Answer:  I’m getting this one a lot lately.  While there are some great deals out there now, as it turns out, sometimes the obstacles you have to overcome for the bargain negate the value of the deal -- and then some.

According to Tara Nicole Nelson, today's low prices and interest rates, combined, seem like the perfect storm for finding a great deal.

But some buyers run into -- or even unwittingly create -- circumstances in an effort to cash in on the bargain that deactivate or diminish the full value they otherwise stand to gain from buying at the bottom of the market, for both home prices and interest rates.

Here are three ways homebuyers are defeating their own deals in today's market:

1. House hunting too long. As many as 60 percent of the homes for sale in some markets are short sales. Many other listings are bank-owned (also known as real estate owned or REO) properties, and those homes tend toward two extremes: terrible condition, or so nice at such a low price they receive multiple offers.

Even the nicer, non-distressed homes on the market can end up in and out of contract over and over again due to appraisal or other lending-related issues.

As a result, it is not at all bizarre to hear homebuyers today say they've been house hunting for a year, 18 months, even two or three years. When you house hunt that long, you become susceptible to house hunt fatigue, which causes irrationally extreme overbidding out of sheer exhaustion.

Alternatively, it can cause you to settle for whatever house you can get, even if it doesn't actually meet your needs -- then spend the next 10 years obsessively spending to upgrade, improve, repair and furnish the place to try to make it more like the home you actually wanted.

Both of these outcomes negate and deactivate the bargain you stood to score.

To avoid house hunting too long, it's uber-important to get and stay clear on the differences between what you want and what you need, and to work with a local real estate professional you trust.

Look to your agent to get and keep your expectations centered in reality, so you can make more strategic decisions throughout your entire house hunt, like house hunting in a price range where you're likely to both find homes that will work for your life and be successful in your efforts to obtain one.

2. Making lowball offers way too low. Overbidding seems like an obvious way to cancel out the bargain potential of your deal. But making excessively low offers -- offers sellers couldn't afford to take if they wanted to -- can have the very same result.

Buyers who think they can operate strictly on the basis of buyer's market dynamics -- without realizing that most sellers will need to make enough to pay off their mortgage or at least receive the fair market value for their home -- are cutting off their own noses to spite their faces, all in the name of trying to score an amazing deal.

Note to "low-ballers": If you don't actually secure the home, the super-low price you offered is no deal at all.

3. Freak-outs, stress, drama and mayhem. Once was, it was mostly the buyers uneducated about the home-buying process who tended to freak out and stress the most, especially at the top of the market. These were the folks who found themselves defeated at every turn by buyers who knew what they were up against and were prepared to make their best offer on their first offer.

Fast forward, and now the norm is for buyers to spend much more time reading up on what to expect, but the inundation of information can create brand new mindset management challenges.

Almost every buyer is stressed about whether they can qualify for a loan, and about buying into a down market. Some buyers try to apply national headlines about home prices being depressed to the super-local dynamics of their neighborhood market.

This is unwise if you happen to be, for example, trying to buy a home in the boomtown real estate markets of Silicon Valley. Others go the opposite direction and deny that the basic truths about, say, buying a short-sale listing will actually apply to them (attention homebuyers: buying a short sale usually takes a long, long time).

The emotional freak-outs that result from having your expectations shattered, sometimes brutally, in the course of buying a home often lead to panic-based and fear-based decisions, which can be costly in the short and long term. Additionally, the stress itself can take a toll on your ability to be productive at work, and can even impair your relationship with your mate, neither of which are worth any deal you think you stand to strike.

Again, managing your expectations by working with a trusted broker or agent you feel comfortable relying on to understand the market in your neck of the woods and the type of transaction you want to pull off is essential to downgrading the role emotion plays in your real estate decision-making.

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 are planning to purchase a new home in Silverthorne, CO this month.  We have seen several we like, and wonder if you have any negotiation suggestions for us.

Answer:  Lots of information in the real estate world right now and the state of the market – most of it related to price.  In my experience, price, while certainly a major factor, is not the only thing that matters in real estate sales.

According to Dianne Hymer with Inman News, negotiation strategies differ depending on how well the home is priced and who's on the other side. If you're trying to buy a short-sale listing where the lender has to agree to accept less than the amount owed, the seller doesn't have much say in the negotiations about price unless he can contribute money to pay down the loan amount.

Regardless of who you're dealing with, you're more likely to grab a seller's or lender's attention if you are preapproved for the mortgage you'll need and can provide verification of cash for the down payment and closing costs.

