Ah yes, tax season is here again and spring is in the air, so many of us are getting the itch to purge our files as we gather our paperwork for our accountant (or Quicken). However, there is always that nagging question- how long should we hold on to all those important documents? Holly Rogers, of Yampa Valley Bank, has contributed the following guidelines to help you through this dilemma:
These days we are inundated with all kinds of paperwork, it is hard to know what to keep and what to destroy, what you can recycle and what should be shred.I hope this information can help you with some of those decisions.
Certain paper documents are crucial to retain.You should always keep copies of the following: Family birth certificates, social security cards, living wills, power of attorney documents, insurance policies, real estate titles and deeds, retirement plans, investment trade confirmations, military documents and veteran benefits.
Some documents only need to be kept for a definitive amount of time.Tax returns and supporting documents and receipts should be kept for the previous seven filing years.
Original receipts for items still under warranty should be set aside at least until the warranty expires.Paystubs are only needed until the end of the year to confirm the year-end totals on your W-2 form.
You should have a filing cabinet large enough to keep most of your important documents in a central location.These filing cabinets should ideally have a drawer that can be locked for sensitive documents. Protect your essential documents.In many instances, it is prudent to purchase a portable fireproof safe or a heavy-duty wall or floor safe.Destroycertain documents.Paper shedders are inexpensive ways to destroy sensitive material.Use a cross cut paper shedder to ensure that your documents can’t be reconstructed.
Thanks to Holly for that valuable information.
Please contact any of us here at Buyer’s Resource for information about real estate here in Steamboat Springs, Colorado.
One of the biggest mistakes a Steamboat Springs real estate buyer could make is waiting for the last minute to get pre-approved for financing. Yet, that should actually be one of the first things a real estate buyer should do.
Getting pre-approved is like going to the negotiating table with cash in hand. It definitely gives a buyer an advantage when making an offer. And when we submit an offer, we typically have a pre-approval letter from the client’s lender so the seller knows we’re serious. This also helps if there is another offer the seller is considering, or if we are trying to get a lower price with a short closing timeline.
Another benefit pre-approval provides is knowing how much of a mortgage a buyer can qualify for right off the bat. This will help determine an upper limit of the price range. We certainly want to stay within the financial means of our clients, and knowing this limit will help in our search.
We always recommend working with a local lender. They know the nuances in our market, and have a greater success in getting a loan through. If you would like to see what you can qualify for, please let us know and we would be happy to give you the names of a couple of reputable lenders to talk to.
Two nights ago we experienced a weather phenomenon that is pretty uncommon in the Rocky Mountains…a snowstorm accompanied by thunder and lightening. It was a fast moving storm with good winds, but while it was here it left the Steamboat ski resort with 11 inches of snow on top and nine at mid-mountain.
If you are looking for a beautiful lot next to the golf course with ski area views, this one may be for you…
Beautifully set amidst aspens and cottonwoods, this building site is one of the rare, affordable sites left in Mountain Vista Estates. It is not only close to the ski area but also only 5 minutes to downtown. It has an exceptionally sunny southwest exposure, and the surrounding homes and natural landscaping make this lot a prime location to build a quality home. The lot size is .35 acres and it is listed at only $575,000, I personally live in this neighborhood and know the area has many special features and benefits.
If you would like to know more about this property, please let me know.
With ski season winding down, sellers are going to be facing that time of the year when cash flow is going to become an issue. The most profitable months for a ski rental property in Steamboat Springs are December, January, February and March, where approximately 80% of the rental income for the entire year is received. Occupancy rates won’t begin to pick up again until the 4th of July, and carry through until Labor Day weekend in September. However, still at that time occupancy rates are not as high and rates are half as much as the ski season.
If you are looking to purchase a rental property, early spring is the best time of the year to negotiate a deal than any other in the Steamboat Springs real estate market! Sellers have just received the lions share of the income for the year, and have been able to use their property to ski for the season, and with rental incomes down approximately 20% this year, there may not be a better time to make a move.
If you would like to see the best properties that are available in your price range, please give us a call today!
I believe there is a saying: “Desperate times call for desperate measures.” And “Necessity is the mother of invention.”
