"Where's the Market?" 

If you want to dial the combination to a successful business listen up and read on.

The key that opens the secret box is really no secret at all.  For all the years I have been in business the missing link is in the same place.  Right under your nose.  97% of all the good folks pursuing a business simply miss it.  There are basic principles to business you got to get before you can expect to find success.  You have to have a goal and a burning desire to make it happen.  Let me be specific and repeat that.  You have to have a goal and a burning desire to make it happen.  Work ethic is pure magic.   This means you have to do the work.  It is not work when you honor the ethic to enjoy finding and building relationships.  The place that stops most people is fear.  Pure and simple.  You got to be willing to do the work.  If you can't get beyond the fear of mining prospects then go to work for someone else, because you are only wasting your time and theirs.  If you are brave enough to step up to the challenge there are great rewards that come to those who are willing to pursue their cause.  Principle #1.  Mine your prospects. They are not clients until you create a relationship.  To the next blog.

Work ethic is pure magic, honor it!

What are your greatest fears?

Here is the current popular list of the top ten fears that hold you back in life.

Change... The thing we can depend on - an ever-changing world.

Loneliness...

Failure...

Rejection...

Uncertainty...

Something Bad Happening...

Getting Hurt...

Being Judged...

What if there was an antidote for that feeling of being held captive to one or more of these, or any fear for that matter.

I believe there is one stealth talent and tool you can use to put you in the control seat of your life.  To challenge any fear and ultimately help master it.  After 40 years in business I have seen it come up over and over again.  It, in itself, is a one of the greatest fears most people face.  Yet, once understood in the right way and practiced it becomes the tool of choice that tames nearly every fear you have encountered in your life.  If you truly want to stand in courage against the fears in your life you will be rewarded in amazing ways when you understand, practice and put this talent to use.

Before I share with you the talent you should never bury, I want a promise from you.  This is a pay it forward promise to yourself that benefits yourself if you keep it.  It really isn't for me.  It is a promise of irony, a paradox that will fill you and those you care about with value beyond its weight in gold or oxygen and return to you in ways untold.

Here is the sad news, and it doesn't need to be so.  The Pareto Principle says 8 out of 10 of you reading this will not do it.  The deep reality of this solution is so far reaching in its power to solve problems in your life it will feel like too much to take in.  When I share this one word with you it will put you back in your seat either to slump or to drive.  You will ponder, maybe flinch and the pit in your stomach will knock on your psyche.   I guarantee if this talent is learned, practiced and used in its mastered modern sense, you will never look back.   In a word.  Negotiation. 

You may say what does negotiation have to do with fear?  I say everything.  Negotiation with yourself or others definitely moves your fears one way or the other.  Rational thinking about why we feel the way we do is a form of negotiating with ourselves that can help us overcome the fears we may have.  Most fears are in our minds so if we make decisions and plans about the things we fear or address the circumstances in our lives to help avoid the fearful outcomes we will have more control and peace in our lives.  You can take any fear on the list and with self-discipline and negotiation move away from your fears.

In modern negotiation I have learned in 40 years of problem solving and practice some very cool technics that are collaborative and non-threatening and can be fun and rewarding in moving you to where you deserve.  Away from fear. Seize the day!

In future blogs I will share some of the meat in negotiations that can move your confidence meter into overdrive. 

Here is an updated snapshot of the Cheyenne market as of today.  The trend continues with lower inventory, pending sales have once again begun to climb.  Below are the numbers of homes in a spreadsheet for comparison.

With ONLY 83 home listings on the market the march of new construction included above continues as well as the expansion and development of new sub-divisions.  The average sales price is $376,231 up from $369,388 last month.

I don't see the demand for housing slowing down this year and may keep pace as the interest rates have increased for a conventional 30 loan bumping through 4.0%.  Buyers will be anxious to try and secure the lowest rates possible and long term rate locks for new construction are available.  There is no time like the present to begin looking for your home because prices and rates will go up.  You are welcome to call for the facts in selling or buying and chat about the market.  Thank you.

Tom Jacobson

Value For Life!

Here is an updated snapshot of the Cheyenne market as of today.  The trend continues with lower inventory, pending sales have once again begun to climb.  Below are the numbers of homes in a spreadsheet for comparison.

 The march of new construction continues as well as the expansion and development of new sub-divisions.  I don't see the demand for housing slowing down this year and may keep pace as the interest rates have increased for a conventional 30 loan to around 4.0%.  Buyers will be anxious to try and secure the lowest rates possible and long term rate locks for new construction are available.  There is no time like the present to begin looking for your home because prices and rates will go up.  You are welcome to call for the facts in selling or buying and chat about the market.  Thank you.

Tom Jacobson

Value For Life!

Here is a snapshot of the Cheyenne market through the end of January that reflects back one year.  The trend is lower inventory and with the pending sales dropping one might wonder if it's just fewer people coming into the market.  I would suggest the pending sales dropping are not because of fewer buyers, but because of fewer listings.  It is a remarkable stat to point out that there are as many new homes pending as existing.  I don't see the demand for housing slowing down this year and may keep pace as the potential for rate increases looms over the market.  Buyers will be anxious to try and secure the lowest rates possible.  There is no time like the present to begin looking for your home because prices and rates will go up.  You are welcome to call for the facts in selling or buying and chat about the market.  Thank you.

