Question:  What’s Up with Housing Inventory?

I am excited to have Chip Wagner, an icon in the appraisal industry and friend of “Keeping Matters Current” as a guest writer today.  Although Chip’s observations are primarily about Chicago- it’s a great “primer” to remind us of how the housing sector works and it is relevant to the majority of the country.  I’ve said it before, and I’ll say it again – remember that the Summit County Real Estate market tends to lag behind Denver and the national economy by about 18-24 months, historically. Enjoy this information from Chip!

It’s All About Supply and Demand

Definitions of Supply and Demand:

 Dictionary.com

In classical economic theory, the relation between these two factors determines the price of a commodity. This relationship is thought to be the driving force in a free market. As demand for an item increases, prices rise. When manufacturers respond to the price increase by producing a larger supply of that item, this increases competition and drives the price down.

In real estate appraisal context, the principle of Supply and Demand states that:

The price of real property varies directly, but not necessarily proportionately, with demand and inversely, but not necessarily proportionately, with supply.

My most simple explanation of Supply and Demand is: It is the relationship between sellers present in a market, which is the supply; and buyers looking, which is the demand. This relationship is reported in months’ supply of inventory.

So, what is the latest challenge?

Some (or most) might say that there are not enough “good” homes for sale. This could represent a shortage of supply, something we have not talked about for several years. It is allowing sellers to raise their asking prices and buyers who have been ‘shopping around’ are now willing to pay higher prices based on other homes they are comparing and/or contemplating to the home that they want.

Why aren’t there many “good” homes for sale?

There are several contributing factors:

1. New construction – We are seeing new construction picking up again at all price points, which is certainly a positive. But with fewer builders, and more conservative approaches after getting burned, builders are not keeping up with the demand that is present. This is leaving buyers searching for resales. And because of the slowdown in new construction, (few new homes were built between 2007 and 2012) the nearly-new resales rarely exist.

Lack of new construction is a contributing factor as many builders folded or downsized significantly over the past 5-6 years.

2. Foreclosures – Foreclosures are a trend that is affecting supply of inventory. Banks are slower at foreclosing, in some cases taking over 3 years through the process. In some cases, the buyers aren’t even interested in these properties, and the investors are picking up these properties and flipping them at a profit.

Foreclosure properties, once viewed as a deal perhaps 25% to 40% under market values, are now being sold at only a 7% discount according to RealtyTimes.com.

3. Investors – Investors have entered the market at greater levels, some to purchase properties to rent, others to rehab and flip them. With the high inventory, investors were able to seek out the best deals, now there are fewer homes available for them.

4. Few people really want to sell at the bottom – Personally, I think the biggest reason that our inventory is low is simply because everyone wants to buy at the bottom; but what seller really wants to sell their home at the bottom of the market? That being said, there are many sellers who cannot sell.

Recently, I heard Steve Harney speak at the Leading Real Estate Companies of the World Conference; he stated there are over 10 million people that are still under water and cannot sell their homes. That is a significant number – these are ‘move-up buyers’ that will create a domino effect. A portion may also represent the potential downsizing buyers who have that upper priced home to sell. This is a very complicated situation. There are many opportunities in the market as demand continues to surge.

Move-up sellers have pent up demand and are ready to buy – if they can sell!

Remember, our market dropped 37.6% as a region since 2007 (some areas fell less than 20%, and other areas fell greater than 50%). The buyers with 20% down lost equity in their homes. Buyers with 5% or 10% lost substantial equity in their homes. If they sell today, they don’t have the down payment necessary for that next home.

Various predictions by “experts” suggest our recovery may be anywhere between 2% and 8% annually. At a conservative 4% annual rate of recovery, it is 5 more years before we can reach 20%.  Those who last purchased their home between 2006 and 2008 are being hurt the hardest in today’s market.

One positive is that renters are ready to purchase. Generation X and Y buyers now believe in homeownership; they want to get out of renting apartments because rents continue to go higher than taking out a mortgage. Interest rates remain at historic lows, with no indication of a significant increase of rates on the horizon.

Back to Supply and Demand …

A balanced supply of inventory is considered to be 4 to 6 months. A balanced supply is going to be neutral in pricing, while an undersupply is going to lead to upward pressure on prices – a Seller’s Market. An oversupply will lead to downward pressure on prices – a Buyer’s Market.

