perfect for kids and adults alike!

Real Estate As An Investment

Many people wonder if real estate investments yield a return. While many scenarios occur in which real estate may be purchased, a featured Durango Herald article highlights utilizing an IRA (Individual Retirement Account). 

http://durangoherald.com/article/20140518/NEWS04/140519639/-1/realestate/Using-IRAs-for-real-estate-investment- 

As an overview, the general rule of thumb for residential real estate investments is to put 25% of the home price down, and to obtain a mortgage for the remaining 75%. For example, a Crimson Cliff home is currently listed at $369,900. In this scenario, a person would put down $92,475, and mortgage the remaining $277,425. A 30 year mortgage for this amount, at 4.5% interest, results in a $1,400.42 monthly payment on the principal and interest. This home would likely rent for $1,700 per month. At the beginning of the investment, a person may break even (when taxes, HOA fees, and insurance are factored into the equation). However, as time goes on, the mortgage is paid down and the gross rent becomes a profit. In other situations, a cash purchase in this scenario would result in a 4.5% return on investment through the rental income.

In terms of appreciation, the below chart outlines historic trends in home appreciation for residential in-town Durango homes. The median price averages a 4.43% growth, and the average sales price has increased 5.45% annually. Although real estate will fluctuate over time, the overall trends projects up.

When we look at the potential return from rental income (estimate 4.5%) along with the average appreciation (estimate 5.5%) in Durango, we see an approximate 10% return on investment! This is a substantial amount. 

As referenced earlier, the Durango Herald article describes utilizing an IRA for real estate investment; see below for further information. Please let us know if we are able to assist with understanding real estate investments. 

Durango Farmers Market Produces Food, Fun, and Festivities

On summer Saturday mornings, the First National Bank parking lot becomes a festive party. The Durango Farmers Market is a local favorite with something for everybody. May 10 through September 27, local vendors showcase their products and talents.

From local honey to fresh produce, and homemade pastries to local meats, the Farmers market features some of the best items grown and produced in our area. Other treats include: cheeses, flowers, fruits, herbs, tamales, candles, pottery, face painting for kids, coffee, smoothies, and more. They require the products to be grown or gathered in La Plata, Montezuma, Archuleta, Colorado San Juan or New Mexico San Juan counties. Visitors will enjoy talking with the artists and farmers/ranchers themselves to learn more about the practices and methods involved in the product preparation.

It is such a blast to spend a Saturday morning at the Market. Live music fills the air, and a person can walk around with a pastry or cup of coffee. Of course, so many locals go to the Farmers Market, which makes it fun to chat with friends while there.

Special events also occur throughout the year. They will offer an Iron Horse Chef competition, the Tour de Farms, and Thanksgiving and Christmas Farmers markets.

If you are looking for a fun way to spend a Saturday morning and support the local community, check out the Durango Farmers Market. It is located in the First National Bank parking lot (259 West 9^th Street), and is open from 9 until noon. Here is their website for additional information: http://www.durangofarmersmarket.com/

Revamp, Refurbish, & Remodel To Reap The Rewards

Homeowners oftentimes wonder which remodel and home improvement projects yield the highest return. Of course, resale is always a consideration, but the beauty of home improvements is the ability to enjoy them prior to selling a home. Some standards apply across the country; others are more pertinent to the Durango area.

In Durango, we see significant remodeling and renovation in many of our older neighborhoods, including Riverview, Crestview, and the historic districts.  The values for in-town homes support the cost of major remodeling or additions, and many home owners are willing to build on to their homes to provide additional functional space.  These additions to the home often include a true master bedroom, beautiful bathrooms, larger kitchens, living rooms, storage, and garage bays.  A lot of Crestview and Riverview area homes were originally 3bed / 1bath / and a one car garage. They were built in the 1950’s and 1960’s. Converting the one car garage into a bathroom and additional living space will get a house to the coveted 3bed/2bath home while increasing your square footage at the same time. Buyers now are looking for a more open floor plan, homes in these areas also have walls sectioning the kitchen off from the rest of the house. Finding a way to open the kitchen up by knocking down a wall or putting in a bar top can make a smaller home live and feel bigger. Adding another story to these homes is also common, “Popping the Top” as is it called is a great way to add significant square footage and a master suite. Given the high demand for in-town properties, and rising values, putting $100,000 into a home in these areas to add square footage is a solid investment.

Painting is one of the most effective and least expensive improvements to a property.  Utilizing color and accent walls can make a big difference on how large the space may look, and how appealing.

Historically, kitchens and bathrooms have been the most popular remodels. According to the National Association of Home Builder’s Remodeling Market Index, the most popular remodels in 2013 were bathrooms. The Association indicates residential remodeling in single family homes will increase 2.5% this year over 2013.

Although the bathrooms and kitchens tend to be most popular, the 2014 Cost VS Value report indicates that a front door yields the most return, at 96.6% of the value spent returned. The report shows minor kitchen projects return more than bathrooms, with 82.7% back to the home. Other top national projects include decks, garage doors, and attic bedrooms. These improvements both add value to the home and create a more enjoyable living experience.