Many buyers feel that cash is king. If buyers are willing and able to pay all cash with no mortgage, no hassling with the lender and no appraisal contingency, they feel they're owed a price concession.

Not all sellers agree. Some, who are confident in the value of their home, would rather work with an offer from a well-qualified buyer who needs to obtain a mortgage but who will pay a higher price.

Before you start negotiating, you should understand as much as you can about the other party. For instance, if the sellers are moving to a retirement home, they might go for the highest-priced offer in a multiple-offer situation, even though it might not be ideal in other regards. If they are liquidating their last asset, every penny will count.

An all-cash or large-cash-down buyer might not be able to negotiate a "deal" based on the fact that no lender will be involved. But if the home is a good value and suits your long-term needs, you might increase your offer price and include a mortgage. This way, you conserve cash for other uses.

Many buyers don't want to negotiate. They want their first offer to be their best offer. Usually, the only time this is effective is if yours is the only offer, the house is priced right for the market, and you offer full price. In this market, you're better off planning for some negotiation, and not putting all your cards on the table at once.

In most areas, the home-sale market still favors buyers. A lot of sellers are selling for less than they paid. Some have to bring money to the closing. Sellers who have owned for years are selling for less than they would have years ago. It's natural that they would want to try for the highest price possible.

Negotiations are about more than price. Generally, the fewer the contingencies or the cleaner the contract, the more attractive it will be to the seller. Closing and possession dates can become issues at the bargaining table. What's included and excluded, time periods to satisfy contingencies, and virtually everything in the contract is negotiable.

Since everything is up for grabs, be clear about what's not negotiable -- for instance, you can't go over a certain price. Show flexibility in areas that will hopefully be valuable to the sellers, such as buying "as is" regarding some needed repairs.

Don't waste your time with sellers who are firm at a price that is considerably over market value. Wait until they become realistic while you continue looking. Some sellers eventually get tired of having their home listed and reduce the price to market value. Others don't.

Sellers need to understand that buyers in today's market will walk away from a negotiation if they feel they're not getting anywhere or are being treated unfairly. Buyers could become suspicious or disappear if they're told by the sellers or their agent that other buyers are lining up to make an offer when they aren't.

Good luck!   A smart strategy is often to defend your position while being honest and fair with the other party.

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 are knee-deep in the sales process of our Wildernest duplex.  We live in the property most of the year and we have a lot of stuff.  What tips do you have for us to really make our place shine?

Answer:  Thanks for asking.  I get this type of question a lot and it is so important!  According to Diane Hymer of Inman News, today's buyers are looking for turnkey homes. That is, they want to move right in without having to do a lot of work. Buyers with busy lifestyles pay a premium for listings that are in prime condition. Staging can make the difference between a listing selling or not, the time it takes to sell, and the ultimate sale price.

Sellers who are financially strapped often have a hard time accepting that they'll need to invest in preparing a house for sale even though they may sell for less than they paid. Fix-up costs can mount up; your agent can help you prioritize so that you don't waste money. It's important to keep your goal in mind, which is to sell your house in a difficult market.

Recently, a home in Piedmont, Calif., an affluent city neighboring Oakland, came on the market in "as is" condition. It had been lived in for decades without much upgrading. Although located in a desirable area, the listing was vacant, dark and showed poorly. The sellers refused to do any work to improve its appeal.

After months on the market with no significant interest, the sellers pulled the house off the market and made improvements. The wall-to-wall carpet was pulled up to reveal hardwood floors that were then refinished. Painters lightened the interior and a professional stager was hired to bring in furniture, artwork, house plants and accessories. The listing was put back on the market with a fresh look and sold right away.

Although listings staged by a good decorator show well and often sell quickly, you don't need to spend a lot to put your home into shape for marketing. Most homeowners have too many personal possessions in their home from a sale standpoint. Decluttering is something most sellers need to do.

This can generate uncomfortable emotional responses. One seller, who was cleaning out the family home of 50 years, found a packet of love letters his father sent to his mother. Of course, he had to read all of them, which delayed his fix-up schedule.

Consider hiring someone to help you sort, pack, donate and recycle items that you no longer want. You may be able to take a tax deduction for things you donate. Make sure to get a receipt. Your real estate agent should be able to recommend someone who can help you clear your house of clutter if you are overwhelmed by the project.

Your Broker, or stager, may ask you to put away collections of art, personal photos, etc. This can be difficult for most sellers because, for them, it's part of the emotional appeal of their home. Your house won't look like your home after you've removed personal possessions and moved what's left around to display the house to its best advantage.

