CLOSING COSTS: Bankrate, Inc. last month released its 2006 National Closing Cost Survey results. Their findings showed New York State ($3,887) has the highest mortgage closing costs in the country, while Colorado ranked 23rd with an average closing cost of $2,988.

The survey provides a comparision of lender, title and settlement fees in 51 geographic locations, which includes cities in all 50 states and the District of Columbia. Each state listing includes their current ranking, compared to their 2005 position, a detailed breakdown of average closing fees for that state, and a printable worksheet for consumers to compare average costs to their lender fees.

To view the survey, go to www.bankrate.com/closing.

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VALUES: House prices, slumping after a five year boom, are projected to decline in half of the nation's metropolitan areas, with the Northeast, Florida and California among the areas hardest hit. This forecast is made by Moody'sEconomy.com, a private research firm. Moody's projects that the median sales price for an existing home will decline in 2007 by 3.6%, which would be the first decline for an entire year since the 1930's.

The report projects that 133 of the nation's 279 metropolitan areas would sustain price declines. This is quite a contrast from the last five years when low mortgage rates pushed sales to five consecutive annual records and prices in the hottest sales areas skyrocketed.

How does this affect our Durango market? As we've previously posted, much of our real estate economy is driven by 2nd home buyers, retirees and/or investors; a significant percentage coming from California, Arizona, Florida and Las Vegas. The areas have already experienced sales volume and price declines. As these markets slow and turn down the number of potential buyers of Durango properties will decline. Our market will slow (as we're already seeing.) Will our home prices decline? We think not significantly but we certainly will not see the value escalations as in recent years.

Look back at our October 2 post. Many consumers are migrating from the metropolitan areas to smaller communities and Durango is America's #3 "dreamtown."

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DREAMTOWNS: Seven of the 10 small cities that offer the best quality of life are in western states, according to a Bizjournal.com study that identifies American "dreamtowns."

Bizjournals' study was inspired by the heavy public interest in small-town life and business opportunities. More than 1.7 million people move from metropolitan areas to small cities or rural counties each year, according to the U.S. Census Bureau research.

The study identifies the small communities that would be most attractive to people considering such a move. The highest scores go to well-rounded places with strong economies, light traffic, moderate costs of living, first-class educational systems, and good access to big-city attractions.

The study group was the nation's 577 micropolitan areas, which are defined as regions that are economically dependent on central cities with 10,000 to 50,000 residents. All Metropolitan areas were specifically excluded from the report.

Our Durango is the #3 ranked "dreamtown" in the nation. It's hard to believe that Bozeman, Mont. and Jackson, Wyo. came in ahead of Durango. Bozeman is too cold and Jackson too crowded. Then again, 3 out of 577 isn't so bad. Maybe that's why Durango is called the "Hidden Gem" of the San Juans.

You can be a part of this spectacular area. Give us a call or email us. We're here to help. Visit our websites http://HomesInDurango.com and http://DurangoRealEstate.biz for more information on Durango real estate.

MOVE OVER SAN FRANCISCO: If someone were to ask you which Colorado downtown has as many restaurants per capita as San Francisco, your mind would probably flash to Aspen, Boulder, Vail, or, more likely Denver. But you would be wrong. It's Durango.

According to The Denver Post's Wednesday Food Section San Francisco has a restaurant for about every 180 residents; Durango has about 160 per resident. The Post devoted 4 pages, yes we said 4 pages, to covering several Durango establishments. Featured were Chez-Grand-mere, Ken & Sue's, Gazpacho, Seasons, Sushitarian, Mahogany Grill and the Durango Diner. Also the Cyprus Cafe and Jean-Pierre's Bakery and Cafe were critiqued.

While The Post did a terrific job in exposing the culinary side of Durango, they missed a few of our favorites:

** Patio dining at Olde Timers or Carver's Brewing Co.

** Randy's (best prime rib in town)

** Ariano's (wonderful Italian)

** The Palace (try the Chicken & Dumplings)

** Farquarhrts (where to locals go)

** Tequila's (the name says it all)

** Steamworks (have a brew and the cajun boil)

It looks like, in addition to skiing, hiking, fishing, camping, rafting, golfing, etc., we can now add another Durango favorite pastime - Eating!

For detailed information on our area visit http://HomesInDurango.com or http://DurangoRealEstate.biz

Take a look at www.DontItYourself.com. This website is put up by the Orlando Board of Realtors and offers a humorous look at the troubles people get into doing things for themselves. It's very clever. For instance:

THE TOP 10 THINGS YOU SHOULD NEVER DO FOR YOURSELF

#10 Heart Transplant

#9 Build Your Own Swimming Pool

#8 Defend Yourself In Court

#7 Asbestos Removal

#6 Hair Plugs

#5 Septic Tank Cleaning

#4 Root Canal

#3 Lasik Surgery

#2 Cremation

And the #1 thing you should never do on your own.

BUY OR SELL YOUR HOME ON YOUR OWN!

This is a fun site and it's not all about real estate.

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ENERGY REBATES: La Plata Electric Association customers who join the co-op's renewable energy generation program can do their pocketbook as well as the environment a favor. Eight residential customers of the co-op has qualified for a rebate for installing a renewable energy generation system since January 1, when the program began. LPEA pays $2 per watt of capacity for a photovolatic, wind or hydroelectric system. This is a rebate not a grant.

Customers who install renewable energy can win four ways financially. Based on a typical 2,000 watt capacity system, which costs around $20,000, they could earn:

1. The LPEA one-time rebate of $2,000 ($2 per watt of capacity up to $1,000 watts.)

2. A $2,000 tax credit from the federal government. The federal residential tax credit is 30 percent of the cost of the system, not to exceed $2,000.

3. A $5,000 rebate from Xcel Energy, which is buying unlimited renewable energy credits to meet state voter approved goals regarding alternative energy sources. (This program expires October 1 but might be renewed.)

4. If a homeowner's system produces more electricity than the family consumes, the electric meter spins backward. At the end of the year, if a customer's electrical generation outstrips use, the customer gets a check from LPEA. In the net-metering program, as it's called, the customer is selling the power back to LPEA.

An alternative energy system can be installed by the consumer or by a certified professional. Because the system must meet state electrical codes and the protocols of the LPEA we strongly recommend hiring a professional to install your system.

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OPEN SPACE: Durango has been singled out as one of the bright spots in conservation efforts to keep open space beyond the reach of development.

In a report released last Monday, the Colorado Conservation Trust cites approval by Durango voters last year of a half-cent sales tax, half of which is to be spent on open space, parks and trails. The levy is expected to raise $6.2 million annually for conservation purposes.

The report on conservation activities last year also noted the acquisition by Durango of the 177 acre Jacobs Cliffs property on Animas Mountain that is to become Dalla Mountain Park after
the owner of the land.


It feels good to live in and be a part of a community where the citizens care about maintaining the beauty that surrounds us. Thank you Durango!

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IT'S AUTUMN IN THE ROCKIES: This photo was taken Sunday from Little Molas lake north of Durango. There's snow in the high country and the fall colors are beginning to show. Winter is on the way. Now is the time to prepare for what we hope is a spectacular snow season. Here is a fall fire safety checklist for homeowners:

** Clean roof and gutters of pine needles and leaves to eliminate an ignition source for potential fires.

** Fall is the best time to trim branches when trees are dormant.

** Clean the inside of the chimney and clean branches away from the exterior chimney stack.

** Stack firewood away from the house. Locate firewood uphill at least 15 feet from the home. Do not stack firewood under the deck!

** Remove unhealthy vegetation. Trees and shrubs that are stressed, diseased, dead or dying should be removed so that they do not become a fuel source for potential fires.

** Choose surrounding vegetation wisely. Maintain a greenbelt (irrigated if possible) immediately around the home using grass, a flower garden, and/or fire-resistant ornamental shrubbery. An alternative is rock or other non-combustible material, which may be preferable if the house is made of wood or other flammable materials. Avoid using bark or wood chip mulch in this area.

** Make sure smoke detectors and carbon monoxide detectors are working properly.

Let's have a safe winter season and think "SNOW."

