Insight into Pagosa Springs through the eyes of Chris Liverett (aka PagosaRE Guy)
A friend sent me this graph yesterday. It tracks the real estate sales activity in Pagosa Springs compared against the S&P index. It is not rocket science but it gives the indication that market activity is directly tied to stock market confidence here in Pagosa Springs. This makes even more since considering we are primarily a second home driven market. I thought it looked interesting when you look at it using the graph.
Pagosa Springs Real Estate market compared with the S&P 500
In response to the comment I get 20 times a week…”Chris, let me know if a screaming deal comes along…” I am going to attempt to post what I feel is one of the better real estate investment opportunities every week here on Peak Buzz.
253 Wilderness Street Pagosa Springs Colorado
Asking Price- $165,000 now $144,900
MLS#- 616544
Square Feet- SEE COMMENTS BELOW
Bedrooms- 4
Bathrooms- 2
Year Built- 1997
Subdivision- Lake Forest Estates
Garage- 1 car
Here is my opinion on this home-
THE UP
It sits in a good location of Lake Forest Estates just a short jaunt to the grocery and shopping, so on the location for re-sale I give it an 8.5. The listing agent has it in the MLS for 1095 square feet which would make it about $132 dollars a square ft which is only a good price in this market for this caliber of home. After showing it to some customers a few weeks ago this number of 1095 did not sit very well with me, I felt it was much bigger. After talking to the county folks they tell me it is almost 1300 square feet. (1268 to be exact). This puts the price per square at around $114…I like that much better. I give the price a rating of 9 right now.
THE DOWN
The home needs some updating so for condition I give it a 7. The layout of the 4 bedroom design does not work well, however remove one wall and expand your living, then update your kitchen and equip it with upgraded doors and paint and…
THE ALL AROUND
…I think someone could make a a few bucks on this one. The curb apeal is nice and doesn’t need too much. That’s my take on it. I would love to hear yours.
Give me a call if I can help you see this one and be sure to check out it’s location and more information below.
If you are in my business (or any related business for that matter) your ear has been tuned well to pick up any chatter of real estate market activity. Some of the coffee shop talk that I have found myself in lately has been aimed at the seepage of information coming from Southern California about the jump in home sales from August to September. The real estate boom that we experienced in the first half of this decade was tied closely to the California market…as was the real estate slowdown. Many times over I have customers contact me from various parts of the West declaring they are going to buy in Pagosa whenever they sell in…fill in the blank.
The most recent uptick in the markets out here in the West has not made a lot of press as of yet. It is still too early to say “the market is changing”. (no one wants to risk crying wolf) One thing is becoming apparant - CASH investors are dipping their toes in the water, and testing the new lows. Pat Kitano has outlined some of these resourvces in one of his recent posts.
One of my sources, recently let me know that Pagosa has seen about a 66% increase in foreclosures in 2008 compared to 2007. As a Realtor® one of the more frequent inquires that I am getting is about new foreclosures in our market. in response to this, I have provided a way to automatically e-mail my customers and clients foreclosure properties as soon as they become available on the market.
If you are interested in getting foreclosures E-mailed to you when they become available on the market, join my E-mail list below, and when prompted choose the “Foreclosure Information” option.
I just added another potential buyer to agrowing list on my IGoogle homepage. I am running into the same scenario time and again, and I am hearing my colleagues say the same thing. This summer and fall I have had many customers head down the exploratory road with me, get excited about purchasing a property or two, and then opt to sit on the sidelines. I don’t really blame them for being a little timid or even confused at all of the mixed economic signals floating around out there. What goes up must come down, and we have been watching prices slide slightly for a while now. Even on a National level August gave us a breath of fresh air with a higher than expected pending contract report.
I feel like many buyers are waiting for the signal, the checkered flag of real estate….The proverbial “bottom”. The slight problem with that is that no one knows the bottom until it has already come and gone.
I do however know that the investors who are prudently looking at price but also looking at other factors such as optimal financing, time of year, and practical circumstances are winning in our current market.