That's the point of the preparation process. You don't want prospective buyers focusing in on your personal property; you want them to focus on the house. Keep in mind that how you live in your home and how it should look when it goes on the market are not the same.

Some sellers complain that their house looks too stark without all their possessions. Even so, it helps you to detach yourself emotionally from the property. Also, less personal property usually gives homes a more spacious feel. When buyers are looking for the most for their money, bigger is usually better.

To close the deal, a listing should be spotless and inviting. Bring in new house plants to put in strategic locations, like orchids in the bathrooms. In dark spots that need a dash of warmth and color, use bromeliads.

If you can't pull this together yourself, or with the help or your Broker, hire a good stager for a consultation or a proposal for full or partial staging.  We have a few great names of excellent staging folks who can help you.  Just give us a call!

Happy Holidays!  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, our condo in Keystone, CO is currently listed for sale.  We’d like to increase our showings – what suggestions do you have?

Answer:  I’m glad you asked!  It’s not unusual that your showings have slowed down during the late fall.  Just remember that the ski season is heating up and the week after Christmas brings record numbers of people to Summit County and showings will go up.  You can be ready for them!  According to Dianne Hymer with Inman News, some buyers are looking for a home that's located in a specific neighborhood. Others have more flexibility regarding where they live. But most buyers share one thing in common: They want a home that's in move-in condition.

Start working on attracting buyers to your home by putting the property in good condition before it goes on the market. In most cases, it's not a good idea to show your home to a prospective buyer before it's ready to be shown. Photos should also wait until your home presents itself well.

Pay attention to "curb appeal"; first impressions are lasting. Some buyers drive by without taking a look inside if they don't like the way a house looks from the street. The yard should be clean and tidy. Replace the front lawn if it's dead; the same goes for plants that have seen better days. Flowering plants make your home look festive and inviting.

Peeling paint should be touched up, if possible. If an entire exterior paint job is called for, consider changing the color scheme to enhance the appeal. One seller repainted the exterior of his home before selling without consulting his agent or a colorist. He repainted using the existing color scheme, which was out of date. The house didn't sell quickly. When it did, the first thing the buyers wanted to do was change the color of the exterior.

Repair deferred maintenance, particularly if it's visible from the street. You want to convey the impression that your home has been well maintained. If you can't afford to repair and paint the white picket fence in front of your house, it would be better to remove it than leave it.

Houses that don't have much architectural appeal can often be improved by the addition of shutters. Houses that don't show much from the street can be enhanced with an architecturally intriguing gate or entryway. You want to peak buyers' interest in seeing what they can't see from the street.

Please enjoy our Winter edition of Summit Real Estate News & Views....

We value your opinions and comments.  Let us know what you think!  Have a safe and happy Winter!

Make your expectations known and stay involved in the process.

Question:  Allison, We are in the process of listing our ski-in ski-out condo at Keystone, CO.  We live in Minnesota and are hoping we can get one of our friends who lives in Summit Cove to help us with the sales process.  What should we look out for?

Answer: The chores of listing and selling a home should not be taken lightly, nor handed off -- especially in this market.

Typically, when you contract a real estate broker to help sell your home, you are promising to pay for services rendered if the broker finds a person ready, willing and able to buy your home.

According to Tom Kelly, Inman News, the first thing to remember is that nobody can read your mind. Make sure your agent knows your concerns and keep all communication lines open.

In two recent cases he spoke about, expectations were not expressed, mainly because the sellers -- an executive at a financial services company and a retired couple -- were constantly on the road.

The couple chose to continue touring the country in their RV and asked one of their children to be the point person with the real estate agent for their waterfront getaway. The executive, in a similar fashion, turned over tasks related to selling her downtown condo to her office secretary.

Both sellers returned home and were unhappy with the way their homes were being marketed. The couple felt that ads describing their home were poorly written, for-sale signs were not properly placed and that the agent was not doing enough to get other agents to preview the home.

The executive expected her downtown condo to be better exposed to the in-city business community. She said she felt there were more aggressive, creative agents in the industry than the one she hired.

What both parties did not do was work directly with the agent, leaving assumed requirements and expectations to fall between the cracks. Frustrated and upset, each seller wanted out.

Could they rescind the listing agreement without the broker's consent? When a seller elects to cancel, is the broker entitled to a commission?

• The seller can usually cancel the listing agreement at any time, whether or not the seller has legal grounds to do so. A listing agreement typically creates what is known as an "agency agreement" with the broker, and it can be canceled by the principal (seller). It's always best to cancel in writing.
• If the seller cancels the agreement without having legal grounds, the broker could be entitled to payment. Legal grounds for cancellation include broker malpractice, violation of the broker/agent fiduciary duty, or breach of contract by the broker. If the broker is not at fault, the broker could be entitled to "damages" even if the house does not sell during the unexpired term of the listing.