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MARRIED / UNMARRIED: Marriage comes with financial benefits, a fact sometimes best recognized by couples who don't or can't get married. Unmarried couples who buy property need extra protections. Marriage allows couples tax-free transfer of property and gifts, as well as some inheritance rights without a will. Same-sex couples who can't officially wed or heterosexual couples who are unwilling to, need to put extra protections into place when buying or sharing a property.

Several states are now offering rights for unmarried couples, while others are taking them away. So local laws need to be carefully considered when choosing a home ownership structure. Colorado is one of the latest states to propose that same-sex partners receive the same state rights as married couples. A vote is scheduled for November.

It's important to note that, even if Colorado permits the forming of a domestic partnership, these laws will be new and not necessarily recognized by the federal government. This makes joint ownership and financial planning more complicated. That's why it's best to work through these issues with an attorney and a financial planner. Unmarried couples need to decide how to title their home, or how to structure ownership, because different structures have different consequences.

Many unmarried couples choose the "joint tenants with rights of survivorship" structure, which allows for an automatic and probate free transfer to a surviving partner. For married couples, who can transfer assets to each other tax free, this structure makes sense. Estate taxes aren't owed until the second party dies. Unmarried couples, however, run the risk of being taxed twice.

For unmarried couples, many attorneys say that"tenancy-in-common," when coupled with a revocable living trust, is a more flexible way to title one's home. This structure allows partners to own unequal interest in the property, but there's no automatic transfer after one dies unless it's designated by the living trust. A properly funded trust, in which assets are titled in the trust, is a hassle-free way to leave property to a partner because you avoid probate.

This information is not to be considered legal advice. We are merely pointing out the need to be cautious in acquiring real property. Everyone, especially unmarried couples, should consult with their attorney to determine their best course of action. Call or email us if we can be of assistance.

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FRONTIER: Bobby Lieb, executive directive director of the Durango Chamber of Commerce, said Tuesday that Durango is among the cities being considered by Frontier Airlines for expanded service from Denver. Lieb's report was to a meeting of the La Plata Economic Development Action Partnership.

Frontier Airlines, which now carries 20 percent of Denver International Airport traffic, previously announced that it is acquiring 10 of the fuel efficient Bombardier Q400 model high wing turboprops to launch Frontier Express next July. Speculation has been that Frontier would use some of the planes to serve some of the state's mountain towns. Lieb's report was the first putting Durango in the mix. We hope he's correct.

Additional flights in and out of Durango obviously will make it easier for travelers to arrange and make connections to other parts of the country. Plus, with the high wing Bombardier the view of the trip over the front range will be even more spectacular. We'll keep you posted.

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THE WORD IS OUT! Durango is the darling of the glossies this year. Fresh on the heels of being named the nation's top mountain biking mecca by Outside magazine, our fair city is again in the headlines. In its September issue, National Geographic Adventure tapped Durango as one of its top "Amazing Adventure Towns."

The write up reads, "For multisport adventurers seeking a home that has it all, Durango feels like the center of everything. Head uphill and you're in the Rockies, hiking, skiing, and ice climbing in legendary alpine terrain. Hit the lowlands and you're in the Southwest, with year-round access to mountain biking, Anasazi ruins, and slot canyons. Hang around town and you'll discover Main Street's Wild West character and a thriving community euphoric about life in America's premier outdoor hub."

In a curious move, National Geographic then goes on to plug the Southern Ute Indian Tribe's Three Springs development, noting that it could be an opportunity for would-be "Amazing Adventurers" to break into the market. "The project means more affordable housing in a market brimming with $500,000 homes; it also means even tighter competition for jobs in the service oriented economy.

The magazine named a total of 31 adventure towns with Durango topping the list of "Great Outdoor Meccas." Those of us lucky enough to be living in this Colorado paradise know that National Geographic is "right on." If your not here but want to be, give us a call. We can answer all your questions about Durango.

Learn more about our area at http://HomesInDurango.com and http://DurangoRealEstate.biz.

WATER FACTS: Approximately 66% of the annual water flows from the Colorado watershed occurs during the late spring/early summer runoff. These water flows cannot be fully utilized by Colorado agriculture, communities and residents unless they are stored in reservoirs. Vallecito, Lemon, McPhee and Jackson Gulch Reservoirs store spring water flows from the San Juan and Dolores watersheds for year-round beneficial use in southwestern Colorado. Only 3% of the annual water flow occurs during the winter months of December, January and February. Without water storage in southwestern Colorado, there would not be stable water supplies for our agriculture, communities and residents during either the low-flow inter months or the dryer late summer months.

Colorado Water Table
& Water Terms

One acre foot of water equals...

~ An acre of land covered with one foot of water
~ 325,900 gallons of water
~ Enough water to supply a family of five for one year

One cubic foot per second (cfs) equals...

~448 gallons of water per minute
~1,983 acre feet (af) of water in twenty-four hours of water flow
~ 646,320 gallons of water in twenty-four hours of water flow

One million gallons of water per day (mgd) equals...

~ 3.07 acre feet (af) in one day
~ 1,120 acre feet (af) in one year

As we earlier posted, water allocation is normally controlled by ditch companies and measured in cubic feet per second (cfs.) The amount of water represented by one share in the ditch company can vary from company to company. A buyer should to be thorough in their due diligence when purchasing irrigated property to be certain there is enough water for their needs. That's where we can help. If you have questions or would like additional information about Durango real estate, give us a call or email.

WATER RIGHTS: We find that one of the most confusing things for newcomers to our area to grasp is Colorado water law. Since the 1860s, The Colorado Doctrine has defined the four essential principles of Colorado water law: 1. All surface and ground water in Colorado is a public resource for benefical use by publicagencies and private persons. 2. A water right is a right to use a portion of the public's water resources. 3. Water rights owners may build facilities on the lands of others to divert, extract or movewater from a stream or aquifer to its place of use. 4. Water rights owners may use streams or aquifers for the transportaion and storage of water. Practical application of The Colorado Doctrine means that water can be moved from where it is found to where it is needed based upon a priority system of "first in time, first in right." People, with water rights, who live along the river usually have diversions from the river to their lands. Away from the river, landowners are dependent upon irrigation ditches to deliver their water. The irrigation ditches are mutually-owned non-profit corporations established to deliver water to owners. Each ditch company has a board of directors, a secretary to handle the office business, and a ditch rider who controls the actual water flow. Operations are based on the by-laws of each ditch company and by Colorado corporate law. We'll discuss more water facts and issues in future postings. In the meantime, if you have questions or would like additional information about Durango real estate please give us a call or email.

**This is a re-post from April, 2006. Water issues are so important in our area we want to keep these topics current and easy to find.

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WINTER'S COMING: Everyone who pays a heating bill is looking for ways to same money. Electric Thermal Storage Heat (ETS) may be the answer. Here are some of the most common questions and answers about EST heat.

What is an ETS heater? ETS heaters are 100-percent efficient units designed to use off peak electricity to provide heat for less that half price of regular residential rates.

How do ETS heaters work? During off-peak hours, the ETS unit's heating elements covert electricity to heat, which is stored in high-density ceramic bricks. The bricks are surrounded by high efficiency insulation that allows them to hold heat for long periods. A fan evenly and quietly distributes the heat to you home 24 hours a day. Built-in thermostats allow you to easily maintain a desired temperature.

How may ETS heaters are required for a home? ETS heaters come in many sizes, from individual room units to whole home furnaces. This allows great flexibility in heating everything from a small room to the whole house or even a workshop. Cost and the number of heaters needed depends on many factors; size of the home, amount of insulation, number of windows, etc. A representative from the local electrical supplier can measure the home, factor in all the variables and make recommendations.

Most electrical suppliers offer economic incentives promoting the use of this energy saving device. For example, in our area, La Plata Electric offers a rebate of $40 per kilowatt. For a 40 kilowatt furnace, this is a substantial rebate.

Be certain to use a qualified electrician when installing a ETS unit. A list of local electricians trained in installing ETS heaters can usually be obtained from the electric supplier.

Mary and I hope this information is beneficial to you. Let us know if we can be of assistance.

