Vail Area Ski Home Soon to be Included in a story entitled Top Ten Ski Homes

If you are looking for the finest craftsmanship in a home worthy of being called the "Castle of My Dreams," look no further. This is the most magnificent home offered for sale in the Vail Valley and offers such distinguished features as a spa-sized stone grotto, a true ski in-ski out location, a 30' outdoor waterfall, a wine tasting room, an elevator, an apres ski lounge and bar and truly intimate spaces. The location is high atop the gated community of Arrowhead in a peaceful and natural setting. The home offers 7 bedroom suites and 8 baths, numerous cozy fireplaces, stunning views and a smashing kitchen with a wood-burning pizza oven. The master bath is one of a kind, and no detail has been overlooked anywhere in this meticulous property. Perfect for a family or anyone who requires a special place for entertaining, this is a must see residence worthy of the most discriminating buyer. Call for a private tour or for more information on the Castle of your Dreams! This home has been chosen as one of the top ten ski homes in the U.S. and will appear soon in a featured story on the web.

Vail Valley Foreclosure Assistance - You Can Get Help

According to the Colorado foreclosure hotline website, four out of five homeowners who met with a foreclosure counselor avoided the process. This statistic is hard to believe but encouraging nonetheless for anyone in trouble with their home mortgage. If you need help, please call:

1-877-601-4673 (HOPE)             It's free! or visit: http://www.coloradoforeclosurehotline.org/index.cfm

It is a very scary prospect to think of losing your home. Loan modification progrmas have been unsuccessful for many, but the government is insisting that uncooperative lenders take action to prevent more foreclosures. Here is another informative website with lots of questions and answers: Here is a good website with lots of Q&As that may help or at least explain some things:

http://portal.hud.gov/portal/page/portal/HUD/topics/avoiding_foreclosure

So, even if you think you have exhausted all possibilities, I bet you haven't. You can call me too. I will be happy to assist you and try to help you keep your home. I can be reached at http://www.investinvail.com/

October Home Sales Rise - Largest Monthly Increase in 10 years

The National Association of Realtors said home resales rose 10.1 percent to a seasonally adjusted annual rate of 6.1 million in October, from a downwardly revised pace of 5.54 million in September. It was the biggest monthly increase in a decade. This is certainly good news for the real estate industry as well as for the overall economy.

Many of these purchasers were rushing to close before the original deadline of November 30th to be eligible for the $8000 first-time buyer tax credit. I would expect that November numbers will be just as good, if not better.

Now that the credit has been extended to April 30th, the frantic pace may slow down somewhat; however, in many resort areas, which tend to lag the national economy by 18-24 months, buyers are enjoying a terrific market in which they can pick and choose and bottom fish for deals. Those opportunistic days are already over in places like San Diego and Las Vegas where sellers are receiving multiple offers and prices have started to stabilize and even rise.

Vail Valley buyers are wise to consider getting into the market now for several reasons: the supply is still enormous which truly provides a great opportunity to find the perfect home, interest rates are historically low, many sellers are in trouble and will accept much less than they are asking and the tax credit has been extended for those wishing to trade up or buy for the first time (in the last 3 years).

While we may not be at the very bottom of the market, we are well into the trenches and opportunities abound!

Reverse Mortgages

Times are a changing, and the US population continues to age bringing more and more people closer to retirement. Many hopeful retirees have a substantial portion of their net worth tied up in their homes. What if you are unable to make your mortgage payment comfortably and want to stay in your home?

You may want to consider a reverse mortgage, which could allow you to stop making mortgage payments and even receive a monthly income. Instead, the amount you would owe in the form of a payment in addition to a hefty "fee," would be accrued and added to your principal balance (negative amortization). When you pass on or sell the house, your mortgage would be paid off.

Currently, only FHA is offering this program, and it is not right for everyone and should be thoroughly understood. AARP has valuable information on this topic.
There are many options available, and some people may need to tap into the equity in their home without having to make monthly payments common when drawing on a HEQ line of credit.

How do you spell RELIEF?...... FNMA - do you hold my loan?