Damages could mean advertising costs and other out-of-pocket expenses in servicing the listing. If the house sells during the unexpired term of the cancelled listing, the law presumes that the terminated broker would have made the sale, thus entitling the broker to a commission. However, if the seller can prove the broker would not have made the sale, the seller can avoid payment of the commission.

Most of the time, a seller can cancel a listing with one agency and move it to another broker in the same multiple listing service (MLS) and be liable for only one commission.

For example, if you cancel your listing with Billy's Real Estate and move it to Nancy's Real Estate, and both are members of the same MLS, you usually are relieved of your obligations to Billy by paying Nancy a commission when the house is sold.

When you sign a listing agreement, you are actually agreeing to work with the agency and its boss, or broker. Many agents also hold the "broker" designation, which means they have undertaken additional classroom instruction and testing.

Be realistic when you sign a listing. Discuss all services, explain your expectations and don't expect miracles. Interview a few agents even though you might already be dead-set on one to represent you. Check references and then choose the one you think will do the best job.

And plan on staying involved after the initial agent interview. Your secretary may be worth a million bucks inside the office, but you should be the point person on all sales matters regarding your home. 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  

As we near the end of the year, it is good to look back at the months behind us and evaluate what they have brought us so that we can gather the assets we have gained and move into the new year!

For those of you who LOVE the numbers, here's a link to the overall stats of Summit County real estate.  As usual, at Summit Real Estate, we look to the actual numbers to evaluate what's happening in the market, not just the gossip and cocktail conversation! 

Summit County by the numbers 2011!

Enjoy your week! 

Question: Allison, We’re contemplating putting our Frisco home on the market and we’re wondering if there is anyone out there buying property right now?

Answer: Good question.  I hear this question a lot and can provide your with some specific information about your particular segment of the market, but in general, according to Dianne Hymer, Inman news, we are getting close to the end of the year, which begs the question of whether it's worthwhile trying to sell your home now. Is it a waste of time? Will it sit on the market and become shopworn? Should I take my house off the market for the holidays? Will the home-sale market be better for sellers in 2012?

The first question you need to ask yourself is: Are you emotionally prepared to sell? Selling is a challenge for most sellers, although some markets are better than others. Unless you bought more than eight to 10 years ago and preserved your equity, you may not be able to sell for enough to pay off the mortgages secured against the property and the other costs of selling.

Sellers who have the resources to make up the difference between the sale price and the amount they owe need to ask themselves if they are willing to pay the additional cash in order to sell and move on.

There are two reasons why you might prefer bringing cash to closing. One is that your credit will not be negatively impacted, as would be the case with a short sale or foreclosure. The second is that many buyers shy away from short sales because of the lengthy and uncertain process involved.

The next thing to consider is the condition of your home. Is it ready for the market? The most salable homes are those that are in move-in condition.

Before racing to the hardware store, ask your Realtor about how much competition there would be for your home if you put it on the market before the holidays. Some areas are shy on inventory of good homes on the market. If so, now could be a good time to sell.

The supply/demand ratio plays a significant role in the health of a local real estate market. No matter what is said about the housing market nationally, it's the local picture that tells the tale in terms of the possibility of selling your home at any given time.

Most sellers don't put their homes on the market during the last or first couple of months of the year. The inventory of homes for sale tends to dwindle during the winter months. Interest rates are low. So, if there are buyers in your local market, you may be at an advantage selling when most sellers are waiting.

Some sellers feel that if they've waited this long to sell, they should put the process on hold until spring and get the house ready in the meantime. Certainly, it's not a good idea to put your house on the market until it looks great. But if you and your house are ready to sell, move ahead.

The market in general tends to slow down over the holidays. But rather than pull your house off the market and miss a likely prospect, change the showing procedure to require advance notice. And enjoy your holidays. A sale before year end could be a great holiday gift.

There is a lot of pent-up demand, on both the buyer and seller sides. Sellers have been waiting for a better time to sell. Buyers have been waiting for more quality inventory and a sense that prices have bottomed or are close to it.

In closing, recent projections call for another five or so years of bouncing along close to the bottom of this market cycle. Many experts believe that the big price declines are behind us.  I sure hope they are right!  Remember that Summit County tends to lag behind the national economy by anywhere from 18-24 months.  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  

Adding to the ease of livability, whether Summit County and it’s mountains are your primary residence or you’re looking for a vacation home, is all of the additional space to store your “toys”.  Ingenious bike storage in the unit is easy to use and out of the way!  An exterior storage closet nearby has tons of room for all of your summer and winter gear and whatever else you need to pack away from time to time.  A washer and dryer in the unit is so convenient and what a time saver! 

