SAN LUIS PROGRESS Real Estate VALLEY
2017
February 15, 2017 719-852-3531 835 First Ave. Monte Vista, Colo.
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Real Estate Progress
Wednesday, February 15, 2017
SLV Housing Coalition strives to offer affordable housing
SAN LUIS VALLEY—According to the San Luis Valley Housing Coalition’s (SLVHC) mission, the organization “promotes positive community development by providing affordable quality housing to low-to-moderate income residents of the San Luis Valley.” The coalition was founded in1993 in response to the increasing housing needs of the San Luis Valley. As a 501 (c)(3) non-profit organization that has been recognized by the Colorado Division of Housing as a Community Housing Development Organization (CHDO), SLVHC has been dedicated in its efforts to bring safe and affordable housing to Valley residents. Programs offered include: • Home Rehabilitation (REHAB): allows eligible persons to make the necessary renovations their home may need without facing up-front costs. • Down Payment Assistance ( D PA ) : a l l o w s qualified homebuyers to borrower up to one-half of their down payment need and/or closing costs. The DPA loan allows the borrower to help fund the down payment from traditional financing with only $1,000 coming from their own pocket. The remaining balance of the half-down payment need can come from other sources. These low-interest loan programs are in high demand not only because interest rates range from one to fi ve percent, but also because they have affordable monthly pay-
ments. SLVHC also offers affordable housing in the form of multi-family and elderly/disabled apartment complexes, High Valley Manor Apartments in Monte Vista and Casita de Luna Apartments in Alamosa. Both complexes include rent and utilities subsidies from Rural Development to ensure the qualified tenants only pay 30 percent of their income in rent. High Valley Manor is a multi-family housing complex with one and two bedroom units. A community room, laundry facility and beautiful landscaping are a few of the amenities of the complex. Casita de Luna complex offers on-site management, a community building, laundry facility and beautiful landscaping. These apartments are exclusively for the elderly and disabled. Many families in need of assistance are often not aware of the agencies that can provide services available to their lives. The SLVHC is working to inform community members of the assistance that is available to them through brochures, presentations, as well as the local newspaper and radio stations. Through teamwork and dedication, the SLVHC has improved the quality of life for many San Luis Valley residents. With hard work and ingenuity, the SLVHC will further assist in the enrichment of Courtesy Photos its communities. Above: Before. For more information, visit www. slvhc.com or call 719- 587-9807. Below: After a home in Rio Grande County received a new roof, paint and windows as part of the San Luis Valley Coalition’s Home Rehabilitation Program.
How to save enough for a down payment
A home is the most costly thing many people will ever buy. The process of buying a home can be both exciting and nerve-wracking. One way to make the process of buying a home go more smoothly is to save enough money to put down a substantial down payment. Saving for a down payment on a home is similar to saving for other items, only on a far grander scale. Many financial planners and real estate professionals recommend prospective home buyers put down no less than 20 percent of the total cost of the home they’re buying. Down payments short of 20 percent will require private mortgage insurance, or PMI. The cost of PMI depends on a host of variables, but is generally between 0.3 and 1.5 percent of the original loan amount. While plenty of homeowners pay PMI, buyers who can afford to put down 20 percent can save themselves a considerable amount of money by doing so. Down payments on a home tend to be substantial, but the following are a few strategies prospective home buyers can employ to grow their savings with an eye toward making a down payment on their next home. • Decide when you want to buy. The first step to buying a home begins when buyers save their first dollar for a down payment. Deciding when to buy can help buyers develop a saving strategy. If buyers decide they want to buy in five years away, they will have more time to build their savings. If buyers want to buy within a year, they will need to save more each month, and those whose existing savings fall far short of the 20 percent threshold may have to accept paying PMI. • Prequalify for a mortgage. Before buyers even look for their new homes, they should first sit down with a mortgage lender to determine how much a
mortgage they will qualify for. Prequalifying for a mortgage can make the home buying process a lot easier, and it also can give first-time buyers an idea of how much they can spend. Once lenders prequalify prospective buyers, the buyers can then do the simple math to determine how much they will need to put down. For example, preapproval for a $300,000 loan means buyers will have to put down $60,000 to meet the 20 percent down payment threshold. In that example, buyers can put down less than $60,000, but they will then have to pay PMI. It’s important for buyers to understand that a down payment is not the only costs they will have to come up with when buying a home. Closing costs and other fees will also need to be paid by the buyers. • Examine monthly expenses. Once buyers learn how much mortgage they will qualify for, they will then see how close they are to buying a home. But prospective buyers of all means can save more each month by examining their monthly expenses and looking for ways to save. Buyers can begin by looking over their recent spending habits and then seeing where they can spend less. Cutting back on luxuries and other unnecessary spending can help buyers get closer to buying their next home. • Avoid risky investments. Some times it’s great to take risks when investing, but risk should be avoided when saving for a down payment on a home. Traditional vehicles like certificates of deposit, or CDs, and savings accounts can ensure the money buyers are saving for their homes is protected and not subject to market fluctuations. Saving enough to make a down payment on a home can be accomplished if buyers stay disciplined with regard to saving and make sound financial decisions. MM16C616
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Real Estate Progress
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‘My homeowners insurance doesn’t cover what?’
