Archive for the ‘Buying Tips’ Category

“Homebuying 301: Be a Savvy Buyer” Class in Steamboat

Monday, April 6th, 2009

By Susana

Do you remember when and how you first learned about how to buy a house? Was it a parent that sat you down and explained all of the ins and outs of Agency Disclosure, what affects your credit score, and how to read a Settlement Statement? Or did you learn by the seat of your pants – still not knowing what you actually signed, if you had options, or if you truly got the best deal? Fact #1: Every square inch of private land and the buildings on them, is owned by someone. This means someone had to buy it.Fact #2: For the vast majority of us, our homes are the largest single purchase we will ever make.Fact #3: There typically is not a class on it, neither in high school nor in college nor just for the general public.I am going to do something to change Fact #3; at least in this small hamlet of Steamboat Springs, Colorado (my sister from Orlando calls Steamboat “Mayberry”).

Next week I begin teaching a four-part class at CMC, our local Community college (Colorado Mountain College, Alpine Campus). The title is Homebuying 301: Be a Savvy Buyer! I am offering this class to the general public, and for a great price -for free- as I strongly believe Knowledge is Power, and that this particular class teaches an essential life skill.

Especially with incentives for first-time homebuyers, rock bottom mortgage rates (the last time they were this low, was the year I was born, and that was a looong time ago!), a record number of homes on the market, reduced prices (some drastically) and some very motivated sellers, I believe that it is time for prospective home buyers (whether buying now or in their future) to become educated!

To help teach this class, I am bringing in other experts to discuss market trends, financing options and procedures, contracts, title work, inspections, appraisals and closings. I’ll address the benefits of home ownership, renting vs. buying, current incentives, agency, contract negotiations, and how to find the best home for your money.

If you are in town and would like to attend, or know someone in town who would benefit by learning how to buy real estate in Steamboat Springs, Colorado, please spread the word and then register by calling me at 970-846-3728 or toll-free at 877-970-8885. I’d love to see you there!

Class 1: Monday, April 13 6 – 8 p.m. CMC Bristol Hall Rm 118

Why Should I Buy? , What About this Market? andHow Do I Find the Best Home For My Money? Guest: Bruce Carta, Land Title Guarantee Co.Class 2: Thursday, April 16 6 – 8 p.m. CMC Bristol Hall Rm118 What Will it Take For Me to Get a Mortgage?Guests: Kathryn Pedersen & Holly Rogers, Yampa Valley BankNote: One week off for the public school’s Spring Break. Class 3: Monday, April 27 6 – 8 p.m. CMC Bristol Hall Rm 118 What’s All This Fine Print Above My Signature? and How Do I Make Sure My Home’s Not a Lemon (Part 1)? Guests: Jane Denning, Lawyers Title Co. and  Jim Yannaccone, ASI Appraisal Services

Class 4: Thursday, April 30 6 – 8 p.m. CMC Bristol Hall Rm 118

How Do I Make Sure My Home’s Not a Lemon (Part 2)? and What Really Happens on the “Day of Closing”?Guests: Greg Pohlman, Complete Home Inspections, Todd Wichelhaus, Stewart Title and Holly Rogers, Yampa Valley Bank

Happy April Fool’s Day

Wednesday, April 1st, 2009

By Ulrich,

Happy April Fool’s day! Mother Nature is certainly playing her trick on us as the beautiful spring weather that we experienced throughout most of March has been supplanted by over four feet of snow in the past five days. We awake to another 14 inches this morning bringing our total for the year to 382 inches. With the forecast showing the next week bringing a steady stream of storms our way we are sure to pass the 400 inch mark again for the third time in four years. Of course this “trick” by Mama Nature is actually a treat for those of us who have the opportunity to take advantage on the slopes. Nice, light and fluffy it was on Monday and Tuesday (and no doubt today) as Champagne Powder can still make an appearance in late March and April. It was like skiing on a cloud and not hearing or feeling your skis set an edge.  As the airline program comes to an end this Sunday there are lots of discounts and deals to be had for the final 12 days of the season. Hopefully you can take advantage of the perfect conditions.But alas, it’s back to work trying to analyze this interesting economic market that we are all dealing with.  Steamboat Real Estate has been no exception although we have been able to weather the storm better than most. I certainly have had my share of showings and clients this winter. I guess the best way to describe the mood is one of positioning. Preparing to act once the market does turn upward and getting all of the financial ducks in a row. I also sense that nobody wants to be the first in case the market in the Yampa Valley continues to drop. My bigger fear is that once the Steamboat Real Estate market does begin to recover it will happen quickly leaving many on the outside of the fence looking in. My belief is that we are near the bottom and the time to take advantage of these conditions is ripe. Sellers do not have much confidence and are anxious to relive themselves of debt. Interest rates are at an all time low and inventory is good. As I counseled a client who believes that the current market will still drop anywhere from 5% to 10%, Why not find the property that you really want and submit an offer 10% below, the probably already reduced, asking price.

