I only have one meeting today. Good. I just left a meeting as part of a sub committee of the AEDA board of directors concerning PR. It's not that I don't like meetings, it's just that my mind gets a few pieces of fodder to chew on, and then automatic brainstorming overdrive takes hold. It hurts after a while.

Hot water= economic growth?

At one point in our meeting the discussion surfaced about the current planning stage of our towns geothermal project feasibility study. There are many ideas of what this might look like ranging from a vegetable grow dome that employs locals and sells fresh produce to the surrounding markets, to a geothermal-esc water feature for tourist to walk through and be educated. A kind of art museum meets science project feel. This kind of stuff gets my mind whirring. A project that effectively uses our natural resources for positive, economic, clean growth that aids in providing other positive benefits such as organic food to sell and consume....that's pretty cool!

It's nothing new, and we are not the only ones.

There are others in the southwest looking more intently into geothermal resources. Ouray is one of them. Here is an excerpt from a recent article published in Colorado Energy News about ouray taking a second look at utilizing there geothermal mineral springs.

The City of Ouray is examining the viability of harnessing power from its geothermal hot springs...Pagosa Springs is the only municipality in Colorado with a geothermal heating district. The system provides heat to schools, churches and other customers, as well as hydronicb heating for sidewalks during the winter. Other communities such as Steamboat Springs are investigating new uses for their geothermal resources, both for environmental and economic reasons.

If you have ever visited Pagosa Springs you know that we are known for our hot springs soaking facilities which are growing every year. I appreciate the springs for those uses. However I am very excited about being a part of a group like the Archuleta Economic Development Association that is thinking and acting creatively to leverage these geothermal resources in such a way to make a positive economic impact on the future of my town.

Earlier this month I wrote an article entitled "Inspection, Objection, Rejection... Oh My!"  in which I outlined the reality that emotions play in the inspection negotiation process between both buyers and sellers of residential real estate. In this piece, I layed out a few practical things to keep in mind as you enter into this process, and I promised an interview with a home inspector.

Matt Matzdorf was kind enough to give me his lunch break earlier this week and let me ask him a handful of questions about his profession.

 

Chris-"Matt, how long have you been a home inspector here in Pagosa Springs?"

Matt- "We have lived here for about 16 years, I have been a certified inspector for about 5 years."

Chris-"Is there a licensing requirement for  home inspectors? "

Matt-"You do not have to have a license in the state of Colorado to be a home inspector. About half of the states require licensing and I believe Colorado will follow suit in the not to distant future. Currently it's just like General Contracting, there is no certification and no license required. However, I do carry a certification,  It took me about 6 months to get it  through American Home Inspectors Training."

Chris- " I understand that inspections are not used to deal with cosmetic issues but issues that could be of structural or hazardous nature. What are some of these potential issues and how do you uncover them?"

Matt-" I carry a bag with about $3,000 dollars worth of tools that I use for detecting hazardous gases and materials. Combustible gas sniffers, Carbon Monoxide detector and a microwave leak detector to name a few.

Typically a home inspection is to identify major deficiencies with the structure and that can include anything from weak roof framing, structural issues or bad grading in drainage causing heavy moisture infiltration into the crawl space."

Chris- "When is a good time to get a home inspection?"

Matt-"Home inspections are usually asked for by the buying party as a part of the buying contract process. I also do a lot of Pre-Listing inspections for the home seller before they put their home on the market. This shows conscientiousness on their part, and allows full disclosure to potential buyers."

Chris- " What kind of  issues do you commonly see that can really be a big dollar item to correct?"

Matt-" It does not come up a lot but obviously structural foundation issues are a biggie because the house is sitting on top of it. If you have some weak framing members in the attic or up in the roof system it's relatively easy to get up their and brace it...but when you've got cracked footers or bowed stem-walls that's a big one, that's gonna cost a lot of money."

Chris-" I know from my perspective the last 18 months or so has been particularly slow in real estate sales, how has that corresponded to your business? How busy are you right now and how do you see 2008 shaping up?"

Matt-" It looks like we are hopefully right on track to have a good year. In the last 3 weeks my business has picked up dramatically."

I have used Matt for inspections and found him to be highly professional and his work very thorough. You can learn more or contact Matt at his website Matzdorf Inspection Services.

Often times the most difficult and emotional portion of the home selling process revolves around the time allotted for the home inspection. There is something about our human nature that cares nothing for our home being picked apart by a guy with a flashlight and a tool-bag, only to have a list of "deficiencies" thrust at us a few days later based on his findings.