SAN LUIS VALLEY— An insurance policy for your home or apartment is supposed to provide a sense of security. But before you get too comfortable, take time to speak to your agent or insurer to understand what is and isn’t covered in your homeowners or renters policy. “Don’t make any assumptions,” said Colorado Insurance Commissioner Marguerite Salazar. “Take the time now to learn about your homeowners insurance. Don’t wait for disaster to strike.” With that advice, the Colorado Division of Insurance (DOI), part of the Department of Regulatory Agencies (DORA), and the National Association of Insurance Commissioners (NAIC) offer these tips on homeowners insurance.
3. Exclusions Section 4. General Conditions There are different types of coverages under a standard homeowners or renters policy, and policies vary from company to company, so be sure you read and understand yours. Renters insurance is different from homeowners insurance in that a renters policy only insures the contents, not the building. A standard homeowners or renters policy generally provides coverage for either the actual cash value or replacement value of your property. Remember that with any claim, you’ll have to pay your deductible, as detailed in your policy.
cover damage caused by explosions due to causes such as a gas leak. If your neighbor is experimenting with unauthorized chemicals, damage to your home will be covered. However, if you are the one experimenting with unauthorized chemicals, the damage will not be covered. And if the explosion is due to terrorism, it will not be covered.
My place flooded, now what? Homeowners and renters insurance may cover losses resulting from water damage caused by a broken pipe or an upstairs neighbor. Read your policy carefully and check your policy’s exclusions. It will probably be listed under “water damage.” Homeowners and renters insurance DOES NOT cover flood losses. Flood insurance is available under a separate policy through the National I’m covered if someone Flood Insurance Program (NFIP). breaks in and steals my What about natural disasters like earthstuff right? Most standard homeown- quakes, tornadoes and hail? Damage caused by earthquakes is not usually ers and renters insurance policies cover stolen items (however, there may be limits within your covered in a standard homeowners or renters policy). Be aware that things such as jewelry, policy. If you want earthquake coverage, you antiques and art often have specific dollar limits need to purchase it separately. Earthquake insurthat can be far less than their full value. For ance will only cover you for what is stated in the these items, you may want to consider buying policy. It will not replace everything you lost. However… most earthquake policies only cover additional coverage. damage for earthquakes that occur naturally. This means that damage caused by earthquakes What if there’s a fire? A typical policy will issue payment to replace that may be attributed to oil and gas production, or repair anything inside a home damaged by including fracking, might not be covered. Unlike earthquakes and floods, tornado damflames, smoke, water, soot and ash. Don’t be surprised if your insurance company age is typically covered by standard homeowners asks for an inventory. The company is only re- and renters policies so there is likely no need to quired to pay for personal property you can prove purchase additional coverage. Damage caused by windstorms or hailstorms is you owned at the time of loss. The NAIC home inventory app mentioned above is an easy way usually covered. However, flood damage caused by storms is not. If you live in an area prone to to make sure you’re prepared. flooding, you should consider flood insurance, mentioned above, offered through the National Does insurance cover explosions? Standard homeowners and renters policies will Flood Insurance Program.
Avoid surprises by understanding your policy.
Are you prepared? According to an NAIC survey, more than half of Americans said they don’t have a list of their possessions. Without an accurate inventory, you may not have the right homeowners or renters insurance coverage, and you may forget to claim items lost in a fire or robbery. It’s also important to update your list every year. The NAIC offers the myHOME Scr.APP.book app to help you capture images, descriptions, bar codes and serial numbers of personal possessions and stores the information electronically for safekeeping. The app organizes information by room and creates a back-up inventory for email sharing. And you can share the inventory with your agent or insurer. Understanding your policy A standard homeowner or renters insurance policy contains four parts. 1. Declarations Page 2. The Insuring Agreement
Are drones covered? If your drone crashes into someone else’s home or vehicle or a person, the accident is your responsibility. Using a private drone as a hobby is generally covered under a homeowners or renters insurance policy. So if your drone crashes into your neighbor, your neighbor’s window or your neighbor’s car, the damage will typically be covered by your homeowners or renters insurance. If your drone damages your car, it may be covered by your auto insurance if you have comprehensive coverage. Generally, policies cover liability for an accident caused by your drone. Check with your agent or insurer to verify your policy includes this important coverage. In addition, look at the contents section of your homeowners policy, or talk to your agent, to see if your drone will be covered if it is lost, stolen or damaged. Also know that your insurance may not cover privacy violations, so remain mindful of privacy concerns.
What else isn’t typically covered? Other perils that are not usually covered include: war, nuclear accidents, landslides, mudslides and sinkholes. There may be others listed in your policy. Read your policy or speak with your agent or insurer for a complete list of excluded perils, and to purchase additional coverage you may need such as earthquake, flood or sewer backup coverage.
More information NAIC’s Insure U offers tips on preparing your home for severe storms and other disasters. You can also contact the Colorado Division of Insurance, part of the Department of Regulatory Agencies, where insurance experts can answer your questions and provide easy-tounderstand information. Call 303.894.7490 or 1.800.930.3745 (outside the Denver metro area) or visit AskDORA.colorado.gov.