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WHO REPRESENTS YOU? One of the hot topics facing the real estate world right now is the issue of agency. Some would have you believe that it really doesn't affect you, the buyer, and that not much has really changed. They are wrong!

The question of agency is important to you as a buyer because it it answers the most basic and fundamental question that you can ask a real estate professional: Who do you represent in this transaction?

Until that question is answered, you may be left with the impression that all agents who work with buyers actually represent those buyers, and that you have someone going to bat for you in your transaction. Bad assumption.

Lets say you meet a really nice agent, Joe, and share with him what you're looking for and spend several hours on a Saturday afternoon looking at properties. During your conversation you volunteer that you have $250,000 to spend and not a penny more. You find the "perfect" house listed for $250,000 but decide to submit an offer of $225,000. During negotiations, the seller's broker asks Joe how much cash you have and how high are you willing go. Guess what, Joe has that information.

Now, in Colorado unless you have a signed "Buyer Representation Agreement" with Joe making him your Buyer Broker, Joe is most likely acting as a Transaction Broker and has no fiduciary obligation to you. Joe, if he chooses, can disclose the financial information you've given him to the other parties seriously affecting your negotiating position. As your Buyer Broker, Joe cannot disclose any confidential information and must remain your advocate at all times. Which position, as a buyer, do you prefer?

Make sure the agent you are working with has agreed, in writing, to represent you as a "Buyers Broker." We have a specimen of Colorado's Buyer Representation on our website HomesInDurango.com. Click on "Buying a Home." If you have any questions or need further information give us a call or email. We're here to help you.

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E-PRO: When you're on the Internet, you don't have time to waste on endless searches for useful real estate information. Most people want to get things done quickly and without hassle. They appreciate dealing with an agent that:

** Answers e-mail promptly and professionally;

** Respects their on-line privacy;

** Offers home listings and other Internet tools to help find or market a home.

The solution - Select an e-Pro.

As an e-PRO I have successfully completed the e-PRO training program for real estate professionals. This program, endorsed by the National Association of Realtors, teaches real estate practitioners the nuts and bolts of working with real estate on-line: Web sites, e-mail, on-line tools, and most of all, what today's consumer really wants.

What does all this mean to you? There are several benefits in working with a certified Internet professional.

MORE PRIVACY - Are you reluctant to give our contact information through the Web for fear of being pestered or spammed. e-PROs understand. We've learned the Web isn't just a place to do business; you need information from someone you can trust.

That's why e-PROs respect your privacy. We respond quickly to your questions, but don't send you unwanted communication. And we protect your personal information.

LESS HASSLE - Tired of struggling to find information? e-PROs are more likely to have access to the latest Internet utilities, making your real estate life easier. For example:

** On-line Virtual Tours;

** Comprehensive neighborhood data;

** Extensive property listings and access to the entire MLS system;

** Immediate e-mail notification of just-listed homes meeting your criteria;

** Maintaining this Real Estate Blog keeping relevant Durango real estate information at your fingertips.

The result; you get more information, more easily. With electronic files you have less paperwork to deal with.

LESS EXPENSE - Our access to advanced technology can save your considerable expense. We have more tools to market your home, so you're likely to get a better price. With on-line tours you reduce in-person showings and the costs involved.

Relocating? Our tools allow you to research electronically, you can narrow your search to specific properties before you even arrive in town. Save on travel and search time.

Mary & I would like to offer you our assistance in meeting your real estate needs. Give us a call or e-mail. And remember - it pays to use an e-PRO!

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LIVING IN GOD'S COUNTRY - PRICELESS!











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TAXES: What's the difference between death and taxes? Death doesn't change every time Congress meets. But taxes certainly did in 1997, and the Taxpayer Relief Act of that year made a dramatic difference in the tax liability of those who sell their own homes. As it stands today, almost no one will owe any federal tax on profit made from the sale of a principal residence (defined by the IRS simply as the place you live most of the time.) To qualify, you must have owned and occupied the house as your main home for at least two of the five years before you sell. And that's about it..It won't matter how old you are when you sell. It won't matter if you once used the old one-time $125,000 over-55 exclusion. It won't matter whether you buy a replacement home or not. It won't even matter if you've used this new exclusion on another main home in the past, as long as it was more than two years before the current sale. A single owner can take up to $250,000 gain free of any federal tax ever. A married couple filing jointly can take up to $500,000. Even if only one of them owns the property, the full $500,000 is available if the non-owner spouse occupied the property for the required two years. The exclusion can include postponed profit on previous homes, rolled over under the old pre-1997 rules. This new tax break can be used over again on the sale of another principal residence, as often as every two years. You can even use part of the exclusion if you were in the house less than the full two years, if your move is required by one of three reasons: job transfer, health reasons, or some other unforeseen circumstance acceptable to the IRS. So few home sales will require federal tax payments these days that in most cases your sale won't even be reported to the IRS by the person in charge of the closing.

If you would like more information or have questions about Durango real estate, call or send us an email. We're here to help.

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CNNMoney.com: National home sales slumped more than expected in July, according to a trade group reading that showed the biggest supply of homes for sale in 13 years, coupled with weak prices. The National Association of Realtors reported that the pace of existing home sales was the slowest since January 2004. The glut of homes on the market has cooled off if not killed the white-hot home price gains of a year ago.

Locally, the Colorado Association of Realtors reported that home prices in La Plata County declined by 6% in the 1st quarter this year. While we don't expect drastic value reductions, there is no doubt that prices are softening as Sellers adjust to current market realities. On the positive side, the softer pricing outlook will bring more buyers into the market that many had found unaffordable. Plus, with the rapid escalation in values that we have seen in the Durango marketplace in recent years, our Sellers are not losing money.

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AND GOD SAID: "MOVE TO DURANGO!"









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TREES & GARDENING: Gamble Oak, Ponderosa Pine, Juniper and Pinion are some of the most common native trees in our area. Aspen trees occur naturally in the cooler, moist terrain of altitudes above 7,400 feet. Fir and spruce trees also thrive in the life zone and higher.

The many orchards of apple, peach and apricot trees throughout the county reflect Durango's history as a produce supplier for Silverton's miners. New varieties of trees are currently being planted and harvested in La Plata County. Although trees are beautiful and essential for wildlife, they may be a danger in the event of a wildfire. A clear open space between buildings and the surrounding vegetation provides a defensible perimeter when fighting a wildfire. Staff from the Colorado State Forest Service at (970) 247-4355 are available to consult with individual homeowners regarding forest stewardship and defensible space.

The State Forest Service can also provide recommendations for clearing an area of unwanted vegetation and information on ensuring the health and vigor of our forest. This includes advice on treating deceased trees, bard beetle, spruce budworm and dwarf mistletoe, which are among the more common diseases.

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BEARS: New to the area? Take a quick look at your new surroundings. If you have oak brush habitat surrounding your new home, a fairly common occurrence in the area, you may at some point be visited by one of our most curious, adaptable and intelligent residents - the black bear.

Black bears tend to frequent the Durango area when they come out of hibernation in the spring and in early August as they start packing on fat for their winter hibernation. Although they're here for their natural foods such as berries, oak acorns, plants, vegetation and the like they've also found that we humans provide them with a food bounty of our own - be it bird seed, fruit, pet food, barbecue grill scraps and trash.

Normally shy and secretive in the wild, bears have an amazing sense of smell and have learned to associate humans and their homes with food. Sadly, people unwittingly feeding bears NEVER ends well for the bears. Bears that pose a human safety risk or cause property damage in their attempts to get food are captured and moved away. If the same bear causes problems anywhere else after being relocated it is humanely destroyed by wildlife officers. Bumper stickers seen around town proclaiming "Garbage Kills Bears" are all too true.

Don't attract bears to your property through your carelessness with trash and other attractions. Safely store trash during the week and put it out the morning of pickup only. Take down bird feeders when bears are around or make them absolutely inaccessible to bears. Securely store or remove anything else that may attract bears to your home.

The responsibility of coexisting with bears lies with all of us that have chosen to live in bear habitat. Be part of the solution and be considerate of the welfare of our bears and your neighbors.

If Mary and I can answer questions or provide more information give us a call or email. We'll be happy to assist you.