It's a personal space - our house. One that has been lovingly cared for, painted and repainted. That tile work in the kitchen took us all Spring and we don't mind at all the small gaps in the trim. We love the creak the door makes when entering from the garage, it's a kind of "welcome home" greeting after a hard days work. Why would these potential buyers see it any different?

I represented a couple of sellers once that always come to my mind when thinking on inspection issues. Bob and Linda were their names and they had a home on a few acres that they asked me to help them sell. (Only the names have been changed to protect the parties involved, the rest is 100% true...mostly) Right out of the gate in the listing presentation I attempted to give them a little warning. "Guys, I want to encourage you on one issue" I said. "When inspection time comes I want you  to have mentally reserved some money for repairs, $2500 maybe even $3500 dollars." " Oh sure we understand Chris." was the reply.

Several weeks and showings later we had a bonified offer for about 11% more than most of my collegues said we would be able to get for this house...I was ecstatic for them. When the inspection came through and the buyers were asking for a rebate of $3000 to do repairs I was even happier. Bob and Linda...not so happy. It seems that they had no problem with many of the inspection issues pointed out, and on second thought, maybe they did not want to sell after all. They took it very personally and late in the process I was not sure that they were going to follow through and sell no matter what the facts were. Dozens of very emotional phone calls and late nights of tears ensued. Bob felt very insulted even assaulted that the buyers wanted a few things repaired and upgraded. I was caught trying to protect them from themselves, and the contract that they had very willingly agreed to, due to an emotional flare up frustration.

Bob and Linda turned out to be a rather extreme case but there is almost always a certain level of personal rejection when a seller is confronted with the  not so perfect attributes of their home...and we all have those nuances about our residences.

Here are three things to remember that may help you as a home owner gain a little perspective when it come to the inspection portion of your home during the selling process:

It's negotiable- Just because a buyer asks for something to be corrected doesn't mean you HAVE to do it. A seller will often times present what is called an "Inspection Notice" with a list of requests on it. Sometimes they are asking for things that are not necessarily "must haves" but only "would likes". Ask for a lot, and get a little kind of thing. If your REALTOR® has good rapport with the selling agent sometimes these differences can be deciphered which will give you a better position to negotiate from.

It's calculable-Nine out of ten times there will be a few things minor or major that you will be asked to correct after an inspector does his work. If you prepare for that monetarily before hand, it makes the process much more bearable. Just plan on holding back an amount of money to use for those repairs. Ask your REALTOR® to help you spot possible issues so that you can do these estimations in the beginning.

It's business- Don't take it personally. This can be very difficult but remember that the buyers have no emotional attachment to your home yet. They have never had a family event or even a meal around the table. The buyers are simply looking for the best value that they can get at this point, which means that they want it to be perfect if possible.

The inspection portion of a home sale can be very tough but it doesn't have to be. If you are listing your home to sell ask your real estate professional about some of these things up front. Find out their strtegies help you through this part and what some of their past experiences of been like. This is only one piece of a sometimes complicated puzzle but if your REALTOR® is ready and prepared to help you it will take a great deal of anxiety out of this process.

 Watch for my interview with a home inspector if you want to gain insight into some of the common hang ups that are encountered through this process....coming soon.

As a REALTOR® operating in Pagosa Springs, my business is tied very closely to the mortgage industry.  The shifting tides of rates and corrections have left me dependent on my "daily fix" via the Internet to try and maintain some understanding of current mortgage conditions.

Thankfully, I don't have to go this alone. Recent news of fairly significant rate changes whet my appetite enough to seek out someone who really knows what's going on.  Kathie Lattin of First Southwest Bank was gracious enough to give me a few minutes of her time this week. Kathie is the vice President of First Southwest Bank and has been with them for 17 years. The following is from an interview with her:

Chris: "Kathie could you give us an overview of what has happened in the last few years in the mortgage industry?"

Kathie: "We hit the big turbulence when the sub-prime market dropped - because too many people over-borrowed for their ability, which has really hurt the housing market. There are a lot of houses out there for sale. The inventory is available but the qualified buyers are becoming more picky.

"The programs have all changed. Obtaining the 100% financing is getting a lot tougher. Mortgage insurance and extra costs are still appropriate to what you are doing. You can do 80/20 purchases or 90/10, whatever you want to do, but a lot of them aren't offering second mortgages anymore - so you can't do a first/second combination. Most of them only go up to 90% on the first. So to get the 100% you usually have to go to an in-house portfolio or have mortgage insurance."

