This one third acre lot is filled with mature pine and aspens, adding to your privacy and mountain home feel.  Bask in the sun and take in the wooded surroundings from the very large and south facing front deck.  Sit on the back deck and enjoy fantastic views of Buffalo and Red Mountains to the west.  The 1 car garage has plenty of room to store all of your winter and summer toys, with additional built in shelving.  You’re a hop, skip and a jump away from all of Summit County’s ski resorts and it’s a quick dash to I-70.  Such a great, central location! 

 At $500,000, this home is being sold fully furnished and is the most affordable log home in Summit County on the market today!  It is truly in move-in condition.  Don’t spend the money and time updating a different property, enjoy the beautiful remodel here without having to lift a finger.  Save your legwork for the mountains!  Take advantage of the first time homebuyer $8,000. tax credit or the move-up buyer $6,500. tax credit and get yourself into this charming log cabin.  Don’t wait until interest rates go up and inventory levels go down, give your broker or Summit Real Estate a call 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 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

"As lending practices continues to tighten, it has become exceedingly apparent how this affects our economy in Summit County.
 
Current Fannie Mae Guidelines indicate perfectly sound and warrantable condominium projects in Summit  County may be denied any financing possibilities simply because they are located in a "resort" area or because individual unit owners may rent their units on a nightly basis. Furthermore large banks are adding additional cumbersome barriers restricting financing  because many condominiums do not have individual meters for gas and electric services or because the word "lodge" is in the name.  These are examples of unreasonable and unfounded restrictions that are severely hindering buyers trying to purchase condos in our area.
 
If lenders had the ability to loan judiciously to a fireman or a teacher or other permanent residents who's main option for housing is a condominium, we would see more building, more jobs and a good beginning of economic recovery.  Second homeowners are also hurt by these restrictions and are finding it increasingly difficult to purchase property in Summit County. Healthy resort areas are one of the major heartbeats of Colorado.   
 
When people think of Colorado, they think of mountains and fishing and snow and skiing. Tourism is the second largest economic driver in Colorado.We also rely on tourists to buy  second homes in Summit County furthering jobs and promoting a healthy economy.
 
We need your help and strongly urge you to help reopen the financing doors from FNMA and FHLMC.
 
Thank you in advance for your consideration and help!"

Certainly, the lending practices had gotten far too lax, but to penalize strong, stable complexes with few to no foreclosures on their books seems irresponsible in the other direction!  

We do have a few great lenders who are able to finance condos in Summit County- up to 90%.  Please call if you'd like more info.

The home-sale market has taken a beating throughout the nation in the last few years, which begs the question: Does it makes sense financially to invest in home improvements? According to Diane Hymer of Inman News and Remodeling Magazine's annual Remodeling Cost vs. Value Report for 2009-10, published in agreement with the National Association of Realtors, indicates that remodeling still pays off, but more so on less expensive projects.
Most high-end remodeling projects don't return dollar for dollar on the investment even in a good market. That is, unless homes are appreciating at a fast clip. In this case, you might get your money back due to appreciation. But the profit on the sale might not be as much as it would have been if you hadn't done a high-end renovation.
Just as today's homebuyers are making pragmatic decisions, so are today's homeowners when it comes to making improvements.

These projects returned from 71 to 83 percent nationally depending on the materials used. The project that paid back the highest return was a midrange front-door replacement that cost approximately $1,200 and returned an average 128.9 percent nationally.
Sellers may wonder why it would make sense to invest in an improvement just for the sake of selling if it won't repay the amount invested. In today's challenging home-sale market, these improvements may be warranted for the home sell at all if there is a lot of inventory in your neighborhood. Buyers expect more for their money and gravitate to listings that are in the best condition for the price.
HOUSE HUNTING TIP: Be judicious about how you spend your money fixing your home up for sale. For example, if your kitchen is a disaster, it makes more sense to do a midrange than an upscale renovation. According to the Remodeling Cost vs. Value Report, a midrange minor kitchen upgrade will return an average of 78.3 percent nationally. A major upscale kitchen remodel will pay back only 63.2 percent
The Cost vs. Value Report recommends the following cost-effective improvements you might consider to prepare your home for the market: tidying up the kitchen cabinets using organizers will make your cabinets roomy; add an inexpensive tile backsplash to a tired kitchen, and use inexpensive tile to give an old bathroom a new look; add a breakfast bar by cutting an opening between the kitchen and family room; and install granite tile rather than slab.
Other suggestions include: replacing outdated light fixtures; freshening up the basement; giving the kitchen cabinets a new look by reconditioning and adding new knobs or having cabinet doors and drawers replaced; updating a bathroom without replacing tile by changing the medicine cabinet, light fixtures, vanity, cleaning the grout or replacing it and adding glass shower doors.
THE CLOSING: Before starting any fix-up-for-sale projects, seek your real estate agent's advice so that you don't waste money on improvements that won't pay back much in your area.

