The mortgage market is unchanged, credit available on old-fashioned agency terms and not much else. Rates are about the same, mid-sixes. For every tentative lender toe stuck back into scary water, another bather has run shrieking from the pool, or drowned. The same is true for general, nonmortgage credit: shrinking.

The Fed’s injections of short-term liquidity have succeeded in preventing the equivalent of a bank run, but otherwise … zilch. The discount-window theater has been as pointless as forecast here; borrowings as of Wednesday barely hit $1 billion. High-quality borrowers have more credit than they need.

The problem is credit quality, not liquidity. The world economy runs on financial innovation, not AAA antiques. The modern “structured finance” market has locked up in a loss of confidence in the value of outstandings, and inability to value new issuance.

The financial world has been waiting all week for a speech this morning by Fed Chairman Ben Bernanke. He has been painfully silent in office, which doubles the discomfort when he does speak and whiffs.

The speech begins with three pages describing the current situation in daily newspaper content. One line stands out: “Obviously, if current conditions persist in mortgage markets, the demand for homes could weaken further, with possible implications for the broader economy. We are following these developments closely.” Key word: “following.”

The next five pages are a tour through mortgage Jurassic Park that might get a passing grade in sophomore macro. When the chairman cruised past Depression-era structures (FHLB, FHA, FNMA), he might have noted the crucial elements of liquidity created then whose absence in modern structured finance have caused today’s wreck. Transparency, homogeneity, underwriting, credit guarantee — down that conceptual road lie creative solutions to the dangerous lock-up at hand.

Instead, Bernanke closed with an offensive paragraph assigning blame for bad mortgage lending: “… Most loans are securitized, and originators have little financial or reputational capital at risk. …” True for some, sir, but hardly most. I’ll look after my reputation; you had best tend to yours.

Aside from its contemptible aspect, the chairman’s assessment reveals blindness to the source of trouble: a large volume of very good and very foolish financial products created on the Street to satisfy demand by an unprecedented pool of global savings. If every mortgage made since 2000 had been underwritten strictly within the guideline of the Street inventor/securitizer/buyer, today’s problem would be undetectably smaller. Subprime loans are deadly by structure, not slipshod or fraudulent processing; no-equity households will defy workout by this new FHA effort, or any other.

Those foolish products, mortgage and nonmortgage, and the world’s reliance on them for both consumption and investment — that’s the two-part problem at hand.

First, we need the credit supply from the better fraction of the innovative products, but that is shut off along with the bad. Nothing in the Fed’s traditional measures so far has helped to restore supply, and rate cuts, even big ones, may not necessarily work. Starved of credit, consumption and the economy are at risk.

The second problem is by far the more dangerous. Structured-finance products all over the world are crashing in value or cannot be valued at all. Frequently leveraged, the fall in value is a balance-sheet risk both to investors and their lenders. Bernanke’s silence on this risk is unaccountable. I had hoped to hear some attempt at outside-the-box central banking to match the financial-market innovation that left the Fed at the station 10 years ago.

One cheerful thought: the longer it takes for the Fed to get a grip, the uglier it will get, and the bigger the refinancing party for surviving lenders and those who still own their homes.

Lou Barnes is a mortgage broker and nationally syndicated columnist based in Boulder, Colo. He can be reached at lbarnes@boulderwest.com.

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What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Copyright 2007 Lou Barnes

“Should I sign the mediation and arbitration clauses in this home sales contract?” That question is frequently asked by home buyers and sellers of their real estate agents.

Frankly, there is no right or wrong answer, but all the parties should be fully informed before making their decision to possibly give up legal rights.

ALTERNATIVE DISPUTE RESOLUTION. Unfortunately, lawsuits develop after home sales usually because the seller allegedly failed to disclose a serious defect with the residence. In an effort to reduce the time and cost of resolving these disputes, the specialized legal field of “alternative dispute resolution,” or ADR, has evolved.

PurchaseBob Bruss reports online.

Of course, the best solution is to resolve the problem between buyer and seller on a friendly basis without litigation. Frequently, the problem is just a misunderstanding that can be easily solved.