FNMA (Fannie Mae) announced a new program last week aimed at helping home owners stay in their homes. FNMA announced the D4L (deed for lease) program which may allow homeowners or renters to stay in their homes by signing a 12-month lease and turning the deed over to FNMA. Second liens need to be forgiven and the rent payments can't exceed more than 31% of the family's gross income. This program is designed for people who do not qualify for loan modification and are facing foreclosure.

How do you tell if your loan is owned by FNMA (Fannie Mae) or FHLMC (Freddie Mac)?
Check these sites:

http://loanlookup.fanniemae.com

https://ww3.freddiemac.com/corporate/

Homebuyer Tax Credit Extended

Obama signed an extension to the home buyers $8000 tax credit. The credit will extend to buyers who close on or before April 30,2010 and includes buyers who wish to purchase a more expensive home. The credit applies to homes with a purchase price under $800,000. The income limits were raised to $125,000 for single taxpayers and to $225,000 for those filing jointly. The previous income limits were $75,000 / $150,000. An estimated 2 million buyers will take advantage of this tax credit extension.

The real estate markets need all of the help they can get. This is a boost and will certainly help what will likely be a soft 2010.

Vail Valley Real Estate Statistics - Higher Volume - Lower Prices - Big Increase in Properties Under Contract

Here are some statistics that will probably not surprise most of us in the real estate markets. Volume is up and prices are declining. Basic math provides the following insights:

Since January 1, 2009 there have been 417 residential real estate closings *
The average sold price has decreased by 17%
The average days on market has increased by 19%
The sold price as a percentage of the list price is 86%

In the last 30 days:

The number of active listings is 1621, down about 10% from August (as one would expect from properties being placed back into the rental pool for the ski season).
65 sales in the last 30 days, a 40% increase from the month of August.
The average sold price is $1,012,854, down 6% from August
Homes are still selling at 86% of list price
The average sold price per square foot is $417
The average cumulative days on the market is 277.

The statistical data above refers only to properties listed in the MLS and are believed to be accurate with no guarantees.

Of great note is that in the last 30 days, 165 properties have been put under contract. This is an increase of 165% from August. My personal take on this uplifting statistic is that many people believe we are nearing the bottom of the real estate meltdown in this Valley. While there is still tremendous downward pressure on prices, an increase in volume is a leading indicator of a recovery, even if it is 1-2 years away.

First Time Homebuyer Tax Credit Extended?

The US Senate will vote tonight on the Dodd - Lieberman - Isakson Amendment to Extend and Expand the $8,000 First Time Homebuyer Tax Credit. If passed, not only would first-time buyers who have not owned a home in the last 3 years be included, but so would existing homeowners looking to upgrade their home. A sliding scale is being proposed with a greater credit being offered to those homeowners who have lived int heir current residence for at least 7 years. Income limitations will apply and are being suggested at $150,000 for a single taxpayer and up to $300,000 for those filing jointly.

Vail Real Estate Statistics - the market is improving!

Although the number of active residential listings in the Vail Valley is still hovering around 1800, the number of properties which have gone under contract or sold has jumped dramatically in the last 30 days. 46 properties have closed in the last 30 days which represents an increase of 24% from the preceding 30 days. Additional good news can be found when evaluating the number of properties which have gone under contract. Int eh last 30 days 70 properties have gone under contract representing an increase of 52% from the previous 30 days.

Of interest in the sales data for the last 30 days and last 46 sales:
The average sold price was $1,072,482
The average list price as a percentage of the sold price was 89.47%
The average cumulative days on the market was 253 days.
The average sold price per square foot was $454.

I have personally put two properties under contract in the last two weeks and submitted offers for clients on others. I feel that although the sentiment has begun to turn, this is the summer spike we usually see in Vail real estate sales. Nonetheless, we will take any good news in the real estate market these days.

Vail HOTLIST - fish in your back yard

Put this on the HOTLIST!!! Single family home on the Eagle River which has been meticulously maintained has $196,000 price drop. Enjoy superb views and the sounds of the rushing river from the large entertaining deck. Fish in your back yard. Just minutes to all of the conveniences of Avon. Four bedrooms and 3 1/2 baths in this private hideaway built in 1990. Plenty of space for the family and beautiful landscaping. Don't miss this. Two duplexes sold in 2007 for over $1.4 million just down the street. Located right between Vail and Beaver Creek ski resorts. Call for a showing at any time and see more photos at www.investinvail.com

Auctions versus New Marketing Strategies

The latest craze in the real estate markets in the Vail area are for properties to go to auction. Suggesting an auction tends to create a buzz around a property as the word auction usually suggests that a property may be sold well under air market value. The term auction, according to wikipedia, reads as follows: "An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder." This is not necessarily true of all auctions but is true for an absolute auction.