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FICO SCORES AND YOU: A FICO score is a credit score developed by Fair Isaac & Co. Credit scoring is a method of determining the likelihood that credit users will pay their bills. Fair, Isaac began its pioneering work with credit scoring in the late 1950s and, since then, scoring has become widely accepted by lenders as a reliable means of credit evaluation. A credit score attempts to condense a borrowers credit history into a single number. Fair, Isaac & Co. and the credit bureaus do not reveal how these scores are computed. The Federal Trade Commission has ruled this to be acceptable.

Credit scores are calculated by using scoring models and mathematical tables that assign points for different pieces of information which best predict future credit performance. Developing these models involves studying how thousands, even millions, of people have used credit. Score-model developers find predictive factors in the data that have proven to indicate future credit performance. Models can be developed from different sources of data. Credit-bureau models are developed from information in consumer credit-bureau reports.

Credit scores analyze a borrower's credit history considering numerous factors such as:

**Late payments
**The amount of time credit has been established
**The amount of credit used versus the amount of credit available
**Length of time at present residence
**Employment history
**Negative credit information such as bankruptcies, charge-offs, collections, etc.

There are really three FICO scores computed by data provided by each of the three bureaus––Experian, Trans Union and Equifax. Some lenders use one of these three scores, while other lenders may use the middle score.

Frequently Asked Questions (FAQs):

How can I increase my score? While it is difficult to increase your score over the short run, here are some tips to increase your score over a period of time.

**Pay your bills on time. Late payments and collections can have a serious impact on your score.

**Do not apply for credit frequently. Having a large number of inquiries on your credit report can worsen your score.

**Reduce your credit-card balances. If you are "maxed" out on your credit cards, this will affect your credit score negatively.

**If you have limited credit, obtain additional credit. Not having sufficient credit can negatively impact your score.

What if there is an error on my credit report? If you see an error on your report, report it to the credit bureau. The three major bureaus in the U.S., Equifax (1-800-685-1111), Trans Union (1-800-916-8800) and Experian (1-888-397-3742) all have procedures for correcting information promptly. Alternatively, your mortgage company may help you correct this problem as well.

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DRIVER'S LICENSE: For our new residents, first of all WELCOME! Getting a driver's license: you must carry out within 30 days of becoming a resident. If you have resided in Colorado for 60 days, you are automatically considered a resident. Also, if you have purchased a home or business, have accepted employment or have registered to vote you are a resident.

The cost of a normal license is $15.60. For a motorcycle license it will cost a dollar more. For a commercial license it's $25.60 if you are only switching over from another state. A new commercial license is more.

New residents must apply for a Colorado title and registration for their vehicle immediately upon establishing Colorado residency. Application should be made in the County Motor Vehicle Office. In La Plata County the office is located in the Office Depot shopping center at 305 South Camino Del Rio. The following documents are required:

1. Your out of state title or current out of state registration.

2. A vehicle identification verification form (DR2087) completed by a law enforcement officer, a licensed Colorado motor vehicle dealer or a licensed Colorado emissions testing station.

3. A current and accurate odometer reading.

4. Proof of vehicle insurance coverage (insurance card, copy of insurance policy or letter from insurance company on the company's letterhead.)

5. If a lien exists on an out of state title, the lien holders name and address must be provided if not shown on the out of state registration.

Once you arrive at the county Motor Vehicle office, you will need to pay the title and registration fees. For out of state vehicles the car must have a VIN inspection. This can be done on the Motor Vehicle Registration. Your Colorado registration will be mailed to you if there are no liens filed against the vehicle. If there is a lien, the title will be mailed to the lien holder. Please allow 4 to 6 weeks for delivery.

The cost of getting plates and tags is determined by several different factors which include:

1. The kind of vehicle it is.

2. The weight of the vehicle.

3. How much you paid for the vehicle.

4. Where you bought the vehicle and how long ago.

For more information visit www.revenue.state.co.us/mv_dir/wrap.asp?incl=dlolist

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2ND HOMES: A recent study of 2nd home owners in the area suggests that many may one day become permanent residents.

The study, funded by a Southwest Colorado quasi-governmental group, found that the owners of 17 percent of single family dwellings and 55 percent of condominiums in La Plata County have mailing addresses outside the county. In the study 3,300 of the 3,600 second-home owners were mailed surveys. Eighty-five percent were returned.

The survey examined second-home owners plans for their properties and their feelings about their communities. Two results from the survey were particularly interesting.

First, many second-home owners hope one day to become permanent county residents. A slight majority said they would like to become full time residents or said they would like to retire in their second homes.

Second, 69 percent of second homes stand empty when their owners are away. The study suggests that most of the 31 percent that are rented out part time or full time are condominiums located near Durango Mountain Resort.

According to the survey results for La Plata County, the largest segment of second-home owners is in the 55 to 64 age group, and a large majority are couples with children no longer at home. Sixty percent of second-homeowners made more than $100,000 per year, though one-fifth made between $50,000 and 74,999 per year. While 45 percent are retirees, 46 percent are employed full time and 12 percent are self-employed.

We can't think of a better place to enjoy a second home than here in the beautiful San Juans. Give us a call or email. We'll help you find just what your looking for.

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ENERGY TAX CREDITS: Energy is a hot topic these days. Everyone is concerned about how much we're using, how much we need, how our future demands are going to be met and how much is it going to cost. Energy, particularly electricity, is a vital part of our lives. It fuels our economy. Our businesses are tied to its being reliably available. We depend on it for light and air-conditioning and to run our homes. We are constantly using more. In fact, the amount of energy Americans use doubles about every 20 years, according to Alliant Energy.

The electric industry is working to expand the amount of power produced to meet this growing demand. But simply increasing energy supplies is not all that needs to be done. We need to find ways to use less energy.

With that in mind, Congress included a variety of tax credits in the Energy Policy Act of 2005 (EPAct) signed by President Bush on August 8, 2005. These credits offer individuals and businesses incentives to invest in energy-efficient appliances, products and vehicles. The tax credits became effective January 1, 2006, and most will remain in effect through 2007.

Here are some of the new tax credits as they apply to real estate:

The law provides for a one-time tax credit for up to $500 in total for installing efficient new windows, insulation, doors, roofs and heating and cooling equipment in your home. That $500 cap can be reached in several ways, with 10 percent of the cost of exterior windows, insulation, doors and roofs being allowed. Up to $300 for the purchase and installation of an efficient air conditioner, heat pump, or water heater may also be included, as can up to $150 toward the purchase of an efficient furnace.

Improvements must be installed in or on the taxpayer's principal residence in the United States. Home improvement tax credits apply to improvements made between January 1, 2006 and December 31, 2007.

It is important to know that each one of these credits comes with specific requirements. But, by following the guidelines, you as an individual consumer can save significant money, save some energy and improve your home.

For more information on the EPAct tax credits, visit www.energy.gov/taxbreaks.htm or talk to your tax consultant.

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FLOOD INSURANCE: What is a Flood? Flood insurance covers direct physical loss caused by "flood." In simple terms, a flood is an excess of water on land that is normally dry. Here's the official definition used by the National Flood Insurance Program:

A flood is "A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or two or more properties (at least one of which is your property) from:

** Overflow of inland or tidal waters;

** Unusual and rapid accumulation or runoff of surface waters from any source;

** Mudflow*, or

** Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above."

* Mudflow is defined as "A river of liquid and flowing mud on the surface of normally dry land areas, as when earth is carried by a current of water..."


Who Must Maintain Flood Insurance?

Anyone who purchases a home in a designated 100 year flood plain AND borrows money from a Federally Insured Lender using the property as collateral must furnish evidence of flood insurance to the lender.

Also, as many of our friends and neighbors found out after the Missionary Ridge and Valley fires in 2002, flood insurance is vital in offsetting losses incurred as a result of the mud slides experienced thereafter.

We encourage anyone living and a designated flood plain or mud slide prone area to investigate flood insurance. It can be purchased through your local insurance agent and is underwritten by the national Flood Insurance Program, a Division of FEMA.