The overall economic grey sky is causing some sellers to get really serious about home pricing. For example- This 3 bedroom 2 bath single family home hit the MLS just this morning for $125,000. In an area where average home sales are in the mid $250’s, this home is priced well enough to stand out far and away from it’s competition.
This home is listed by Jan Pitcher Real Estate and not Jerry Driesens Real Estate
Someone will grab this little house up, possibly rent it for a cash-flow profit or simply have a great little starter home…..It may be my potential buyer #15…or someone else’s.
According to CNBC, Agust 2008 pending home sale contracts have risen 18% in the West, for an average of 7.4% Nationally.
During my recent conversations about the market I have found myself using the phrase “There are some good buys in our market right now if you are in the buying mode.” I generally try to stay away from this type of talk and just let the market and facts speak for themselves…I just don’t really want to come across as being salsey. However, I feel like there are great buys right now for the savvy purchaser.
Sales jump 7.4%
Well apparently so does the national market… I ran across this article on MSNBC during my 3rd cup of coffee and found it share-worthy.
WASHINGTON – Pending home sales rose 7.4 percent from July to August, an unexpected piece of positive news for the battered U.S. housing market.
The National Association of Realtors said Wednesday its seasonally adjusted index of pending sales for existing homes rose to 93.4 from an upwardly revised July reading of 87. The reading was the highest since June 2007.
Home sales are considered pending …Read on if you like
While working in Pagosa Springs real estate I often get the question what will (fill in the blank) buy me in your area? I get it often enough that I thought it might warrant a little blogging on the topic. So here is the first post of my WWMMB? series.
Single Family Residential
This is the begginging price range for single family homes in the “PLPOA” or Pago
sa Lakes Property Owner’s Association. This area is what some refer to as the core area of single family living. It is comprised of several subdivisions that are in close proximity to fishing, golfing, hiking, biking, x-country skiing, grocery, coffee shops and other shopping.
View Featured Home In This Price Range
View All Homes In This Price Range
Condo Residential
For the condo buyer this offers the second tier of buying options with many used and new units, up to 3 bedrooms, mountain views and extremely convenient locations to service your vacation or part time living desires. Many of these units offer a garage for super convenience during the winter months.
I ran across an article today that was recently posted on a resort blog called THE VACATION INSIDER.
It lead me to the National Geographic site that outlines “The Next Great Adventure” towns
As National Geographic Adventurer has mentioned, Pagosa Springs hits the list for top vacation spots in the West and calls them good upcoming investments.
Now that the clocks are put in such a position to maximize sunshine there is a creeping sense of Spring in the air. I have started making the list to re-organize my garage and get the pencil sharp for a flower-bed-planting session. Just like this weather change brings about a restlessness for increased outdoor activity, it also spawns home sellers to present their homes to the public for purchase. The season change always brings about an increase in home listing activity for REALTORS.
I found myself in conversation this weekend with one of my clients that has a 35 acre piece for sale. We were having an on-line discussion about a new year strategy. As I was giving out the methods in which I use to gain my clients listings the most exposure, I thought about one that many times goes un-discussed but that is a very powerful way to have your home known by the real estate pros and have it make a lasting impression on them…The REALTOR Caravan Tour.
Every Tuesday morning, barring an overdose of snow, a group of REALTORS who belong to the Pagosa Springs Area Association meet at the PSAAR office with info in hand and a singular desire of the minds- To inform and be informed.
The Caravan tour is designed to allow listed homes in a predetermined area to be pre-viewed for exposure, and critiqued for marketability by participating brokers and agents. It is a wonderful opportunity for us to brag on our clients homes and point out all of the attributes that are found within. In return, we are able to get a professional panel of active real estate agents to give direct feedback of their opinions, and constructive criticism which may lead to creative solutions to help sell our clients homes.
For the individual agent, it is a remarkable way to help keep us up-to-speed on the inventory in a very memorable way.
If you are reading this and are trying to sell your place here are a few ideas that may give your home a little more staying power in the minds of the tourer’s.