Finding the Right Steamboat Springs Real Estate Property

Monday, March 30th, 2009

With all the choices in today’s market, how do you go about finding the right home? It seems the more research you do, the more alternatives you discover.

It’s important to visualize your needs and plan ahead.  Know what you want in a home, what’s important to you, and what you can live without. Many of us start out with a champagne taste and a beer pocketbook, so it’s important to be realistic.

Where and what you buy will affect you for as long as you live in the house.  If you are having a tough time getting your priorities in order, talk to us to help you prioritize.

For first-time home buyers this is a new experience, so it’s especially important to do your homework.  But if you currently own a home, you know exactly what’s lacking. You may need another bedroom or bathroom, or a good school nearby.

First, decide where you want to live. Routt County covers a lot of territory, but it’s not to say you can’t live in one corner of the County and work in the other.  It’s more common than one may think.  Initially, people think the roads are always bad in the winter, but realistically, there are only a handful of days when the roads are treacherous.  And when they are, you just have to learn to take your time.  Regardless to what location you decide, you should practice the commute before you make a commitment.  Weather not only also plays an important role in commuting decisions, but also for the lifestyle.  Northern Routt county and the areas surrounding Steamboat Lake receive the most snow, followed by Steamboat Springs and then South Routt.  However, the further west you go, the more you reduce elevation, precipitation and increase temperature: providing less snow to shovel during the winter and more of a variety of vegetables to grow in your garden during the summer. 

People with children have other major considerations: school and apre’s school.  If you have active kids who like to be involved with after school activities, a location closer to their school should be a definite consideration.

 As mentioned earlier, lifestyle is an important consideration. People who frequently dine out, socialize and like to attend all of the great events Steamboat Springs offers are probably better off in town.  In other words, make sure you’re in close proximity to the things that matter most.

It used to be that homes came in a limited variety, but today, you have many choices. In addition to the traditional single-family home, you can buy a townhouse or condominium. 

In Routt County, you can find almost any combination anywhere. But whatever you decide to purchase, make sure the rules and regulations, as well as the by-laws, match your lifestyle. This type of housing is great for people who want to own their own space without being responsible for mowing the lawn or repairing the roof; a management company most likely will handle that, giving you more freedom to enjoy the Steamboat lifestyle.

On the other hand, you’ll pay fees for these services.  In addition to checking the documents and financial soundness of the homeowner’s association, you must determine if the monthly fees are worth the services and additional amenities such as a swimming pool or exercise room.

Affordability can be a factor not only in the type of housing, but whether it’s a new or an existing home.  Old houses often have fine woodwork or interesting nooks and crannies not normally found in new homes.  They generally sit on smaller landscaped lots with mature trees and grown bushes.

New homes may cost more, but you can make many more decisions on amenities, colors, carpeting and fixtures.  Make sure you’re dealing with a reputable builder, and have an attorney review all documents.

Selecting a real estate professional is the important first step when beginning your search.  As exclusive buyer brokers, the professionals at Buyer’s Resource sit by the side of our clients throughout the entire process.  Our business model is that of counselors, not salespeople, for all that we do is help our clients determine the type of property they want to own, exhaust the market to locate that type of property, provide the due diligence to make sure it is the type of property they want to own, and help them negotiate the lowest price and best terms on the property of their desires.  Give us a call today to begin your Steamboat Springs real estate purchase in the right direction!

The Bottom of the Market is Now!

Friday, March 27th, 2009

The old adage “There’s no time like the present” might not first come to mind when looking at today’s Steamboat Springs housing market. But these homespun words of wisdom are quite appropriate when a closer look is given. I would like to point out these favorable factors that can contribute to making this, for many consumers, a most opportune time to buy a home:

• Inventory is up. When the market is hot, new listings can’t replenish the supply of homes fast enough, and that works in the sellers’ favor. In today’s market, the opposite is true, providing more choices for buyers.