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CONSERVANCY: Everyone in Southwest Colorado owes his or her livelihood and well-being, either directly or indirectly, to our rich and diverse open lands. Few residents would be prospering today if there were no farms and ranches, no wildlife, no scenic open space and no tourist economy. It is vital that we work together to preserve our remaining open lands.

We all know that our population will continue to grow. The challenge, for all of us, is to accept and channel growth in a healthy way. The La Plata Open Space Conservancy guides growth by working in partnership with private landowners to protect our most productive and most beautiful lands from development, by means of donated conservation easements. This kind of land conservation costs the taxpayers nothing for land acquisition and management, but it provides enormous public benefits. Additionally, landowners who donate conservation easements may claim tax benefits that they can often use within the community. Land conservation is good business and it's good for business. (Sounds crazy coming from a Realtor, right?)

Last year twenty landowners partnered with La Plata Open Space to protect productive farms and ranches, wildlife habitat, scenic open space, archaeological sites, watershed and public recreation using conservation easements. Thanks to their gifts, these lands will not change next month, next year, or ever. They will continue to provide the myriad of benefits that make ours a healthy and beautiful community. These donations will inspire new conservation projects that will cumulatively benefit the community even more. Last year's donations raised the number of La Plata Open Space's protected properties to 146 totaling 17,375 acres.

Private land conservation isn't free, however and La Plata Open Space needs your help. Their operations are funded primarily by individual membership contributions, event proceeds and occasionally small grants. To be a part of this worthwhile movement send donations to:

La Plata Open Space Conservancy
P.O. Box 1651
Durango, CO 81302

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DURANGO: Yesterday we talked about the slow down in the national real estate market. In today's Durango Herald the Durango Area Association of Realtors released their second quarter statistics. The number of homes sold in Durango is down 40% from the same period last. The number of homes sold in Bayfield increased slightly reflecting the lower cost of housing in Bayfield.

The median home price in Durango continues to increase. But again, we believe, as the market cools and properties sit longer and longer sellers will adjust to be competitive. This is not all bad. It's hard to justify much less sustain a 20% to 25% increase in housing cost year after year. Sometimes the market just needs to take a breather.

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IT'S OFFICIAL: The National Association of Realtors (NAR) says we are now in a buyer's market in housing as a soaring supply of homes for sale means nearly flat prices and longer waits for sellers. The news came in the NAR's report for June, which showed that home sales fell to the slowest pace since January while price gains were the smallest in over a decade.

We noted in a previous post that sales in our area were slowing down with homes and land sitting on the market for longer periods. While we haven't seen a major reduction in pricing, it is only a matter of time until sellers recognize they need to be more competitive in their pricing given the rise in housing inventories should this trend continue.

While this may be a tough pill for sellers to swallow, it should be good news for those shopping for a home. We have recently seen many individuals squeezed out of our market due to the rapid price increases over the last 2- 3 years. That could be changing!

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BP: It is BP's policy to seek a Surface Use Agreement (SUA) with affected landowners for all new wells. In La Plata County, the company plans to drill new 80 acre infill wells from existing wellpads wherever possible. This modern approach to resource development will help keep impacts from BP's operations on neighbors to a minimum.

As part of this new approach, BP will offer owners of properties on which an 80 acre infill well is to be drilled a one-time, cash payment as part of the surface use agreement.

For the approximately 150 remaining 160 acre wells that BP has identified as suitable for development, the company will seek an agreement with the landowner that offers a one-time cash payment that is two and a half times larger than the cash offer for an 80 acre well on an existing wellpad. In developing a new 160 acre well, BP will most likely have to construct a new wellpad, access road and service pipelines.

Typically, such new wellpads disturb an area of about four-fifths of an acre. The company will discuss with the landowner possible locations for the wellpad taking into account factors such a ground contours and ongoing agricultural activities.

BP's landowner payment and surface use agreement are part of a process that is transparent and consistent for all landowners. In the event BP and the landowner are unable to reach an agreement, BP may find it necessary to seek a permit to drill through the state's regulatory process. In such cases, BP will still offer a cash payment, smaller than the original offer, to the landowner as a show of good faith.

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GROWTH & TRAFFIC: As our area grows so does our traffic problems. As a result, expect to see more roundabouts on our streets in the Durango area. Several of these circular traffic-calming devices are planned to be installed in the near future.

Later this summer or in early fall, a roundabout will direct traffic at Goeglein Gulch Road and Fort Lewis Drive. One was installed recently near Mercy Regional Medical Center and two more are planned there. And a roundabout has been proposed in Bayfield where U.S. Highway 160B and CR 521 (Buck Highway) intersect.

Roundabouts are generally installed to slow traffic but not stop it and provide for a greater capacity that traffic signals. They reduce collisions by slowing drivers and eliminating some conflicting traffic, such as lift hand turns.

Still, all that being said, they're annoying!

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PRICES: We've visited with real estate brokers we know from coast to coast. They all share a common view. Prices are coming down. San Diego is down 40% as is Florida. Los Angeles is even worse. Does this national trend affect us? Sure it does. Our real estate market, in large part, has been supported by the ability of people in large metropolitan markets to borrow on their home's equity to purchase vacation or investment properties in Durango and the surrounding area. This source of funding is drying up - fast. We're feeling its effect locally. Over the last several days we have received at least two dozen emails from brokers notifying us of price reductions on their listings. Because Durango is a unique and special place we don't foresee a major downturn here; but it is increasingly obvious that the days of 20% annual value increases are over (at least for now.)

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LIFESTYLE: This post is not about real estate, it's about lifestyle and why Durango is the perfect place to be. Last night Ricky Skaggs and his band, Kentucky Thunder, played to a full house at the Fort Lewis Concert Hall. What incredible talents they are; showcasing probably the best bluegrass music this area has ever heard. After Durango, they were headed to Denver. It's a guarantee that the people of Denver will not get as up close and personal as our local venue. We are fortunate, throughout the year, to have major artists in all genre' stop by Durango, share in our area's beauty, culture and allow us to enjoy their talents. Even the stars love Durango!

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NATURAL GAS & YOU: In considering the purchase of a property in La Plata County, it is important to investigate the real estate listing and prior deeds to find out the exact nature of mineral ownership interests. Often, different parties own the surface and the subsurface. This is commonly referred to as "severed estate" land. Most of the property in La Plata has been severed. Previous owners may have sold the mineral rights or granted right-or-ways or easements that are transferred with the property. Because of the long history of natural gas activity in La Plata County severed estates, easements and right-of-ways are common on property in our area.

Well established Colorado law recognizes that access to the mineral estate from the surface estate is necessary in order to develop natural resources. The law provides for access to the mineral estate by allowing "reasonable use" of the surface. The Colorado Oil and Gas conservation Commission (COGCC) rules require surface owner consultation and strongly recommend that a surface agreement be negotiated, in good faith, with a surface owner prior to granting a drilling permit. Over 99% of all wells in La Plata County have utilized surface owner negotiations to decide well locations, road use, road and pipeline construction, fencing, crop reclamation, etc. If a surface agreement cannot be successfully negotiated the COGCC rules allow for a surface bond to be posted with the state. The bond is intended to protect the surface owner from "unreasonable crop losses or land damages from the use of the premises" --not for perceived economic loss associated with mineral owner access.

There are hundred of miles of roads constructed as part of an oil and gas lease after companies negotiated and paid for easements with landowners, if required. Known as "lease roads," they are maintained by the industry but often may be utilized by residents living in the area. Companies do not routinely remove snow if access to facilities is not necessary. Generally, companies do repair road damage caused by construction as soon as weather and equipment availability allow. Most companies are willing to work with residents to make lease road conditions acceptable, however, there is no guarantee that a lease road will be accessible to passenger vehicles.

Due diligence is mandatory when purchasing any property and that's where we can help. Call or email us if we can assist you.

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CONSERVATION IN ACTION: After years of negotiation the City of Durango purchased a 177 acre tract of land on the side of Animas Mountain known as Jacob's Cliffs from Jake Dalla. Now known as Dalla Mountain Park, the land has many unique features including spectacular cliffs and fields of enormous boulders, small open meadows and impressive views of the La Platas and Perins Peak. The City will manage the property as a public park and has granted a conservation easement to ensure that it will always remain open even if ownership should change in the future.