Our supply of inventory is at its lowest level since the end of 2006 and most areas have been reduced to a balanced supply of inventory, with undersupply observed in many sub-markets in the region.

The anticipation is that the pricing will continue to be pressured upward as the desirable properties (in terms of location and condition/modernization) will be gobbled up. Remember the multiple-contracts driving up values last decade? Many agents are now experiencing these trends again.

Get ready for a wild and crazy ride as our real estate market is pulled and pushed in all directions in 2013

Here are a few things to watch…

• Watch the days on market (DOM). Take time to understand if an area’s high DOM may be due to stale listings of homes that are overpriced, distressed and/or in inferior condition.
• Trend the increasing Sales Price-to-List Price ratios - in many sub-markets that I appraise in, I have seen these trend from 93% to 96% or higher just in the past year.
• Track the number of pendings in relationship to the number of listings? One appraiser friend of mine tracks this and calls this “market velocity.” Right now, I see some areas where there have more pendings than listings in a given sub-market.
• Are the pendings priced higher than the previous sales prices? Another indication of an increasing market that I am seeing in many areas.

Welcome to, we all hope, the Slow and Steady Housing Market Recovery!

For answers to your real estate questions, call Allison at 970-468-6800. Email - Info@SummitRealEstate.com. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com  

When the economy was exploding in the early 2000s, many people began to dream about purchasing that vacation home in the mountains. However, with the booming economy came those skyrocketing house prices. Many of the homes we fell in love with quickly became out of reach financially. Now may be the time to look at those homes again- and give it some more thought!  Is this the year? 

With prices dropping by over 30% in some markets and with interest rates at historic lows (I can’t believe how low the rates are!), this may be the perfect time to do what you and your families have always dreamt of doing – buying that resort or retirement home.  Let’s look at the numbers.

Back in 2006 we may have seen the ‘perfect’ home but the $500,000 price tag was just out of reach. Today, we could probably get that home for $400,000 (if not less). We also would be financing it at the current mortgage rate instead of the rates available six years ago. The table below shows the difference in impact on our family’s finances:

Not every family is in the financial position to take advantage of the tremendous opportunities the current real estate market offers. But, if yours is, this may be the time for dreams to come true. (Graph reprinted with permission from the KCM Crew)

For answers to your real estate questions, call Allison at 970-468-6800. Email - Info@SummitRealEstate.com. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com  

The beauty of our county is spectacular this month - I know I probably say this every year, but I don't think I've ever seen the leaves look prettier!  They are just breathtaking this year!

If you love Summit County and own a place here, but find, as many do, that life has gotten in the way and you just don't get up here enough anymore and if you are thinking of selling, I came across this article from the Keeping Current Matters Crew that you might ponder: 

5 Reasons to Sell Now

 Many sellers feel that the Spring is the best time to place their home on the market as buyer demand increases at that time of year. However, the Fall and Winter have their own advantages. Here are five reasons to to sell now.
1. Only Serious Buyers Are Out
At this time of year, only those purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere ‘lookers’. The lookers are at the mall or online doing their holiday shopping.
2. There Is Far Less Competition
Housing supply always shrinks dramatically at this time of year. This year will be a little different as some of the distressed properties being liquidated by the banks (in the form of foreclosures & short sales) will enter the market. However, for those buyers looking for a non-distressed property, the choices will be limited. Don’t wait until the spring when all the other potential sellers in your market will put their homes up for sale.
3. The Process Will Be Quicker
One of the biggest challenges of the 2012 housing market has been the length of time it takes from contract to closing. Banks have been inundated with both purchase and refinancing loan requests. Both of these will slow in the winter cutting timelines and the frustration these delays cause both buyers and sellers.
4. There Will Never Be a Better Time to Move-Up
If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 15% from now to 2016. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with historically low interest rates right now. There is no guarantee rates will remain at these levels in years to come.
5. It’s Time to Move On with Your Life
Look at the reason you decided to sell in the first place and decide whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?
You already know the answers to the questions we just asked. You have the power to take back control of the situation by pricing your home to guarantee it sells. The time has come for you and your family to move on and start living the life you desire. That is what is truly important.

Enjoy the week and if you are in Dillon this week, stop by and say hello! 

 

We awoke to a beautiful dusting of snow on the mountain peaks this morning....this fall has been absolutely breathtakingly beautiful.  I hope you have had a chance to get up here and enjoy it! 

