The vast majority of U.S. real estate transactions begin as advertised listings, held by real estate brokerage firms. Sellers begin the process by selecting an agent to represent their side of the transaction and agree to a listing price. These listings are then readily promoted by the agent’s brokerage firm, in hopes of attracting interested buyers.
This, however, is not the only way you can buy real property. Alternative buying opportunities, including foreclosures and auction sales, provide additional paths to homeownership. While listed transactions still dominate the real estate market, informed buyers will want to consider all their options. One advantage of working with the Exclusive Buyer’s Broker’s at Buyer’s Resource is that we will exhaust the market to locate the type of property you are seeking.
If you decide to investigate alternative buying opportunities, make sure you take time to become fully educated on the process. Educating buyers is our primary function! Foreclosures and auction sales are unique, involving specialized knowledge and training. You may find attractive opportunities, but you must also be prepared to avoid potential pitfalls, and we would be happy to discuss all of the options with you.
Of course the United States of America has long been touted as the land of opportunity. We have a long history of welcoming migration from all over the world with open arms. Opportunity is what has built and sustained this nation since its inception.
However this article is about the Land of Opportunity in the Steamboat Springs Real Estate market. As with all of nature everything is cyclical. On a daily basis we see the morning transition to dusk then night to be followed by dawn. On a yearly basis we have our four seasons, each unique in its own way but winter always follows fall. So it is with international and national economies. Looking within the Yampa Valley economy and Real Estate in particular we have enjoyed an inordinate period of appreciation which has often bucked national trends. Some even went as far as to claim that we were recession proof.
This latest economic downturn has many features that we have not seen before. First in the speed in which it set in. Secondly the width and breadth of the calamity. It has been a long time since we have seen a financial crisis that has been so international and across so many segments of the income rainbow, in both personal and business. Routt County was not able to escape this latest round either. In retrospect one might even claim that we were overdue for a correction and in the larger scheme of things it may not be all that bad. As with all cycles, it’s always darkest before the dawn.
As our dawn approaches, and we know it will, we have opportunity in Real Estate whether one is seeking a sound investment or a primary residence. We have strong inventory, sellers are motivated and Steamboat is in a unique position of being a non mature resort destination with a lot of upside. The key is to examine and understand the market and see where these opportunities lie. As Exclusive Buyer’s Agents understanding the marketplace and knowing where these opportunities are is one of our primary functions. One prime example is fractional ownership. Currently there is simply no funding available for fractional ownership. Again, inventory is available and sellers are motivated so the only way to purchase is either cash or owner financing. Cash buyer’s have a tremendous opportunity to take advantage of this situation knowing that, due to the cyclical nature of all things, eventually funding will be once again available making this product available, more desirable and hence more valuable.
This is just one small example of what people can do to take advantage of our Land of Opportunity!
A gentleman and his adult son walked into our office last weekend after first finding us on this website. They were looking for a two to three bedroom condominium near the ski area to occassionally use for themselves but otherwise to earn income for them through a managed nightly rental program.
They wanted it turn-key, furnished and ready to go, and they didn’t want to spend over $400,000. Plus they had only 24 hours before they were heading back home to California.
For that afternoon and the next morning we looked at properties non-stop. Because we were on such short notice I could only get us into vacant units; thankfully for buyers (but not for sellers obviously) there are A LOT of vacant units. And still we didn’t see everything before they had to get into their car and head west!
I’m going to return to some of the units and take video to e-mail them. I’m going to run the numbers on an Investment Spreadheet we have. And I’m going to keep my eyes peeled for anything else that comes on the market.
Twenty years ago was the last time they were in Steamboat. I repeat: twenty years. “Telluride and Aspen arte too expensive”, they said. “And everything around Vail, Copper and Breckenridge is too accessible to the Denver crowds. Steamboat”, they decided, ”is just right.”
And I’m sure the turn-key, nightly-rental condominium they decide on will be “just right” too. After all, they have so many to choose from, and so many at just the right price.
But if you’re coming to town, you might want to give yourself more than 24 hours to look. There is just so much to see!
The real estate market may be slower than usual right now in Steamboat Springs, Colorado, as in most of the nation (world?) but in my opinion it won’t be like that in Steamboat for long. And I’m even willing to place some bets. (Ask my husband and he’ll tell you I only place bets when I know I’m going to win – so watch out!)
What, you may ask, do I base this on? One word: Technology. And the human need for sanity. (Okay, seven words.) More specifically: technology and how we humans are now interacting with it; technology and the impact that it is having, and will continue to have at an accelerated rate, on our society, our culture, our way of working.
Sure Steamboat is expensive, but not that expensive. A lot of people have jobs which produce the income needed to be able to buy a decent home here (and the necessary toys required to enjoy a ski town). So, what’s kept them away from Steamboat? Their being tied to metropolitan areas for work.