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CONSERVATION EASEMENTS: A conservation easement (or conservation restriction) is a legal agreement between a landowner and a land trust or government agency that permanently limits uses of the land in order to protect its conservation values. It allows you to continue to own and use your land and to sell it or pass it on to heirs.

When you donate a conservation easement to a land trust, you give up some of the rights associated with the land. For example, you might give up the right to build additional structures, while retaining the right to grow crops. Future owners also will be bound by the easement's terms. The land trust is responsible for making sure the easement's terms are followed.

Conservation easements offer great flexibility. An easement on property containing rare wildlife habitat might prohibit any development, for example, while one on a farm might allow continued farming and the building of additional agricultural structures. An easement may apply to just a portion of the property, and need not require public access.

A landowner sometimes sells a conservation easement, but usually easements are donated. If the donation benefits the public by permanently protecting important conservation resources and meets other federal tax code requirements it can qualify as a tax-deductible charitable donation. The amount of the donation is the difference between the land's value with the easement and its value without the easement. Placing an easement on your property may or may not result in property tax savings.

Perhaps most important, a conservation easement can be essential for passing land on to the next generation. By removing the land's development potential, the easement lowers its market value, which in turn lowers estate tax. Whether the easement is donated during life or by will, it can make a critical difference in the heirs' ability to keep the land intact.

The Colorado Legislature is once again revising the state income tax credit for conservation easements to correct inconsistencies with federal law, and to remove the temptation to use the credit in ways for which it was not intended. The credit, and the ability to covert it to cash by transfer or refund, have made land protection attractive and affordable for landowners at all income levels. Resident taxpayers and nonresident landowners who are members of Colorado pass through entities may claim the credit. However, the provision of the current law that allows an easement donor to claim a credit of 100% of the first $100,000 in easement value has raised the question of whether some easement donors have "donative intent," (which is necessary to qualify for both the federal income tax deduction and the state tax credit.) The same provision has led some landowners to structure a series of easement gifts in order to take maximum advantage of the credit. This practice, while not illegal, has resulted in smaller conservation easements that are harder for a land trust to justify. House Bill 1354, to take effect in January of 2007, eliminates the "100% of the first $100,000" provision, and also clarifies who may claim the credit. It changes the formula for calculating the credit to a simple 50% of the value of a donated conservation easement, and it raises the credit cap from $260,000 to $375,000.

Source: La Plata Open Space Conservancy - 2005 Annual Report.

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BAYFIELD: The Bayfield Town Board has passed a measure restricting high-elevation development. The restrictions will promote safety and smart growth on the town's biggest hillside.

The measure, passed by the board, requires developers who want to build above 7,500 feet elevation to seek a waiver from the Town Board following a Planning Commission recommendation.

Developers of projects above that elevation would be required to submit plans for an access road, a cistern for emergency water supply, adequate water pressure and sewage, fire mitigation emphasizing defensible space, sprinkler systems for any uninhabited buildings and maintenance of the natural environment, vegetation, wildlife habitat and migration corridors.

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SENIOR HOUSING: The Volunteers of America announced in their spring newsletter that their affordable housing project for seniors is on track with a projected opening sometime during the late summer or early fall of this year. The project, located off of E. 32nd Street near County Road 250, houses 30 units that will be leased to individuals and couples who meet eligibility criteria. These criteria include being at least 62 years of age and meeting the income guidelines established by HUD: 1 person =$20,800 per year; 2 people =$23,700 per year. Applicants must also pass a criminal background check. Rent is calculated at 30% of the individual or couple's adjusted monthly income and the initial lease term is one year. Each unit is approximately 500 square feet with one small pet allowable per unit adding a deposit of $300. The units will be filled on a first come, first serve basis. Applications are currently being accepted. Applications can be obtained and dropped off at the Volunteers of American Thrift Store. For additional information contact: Anna Strobl, Director of Affordable Housing for the Volunteers of America Colorado Branch at (303)297-0408.

Thank you Volunteers of America for all you do for our community. The VOA is a national, nonprofit, spiritually based organization providing human service programs and opportunities for individual community involvement including the Durango Community Shelter, Southwest Safehouse and the Thrift Store.

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EWING MESA: Back in April we reported the agreement between Oakridge Energy, Inc. of Wichita Falls, Texas and Denali Partners of Minneapolis, Minnesota for the sale of 1,965 acres of land on Ewing Mesa southeast of Durango. In a press release Oakridge Energy, Inc., the owner of the tract, said the potential buyer, Denali Partners had terminated its option to buy after a 60 day inspection period. Denali Partners deposited $2 million in earnest money in April for a 60 day inspection. The earnest money has been returned, Oakridge said in its press release.

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BAYFIELD: We have previously noted the severe problem the Bayfield Sanitation District is having with its water treatment system. The bottom line is the town has outgrown its simple lagoon system. In March the state health department issued a moratorium on new building permits in the town after the Southern Ute Indian Tribe complained that Bayfield was polluting the Los Pinos River, from which the tribe and Ignacio draw water. The moratorium was lifted in April with some conditions attached.

Now the Town of Bayfield and the Bayfield Sanitation District are discussing the possibility of dissolving the sanitation district. "It's always a good decision to have a town be in control of its destiny," said Rick Smith, a Town Board member. "If you have another governmental agency in the town limits, that makes it very difficult to make decisions."

The problem, as we see it, is that, in addition to Bayfield, the Sanitation District also serves Gem Village and the surrounding area. If the sanitation system is taken over by the Town of Bayfield there needs to be measures adopted to ensure the residents and businesses in Gem Village are represented in the new entity that is created.

Dissolving the district would likely require a special election, possibly in February.

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IT'S OFFICIAL: Delta Air Lines will begin offering two daily flights between Durango and Salt Lake City starting July 1.

The official word came Wednesday during a conference call with airport officials and a Delta official, said Don Brockus, spokesman for the Durango-La Plata County Airport.

Delta had announced back in March that it would begin the daily flights. But it did so believing there was $750,000 federal grant available to help subsidize lost revenue. Currently, it's not certain the grant is available but, either way, Delta plans to offer the flights for as long as they remain profitable.

The two daily flights will be serviced by 50 seat planes bringing the total of daily outbound seats from Durango to 550.

Getting to Durango just got easier. Thanks Delta!

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MERCY MEDICAL: Our new hospital Mercy Regional Medical Center is set to open June 27. The facility will set the standard for technology and services in the region and beyond. We've already experienced the economic impact in our real estate market with an influx of both professional and support staff into the area.

The new medical center in Grandview is almost twice the size of the current facility on Park Avenue with 212,000 square feet compared to 111,432 square feet.

From the entrance lobby to the top floor, the center exudes high technology and, at the same time, a homey atmosphere. For example:

** Eight-two private rooms for patients have the comforts of home - a bed that folds into a chair, private bathroom, a flat screen TV and a fold out bed for a family member;

** A double decker pass through allows supplies to the stocked from outside the room in order to minimize disruptions to the patient;

** Soft lighting, pastel colors and halls decorated with paintings, photographs, statues and wall hangings.

The regional center sits on 60 acres and was designed to allow doubling of capacity. The hospital will built out; the adjoining medical office building will build up.

The medical center represents an $82 million investment by Catholic Health Initiatives, Mercy's parent organization, and the local community. Catholic Health contributed $70 million and local donors have come with the rest. The $12 million in local donations includes $1.4 million from one individual for a 64-slice CT scanner.

We salute Catholic Health Initiatives and the good people of southwest Colorado for their efforts and generosity. Its times like this that remind us that we would not live anywhere else. Give us a call or email us if you would like more information about our wonderful area.

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DURANGO: The Durango City Council voted Monday to extend water and sewer services to a developer proposing 64 "trophy homes" in the Animas Valley. The decision came after more than an hour of testimony from the public and comments by councilors. Exchanges back and forth were fierce at times and comical at others.