Here is some good news on the condo financing front that you may be interested in: 

Real estate industry welcomes changes to FHA condo rules
Investor ownership limit upped, legal liabilities for HOA boards reduced
By Ken Harney, Friday, September 14, 2012.    

Inman News®


The Federal Housing Administration has finally done what it promised back in May: published revised rules that could convince condo associations across the country to get certified or re-certified for financing, thereby opening individual unit owners and sellers to low down payment, FHA-insured mortgages once again.

For condo boards, real estate agents and property managers, the long-awaited rule changes announced yesterday should prove to be "excellent news," that will "help spark home sales and help tens of thousands of condominium associations recover from the housing slump," according to the Community Associations Institute, the largest U.S. trade group in the field.

Among other changes, the rules eliminate some of the legal liability headaches that caused many condo boards to balk at FHA certifications; raise the permissible investor-ownership limit; and increase the percentage of non-residential, commercial use allowed in an FHA-certified project.

To Christopher Gardner, managing member of FHAProsLLC, a Los Angeles-based firm that assists condo boards with their applications for FHA certifications, the changes "aren't a home run but maybe a double," but should still significantly reduce the impediments associations encountered in seeking FHA approvals.

Under federal rules, individual units in condo projects are not eligible for financing unless the entire project has passed FHA's certification process, which looks at project budgets, reserves, forthcoming capital improvement needs, insurance policies, delinquent payments of association dues, composition of renters versus owner-occupants, and various other factors.

Industry experts welcomed the revisions to the certification form itself, which previously intimidated condo association officers because it appeared to ask them to accept broad legal liability on matters they couldn't totally be certain about, such as disputes among tenants in the building, litigation filed with courts involving the condo project or board, compliance with local and state regulations and the like.

Though FHA attempted to reassure them that it would be rare that the government would seek the maximum penalties in cases of misinformation in applications for certification, those penalties nonetheless were daunting: up to $1 million in fines and 30 years in prison.

Now the certification form asks a single signer representing the association to attest that, to the signer's knowledge and belief, the information in the application is accurate, has been reviewed by an attorney, and that the project complies with local and state regulations.

The signer also must warrant that he or she has no knowledge of circumstances that might have an adverse impact on the project, including construction defects, "operational issues," or legal problems. The federal penalties remain, but consultants such as Gardner say the revisions should alleviate "a lot of the fears" boards had with the previous language.

The rule changes published Thursday are "temporary" until FHA replaces them with formal, final regulations that would be preceded by proposed rules giving the industry additional opportunity to seek improvements. The new policies also represent the culmination of lengthy negotiations between FHA and industry groups, including NAR, CAI and consulting and management firms that started last spring.

At a conference held by the Northern Virginia Association of Realtors Thursday, acting FHA commissioner Carol J. Galante said the revisions show "that we listened" to the critiques from the industry, while still protecting the government's insurance funds.

Under the previous rules, condo associations abandoned FHA in droves, even at significant costs to their own unit owners who suddenly had difficulty selling because FHA financing was no longer available to purchasers.

Only one out of 10 condo associations that would normally qualify for FHA financing currently is certified, according to Gardner, whose firm maintains a massive database of information on condos. HUD confirms that just 2,100 out of a possible 25,000 projects had obtained certifications or recertifications as of late last year.

The human costs of the previous rules were sometime extreme, Gardner says. In one case, an elderly woman who owned a unit in a non-certified community sought to obtain an FHA reverse mortgage in order to help pay the costs of her cancer treatments. The condo board said no -- it didn't want to run the certification gauntlet or take on the legal liabilities.

Among the key changes now in effect:

    The investor ownership limit in existing projects has been raised to 50 percent. Previously there was a 10 percent cap on the number of units owned by any single investment entity. Now the rule states that "any investor/entity (single or multiple owner entities) may own up to 50 percent of the total units…if at least 50 percent of the total units in the project" are owned or under contract for purchase by owner-occupants.
    The percentage of space used for commercial/non-residential purposes in a project is limited to 25 percent, but applicants can request exceptions up to 35 percent and even above in certain mixed-use developments that are still "primarily residential" in character and where the project is "free of adverse conditions to the occupants of the individual condominium units."
    Condo associations in which as many as 15 percent of unit owners are 60 days delinquent on their condo fees will now be eligible for certification. Under the previous rules, no more than 15 percent could be 30 days late. This was a major issue for many associations since they didn't track 30-day delinquencies. Industry groups had sought a 90 day delinquency standard.
    Previous confusion over FHA requirements on fidelity bonds for management companies -- with coverage that sometimes duplicated what was already maintained by the condo association itself -- appears to be resolved. If the association's fidelity bond policy names the management company as an insured or agent, it should pass muster.