The internet and cell phones started changing that already a few years back. We apparently already have 700+ people living here that have “Location Neutral” jobs. What I’m seeing though are all the jobs that are being created by these new technologies that are inherently Location Neutral. As manufacturing jobs leave our nation (of which there never were very many in Steamboat anyway), Location Neutral jobs are taking their place. And what better place for people to live, when they can choose ANYWHERE to live, than Steamboat?
If you’re sitting in front of a computer all day, the human need for sanity (in my opinion) requires beautiful vistas to be right outside, fresh air, and outdoor exercise.
When you spend your days working within the virtual realities of cyberspace, the human need for sanity demands that we have face-to-face interactions with people on the street and the grocery store who know our name and our history. What does Steamboat have if not an extraordinary community within a lovely, user-friendly setting?
Okay. Which way are you going to bet? Show me your money.
I am pleased to announce an amazing purchase that I assisted a client with that closed last Friday. Their purchase was for a new, 4,000 square foot, four bedroom, four plus bath townhome. The construction quality hard to beat in any market. Listed for $2,628,630, we were able to negotiate a purchase price for slightly under $2m. I am very happy for my clients, for it is a quality property in a highly sought after project in Steamboat.
This purchase was not an easy one to consummate. My clients visited Steamboat in January and we looked at numerous properties. After returning home, they decided to concentrate their efforts on Cimarron, which is another townhome project that had a number of resales listed. We made concurrent offers on several that were for sale. None, however, came down to a price we thought reflective of the current market.
We then set our sights on a couple of other projects, and looked hard at two developments that also met their interests. The one they decided to focus on this time had a variety of developer and resale properties for sale. We made offers first on the developer inventory. We got very creative in our offers, but the developer did not go as far as we had liked. We then focused on the properties for resale within the project. We got close, but not close enough. After taking a step back, we decided to reapproach the developer, and after over thrity offers and counter offers, a deal was struck!
We thought the hard work was over, only to find out the new lending environment created some additional surprises. This created the need for a contract extension, which the developer was willing to grant. After jumping through a couple of high and narrow hoops, my clients were able to close and are now happy owners.
I share this with you to show you that oppurtinities do exist in today’s market, but it does take a certain amount of will and determination to find them. These clients had the desire to make something happen, and their tenacity provided that opportunity, which I applaud. After their first stay in their brand new townhome, I’m sure they will be very excited and pleased with what all of their hard work has provided.
As exclusive buyer brokers, we offer dedicated service to help you locate the best buy that meets your needs, then assist in helping you negotiate the lowest price and best terms! Ask any of our clients, and I am sure they will agree.
Many of us here in Steamboat are wondering what happened to our summer?With a strange weather pattern affecting western Colorado over the last few weeks, with cooler weather and intermittent rain showers, it feels more like fall than summer.However, the truth is, we’ve only received .72 inches of rain this month, according to an article today in the Steamboat Pilot, which is half of the average amount we typically receive in June, our driest month of the year.The upside is that we’ve been able to conserve water by not having to water our lawns!
If you are interested in conservation and energy efficiency, the Housing Economic Recovery Act of 2008 amended the Energy Policy Act of 1992 by increasing the maximum dollar amount that can be added to an FHA insured mortgage for energy efficient improvements, which are known as Energy Efficient Mortgages (EEMs).The base FHA maximum mortgage amount limit is calculated on the value of the home, however, the mortgage loan amount for an EEM can be increased by the cost of effective energy improvements, which is great news for those of you who would like to make your home a little “greener”. According to HUD’s website, the maximum amount of the portion of the EEM for energy improvements is the lesser of 5% of:
* the value of the property, or
* 115% of the median area price of a single family dwelling, or
* 150% of the conforming Freddie Mac limit.
For more information on the EEM, please contact a local lender, or you can call FHA’s Resource Center at 1-800-CALL-FHA (1-800-225-5342).
“REALITY IS THE LEADING CAUSE OF STRESS AMONGST THOSE IN TOUCH WITH IT.” Lily Tomlin. The reality of the recession has been stressful for many of us, but various pieces of news this week show things may be starting to turn around. Friday’s important Jobs Report showed there were 539,000 jobs lost in April versus expectations of a 610,000 loss, representing the smallest job loss since October. Even though the Unemployment Rate moved higher and hit a 26-year high of 8.9%, this is a lagging indicator, and many other data points hint that the worst could be over for the job market, and could lead to lessening stress in this area during the months ahead.Speaking of stress, last week’s “stress test” results showed the banking system is on the mend, and in better shape than it was a few months back. 10 of the 19 largest banks will need additional capital to cope with potential future challenges, but as a whole the banking system is solvent and regaining health. A crucial point to remember is that almost all of the institutions under scrutiny elected to choose the cash flow method of asset valuation, as opposed to the mark-to-market method. This would not have been possible without the Financial Accounting Standards Board (FASB) allowing for this change last month. Positive news came from Wal-Mart, saying that their sales for April were better than forecast. And they say, “As goes Wal-Mart, so goes the entire retail sector”, so this may mean health is also coming back to retailers at large. Bonds attempted to regain some ground in the early part of the week, but the good news from Thursday’s bank stress test, the better than expected Jobs Report on Friday, and the rally in Stocks caused Bonds to fall below key support levels. As a result, Bonds & home mortgages ended the week slightly worse than what it began.All of this relates favorably to Steamboat Springs Real Estate. We still have a climate of anxious sellers despite the signs of an economic turnaround. Opportunity in all sectors remains.