If you have specific questions about fixing up your place, please don't hesitate to call.  Or, if you'd like a copy of our special report "Staging Your Home", just let us know and we'll send it to you. We're here to help! 

Question:  Allison, we are considering selling our Keystone condo in a year or so and would like to do some updating and remodeling before then.  Is it a good idea to fix our place up and put money into it before selling in this market?

Answer: Yes. And no. The home-sale market has taken a beating throughout the nation in the last few years, which begs the question: Does it makes sense financially to invest in home improvements?

Remodeling Magazine's annual Remodeling Cost vs. Value Report for 2009-10, published in agreement with the National Association of Realtors, indicates that remodeling still pays off, but more so on less expensive projects.

Most high-end remodeling projects don't return dollar for dollar on the investment even in a good market. That is, unless homes are appreciating at a fast clip. In this case, you might get your money back due to appreciation. But the profit on the sale might not be as much as it would have been if you hadn't done a high-end renovation.

Just as today's homebuyers are making pragmatic decisions, so are today's homeowners when it comes to making improvements. Most of the remodeling projects with the largest return were for such things as replacing exterior siding and windows. On average the cost involved was less than $14,000, according to Remodeling Magazine.

These projects returned from 71 to 83 percent nationally depending on the materials used. The project that paid back the highest return was a midrange front-door replacement that cost approximately $1,200 and returned an average 128.9 percent nationally.

Sellers may wonder why it would make sense to invest in an improvement just for the sake of selling if it won't repay the amount invested. In today's challenging home-sale market, these improvements may be warranted for the home sell at all if there is a lot of inventory in your neighborhood. Buyers expect more for their money and gravitate to listings that are in the best condition for the price.

HOUSE HUNTING TIP: Be judicious about how you spend your money fixing your home up for sale. For example, if your kitchen is a disaster, it makes more sense to do a midrange than an upscale renovation. According to the Remodeling Cost vs. Value Report, a midrange minor kitchen upgrade will return an average of 78.3 percent nationally. A major upscale kitchen remodel will pay back only 63.2 percent

The Cost vs. Value Report recommends the following cost-effective improvements you might consider to prepare your home for the market: tidying up the kitchen cabinets using organizers will make your cabinets roomy; add an inexpensive tile backsplash to a tired kitchen, and use inexpensive tile to give an old bathroom a new look; add a breakfast bar by cutting an opening between the kitchen and family room; and install granite tile rather than slab.

Other suggestions include: replacing outdated light fixtures; freshening up the basement; giving the kitchen cabinets a new look by reconditioning and adding new knobs or having cabinet doors and drawers replaced; updating a bathroom without replacing tile by changing the medicine cabinet, light fixtures, vanity, cleaning the grout or replacing it and adding glass shower doors.

THE CLOSING: Before starting any fix-up-for-sale projects, seek your real estate agent's advice so that you don't waste money on improvements that won't pay back much in your area.

For answers to your real estate questions, call Allison at 970-468-6800. Email - Info@SummitRealEstate.com. Are you looking to purchase property in Summit county, but not ready to speak with a Broker yet?  Go to www.SummitHomeBuyer.com for a list of properties that meet your criteria!

Question:  What do you see on the real estate horizon? 

Answer: I wish I could consult my real estate crystal ball, but alas, it’s in the shop getting some work done!  There is so much speculation about real estate in the media today it’s difficult to discern what is reality and what is fantasy.  But according to Inman News Group, while most housing analysts believe there will be no double-dip recession, the number of foreclosures will continue to hound the industry in 2010.

"The only guys predicting a double-dip recession are guys who want to make a name for themselves," said John Tuccillo, national residential consultant and the former chief economist of the National Association of Realtors.

"If they can call this one right, everybody will remember them. But, in reality, it will be a long, grinding, slow recovery. Banks are sitting on too much cash now for a double dip, and I don't think most people see that happening."

Lawrence Yun, the present NAR economist, expects the $8,000 first-time homebuyer credit extension to continue to stimulate the lower end of the market, influencing the entire housing ladder. As more first-timers move in, others move up.