Two days ago an interesting email notification came across my desk. It was from a local developer/real estate agent, presenting quite the creative sales offer.
To put it in perspective, let’s just take a quick look at last year’s numbers:
·The total amount of Steamboat Springs’ 2008’s real estate transactions was down 52% of the average number of transactions over the previous five years (727 transactions in 2008 vs. an average of 1430).
·Meanwhile, the number of properties for sale at the close of 2008 was up 176% (1,992 vs. an average of 1,132 over the past five years).
So, basically the amount of real estate transactions in 2008 were half of what had occurred for the previous five years average (2007 was an exception). The number of properties for sale at the close of 2008 was on the closer side of having doubled, from the previous five year average. Demand was cut in half, while supply almost doubled.
Following the old supply and demand model, you would think that Steamboat Springs’ property prices would have had to go down. Maybe even way down. But let’s look at the average price of properties for the same time period: Steamboat’s prices increased half again (148%) of the average, from $417,062 to $617,631!
You could argue that people not wanting to pay the increased average property price of Steamboat’s real estate is what’s keeping so many properties still on the market, and likewise, why the number of transactions is so low. In fact, Telluride’s numbers show this; they posted both the least price increase and the most real estate transactions, for the Rocky Mountain Region’s ski resort towns.
It makes sense: We buy properties not only to live in, but with the hope of the property appreciating over time. An automatic piggybank, so to speak, that we can enjoy, and even use the mortgage interest as a tax write off, while the piggybank’s wealth grows. We don’t want to buy something that is possibly going to go down in value when and if the majority of those 1,992 listing’s owners really start to squirm and slash their prices. If prices dropped across the board, there would be less appreciation to be made down the line because you would have to wait for the market to go back up to the price you paid, before appreciation can even begin.
Thus, enters the creative offer that came across my desk two days ago. The developer of some new townhomes near the ski area is offering a 20% price guarantee! The terms, quoted verbatim, are these:
·Developer will escrow 20% of purchase price for 5 years
·Upon five year anniversary, property will be appraised by neutral 3rd party
·If property appraises for less than the original purchase price we will refund the difference up to 20%
·Re-purchase Addendum will be attached to developer contract
The townhomes range in price from $2,250,000 to $2,455,000, and in size from 3465 to 3779 square feet, with 4 BR/ 3 BA and a two-car garage.
So let’s say you purchase one for $2,300,000. 20% is $460,000, so this is the amount held in escrow. If in five years your townhome’s value has dropped by up to $460,000 (to a value of $1,840,000), you’ll get that $460,000 back. If it has dropped less than 20% of your purchase price, you get less back. If it’s dropped more, oh well. And if it hadn’t dropped at all, the developers pocket the escrowed funds.
Rather than offering a 20% price reduction now, which would bring the value of other properties down, the developers are essentially promising you a 20% price reduction in the future, should the value of the property dictate as such. It’s a risk reduction for both sides, and an attempt to increase the number of transactions (at least theirs), and listing numbers down (again, theirs), while keeping Steamboat’s prices high.
This morning, as I was hurrying to get ready to come into the office, I glanced out my bathroom window, and for a moment, time stopped.There, lying in the snow in front of a clump of trees, was a gorgeous, majestic bull elk, seemingly oblivious to a couple of magpies that were pestering him.As one assertively settled on his head, directly behind his enormous antlers, I had only one thought – this would be such a great shot, I wish I had a zoom lens!But I had to settle for looking at him through my binoculars, which was still quite spectacular.
If you would like the opportunity to live in this beautiful place we call Steamboat Springs, and you are a first-time home buyer, the new economic stimulus bill makes 2009 a great time to buy real estate.Are you considering buying a new condo, townhome or single family home?Please see below for a list of important provisions from this package, as stated on the Colorado Association of Realtors website – www.coloradorealtors.com :
Time frame to buy? – By December 1, 2009 First-time home buyer? – A buyer who has not owned a home for three years. Married first-time buyer? – Both buyers have not owned a home for three years. Claim tax credit? – Claim the tax credit on your federal income tax return. Other form or forms? – No other form except your federal income tax return. Credit limits? – Single $75,000, Married $150,000. Building a custom home? – You qualify, but you have to occupy the home by Dec. 1, 2009. Buying a new home? – You qualify, but the settlement day has to be by Dec. 1, 2009. Tax credit pay back? – You are not required to repay except for certain conditions. Access the tax credit now? – Change your withholding numbers. Mortgage Revenue Bonds? – Allow tax credit home buyers to participate. Loan credit? - State housing finance agencies to help buyers at closing by advancing the credit amount as a loan.