For example, when my mom and dad purchased their condominium, the seller removed the dining room chandelier and substituted a less attractive one. The first thing my mother noticed was the missing original chandelier. A phone call to the real estate agent, who called the seller, soon resulted in reinstallation of the prized chandelier, which, because it was a fixture, was automatically included in the sales price.

However, when buyer-seller disputes cannot be resolved easily, lawsuits often develop. To prevent costly and lengthy court delays, two alternatives have evolved:

1. MEDIATION. Many printed real estate sales contracts now provide for mediation of home buyer-seller disputes that arise after the sale closes. If both buyer and seller agree to this provision, before filing a lawsuit or for binding arbitration they agree to hire a professional mediator to work out a fair settlement should a dispute arise that they cannot resolve themselves.

Expert mediators, selected by the parties and paid on a 50-50 basis unless otherwise agreed, listen to the story of each party and then try to negotiate a settlement. Usually, there is no “winner take all” in mediation. Instead, the result is often a compromise arrived at within a day or two.

The advantages of mediation include quick resolution of the buyer-seller dispute at a reasonable cost. But the primary disadvantage is the mediator has no binding power to force a settlement agreement on the parties.

If the parties refuse to negotiate, mediation can be a waste of time. However, at least both parties then understand the position of their opponent after hearing their viewpoint on the dispute.

Some real estate purchase contract forms specify if a buyer or seller refuses to mediate first, he or she will not be entitled to attorney fees as the prevailing party in either binding arbitration or a court lawsuit. Buyers and sellers should thoroughly read and understand the mediation clause before agreeing to accept it.

2. BINDING ARBITRATION. The second and better known form of alternative dispute resolution is binding arbitration. If the home buyer and seller both sign the arbitration clause in a home sales contract, they agree to binding arbitration of any dispute that might arise that can’t be resolved on a friendly basis.

For example, if the roof leaks during the first heavy rain after a home buyer moves in but the seller did not disclose a leaky roof before the buyer signed the sales contract, it looks to the buyer like the seller lied and tried to hide a serious defect. However, perhaps the seller had not lived in the house for several months and was not aware of any roof leaks. Or maybe the roof was leaking into the attic and water had not yet leaked through to the living spaces. There are usually two sides to every story.

Presuming a buyer and seller are unable to resolve their after-sale dispute either by a friendly settlement or by mediation, if both parties signed the arbitration clause then the next step is for the buyer’s attorney to notify the seller of the dispute and the buyer’s desire for binding arbitration as provided in the sales contract.

At this point, in addition to summarizing their positions on the dispute, the buyer and seller, or more likely their attorneys, will suggest names of local arbitrators. These are often retired judges or active attorneys with expertise in the field. If the parties cannot agree on an arbitrator, then each side suggests an arbitrator and the two arbitrators then select another arbitrator to handle the case.

The chosen arbitrator then arranges a hearing date when the parties will present their evidence. The setting is usually a conference room rather than a formal court room. The arbitrator then hears the evidence and witness testimony as well as asking appropriate questions.

The arbitration is often quite informal. After hearing all the evidence, the arbitrator usually renders a written binding decision, which the prevailing party can then take to the local court for entry or confirmation, just like a regular court judgment.

PROS AND CONS OF REAL ESTATE MEDIATION. Mediation is an informal procedure that often results in a mutually satisfactory settlement within a few days if the mediator does a good job and the parties are cooperative. The cost and time involved is usually minimal.

By agreeing to mediation, the parties do not give up any legal rights, but they often come to a win-win result with neither party being 100 percent satisfied nor disappointed.

PROS AND CONS OF REAL ESTATE BINDING ARBITRATION. If both the home buyer and seller agreed in writing to binding arbitration, that means they gave up substantial future legal rights in return for a relatively quick judgment by the arbitrator who hears all the evidence and then renders a binding decision.

The primary rights given up by the parties to an arbitration when signing the arbitration clause include the right to a jury trial, right to court room rules of evidence, and the right to appeal the arbitrator’s decision.

Even if the arbitrator’s decision involves a mistake of fact or the law, it is still binding on the parties. Rare exceptions could occur if a party can prove the arbitrator was bribed or had an undisclosed conflict of interest. But overturning an arbitrator’s decision is virtually impossible.