About 47 percent of all home sales in 2009 involved first-timers, up from 41 percent in 2008 and 36 percent in 2006. Yun believes that number will continue to rise because of an estimated 16 million renter households making enough money to qualify to buy homes. Demand should remain strong in 2010 and restore confidence for all potential buyers.

"I don't think the fear factor will be at play in 2010," Yun said. "We're seeing price stabilization on a month-to-month basis."

Yun's numbers show the pool of first-time buyers is 5 million more than in 2000, and thus represents pent-up demand. In his opinion, if the credit continues to have the same impact on demand in 2010, overall house prices will rise 3-5 percent this year and sales will be up "conservatively" 15 percent.

It remains to be seen if the first-time homebuyer program -- plus the new $6,500 credit for existing homeowners -- will generate enough energy to eliminate the fear factor this year. People simply postpone a buying decision if they believe home prices will continue to go down.

The stewing pot is the number of foreclosures heading to the market. Some lenders, deluged with active foreclosures, are way behind with some borrowers who are 16-20 months behind in their payments. These properties have yet to hit the market as foreclosures. Yun predicts 2.2 million foreclosures this year.

Let's hope that fear factor is quickly eliminated in 2010. Let's hope people will regain the confidence -- and guts -- to make their payments or seek a realistic, honest solution.

For answers to your real estate questions, call Allison at 970-468-6800. Email - Info@SummitRealEstate.com. Want to know the value of your Summit County property? Visit www.SummitHomeValue.com   

Getting a loan?  It could be easier now for you to "shop around" to pick the most cost effective loan...or not, depending on your point of view!

Recent guidelines from Washington have forced a change to the way that loan originators will disclose closing costs for all homebuyers. The purpose of the new Good Faith Estimate is to level the playing field for borrowers comparing loans to be able to make apples to apples comparisons for loan scenarios.

In essence, HUD is working to bring all lenders up to the same standard of excellence in reporting closing costs that I have always adhered to, estimating realistic fees that a buyer should expect to pay at closing with no last minute surprises.

What are the important facts you should be aware of in having conversations with homebuyers? Below are some important points to know:

All fees paid to the lender/broker are to be consolidated in one line, including processing fees, origination fees, etc. These charges cannot change from the original estimate without a material change to the loan requested.
In the event fees are being charged to obtain a lower rate, these are to be broken out and itemized for the borrower's ease of comparison to other loan programs.
Estimates for fees from government recording charges and third party settlement providers we suggest are to be itemized and the lender is held to a tolerance of 10% for their accuracy. In the event the estimated charges exceed the amount listed by the allowable tolerance, the lender will be responsible for making up the difference. Estimates for services that the buyer can shop for and do choose can change at settlement without the lender being held accountable. This can include title charges, homeowner's insurance, and initial deposits for an escrow account.

In some ways this new form will be easier to understand, and more difficult in others!  We know some great lenders, so if you're looking, please give us a call. We're happy to help! 

"There are two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle."   —Albert Einstein

The 2010 Conference has been booked and this years key note speaker is Dave Ramsey . I do not personally profit if you sign up on my recommendation, but if you try to sign up without going through me it is going to cost you extra money.  Us the link below to get the discount.

http://www.gostarpower.com/go?w=conference&p=a434

STAR POWER also has a new saying that fits perfectly with the organization's goals:

STAR POWER is ... Success Shared™.

I'm proud to be a part of this extraordinary organization helping thousands of agents across the country learn how to be more successful, both professionally and personally.

Agents interested in elevating their business should definitely look into going to STAR POWER Conference. Again, the site is:  http://www.gostarpower.com/go?w=conference&p=a434

For anyone who's counting...the statistical data for sales in Summit County 2009 is in! Here, in a nutshell, is the summary for Summit County.  As always, if you'd like more details, please just give us a call! 

*Summit County ended the year 2009 with $683,009,100 in monetary sales volume. This is 36% shy of the 2008 total.

*Total Transactions in 2009 totaled 1047, 32% shy of 2008's total.

*The areas that showed an increase in median average price for Single Family 2008 to 2009- Breckenridge at +14%, Keystone at +27%, Peak 7 ( Crystal Peak Lodge) at +33%, Silverthorne at +20%,- the total Median Price Single Family Gross Live Median increased by +4%.

*The areas that showed an increase in median average price for Multi-Family 2008 to 2009 –Copper Mountain at 21%, Silverthorne at 2% and Summit Cove at 22%-the total Median Price for Condo and Townhome sales overall decreased by 10%

*The total Median Price for Vacant Land only decreased from 2008-2009 by 3%.