Functional obsolescence is an area to consider, especially for older homes. This concept is that some features in older homes are now obsolete. For example, our need for utilizing electrical appliances has grown over the years, so the size of electric panels, the number of outlets, and grounded outlets are now very important. Other primary items to consider for remodeling to avoid functional obsolescence include: updating the plumbing in homes, adding dishwashers, having washer/dryer hook ups, gas forced air heat, and air conditioning.  These items may affect the value and the potential for selling your home.

Landscaping, water features, and outdoor living spaces have become very popular to give us the opportunity to enjoy the great seasons we have in La Plata County.  Flagstone patios, large entertainment decks, and covered patios are popular.

As hard as it is, trimming back large trees, or even removing them can drastically change the feel and look of a home. It improves curb appeal and the amount of sunlight coming into the home instantly. Suddenly views that were blocked are back, and most importantly so is the sun. A bright sunny house will always show better than a dark shaded one.       

Please consider utilizing experts in their fields to help you plan a project.  These experts include architects, engineers, interior designers, landscape archtiects, and builders.  They can help you take your vision and make it a success.  Please don't forget to visit the folks at the building department to get a building permit, if required.

How can we help?  Your real estate broker has experience in visiting scores of homes, and may be able to give you some ideas.  More importantly, they can help you with estimated values on your completed design, based on similar comparable homes.

Iron Horse Bicycle Race Right Around the Corner

We are approaching one of our favorite Durango events. In just a week and a half, true athletes will test their endurance in the annual Iron Horse Bicycle Classic. Since 1972, cyclists have ridden from Durango to Silverton in attempt to beat the train. The race occurs on Memorial Day weekend.

We marvel at the intensity required to complete this race. It is 50 miles, over Coal Bank and Molas passes, and 5,500 feet in elevation are gained. Sometimes the weather presents challenges, especially over the mountain passes. This is no small feat!

The race originated when Tom Mayer challenged his brother Jim (a train brakeman) to a race between the train and his bike ride. Riders still aspire to beat the train to Silverton.

This event brings such energy to Durango. It is a blast to be downtown at the start of the race, or at the finish line in Silverton to welcome the riders and celebrate their hard work.

In addition to the main race between Durango and Silverton, several other events occur throughout the weekend. There is a kids race, a race between Purgatory and Silverton, and a race from Durango to Purgatory. Other races occur throughout the weekend, as well.

The Iron Horse also contributes a portion of entry fees to the Mercy Health Foundation and other community programs in the region.

We are looking forward to the Iron Horse and cheering on all of the riders who will participate!

Check out their website for further information: http://www.ironhorsebicycleclassic.com/

April's Real Estate Numbers For La Plata County

 

The La Plata County April numbers are in; as we analyze this past month, we note strong, solid numbers equivalent to last year. We are not seeing the large swing in increases we saw last year, but that may be a sign of steady home sales in the county.

As of now, the County total home sales for April are 72 this year versus 70 last year.  While this is relatively flat to 2013, it remains substantially more than the years directly before that. The median price is $310,000 year to date, which is the same as for all of 2013. 

The most interesting statistic was the amount of sales below $500,000.  In La Plata County in April, it was 89% of all home sales, and 80% were below $400,000.  This suggests a soft market In April for our 50+ generation, and probably fewer buyers from out of the area.  This makes sense as most of our “higher end” buyers from outside of the area will typically come to Durango in the summer and fall.  It is likely most of the sales in April were local buyers, with ties to employment in La Plata County.

As we analyze the numbers in more specific market segments, we see:

Durango In-Town Single Family Homes: 7 this year versus 15 last year. Median price was down from $377,000 (last year) to $354,900 (this year). The in-town numbers are likely impacted by the low inventory levels, and many of the buyers were looking for affordability, so the numbers for townhomes, condominiums, and Bayfield properties were up.

Durango rural Single Family Homes: 24 this year and 29 last year.  Median price was down from $401,016 (last year) to $384,500 (this year).

La Plata County Condos and Townhomes: 18 this year, up from 13 last year.  Median price was up from $220,000 (last year) to $298,500 (this year). It is great to see growth in this area! First time home buyers appear able to consider home opportunities in this segment.

Bayfield In-Town & Rural Single Family Homes: 18 this year and 8 last year.  Median price was up from $199,500 (last year) to $234,075 (this year). The Bayfield area is experiencing substantial growth.

These numbers remain consistent with expectations. The activity levels have stayed solid with last year, now two months back to back. Although two months are not necessarily indicative of a whole year, we may be catching up with the big increases the market saw in the last few years. It looks as though the more affordable aspects of the market (condos/townhomes and Bayfield area) are growing. We will continue to watch this trend over the next several months. 

Off And Running!

Runners are a breed all of their own. Most people seem to either love the sport or hate it. Max (of the Durango Team) and his wife Katie love it. They love it so much that they take turns running the various races offered in the Durango area. She runs the Telegraph Mother’s Day race, he runs the Steamworks Half Marathon. They both run Mt. Sneffels.