This property has 2 bedrooms, 1.5 bathrooms, 877 square feet and is listed for sale at $230,000.00.  Low HOA dues of $218/month include common area maintenance, common building taxes, building insurance, management, security, trash pickup and snow removal.  2011 property taxes were just over $900 for the year.  Don’t wait, give your broker or Summit Real Estate a call to see this bright and updated end unit today! 

Looking to Buy? Not ready to speak to a broker? Visit www.SummitHomeBuyer.com                

Meet Lynn Sustad, Kelie Gray and Anna Willis, the Buyer Specialist Team at Summit Real Estate-The Simson / Nenninger Team.  Devoted to working only with Buyers, these Specialists tour hundreds of homes and commit to having the most comprehensive knowledge in the market. A member of the Buyer Specialist Team can be reached at (800) 262.8442 or (970) 468.6800, www.SummitRealEstate.com or email us at Team@SummitRealEstate.com                                                                                                                      

Question:  Allison, we’re looking at trading up from our condo in Wildernest to a single family home in Silverthorne, CO, but we’ve heard that it’s impossible to get a loan.  Any suggestions?

Answer: Despite what you may have heard, the lending business  in Summit County is alive and well!  Is it as easy to get any type of loan under the sun like it was during the boom days? No.  Are there some great options out there?  Absolutely!  According to Diane Hymer at Inman News, interest rates fell to new lows in October. Low interest rates increase affordability and should make it easier for buyers to qualify. Yet stories of buyers waiting months to gain loan approval and home purchase transactions not closing on time due to lender's strict underwriting are all too common.

Some buyers are turned down for illogical reasons. For instance, if you have investments -- even if they're performing well -- an underwriter might deny the mortgage because your portfolio doesn't fall into the underwriter's risk assessment model.

One couple was turned down because the husband had worked at his current job for less than a year -- even though he was making more money at the new job than he was before.

These buyers were well-qualified. The wife had worked several years for one employer and was able to qualify for the loan on her own. So, the transaction closed, although two months late.

Generally, it's more difficult to qualify now than it was a year ago- but don’t be discouraged! Most conventional lenders require a 20-25 percent down payment. For the lowest interest rates, your credit scores need to be in the 700 range. You need to have verifiable income and cash reserves in addition to your down payment and closing costs.

You could run into underwriting problems if you're self-employed, as W-2 income is much easier to verify. Other hurdles are lapses in employment and owning a lot of property. Some lenders won't lend to buyers who have more than three or four residential properties.

If you're buying a new home before selling your current home, you'll need to have 30 percent equity in your current home. This needs to be verified by the lender's appraiser. Also, the lender will want to see a copy of the cashed check from the tenant for the first month's rent to verify rental income if needed to qualify.

HOUSE HUNTING TIP: As soon as you're serious about buying a home, find the best mortgage broker or loan agent you can to assist you. Don't make your selection based on interest rates alone. A good track record counts for a lot.  A local lender familiar with doing loans in Summit County is your best bet.

Closing the deal should be your primary goal. If you have to pay 0.25 percent more to assure your transaction closes on time and that you're not turned down at the last minute, it's worth it.

Be candid with your loan professional about anything in your financial picture that might impact loan qualification. A good loan agent or broker will be able to assess your financial situation and anticipate what you'll need to do to satisfy the underwriter.

Be aware that appraisal issues can impact your loan approval. For example, if a previous owner added square footage without a building permit, the additional square footage probably won't be included as livable square feet.

If the appraisal comes in for less than the purchase price, the lender might not lend you enough to close the deal. Include an appraisal contingency in your contract.

As of Oct. 1, the conforming jumbo mortgage limit for expensive housing markets like New York City and San Francisco dropped from $729,750 to $625,500. In some cases, conforming jumbo lenders have moved into the market to pick up some slack. You can expect to pay about 0.25 percent more for a 30-year fixed-rate conventional jumbo loan, in some cases. However, today's lower interest rates will help boost affordability.

There are more jumbo financing options available now. Adjustable-rate mortgages that are fixed for 10 years and then revert to an adjustable have a starting rate about 0.25 percent less than a 30-year fixed jumbo. A five-year fixed starts about 0.5 percent to 0.75 percent lower, but is riskier.

We have some of the finest mortgage brokers and lenders around right here in Summit County.  If you’d like a list of our preferred lenders,  just ask.