*There were 136 Residential Units that sold for $1M and over in 2009 vs. 177 in 2008 and 208 in 2007.

*The most active Residential Price ranges in December were $200k-300k 21 transactions, $300K -400K 22 transactions, $400K-500K 21 transactions and $500K-600K21 transactions.

*The YTD Price Point Summary for 2009 indicates a total of 1047 transactions vs. 2008 at 1471 transactions and 2007 at 2581 transactions.

*The Year to Date 2009 areas with highest number of transactions: Breckenridge at 257, Keystone at 173 transactions, Frisco at 127 transactions, Silverthorne at 117 transactions, the Breckenridge Golf Course area at 116 transactions, and Wildernest with 114 transactions. Cash transactions are still averaging around 40% each month.

Note: This information was obtained from Land Title Guarantee company and comes from actual recorded transactions at the County Clerk and Recorder’s Office for that particular month.  The information is not directly related to MLS data. The data is an unofficial tabulation of Summit County Records that are believed to be reasonably accurate.

Yes, Summit County has been hit by the national recession, but not nearly as hard as so many parts of the country.  For this we are thankful and hopeful for some stabilization in the national economy this year.

If you would like specific information about your Summit County property or any particular complex or subdivision, please respond to this email and we'll send you the 2009 Sales report for that area!

Warmly,

Allison Simson, Owner/Broker
Lynn Sustad, Buyer Specialist
Kelie Gray, Buyer Specialist
Anna Willis, Buyer Specialist
Kristi Warner, Client Care Manager
Margaret Bowes, Transaction Coordinator

Skiers, sightseers, residents and mountain travelers of all kinds now have an exciting new way of planning and optimizing their next trip along I-70. GoI70.com is a new website and mobile phone application dedicated to the I-70 traveler.

“GoI70.com is the single address that you need to plan your next trip to the Colorado high country,” said Tad Kline, TDM Program Manager of the I-70 Mountain Corridor Coalition. “We have gathered together the best highway, weather, snow conditions and local information available and put it on a single web page. You can view current highway speeds, get tips for the best times to travel, or search for anything your heart desires - trailheads, shopping, parking, lodging, restaurants – anywhere along I-70 mountain corridor.”

The site includes road information from CDOT, Google and from the network of GoI70 Jackrabbits – frequent users of the highway who post updates of current travel conditions. The Jackrabbits are part of the GoI70 social network where travelers can post their first-hand impressions of road conditions and keep up to date about what is going on along the I-70 corridor.

Since going live just before Thanksgiving, GoI70 has had 2300 unique visitors to the website and nearly 100 people follow its tweets daily, getting up to the minute information about changing highway conditions on their mobile phones. The GoI70 social network has drawn notice from Warren Miller Entertainment and the Colorado Snow website, among many others.

The GoI70.com blog offers detailed travel forecasts for the upcoming weekends and holidays, and tips for the best times to travel along I-70.

Once you are on the road, text alerts on changing road conditions can be sent direct to your phone or you can check http://goI70.com/mobile on your smart phone for the latest highway news and current travel speeds.

Visit GoI70.com and "Know before you go!”

About I-70 Mountain Corridor Coalition

The coalition was formed through an intergovernmental agreement in January 2004 to address transportation issues in the I-70 mountain corridor, and to respond to CDOT's Draft Programmatic Environmental Impact Statement. The local governments involved in the coalition include Roaring Fork Transportation Authority, the counties of Clear Creek, Eagle, Garfield, Grand, Jefferson and Summit, plus the cities and towns of Aspen, Avon, Breckenridge, Dillon, Empire, Fraser, Frisco, Georgetown, Glenwood Springs, Golden, Grand Lake, Idaho Springs, Leadville, Minturn, Silverthorne, Silver Plume, Vail, and Winter Park. Private partners include Powdr-Copper Mountain, Intrawest Corporation and Vail Resorts, Inc. More information is available at www.i70solutions.org.

Please click the "News & Views" icon below to see our latest edition and get the inside edge on Summit County Real Estate. Enjoy!

‘Twas the night before closing, when all through the house
The boxes were all packed, but the computer and mouse
 
The SOLD sign was hung in the front yard with care
In hopes that our payoff soon would be there
 
The children were nestled all snug in their beds
While visions of moving day danced in their heads
 
And Mom in her nightshirt and I in my shorts
Had just settled down to watch some sports
 
When out on the lawn, there arose such a clatter
I dropped the remote to see what was the matter
 
Down the hallway I flew and flipped on the light
Swung open the door, and gasped in delight!
 