Tom Jacobson

Value For Life!

Shield your Capital with a DST

Here's a little know way to shield your capital gains against taxes.  

Do you own investment property that you would like to sell, but don't want to take the tax hit?

As you may know Section 1031 of the Internal Revenue Code provides a means to defer capital gains taxes that arise from the sale of a business or investment property.  By exchanging your property for like-kind real estate  you may defer taxes and use your proceeds to buy a replacement property.  Of course there are guidelines for transacting this exchange and it can be done properly to your advantage.

Here's the little known angle on this exchange idea.  Say you want to sell your investment property because you don’t really want to manage property anymore or don't want to take the risk of trying to find a like-kind property in a rapidly selling market.  Then consider a Delaware statutory trust or DST.  This permits a fractional ownership where multiple investors can share ownership in a single property or a portfolio of properties.  A DST removes the decision making responsibility away from the investor and uses an experienced sponsor affiliated trust. 

Here are a few benefits of a DST 1031 exchange:

1. You no longer have any management responsibilities.
2. You have access to high quality properties where you wouldn't normally be able to invest.
3. You limit your personal liability.
4. You can diversify your investment across property types.
5. For estate planning all 1031 exchange investments receive a step up in cost basis so your heirs will not inherit capital gains liabilities and they won't have the burden of management.
6. Eliminates the potential left over "boot" that would otherwise be taxable.
7. As the investor you can swap properties in the DST structure until the investors death.

This is a great potential alternative if you are tired of managing your investment properties and do not want take a huge tax hit for yourself or your family.  You can sell your local property and roll it into a DST with peace of mind.  You should always consult a tax advisor regarding a 1031 exchange.

If you would like more information on the value of your current property or more information on a DST and how it works give me a call. 

One of the most daunting experiences in life is moving.  In particular if you have been living in one location any amount of time or even down-sizing.  I am constantly looking for ways to bring moments of value to my clients and I am exciting to share one of these with you today.

As the Baby Boom generation retires through 2030 it will account for about one fifth of the US population and is our fastest growing population segment.    

Our mobile society has evolved by moving jobs and careers all over the world.  Families used to seldom move away from their roots, but this mobility has changed everything.  Children often leave the communities they grew up in to find more or better employment or seek new opportunities that were not once abundant.  This leaves many seniors without the resources and family support when it comes time to move.  My own personal experience with elderly parents testifies to just how much they depend on help when making a move.  So, what happens when you don't have that support?  Now there is an option that I am happy to share with you.  It is called senior move management and I have a friend in Cheyenne that has a business in senior transition services called Sunny Solutions, LLC.

The benefits to anyone contemplating a move are numerous.  First, planning ahead is always the greatest benefit in most things we do.  Then you have the relief knowing someone is there to help and support you.  By having the assistance to tackle 20, 30, 40 or 50 years worth of accumulation goes from mind boggling to manageable.  Helping you preserve your precious memories in either photographs or other keep-sakes. Assisting you with what to keep and what to eliminate, and then do you throw it away or is there real value to either a charity or your bank account.  This process done on your own can be mind numbing.  Space planning is another benefit in helping you lay out the things you intend to keep or want in a new location.  This also helps you decide what to keep or not.  A professional move manager is not as expensive as you would think and you should not doubt the power of an outside expert.  If you are moving into senior living they have the experience and understanding of the alternatives and financial resources necessary for each.

If you or someone you know are planning a move to downsize why not enjoy the peace of mind and help of an experienced professional.

Call me and I would be proud to introduce you to Mary Lewis who is a professional senior move manager and an NASMM member.   

Home Painting

The major paint companies have raised their flags for the "go to" colors this year.  We'll see if the nation of home owners agree.  Companies tend to predict the color trends based on customer feedback and color trends in general.  Of course not all the new colors across every industry work in real estate.  Although, I have nearly choked when I have seen some of the screaming colors people pick for their homes that clearly didn't belong on a house.

The earth tone inspired colors are back with a twist, pastel.  Blues, greens and pinks are dominating the field.  Bear in mind these colors are trending for interior only.  I hope.

Pinky beige from Sherwin Williams is an elegant pastel for a dining room or formal living room. 

Valspars' greens are a traditional elegance that breathes life into a home and work well for bathrooms or bedrooms.  Valley Haze 5004-5C, Dreamy Clouds 5002-5B, Soft Silk 7004-2 as seen above.

Or a naval blue accent from PPG called Chinese Porcelain, the color of the year.

    A definitive statement for entry ways or dining rooms.

As you can imagine there are hundreds more but the selection of pastels this year are intriguing.  The variations are exciting and you can be relatively sure you will have a unique combination for your home based on your tastes that aren't necessarily duplicated.  The beauty of the internet and the sophisticated websites paint companies use give you plenty of opportunity to browse colors in the comfort of your own chair and not the concrete floors at paint stores.  Valspar has a virtual painter that is pretty cool to explore loading up your own photos.