SHOULD HOME BUYERS AND SELLERS SIGN MEDIATION AND ARBITRATION CLAUSES? Before signing a mediation and/or arbitration clause, home buyers and sellers should fully understand the legal consequences. Many real estate attorneys suggest not giving up legal rights at the time of signing a home sales contract. However, if a buyer-seller dispute later arises and it cannot be resolved without litigation, at that time the parties can decide if they want to go to binding arbitration rather than a court trial.

REALTY AGENTS ARE NOT BOUND BY THESE CLAUSES. Most home sales contracts provide mediation and/or arbitration clauses for the buyers and sellers, but not for the real estate agent. There are several reasons why:

One reason is the realty agent is not a party to the sales contract and is not bound by its terms except for the sales commission, which is usually specified as a separate agreement at the bottom of the contract.

A second reason is the realty agent is involved in the marketing of the property, not the details of the sale, which are between the seller and buyer. Therefore, it would be inappropriate for the realty agent to be bound by the mediation and/or arbitration clauses in the sales contract.

A third reason, whether intended or not, is if the buyer and seller are having a dispute that is to be resolved by binding arbitration, if the buyer and/or seller thinks the realty agent did something improper, a separate lawsuit against the agent will be necessary. In addition to the costs of arbitration, lawsuit costs can also be expensive, thus making a lawsuit against the agent less likely. For more details on real estate mediation and arbitration, please consult a local real estate attorney.

(For more information on Bob Bruss publications, visit his Real Estate Center).

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What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Copyright 2007 Inman News

Have you finally found the perfect set of outdoor furniture, only to find that it dwarfs your deck? Are you tired of tripping over lawn chairs each time you squeeze past the barbeque? Would you like to be able to entertain a bigger crowd in you backyard than just you and the dog?

Many people who are saddled with an undersized deck or patio hesitate to do anything about it, fearing that they can’t add on because they can’t match what’s there, and they don’t want to undertake the expense and hassle of tearing everything out and starting all over again. However, there are lots of ways you can enlarge and enhance your outdoor living space with a complimentary addition, even if it doesn’t match the original.

One way of expanding a deck is to change height levels, which simplifies the transition and makes for a very interesting layout. You can make the deck feel like a very cohesive design by then using those different levels for different purposes, such as cooking in one section, dining in another, and perhaps lounging or even a spa on still another level.

Changing height levels doesn’t need to be radical — in fact, small step-up or step-down transitions often look the best, and allow for easier traffic flow. For example, if you have a deck off the back of the house and your yard slopes up or down, you might consider a deck extension that is one or two steps higher or lower than the existing deck, in keeping with the yard’s natural terrain. Even in a yard with no slope, a single step up to the next deck level will allow a transition with great visual results.

Another effective alternative is to extend the deck or patio using a different material than what’s existing, which can also add a lot of visual interest. Perhaps you have the typical concrete patio that is laid flat on the ground, a step or two below the door leading to the house. Rather than try to match that concrete with another slab, you could extend the deck in one or more directions by adding concrete pavers in a contrasting color to the concrete.

To really create some interest and solve a lot of decking extension dilemmas, you can combine a material change with a level change. With the flat concrete patio, for example, you could do a very attractive extension by stepping up from the concrete to a wood or composite deck, which again would serve a different use from the patio itself. Set up your barbecue or other cooking applications on the patio, where it’s closest to the house, and then set up an outdoor dining set on the raised wooded deck.

The transition between the two materials and the two levels can be further disguised or enhanced by using still a third material to make the level change. For example, the transition between a concrete patio and wood deck might be made with a step that is constructed from poured concrete with a ceramic tile covering, or a wood step that has a ceramic tile face.

You can make an even bolder transition — and gain some additional usable space — by making the elevation change higher than just a couple of steps. Depending on your yard and the size of the intended addition, you could make the new deck section 2 feet or 3 feet higher than what’s existing. Install a railing along the edge of most of the new deck, with one or two openings that have steps down to the original level. This simplifies the installation of the addition by reducing the length of the steps that you have to build, and you can put additional furniture or storage boxes up against the vertical railing areas, especially on the lower level.

Level and material transitions don’t need to extend straight off of the original deck or patio either. You can often create a beautiful, very workable space by extending off to one side at an angle, or perhaps off one corner.

