Archive for the ‘Exclusive Buyer Agency & Consumer Protection’ Category
Wednesday, August 11th, 2010
By Susana Field
A prospective client of mine was doing his homework and closely studying the detailed property sheets of some ski in/ski out condos for sale in Steamboat Springs, CO, which I had sent him off of the Steamboat Springs Multiple Listing Service (MLS). One detail caught his eye and he shot me off this question:
MLS 126967 mentions a special assessment. Can you provide any details?
And just as quickly, I sent him my answer. Here’s the skinny:
How Special Assessments Work
A Special Assessment is a Home Owner’s Association (HOA)-approved one-time fee charged each property owner, to go towards paying for a special improvement project. Sometimes the fee is spread out over several payments, but nevertheless it is not an ongoing fee. In the case of MLS 126967, it was to cover the cost of the exterior remodel of this particular Storm Meadows building. The MLS sheet stated that the condo owner already paid the assessment, so it won’t be a debt transfered to the future owner. This specific Special Assessment amount was $28,000.
As part of each annual HOA fee a certain amount is put into Capital Reserves for future improvements. But sometimes an HOA will vote to do an improvement even if they don’t have enough in the capital reserves fund. They will also vote to divide the shortfall due on the project amongst the owners as a one-time special assessment. Some HOAs have very healthy Capital Reserves and seldom have to do a Special Assessment. Other HOAs have voted to keep their annual HOA dues (of which the Capital Reserves portion are a part) as low as possible, and thus end up seeing more Special Assessments come their way as major improvements are needed. Some HOAs keep thier developments up nicely, while others vote both for low Capital Reserves and against Special Assessments, and their complex falls into disrepair.
How We Protect Buyers
One of the contingencies we always write into an offer is your right to cancel the contract (without loss of Earnest Money) if upon review of the Homeowner’s Association documents (bylaws, declarations, budgets and financials) and past two-year’s Annual Meeting Minutes, you find something that will not work for you. You should get a good feel for how well the condition of a property matches your personal expectations of how you’d like to see the property maintained just be strolling around the premises.
 Many of the Homeowner’s Associations in Steamboat are run by professional management companies. Two big ones in Steamboat are Steamboat Resorts and Mountain Resorts. They have the staff to keep track of all financials, do repairs, maintenance, snow remeoval and landscaping. Anything they can’t do, the can interview and get bids from contractors and oversee the work. There is a particular management person assigned to each development they run. This person often goes by the title of Owner’s Representative. They typically run the Board of Directors Meetings and the Annual Homeowner’s meetings, if requested by the Board of Directors. And are the go-to person for all the home owners of that condominium development.
We encourage all of our prospective buyers to speak with the Owner’s Rep, and maybe also the President of the Board of Directors (another homeowner elected by the HOA), to get a feel for how compatible your wishes will be with the board, and to answer all your questions. All of this can be done either before or after you get under contract to buy.
But back to your main question about a Special Assessment on a specific unit. Typically the MLS sheet states whether there is a current Special Assessment and whose responsibility it will be to pay it. Then even if it states the new owner will need to pay it, it is something that can be negotiated with the offer.
Tags: consumer protection, homeowner associations, Special assessments, steamboat condominiums, steamboat real estate
Posted in Buying Tips, Exclusive Buyer Agency & Consumer Protection, Steamboat Condominiums, Steamboat Town Homes | No Comments »
Friday, July 16th, 2010
Friday, July 16, 2010
By Ulrich,
As Exclusive Buyer’s Agents we take pride in understanding the Steamboat Springs Real Estate market and analyzing what a particular property is worth. But in tough economic times there is more to analyze and understand to help our Clients make the best purchasing decision. Let’s examine a few of these variables.
Why and how has a Selling Agent priced the property? Obviously they have conducted a market analysis complete with comparables (if they exist). They take into consideration what the motivating factors are of the Seller, Divorce, Loss of employment, health issues, etc. A current factor is also what they are competing against. A short sale or foreclosure might skew the comparables but still need to be addressed in arriving at the initial selling price.