Home Decor

In home décor "conversation spaces" are trending into peoples lives as they long for time together sans the smart phone.  Kitchens have always been the common area for grazing rights and this will continue with more emphasis toward intentional design.

Lighting continues to be a big market as people enjoy the advantages of LED and the endless designs that come with that flexibility.  Pendant lighting, and mood lighting are popular. 

Local souvenirs make their way into homes as décor pieces, yes I believe Cheyenne Frontiers Days counts, in moderation, as folks like to share their stories in a décor setting.  I see this more and more with the younger home buyers.  So every home has its story.

As the earthly pastels in painting bloom, more furnishing will be organic and natural material.  While there is still a metal trend in the Cheyenne market I bet you will begin to see more of the shift away from the cold grays.

So HGTV has poisoned the old well.

The real estate shows on TV crack me up.  So much drama and so much un-reality, or un-realty. Pun intended.  We know they didn't really remodel that kitchen in an hour, but they didn't do in 2 weeks either.   There is no doubt that improving your home, provided it's done professionally, will improve the value and if you are planning to sell, the marketability.  The questions come to me often, which things should be done to help and do they make cents.  Sorry, I couldn't help myself.

First of all, if you are planning on owning your home for at least three years why not consider doing those upgrades today and enjoying them for yourself.  I see it repeated frequently where folks fix up their home in just in time to sell.  The old standards for improvements were mainly finishes like paint, carpet, vinyl flooring and the like.  That old well has been capped.  The new wells owned by Lowes, Home Depot, and the like, have opened up the possibilities like nothing before.  Take cabinet hardware.  The choices are mind boggling and combine the hundreds of other design choices for a single room and you can easily become dazed.  Americans spend $400 billion annually on home remodeling.  Many folks find the idea of remodeling overwhelming.  About a third of home owners would rather move than remodel.  But if you are in the over 50% that would remodel then having some knowledge of what that means in cost and value to your home can be important.  When remodeling is completed it also increases the desire and enjoyment to be in your home.

If you are planning on staying in your home then your budget is probably based on preference and affordability.  If you plan to sell in the next three years, understanding and  balancing your preferences with the cost of the project is important.  The National Association of Realtors has released their 2019 Remodeling Impact Report and here are some of the take-away's that you should find helpful.  If you would like a copy of the full list, approximate costs and descriptions feel free to email at tom@bestpro.biz and I send you a copy of the report.   Here's the top five interior and exterior remodeling projects based on the return of your investment:

Interior:  1.) New wood flooring 106%, 2.) refinishing wood floors 100%, 3.) new HVAC (heating & AC) 85%, 4.) upgrade insulation 84% and 5.) finish basement for living 64%.

Exterior:  1.) New roof 107%, 2.) new garage door 95%, 3.) fiber-cement siding 75%, 4.) new front door 75% and 5.) new vinyl windows 71%.

There is something special about an upgrade to rooms or components, and the market feels it.  With so many choices of design features you can really make a personal statement about your home.  But, again if you plan to sell in the near future the market may not make the same statement.  If you would like to know more about what makes sense in your remodel project I would be happy to share my thoughts and experience.  Just call or email me.

P.S.  Watch for my next blog on the current trends for design and color in real estate.

Meet me at the new blog.

Cheyenne Year-End Market 

Good morning to a new year my friends,

Pardon the visual, but I need to download my brain.  After 37 years of doing this stuff, I want to share what should be of value to my friends.  In preparation for 2020 I launched a new robust website in December.   It will also feature weekly blogs designed to be beneficial for you, my friend and client.  They will include, of course, real estate subjects as well as local events and issues related to real estate.  These blogs will not be canned, packaged or processed by hired ghost writers or anyone else.  They will be written by me personally with nothing artificial added.  I have enjoyed writing for many years, but this will be a new endeavor for me so please be patient with the stretching of my neoencephalon.  Yes, I had to look it up too.  I would encourage and appreciate your constructive feedback.

So, where to start?  How about the end, the end last year.   Most folks probably are aware of the growth in our market and economy over the last several years.  It has accelerated since 2011 with the third quarter of 2019 ending with an annual average 6.7% appreciation of real estate values in Cheyenne according to the Federal Housing Finance Agency.  To put this in context the last three years were 4.7, 5.0 and 5.5% respectively.  I provided a chart in a mailing last year from FHFA for Cheyenne and if you are interested I'll forward you the recent copy.  I have experienced four growth cycles in Cheyenne since 1983 and if you look at the trends, appreciation begins to subside after the 3rd or 4th year of growth in every cycle.  As trends forecast, that means we could see that probability of lower appreciation in 2020.  In the next 5 years I do believe we will continue to have demand for buying that will favor a steady momentum in our Cheyenne real estate market.  As values slowly continue to climb, now is a great time to buy your real estate with continuing historical low interest, because even as appreciation slows, values are still going up.  If you have questions about your real estate future and would like to talk to me feel free to call.

When experience counts,

P.S. Next time I will cover the home improvements currently capturing the highest return for your money.