Colorado median sales prices rise 10 percent
COLORADO – While the average price of a Colorado home remained fl at in December 2016 at $315,000, buyers and sellers experienced a 10 percent increase in the median sales price over the course of the year, according to the latest statewide housing report from the Colorado Association of REALTORS® (CAR). With a median sales price of $287,000 in December 2015, the past year featured a shrinking housing inventory punctuated by the lowest number of new listings in December 2016, and continued strong demand from a growing Colorado population. All of these elements shaped a consistent theme for the 2016 Colorado housing market. Single-family homes across the state held steady with a median sales price of $335,000, up 8 percent for the year and just 4.3 percent off of the 2016 high of nearly $350,000 in June of last year. The state’s townhouse/condominium median sales price rose to $260,000, up 2 percent from the prior month and up 14.3 percent for the year, reflecting a record median sales price for the townhomes/condominiums in the CAR market trends research. With just over 3,900 single-family home listings added in December, down nearly 30
percent from November 2016, there were 13,332 single-family active listings in the state, just 1,200 more than the total number of single-family listings added (12,153) in June 2016 alone. New townhouse/condo listings also reflected an annual low in December 2016 with 1,384 new units listed bringing the total active statewide listings to 3,349, down 40 percent from its July 2016 peak as well. Overall, there were less than 16,700 homes on the market in December across the state, the lowest total in more than a year. The combination of factors has driven inventory for both single-family homes and townhome/condominiums to a 2016 low at 1.9 months and 1.5 months, respectively (see charts below). While the Metro Denver Region has just over a 1-month inventory of single-family homes available, the area’s condominium/townhouse inventory is below a 1-month supply. There is a slightly higher supply of inventory in the state’s mountain (six-and-a-half-month inventory) and southwest region (nearly 7-month inventory). A market is considered balanced with a 4-7 month supply of inventory. The overall thin inventory across the state
also took its toll on the number of sold listings in December 2016, down 6.7 percent from November to 6,331 single-family homes and -7.1 percent to 1,984 condominiums/townhouses. With the exception of the mountain market, where median sales prices jumped 8.6 percent to $505,000, sales for both singlefamily homes and townhouse/condominiums remained relatively flat across the remainder of the state in December. However, when reviewing 2016 as a whole, all but the southwest region (down 6.5 percent in 2016) experienced increases for the year. • Mountain Region up 15 percent in 2016 • Metro Region up 11 percent in 2016 • Southeast Region up 9 percent in 2016 • Northeast Region up 8 percent in 2016 • Northwest Region up 6.5 percent in 2016 Despite the continued short supply of available homes for sale, the average number of days that homes stay on the market (DOM) edged up for both single family and condominium/townhomes before sale. The DOM for Colorado single-family homes in December was 59, its highest average since the first quarter of 2016. For condominiums/
townhouses it was an average of 50 days on the market before sale, also in line with its Q1 2016 DOM. Finally, affordability, a measurement based on the relationship between housing prices, prevailing interest rates and local income levels, also took a hit in the month of December. For the year, affordability for single-family homes was down 12 percent while the townhouse/condominium affordability index dipped more than 16 percent. The Colorado Association of REALTORS® Monthly Market Statistical Reports are prepared by Showing Time, a leading showing software and market stats service provider to the residential real estate industry, and are based upon data provided by Multiple Listing Services (MLS) in Colorado. The December 2016 reports represent all MLS-listed residential real estate transactions in the state. The metrics do not include “For Sale by Owner” transactions or all new construction. The complete reports cited in this press release, as well as regional reports specific to the Denver Metro, Mountain, Northeast, Northwest, Southeast and Southwest markets are available online at: www.ColoradoREALTORS.com/HousingStatistics
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Real Estate Progress
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Tax reappraisals due out in May BY TERESA L. BENNS
SAGUACHE COUNTY — Property owners here continue to have questions about property values in Saguache County and County Assessor Peter Peterson says he is working hard to try and answer those questions. Many of the concerned residents live in the Crestone area and Peterson says he is now running a column in the “Crestone Eagle” explaining the ins and outs of taxation and evaluation. New evaluations will be issued in May, so he hopes this will resolve some of the problems. Peterson answered questions on tax issues during a meeting with the Saguache Library District Board last November. The discussion centered around questions posed by board of director’s president Debra Westra’s Nov. 1 letter to commissioners. Westra wrote: “The work of the State Property Tax Division resulted in $2.5 million in taxable assessed value in 2012 and 2013 — properties that the assessor’s office [then under Jackie Stephens] failed to assess and collect revenue for all the taxing districts, including the county. Our concern is that it appears that, based on the new construction amounts for 2014, 2015 and 2016, the county has reverted to not diligently adding new construction.” Westra also asked commissioners and Peterson several questions in bulleted format. At that time Peterson explained that several taxes levied against the county in six figures — one of them from the San Luis Valley Rural Electric Cooperative for $360,000 — are responsible for the declining evaluations. The SLVREC tax deficit happened after the electric co-op moved off formerly occupied properties in the county. “Values have gone way down and places are selling for a lot less, especially in the Baca,” Peterson told Westra. “Reappraisals are done every two years and new construction is added every day,” he continued. This year is a reappraisal year. County Administrator Wendi Maez scans the construction permits in from the land use office and sends them to Peterson. Other sources for the permits include deeds and other documents. “People don’t understand the breadth, depth and scope of the assessor’s job,” he observed. This year there are 144 Baca Grande lots people won’t buy that have come back to the county. The reason the county cannot sell them is the high mill levy prevailing in the Baca, which rivals Boulder’s. In 2016, only 127 building permits were issued in the county. New — and old — construction At the November meeting Peterson admitted that his office is “still behind [on new construction] — we do the best we can. We’ve been short-staffed for many years and we’re working with commissioners, but money is
Photo by Teresa Benns
The low evaluation of empty pasture land is the reason given by one county official for fluctuating property assessments in Saguache County. tight.” Peterson said he hopes to add an additional staff member this year. Additional staff was suggested by the state four years ago. Since the meeting, Peterson says he has not yet caught up in this area but is working to hire additional help in the near future. He also says he is lobbying commissioners whenever he can to appropriate more money for his office, reminding county residents that this is one of the reasons Stephens came under state scrutiny. Well before the state investigation in 2011, Stephens had repeatedly requested that commissioners budget more money for the assessor’s office, but this never happened. He says state officials and the county’s auditors are carefully watching his office all the time and they need to stay current in order to avoid future problems. At the meeting residents insisted that not only has new construction not been assessed, but there are houses on which construction has been completed for decades that are not on the tax rolls. Commissioner Ken Anderson and Peterson both told those at the meeting that
makers will address the upcoming problems with the Tabor Act and the related Gallagher Amendment, now on a collision course that will likely impact state and local governments for many years to come. Gallagher provisions dictate that assessed residential values can constitute only 45 percent of the overall assessed values in Colorado. So when home values rise at a faster pace than commercial properties, this can result in the reduction statewide of residential tax assessments. This has happened over the past several years. Although this is the first such cut since 2003, the Tabor Amendment will not allow the assessment rates to rise again without voter approval, meaning the property tax cuts remain in place even if commercial property rates increase again. Some counties could see an 18 percent reduction in property tax values. This poses a problem because any time county schools experience a shortfall owing to insufficient taxes collected, the state must supply for the shortfall. Legislators are discussing Property tax reduction looming? This legislative session, Colorado law- how to best avoid the shortfall.
