For quite some time you have heard our mantra for Exclusive Buyer Agency.  We represent only Buyers and never take listings. We believe that in the Traditional Real Estate offices there lay an inherent conflict of interest. If you pass a property and see a Real Estate sign you may be tempted to call and get further information. Remember that this person has a signed contract with the Seller of the home to represent them throughout the selling process.  How could they possibly represent you in the same transaction? The answer is simply that they cannot! They may legally circumvent the process by calling themselves a Transaction Broker and claim to represent neither party and just facilitate the transaction. But since they already have a signed contract with the Seller and have spent a lot of time and energy understanding the Sellers motivation for selling the property, can they simply throw up their hands and say “time out� I now won’t represent either in this transaction? How would you feel if you were the Seller and had divulged to someone who you assumed would be your fiduciary in this process. Or as the Buyer who is the newest member to this relationship. Can a Listing Agent simply forget about the relationship that they have established with the Seller and give fair and impartial dedication to both parties?   The Buyer Agency is more than just a business model or a cute niche marketing concept. Quite frankly it has become a movement; a movement has been slow to gain traction but is attracting more and more long time professionals who are accepting the ethical decision to represent only one side. The movement is also attracting attention from various governmental entities. The United States Department of Housing and Urban Development (HUD) produces a 49 page booklet titled: “Shopping for your Home loan�. On page 6 section IV: Shopping for a House, Role of the Real Estate Agent or Broker. Frequently the first person you consult about your home is a real estate agent or broker. Although these agents and brokers provide helpful advice, they may legally be representing the interests of the seller and not yours. You can ask your family and friends for recommendations.

It is your responsibility to search for an agent who will represent your interests in a real estate transaction. If you want someone to represent only your interests, consider hiring an “exclusive buyer’s agent�, who will be working for you.

  I couldn’t have said it better myself. Now that HUD recognizes the significance of Buyer representation the road to taking this movement to it Statutory conclusion seems more and more likely.

Just one more week until the opening of the ski season in Steamboat Springs.  In the 33 years that I have lived in the Yampa Valley we have seen very few bad snow winters. Two of those were prior to snowmaking capabilities at the mountain.  We still average around 350 inches of snowfall per year and have seen a couple of years approach the 500 inch level. This near predictability of solid snow levels sets Steamboat apart from most other Ski areas.

 

An item that most people either forget or unaware of is our elevation. Steamboat is one of the lowest ski areas in Colorado with the base area at 6,700 feet and the summit around 10,400 feet. This translates to about 3 weeks less winter on either end of the ski season. These three weeks are often put to good use preparing for the winter, getting in that last round of golf or simply enjoying the outdoors.

 

As the seasonal workers arrive, many are dismayed at the perceived lack of snow. This dismay turns rapidly to joy and exhilaration as the snow begins to accumulate. Then at times there may even be a bit of panic if we have another January like we did in 1996 when we had a record busting 217 inches in one month. That was one winter when everyone was ready for Spring to arrive. Usually by the third week in March we can drag the golf clubs out again and drive less than 40 miles to Craig.

 Of course having this certainty of reliable snowfall is of value to property values in Routt County. Knowing that the chances are above normal that you will always be able to experience great skiing and winter recreational opportunities is attractive to families, as well as travel agents, booking their winter vacation well in advance.

Some great news was just received as Congress has extended the $8,000 tax credit for first time homebuyers. The President is expected to sign the bill today. Not only have they extended the bill until the last day of April, 2010 but have expanded the possibilities to people who have owned their home for a minimum of five years.

 

First the extension of the $8,000 tax credit. Through August of this year approximately 1.4 million people nationwide have taken advantage of this program accounting for about 40% of all home purchases. The new stipulations are that the property must be under contract by April 30^th, 2010 and close by June 30^th, 2010. This is in line with most current lending practices of 45 days to process a mortgage loan. The credit will also be extended for one year for members in the military who have or will serve overseas for a minimum of 90 days.

 

Now to the Expansion of the tax credit to people that already own a residence. This credit will be for $6,500 and will include anyone who has owned their primary residence for at least five years. This tax credit is not eligible for individuals earning over $125,000 per year or joint filers earning more than $225,000. It will be eligible for homes priced under $800,000. Unfortunately it is only for primary residence and not for second or vacation homes.