When what to my wondering eyes should appear
But the Summit Real Estate Team full of cheer!
 
When I chose these professionals, they were the best pick
I knew all along the sale would be quick
 
More listings than most; more closing by far
When you choose Summit Real Estate, you’ll feel like a star!
 
Thanks to inspectors and brokers and lenders and more
With insight and skill and offers galore.
 
From all of our families, to all of yours again
Happy Holidays, and here’s to a Prosperous 2010!
 
 
And now for your Tuesday Coffee Break....“You give but little when you give of your possessions.  It is when you give of yourself that you truly give.”      ~  Kahill Gibran
 
 

Warmly,

Allison Simson, Owner/Broker
Lynn Sustad, Buyer Specialist
Kelie Gray, Buyer Specialist
Anna Willis, Buyer Specialist
Kristi Warner, Client Care Manager
Margaret Bowes, Transaction Coordinator

87 Spyglass Lane offers full time residents and second homeowners alike the comforts and space of a single family home, without the hefty price tag!  This 3 bedroom, 3 full bathroom townhome boasts 1532 square feet, 3 living levels, washer/dryer and a 1 car detached garage.  Walk into the tiled entry and kick off your dirty snow and hiking boots, then head up the stairs to the open kitchen, dining and family room.  Warm up in front of the gas fireplace on a cold winter evening, or take in the breathtaking views of the Continental Divide from the deck.  The south facing windows off the family room bathe this home in such wonderful and natural sunlight, and passive solar heat helps to keep it warm and cozy.  On the top floor you’ll find a private master suite and bathroom with a large walk in closet.  On the lower level are two additional bedrooms each with their own full bathroom and large windows to let the sunshine flood in, as well as a washer/dryer and lots of storage under the stairs.  Storage is key, whether you’re living here full time or are a weekend warrior!  Spyglass has a huge amount of storage and closet space within the home itself, so add on the 1 car garage and you’re set.  The garage at 87 Spyglass Lane has more than enough room for all of your summer and winter toys with a lofted storage space as well as additional shelving and cabinetry.  This home has been well maintained and loved by the owners and was built in 1996. 

Priced at $325,000 and $212/square foot, this is the only 3 bedroom currently for sale in Spyglass Townhomes and it is priced right, poised and ready to sell!  In all of Wildernest, there is not another townhome or duplex that is this size and this age, for this price!  The homeowner’s association fees are $240.00 per month and include cable tv, maintenance, taxes and insurance covering the common areas, management of the HOA, as well as snow and trash removal.  The current owners live there full time and pay an approximate $160.00 per month for electric, gas, water and sewer.  Pretty low monthly maintenance costs when you look at the competition!  Take advantage of the first time homebuyer $8,000. tax credit or the move-up buyer $6,500. tax credit and get yourself into this fantastic townhome.  Don’t wait until interest rates go up and inventory levels go down, give your broker or Summit Real Estate a call today to see this Wildernest winner! 

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 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 to buy a property in Summit County and we’ve heard that the number of foreclosures has skyrocketed.  We’re looking for a great deal and wonder what we can do to find the best foreclosed or short-sale property.

Answer: Despite what you may have heard, or what’s going on nationally, Foreclosures are not rampant in Summit County, CO.  The total number of properties in the foreclosure process here is very low – and the number of properties that actually get sold on the courthouse steps is tiny – less than 20 recorded this year. 

We are seeing more short-sale properties on the market, so that could be something to look for.  Today's buyers have one thing in common: Everyone wants a great deal. So the real issue is whether the foreclosure, REO or short-sale property you're eyeing is a bargain or a money pit.

The buying public seems to think that "great deal" equals foreclosure, short sale or bank-owned property. The truth is that these properties may appear to be bargains, but in many cases you could be buying someone else's problems. If you're looking for a bargain property, here are some key issues to consider:

1. What is your time line for purchasing?
You may find the perfect short-sale property, and the seller may accept your offer. The challenge is that you don't have a deal until the bank approves the short sale. At many large lenders a single processor may have up to 500 files on his or her desk at one time. Realtors are reporting that it can take six or more months to get an offer approved. The wait can be extremely frustrating. It can also be costly.

For example, if prices are still declining in your area and price range, the offer you made six months ago may be too high. Also, if you qualify for a loan now, will you still qualify six to eight months from now if mortgage interest rates have increased? More importantly, can you afford to make a higher monthly payment? If possible, search for a short sale or an REO where the bank has preapproved the sales price. It still may take a long time to close, but not as long as it would if the price was not preapproved.