if they know of properties not on the tax rolls it is up to them to document and report them. Saguache Planning Commission member Bill McClure explained at the meeting that property evaluations are so low because most land in the county is classified as pasture land assessed at $38 an acre. Commissioner Jason Anderson added that 70 percent of Saguache County is federal land bringing in no taxes and precious little in PILT funds, intended to compensate counties for tax losses. However, as one county resident later pointed out, much of neighboring Chaffee County’s land is federal land as well and they do not experience the problems with tax evaluations Saguache County has experienced. Following the meeting, those attending said they still were not satisfied with the answers received and would continue investigating the matter. But reappraisals this year and pending legislation could change the focus of their concerns.
3 tips to help you prepare to sell your home According to Realtor.com, spring is the busiest and best season to sell a home. While a good home can find a buyer any time of year, homeowners might find the buyers’ pool is strongest in spring and into summer. The reasons for that are many, ranging from parents wanting to move when their children are not in school to buyers wanting to move when the weather is most accommodating. Because spring is such a popular time to sell a home, homeowners who want to put their homes on the market should use winter as an opportunity to prepare their homes for the prying eyes of prospective buyers. The following tips can help homeowners during the pre-selling preparation process. 1. Address the exterior of the home. Winter can be harsh on a home’s exterior, so as winter winds down, homeowners who want to sell their homes should make an effort to address anything that might negatively affect their homes’ curb appeal. A study of homes in
Greenville, S.C., from researchers at Clemson University found that the value of homes with landscapes that were upgraded from “good” to “excellent” increased by 6 to 7 percent. If it’s in the budget, hire professional landscapers to fix any problematic landscaping or address any issues that arose during the winter. Homeowners with green thumbs can tackle such projects on their own, but hiring professionals is akin to staging inside the home. 2. Conquer interior clutter. Clutter has a way of accumulating over the winter, when people tend to spend more time indoors than they do throughout the rest of the year. Homeowners who want to put their homes on the market in spring won’t have the luxury of waiting until spring to do their “spring” cleaning, so start clearing any clutter out in winter, even resolving to make an effort to prevent its accumulation throughout winter. Just like buyers are impressed by curb appeal, they are turned off by clutter. The Appraisal
Institute suggests homeowners clear clutter out of their homes before appraisers visit, and the same approach can be applied to open houses. Buyers, like appraisers, see cluttered homes as less valuable. In addition, a home full of clutter might give buyers the impression, true or not, that the home was not well maintained. 3. Eliminate odors. A home’s inhabitants grow accustomed to odors that might be circulating throughout the house. Pet odor, for instance, might not be as strong to a home’s residents as it is to guests and prospective buyers. Because windows tend to stay closed throughout the winter, interior odors can be even stronger come late-winter than they are during the rest of the year. A thorough cleaning of the house, including vacuuming and removal of any pet hair that accumulated over the winter, can help to remove odor. In the weeks leading up to the open house, bathe pets more frequently, using a shampoo that promotes healthy skin so pet dander is not
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Eliminating pet odors, including those associated with pets, can help homeowners prepare their homes for prospective buyers.