We are cautiously optimistic that these changes will make a positive impact on the Summit County real estate market! 

We are just about at the 1/2 way mark for the year 2012.  Where are we? What is going on in the wide world of Real Estate in Summit County?

For all the details, click on the links below!

1) Breckenridge

2) Dillon

3) Frisco

4) Keystone

5) Summit County

6) Wildernest_Silverthorne

Question:  Allison, we are interested in buying property in Summit County, CO.  What should we be on the lookout for?

Answer:  The home-sale market is showing signs of life. More buyers are confident now than they were a year ago that now might be a good time to buy. Interest rates are near all-time lows and home prices in some areas nationally are back to 2002-2003 levels.  In Summit County, the prices are back to 2005-06 levels in many areas.

According to Dianne Hymer, with Inman News some analysts are finally suggesting that we may be headed for recovery. If you have a secure job, plan to stay put and feel this is the right time for you to buy a home, consider the following.

In most places in the country, home prices are still declining. It has only been recently that the market picked up and it's too soon to know if this will result in a sustainable increase in prices.

The recent home sales in areas around California's Silicon Valley defy the norm. Significant job growth in the area combined with a low inventory of good homes for sale has resulted in multiple offers with buyers bidding the price up sometimes hundreds of thousands of dollars over the asking price.

In other high-demand, low-inventory areas, you may find yourself bidding against other buyers, perhaps even more than once. This doesn't necessarily mean that the price will be bid up significantly over the asking price. This will vary from one listing to the next depending on property location, condition and price.

It's important to research the local community where you want to buy. Find out what homes are selling for, if multiple offers are common and if listings are selling for more than the asking price. This will help you make a realistic offer that might be accepted when you find a home you'd really like to buy. It helps to work with an experienced local real estate agent.

Some sellers in high-demand niche markets intentionally list their home at a low price hoping to stimulate multiple offers. If you see such a listing and there are a lot of buyers wanting to make offers, you will be better able to know how high your offer would need to be to win the contest if you have done your due diligence.

HOUSE HUNTING TIP: Whether you're anticipating competition or not, you should be preapproved for the mortgage you'll need to complete the purchase before you write an offer. In competition, this will make a big difference, particularly if everyone else who is offering is preapproved. It also lets you know what you can afford. And, it puts you in a good bargaining position with the seller.

Buyers aren't the only participants in the housing market that have heard the news that the market has improved. Some sellers are putting their homes on the market because they've been waiting for a better time to sell. This is good news for buyers looking in low-inventory markets.

You should expect that you will have to negotiate. Many of today's sellers are selling for less than they paid. Even though the market has improved a bit, sellers may be disappointed with the current market value of their home. Be prepared to negotiate, not just the initial price, but after inspections are completed if items come up that you hadn't anticipated.

Include realistic contingency time frames in your purchase contract for loan and appraisal approval if you're applying for a mortgage. The recent uptick in the market means that lenders are suddenly overwhelmed.

THE CLOSING: Underwriters could require that additional conditions be met before you can be approved. Act quickly to avoid further delay.

For answers to your real estate questions, call Allison at 970-468-6800. Email - Info@SummitRealEstate.com. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com  

3 common home purchase roadblocks

Do you know your sellers' true motivation?

Question:  Allison, we have been looking for a place in Summit County for over a year now.  We’ve seen several that we like, but just can’t seem to “pull the trigger”….any suggestions on how we’ll know when we’ve found the perfect place?

Answer:  You are not alone!  Buyers who find a home they'd like to buy soon after they start their home search often pass on it because they feel they haven't seen enough listings. Months later, when they haven't found anything to compare to the first home they really liked, they can regret that they didn't seize a great opportunity when they had a chance.

It takes a leap of faith and complete trust in your real estate agent to make a quick move in a market that's new to you. You'll feel more confident when you've done your homework and know the reasons why some listings sell for more than others. This is a process that takes time and is time well spent.