Please call or e-mail any of us here at Buyer’s Resource for a free buyer’s guide to help you with your very important purchase!
And don’t forget to set your clock forward an hour tonight- it’s hard to believe, but it’s that time again!
P.S. – If you know of a good deal on a Canon EOS Zoom lens, please contact Kristin!
Winter is going to return to Steamboat today in a big way, as a Winter Storm Warning has been issued for northwest Colorado. The storm is expected to bring between 8″ to 16″ of snow by tomorrow evening. If you can make it up here this weekend, get packing!
I have just concluded my analysis of how the Steamboat Springs real estate market fared against seven other Rocky Mountain ski resorts for 2008. I was very surprised with the findings. Below please find the complete text, but if you would like to see the charts and graphs, please go to the “Monthly Newsletter” page and the “Market Trends” pages contained herein.
We know how well the 2008 Steamboat Springs real estate market fared compared to past years (a decrease of 52% in Transactions with a 148% increase in the Average Purchase Price), but how did our market compare to other top-tier resorts in these changing times? With the final results of 2008 now in, it’s time to take a peek…
In order to conduct this analysis, data was compiled from the Rocky Mountain Resort Alliance, which is a trade association of ski resort related Multiple Listing Services. Member resort areas in addition to Steamboat Springs include Sun Valley, ID, Park City, UT, Aspen*, Telluride, Vail and Summit County, CO, along with several others. However, these seven were selected due to their similarities with Steamboat in market size, quality of resort services and facilities, age and historic data availability. Data used to compare the resort markets included Transactions, Average Price, Listings and Dollar Volume. An Absorption Rate (annual Transactions divided by year-end Listings) was derived from this data to provide a fifth category of study.
To begin the analysis, a base number on past performance has to be established to then compare against 2008 results. 2007 was a record year for many markets, so in order to create a more realistic baseline, a five year average (2003 through 2007) was established. Measured against their own five year average, the 2008 increase or decrease in market activity will produce a percentage to determine how the resort fared.
For instance, Steamboat posted 737 Transactions in 2008, but averaged 1,430 in the prior five years. Consequently, 2008 Transactions were 52% of average. Telluride experienced the lowest deviation from their average Transactions. Their five year average was 329, but in 2008 they posted 177 sales, performing 54% of average for 2008. This type of calculation shall be used for each of the five categories. Based upon this percentage of change from their average, a first place, second place, etc. will be awarded. First place finishers will receive 8 points; second place receives 7 points, and so on down the line. By placing first, Telluride receives 8 points in Transactions while Steamboat placed third and earns 6.
In my opinion, some categories are more meaningful than others when determining market health. Deviation comparisons in the Transaction category are more revealing than Dollar Volume, which could be skewed with a couple of high-end (or low-end) sales. Average Price deviations indicate if property values have held their own during challenging economic times, while a higher-than-normal increase in Listings would show the financial where-with-all of the market and how many owners (speculators) may be wanting out. Absorption Rate represents how quickly the market will absorb (purchase) any given property over a year’s time.
Consequently, depending upon the category’s importance, a multiplier will be used to give the resort a score for their performance. Of the five categories, Transaction activity is most important and will be awarded a multiplier of ‘5’. Average Price is second and each resort placement will be multiplied by ‘4’, followed by Absorption Rate ‘3’, Listings ‘2’ and the least important Dollar Volume with a multiplier of ‘1’.
As an example, the resort taking first place (8 pts) for Transactions (5 multiplier) will receive a total of 40 points (8 times 5). The last place resort (1 pt) for Dollar Volume (1 multiplier) will receive 1 point (1 times 1). The resort with the highest total score shall be deemed to have performed the best in the 2008 Rocky Mountain ski resort real estate market.