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  

How’s the local real estate market performing?  There are many ways to gauge market performance and, as always, we like to take an objective approach.  The numbers do the talking.  The cocktail party circuit is great for catching up on the real estate “gossip”, but we’ve found our clients appreciate more substantive information and advice. 

It is our pleasure to keep you informed on Summit County’s Real Estate Market.

Click the hyperlink below, give us your name and property address (if you already own property in Summit County) and you will automatically be directed to the sales reports for Summit County.

Summit Real Estate Quarterly Report

 Please let us know if you would like more specific information about any particular property or complex.  We’ll help you navigate the numbers! 

Answer:  I think it’s a fantastic idea!  Prices are low and while rents haven’t skyrocketed, they are staying up and we’ll see more renters in Summit County.  According to Brian Davis and Inman News, home prices and sales may be flat, but the rental industry is booming. The percentage of renters is on the rise, the number of households is increasing, and more Americans are downsizing, all of which point in a single direction: rents are on the rise.

At the peak of the housing boom, homeownership in America reached an all-time high at 69.2 percent. Today that number has dropped to fewer than 67 percent, which may not sound like a huge drop, but that represents roughly 3 million households that were owner-occupied and are now tenant-occupied.

The high foreclosure rate has accelerated the transition toward leasing, but there are a myriad of other trends coalescing to boost demand for rental housing.

For the first time in 40 years, demand has been shifting toward smaller dwellings, coinciding with a shift in demand toward urban centers. Baby boomers are considering downsizing, moving toward areas with more amenities, and members of Generation Y are just hitting their single, urban-living years.

Only the relatively small Generation X is in the buy-a-large-house-in-suburbs category, which means the demand for the traditional single-family home with a white picket fence is weak.

The number of households in the U.S. was artificially stifled during the "Great Recession," as people took on roommates, moved in with family, or remained with their parents longer than they would have otherwise.

Rental vacancy rates are sharply on the decline as well. In the first quarter of 2011, rental vacancy rates had dropped to 6.2 percent, according to Reis Inc., which tracks nationwide residency data. This figure is down sharply from the 8 percent vacancy rate just one year earlier.

Each of these indicators are entire topics in themselves, but the bottom line is that the rental industry is on the rise, and some real estate experts believe that its growth will accelerate rapidly over the next three to five years.

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  

Here's the scoop on Keystone (that's yours truly - Allison - with my daughter Mackenna- skiing in the ad!)  Click here!

Pre-Ski Season Ski exercises.....  :>)

1. Visit your local butcher and pay $30 to sit in the walk-in freeze for a half an hour. Afterwards, burn two $50 dollar bills to warm up.
2. Soak your gloves and store them in the freezer after every use.
3. Fasten a small, wide rubber band around the top half of your head before you go to bed each night.
4. If you wear glasses, begin wearing them with glue smeared on the lenses.
5. Throw away a hundred-dollar bill now.
6. Find the nearest ice rink and walk across the ice 20 times in your ski boots carrying two pairs of skis, accessory bag and poles. Pretend you are looking for your car. Sporadically drop things.
7. Place a small but angular pebble in your shoes, line them with crushed ice, and then tighten a C-clamp around your toes.
8. Buy a new pair of gloves and immediately throw one away.
9. Secure one of your ankles to a bedpost and ask a friend to run into you at high speed.
10. Go to McDonald’s and insist on paying $13.50 for a hamburger. Be sure you are in the longest line.
11. Clip a lift ticket to the zipper of your jacket and ride a motorcycle fast enough to make the ticket lacerate your face.
12. Drive slowly for five hours- anywhere- as long as it’s in a snowstorm and you’re following an 18-wheeler.
13. Fill a blender with ice, hit the pulse button and let the spray blast your face. Leave the ice on your face until it melts. Let it drip into your clothes.
14. Dress up in as many clothes as you can and then proceed to take them off because you have to go to the bathroom.
15. Slam your thumb in a car door. Don’t go see a doctor.
16. Repeat all of the above every Saturday and Sunday until it’s time for the real thing.

See you on the slopes!

There was some good news from The Summit Daily News on the real estate front last week that I wanted to share with you:  Real Estate sales up in Summit County 

But, most of all, a HUGE THANK YOU to everyone of you who voted us top two Real Estate Companies in The Best of the Summit!  For all the special places in Summit County to help you live like a local, check out the BEST OF THE SUMMIT 2011!

And, thank you, thank you again for voting Allison Simson - Summit Real Estate. It is such an honor!  We feel so blessed and lucky to have so many wonderful customers and friends who made this happen again this year! 

