New Year's Resolution: Laugh More in 2011!

The late Erma Bombeck, one of America's funniest columnists and author of quite a few dissertations on the humor of life, knew the importance of laughter. "If I could live my life over," she once wrote, "I would have laughed more."

We always have fun here in my office and try to maintain a sense of humor. This coming year, we will strive even harder for that balance between seriously serving the needs of our real estate clients while doing so with cheerfulness, laughter and a positive attitude. It would be my pleasure to work with you on any of your real estate needs in the coming year.

Happy New Year!

"Life is huge! Rejoice about the sun, moon, flowers, and sky. Rejoice about the
food you have to eat. Rejoice about the body that houses your spirit. Rejoice
about the fact that you can be a positive force in the world around you. Rejoice
about the love that is around you. If you want to be happy, commit to
making your life one of rejoicing. " (author unknown)


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.

What Do You Want and Need in a Home?

I'm reproducing here information from REBAC, a subsidiary of the National Association of Realtors, regarding considerations for Buyers in setting priorities as they shop for a new home. I am proud to have the ABR designation (Accredited Buyer's Representative) that is awarded by REBAC.

"Finding a new home can be exciting. But deciding what you truly want and need—and can afford—can be challenging. Making these decisions begins with setting priorities among many different preferences. Most homebuyers invariably face trade-offs. Your buyer’s representative can play a key role in helping you sort out your options. He or she can also offer important insights specific to your local market. Here are many of the considerations you'll want to discuss with your buyer's rep:

Basic Home Features
*Do you prefer a single-family
detached home, townhome,
condominium, or other type
of property?
*Desired number of bedrooms
and baths
*Preferences regarding kitchen,
dining, family rooms, etc. and
preferred home layout
* High-priority home features,
such as kitchen appliances,
fireplace, etc.
* Other types of rooms needed
(e.g., a home office or a
hobby space)
* Storage spaces (closets,
basement, an outdoor shed, etc.)
* Need for a garage or
parking space, and if so,
for how many cars?

Other Home Preferences
* Ranch, two story, split level, etc.
F Age and style of home
(Victorian, bungalow, modern, etc.)
* How important is energy
efficiency or other green
home features?

Neighborhods/Location
* Commuting considerations
(to work, shopping, etc.)
* Proximity to desirable features
(such as a community center,
exercise facility, school, hospital, etc.)
* Views—how important is to find
your ideal view (overlooking a park,
for example) or avoiding a bad one
(a busy highway)?

Lot Characteristics
* Size and shape, including back,
front and side yards
* Landscaping considerations—the
need for open play areas, privacy,
patio space, decking, etc.
* Home orientation—is it important
for your home to face a particular
direction?

Life at Home
* If you’ll be sharing your home
with children, pets, live-in parents
or others, how does this impact
your housing preferences?
Both now, and in the future?
(For example, pets may require a
fenced-in yard; older parents may
dictate one-floor living.)
* Proximity to neighbors
Related Costs
* Homeowner association fees?
* Property taxes

Trade-offs
* How much do you want to invest
in a home beyond the purchase
price, either financially or in terms
of sweat equity, if you can’t find
exactly what you want?
* Are you willing to consider other
neighborhoods that provide
better affordability?

Resale
* How long do you plan to live in
this home? How does this impact
the type of home you will buy,
how much you’ll spend, and your
choice of location?"

Economic Vitality Tied Directly to Consumer Confidence

Dear Friends,

There was a time when my opinion about Durango, Colorado real estate was centered on Durango's unique character and charm. Durango is so desirable, with its quality of life, natural beauty, wonderful western heritage, and friendly people that I thought it was not affected by outside influences. The last few years have changed that opinion somewhat. I still believe Durango and surrounding areas have a much higher quality of life and that other regions have suffered much more in the economic downturn. But it has been proven to me that Durango has not been insulated. This is not a surprise to many of you. Now we know that what has happened in the Durango real estate market is directly related to national consumer confidence.

Our growth and return to economic vitality will be related directly to consumer confidence. I am convinced that people are willing to purchase when they are assured of continued employment and that their economic outlook is bright. The measurement of consumer confidence is determined with The Conference Board which was started in 1967. The benchmark year for The Conference Board is 1985 when the index was established at 100. The Conference Board modifies the index each month based on 5,000 households. The all time low was set in February of 2009 when it hit 25, reflecting the deep concerns for the recession and the financial collapse of 4^th quarter of 2008.

Today, the index through October stands at 50.2, still a very low number, and it continues to show the national pessimism of high unemployment, political discouragement, and a slow economy.

The real estate market will see improvement when the economy continues to pull out of the recession and jobs are restored. There are many national economists that are saying the economy is improving and is better than our national sentiment (confidence).

