Archive for March, 2010

Mar 23 2010

Candidates Forum this week

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The Chamber of Commerce sponsored La Veta Town Candidates Forum is scheduled for this week, Thursday night, 7:00 PM at the La Veta Community Center.  Liz started heading up this worthy election project several years ago. It has proven to be very successful and greatly  appreciated.  Questions will be presented from the audience.  A big turnout is expected for this year’s highly contested races.

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Mar 23 2010

More Snow

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It is 50 degrees here this afternoon but snow predicted again for tonight.  And forecast measured in feet, rather than in inches.  This one should take us well over our annual 250 inch average up at Cuchara.  Winter is  holding on but we still welcome the moisture.  Meadows will stay green and streams should run full this year.

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Mar 23 2010

Elements of Offer (Part 3)

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3.   Contingencies and Deadlines

Nearly every contract has some kind of conditions or contingencies.  They may be big hurdles like subject to sale of another property or more common issues  like subject to loan and appraisal.  The fewer contingencies the stronger the contract.   And in most states, these contingencies have dates and deadlines for compliance or termination of the contract.  Carefully review the deadlines for objection or resolution as they can effect the disposition terms of the contract or the earnest deposit.

4.  Inclusions and Exclusions

What may be shown as inclusions or exclusions in the Listing, may not be similarly reflected in the purchase offer.   The buyer may ask for anything.  Seller may say yes or no.  Leaving firewood for the buyer is quite different than leaving the tractor or vintage mirror and antique light fixture.   Allowances may sometimes be made for replacement substitutions.

5.  Closing Date and Possession

Sellers will nearly always want a quick closing and payment, but perhaps not a quick buyer possession.  Seller may need time to pack, move, etc.  Buyers typically want possession at time of Close and funding.  Neither party wants a double move or interim arrangements if it can be avoided. Sometimes a few days grace may be agreeable but more than that may require a negotiated daily rental or lease-back.  Closing and possession dates can easily become a value element of the contract. 

   Summation                                                                                                                                        So there you have it,  there are always different values  in the contract than just the stated contract price.  They can include timing, risk, cost and benefit.  These comments are only meant to represent some thought provoking issues and ideas but not legal advise for your own unique situation.  Real estate contract law varies from state to state.  Please always carefully discuss any contract with your own Realtor and your attorney or other professional advisor for proper guidance.

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Mar 22 2010

Elements of Offer (Part 2)

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1.   Contract Purchase Price

The stated price amount is of course key and  primary to consideration.  It might not be based on your wants or needs, but based on the other parties wants and needs.  Therefore the art of negotiations comes into play.  It is usually unlikely to end up too far above or below the  current market values.  Don’t focus just on the price, but also on the net sale proceeds available after any allowances, closing costs and expenses of sale.  And always consider the value of timing, liquidity and final closure.  Terms, contingencies and adjustments can materially impact the value of the stated Price.

2.   Earnest Money Deposit

The amount of earnest deposit is oftentimes a measure of the buyer’s capability and good-faith intent. In most instances, the deposit will be applied toward the down-payment at Closing. These funds reflect some degree of certainty that the buyer will close and also to hold the property for the buyer prior to Close.  This is like a Right to Purchase,  to sway the seller to take the property off the market and hold it for the Buyer, until Closing.  Under certain contingencies or defaults,  the earnest deposit might also be either refundable back to buyer or forfeited to the benefit of the seller.              (to be continued)

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Mar 21 2010

The 5 Key Terms of Offer (Part 1)

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Last week several purchase contract offers came in on the same property within 2 days of each other.  The Seller had the chance to review each before deciding.  And two had very similar contract prices and conditions.  I spent considerable time with my client reviewing the strengths of any offer besides the price.  Then just this week I saw a real estate article that covered the same subject and issues, as I had done.  I don’t presume to give legal advise but maybe providing these financial ideas will be a help to you too.

What are the value elements besides price, that make one contract preferable to another?  There are at least 5 major things you need to consider in evaluating an offer. You need to recognize these because the other party probably is.  Throughout the week I will offer my views on each of these 5 crucial issues.    Stay tuned.

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Mar 20 2010

16 inches snow

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IMG_1593 (WinCE)

 We measured 16 inches here in the Wahatoya Valley.  Must have been about two feet up at Cuchara.   Got to dig out these snowmobiles now.

IMG_1620 (WinCE)

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Mar 19 2010

Still Snowing

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First day of Spring  (or so they say).  Well its been snowing 8 hours now and shows no sign of letting up yet.  So I fired up the John Deere and have started snowplowing  our long drive.  Liz and the dogs have had a nice walk (I guess?) 

IMG_1573 (Small)

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Mar 19 2010

Interest Rate Outlook

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The Federal Reserve has recently renewed their commitment to keep the  FedFunds Bank Discount interest rates near zero for an extended period. And they also confirmed their decision to stop buying mortgage-backed securities at the end of March.  This cease in supporting MBSs has been feared to create an increase in home mortgage interest rates. But several new predictions point to rates only increasing very slightly this year, staying in the 5% to 5.5% range.  Lets hope they are right.  

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Mar 19 2010

Springtime?

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Beautiful warm weather these past few days.  Yesterday high of 65 degrees.  Today high forecast of 30.  And 8 to 12 inches of new snow.  Springtime in the Rockies.

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Mar 14 2010

Realtor Snow Day

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What a nice day.  I had an appointment with clients from Denver to show remote country property.  Located up in the higher elevations of Middlecreek.  And weather was expected to bring  more snow flurries.  The drive up was nice,  jumping several bunches of turkeys.IMG_1565_1 (WinCE)

  Getting cloudy and foggy as we unloaded snowmobiles and planned our excursion.  Had a great day and good riding too. IMG_1569_1 (WinCE)                                                                  Snow covered our sleds by load-up that afternoon.  Then went to town to discuss a Contract.  A fun day and fun way to provide full service realty.    IMG_1570_1 (WinCE)

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