Also, don’t be limited by the shape of the existing deck or patio. Prior to constructing the new deck, you can cut off a corner of the old one, or consider cutting a side or an edge into a curved or sculpted contour. You don’t even need to actually cut the old deck or patio — if you are extending out with a new deck that steps up, you can construct the new deck partially over the top of the old one, creating a new angle or curve at the transition point.

The main thing is, don’t be afraid to let your imagination out. Make a scale drawing of what you have existing, and then play around with some additions on paper. You might be surprised at how easily you can transform that bland, “postage stamp” patio into a real crowd-pleaser!

Remodeling and repair questions? E-mail Paul at paul2887@ykwc.net.

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What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Copyright 2007 Inman News

There’s only one cardinal sin in architecture, and that is not thinking. Though it’s seldom recognized, thoughtful architecture has little to do with style, taste or the sort of inane aesthetic minutiae that small-minded design-review boards like to busy themselves with.

Over the centuries, there have been hundreds of architectural works that offended contemporary eyes, but are now seen as works of brilliance. That’s the point: Thoughtful architecture has nothing to do with the fashions of its time. Rather, what every great work has had in common — what all great architecture has in common, whether familiar or unfamiliar — is that someone has taken the time to think about it.

But it isn’t just “great” architecture that’s worthy of thoughtful design. On the contrary, since dwellings make up the overwhelming share of architecture on earth, it’s all the more important that we think about them as carefully as we would some vast public project. The additive impact, after all, is much greater. And what sets any dwelling apart from mediocrity is one simple quality: Its designer finds it worthy of careful consideration, asking not, “What style should it be?” but rather, “Have I given it the thought that it deserves?”

To see what happens in the absence of such thought, you probably need only walk down your own street. Everywhere apparent is design done according to rote or reflex, blindly informed by what the neighbors down the street did, or by whatever style happened to be in the magazines at that moment. It doesn’t help that architects and city planners often engage in such groupthink as well, zealously advancing points of view that will inevitably fade from the professional canon in a matter of decades, just as all aesthetic ideals eventually run their course. The wholesale destruction of city cores under urban renewal during the 1950s and 60s, for example, was not an idea that came out of nowhere — it was promulgated by modernist architects and planners who sincerely believed they were carrying out the professional mandate of their time.

In contrast to the prepackaged solutions offered by groupthink, thoughtful design takes time. But in relative terms, the extra effort is minuscule. If the tangible result of your efforts will stand for the next 50 or 100 years — perhaps more, who can say? — then a few hours, days or weeks of careful contemplation is nothing in comparison. Nevertheless, I daily come across projects being built — often at vast expense — that have, it seems, benefited from a grand total of two minutes of thought. This window/door/siding/roofing is what everybody’s using now? Great, let’s install it.

The notions of style and taste are the great humbugs of architecture, the beloved preoccupation of architectural nonthinkers. They consume the lion’s share of attention while returning little in the way of human comfort. Yet ultimately, style is nothing more than a guarantee of imminent obsolescence, while the notion of objective good taste is simply a fallacy — what is tasteful in one place or in one era is sure to be reviled in the next.

There’s only one absolute criterion for good design: It’s that any building we put our hands to, whether modest or monumental, this style, that style, or no style we recognize, has gotten the benefit of our utmost human insight.

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What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Copyright 2007 Arrol Gellner

Tamera Manzanares | For Yampa Valley Real Estate

While peeling layers of linoleum in her historic downtown home, architect Cynthia Pougiales found a 1926 Denver Post lining the original floor.

She used the well-preserved newspaper to wallpaper the powder room. She also integrated other found treasures, such as a children’s metal paint box, into special places where they serve as reminders of the home’s irreplaceable past.

Preserving historic structures can be an adventure, yielding stories linking us to Routt County’s roots. At the same time, preservation can allow for creativity in reviving old structures for modern uses.

“There are a lot of people in special places that don’t know they are in special places,” said Pougiales, who specializes in historic preservation projects at Thira Incorporated.

The city of Steamboat Springs has a Historic Preservation Program as well as Design Guidelines to help Old Town property owners planning additions or alterations on historical properties.