2. Are you prepared to be in a multiple-offer situation?
Since so many buyers are searching for distressed properties and the approval process takes so long, multiple offers are common. The lender will not tell you about other offers. They may, in fact, tell you that your offer will "probably" be approved -- but you cannot rely on this representation.

If another offer comes in at a higher price and at better terms, the bank is obligated to take the best offer. If the property is a short sale, the seller's signature on the document merely opens the negotiation -- it does not finalize it. Furthermore, the seller/lender may continue to market the property even after they have signed a contract with you. This is simply smart business, as so many borrowers are having trouble closing transactions due to appraisal issues.

3. Ask the agent if the seller participated in the "Cash for Keys" program
The best candidates for good bargains are those properties where the sellers are still occupying them. Many banks have a program called "Cash for Keys." This program pays the owners of foreclosure and short-sale properties money to keep the owner from trashing the property when they move out. I have seen copper piping ripped out of properties, concrete poured down the plumbing, and appliances stolen or destroyed. Cash for Keys is designed to minimize these behaviors.

4. Beware of vacant properties
Never purchase any property without doing a physical inspection. Also, if it takes more than 90 days to negotiate the transaction or if the house has been vacant, have the property re-inspected prior to signing off on the final deal. The reason for this is that the longer a house stays vacant, the more likely it is to have problems.

For example, if you live in an area where the pipes are not winterized and there are freezing temperatures, a pipe may burst. You may not discover the problem until you turn the water back on after closing.

When you purchase, it's important that you take all of these issues into consideration rather than focusing exclusively on the price.

There are good distressed property deals out there. Nevertheless, don't limit your search. Have your Real Estate Broker show you seller-occupied homes that are not distressed properties. Thirty-five percent of all properties are owned free and clear in the US. These properties are often lovingly maintained, in top-notch condition, and in more desirable locations. In the long run, they may be a much better bargain.

You would be well advised to not to get distracted and infatuated with the terms ”short sale” and “foreclosure”. What's important if you want a deal is to find someone that has equity and is very motivated.

For answers to your real estate questions, call Allison at 970-468-6800. Email - Info@SummitRealEstate.com. Allison is a long time local in Summit County. Summit Real Estate. 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 real estate brokers, we’re asked a dozen times a day, “How’s the market?”  For some interesting information that goes below the surface and beyond the obvious sound bites that are bantered around town we go to the

Summit Real Estate Myth Busters! 

Myth #1:  Prices have fallen 50%. False.  No, Summit County has not been immune from the national (and global) recession, but prices haven’t exactly plummeted.  The average price of a single family residence in Summit County in 2009 through November 2009 was $991,000 which was actually up from an average in 2008 of $950,000.

The average price in the condominium/townhome market in 2009 has dropped more significantly - $389,000 in 2009 vs. $476,000 in 2008 – an 18% drop, which indicates the market coming back to reality after the irrational growth of 2006-07.  Adjusting? Yes.  Landslide? No.

Myth #2: Inventory has skyrocketed.  Not exactly.  While it’s true that inventory is quite high right now and there are lots of properties to choose from, the overall number of properties on the market has dropped from a 20 year high point last year.  We have returned to seeing the seasonal fluctuations that we typically detect in inventory – higher in the summer, dropping during the winter.

Myth #3:  Properties are being sold at huge discounts off of listing prices.  In some cases, yes, but not across the board.  The average list to sell ratio in 2009 was 94.2%- or less than 6% discount off of the listing price. 

Myth #4:  Foreclosures in Summit County are widespread. Hardly.  The total number of properties in the foreclosure process in Summit County is very small.  The total number of properties that will actually go all the way through the foreclosure process is extremely small – less and 20 recorded in 2009!

Myth #5:  It’s not a good time to buy a second home in this market.  Misleading.  Buyers who take the time to know the market and work with a Buyer Specialist who knows the ins and outs of what’s happening, can find some wonderful properties at great values.  Many sellers today understand the market has changed and have priced their properties at market value.

Myth #6:  There’s no point in selling right now because financing is impossible.  Partly true.  As you have undoubtedly heard, financing regulations have tightened up considerably and many lenders are simply not able to lend on many of the condo projects we have in Summit County.  That being said, we have a handful of local lenders with private money that are closing deals all day long!  As always, using lenders familiar with Summit County is the very best way to go.

Myth #5:  It doesn’t matter which Real Estate company I choose, they are all the same.  Couldn’t be further from the truth!  At Summit Real Estate we have the experience and specialized education to stay ahead of our changing real estate market - no matter how snarly it gets!  We offer the services of 3 full-time Buyer Specialists whose primary focus is to sell our listings.  Our Team environment ensures one thing: That the most important real estate transaction in Summit County is YOURS! 