as prevalent. Open windows when the weather allows so more fresh air comes into the home. Spring is a popular and potentially lucrative time to sell a home, and homeowners who spend winter preparing their homes for the market may reap even greater rewards. SH172757
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Government programs help first time homebuyers BY LYNDSIE FERRELL SAN LUIS VALLEY— The San Luis Valley is one of many Colorado communities that struggles with rural living. There are however, many options available for families who are looking to find a program to help with the process of buying their first home. Among the many programs available, one government organization in the San Luis Valley has helped hundreds of families make the dream of owning a home come true. The United States Department of Agriculture offers several different types of programs geared towards helping communities like the San Luis Valley. Everything from business services to economic development, the USDA is one of the leading departments driven towards helping rural communities
succeed. The USDA offers well over 50 financial assistance programs that keep rural communities afloat during difficult times. One of the programs that is popular in the Valley is the single family home loan program for rural communities. The USDA considers any community with a population of 20,000 or less as a rural community and will help families that qualify move into a new, safe home for no money down. The program is built in a way that is almost guaranteed to help the family be successful in buying their first home. The process in which the USDA is able to offer the program is quite simple. The department looks for lenders who are willing to hold a basic home loan for a slightly longer period of time allowing the payments to be significantly less that the ones offered
through other banking and financial options. Loan specialists with the USDA worked with potential clients to not only build a sustainable budget for their financial future , but also advice on what they can do to work on their credit and financial history. According to the description of the loan, “Also known as the Section 502 Direct Loan Program, this program assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.” The USDA has a few requirements for potential clients to meet prior to being
accepted in the program, most of which can be met by a large number of families within the San Luis Valley. Loan specialists will help create a budget that is used to assure monthly payments are made on time. In the requirements section of the loan description it states, “A number of factors are considered when determining an applicant’s eligibility for Single Family Direct Home Loans. At a minimum, applicants interested in obtaining a direct loan must have an adjusted income that is at or below the applicable low-income limit for the area where they wish to buy a house and they must demonstrate a willingness and ability to repay debt.” For more information or to fill out the qualifying form, please visit www.rd.usda. gov.
Colorado sees continued growth in latest census
growing state for the previous four years, mostly from people moving into the state, fell out of the top 10 in growth due to a net outflow of migrants to other parts of the country. Its growth slowed from 2.3 percent in the previous year to 0.1 percent. Nationally, the U.S. population grew by 0.7 percent to 323.1 million. Furthermore, the population of voting-age residents, adults age 18 and over, grew to 249.5 million, making up 77.2 percent of the population in 2016, an increase of 0.9 percent from 2015 (247.3 million). Interestingly, the six faster growing states also had the top fastest job growth in the US comparing total non-farm June 2015 to June 2016. Colorado was also seventh in job growth. Natural Increase (births minus deaths) accounted for 30,300 of the change or 33 percent where migration accounted for 60,700 of the change or 67 percent of the growth. Historically since 1970 Colorado has averaged 55 percent of its growth from migration. The factors leading to population growth in the top three growing states varied treHomeowners unfamiliar with the appraisal at the ready can help appraisers make the most mendously. In Texas, natural increase and net migration almost equally contribute to process might not know if there is anything informed appraisal possible. SH172759 they can do to make the process go more smoothly. While certain variables involved in the appraisal process, such as location of the home and the value of surrounding homes, are beyond homeowners’ control, the Appraisal Institute recommends homeowners take the following steps before an appraiser visits their home. • Clean the house. A dirty home that is full of clutter will not make the best impression on appraisers. Dirty homes may be vulnerable to insect infestations that can lead to structural problems with the home. While a dirty home is not necessarily an indicator of infestations or a reflection of a home’s value, a clean home will create a stronger first impression with the appraiser. • Make any necessary repairs ahead of the appointment. Homeowners who have been putting off repairs should make them before the appraiser arrives. Homes with repairs that still need to be made will likely be valued less than similar homes with no such repair issues. Though repairs can be costly, investing in home repairs will likely increase both the appraisal and resale value of the home. • Obtain all necessary documents before the appraiser arrives. Homeowners who have certain documentation at the ready can speed up the appraisal process. Such documentation may include a survey of the house and property; a deed or title report; a recent tax bill; if applicable, a list of items to be sold with the house; purchase history of the home; and the original plans and specifications of the home. • Inform the appraiser about recent improvements. Homeowners can inform appraisers about any recent improvements to the home and the cost of those improvements. The value of home improvements with regard to a home’s appraisal value vary depending on a host of variables, but having such information
COLORADO – The Census Bureau released their July 2016 population estimates in December, and the Colorado State Demography Office provided the following review: (During 2017, the Census Bureau will release estimates of the 2016 population of counties, cities and towns, and metropolitan and micropolitan statistical areas as well as national, state and county population estimates by age, sex, race and Hispanic origin. Population estimates for Puerto Rico and its municipios by age and sex will be released as well.) The US increased by 2.2 million, an increase of .7 percent, and Colorado ranks 8th in the nation for total growth. The state’s population was estimated at 5,540,545, an increase of 91,726. In percentage terms Colorado’s growth rate between the years 2015-2016 was 1.68
and ranked 7th in US. The faster growing states were Utah, Nevada, Idaho, Florida, Washington and Oregon. Florida and Washington were the only states larger than Colorado with faster growth rates. Utah, the fastest growing state at 2.0 percent, increased by 60,000. Utah’s population crossed the 3.0 million mark, as it became the nation’s fastest-growing state over the last year. “States in the South and West continued to lead in population growth,” said Ben Bolender, chief of the Population Estimates Branch. “In 2016, 37.9 percent of the nation’s population lived in the South and 23.7 percent lived in the West.” Following Utah, Nevada (2.0 percent), Idaho (1.8 percent), Florida (1.8 percent) and Washington (1.8 percent) saw the largest percentage increases in population. North Dakota, which had been the fastest-
Steps to take before an appraiser’s visit
their growth. In Florida, almost 95 percent of their growth is from net migration. At the opposite end, California gets almost 90 percent of their growth from natural increase. Total population change between 2010 and 2016 is estimated at 511,221 which ranks 8th in the US behind Texas, California, Florida, Georgia, North Carolina, Washington, and Arizona. Colorado moved up one spot and is now the 21st largest state, inching above Minnesota. From 2010-16 Colorado ranked fourth in its average annual growth rate of 1.6 percent behind North Dakota, Texas and Utah. The Census estimates are in line with the forecasts of the State Demography Office, which indicate that Colorado is continuing to grow, but at a slightly slower pace. Eight states lost population between July 1, 2015, and July 1, 2016, including Pennsylvania, New York and Wyoming, all three of which had grown the previous year. Illinois lost more people than any other state (-37,508). Two states that had been losing population in the previous year, Maine and New Mexico, saw increases in population of 0.15 and 0.03 percent respectively.