Chris: "I understand that last week the long term mortgage rate dropped. Can you give me a basic scenario of what that means for the borrower on a $350,000 home."

Kathie: "This rate drop was put into place to help stabilize the core market. Last week with an interest rate of 6.25% a borrower would have made a principal and interest payment of $2,155, where today with a 1% origination fee your looking at about 5.5% which drops that payment down to $1,987. So we are seeing significant monthly payment changes from the interest rate drop."

Chris: "The big news this  morning is that the Federal Reserve cut the short term interest rates by 75 basis points. Will that have any effect on long term mortgage rates?"

Kathie: "Not on long term mortgages, but on short term borrowing. The cut was made in hopes that consumers will get out there and borrow more short term money- your credit card, in house accounts, home equity line of credit and that sort of thing. If they pull it down then people can therefore buy more and get the economy back going.

Chris: "It seems that I  am starting to see more attention on some of the homes between about $200,00 and $250,000 in the recent weeks. Can you offer any reason for this concerning mortgages?"

Kathie: "We are seeing a shift in the people that are able to qualify for these loans. Rates are coming down. We are at a low even for what it was two years ago...so this is making those loans available. What we have to do as REALTORS® and Lenders is consciously put the right person in the right home. Not over extend them, we can almost qualify them for anything. The 100% is still out there but we need to know they can truly afford this so that were not flipping or doing foreclosures a year or two from now. We have to justify to our customers, we are here for the long haul."

Chris: "For the borrower with an average credit score what rate can you give them right now?"

Kathie: " Probably 5.875% with no origination fee and 5.5% with an origination on a 30 year fixed rate mortgage."
 
Thanks to Kathie Lattin for her expert insight into the mortgage industry. I highly recommend her for her professional efficiency and strait answers when it comes to home loans. She can be contacted at kathie.lattin@fswb.com or call 970-731-1300.  Learn more about First Southwest Bank at their website.

Chris Liverett lives in Pagosa Springs with his wife Rachel, daughter Sierra and son Cedar. Serving as Director on the Pagosa Springs Board of Realtors he helps buyers and sellers of real estate find one another, as part of Associated Brokers of Pagosa and Jerry Driesens Real Estate.  You can learn more about Chris at his web site.

Check out the Blogger’s Connect keynote speech by Curbed.com’s Lockhart Steele.

   I find myself all to often brainstorming with clients about how we can effectively sell their property in a sluggish market. The normal outcome of these sessions  usually has an aroma of marketing, networking, pricing, repairs, clean-up, landscaping, home staging  or buyer incentives...until now.

   Introducing St. Joseph the Patron Saint of Carpentry! Upon entering my office a few days ago, I find a Fed-Ex box on my desk. I am a self admitted horrible multi-tasker (my wife will back me on this) and at the time I was talking on my cell phone, so it was my natural response to set this box aside, and focus on whatever it was I was into at the moment. When I did get around to opening the box, I noticed the sender is a client of mine, so I eagerly ripped apart the seals to find not one but two smallish green packages with this Patron Saint of Carpentry situated in plastic staring out at me.  As a man that grew up in the buckle of the Bible-Belt, Catholicism was not something that was front and center in my world, so I needed a little help understanding this gift. He looked pretty sad to be a Saint, so I took it upon myself to investigate this man of history.

   I found that according to http://www.luckymojo.com/, Saint Joseph (San Jose in Spanish and San Giuseppe in Italian) is petitioned by many conservative Catholics as one who grants an easy death, but in the wider world of Catholic folk-magic, he is the Patron Saint of real estate matters and home sales.  Eureka!  Now we're on to something.  The reason given for this belief is that he was a carpenter who taught his "step-son" Jesus the carpentering trade, and he always saw to it that Jesus was well housed. 

  On the front of the package reads the words "The SOLD Realty Co." clearly defining the purpose of the Saint statuette. A quick survey around the box and I find "Can't sell your home? Ask St. Joseph... He's helped 1000's!"  OK, sounds reasonable to me, but how do I put this little man of power to work? I mean for $2.99 this guy better pack a big punch with that tiny 2 cm  plastic axe!