Improvements to historic structures — those 50 years and older — are subject to some form of historic preservation review.

The city has researched 250 homes and buildings in Old Town, documenting their historical and/or architectural significance and possible eligibility for historical registers.

The survey, which is available at the city’s Historic Preservation Office, is a good place for property owners to investigate their property’s background. They also can research ownership records at the Routt County Assessor’s office and look for additional background information at the Tread of Pioneers Museum.

Once property owners pinpoint that special something about their home, they may decide to pursue historical designation on the local, state or national historical registries. Benefits include income tax credits, sales tax rebates for preservation materials purchased in Steamboat and possible eligibility for grants to help with preservation work.

Pougiales is currently rehabilitating her downtown home, which was the longtime home of the Barrows family and downhill ski Olympian Jim “Moose” Barrows.

The wood frame house, built circa 1910, was placed on the Routt County Register of Historic Properties in 2005 because of its ski history background and its L-type vernacular architecture — a building style distinguished by steep metal roofs and wood and shingle siding.

A property must be important to the community from a historical, architectural or geographic standpoint for local designation. Recognition does not restrict what the owner may do with the property.

Preservation projects fall into different categories. Restoration reproduces a structure’s appearance exactly as it looked at a particular moment in time, while rehabilitation returns a property to a state that allows modern uses while preserving features significant to historical, architectural and cultural values.

Most preservation projects in Steamboat may be considered rehabilitation projects, according to the Steamboat Springs Historic Preservation Program.

In addition to reflecting architectural styles and details, historic homes may have locally milled lumber, sandstone from the Emerald Mountain quarry and other regional materials. Older structures also may feature work by local craftsmen such as Carl Howelsen, a stone mason who contributed to various buildings in Steamboat.

Assessments conducted by specialists such as Pougiales can help homeowners gauge a home’s condition and rehabilitation or restoration needs.

Although rehabilitation/restoration is more expensive than renovation or new construction, the value of helping to preserve the community’s historical identity is immeasurable.

“It’s an opportunity to preserve the character of the region by telling its story,” Pougiales said.

For more information about the city of Steamboat Springs Historic Preservation Program, go to www.steamboatsprings.net and click on the Departments link and then Intergovernmental Services.

DEAR BOB: Who pays the taxes on a once-in-a-lifetime, $1 million property gift? –John L.

DEAR JOHN: Nobody! When an individual donor gives away up to $1 million in cash or other assets, he or she must file a federal gift tax return with the IRS. But no federal gift tax will be due if the donor has not previously given away more than $1 million tax-free under the $1 million federal gift tax exemption.

PurchaseBob Bruss reports online.

When the donor dies, the $1 million lifetime gift tax exemption used will be subtracted from the decedent’s federal estate tax exemption (currently $2 million for decedents dying in 2007 or 2008). For full details, please consult your tax adviser.

SEVERE TREE TRIMMING PROVED COSTLY

DEAR BOB: For several years I tried to get my neighbor to trim her big, old tree that overhung my property line. She refused to do anything. Then I read in your column about 18 months ago that I had the legal right to trim overhanging trees back to the boundary. That’s what I did. I had an arborist do the work. It cost me about $1,000. However, within about six months the neighbor’s tree died. She blamed my tree trimming, but I think the tree died of old age. She took me to local small claims court and the judge awarded her $2,000. Should I appeal? –Henry H.

DEAR HENRY: As I have frequently warned when trimming a neighbor’s tree overhanging your property, you must be very careful not to trim it so severely that the tree dies. If the arborist you hired knew what he was doing, the tree should not have been trimmed so severely that it died.

Anything can happen in small claims court. If you feel the judge ruled against you unfairly and if the arborist will testify on your behalf, you might want to appeal. The choice is up to you.

HOME BUILDER’S GOOD FAITH ESTIMATE IS NOT A MORTGAGE PROMISE

DEAR BOB: Can a mortgage lender pretend on a good faith estimate that it will offer you a particular loan to entice you to sign a purchase contract and pay a deposit to a home builder? That’s what happened to us. We were offered a 40-year fixed-interest-rate mortgage at 6.2 percent interest with a $1,595 monthly payment. So we signed the contract and gave the home builder a $5,380 deposit. However, the mortgage company then tried offering us different loans, none as good as the original mortgage outlined on the good faith estimate. My wife and I didn’t earn our 800 FICO (Fair Isaac Corp.) score by making bad choices so we walked away. Now the home builder refuses to refund our deposit. What can we do? –Miguel T.