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‘Sweating it out’ a plus in home building
SAN LUIS VALLEY — If the term sweat equity wasn’t coined by self-help housing efforts, it should have been. According to Investopedia, an online financial resource, sweat equity is the “contribution to a project or enterprise in the form of effort and toil. Sweat equity is the ownership interest, or increase in value, that is created as a direct result of hard work by the owner(s). Self-help housing in the Valley can be done through Habitat for Humanity or Community Resources and Housing Development Corporation (CRHDC) and fosters home pride in its participants as they work together to build affordable, efficient homes for themselves and their neighbors. CRHDC has helped families build their homes in 30 different counties through the mutual self-help program, which allows new homebuyers to take an active role in the construction of their own homes. In this program, participants contribute significant work toward the construction of their homes, bringing down development costs and producing a more affordable home. Each family contributes a minimum of 30 hours of labor per week toward the homes for approximately six to eight months. Habitat for Humanity At Habitat for Humanity, sweat equity is a new homeowner investing in his or her home or one for another family. It’s not a form of payment, but an opportunity to work alongside volunteers who give their time to bring the dream of homeownership to life. The idea behind sweat equity, families working side by side with volunteers to build their homes, goes back to even before Habitat for Humanity began in 1976. It’s based upon the philosophy, “What the poor need is not charity but capital, not case workers but co-workers.” Sweat equity with Habitat for Humanity can take many forms for partner families in the programs. It can mean construction work on their home or on a home for another family, cleaning up the build site, working in a Habitat ReStore, assisting in administrative duties or countless other ways of helping out. SLV Habitat for Humanity began in 1994 and has served nearly 20 families and households in the Valley. The San Luis Valley is one of the poorest regions in Colorado and there are many who are in need of decent, affordable housing. Habitat’s goal is to begin building two houses per year, about double the current rate. This can be done with the help of more local volunteers. Most of the Habitat homes are built with adobe bricks and make use of passive solar heating. These responsible building techniques
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Volunteers with Habitat for Humanity stand atop an adobe home under construction. help make housing truly affordable through lower energy bills. Families qualify based on their need for decent housing, willingness to partner with Habitat, and their ability to pay the 0 percent interest mortgage. Homeowner classes — learning how to manage a home or finances — also count as sweat equity. Families invest their time in the long-term success of their homeownership. Throughout the process of purchasing their home, Habitat partner families can earn sweat equity credit as they learn about their mortgage, insurance, maintenance, safety and more.
CRHDC Serving both rural and urban Colorado, CRHDC also addresses housing needs as well as self-sufficiency. Today, families and individuals receive full-cycle services when purchasing a home, including Home Buyer Education and Financial Fitness education. CRHDC started as a derivative of the Colorado Migrant Council in 1971 to address intolerable living conditions and the lack of adequate housing for both migrant and seasonal farm workers in rural Colorado. It has evolved into a full-scale housing and economic
development corporation serving both rural and urban areas – addressing housing needs as well as self-sufficiency. When CRHDC breaks ground on a new housing site, a construction manager oversees multiple construction sites at once, as neighbors-to-be provide sweat equity for one another’s homes. As many as 10 families work together insulating and caulking these homes, painting both interiors and exteriors, staining baseboards and hanging windows. They develop new skills and lasting relationships. Contact Habitat for Humanity at 589-8688 or CRHDC at 589-1680.
Home improvements that increase home value When granite countertops or shiny, stainless steel appliances beckon homeowners from the display areas of home improvement stores, it’s tempting to gear remodeling thoughts toward the items that will add flair and decorative appeal to a home. Even though most improvements add some measure of value, deciding which are the best investments can be difficult. Return on investment, often referred to as “ROI,” varies depending on the project. Frequently, the projects that seem like the best investments don’t bring the greatest rate of return, while those that seem like smaller projects bring substantial returns. Real estate professionals routinely weigh in with their expert advice, and homeowners can couple that advice with Remodeling magazine’s annual “Cost vs. Value Index” to reap the greatest financial impact from their renovations. The following were some of the projects that garnered the greatest ROI in 2015. • Open the door to improvement. Region by region across the United States, installation of a new steel door on the front of a home can have a large impact on the resale value of a property. The ROI ranges from 123 percent at the highest, to 86 percent at the lowest — which is still a considerable investment return for such a simple project.