Now it is up to your Exclusive Buyer’s Agent to glean as much information on the property and the Sellers as possible without being too invasive. We will also conduct a market analysis on the property to see if we come up with close to the same figures as the Listing Agent.
Another important, and sometimes forgotten, element is to know the Listing Agent. Like most things in life Listing Agents have trends. Some will price a property fairly while others will place an inflated price on a property for a couple of different reasons. The first is to get the listing. We need to start off with the premise that all Sellers’ believe that their property is the best in the neighborhood. So if a Seller interviews three Agents guess which one they will most likely go with? You got it, the one with the highest asking price. The second reason is a strategy. If the average property has been selling for 17% below asking price a Listing Agent may well price a property anticipating a lower offer and then using the 17% figure to justify their counter offer.
Due to our history with, and respect that we have earned in, the Yampa Valley Real Estate Community we understand these dynamics and can adjust our strategies to compensate for these variables.
There is a reason that our Clients are so loyal to us and our business model. Come find out why we proclaim and stand behind our declaration “The Best way to buy Real Estate in Steamboat”.
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Friday, March 12th, 2010
The Colorado Association of Realtors –CAR recently completed a phone survey of their members to see, among other items, what their thoughts were about the current state of the economy and how they felt about Real Estate in the next year.
The demographics were particularly interesting to me. 31% of the respondents work less than 20 hours per week as a Realtor. 57% of these have another occupation. Only 47% worked a minimum of 40 hours per week at their Real Estate craft.
23% reported that they earned less than$15,000 in 2009. 53% earned $50,000 or less. I guess that might answer the perception that all Realtors are rich and drive BMW’s. 24% say they were involved in 5 or fewer transactions in the past year. 33% say they were involved in 16 or more transactions. How much do you wish to bet that this last group is the group that works a minimum of 40 hours per week?
30% of Realtors surveyed have less than 5 years of tenure as a licensed Real Estate Agent. 82% are optimistic about the upcoming year in their local markets. The biggest issue that they report to face is the current state of lending.
As a member of the National Association of Exclusive Buyer’s Agents I can comfortably state that these demographics would simply not fit our profiles. Most EBA’s have been in the Real Estate business for decades and are dedicated to full time dedication to their craft. Along the way they saw too many examples of poor or no representation for the Buyer and decided that this end of a Real Estate Transaction needed proper representation also.
Buyer’s Resource Real estate of Steamboat is the only Exclusive Buyer’s Agency in the Yampa Valley. We are a small office of three agents yet are respected amongst our 386 peers in Steamboat. In the past 5 years two of the Presidents of the Steamboat Springs Board of Realtors have come from our office. Doug Labor was the Board President in 2004-05 and I am the current President. In addition Doug remains the Board statistician. It’s this type of leadership and dedication that separates us, and our business model.
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Wednesday, December 16th, 2009
By Susana Field
If you’ve ever dreamed of running a Bed and Breakfast in the heart of Ski Town USA, a Victorian gem has recently come on the market in Old Town Steamboat Springs.
Two blocks from the main street of Steamboat’s charming downtown, this home has a separate apartment for you to live in while your guests enjoy the home’s three private bedrooms upstairs and a separate below-ground level which sleeps six in various alcoves, with its own family room and bath. The home has gorgeous hardwood and tile floors, an open kitchen and formal dining room, a two-car garage and extra parking in the back.
Recently, the not-so-easy to come by licensing, which allows nightly rentals in the otherwise primary-home dominated neighborhood, was obtained by the current owners. This home would of course also work well as a single family home.
As Exclusive Buyer Brokers, you may know that we never list properties. We do though constantly keep our eyes peeled for properties that could be of particular interest and/or value to our clients. We then help you purchase them at the best price and on the best terms. This specific property is listed by High Mountain Sotheby’s, with an asking price of $999,900.
Please give us a call if you’d like to learn more about this or any other property available in the Steamboat Springs area.
Tags: bed and breakfast property, downtown Steamboat Springs single family home, steamboat springs real estate opportunities
Posted in Best Buys, Exclusive Buyer Agency & Consumer Protection, Real Estate Opportunities, Steamboat Single Family Homes | No Comments »
Monday, October 5th, 2009
The 2009 Legal Scan, from the National Association of Realtors was just released. It is conducted every two years and is a survey in conjunction with a comprehensive research project of the current legal environment real estate professionals face. To no one’s surprise in our office, Agency Issues remained the top area of concern. 28% of survey respondents reported agency issues being a significant source of current disputes, with 35% anticipating that number growing over the next two years.