 In the Routt County Real Estate market this should allow those who were saving up for the down payment a reprieve. If you are in this market it is vital that you contact your Exclusive Buyer’s Agent now to help guide you through this process to allow for a successful closing and advantageous tax credit. There are still important steps to take and the process can be slow and confusing at times. Let us help you understand what steps you need to take right now to take advantage of the extension.

Location Neutral Business is a term that has been used more frequently over the past decade. What is a Location Neutral Business? Since the onset of our electronic communication era and the advancement in internet services, it is now possible to conduct a variety of business anywhere in the world as long as you have connectivity. Several examples exist in the Yampa Valley as noted in the October issue of the Mountain Town News:

 

Noreen Moore, business resource director for the Steamboat Resort Chamber says that when she recently assembled a panel of speakers about location-neutral businesses, she rounded up 10 companies that collectively have $14 million payroll while employing 350 people. That, she points out, equals the employee base at the local hospital. In fact, while Ms. Moore has identified 400 such location-neutral businesses in the Steamboat area, she admits she’s sometimes at a loss to define the dimensions. “I feel like Louis Pasteur,� she jokes. “What the heck is this under the microscope?� Yet, of what she has found, Ms. Moore finds nothing but good for ski-anchored mountain towns. The location-neutral jobs tend to pay well, an average of $40,000 in the sampling of her panel. They add richness to the community fabric and they do not depend upon a commodity. Ski based tourism, despite upgrades in snowmaking, still relies absolutely on good snow. “The more diversity there is for these communities, the stronger they become� she states.

 

The diversity of businesses are also increasing as people figure out how to “have their cake and eat it too�.  Everything from Insurance companies, attorney’s software developers and yes, even manufactures. Smart Wool is just such a company. Established in Steamboat to take advantage of the abundance of local wool, their manufacturing is in China and distribution in Tennessee. The headquarters remain in Steamboat and continues to grow.

 As our technology continues to grow so will the opportunities. A couple of decades ago we were concerned that the economy was too reliant on tourism. It was called our “one legged stool�. We wrung our hands trying to figure out what we could do to diversify this economy. Little did we know that we had to do nothing, the beauty and recreational opportunities that brought most of us to this valley was the perfect magnet for these location Neutral businesses.  

Happy Independence Day weekend! I often think back to that small band of men who wanted independence for this new land. Do you think they had any concept as to what would evolve over the next 233 years? Could any of them ever have imagined the trials and tribulations this country would have to endure in the name of freedom? Yet there must have been tremendous foresight to craft such a document as our Declaration of Independence. The challenges that this young Country faced must have, at times, seemed insurmountable. These challenges, however, could not deter the passion and drive to craft governance dedicated to freedom for all of its people.

 

Challenges are again at the forefront as we tackle tough global economic times. It seems like every time we hear some positive economic news it is closely followed by some negative impact. Yet in every challenge there is opportunity. We wonder how some of our wealthiest entrepreneurs achieved their level of success. Primarily it was by analyzing available information and acting on this data. Was it risky? You bet! There were many failures along the way but the successes far outweighed those setbacks. I think of the Walt Disney’s or Ray Kroc’s (McDonalds) of the world and see high school graduates who had a dream or concept and acted to achieve. This truly is the American spirit.

 

In a local sense we also have our economic challenges. Both the City of Steamboat Springs as well as Routt County are furloughing employees after losses in revenues.  Our Real Estate Market shows a lot of inventory without a lot of successful sales.  The question is when to take these challenges and turn them into opportunities.  My sense is that we are slowly but steadily climbing out of our economic woes. Factory orders are on the upswing and housing starts have seen two months of gains. The Stock Market seems to have stabilized and the automotive industry is seeing signs of improvement. We have faced tough economic times before and have always rebounded stronger and with more resolve. I see opportunity in the current market. Interest rates are low, inventory is great, prices are coming down and sellers are motivated. This brew is ripe for someone to turn a challenge into an opportunity.

 I hope all have a safe and wonderful weekend enjoying friends and family. As you watch the fireworks displays on the fourth think about the spirit it took to build this great nation and about all the challenges that were turned into opportunities. You could be next.