A characteristic of the current home-sale market, particularly in or near areas where job growth has improved significantly, is that there are not a lot of good homes for sale. In these niche markets, there tend to be more buyers looking than there are homes to satisfy the demand.

The housing market is bifurcated. Unlike the high-demand enclaves inspired by a pickup in employment, there are many more areas where there are far too many unsold homes and with too few buyers. This tends to have a dampening effect on home prices.

How long it takes you to find a home will depend in part on whether what you're looking for is readily available. It will also depend on how many buyers are looking for the same kind of home you'd like to buy. If there's competition for a scarce commodity, you might make offers on several homes before you are able to convince a seller to accept your offer.

HOUSE HUNTING TIP: Investors snap up foreclosure listings quickly, but they aren't going to call these places home. It's rare for buyers to find a home they want to occupy as their primary residence quickly, either due to specialized housing needs or lack of inventory. Put the time you spend waiting to good use by learning more about the community in which you want to live. Patience should be your motto.

Patience is also needed to carry you through the contract negotiation and closing. Although each home-sale transaction is unique, it's not uncommon for a glitch to come up at some point. Some homes don't appraise for the price you've agreed to pay. If you don't have any additional cash to add to the deal, and the seller won't renegotiate the price, you'll be back at square one, looking for a home to buy.

The glitch could occur before your offer is accepted if the sellers are stubbornly unrealistic about the price they're asking. Recently, buyers were encouraged to make an offer on an overpriced listing that had been on the market for months. The buyers reluctantly made an offer for the top price they could pay for the house. The sellers flatly turned the buyers down and said they would never sell for that price.

Three months and one price reduction later, the house still hadn't sold. The buyers were again encouraged to make an offer. They made an offer for the same price they did the first time, but the terms were more agreeable to the sellers. It was accepted.

Many unrealistic sellers never come around. Don't waste your time on sellers who don't have a strong motivation for selling. There's a big difference between sellers who want to sell only if they can get an unrealistic price, and sellers who have purchased another home and have no need for the current one.

Until you have an accepted offer, keep your eye on the market; don't miss a listing that will work for you and is reasonably priced.  Good luck – and keep trying!  You’ll find your perfect spot in the mountains!

For answers to your real estate questions, call Allison at 970-468-6800. Email - Info@SummitRealEstate.com. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com  

I’ve had lots of questions lately about 1031 tax deferred exchanges and thought it might be time for an update!  This information is from Bankers Escrow Corp and Mary Lou Schwab.   

Great News! The I.R.S. will not challenge whether a vacation property or second home qualifies for a Section 1031 Exchange if certain specified ownership and use requirements are met.  The I.R.S. released Revenue Procedure 2008-16 providing definite guidelines for a safe harbor 1031 exchange. 

To meet the safe harbor requirements, a taxpayer, during the 24 months prior to the sale or after the purchase of a vacation property or second home must:

1. Rent the property at fair market rent for a minimum of 14 days during each 12 month period of the 24-month period.

2. Taxpayer’s personal use of the property cannot exceed the greater of 14 days per year or 10% of the days the property is actually rented during each of the two 12-month periods before or after the 1031 exchange.

Personal use is defined as:

• Use by the taxpayer or any other person who has an interest in the vacation or second home property, including a tenant-in-common interest.
• Use by any individual who uses the property under an arrangement which enables the taxpayer to use some other property.  No trading places allowed!
• Use by any member of the taxpayer’s family unless the vacation property is rented out as a primary residence at a fair market rent.
• Use by any other individual if rented for less than fair market rent.

Maintenance days do not count as personal use days. If the taxpayer is engaged in repair, upkeep and annual maintenance on a substantially full time basis for any day, a personal day is not claimed.  The taxpayer must be ready to prove that the actual work was done and this can include overseeing a contractor that is providing the work on the property.

In summary, a taxpayer can take a second home or a vacation property and rent it at fair market value for 14 days per year for two years and then exchange out of it. Remember that personal use must be limited during these two years.  Revenue Ruling 2008-16 provides these guidelines for a safe 1031 exchange.  Taxpayers must also satisfy all other requirements for a like-kind exchange. Always check with your tax advisor before engaging in any 1031 exchange transaction.