DEAR MIGUEL: The answer depends on the wording of the home purchase contract. The mortgage lender’s good faith estimate was not a promise of a specific home loan. However, if your purchase offer was contingent on getting that loan, and if it proves to be unavailable, then you are clearly entitled to your deposit refund.

The new Robert Bruss special report, “Pros and Cons of Livings Trusts to Avoid Conservatorship, Probate Costs and Delays for Your Heirs,” is now available for $5 from Robert Bruss, 251 Park Road, Burlingame, Calif., 94010, or by credit card at 1-800-736-1736 or instant Internet delivery at www.BobBruss.com. Questions for this column are welcome at either address.

(For more information on Bob Bruss publications, visit his Real Estate Center).

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What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Copyright 2007 Inman News

Question: We live and work in Germany at this time, but own some rental properties back in the United States. We signed a one-year lease for a rental house for our son to live in back in our hometown. We were looking to increase our real estate investments so we decided to buy a property of our own for our son to live in. We notified the owner of his current rental immediately, telling him we wanted to be released from the contract as soon as possible and that there was another person interested in taking over the lease. The new tenant moved in about two months into the lease and signed a new contract with the property owner. The owner told us our security deposit will not be refunded to us, and that it was our responsibility to collect the money from the new tenant. We believe our security deposit should be refunded to us. Do we have any recourse? More importantly, how can we insure we are completely released from this contract/lease?

James McKinley, an attorney for landlords, replies:

When you sign a one-year lease for the rental of property, you are obligated to pay rent for the entire term of the lease. Under virtually all tenant-landlord laws, if a tenant breaches a lease by vacating the leased property, the tenant is responsible for the rent until the lease expires, or the property owner can mitigate his damages by finding a new paying tenant. In your case, the property owner was under no obligation to release you from the lease. However, when your son vacated the premises and a new tenant moved in with the property owner’s consent, that effectively terminated your lease. The property owner should have refunded the security deposit or given an accounting of how the deposit was applied. Your remedy is to sue the property owner in small claims court for the refund of the security deposit. If the court finds that the property owner kept the security deposit in bad faith, he could be subject to statutory damages of up to twice the amount of the deposit. Although the property owner mitigated damages by finding a new tenant, you could still be held responsible for any lost rent not paid until your lease expires. If, for example, the new tenant is paying less rent, you could be held responsible for the difference. If the new tenant vacated and stopped paying rent, you could be held responsible for the unpaid rent. The only way to be completely released from the obligations of the lease you signed would be to enter into a written agreement with the property owner, releasing you from your obligations.

Question: I have a friend at work who was telling me about this situation and I thought you might be able to help us. My friend is a tenant and she has a lease that just recently expired. She does plan to move and she gave the landlord a 30-day notice but the landlord is telling her to get out immediately as she hadn’t paid rent this month and wanted the landlord to take the rent out of the security deposit. The lease is for a fixed term, as there is no “automatic rollover” provision in the lease where the expired lease becomes a month-to-month rental agreement. Can a landlord take legal action against a tenant only if he or she owes one month’s rent and the lease has expired?

Property manager Griswold replies:

Yes, the landlord could pursue an eviction based on the lease expiration and unauthorized holdover of the rental unit or the nonpayment of rent for the current month. Typically, the nonpayment of rent is the easier case to prove and win for a landlord than other causes of action for an alleged breach of the lease or rental agreement. The tenant giving a 30-day notice after the expiration of the lease and when rent has not been paid has no effect in overcoming both causes of action by the landlord to regain possession of the rental unit. It is not acceptable for your friend to take the position that the owner can simply deduct the rent for the last 30 days from the security deposit unless there was a specific agreement that the tenant had paid the “last month’s rent.”

This column on issues confronting tenants and landlords is written by property manager Robert Griswold, author of “Property Management for Dummies” and co-author of “Real Estate Investing for Dummies,” and San Diego attorneys Steven R. Kellman, director of the Tenant’s Legal Center, and James McKinley, principal in a law firm representing landlords.