  I found that there is a method to the "mojo" of "Joe". He is to be buried in the yard of the home you desire to sell. While differing methods seem to abound, here is a list that the handy burial instructions for him include:

• upside down
• in the rear of the yard
• 3' from the rear of house
• facing the house
• simply on the property
• right-side up
• in the front yard
• exactly 12" deep
• facing away from the house
• when sold remove, etc., etc.

I guess you can pick and choose from these based on how much snow happens to be in your yard.

   There is a disclaimer for St. Joseph.  "For this practice to be fully effective, however...sellers must, of course, first do such practical yet all important chores, as completing all necessary fix-up, properly staging the home and finally, adjusting the price so as to reflect true market value...".  It's refreshing to know that my advice to sellers is at least on the right track (reference my opening paragraph).

   If the plastic statue can bring me such good fortune, what else is out there concerning this holy man? Referencing my favorite general information source on the planet, aka Google, I am delighted to find additional real estate help methods with the Saint's name attached:

1 Dressed and Blessed Saint Joseph Candle
1 Statuette of Saint Joseph
1 Bottle Saint Joseph Oil
1 Saint Joseph Chromo Print
1 Saint Joseph Holy Card

  I don't know if I will have the opportunity to explore these additional options of  serendipity. Nothing against St. Joseph, any other Saint of old or the Catholic church, but I will continue to stick with my belief of provision.  I will put my trust in the higher power of God and the work of His Son. In doing this continue to accept guidance and direction concerning life, relationship, love, business...and selling houses.

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.

The much anticipated Pagosa Mountain Hospital Critical Access facility is having it's Grand Opening on Saturday, January 5th 2008. The ribbon cutting at 2:00 PM will kick start the opening of the new facility to Pagosa area residents.

The hospital has been completed earlier than scheduled, on budget and with no increase in mill levy thanks to generous private and community donations and fund-raising efforts. 

  Beginning Monday January 7th,  there will be 24/7 Emergency Room services, 11 private inpatient hospital rooms for routine nursing care, a full-time laboratory, CT digitized scanning, radiology, EKG and EEG services, and much more.  Future services will be added in an effort to continue to enhance and grow the features and services that the hospital will provide.

This is a wonderful thing for Pagosa residents in their personal lives as well as a crucial piece of the puzzle in supporting our economic growth.The  Pagosa Real estate market stability is just one of the benefactors. Many families and seniors are more willing to live full time in Pagosa with a solid medical support structure that  adds to an already experienced Dr. and specialist base that we have in place. Up until now the closest ER or critical access facility is in Durango, a one hour drive from Pagosa Springs.

The "Real Estate Zebra" Daniel Rothamel provides his new series titled "Real Estate in Black and White".

I thought it very interesting , especially on the branding level. The question I am posing to myself is- Does it still come off as professional? Does it appeal to the masses or just a niche new generation web 2.0 savvy bunch.

I thought I would put it to the rainers for questioning. I do like it. I will be thinking hard about this type of advertising as I head off for the holidays and do a little reflecting.

Pagosa Spring's Colorado Timber Ridge Ranch is arguably one of the finest communities found in Southwestern Colorado. A subdivision of 203 residential lots located very close to the core area of Pagosa Springs.With expansive views of the northern and eastern San Juan Mountains, Timber Ridge Ranch is home to abundant wildlife and majestic beauty. 

   470 Heath Drive is currently being offered as an executive retreat on the high point of this highly prized subdivision. Three full acres among a community that offers paved roads, central utilities, log cabin clubhouse, exceptional home throughout and breathtaking panoramic mountain views.

  This home was recently constructed by Jon Forrest and Larry Ash of Alternative Home Builders, Pagosa premier contractors. Look for their work on the cover of "Timber Frame Magazine".

As you enter the home you will notice the massive hand-carved entry door. As you journey into the home you will be met with warm custom finishes from floor to cathedral ceiling.

  Stand and soak in majestic mountain views of the East Range of the San Juans, look upon  beautiful peaks through a huge collection of glass in the great room prow.

Ventre into the recesses of the home and find accommodation that can comfortably sleep up to 24. Each of the home s3 levels offer full baths great play space, and a soft place to lay your head. Kitchen and baths are adorned with solid granite counter-tops, upgraded fixtures and custom tile-work. Exterior amenities abound featuring high-quality low maintenance siding that is very popular in our harsh climate. The circular driveway is freshly paves and the huge deck features trex-deck as a low maintenance choice.

Please feel free to gather more information by visiting our dedicated web page at 470 Heath Drive