Mary Lou Schwab is a CPA and a Certified Exchange Specialist.  She oversees the 1031 division at Bankers Escrow Corp. and can be reached at 800-571-6595 or 303-986-4848.

For answers to your real estate questions, call Allison at 970-468-6800. Email - Info@SummitRealEstate.com. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com  

Question:  Allison, we have had our Silverthorne, CO home on the market for several months with lots of showings, but no offers.  We feel like our price is right – do you have any other ideas for us?

Answer:  Thanks for asking…of course, correct pricing is the #1 thing you can do to increase the likelihood of a sale, but here’s another idea that I have been using recently with good results:  Write a love letter to you buyers!

According to Tara Nicolle with Inman news, recent reports suggest that the real estate market might be picking up in the nation.  While we do tend to lag behind the national market by 12-18 months and our prices are still declining slightly, we are seeing some good energy here in the mountains.  That said, sellers from coast to coast are still doing everything within their power to differentiate their home from the scads of other competitive listings.

As someone who has been inside probably thousands of homes with buyers over the years, I've always thought there was one super-simple, vastly underrated marketing technique for homes that are having a hard time standing out from the rest of the market: the seller love letter.

A seller love letter is a note, personally written or typed up by the home's seller. Among other things, it expresses the love the seller's family has had for the home, and explains the facts and events underlying that sentiment.

I've seen these be as short as a single page, and as long as a binder containing a 10-page letter and a collection of supporting pictures and other documents.

If the power of staging lies in depersonalizing the property so buyers can picture their own family living out their own lives in the home, the power of a seller love letter is that it leaves buyers with a warm feeling that the home has a positive energy and history, which is especially desirable on today's distressed property-riddled market.

Here are six things smart sellers should consider including in their love letters about their homes to their buyers:

1. Fond family memories. Now, there's no reason to get all "TMI" (too much information) about it, but the fact is that buyers do love to hear sweet, fond family memories about a property. I've watched with my own two eyes as buyers who liked a 100-year-old home fell desperately in love with it as they read about the seller's parents' building the home, and then raising a flourishing family there.

Even much newer homes can have their own endearing stories, whether they be about a hard-charging professional bachelor who is moving out of a loft to start a family; about retirees who raised their kids there and are now moving to downsize and be near their grandkids; or about a smart, single woman who was the first person in her family to own a home.

The goal here is to create warm fuzzies while you satisfy the buyer's craving to know why on earth anyone would want to move from such a lovely place. And if you can tell a happy story, you can kill another bird with a single stone – distinguishing your place from all the tragic stories and sadness surrounding the short sales and foreclosures with which your home is competing.

2. Favorite neighborhood vendors and local businesses. One reason people dread moving so much is that it forces them to find new vendors for everything, especially for the practicalities and minutiae that can derail our schedules and lives if they don't run well. If you have neighborhood businesses you love, making a list of them and including them with your love letter is very much appreciated by buyers.

Take care to include things like: dry cleaners, house cleaners, landscapers, carpet cleaners, produce markets and butchers, and especially restaurants that have great take-out and delivery services.

You get extra points if you know the proprietor and authorize the buyer to drop your name, or you include menus with your list of restaurants that deliver to the property address.

3. Lifestyle amenities that map to local buyer wish lists. Give some thought to the sorts of things people looking to buy a home like yours might be looking for, from a lifestyle perspective, and include notes about any of those amenities in the neighborhood that you and your family or housemates have especially enjoyed. Things like favorite ski runs, playgrounds, running trails, yoga studios, libraries and bookstores, sailing and outdoor recreational opportunities make great fodder for this list.

4. History of upgrades. Of course, your state-required disclosure forms will include a pithy section for relating the repairs and upgrades you've done in the time you owned the property, but you can take that to a new level in your seller love letter with a free-form description of the work, color commentary (if it makes sense) around why and how you had it done, and a little appendix that includes any relevant plans, permits warranties, receipts, service contracts and the like.

(Obviously, you don't want to include the originals of these items if this love letter document will be left out in the property during showings.)

If there are any issues or repairs that are likely to come up in the buyer's inspection reports that you want to explain in more detail, the love letter can give you your chance to do just that.

5. Property details and tricks. If you have a detailed landscape plan that identifies all the plants and trees in your yards, tricks for how to work the heating and cooling timer or the tricky downstairs doors, details on when the neighborhood trash pickup happens, or info about your alarm, termite or other service contracts, prospective buyers will feel well taken care of if you compile and include all this information with your love letter and let them see it before they even make an offer.