In general have your place in good showing shape and take away all possible curb appeal negatives. Anything that can be done to positively bookmark your home in the minds of the Caravaners is a plus- be it with sight, sound, taste or smell. Ask your agent to make sure your home gets on the Caravan tour and then take some time to consider the feedback. This can be a productive way to get a good grasp on the market position of your home so that you can make necessary adjustments to obtain the end result…a successful sale!
I am not sure that the general public understands the way in by which REALTORS® get their business and are paid. I don’t mean that as an insult to anyone. Before I bought my first house or obtained my real estate license I was definitely in that category. I often get sideways looks when during conversation someone finds out that I am not a salaried employee of my broker, and that I indeed do not get a paycheck until I successfully help someone buy or sell real estate. Additionally, there is a lack of understanding when it comes to who pays who upon the closing of a property, or there are a lot of people out there who simply don’t care. During the Christmas break I ran into one such confused couple.
While entering a Mexican restaurant/Sports bar/Karaoke club (got to love small town conglomerates) I received a call about one of my listings in Pagosa Lakes. The lady on the phone and I begin the home buying question answer routine….”Who’s the builder?” “What are the taxes?” “Is the plumbing copper or poly?” “How big is the lot?” ” Is it 2 baths or 2.5?”- I reached into my mind to remember the details of the property and also gave her advice on 2 other homes in that subdivision and a place in one other area. During the conversation she dropped a few hints that she had been in a house or two, so I asked her if she was working with another REALTOR®. She said that she had been shown a home by an agent but that she was not committed. During that showing she had picked up a flyer and called another REALTOR®, and also picked up my flyer and called my office and spoke with Jon my associate. Now she is talking to me. For those of you keeping count, I am the 4th real estate professional (that I know of) that this couple has been in contact with in 48 hours!
Let me be clear hear. Without proper paperwork between a customer and any broker, the sky is the limit in communication with different real estate agents. She did not violate any ethical rules. I am a firm believer that there are ethics, and then over and above that, THERE IS THE RIGHT THING TO DO. Let’s take this beyond the theoretical and dive into the practical.
3 Reasons to be loyal to your real estate agent
1- By building relationship your needs and desires are known.
Flying through the ranks of agents without giving proper time to any one person severely depletes you chances of truly having your needs understood. Anyone who has spent a week previewing homes with a single agent knows this. The homes being shown on day 3 more than likely fit your needs a lot better than the first 3 homes you were in. Each feature that you like or dis-like is mentally bookmarked by a good agent, and put into the decision making process for future choices. It just makes sense that you would not want to re-set this process of relationship building over and over.
2- The commissions are the same.
This is a big factor with many. Here is a simple breakdown of how real estate commissions are paid.- Someone selling a home contracts with a Listing Broker to help them sell. There is an agreement of commission percentage between the two parties. For my example we will use 6%. That means probably 3% goes to the Listing Brokerage and 3% goes to the Selling Brokerage, assuming there are 2 agents involved. If there is only one agent involved there is still a 6% commission paid. Sometimes a Listing Broker may give a discount for services if he or she is handling both sides of the transaction. This would be done with the Buyer’s permission. Usually the commission is paid by the Seller. That means, as far as commission goes, it makes no financial difference to use an agent to go to bat for you while purchaseing a home….which takes me to my next reason-
3- By having a REALTOR® work on your behalf you have an advocate in the process.
By choosing an agent that you can work well with and sticking with them, you will have a professional to help you in every step of your home purchase. It’s not just about working through price and signing on the line. It’s negotiation, understanding offers, counter offers, purchase contracts, lending, inspection issues, addendums and disclosures. It’s having the research savvy to quickly and with certainty find out about taxes, land information, utility issues, county records, liens, parcel history, sales history and survey information. It’s having the experience to know about HOA issues, special assessments, CIC documents, the ever-changing price of utility services and the many many named fees of our beloved water and sanitation service!
This is just 3 of the many ways that it benefits you, the buyer, to find a trustworthy agent and give them that trust to help you in your home buying process. Seek out an individual who has character, knows the area in which you are looking and you find easy to communicate with. Then lean on them as your agent and let them know that you believe in them. Working this way, you will discover far better results than dialing the number printed on every sign you pass or flyer you pick up.