Based off of this format, Jackson Hole, WY outscored the competition with a total point value of 96 (out of a potential 120), followed by a close grouping of Summit County, CO (89), Vail (86)and Telluride (78). Steamboat and Aspen were clustered together with 57 and 53 points, respectively, while Park City (38 points) and Sun Valley (35 points) had the worst performance.
What impaired Steamboat Springs most was the high increase in Listings. With 1,992 properties for sale at year-end 2008, and with a five year average of only 1,132, it realized a 176% increase in inventory; the greatest increase of any of the eight resorts surveyed and a last place finish. This compounded the Absorption Rate calculation to only 29% of average performance, also earning a last place finish. Steamboat’s 2008 Absorption Rate was 37% but enjoyed a five year average of 126%.
One very interesting find in this study is that property values have either held their own in 2008, or may have lagged behind resulting in lower Absorption Rates, depending on your position. Average Prices in all markets in 2008 increased from their five year average. However, Telluride had the lowest increase at 108% of their $1,176,360 average price to $1,269,808 (but also scored first place in Transactions), while Vail experienced the largest gain at 177% of average, from $847,261 to an amazing Average Price in 2008 of $1,495,788. Steamboat saw prices increase 148% of average from $417,062 to $617,631.
What Telluride experienced is a question the rest of the markets will have to ask: Will property values be sacrificed to increase transaction activity? It is an important question to ponder, but a difficult one to forecast. Absorption Rates of 50% equate to a property being on the market for two years. An Absorption Rate of 100% yields a one year marketing period. 2008 Absorption Rates ranged from 66% in Vail to 24% in Sun Valley and Telluride. If sellers have the patience to wait for the economic recovery, then prices will most likely maintain course. But should they desire to sell prior to that time, reductions will most likely occur.
The Obama administration, which floated the idea in releasing its proposed budget last Thursday, says capping the itemized deduction rate for wealthy families and individuals at 28 percent would raise $318 billion over 10 years, expanding health insurance coverage while lowering health care costs.
But real estate industry groups say the change would hurt home sales and prices at a time when homebuyers need incentives, not disincentives, to buy.As reported by Inman News…Any changes to the mortgage interest deduction would devalue homes, hurting middle-class families and potentially triggering “yet another crisis in home values, even as we struggle to recover from the first,” the National Association of Realtors said in a letter to President Obama.
Below please find the letter:
Dear Mr. President:
On behalf of the 1.2 million members of the National Association of REALTORS®, I am writing to convey our concerns with your proposal seeking to modify the Mortgage Interest Deduction (MID) as part of your fiscal 2010 federal budget. The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest professional trade association. Our members are residential and/or commercial REALTORS® who are brokers, sales agents, property managers, appraisers, counselors and others with the common goal of providing full service to individuals, families and businesses that buy, sell, hold, operate or rent real estate.
The National Association of REALTORS® recognizes that our country is facing an intractable set of long-term budget and tax issues and that bold ideas and policy initiatives are necessary to jumpstart our economy and lay the foundation for growth for years to come. The National Association of REALTORS® stands ready to work with you and the new Congress to effect policy decisions that will go far in determining the fiscal and economic course the country will take going into the next decade. As you have correctly stated, the time is now to return America to greatness.
You have also rightly emphasized that housing is the backbone of our nation’s economy and have put forth a bold plan that stresses housing stability and neighborhood preservation. It is within this context that we harbor grave concerns regarding the impact of your budget proposal on the mortgage interest deduction (MID). Very simply, any changes to the mortgage interest deduction would de-value homes, hurting America’s families especially the middle-class – those who have achieved homeownership through mortgage financing. It could trigger yet another crisis in home values, even as we struggle to recover from the first.
Our current tax system does not “cause” homeownership. The tax system facilitates homeownership, and it has been instrumental in helping our nation achieve a remarkably high rate of homeownership. Our research has continuously demonstrated that limiting or eliminating the tax benefits of homeownership will have an adverse impact on housing markets and the value of housing nationwide.