The decision to extend city services to Riverside Subdivision was made on the condition that the developer:

** Not exceed the 64 homes currently approved by the county;

** Set aside 78 acres in a conservation easement;

** Develop lots in such a way to increase contiguous open space lands;

**Pay to extend water and sewer lines and pay fees toward improving the ciyt's water and sewer plant.

The proposed subdivision sits on 240 acres in the Animas Valley, just north of the city limits. It is the same site where, a few years ago, the developer sought approval for an 800 unit New Urbansim development known as River Trails Ranch. This massive development was staunchly opposed by a group called Friends of the Animas Valley and failed to gain council approval.

In other matters, the council approved Three Springs Village I - calling for 883 homes and 81,561 square feet of commercial development on 148.6 acres in Grandview. They adopted an ordinance guiding development and re-development patterns in the subdivision.

Three Springs Village is part of a larger development proposal for land near the new Mercy Regional Medical Center. The bigger tract totals 681 acres and calls for as many as 2, 283 homes, apartments and other dwellings and 864,000 square feet of commercial space.

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1ST QUARTER STATS: The real estate sales statistics are in for the January 1 to March 31 period.

In-Town Homes:

Bayfield/Ignacio - 13 sold at an average price of $262,392
Durango - 30 sold at an average price of $459,950

Condos & Townhomes:

Durango - 29 sold at an average price of $296,966
Resort - 24 sold at an average price of $360,313

Land:

Under 1 acre - 7 sold at an average price of $162,942
Under 10 acres - 24 sold at an average price of $159,197
10 to 34.99 acres - 4 sold at an average price of $402,250
35+ acres - 15 sold at an average price of $406,600

Source: Durango Area Association of Realtors

Give us call toll free (800) 834-8445 or email us if you have any questions about Durango real estate, our economy or laid back lifestyle.

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TOP EMPLOYERS: Many of our buyers want to know about job opportunities in La Plata County. Here is a list of the biggest employers in our area and the estimated number of employees in 2005:

1. Southern Ute Indian Tribe - 1091
2. Mercy Medical Center - 750
3. Durango School District 9R - 660
4. Fort Lewis College - 650
5. U.S. Government - 459
6. Wal-Mart ****
7. La Plata County - 400
8. CO State Government - 238
9. City of Durango - 270
10. Durango Mountain Resort - 125 to 690

****Information is not available

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BAYFIELD UPDATE: Concerned about the capacity of Bayfield's overburdened sewer system, Interim Town Manager Joe Crain has recommended that the Town Board put a moratorium on new annexation of residential property. The recommendation comes on the heels of a nearly month long moratorium on new taps and construction permits after the Colorado public health agency concluded that the town's sewage treatment plant had exceeded capacity.

According to Crain, irrigation water is seeping into underground sewage pipes in the Bayfield Sanitization District and thereby increasing the load at the plant. Crain said, there is "no doubt" that the sewer system will exceed capacity if the water continues to infiltrate the system. Several residential developments are currently underway. Until the town knows it can meet the demands of future houses in these six developments, it should not annex new property for residential use, Crain said.

Obviously, affected developers and builders believe the recommendation is an overreaction on the part of the town while the Town Board feels it needs to be proactive in addressing the issue. Growing pains, growing pains, growing pains. Stay tuned - we'll keep you posted.

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RURAL LIVING: As in-town and close to town prices have steadily increased, rural living offers many advantages including privacy, limited traffic and noise, and often a better value for your real estate dollar. You should know, however, there are a number of important differences in the level of services and access.

Over 900 miles of county roads branch throughout La Plata County. Only about 700 miles of that are maintained. Some of these roads are paved but most are gravel, and gravel roads generate dust, a consideration in the selection of your homesite. On gravel roads, you may also expect small rocks to be kicked up by other vehicles, sometimes causing chipped or cracked windshields. In most of our subdivisions lying in the county, the roads are private and the residents are responsible for road maintenance and snow removal. Before purchasing a property you should determine if the roads are public or private. We can help with that. If the roads are private, be sure to ask the Homeowners Association how residents are charged for maintenance and how often it is performed. Here, we can also assist you.

Emergency services such as law enforcement, fire and ambulance are provided to most areas of the county, but rural residents must understand that response times will likely be longer than in the city.

Living in La Plata County we enjoy a true four season way of life. In the winter expect to deal with snow and ice and consider owning a four-wheel-drive or all-wheel-drive vehicle. The La Plata County Road and Bridge crews do a heroic job of keeping roads clear of snow during winter storms. Main county roads are vital to public safety and the smooth flow of traffic and therefore they receive priority maintenance. These include County Roads 240, 501, 141 and 310/318. During winter storms, many of these high-traffic roads are plowed several times a day. In subdivisions, Homeowner Associations employ private contractors to conduct snow plowing and removal. Of course results vary, but in most subdivisions residents are able to carry on with their lifestyle. Winter snows bring a lot of work with them but they also bring beauty, quiet and most of all moisture. The longer you live here the more you appreciate the saying "Think Snow."

Call or email us if you have questions about living in our wonderful area.

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HURRAY!: In an effort to keep up with other ski areas around the nation, Durango Mountain Resort has announced a $35 million project to construct a 130,000 square foot lodge at the base area. La Plata County commissioners unanimously approved plans for the six-story structure to be built on the southern side of the existing main mall plaza. Plans for the lodge and surrounding area include retail space, a restaurant, a day spa & salon, fitness center, pool and hot tubs, an outside bar, a stage and 37 in-lodge condominium units. The restaurant will replace Purgy's, a popular base-area bar and restaurant. Under the approved plan the resort will update the plaza itself, doubling it in width.

To be demolished: the current lift ticket office, the administration building and maintenance buildings in the existing plaza. In addition, the level of the existing skier drop off area will be raised up to meet the new plaza. The existing Purgy's won't be razed until the new building is complete, an estimated two years from this fall.

The project is part of the resort's 25 year plan initiated in 2004. In total, DMR plans to build 1,649 living units and 400,000 square feet of commercial space in six villages along both sides of U.S. Highway 550.

Skier services will not be disrupted during construction according to DMR's CEO Gary Derck. Derck said public feedback, including reactions to the future of Purgy's, has been positive. "It's been what our locals have asked for since we got here," Derck said. "All in all," he said, "I think people want to see it come up to snuff with other ski facilities."

Gary, as locals, we agree and are excited about the future of our ski area. Just one thing, is it ok for us old timers to still call it "Purgatory?"

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CRIME: It's hard not to laugh when out-of-town buyers ask, "Does Durango have a crime problem?" They obviously are from the "big city." The Durango Police Department released their arrest totals for 2004. Take a look:

1 arrest for Manslaughter by negligence (auto wreck)

2 arrests for Rape

6 arrests for Motor-vehicle theft

54 arrests for Fraud

85 arrests for Vandalism

86 arrests for Drug violations

445 arrests for DUI

In our opinion Durango is about as close to "Mayberry" as you can get. Our biggest problem is that some of our citizens believe that stopping at a red light is optional.

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INDIAN LANDS: The reservations of the Ute Mountain Indian Tribe and the Southern Ute Indian tribe, both sovereign nations, are partially located within the boundaries of La Plata County. The Southern Ute Reservations is a checkerboard reservation, which means that there are pockets of private land interspersed among tribal owned property within the exterior boundaries of the reservation. One question we are often asked is "How can there be privately owned land within the Indian reservation?" Well, in 1895 Congress passed the Hunter Act which gave the Indian the right to homestead 160 acres of land, improve the land and eventually gain vested title. Many of the Southern Utes took advantage of this opportunity. Once vested in title they were free to sell, lease or otherwise convey the land as they chose. As time passed, ownership of these homesteads changed, parcels were sold off and today we have many non-indians living within the boundaries of the Southern Ute Reservation. An interesting note is, while many Southern Utes elected to "homestead" the land, the Mountain Ute Indian Tribe preferred to continue their communal lifestyle and moved their tribal headquarters to Towac west of Cortez.

The Southern Ute Indian Tribe is one of the largest employers in La Plata County and a vital contributor to our economy and community. Tribal headquarters are in Ignacio. For more information concerning tribal lands, contact the Southern Ute Indian Tribe at (970) 563-0100. Or, if you prefer, give us a call or email. We'll get the information you need and get back to you.

