About Archuleta County, CO

As I write this letter, I am looking out the window and it is snowing hard. Supposedly, we will get 1 to 3 inches. I think the weatherman has lied again. So far, this winter is reminiscent of last year, the toughest winter in 25 years, only this one has gotten a big head start. If you are in the snowplow business, there is no recession.

Speaking of the economy, I’m doing my best to be optimistic. The first two days of 2009, the stock market was up by the biggest percentage in history. Mortgage rates are down. I’m considering refinancing when rates hit 4.5% and no points. I’m keeping my fingers crossed that we get an Obama bounce and consumer confidence starts to roll in the right direction. In the meantime, I am watching my pennies and trying not to be wasteful or frivolous. Gas prices are great. Two months ago, it cost me $100 to fill up, and today I spent $40 and had to double check to make sure the pump didn’t shut off prematurely.

A lot of other people are watching the interest rates and thinking about refinancing. I called Jim Askins at Fairway Mortgage to find out what people need to do so that they can be ready to pull the trigger when the rates are right. Jim recommends the following:

If you have a mortgage with a rate at 5.75% or higher, get in line for the refinance event when it comes:

1. Make full application with all substantiating documents

2. The lender will order the appraisal.

3. The lender obtains a full approval “clear to close.”

4. Wait for your target rate to come into focus, and the lender will lock in and close the loan, sometimes in less than a week.

So, you have to be completely done, ready to close the loan. This will allow your lender to lock on the best terms available for you.

Regarding Real Estate; the stats I put together this month go back to 2005. Check out the dramatic change. Prices have not declined here as much as other parts of the country. I predict prices will continue to fall at least till this summer. It’s a great time to buy! It’s a great time to buy!

I had a good year in 2008 up from 2007, and sold more than twice as many properties as the next Realtor. I look at my sales as a way to cheer me up when I feel sorry for myself or need reassurance and confidence in myself.

The key to success in 2009 is to think outside the box. Be creative, work hard, think positive, and don’t become complacent. I’m working on my goals for 2009. The key is writing them down. If you have not written your goals down this year, DO SO. I promise it works, but you must write them down with great detail.

I wish you all the best for 2009.

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.