Match the door’s style with the style of the house for the best value. • Turn up the kitchen heat. An attractive kitchen can encourage buyers to overlook some of a home’s less attractive components. In the kitchen, replacement countertops, wall color changes, new cabinetry and flooring offer the biggest ROI. • Dreaming of a new bedroom. Remodeling magazine also points to creating an attic bedroom to increase home value. The ROI of an attic remodel that adheres to code can garner an 83 percent ROI. • Home maintenance projects. There’s little good to improving the aesthetic appeal and functionality of a home if there are existing structural or maintenance issues, warn experts. Siding replacement, HVAC system repair or replacement, a new roof, and basement dampness prevention solutions can be smarter investments before other flashy remodels. Many buyers have a strict budget for a house, and those buyers may be more likely to buy a house with little or no maintenance issues. Such buyers will then upgrade the kitchen or baths themselves, according to Harvard’s Joint Center for Housing Studies. • Worthy window replacement. Angie’s List, a home services review and referral resource, has found that the average ROI
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Before remodeling, determine which projects will provide the greatest return on investment.
of new windows is 77 percent. The cost of If remodeling is on the horizon, homeinstallation and energy savings tend to offset owners should give strong consideration to at around the 10-year point. ROI before choosing a project. TF16C622
Wednesday, February 15, 2017
Real Estate Progress
Page 7
When renting can be a smart decision
Conventional wisdom suggests buying a home makes more financial sense than renting. In many cases, this is true. However, renting is sometimes a smarter approach than buying. As with any financial decision, all of the options and circumstances need to be weighed before jumping in. Making a major purchase requires doing your homework. The following are some reasons why renting can be more beneficial than buying. • You are young. The National Association of Realtors says the typical first-time home buyer is 31-years-old. People who are younger than that and uncertain about their futures should not feel pressured into buying simply because it is presumed to be the “adult” thing to do. Renting and feeling your financial way, which can include seeing how a job pans out or where your budget lies after paying off debts, might make more financial sense than buying. • The price-to-rent ratio is too high. Buying may seem like a wise idea, but it could be causing you to spend more than necessary, particularly if you check the price-to-rent ratio and find homes in your area are not fairly priced. Figuring a P/R ratio includes finding two similar houses (or condos or apartments) where one is for sale and the other is for rent. Divide the sale price of the
first place by the annual rent for the second. The end result is the P/R ratio. So if a home sells for $300,000, and there is a house around the corner renting for $1,200 a month, divide $300,000 by $14,400 (the annual cost of renting). The ratio would be 20.8. A rent ratio above 20 means the cost of home ownership will exceed the cost of renting. The higher the P/R ratio, the more sense it makes to rent instead of buy. • Home prices continue to rise. Some people find themselves being priced out of certain neighborhoods or cities. RealtyTrac recently analyzed median wage and home-price growth between 2012 and 2014, ultimately finding that, while the typical worker’s earnings increased a meager 0.3 percent during the study period, median house prices were up by 17 percent. Wages have not recovered from the Great Recession as quickly as home prices have, and some people may need to rent out of necessity. • A market shortage makes it harder to find an affordable home. The number of homes available for sale in many areas of the country has fallen below the number that realtors say is required for the market to be in balance. Therefore, even when a home becomes available, demand drives the price up to where it may not be affordable or fiscally smart to purchase. In such instances,
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renting may be the best option. • You don’t meet the buying criteria. Don’t buy a home based on market conditions or pressure from others. Instead, buy when you’re financially ready. This means being out of debt; having between three and six months of expenses in an emergency fund; enough cash for a 10 to 20 percent down payment on a fixed
mortgage; and when your mortgage payment will be no more than 25 percent of your monthly take-home pay, according to financial expert Dave Ramsay. Renting can be a smart move in many instances. Only when individuals are financially and emotionally ready to buy should they begin searching for their first homes. MM16C667
Are you playing REALTOR roulette? Are you a gambler? Maybe you are, and sometimes that comes out in your favor. Or maybe, it is just fun to take a little of your hard earned money and throw it at luck and see if it goes your way? Well no matter why or how you choose to gamble, we normally do not look at our homes or investments as something we want to gamble with. Our home is usually our largest investment, it is where we spend most of our time and often our money and we expect to get a return out of it someday. Mentioning time, time is also valuable and it seems we try to squeeze a little more out of each day. When you put time and money together we want to be efficient with both. With this said, finding a realtor to work for you is not where you want to spin the wheel and see if the ball lands on
your lucky number. Let me tell you a story. This story I think is more common for a lot of people who are looking for their first house. I will call her Katie for the purpose of the story. Katie decided it was time to start looking into buying her first home. Like most, she saw a house she liked and called the realtor on the sign. Well, the house didn’t work out, a little dejected she gave the search a rest. A couple months later, after calling a couple more realtors on signs she saw in yards, she decided not all realtors are created equal. Another month went by before Katie was ready to look again. This time she went off of a family referral, for all purposes, her father is committed to this realtor because he doesn’t like change. So, realtor #5 looked
up multiple houses, set up showings and out they went to view her new options. Unfortunately, those houses were not quite what Katie had told her realtor she was looking for. By this time Katie was finding some realtors are friendly, some realtors are not good at getting back to you and others are more worried about selling the house they have listed than representing you as a client. Determined, Katie did not give up, she knew she needed to find a house that fit her family and it was out there. She remembered an acquaintance through work who was in the real estate business and decided to give her a call. The first house was nice but the yard was too small. The second house had too many issues for Katie to take on, and the third house is still up
for debate. Overall, the last realtor Katie found listened to what Katie’s needs were, did not try to talk her into something she did not want, and Katie’s expectations for what she needed in a realtor was met. It is a big misconception that you must work with the realtor that has the property listed. Any realtor can show any property to their client. How do you figure out which realtor will be that fit for you? You decide. Remember, realtors are in the service business with education, experience and knowledge to help buyers and sellers navigate through this difficult process and they work for you. Just remember that time is very valuable and there needs to be a commitment between you and your realtor to communicate and navigate the process together.