Our initial analysis of your budget proposal forecasts home price declines and added damage to the broader economy because of reduced consumer spending, additional increases in foreclosures and additional increases in joblessness. The National Association of REALTORS® has embarked on detailed research analysis to ascertain the full impact of the budget proposal. However, our conclusion will not change. The National Association of REALTORS® believe the MID is the single most important tax provision for our nation and our families. Diminishing or eliminating the MID would hurt all families, the housing market and our national economy. And, at a time when our housing and real estate markets are suffering, we believe it would be irresponsible for the real estate industry and federal policymakers to consider, much less support, any proposal seeking to alter the MID.
The National Association of REALTORS® appreciates this opportunity to share our views and we look forward to working with you and Congress during the 2010 budgetary process.
Sincerely,
Charles McMillan, CIPS, GRI
2009 President, National Association of REALTORS
This proposed legislation will negatively impact all of us, no matter if you own real estate in Steamboat Springs, CO, Chicago, IL or Grove City, PA (my home town).If you agree with this thinking and how limiting home ownership tax benefits will have an adverse impact on our economy, please let your voice be heard!
Are you looking for a spectacular residence in Steamboat?Just listed is a Rich Carr designed 8,475 square foot main home with 2,052 square feet guest house situated on 70 acres with infinity pool, two hot tubs, five ponds and cascading waterfalls.This Storm Mountain Ranch home also has commanding Walton Creek Canyon views and is being offered at $17m.Please let us know if you would like to receive more information on the additional features of this spectacular residence.
Boy, am I jealous. Atlanta, GA has received more snow over the past four days than Steamboat Springs! I’m sure our friends in the Peach State are happy to see any precipitation, but if you could send some of that white stuff back our way, it would be appreciated!
This past weekend we have had family from the Chicago and Pittsburgh areas visit, and we’re sending them home today and tomorrow with suntanned faces. The temperatures for the past several days have been between 40 and 50 degrees with sun filled skies. However, we’re expected to return to more normal weather later in the week with temps between 30 and 40 degrees and the possibility of snow.
Have you ever wondered how Steamboat Springs real estate values compare to other resorts? The Rocky Mountain Resort Alliance has just published their end-of-year report and we’re happy to see that Steamboat real estate remains one of the most affordable top-tier resort markets in the Rocky Mountains.
The average sales price in 2008 for Steamboat real estate was $617,631. In Aspen it was $2,722,375; Park City $799,627; Telluride $1,269,808; Vail $1,495,788 and Jackson Hole $1,792,866. The only top-tier resort area where the 2008 average purchase price of real estate was lower than Steamboat was Summit County, Colorado, home to Keystone, Copper Mountain, Arapahoe Basin and Breckenridge, which was $583,228.
If you are interested in knowing more detail how the 2008 Steamboat Springs real estate market fared when compared to these resorts, this month’s newsletter, which will be dedicated to this topic, will be coming out by the end of this week and posted on this web site. If you would like the newsletter emailed to you immediately when it is done, please email us and we’d be glad to set you up.
For those of you who regret not buying into one of the new Steamboat Springs developments near the base of the ski mountain at pre-construction pricing, you’re in luck.Wildhorse Meadows, which sold 70% of the units at Trailhead Lodge at its selection event in the summer of 2007, has temporarily reduced several of its units back to those original prices.Trailhead Lodge, an integral part of the residential resort community developed by Resort Ventures West, and scheduled for completion this summer, will have 86 fully-furnished suites and will be just steps away from the future gondola, which will transport residents to the base of the ski area.
The lodge itself will have many amenities -several pools, (including the Grotto Spa, a lap pool, adult and kids pools), many outdoor socializing areas with gas firepits, as well as an outdoor barbecue.In addition to the Wildhorse Gondola, the master planned community will have other distinctive amenities such as a country store, post office,the Ranch House and Wildhorse Athletic Club.Owners will also be able to take advantage of the numerous walking and biking trails throughout the 47- acre community.
Current prices range from $940,000 to $2,325,000 for 1 bed +den, 2bed, 2bed+den, 3bed and 3bed+den units.
Please call us today to set up a showing to see the model and to get additional information about Trailhead Lodge.
