Is this a graph of stock prices, home prices or of people's belief in the good ol' USA?
Is this a graph of stock prices, home prices or of people's belief in the good ol' USA?
6/8/99: Today we are adding three lakefront homes and one riverfront property.
They are each irreplaceable locations. There is some concern over their prices.
Please bear in mind, that in an actual purchase contract,
you the buyer have precise built in protections.
In section 5 of a standard Colorado Real Estate contract,
it says that if the property does not appraise to at least
your purchase price, you can back out. Here is the exact wording:
Buyer shall have the sole option and election to terminate
this contract if the purchase price exceeds the Property's
valuation determined by an appraiser engaged by _________.
The contract shall terminate by the Buyer causing the Seller
to receive written notice of termination and a copy of such
appraisal or written notice from lender which confirms the
Property's valuation is less than the purchase price, on or before
______________________ (Appraisal Deadline). If Seller does not
receive such written notice of termination on or before the appraisal
deadline, Buyer waives any right to terminate under this section.
This is on page 2 of a contract after Section 4 on Financing Conditions.
The lender usually charges the buyer for an appraisal.
The buyer and lender agree on who is to be the appraiser.
It is best to have the owner of the property disengaged with this process.
You fill in the blanks as best fit your needs.
Many things can be negotiated.
The Appraisal Deadline is usually just a few days before
the planned closing date.
Low offers are usually not accepted. They can, however,
initiate a productive dialog between the interested parties.
Colorado Real Estate contracts are designed to make everything
as open and fair as possible.
You may write a fresh new offer, or encourage the seller to make
a counterproposal. It doesn't hurt to try and it can be fun! We have
customers who have done it more than a dozen times.
The question remains, what about those prices?
Well, how much is a share of Microsoft or a share of Yahoo really worth?
Real Estate in the Colorado Mountains is not a commodity.
Only a tiny fraction of the land is in private hands and only a fraction of that
is held by people willing to give up their deed. The urban pressures
up and down the Front Range of Colorado make the land near Grand Lake
more precious every year.
Just 50 years ago, our land here was not valued.
Owners of land that was flooded by Lake Granby
were repaid at the rate of 50 cents per acre!
A 160 acre homestead fetched you $80!
Much has happened since then and the same "forces" that
brought us to where we are today are as strong as ever.
The United States of America is the great country
you have always known it to be. Today, its value is
being recognized all around the globe.
That is why it now costs a lot for waterfront
property or a share of Yahoo.
Alan Greenspan calls it "irrational exuberance".
Perhaps it has something to do with the Spirit of our Land.
God Bless America!
Thank you for your attention.
Click here for --> deeper thoughts about VALUES.