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PROPERTY & LAND USE PLANNING: There are many issues that may affect the use and enjoyment of a homeowner's property. It is important to research these items and local land use regulations before purchasing land. As required by Colorado state law, La Plata County has regulations regarding subdivision of land titled "The La Plata County Land Use Code" (LPLUC). The regulations, along with district land use plans, help landowners and the county guide growth in a way that reflects the community's vision of the future. Assistance and information regarding these regulations and district plans may be obtained from the La Plata County Planning Department at (970) 382-6263.

Not all parcels are suitable for building, development and/or subdivision. Geographic features such as steep and unstable slopes may limit the development potential of the land. It is important to check with the County Planning Department and Building Departments to determine a parcel's land use classification and whether the parcel may, in fact, be developed.

Many of our subdivisions have covenants that contain certain requirements, and some have a homeowners' association. Before purchasing a property, determine if it has a homeowner's association and learn about its activities and role. As of January 1, 2006 Colorado law requires the seller of a propery governed by a homeowner's association to furnish a buyer with certain documentation that includes the association covenants, by-laws, rules & regulations, financial statements, minutes of the last annual meeting, and minutes of the previous board meetings.

When you purchase a property, you may be provided with a plat or map, but unless the land has been surveyed and pins placed by a licensed surveyor, please do not assume that the plat is accurate. Have the seller either locate the pins or have pins set by a surveyor. Copies of recorded subdivision plats are available at the La Plata County Clerk and Recorders Office. Some plats have special restrictions or requirements that should be studied and understood. For expample, they may include details such as where a home may be placed on the property, size and type of outbuildings, fences and other important information.

As you can see, the purchase or sale of real property can be an involved process with many facets to consider. Mary & I are here to help. Give us a call or email if we can be of assistance.

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BUILDING AND LOCATION: La Plata County has building codes and fire codes outlining the necessary design and construction of structures, and building permits are required for all new construction. Contact the La Plata County Building Department at (970) 382-6250 for information about building permits and inspections.

When considering the design of your "dream home," certain architectural styles may be more desirable than others due to climate, regional conditions and/or visual compatibility with your surroundings. Selecting an unobtrusive location for a building site, house colors that blend into the environment and downcast exterior lighting help minimize the visual intrusion of population upon the natural beauty of the land. Because much of la Plata County is mountainous, certain natural geologic hazards exist. Remember to consider geologic hazards in the design and siting of your home. We encourage you to contact the Building Department to learn more about geologic hazards in La Plata County.

Low-sloped roofs may require shoveling in heavy snow years. Steep-sloped metal roofs shed snow well and are desirable in snow country. Avoid roof designs that deposit snow onto decks, entry ways or driveways. Snow may harden like concrete in these areas if not removed promptly.

The sunny location of a building site in summer may be a shaded deep-freeze in the winter causing great snow accumulation and icy conditions. Likewise, a shaded exposure or steep slope for driveways and private roads makes access and maintenance difficult. Be certain to study your land in all weather conditions to determine the most desirable homesite and access.

Living adjacent to public lands may be a mixed blessing. Use by all types of recreationalists may bring the inevitable hiker, biker, picnicker, camper, hunter, fisherman, snowmobiler and others onto your property. While most people are sensitive to private property, be aware that not everyone respects the rules. When considering a piece of property, be sure to check out water quality, road maintenance, compatibility and any other issues that might be important to you. Part of our job in representing you as your real estate broker is to help gather any information you need to make an informed decision. Call or email us if we can be of assistance.

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HOME PRICES CLIMB: As developable land becomes even scarcer in Durango, the real estate market has pushed to new heights during the first quarter of 2006, with the median price of a home ringing in at $394,000. That's up 27 percent from the same three month period a year ago, according to data compiled by the Durango Area Association of Realtors.

Other highlights when comparing the first quarter of 2006 to 2005:

* The median price of a county home on fewer than 35 acres jumped 29 per cent from $266,450 to $345,000.

* The median price of a Bayfield home shot up 32 percent from $212,750 to $280,000.

* Total dollar volume of Bayfield homes sold almost quadrupled from $900,500 to $3.4 million.

* The median price of a townhome in Durango increased 11 percent from $254,180 to $282,900.

* Durango saw a 23 percent decrease in the number of homes sold.

We have a shortage of developable land in Durango proper causing upward pressure on prices. Many families and first time buyers are heading to Bayfield where prices are in a lower range.

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AGRICULTURE: People moving into the Durango area often find the lifestyle to be far different from other parts of the country. For instance, Colorado is a "right-to-farm" state, which means that agricultural enterprises have certain rights and privileges afforded to them, and La Plata County has regulations to support, protect and assist in the maintenance of agricultural production. Residents who choose to live among the many farms and ranches of La Plata County should be aware of these protections.

Farmers, particularly during the planting and harvest time, frequently work from early in the morning until late at night running farm equipment such as tractors and combines. These operations cause dust, odor and noise. Farmers must burn their irrigation ditches to clear them of debris, grass and weeds in preparation for the irrigation season and may need to access their ditch easements through your property.

Chemicals are often used in agricultural production. With aerial and ground spraying of crops, there is the potential for small amounts of chemical to drift onto neighboring properties. The La Plata County Extension Office at (970) 247-4355 can supply information on chemicals commonly used.

Irrigation systems have enabled a diversity of agriculture with higher yields than dry land farming. Non-irrigated or untillable lands, both private and public, may be used for grazing animals. Colorado and La Plata County have fence regulations, which means that property owners are reponsible for fencing the livestock "out" of their property. Remember, "fence out, not in." The neighboring pasture that is so lovely in the summer may turn muddy and odorous if it is used for winter feeding. Flies may be a common nuisance around livestock ranches in the summer months.

Living in rural areas has certain unwritten restrictions and "codes of conduct," all based on respect for the land and others, including resident and transient wildlife. Humm, "respect for the land and others," what a wonderful concept. That's why we love living here in the beautiful San Juans. You can live here too. Give us call!

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DURANGO: Good news! Durango West I residents overwhelmingly passed a $600,000 bond issue on Tuesday to fix roads in the subdivision.

Eighty-four voters approved the bond while 42 opposed it in the vote-by-mail election.

Voter's approval follows years of neglected road maintenance in the subdivision, said district manager Janet Anderson. "Our roads are in really bad shape," Anderson said. "We've wanted to do this for awhile."

Work on the roads will begin later this year. The Durango West Metro District hopes to have a contractor signed up by May 25, Anderson said.

Durango West has about 3 miles of road. The roads in the worst shape are Forest Ridge Drive, Trail Wood Drive and Moss Road. Some of the roads will be completely rebuilt, while roads that benefited from a $550,000 bond issue in 1995 will be merely maintained.

We commend the residents of Durango West I for their community pride. It certainly makes our job easier when marketing homes in the area. Give us a call or email if you have any questions or comments about the Durango real estate market.

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FORECLOSURES: While it was reported that Colorado led the nation in the rate of home foreclosures last month we are happy to report that La Plata County was an exception. The problems seem to be concentrated in the state's population centers. In fact, in La Plata County foreclosure rates are down compared to last year, said Treasurer Ed Murray. Murray said his office typically sees about five foreclosures a month. So far this year there have only been fifteen. For all of 2005, there were 62 foreclosures. The Durango economy is sound, the mountains are beautiful, the fish are biting - what a wonderful place to live.

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MORE ON WATER: In our previous posts we have talked about water rights and the delivery of water by direct diversion from the river or via irrigation ditches managed by ditch companies. This is "adjudicated water," i.e. water rights that have been established by the Water Court. Adjudicated water rights are generally transferred by water stock certificates from the ditch company. Assessments for delivery of adjudicated water are billed annually by the ditch company.

Another type of water is "project water." Project water is water stored at Lemon Dam. This water is measured in acre-feet and stored until it is needed. Lemon Dam stores 40,100 acre-feet of water in a normal year. The project water is delivered via ditches and measured in cubic feet per second (cfs.) Project water rights are usually transferred on the land deed. Assessments for project water are billed with your property taxes.

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