It is my hope and trust that the people sent to Washington in the most recent election will do something to inspire our nation, regardless of on which side of the political fence they reside. Second, I hope and trust our economy is improving at a rate better than estimated. Third, I hope and trust the banks and financial institutions will figure out how to loan money without unduly tough standards.

Those of us tied to the real estate business, including mortgage companies, appraisers, title companies and Realtors can not believe the incredible opportunity in the market today. We have the highest affordability in decades, abundant inventory, and interest rates lower than we have ever seen. A little consumer confidence could take us a long ways! For not just Durango, but for our entire country, I'm hopeful that in 2011 we will finally begin to see a brighter economic outlook.

Warm regards,

Don

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.

Durango Colorado Real Estate Statistics- Nov 5, 2010

La Plata County & Durango Colorado
Residential Market Conditions
November 5, 2010



The autumn market in La Plata County was significantly softer than the same period of 2009, following the slower showing activity in the summer. In my opinion, this is a direct reflection of consumer confidence, and the less than anticipated economic growth coupled with little or no job growth.

Residential Transactions For La Plata County: September & October

2010 2009 2008

98 121 140

The median price has shown a significant increase for the same period, but candidly, we do not see it in the direct comparisons for similar homes from one year to the next. The answer appears to be in the improvement of sales over $500,000, as savvy higher end buyers have returned to find “deals” to purchase.

Median Price For La Plata County: September & October

2010 2009 2008

$341,750 $285,000 $336,000

Average Price For La Plata County: September & October

2010 2009 2008

$401,516 $379,537 $384,194

Days on Market For La Plata County: September & October

2010 2009 2008

250 239 169




The Durango Market:
(Durango In-Town & Durango Rural)

Durango Market Sept-Oct: 2010 2009 2008

Transactions: 80 73 92

Median Price: $367,450 $369,000 $379,282

Average Price: $420,318 $452,923 $409,634

This market has fared better than the overall County with a small increase in transactions over last year. Currently, there are 836 homes on the market in Durango, which is approximately a 1.8 year supply.

YTD: Jan-Oct-La Plata County: 2010 2009 2008

Transactions: 525 453 623

Median Price: $315,000 $292,000 $325,500

Average Price: $380,591 $365,165 $389,942


The transactions are up 15.9% this year over last year, but we have been giving up the gains we made early in the year during the stimulus plan. For the first half of 2010, transactions were up 41.5%.

The inventory of homes, available for sale, in the County is currently 1,279. Based on a sales rate of 634 homes sold in the last 12 months, this equates to a two-year inventory of homes on the market.


YTD: Jan-Oct / La Plata County

Sales over $500,000: 2010 2009 2008

Transactions: 97 71 133

Median Price: $650,000 $675,000 $610,000

Average Price: $814,416 $827,118 $744,119

In this price segment, transactions are up 36.6% this year over last, but well short of the totals for 2008. The challenge in this market segment is the amount of inventory. As of today, there are 374 homes available for sale, a 3 year inventory.

Do You Have a Distressed Property? If so, this is important to read!

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.

In Real Estate A Picture Is Worth a Thousand Words!

I have always invested in good cameras and currently use one of the best digital SLR (single-lens-reflex) cameras for photographing listings. I have observed over the years in the real estate business that good pictures create more interest in marketing a property and attract more on-line attention. The importance of good pictures was also recently highlighted in a Wall Street Journal article titled "In Real Estate, A Picture is Worth $1000 or More." The article said that "real estate listings that use photographs taken by the higher-end SLR cameras favored by photgraphers and photography enthusiasts tend to do better than those that use photos from cheaper point and shoot cameras." This was according to a recent study that also showed "that listings with nicer photos get more online attention." The article said that not surprisingly, "listings with better photos command higher asking prices." Despite this, it was indicated that only 15% of listings incorporate higher-end photography.

I take pride that those sellers that choose to list with me are in that 15% that incorporate higher-end photography.

You can contact me, Don Ricedorff, at The Wells Group, 901 Main, Durango, Colorado, 970-375-7014 or via email at don@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.

10 Facts for Uncertain Times

Take a look at the below excerpt from a recent National Association of Realtors article outlining 10 key facts that do, taken as a whole, show positive signs for the future:

1. The economy is growing, though slowly.
2. The private sector is finally creating some jobs.
3. Consumer confidence remains low, though clearly off bottom.
4. The 30-year mortgage rate is at generational lows.

5. The national median-home price is stabilizing.
6. Other home-price measurements also are showing price stabilization.
7. Home price-to-income ratios have returned to fundamentally justifiable levels.
8. Economists expect price increases in upcoming years
9. Delinquencies are high but recent loan originations are performing well.
10. The long-term path to self reliance may be helped from long-term housing-wealth gains.

Taken from "10 Market Facts for Uncertain Times" September 2010, realtor.org

You can contact me, Don Ricedorff, at The Wells Group, 901 Main, Durango, Colorado, 970-375-7014 or via email at don@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.