Top among the agency issues, breach of fiduciary duties remains a common source of licensee liability. This fact alone speaks highly of our chosen profession as exclusive buyer agents (EBA’s). The service we provide clients is clean, concise and clear as to who we owe a fiduciary duty to.
More than 50% of respondents indicated that breach of fiduciary duty was the basis for a significant number of current disputes, and more than 61% ranked the issue among their top three issues. It is also the top-ranked potential future issue, and two-thirds of respondents believe there is significant need for training.
In my opinion, an equal amount of training and education needs to be provided to the consumer, and once they understand the differences in the types of agency relationships available, the more consumers will seek an exclusive buyer’s agent, who has the ability to work and advocate for buyers on any property they have a desire to own.
Among the reasons respondents cited was the thought that there existed a disturbing relationship between the lack of understanding of fiduciary duties and the need to earn a commission. NO KIDDING!
However, although EBA’s give up half of the potential revenue source in this profession by not listing property, if we do a good job for a client, they will seek an EBA to make another purchase, as well as refer our specialized services to others whom they know are looking to make a real estate purchase.
Tags: agency disclosure, exclusive buyer agents, steamboat springs real estate
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Sunday, July 26th, 2009
By Susana Field
There’s a well-kept secret, and I for one want to reveal it, shout it out, jump up and down, wave a red flag and release a flurry of “Caution” balloons.
In my fantasies, if I had a lot of money I’d produce a shocking television ad and run it as often as the Cadillac ads have run during this year’s Tour de France.
What is the one thing I want to scream from the roof tops with the same passion of a religious zealot?
This is it: That when it comes to buying property, DON’T CALL THE PERSON ON THE “FOR SALE” SIGN! That person works for the seller. That person does not work for the buyer. Pure and simple. End of story.
Think of it this way: Do you open your heart to your spouse’s lawyer during a divorce? As a professional athlete, do you tell the opposing team’s coach that today you just can’t quite see out of your left eye?
In a divorce case you should only shed tears into your own lawyer’s tissues. In athletics only your own coach needs to know you recently walked into a door. It’s the same thing in Real Estate – for your protection (for the best home at the best price and on your terms) you should only work with someone that is on your side.
This is what happens: The agent on the “For Sale” sign gets a call from you, the buyer, and he becomes the wolf dressed in Grandma’s clothing, slowly licking his lips.
Don’t be the Little Red Riding Hood of Real Estate. There is a clear path away from the woods, and it’s called having your own advocate in an Exclusive Buyer Agent.
What more can I say? You are our billboard. Please spread the news.
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Friday, July 17th, 2009
By Ulrich,
Investing in Real Estate in Steamboat Springs will, most likely, be one of the most important financial decisions one will make in their lives. Hopefully it will also become one of the most rewarding decisions. It always surprises me that when making these investments how many people try to save money by foregoing items like a home inspection. At Buyer’s Resource we strongly urge our clients to spend the extra money for this inspection. The cost can range from $250.00 for a condo to $500.00 for a normal size single family home. Even on new construction it is surprising what items a good inspection can identify.
A good home inspector is certified in a variety of fields and disciplines. Look for certification from ASHI: American Society of Home Inspectors, NACHI: National Association of Certified Home Inspectors. Additional certifications include NEHA: National Environmental Health Association, AARST: American Association of Radon Scientists and Technologists. There are even home inspectors who are qualified in Thermo graphic imaging. Using a special camera to locate areas in the home where exterior cold air can enter or warm interior air can escape.
Once the home is inspected the potential Buyer will receive a comprehensive report outlining all of the items inspected and areas of concern. There may be indications that would alert one to conduct additional inspection from people who’s area of expertise would qualify them for such and inspection, an engineer or well and septic inspector for example.
