Colorado House Finders

The National Association of Realtors has reported results from a 2007 Investment and Vacation Home Buyers Survey, conducted in March 2008. They found that sales of second homes, including vacation and investment home sales, still accounted for 33 percent of all existing and new home sales for 2007, down from 36 percent of transaction sin 2006. The combined total of such home sales did decline with the overall market in 2007.  In terms of type of Vacation home purchased, 59 percent were detached single-family homes, 29 percent condos, 7 percent townhouses or row houses, and 5 percent other.  In 2006, single family homes accounted for 67 percent of vacation-home sales, while condos were 21 percent. 

The typical vacation-home buyer in 2007 was 46 years old, had a median household income of $99,100, and purchased a property that was a median of 287 miles from their primary residence. In listing the reasons for purchasing a vacation home, 84 percent of buyers wanted to use the home for vacation or as a family retreat; 30 percent as a primary residence in the future; 26 percent to diversify investments; 25 percent to rent to others; 16 percent for tax benefits; 14 percent for use by a family member, friend or relative; and 6 percent because they had extra money to spend. 

Sixty-five percent of vacation home buyers purchased existing homes, while the remainder purchased new homes. Last year, 24 percent of vacation homes were purchased in the West. Vacation-home buyers plan to keep their property for a median of 10 years; 38 percent plan to keep their vacation home for 11 years or more.   

NAR’s 2007 Investment and Vacation Home Buyers Survey, conducted in March 2008, includes answers from 1,965 usable responses.  The survey controlled for age and income, based on information from the larger 2007 National Association of Realtors® Profile of Home Buyers and Sellers, to limit any biases in the characteristics of respondents. The Colorado House Finders’ Real Estate Consulting team is experienced, professional real estate agents with certifications in Real Estate, Lending and Appraising, who specialize in Denver Colorado real estate.  For access to Denver MLS listings , contact Colorado House Finders or www.ColoradoHouseFinders.com.

If you’re like most people, you are paying to heat the water for your home 24 hours a day, every day. The average homeowner pays to keep hot water hot even when they don’t need it. Traditional water heaters make for standby energy losses that cost you money. We do not leave our homes heated while vacationing. We only heat our homes when there is a demand for heat. Wouldn’t it be great if you could pay to heat water only when you need it? There is a way. Tankless water heaters provide continuous hot water, heating water only as you need it, thus providing greater efficiency and energy savings. An average, traditional 50-gallon water heater can supply about three to four back-to-back showers. With a tankless, you can enjoy endless back to back showers! Also referred to as instantaneous or demand water heaters, they provide hot water on demand for as long as you need it, but only as long as you need it.  

On Demand water heaters are 50% more efficient and give you a typical cost savings of 30 to 45% over the old style water heater. They provide endless hot water to multiple outlets at the same time without fluctuations in temperature, and they shut off automatically when the faucets are turned off.  Your family stands to gain additional protection, as well. As opposed to standard gas water heaters, tankless water heaters have sealed combustion which means no open flame or flue gas. Flue gas cannot enter your home. In addition precise water temperature control helps prevent the risk of scalding, especially important when you have young children in your home. 

The compact, wall-mounted units can be installed internally, externally or recessed, thus providing a significant space savings over a 40-gallon traditional water heater that requires approximately 16 square feet of space. Because of smaller size, they can be placed in close proximity to the kitchen or master bath, reducing wait time and energy consumption while waiting for hot water at the source.  With a life expectancy of 25 years (and easily replaceable parts that extend the life by many more years), as compared to 10 years for standard hot water tanks, tankless water heaters reduce landfill waste. Additionally, they provide lower emission of CO₂ gases into the atmosphere, adding to their green characteristics. 

Proper installation and maintenance of your demand water heater can optimize its energy efficiency.  Whether space, energy savings, or the need for multiple showers is your issue, a call to an AUTHORIZED SERVICE PROVIDER/INSTALLER is your key to success. Without quality installation, even the best equipment can fail to give you its best performance. Proper installation ensures you get all the capability possible from your instantaneous water heater.  The Colorado House Finders’ Real Estate Consulting team is experienced, professional real estate agents with certifications in Real Estate, Lending and Appraising, who specialize in Denver Colorado real estate.  For access to Denver MLS listings , contact Colorado House Finders or www.ColoradoHouseFinders.com.

Just the other day my partner and I where showing a new client homes in the Highlands neighborhood in Denver CO.  The Highlands neighborhood is a very desirable neighborhood in the Denver real estate market, due to the bungalow style homes, urban feel, local shops and restaurants and proximity to Downtown Denver.   

Unlike many real estate markets in Denver and throughout the country, the Highlands neighborhood is one of the magnet communities that have experienced double digit (13 percent) home appreciation over the last year.  The problem with the high appreciation in a market like the Highlands neighborhood is that you get inexperienced agents that are unknowingly providing their buyers and sellers wrong advice.  This wrong advice could lend itself to a home buyer paying more than the house is worth and unforeseen negative home appreciation for many years. 

My client that I spoke of in the beginning of the article was working with an inexperienced agent who did not understand the Highlands neighborhood. However, they were fortunately also working with one of the Colorado House Finders’ appraisal consultants well versed in the Highlands community. 

The situation with our new client occurred when their inexperienced real estate agent made an offer on a house in the Highlands neighborhood that was overpriced by another inexperienced real estate agent.  Not understanding the Highlands market, this agent did not have the competency to advise the client on a reasonable offer to make on the house.  As a result, they made an offer on the house that was thousands of dollars over market value.  Fortunately, this client sensed doubt in their agent’s competency and as a result contacted one our appraisal consultants.  Our appraisal consultant provided a thorough analysis of the subject property and the Highlands neighborhood that clearly illustrated the subject was significantly overpriced for the market.

You are probably asking yourself why the purchase would have occurred and how the property would have appraised?  (more…)