Typically, real estate firms who want to move their listings and generate interest in properties will put together an auction which requires a reserve or minimum bid. So, the seller knows the downside going into the auction, and if their minimum price is not achieved, the home does not sell. In both types of auctions, prospective buyers are invited to come and tour the property before it goes to auction. Savvy and interested buyers will perform necessary due diligence, usually with the assistance of a qualified realtor, and make an informed decision as to their intent to bid. Buyers are required to be pre-qualified and must show up with a substantial amount of liquid funds to participate. At an absolute auction, like a foreclosure auction, the highest bidder wins, no matter how low the price.

So, next time you see an advertisement for an "auction." Pay attention and take notice as to whether or not this is a group of properties for sale with minimum bids or an absolute auction. For more information on local properties going to auction, call or email me.

Vail Real Estate Inventory Still Rising

There are officially 1806 active residential listings in the Vail Valley as of today. That represents an increase of 25% since the first quarter of 2009 and an 8% increase in the last month. My phone is ringing off the hook with people wanting to sell their properties. I am still taking listings if the sellers are serious and willing to price aggressively. Many real estate professionals I know have decided to decline new listings as they are simply not seeing any buyer traffic. The rental market is not faring much better but there is hope for that segment as we head into the next ski season. We are still on the slippery down slide here. Hang on to your hats, and buyers take notice. Commercial properties and new developments will be the next big hit to the market - mark my words. It does not cost me a thing to be optimistic but I am also realistic and the numbers just don't lie.

Eagle Vail Floodplain Information

Recently, about 350 homeowners in Eagle Vail received a somewhat confusing notice about the new floodplain mapping project. Most of the affected residences lie in what is being referred to as "shaded zone X." This type of an area is one that has been identified as having an increased risk of flooding. In this case, the projected flooding is 1' or less. These zones do not require any additional homeowner insurance or that you even contact your insurance company. This map is preliminary until its acceptance by FEMA, likely to occur in the next 90 days. For more information, please come to the community meeting on June 15, 2009 from 6:00pm to 8:00pm at the Eagle Vail Pavilion.

Got Water???

"Water....Colorado's 21st Century Gold".....that was the name of a class I took last year which clearly spelled out why 21 different states are fighting over water which originates in Colorado, a headwater state. Did you know that all of the water that will ever be found on our planet Earth is already here? It just changes shapes and location. I do not frequently promote my own listings on my blog, but I feel compelled to share with you the incredible opportunity that awaits in the following listing which carries water rights appropriated in 1918,1884 and 1903 and adjudicated in 1936, 1901 and 1919. If you want 35 acres suitable for horses, cattle or organic farming, this is your chance. The owner has also agreed to finance up to 100% of the purchase price for qualified buyers. Here are the details:
35 acres in the exclusive, gated community of Sorrell Hills just 5 minutes from Eagle, Colorado. Flat parcel with speactacular views to the New York Mountains and plenty of water. 98% fenced and a well in place in addition to electrical, phone and cable services. Please visit www.investinvail.com or call me at 970-376-8000.

Vail Colorado Tax Valuation Notices - Yikes!