E-mail your questions to Rental Q&A at rgriswold.inman@retodayradio.com.

Questions should be brief and cannot be answered individually.

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What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Copyright 2007 Inman News

Ski Time Square, Thunderhead and golf course also on market
By Tom Ross (Contact)

Updated 12:41 a.m., September 2, 2006
Steamboat Springs — A group of resort properties that could figure prominently in the redevelopment of the ski area base are for sale.

Sheraton Steamboat Resort General Manager Chuck Porter confirmed Friday that a consulting firm in the hospitality industry has been retained to market the holdings of Ski Time Square Enterprises. They include the 315-room Sheraton hotel, Ski Time Square commercial buildings and Thunderhead Lodge.

“HVS Capital has been ret­ained to represent the partnership in marketing its assets,” Porter said.

In addition to the properties at the base of Steamboat Ski Area, Ski Time Square Enterprises owns Sheraton Steamboat Golf Course and Graystone residential subdivision on Steamboat Boulevard. Those assets, too, are available for sale, Porter said.

He said employees have been made aware of the news.

The decision by Sheraton owners to test the market comes at the same time American Skiing Company is looking for a buyer for Steamboat Ski and Resort Corp.

ASC’s Chief Executive Officer B.J. Fair has said his company has a price in mind and would not hesitate to withdraw from the process if its goals were not met.

The possible sale of two of the biggest engines in Steamboat Springs’ resort economy is set against the backdrop of a long-anticipated redevelopment of the aging base of the ski area.

The establishment of an urban renewal authority to generate public dollars for improvement of public infrastructure at the ski area base has helped open the gates to redevelopment. At the same time, real estate developers have established that slopeside condominiums at Steamboat can sell for $1 million and more.

Porter has acknowledged in public meetings that Thunderhead and Ski Time Square are viewed by Ski Time Square Enterprises as candidates for redevelopment.

Ski Time Square Enterprises is made up of six individuals, as well as Starwood Hotels, Porter said. Starwood acquired an interest in the partnership when it acquired the Sheraton flag. It also has the management contract for the Sheraton Steamboat.

HVS provides a wide range of services for the hospitality industry. It has gained a reputation for consulting on the value of hotels worldwide.
Note: The Steamboat Pilot & Today doesn’t necessarily condone the comments here, nor does it review every post. Read our full policy.
 

This article was published in moneycentral.msn.com on 8/29/06 

By Jane Wells 

People pay good money for economic forecasts, but sometimes the best glimpse of the future might be right there on your Internet browser. That’s the theory behind a new prediction tool based on online search queries — and it suggests the real estate market is getting better by the minute. The prevailing wisdom is that sales of existing homes are declining sharply, and inventories are climbing. The National Association of Realtors reported last week that home sales posted an unexpectedly sharp drop in July, falling to their lowest level since January 2004. Home prices fell in all regions of the country save the South.  Statistics like these are greeted with hand wringing by homeowners and headlines predicting a hard landing for what’s been the greatest housing boom in history. But is that really the case? 

CNBC Video: Watch Jane Wells’ report 

According to some Internet data miners, online search queries could be a better economic indicator. Over the past five weeks, there’s been a 42% increase in the number of Internet searches involving the phrase “homes for sale,” according to Hitwise, a firm which measures Web traffic. Hitwise examines search data from multiple search engines to try to predict everything from employment trends to the winner of “American Idol.” The company has been tracking searches related to real estate for a year, and it turns out that the queries are a good predictor of existing home sales 

Hitwise says there’s a lag of about a month between a change in the number of real estate related searches and sales data. Search queries tapered off in February, foretelling the five-month drop-off in existing home sales that began in March. The recent 42% jump in online queries about homes for sale could suggest that prospective buyers sat on the sidelines this summer waiting for home prices to fall and are now returning to the market. “We don’t actually suggest that you use these numbers to predict the magnitude of the change in direction,” says Bill Tancer, general manager for global research at Hitwise. “What we know, though, is it does signal a change in direction.” Data on sales of existing homes in August will be released Sept. 25. If the numbers do indeed show an increase in sales, the Web search metric will take on added prominence