6. Neighbors. If you have particularly close and friendly relationships with any specific neighbors, or there are block parties, online or email groups, homeowners association (HOA) or neighborhood watch meetings or other favorites, ones with kids, block party, watch meetings, other things being planned/organized, let the buyers know.

You see, a good seller love letter is equal parts lovey-dovey and logistical, but the care that goes into preparing it and the love that is evident in its content can be a significant selling point to buyers weary of dealing with bank sellers or stressful short-sale situations.

Whatever you do, if you decide to write a seller love letter for your home, review your plans and thoughts about what to include with your real estate Broker first. You want to make sure not to run afoul of any equal opportunity housing laws or disclosure laws.

As well, waxing rhapsodic about all the weekends you invested in the terrible mural on the wall might be more concerning than compelling to buyers who think they could live in your home easily -- assuming they paint over the mural on day one as the new owners.

Let the buyers know why you love the place and they might fall in love with it, too!

For answers to your real estate questions, call Allison at 970-468-6800. Email - Info@SummitRealEstate.com. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com  

Don't put your agent TOTALLY in charge

Question: Allison , we’ve never bought a home before and we are working with a Broker to buy something in Frisco, CO this summer.  She is very helpful, but we are a bit confused about what she should do and what our responsibilities are.  Suggestions? 

Answer: Good question!  We are seeing some good movement in our market right now, so your timing could be perfect!  Buying or selling a home can be rewarding, although often stressful. To ease the pain, assemble a group of professionals to help you get the job done.

A good real estate agent can make the project a lot easier. Be sure to make your agent selection carefully. If you don't already have an agent with whom you've had a good prior experience, ask acquaintances who live in the area where you're buying or selling to recommend a well-respected, local agent.

Rapport is a very important component of the agent selection process. Your agent will act on your behalf with prospective buyers, other agents, contractors and inspectors, to name a few. Pick an agent you trust, respect and who has good communication skills.

Your agent can help coordinate the many details that need to be managed before and during the sale transaction. However, never forget who's in charge. Your agent works for you.

You rely on your agent's recommendations, intuition and skill based on years of experience working in your marketplace. But your agent is not the decision-maker -- you are.

Most buyers and sellers are busy. You usually don't decide to make a move when you're sitting around with nothing else to do. Buyers' dream homes often come on the market at the least convenient time.

As much as you'd like to turn the decision-making over to your agent, you need to stay current on what is happening during your transaction. Some agents withhold information from their clients because they know they're busy and they don't want to bother them.

This can lead to problems if you find out too late that you can't fix a problem that you could have if you'd only known earlier. Make sure your agent knows that you want to be kept informed throughout the transaction.

The same goes for your dealings with the rest of your team. For example, if you're having your home staged, it's best to meet with the stager and your real estate agent to look at the home and discuss the staging strategy. It's fine to leave this step to the stager and your agent if you really don't have time.

When you see your home staged, be aware that it won't look like you live there. That's the point. You want buyers to feel that they can make your home their own.

However, if you don't like something about the finished job, make your feelings known. A good stager will make changes in furnishings or remove accessories if asked to do so. Check with your agent first to make sure you're on target. Emotions can get in the way.

Today, working with lenders can be one of the most difficult parts of the home purchase transaction. Buyers don't feel they're in charge. Harassment might better characterize the loan approval process. Mandatory forms are ambiguous. Lenders ask for an ever-increasing amount of documentation. If you don't provide it in a timely fashion, your loan may be denied.

However, you choose the lender or mortgage broker you want to work with. You are the decision-maker when it comes to what kind of mortgage you want: fixed-rate, adjustable-rate (ARM), or a fixed/ARM hybrid.

Your loan professional should provide you with all the information you need to compare the various mortgage options available, but you decide which one is best for you. You also decide how much to borrow, even if it is less than what you can qualify to borrow.

Select expert local inspectors and take the time to read the reports. Sometimes there are mistakes in the reports. If so, contact the inspector and have the report corrected.

If you can't stay involved, make sure you hire an agent who will keep you up to date and who won't make decisions for you. Copyright Inman News.

For answers to your real estate questions, call Allison at 970-468-6800. Email - Info@SummitRealEstate.com. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com