It’s time to be OUTSIDE!!!So whether your plan is to rollerblade the Yampa River core trail, mountain bike Spring Creek trail to Buffalo pass, play eighteen holes of golf at the Haymaker Golf course or simply have a picnic lunch in little toots park, it’s time to enjoy the weather. On the way , no doubt, you will see people of all ages on the soccer and baseball fields, some kayakers and fishermen. As you pass them just give them a nice wave and a friendly Steamboat hello as is our custom. Steamboat Springs, after all, is all about recreation and friendliness.
Speaking of friendly, there is a very friendly deal on the market in Quail Run condominiums. It is a two bedroom one bath unit with an attached garage and 993 square feet of room for $299,900.00. This second floor unit was built in 1999 and has vaulted ceilings so it seems like there is even more room along with a gas fireplace. The next lower priced one is listed at $369,000.00 and the last one of this size to sell went for $ 392,000.00. One of the unique items at Quail Run is that all the heating and hot water is included in the HOA fees. At $313.00 per month this includes water, sewer, trash, cable TV, exterior building maintenance, exterior building insurance, lawn maintenance, snow plowing and shoveling and a common area hot tub.
Also included in the HOA, and something you should always ask about, is Capital Reserves. A portion of every month’s dues goes into a fund for future maintenance or improvements. Most healthy home owner associations have this valuable tool in place. Most healthy home owner associations also have a 10 to 20 year maintenance plan in place with costs and timelines. This allows you to look into the future and see what is on the horizon as far as needed repairs. The Capital Reserve account can be used to fund these improvements in a couple of ways. If it is a minor project then the entire amount can be taken from this account. If it is a major expenditure then this account can be used to leverage a loan to pay for the repairs and/or replacement of the item. This method means that there should be no major special assessments dropped on your door step. Also remember that once you own a property then you are a part of the HOA and can, and should, be actively involved in the HOA’s decision making.
Spring is finally here in beautiful Steamboat Springs, Colorado! Numerous flowering crabapples have bloomed in glorious shades of white and pink over the last several days, and colorful flowers are popping out everywhere. Memorial Day Weekend marks the first of numerous events scheduled for this spring/summer season, including the Historic Places Bike Tour, the Urbane Rail Jam and the 29th Annual Yampa River Festival.
If you have been waiting for that special opportunity to purchase a second home here in Steamboat Springs, Bear Lodge at Trappeur’s Crossing is offering a great financing deal to their next 5 buyers. Secured through Countrywide/Bank of America, the introductory rate will be 2.5% for the first year, 3.5% for the second year, 4.5% for the 3rd year, and 5.5% for the remaining years of a 7 year ARM. Current prices range from $299,000 for a 1 bed/1 bath up to $1,595,000 for a 5 bed/5 bath unit. The property offers numerous amenities, including indoor/outdoor pools, hot tubs, sauna, winter on-call van shuttle service, ski valet, tennis courts, fitness center, and heated underground parking.
Please call or e-mail us for more information about this great opportunity in Steamboat – and have a great and SAFE Memorial Day Weekend. If you’re in Steamboat this weekend, stop by our office – we will be open Sat., Sun., and Mon., from 10 a.m. until 2 p.m.
The month of March is typically when a lot of out of town skiers descend upon Steamboat Springs during their spring breaks to take advantage of our Champagne Powder.Now that the ski mountain is closed, and we are officially in our “mud season”, it is time for the locals of Steamboat to take their spring break.The few visitors that are in town right now are wondering where the heck everyone has gone- and why are so many restaurants closed?But never fear, all will be back to normal before you know it.For those of you lucky enough to get away this week – have a fantastic time!
There is great news for those of you looking to purchase real estate with a USDA loan!Today marks the increase of their income limits – (for households between 1-4 people, it is now $92,000 and for households of 4-8, it is now $121,450).This is an increase of $31,000 for a household of 1-4.
Here are some quick facts on USDA loans, as provided by Kathryn Pederson of Yampa Valley Bank:
100% financing
No mortgage insurance
30 year fixed rate loan with no pre-payment penalty
Great rates!
2% fee paid directly to the USDA can be financed (102% financing)
Most condos are acceptable
30-60 day closings are typical
Do not have to be a first time homebuyer
Please let us know if you have any questions about buying real estate in Steamboat Springs .And for those of you who have been taking Susana’s “Be a Savvy Buyer” class, (or for those of you who would like to join the last two classes), don’t forget we are skipping this week for spring break and will be resuming class next Monday, the 27that 6:00 p.m.Please call Kristin at 970-819-8726 for details.