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Real Estate Progress
Wednesday, February 15, 2017
Beginner’s guide to real estate investments
Purchasing a house or property is about more than setting up a home. Although quite a number of people buy real estate to establish their future, long-term abodes, many others recognize the potentially lucrative investment that lies within a real estate purchase. Despite the ups and downs of the economy, real estate has become a common investment vehicle — one that has plenty of potential for making big gains for those who are willing to put in the effort. According to the experts at Entrepreneur, even in a bad economy, real estate investments will usually fare better than stocks. Real estate also continues to appreciate despite the occasional economical slow-down. Like any other endeavor, there is a right and a wrong way to go about investing in real estate. Novices may not know where to begin their first forays into the real estate market as investors, even if they already own their own homes. Buying a property as an investment is an entirely different animal than buying a home to establish a residence. However, with the right guidance, anyone can dabble in real estate. • Establish financial goals. Before you even begin looking at properties or put forth the effort of meeting with an agent, you must determine what you expect from the investment. The days of buying real estate and flipping it for a fast profit may no longer be here. How-
ever, real estate can provide a steady stream of long-term income. Understand what you hope to achieve by investing. If it’s to become an overnight millionaire, you may be looking at the wrong investment vehicle in real estate. • Establish a plan. New investors who do not have a plan in place will likely spend too much or have more setbacks than others who have planned accordingly. When investing in real estate, it’s more about the bottom line than the property itself. According to Springboard Academy, a real estate academy for investors, look for motivated sellers and stick to a set purchase price. Try to make offers on a variety of properties that work in your financial favor. And know what you want to do with the property (i.e., renovate and sell, remove and rebuild, or rehab and rent) before you buy. Fit the house to the plan, and not vice-versa. • Start small. If this is your first time out there, stick with properties that will turnover quickly. Research areas in and around urban centers or close to transportation and shopping. A good starter property is a small house or a condominium that can be refurbished and then rented. Rental properties offer steady sources of income when renters are properly vetted, offers Investopedia, an investment resource. • Look at many different properties. Become an expert by learning as much as you can
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about what is out there. Attend open houses; look for vacant/unattractive properties; scour the classifieds in your local paper; or put the word out there that you’re interested in buying a property. Only look at properties that have motivated sellers, because then you’ll get closest to the price you want to pay. And don’t forget to research the area and the home
turnover rate for the specific area where you are looking. Don’t make assumptions that a property will appreciate without doing your homework. Real estate can be a worthy investment opportunity. With research, a plan and the right price, just about anyone can be a real estate investor. MM16C608
How to make relocation go more smoothly
People relocate for various reasons. Many relocate for professional opportunities, while others relocate to pursue their educations. And while some may relocate to enjoy a lower cost of living, others may find themselves relocating to satisfy their sense of adventure. Regardless of why a person is relocating, doing so without preparing for the move can make the transition that much more difficult. According to data from the U.S. Census Bureau, roughly 19 percent of the 35.9 million people one year and over who moved between 2012 and 2013 did so for a job-related reason. Relocating to a new city for a job is different than moving from one home to another within the same community. Relocating to a new city can be a life-changing event that requires planning and maybe even a little luck to make it work. • Examine your finances. Moving is expensive, and it can be even more expensive when moving to an entirely new city. If you are moving to pursue career opportunities but don’t yet have a job offer in hand, examine your
Did you know?
Real estate agents help buyers and sellers through the often complicated process of navigating the real estate market. Individuals not only want to find an agent with expertise, but also one with whom they have a strong rapport. By asking agents certain questions up front, prospective home buyers and sellers can find the right real estate agent for their needs and save time and money in the process. The following tips can help buyers and sellers find the right agent. • Find out how long the agent has been in the business, including how many homes he or she turns over on average. Think about using an agent who is a fulltime real estate professional, rather than one who only dabbles part-time. • Consider which geographic areas the agent handles. It’s best to find an agent who is familiar with a particular town, city or even subdivision. • Assess the agent’s personality and ability to remain calm under pressure. He or she can then extend that placid demeanor on to buyers or sellers who may be feeling stressed by the prospect of home ownership. TF16C629
finances and work out a worst-case scenario in the event that your job hunt takes longer than you hoped for. Unless you have a benefactor who can help you pay your bills and avoid debt while you look for a job, make sure you have several months’ worth of living expenses saved up before moving. • Research the job market. Certain cities have more opportunities for people in certain fields than others, so make sure the city you plan to relocate to is a place where you will have ample opportunities in your chosen line of work. Otherwise you might find yourself settling for a career you don’t like or relocating again to a job market more accommodating to someone in your field. • Research the real estate market. Before hitting the road and heading for your new home, research the real estate market in that area. Try to find out the average rental price via online forums or even online newspaper classified sections. Find out if people tend to live with roommates or go it alone in the city
you’re relocating to. If you are moving to a city where you know very few people or no one at all, consider becoming someone’s roommate. The right roommate can provide an instant social network and help you learn the ropes of your adopted home. If you plan to live alone and rent, recognize that many landlords will require a guarantor before renting to tenants with no income. • Don’t be shy. Unless you are moving to a place where you already have a built-in social network, you should expect to encounter some loneliness upon arriving in your new location. Resolve to make the most of all your new home has to offer by joining a social organization, connecting with your university’s alumni group or volunteering with local charities. If you have a job lined up, sign up for company-sponsored outings or teams. Relocating to a new city can produce mixed feelings of anxiety and excitement. Planning ahead and doing some homework can help you as you transition to your new home. EL166146
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