We look forward to helping you navigate the intricacies of our market.  Go to www.SummitHomeBuyer.com for a list of properties that meet your dream criteria, or www.SummitHomeValue.com for info on the value of your place here.

You’ve always known that Summit County is different from anyplace else.  We’re here to help guide the way to your home in the mountains! 

As I look out my office window, I can see a lovely snowstorm making it's way across Buffalo mountain.  We might just get some snow this week after all!  I'm ready, and I know the skiers are ready.  They can only make so much man-made stuff before we start craving the real thing!

MARKET RECAP

We get so much market information everyday it can be hard to focus!  I received this from Rod Shuster of Catalyst Lending, Inc and found it to be thoughtful and easy to comprehend. I hope you like it, too!

Saying “I told you so” is rarely a good idea. At the least, it is boorish behavior. More often, you find you've spoken too soon, so not only have you alienated a few of your colleagues but you also find yourself eating a bitter slice of humble pie. So we refuse to say, “I told you so.”

That said, we are at least mildly pleased that the housing market continues to confound the naysayers (those pundits who insist on focusing on the clouds while ignoring the silver linings). It happened again last week when pending home sales rose for the ninth-consecutive month, posting a 3.7% gain in October (after posting a 6% gain in September). The consensus estimate for October ranged from no change to a 1% decline.

This persistent increase in home sales indicates to us that the housing market is unlikely to backslide. What's more, the pending-home sales index has been running ahead of the existing-home sales figures, which hints at continued improvement in actual sales in coming months, particularly if we see additional loosening in the credit markets.

The naysayers were further confounded by homebuilder news. On that front, residential home construction rose 4.4% in October, more than recovering from a 2% dip in September. It was the biggest monthly gain in private residential spending since March 1998.

Of course, the naysayers will point out that the surge in housing activity in October was due to the impending expiration of the federal first-time homebuyer's tax credit. Their point is valid. We're sure a portion of sales were driven by buyers seeking to beat the deadline, but we can't forget that the trend over the past six months has been up, before there was any push at all.
 
The Federal Reserve and Mortgage Rates

There is another reason why we think saying “I told you so” is a bad idea: It can be thrown back in your face. For the past few months we've been forwarding an argument for rising mortgage rates, and yet they keep moving down. Should we toss in the towel? Not yet. We still think rates are destined to move up. The relationship between the Federal Reserve and the mortgage market might help explain why.

The Federal Reserve has done everything in its power to push mortgage rates down to record lows over the past year, and it has succeeded primarily by purchasing an unprecedented $1.5 trillion worth of mortgage-backed securities. This Fed-created demand has helped drive down mortgage rates. Some economists believe the Fed's purchases have resulted in a full percentage point drop in rates.

But the purchases won't go on forever. Last week the Fed stated that it would begin testing a strategy to shrink its portfolio of mortgage-backed securities. One variant is to taper off its purchases of mortgage backed securities. If that is indeed the case, the wheels toward higher rates will start turning.

We don't expect mortgage rates to spike, as any move will be gradual, but it's worth noting that as private operatives move in to fill the void, their objectives will differ from the Fed's: Their objective won't be to drive down mortgage rates, it will be to make money.

Now for your Tuesday morning coffee break:

 A great place to call home in Willowbrook Meadows, this home is a true gem!  The minute you walk in the front door you feel the warmth and see the quality. 

There are gorgeous hard wood floors from the entryway throughout the large living room and sitting area. This opens to the large, well appointed kitchen through glass French doors.  The kitchen has upscale, newer appliances including a gas range. The breakfast bar is perfect for your morning coffee.  You’ll find lots of cabinet space as well as a large pantry. The dining room is ideal for entertaining, it has a two sided gas fireplace to add to the ambiance, and a sliding glass door that leads out to the deck and back yard making it quite easy to use your grill.   The yard is already fully landscaped and backs to the open space. Upstairs you’ll find three nice sized bedrooms and two full baths. The master bedroom has its own full bath and a newer private deck with beautiful mountain views.  You’ll love the two car attached garage this winter with plenty of room for cars and all of your toys.  It’s not often that you’ll  find this kind of opportunity with a price that’s unbeatable at $445,000.00. Call today to set up your private showing on 233 East Rabbit Court!