Once the inspection is complete it is important to conference with your Exclusive Buyer’s agent and identify what items are of concern and whether it is best to terminate the contract at this point or ask that certain repairs be performed. On the “Dates & Deadlines” section of the Colorado Real Estate Commission approved form the deadline is identified as to when one must submit an Inspection Objection. This is followed by the Inspection Resolution Deadline which typically is within a week of the Objection. This is the date that the inspection items issues should be fully resolved so that one can continue with the contract.
Once the Seller receives the Inspection Objection asking them to resolve the items identified they have a few options. They can simple refuse to correct any items, they can choose to correct some or all of the items or they can offer a dollar amount in compensation that will be deducted from the contracted price. Ultimately the Buyer will have the choice to accept or reject what the Seller has proposed.
A good home inspection may save the Buyer thousands of dollars down the road which makes ones Steamboat Springs property purchase an even better investment.
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Monday, June 1st, 2009
Although as Exclusive Buyer Brokers we never list properties, we do occasionally find ourselves talking with potential sellers of real estate in Steamboat. Clients who have bought homes from us eventually find themselves in need of selling those very same homes. They come to us asking for a referral to an agent that we believe will serve them well in selling their home.
I recently finished teaching a Homebuying class at our local community college and had a student who was attending the class because he had a home to sell and wanted to learn more about the process. Why had he come to my class instead of talking things over with his own real estate listing agent? Well it turns out he was using a discount broker whose sole service was to list his property on the local Multiple Listing Service. So, he didn’t have an advisor, or someone to help him through the whole process.
Before the class had ended he’d contacted me to ask my advice as to whether he should hire a full service listing agent to help him sell his property. My advice was an unequivocal yes, given this economy.
This gentleman has a home for sale in downtown Steamboat Springs, currently listed for less than 1 Million. There are presently 41 single family homes for sale in downtown Steamboat Springs for less than 1Million. And in the past 12 months there have only been 11 sales of single family homes in downtown Steamboat in that price range. At that rate, were no more similar homes to come on the market, it would take four years to sell of the homes. This man’s home has been on the market 222 days already without a single offer coming his way.
I recommended a few different agents for him to interview – ones that were, in my opinion, experts at selling the type of property he had. They would help him price the property to where it would sell, and would market it aggressively to other realtors as well as to the general buying public.
And I reminded him: He doesn’t pay a cent to the realtor until and unless the home sells, which after all is his ultimate goal.
Posted in Exclusive Buyer Agency & Consumer Protection, Steamboat Springs Real Estate - General Information | No Comments »
Friday, May 8th, 2009
This week Ulrich, Susana and I headed to Frisco, CO and attended the eighth annual Colorado Exclusive Buyer Agents Association annual convention. As the name implies, the convention was with exclusive buyer brokers throughout the state.
I find it a wonderful opportunity to visit with other associates who are also passionate about consumer advocacy in the real estate industry, and every time I return home after the meetings, I feel revitalized. Because the general public is not yet educated of the advantages of working with an exclusive buyer agent (EBA), our business model is not an easy one to have. However, commiserating with fellow practitioners gives me a time to hear other success stories from how other EBA’s have helped buyers in ways only an EBA can.
We can only hope the public recognizes the numerous benefits when working with an exclusive buyer agent. We also hope that after a good deed is done with a satisfied client and they are in their new home, that they would help spread the word by referring us to a friend, relative or associate who would also appreciate the type of service we provide.
Our guest speaker was Doug Devitre, a nationally known speaker and trainer in the real estate industry who teaches the many dynamic uses of social networking. This was the first time Doug spent quality time with exclusive buyer brokers, and he was impressed with our commitment and passion for consumer advocacy, the pureness of our services and the way we conduct our business.
Please keep in mind that if it’s not Steamboat where you are looking to purchase a property, the services of an exclusive buyer broker may not be far away. Let us know how we can help!
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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!
Tags: steamboat property search, steamboat real estate, steamboat springs mls
Posted in Buying Tips, Exclusive Buyer Agency & Consumer Protection | No Comments »
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Buyer's Resource of Steamboat
118 8th St. Steamboat Springs, CO 80487
Phone: (970) 870-8885
Toll Free: (877) 970-8885
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