We often say that Durango has something for everybody, and most of the time the skiing, hiking, and other outdoor enthusiast sports are highlighted. Yet, running has a very distinct presence in Durango. This is the time of the year that “race season” begins, and runners may experience various routes in the area. In addition to awesome scenery, many of these races have after-run celebrations. Most importantly, many of these races support noble causes through their earnings.

On Mother’s Day, the Telegraph 10K, 5K and 1 Mile begins at Horse Gulch. The proceeds from this race directly support Step Up Uganda, an organization dedicating to helping women and children in Uganda. (See their website for further info: http://www.stepupuganda.org/Home_Page.html).

The end of May (May 25) features the Narrow Gauge 10 Mile run, which covers the Fort Lewis Rim and the Animas River trail. This race supports the Durango Running Club, Fort Lewis College, and Mark Witkes Memorial Scholarship. A four mile route is also an option.

The Steamworks Half Marathon takes place on June 7, and runners enjoy taking in CR 250 to Baker’s Bridge with a post-race party hosted by Steamworks.

On August 3, Kennebec Challenge Mountain run takes place in La Plata Canyon, with both an 8.5 mile option and a 15 mile option. This one benefits the Shanta Foundation  (building a school in Myanmar), La Plata County Search and Rescue, and the Durango Running Club.

These are just a few of the summer runs offered in Durango. In the fall, the Durango Double Road and Trail half marathon spans two weekend days, with a half marathon race each day.

Other races in the area include: the Mancos Cowboy Half Marathon (May 17), the Thirsty 13, a new race on August 23, the Mt. Sneffels Marathon/Half Marathon in Ouray (August 9), and several mountain runs in the area. We love these local races—the excitement of the challenge is a thrill! We hope you enjoy participating, volunteering, or spectating at some of these upcoming races. Keep an eye out for Max when you’re on the road!

Check out this website for additional Durango running info: http://durangorunningclub.org/

The Importance Of Wildfire Mitigation

As we approach the summer season we have so much to love about living in the mountains. However, this is also the time of year that we need to be cognizant of the potential for wildfires and the destruction they can bring. Wildfire mitigation is one of the topics that tends to be misunderstood, and oftentimes ignored until a fire danger is imminent. It is important for several reasons, even for residents living in-town. Ultimately, living in a mountainous area comes with an increase in fire risk. The trees, brush and slopes aid the rapidly-spreading capabilities of fire and threaten homes if left untended. 

Additionally, wildfire mitigation impacts homeowners insurance. The amount of wildfire mitigation completed on a home is factored into insurance qualification. When buying or selling a home, wildfire mitigation becomes a substantial topic. Buyers must consider homeowners insurance, and sellers should consider the insurance impact on potential buyers, and lower those costs by completing wildfire mitigation.

The ultimate question becomes: how do homeowners conduct wildfire mitigation, and what must be changed? While many opinions exist on this topic, there are a few basics to consider. Primarily, homeowners should consider the surroundings of their homes, and create a defensible space. An ember shower can cause a fire up to a mile away. The roof and immediate surroundings of the home should not have any fuel sources.

Most experts look at a home in three rings. The first 30 feet around a home should be void of fuel sources. This means there should be no firewood, low-hanging branches, dead vegetation/pine needles, or other ground fuel. The next radius encompasses the 30-75/100 feet from the home. In this area, trees should be heavily spaced and fuel breaks (gravel paths, driveways) should break the area. Trees should be pruned (or limbed up) 6-10 feet off the ground. The final radius focuses on the next 100-200 feet from the house, and is somewhat location specific. The area should be thinned from thick tree clusters, and potentially smaller trees should be removed when growing between larger trees. (See below links for additional details and suggestions).

In regards to homeowners insurance, Jim Duresky, a local insurance agent, notes three key areas in order to anticipate whether a home is acceptable to an insurance company: 1) Access to the house (can a fire truck access the home and have mobility in the area?), 2) the slope and elevation change within a quarter mile of the home (this is considered because fire travels quickly uphill), and 3) fuel sources around a home, as mentioned above. Many insurance companies are requiring a re-inspection program where agents are required to go to homes to re-inspect previously insured homes and properties. As original landscaping grows, the fire danger becomes more imminent, even for in-town homes. He suggests a fire mitigation inspection prior to buying and selling homes, in order to anticipate whether the home is acceptable to an insurance company.

I recently acquired a property in Edgemont Ranch that has central water and sewer, and the insurance company (not Jim Duresky!) terminated my insurance after a wildfire inspection.  We have mitigated the issues and have now resolved them, but it shows how much insurance is changing.

Clearly, wildfire mitigation is important if a fire does occur. Many of us remember the Missionary Ridge fire in 2002. While we hope another fire of that scope does not occur in the Durango area, thorough preparation will minimize losses. It will also impact the homeowners insurance rates as re-inspection occurs. All homeowners desire the peace of mind that accompanies a well-prepared property against wildfires.

See the below links for information resources on fire mitigation.

http://firewise.org/wildfire-preparedness/be-firewise/home-and-landscape/defensible-space.aspx?&sso=0

http://csfs.colostate.edu/pages/defensible-space.html

http://csfs.colostate.edu/pages/durangodist-wildfire.html