Tax valuation notices were mailed to all Eagle County property owners this week and many property owners are not happy. You may be surprised at the increase in your assessed value for tax purposes. Remember that the new value is based on the value of your home between January 2007 and June 2008 (before the big financial melt down and ensuing real estate crash). Now is a great time to call your realtor. A real estate professional can look up comparable sales for you and give you some ammunition for an appeal or let you know if the new value is reasonable. You have until June 1st to appeal the valuation, so pick up the phone and try to save your self some money! More information available at the county assessor's website at: http://www.eaglecounty.us/uploadedFiles/Assessor/News/News_Items/Valuation%20Notices%2004%2020.pdf

FASB loosens asset valuation terms

The independent Financial Accounting Standards Board decided today that assets on the books of banks can be valued in an "orderly" manner. According to Reuters " FASB says the objective of mark-to-market accounting is to set a price that would be received by a bank in an "orderly" transaction in the current, inactive market. It says an "orderly" transaction for accounting purposes does not include the forced liquidation or a distressed sale of an asset." There is mixed emotion to this ruling but some analysts predict this could help battered bank shares rise as much as 20%. Critics claim this will decrease the transparency of evaluating assets potentially leading to more problems down the road in the troubled asset classes (at least I didn't say toxic). The effect could be very positive for real estate markets as this may help to loosen the credit markets as banks possibly can decrease the necessary reserves if the value of their assets rises feasibly allowing them more money to lend.

Vail Property Inventory and Parking for Fancy Cars

Every day I look at the Vail MLS and watch what is going on in our valley in the real estate markets - that's my job. Lately, I've been paying more attention to what is actually going "under contract" and what is actually "selling" than the hot new listings. It is not uncommon on any given day to see 30 different listings with drastic price reductions. Often, this is accompanied by an email from the listing agent who points out that the price has been reduced another $37,000 on a $2 million dollar listing - BIG DEAL is what I say. Just today, I saw prices being reduced by up to 20%! The Vail Valley currently has about 2051 active listings for property (commercial, residential and land). In January of this year, 22 deals closed and 32 transactions closed in February. My math figures that we have a 76 month supply of inventory or just over 6 years. So, I think the sellers need to get real and offer something unique. This could include a great property at a great price, owner financing or other innovative incentives. By the way, a Founders garage parking space in Vail Village just closed today for $250,000, so people are still spending money in Vail.

1st Time Homebuyer Tax Credit

Last fall, the Federal Government introduced a financial incentive to prospective first-time homebuyers — an income tax credit of up to $7,500. The rules were simple: you must have been a first-time homebuyer (as defined by not owning a home in the previous three years) and you met certain income restrictions.
The new $8,000 tax credit is available to those who buy between January 1, 2009 and December 1, 2009. It’s not a deduction, it’s an actual credit. Unlike the $7,500 first-time homebuyer tax credit introduced last summer; this does not need to be repaid.
First timers who qualify can make no more than $75,000 in adjusted gross income if they’re single or $150,000 if filing jointly. The maximum tax credit is $8,000 or 10 percent of the sales price of the home, whichever is less. Three years residence in the property are required. As always, check with your accountant for details and be sure to submit IRS form 5405 when you file your taxes.

If you are Thinking of Selling Your Home in Vail, be sure it will Stand Out among its competitors

Since there are fewer buyers looking at properties, what will it take to make your home the #1 choice of those searching? Pricing, condition, marketing and finishes are all controllable variables. Remember that first impressions are LASTING impressions. Do everything you can to make your home stand out and by all means keep it accessible to potential buyers. Other options include offering owner financing, paying closing costs or buying down the buyer’s interest rate. Call me for more creative strategies and a free market analysis. http://www.investinvail.com/

The $1 million dollar question? Is it time to buy real estate in Vail yet?

The answer is yes, but very selectively, and it is getting ever harder to sniff out a good deal. Homeowners with $500,000 properties and those with $5 million homes are riddled with debt problems and loss of income. The trick is figuring out which ones and who is really ready to make a deal.
According to Barron’s (11/24/08) the price of luxury homes (greater than $5million) is down 20% since peaking in 2007 and is expected to drop another 10-15% before bottoming out in 2010. Without further belaboring the dismal economic news and statistics from the last 3 months or so, we are nearing the worst recession since the Great Depression. In 2008 the S&P 500 returned a distressing negative 37% wiping out trillions of dollars of paper wealth (which seems to equal real wealth in the minds of many.) Our resort valley, which has been so immune to the pressures belying the rest of the country or world has finally succumbed to outside influ-ences. Short sales and foreclosures are rising at an alarming pace, and we have even seen absolute auctions taking place in Beaver Creek and Arrowhead. To read the rest of the newsletter, please visit my website at http://www.investinvail.com/