And Here's Your Morning Coffee!

Answer:  Glad you asked!  I always say that it is a price war and a beauty contest, and you have to win both to sell in today’s market!  Remember just a few years ago if you wanted a cupcake you could get vanilla or chocolate and maybe just a few other flavors in between. Now all you see are elaborately flavored and decorated cupcakes. Today, it’s almost that way with buyers. Instead of a reasonably priced and relatively plain home in a nice area, many buyers have eaten one too many fancy cupcakes and want it all. Homes with sprinkles or a sparkler or two are the ones that sell.

The buyers we are talking about are young families and adults between the ages of 31 to 55. These buyers are in full course with their careers and are busy with their growing families and don’t have the time or money to update a house. Watchers of HGTV, they also have strong opinions about design features their new home will include. Take a look at some of these items and ask yourself how your home stacks up if you decide to sell.

1. Buyers want a deal! We are in a very price sensitive market and buyers want to know that they are getting the most value for their money. Saying that, Buyers are willing to pay more for homes that are in model home condition but either won’t buy or will discount significantly a home that needs work.

2. Kitchens and Baths Sell Homes!  We know many Sellers do not like granite counters and stainless steel appliances but at this moment Buyers do! Bathrooms with dated tile should be updated and older vanities, sinks, medicine cabinets, hardware and light fixtures should be replaced.

3. Paint is an Easy Crowd Pleaser! Buyers want a house with a neutral palette to help them imagine their own decorating plans. Plain white, however, is mostly out and “Pottery Barn” colors are in. Wallpaper no matter how expensive and dear to a Seller must go as well as dated carpet. And, if you have carpet over hardwood floors, show the hardwoods. They are in and most desirable.

4. Let there be Light! Your brass or crystal Dining Room light fixture is no longer fashionable. Brush nickel and antique bronze are in. And, the overhead light fixtures that you have in your bedrooms and halls for the last 20 years must go. Good news, however, they are relatively cheap to replace.

5. Energy Efficiency! While most buyers won’t pay substantially more for  green” and “energy efficient” improvements, they do want to know what it will cost to heat and cool the house and they do question whether windows, doors, the furnace, air conditioner, and hot water heater have been replaced.

6. It’s Clean Up Time!  Buyers want a clean house. Not just a house where the beds are made and toys are put away but a house with clean windows, baseboards, siding, and refrigerators. Clean carpets, bathrooms, kitchens and flooring are essential as well. 

7. Smelly Houses Don’t Sell!  Any pet odors need to be eliminated, cooking food with strong odors (unless it’s bread or cookies) needs to be avoided, and if you are a smoker, your home will need to be de-odorized and you need to smoke outside-no kidding! If you do plan to sell, do not light any scented candles or install plug-ins. Today many Buyers and their families are allergic and will run out of a house no matter what the smell.

8. Oh Give Me Land!  Buyers want a home with a connection between indoor and outdoor spaces. So even if your lot is relatively small, landscape it, deck it, fence it or do whatever is necessary to create a perception of another wonderful living area, even if that area is used only part of the year.

9. Size Matters! Buyers want more storage space as well as flexibility in the garage. If you have a storage room or area, make it look big by straightening it up and getting rid of anything that you haven’t touched in years or that you don’t plan to take with you. If you have a garage, clear it out so that cars can easily fit in. And if you have a carport, the only thing visible should be your car.

10.  Beauty Counts! Today’s buyers start their search on the Internet and if they are not impressed by the pictures they see, they are not coming in.  You simply don’t get a 2^nd chance to make a 1^st impression.

 To help you make your first impression GREAT, call me and we will send you our staging guide. 
 

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  

This past week the USA Pro Cycling Challenge road through Summit County in stage 5.  128 professional bikers made their way from Steamboat to Breckenridge.  Levi Liephimer (the overall winner) zoomed past about 2 feet away from me!  Very exciting!  It was like our own "mini" Tour de France!

Here's an article on rental property and taxes from last week's Summit Daily News that you might find interesting - click here.

Our real estate market continues to move along, we've had more sales this year over last year, and although the prices are still declining, it does seem like they are declining at a slower rate than last year.  For specifics about your favorite town please check the market reports here:

1) Dillon

2) Wildernest/Silverthorne

3) Frisco

4) Breckenridge

5) Keystone

6) Summit County Overall

And Here's Your Morning Coffee!

Answer:  Good question! I’m FAR from being a tax expert, but from time to time the IRS releases tips designed to help people with their taxes. Some of these are quite useful.