Visit www.SummitHomeBuyer.com and meet Lynn Sustad, Kelie Gray and Anna Willis, The Buyer Specialist Team at Summit Real Estate.- The Simson/Nenninger Team.  A member of the team can be reached at (800) 262-8442 or (970) 468-6800, www.SummitRealEstate.com.

did you know?

Make it a great day.....and Happy Thanksgiving to you and yours!

Answer: I suspect what your friend is referring to is something called a "land contract" or "land sales contract." Given the lack of financing in the jumbo loan market, this may a viable option for some sellers in this market. Land contracts were used extensively in the early 1980s, when home mortgage rates jumped to over 18 percent.

All land contracts involve having the seller carry part of the financing. Since 35 percent of all homeowners own their property free and clear, seller financing can be an attractive option for those who must sell.

When the seller finances the sale, there are normally no points or fees. This saves the buyer money. The deeds and other documents work in the same manner as in a transaction where there is bank financing.

Unlike other types of financing, though, in a land contract the title normally does not transfer to the new buyer until the purchase price is paid in full. (Some states require the title to transfer after a certain percentage of payments have been made.) The deed transferring the title doesn't record until this payment threshold has been reached.

When the rates went sky high in the early '80s, creative financing became the order of the day. Many sellers had low-interest-rate loans. It was common practice for buyers to assume the existing financing. This could be through a direct assumption that the lender approved or it could be through what was known as a "wraparound" or "all inclusive deed of trust" (AITD).

Here's how wraparound mortgages work: Assume that a property sold for $200,000 and there were two loans on the property -- a $100,000 first mortgage at 5 percent and a $20,000 second mortgage at 8 percent. The buyer puts down $20,000. The seller could wrap the existing mortgages and give the buyer an AITD.

If the current bank interest rate was 14 percent, the seller might charge 12 percent for the AITD. This was a great deal for both the buyer and the seller. The buyer gets an interest rate that is 2 percent less than the current market rate.

The seller would make an additional 7 percent annual interest on the $100,000 first mortgage, 4 percent on the $20,000 second, and 12 percent on the additional $60,000. Since the seller was only loaning $60,000 out of his pocket, the total interest of $15,000 per year represented a 25 percent return on the actual amount borrowed.

Needless to say, the banks weren't thrilled with this situation. Congress passed regulations so that the banks could stop borrowers from assuming or wrapping a loan without the lender's permission. If the seller wrapped the loan without the bank's consent, the bank could enforce the "due on sale" provisions by foreclosing.

To avoid the due on sale provisions, the next wave of creative financing involved land contracts. Since the original owner is still on the title and is continuing to make payments, there was no way for the bank to know that a sale had taken place. The normal structure was to have the buyer make payments directly into an escrow account. The escrow then made the payments to the lender on the original seller's behalf.

The lenders eventually caught on to this strategy and started checking to see whose names were on the utilities. Many sellers then opted to keep the utilities in their name and simply increased the monthly payment.

So is this still a viable option today? Land contracts are legal in most states. For sellers in today's market who own their property free and clear, a land sale contract could be a desirable way to sell their property. The reason is that if the buyer defaults, the buyer forfeits the right to purchase the property.

There are definitely pitfalls to land contract sales, though, as it may be challenging to remove a defaulting buyer from the property. And buyers may have trouble receiving a marketable title even after making all of the payments to the seller.

The seller can place a provision in the land contract that in the event of a buyer default, the past payments the buyer made are converted to rental payments. Once the buyer defaults, the owner can file an eviction notice.

This is much faster and easier than going through a foreclosure proceeding. But because of the complexity of this type of sale, you will need a real estate attorney to make sure all the provisions are drafted correctly.

The more interesting issue that your question raises is whether a seller can wrap an existing mortgage in today's environment. Virtually all loan documents have "due on sale provisions."

Today, the banks are struggling to keep pace with the huge number of defaults, foreclosures, and short sales. The real issue is whether they would elect to foreclose on an owner if the payments are current. Personally, I would be reluctant to embark on the steps it would take to hide this from the lender.

On the other hand, if the seller owns the property free and clear or receives enough money from the downpayment to pay off the existing loans, a land contract could help a seller close a property that might not be able to qualify for traditional financing in today's market. Inman News

For answers to your real estate questions, call Allison at 970-468-6800. Email - Info@SummitRealEstate.com. Allison is a long time local in Summit County. Summit Real Estate – The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Allison’s long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field.  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 answers to your real estate questions, call Allison at 970-468-6800. Email - Info@SummitRealEstate.com. Allison is a long time local in Summit County. Summit Real Estate – The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Allison’s long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field.  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