• Sellers are motivated. Homes that in a hot market would have been snapped up in days are now lingering unsold for weeks, even months. Factor in bank-owned properties due to the recent and unfortunate spike in foreclosures and buyers find themselves in an advantageous negotiating position they haven’t enjoyed for years.

• Interest rates are down. Recent cuts in the prime rate by the Federal Reserve have sparked drops in interest rates, which nearing the end of March are below 5 percent for a 30-year fixed-rate mortgage. While banks have tightened lending requirements in the wake of increased loan defaults, homebuyers with few credit problems qualifying to purchase a home they can afford should still have little trouble securing favorable financing terms.

What’s more, a market climate like this especially favors buyers who don’t need to sell an existing property before their purchase, buyers like first-timers and those looking for a second home. This tilts the scale even more towards many buyers.

I would also like to add more specific reasons why I feel the next few months will be the best time to buy Steamboat Springs real estate:

• Sellers typically stick closer to their price right before ski season because they know they will be able to receive the lion’s share of rental income within the next several months, and they will also be able to use it during ski season.

• Along with that, after just receiving the rental income, spring is the time of the year they are most motivated to sell because they have just captured the ski season revenue and are now looking at several months of carrying costs with no income.

• With ski season coming to an end, so will showings until July, which is when most brokers will begin to see activity pick back up.  With a cover letter that I would include with the offer(s), I would certainly point this out (along with some of the other items I’ve outlined here).

• In several condominium complexes there could be two or more similar units for sale and within the same price range.  They will be fighting over the same buyer.  Should one of those go under contract, then the remaining one would be the only other choice for the second buyer coming in.  If that is the case, the buyer of the second would not have as much leverage as if there were two to choose.  Furthermore, I would imagine the first property to go under contract would be the most desirable from a buyer’s perspective due to the fact that a deal was made.

• Our office web site had a record number of hits in February and March, and showings are beginning to pick up for us.  In fact, this was the busiest Jan / Feb / March I have had (I think I made it to four drop-in hockey sessions all winter.).  I’m hoping this continues and we would have a pretty active summer.

But regardless of the situation, for every buyer, the key is to work with a real estate professional that knows the Steamboat Springs real estate market and specializes in representing buyers.

Give us a call / email today!

When is the Bottom?

Tuesday, March 24th, 2009

 When is the bottom of the market? Yes, these are interesting times we live in and we all wish we had the crystal ball to peer into to answer this question. Does the recent two week Stock Market surge indicate that we have hit bottom or is this just a teaser?  As consumers we are feeling particularly sensitive to our losses that all of us have incurred over the past year and we feel taken advantage of. Going forward we also know that we will again invest in a variety of commodities including stocks and Real Estate. What we don’t want to have happen is invest too early. Or do we? What is the worst case scenario, investing too early or too late?  Most experts (is there such a person anymore?) tell us that once the market begins to rebound it will do so very quickly and without notice. Real Estate values in Steamboat Springs have fallen somewhere between 5% and 15% depending on the market segment.  When compared to the 52% + drop in stocks this seems relatively little but it can still hurt.  If we look at what we can predict it may help to make a decision.  We do know that historically we have had the ability to rebound from various market tragedies and, in every case, come out stronger than before. We also know that Seller’s are motivated and will look at almost any offer as well as get creative in finding alternatives in selling their property.  Yes, we may still see some additional devaluation but the one thing we certainly don’t want to do is miss the opportunity. This is a perfect time in Steamboat Springs Real Estate to locate a property (or properties) and negotiate a deal that will leave you with a property that you can enjoy as well as bring you a great return on your investment in the not too distant future.

An Important Step in the Due Diligence Process

Thursday, March 19th, 2009

When buying Steamboat Springs real estate, almost every property is subject to a rules and regulations involving a homeowners association (HOA).  It is important for an owner to know what is involved with the association.

HOA’s dictate how the property can be used and enjoyed via a set of HOA documents.  These need to be carefully reviewed, as they could be in direct conflict with the very reason a buyer may want to use the property.  Furthermore, if the association has annual meetings, request and review the HOA meeting minutes from the last two years, as well as the HOA budget.  This gives the buyer a good idea of the pulse of the association, points of contention, and what potential capital improvements (additional costs) there could be in the near future.

When assisting clients in a purchase, as your exclusive buyer’s broker, we always keep an ear on the tracks to know the latest news on all of the HOA’s in Steamboat Springs, as well as reviewing these documents with our client and provide an opinion as to the health and vitality of the association.