According to Stephen Fishman, Inman News, last week the agency released "Ten Tax Tips for Individuals Selling Their Home," (IRS Summertime Tax Tip 2011-15).

Here are the IRS's top 10 tax tips for home sellers:

1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.


2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).


3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.


4. If you can exclude all of the gain, you do not need to report the sale on your tax return.


5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.


6. You cannot deduct a loss from the sale of your main home.


7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.


8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.


9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year's tax return.


10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.

Best to speak with your Accountant to keep on all the minor and major changes that can affect you! 

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 are considering buying a townhome in Wildernest, but have been unable to “pull the trigger!”  Do you have any suggestions about timing the market? 

Answer:  That’s the million dollar question!  First, you won’t know when the market has hit bottom until it starts to go up, so timing is difficult at best.  According to Dianne Hymer of  Inman News, in mid-June, interest rates on home loans were lower than they were a year ago. However, this failed to ignite the housing market. Many buyers and homeowners would like to make a move, but some find it impossible to make a decision. They are commonly referred to as fence-sitters, poised to make a move when the time seems right.

The housing market is unlikely to make a quick turn-around anytime soon, but this doesn't mean that now is not a good time to buy or sell. It depends on your personal situation and market conditions in the area where you plan to buy or sell.

Become an expert on your local market. Knowing a good deal when you see it or what price to ask if you decide to sell depends on having a good understanding of how much properties are selling for in your neighborhood.

While you're trying to decide what to do, line up a team that can help you accomplish your goal when you decide to move ahead. You can do this by researching online, attending open houses in the area and asking a real estate agent to keep you on top of market fluctuations.

Your decision to buy should be based on your personal financial situation, not on the national or global economy. For example, if you bought during the bubble market and are now getting divorced, you'll probably sell for less than you paid.

But, if the house is too expensive for one to support, it may be cheaper in the long run to cut your losses and sell now. No one knows how long the housing downturn will last. Prices could move lower before rebounding. This is not an ordinary recession.

Don't get caught up following the herd. Just because most people in your area aren't buying or are having difficulty selling doesn't mean that you shouldn't make a move. Just make sure if you're a buyer that you have job security, a relatively healthy economy in your local area and a plan to stay put for at least 10 years.

The housing market will be volatile going forward. Good economic news will help fence-sitters make the decision to get serious about moving. Bad news of any sort can cause the market to stall. To take advantage of the upticks in the market, you need to be prepared in advance.

Find a good local real estate agent to work with who understands your needs, and wait to buy or sell until the time is right for you. It could take you a year or so to make the final decision. Some agents don't have the patience to stick it out.

Select an agent who will educate you about the market and the idiosyncrasies of the home-sale business in your area. Ask to be kept informed about sales in the area. Many agents are set up to do this electronically, which is an easy way to keep you informed without taking up a lot of the agent's time.

One of the most difficult aspects of the current home-sale business is financing the transaction. Find a loan agent or mortgage broker who is a real professional, has been in the business for years and who understands what current underwriters will require from you to process your loan.

Assemble all the financial documents you'll need for loan approval even before you start looking. Ask your agent or broker to have your loan package previewed by an underwriter so that you know beforehand if there are any problems.

Remedy these in advance so that they don't cause last-minute delays in closing. 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  

For local market conditions click here!
 

And Here's Your Morning Coffee!

The key to service.

"I am because you are."
--African Proverb

I can think of no simpler way to sum up the nature of a true community than this African proverb. In five words, you have the guiding principle behind client service, neighborly attitude, and public service. When we forget this truth, we risk becoming isolated and self-obsessed.

Just 15 years ago, your business interactions would have likely involved a phone, fax machine, letter, or face-to-face meeting. Now, however, your options have exploded: You may text, blog, email, tweet, update your Facebook page, comment, and video conference.

You would think that with the rise of network technology that we would be constantly reminded of this proverb's truth. Yet with all the power this technology provides us in our careers and personal lives, it is more valuable than ever that we remember to remain human. We must make a concerted effort to remember that we are not communicating with machines when we use machines to further our relationships.

The smiling emoticon is no substitute for a real smile. ;>) It is a reminder that the technology we use falls short of providing the components of tone, emotion, and body language that human civilization has depended on for thousands of years.

As you integrate new communication technologies into your business, try and hold onto the idea that we are more than the sum of our messages and updates. Recognize how much exists beyond these transactional forms of communication. While much has been done to improve speed of service, quality of service remains a uniquely human challenge. ~ Scott Levitt

Hope your summer is going great and that you are enjoying it to the fullest!

And Here's Your Morning Coffee!