Easter weekend marked the end of the Steamboat ski season, so “mud season” is officially here.Although we had slow periods of snow throughout the season, we still ended up over the 400-inch mark, which is only the seventh time we’ve done so.
One of the great things about the mud season is that potential buyers can more easily see those condos on the market that were rented during the ski season.By the way, if you are considering buying and would like to learn more about the buying process, Susana Field still has a few openings in her free 4-class series that starts tonight.“Homebuying 301: Be A Savvy Buyer”, which is tonight, Thurs., April 16th, Mon., April 27th and Thurs., April 30th all from 6-8 p.m., will address topics such as “Why should I buy”;” How to Find the Best Home for My Money”; “What Will it Take to Get a Mortgage?;” “What’s all This Fine Print Above My Signature? ; “How Do I Make Sure My Home’s Not a Lemon”; and will feature local experts from the mortgage, title, appraisal and inspection fields.
If you would like to sign up, please call Susana at 970-846-3728
The way the market is right now, there are three types of buyers that really have it the best if they want to buy a home, townhome, condo, whatever, in Steamboat Springs, Colorado.
In fact, if you are one of these types of buyers (you lucky devil) and you haven’t made an offer on a property yet, the question is: What are you waiting for? Certainly not for more money to fall on your head, I hope! (Especially if you are a first-time home buyer, but also if you’re an interested buyer that can get one of these “at crazily-low interest rates right now” mortgages!
So, the three types of buyers who really have it made in this market are:
1. A cash buyer, of course, always has it good because: A. They don’t have to sell a home before they can buy a home. B. They don’t have to worry about getting a loan, (which especially is problematic if you are a business owner used to relying on stated income loans – these are just not happening; at least not at any great rate - or just about anyone that had credit or income glitches in the past two years). C. Sellers love cash; they don’t have to worry about you not qualifying for a loan, and typically you can close on the property faster than when a loan has to be gotten (up to 3 months these days). Because sellers like cash so much (don’t we all?), the home buyer in Steamboat Springs who has cash is in an especially strong place to negotiate!
2. The 2nd home buyer is the next home buyer that has it good right now, and typically for reasons A.(above): Not having to sell a home before they can buy, and B. Although this buyer needs to get a loan, the mortgage rates are so ridiculously low right now that even a possible cash buyer would be smart to save their cash and take out a loan! Savvy home buyers know that there is nothing like using cheap money to help a homeowner grow an incredible amount of wealth!
3. But it’s the first-time homebuyers that really, really, really have it the best right now. Why? Again, for reason A. They don’t have to sell a home; along with the 2nd home buyer’s reason B. Mortgage rates are so low that it is ridiculous to not borrow money to buy a home! But what the first-time homebuyers have over all the cash buyers and the 2nd home buyers is C….(drum roll please)…If they close on their new home by December 1st, 2009 they will essentially get a free check from the government for $8000… as long as they don’t sell that home for three years.
First-time home buyers are considered to be anyone that hasn’t been a homeowner for the previous three years. That flabbergasted me at first – I thought for sure a first-time home buyer would mean someone who truely was a first-time home buyer, meaning: ever! But alas, what did I know!
And I say $8000, because the law says 10% of the sales price, up to $8000. We all know that you cannot buy a home, townhome or condo in Steamboat Springs for less than $80,000, so it is all a mute point since $80,000 x 10% = $8,000 = any home you can buy in Steamboat!
Yes, they get this as a tax rebate, which means they have to wait until they file their 2009 tax return before they see any money. (So, unfortunately no, they cannot use it towards their downpayment, which is a real shame.) But, let’s say they don’t even owe $8000 in taxes. Let’s say they owe $3000. Well, that $3000 will no longer be owed, PLUS the IRS sends them a check for the balance; in this case a check for $5000!
I repeat: The government is paying them $8000 to buy a house! And the mortgage lenders are practically giving money away at such dirt-cheap rates! Can you just imagine how nice that 5% (or less) loan will look in 10, 20, 30 years when the rates could be back up to 18%! Not to mention the appreciated value of your Steamboat Springs home, and all of the enjoyment you’ve had living there!
Yes the first-time homebuyer needs to have had a steady income which looks nice on the past two tax returns, and yes they should have very little debt (ideally not even a car loan) and also great credit. But they don’t even need downpayment money if they qualify for a 100% USDA loan!
As a friend put it: “Oh, I wish I didn’t already own my first home!” But I reminded her: “Yeah, but just think of all the years you have had to enjoy it, and all of the money you have made by not paying rent! Quit complaining!”
If you are a first time homebuyer, give us a call! If you are a second home buyer, give us a call. And if you are a cash buyer, with all of the great inventory available your options are practically unlimited. Everybody else, especially those of us who would A. Need to sell before we could buy something else and B. Wouldn’t qualify for a loan anyway…Well I guess it is just not our time, but remember: Patience is a Virtue! And for those of you that can, it is a great time to refinance!
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 118Why 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
It is difficult to believe that all of the mortgages that started this economic mess were, in actuality, such a small portion of the overall real estate market. The Wall Street Journal, Moody’s Economy.com, Reatly Trac, the National Association of REALTORS and Forbes site some interesting facts…
There are 76 million households in the US that own their home and 24 million of these are free and clear of any mortgage (31%).
There are 52 million homes with mortgages and 97.2% of these are not in foreclosure, 93.8% of these homes are current on their payments!
More than 1,000 banks closed in 1930. Only 14 US banks were taken over in 2008.
Interest rates are at historic lows. Lower rates mean greater buying power!
The new $8,000 tax credit is now available for first time homebuyers (defined as someone who has not owned a home in the past three years), making homeownership even more attractive.
Specific to Steamboat Springs real estate, there has never been a better selection of properties to choose from.
On a percentage basis, sellers of Steamboat Springs real estate are taking less on a percentage basis off of their list price than ever before!
The downtown and ski base area revitalization will improve the “Steamboat Lifestyle” even more.
Have we reached the bottom of the market? Some indications are that we have. The trouble is, we won’t know exactly when it hits until after the fact.
It is never too late to begin your search. Give us a no-obligation call today to discuss the many opportunities that exist when purchasing a Steamboat condo, home, town home, ranch or land parcel.
Yesterday I shared with you, here on our homepage, the Steamboat Springs real estate sales’ numbers from January 1st 2009 to March 21, 2009 (post can be found in our Blog). To compare it to this same period in 2008 and 2007, the Total Sales, Sales Pending and New Listings numbers look like this:
20092008 2007 Total Sales:38 133 207 Sales Pending:29 6 3 New Listings:332 51 7
Is there any question that this is a buyer’s market? The numbers are all inverted, meaning there is a lot of available inventory to pick from, and for the most part you can take your time looking, analyzing and selecting the property which best suit your needs. The best terms can also be had now because of the historically, incredibly low mortgage rates, in addition to many sellers being willing to be flexible and creative with terms such as move-in dates, covering repair of inspection items, etc. And now, regarding getting the property at the best price? What if we look at what a home sold for, compared to what the asking, or list, price was? _________________________________________________________________________________
2009HIGHLOWAVERAGEMEDIANTOTAL $LISTING#
LIST $: $4,200,000, $42,500, $670,390, $399,250, $25,474,820 38 SOLD $: $4,100,000, $40,000, $624,318, $370,000, $23,724,120 DOM: 718 24 240 204 Sold/List $: 98% 94% 93% 93% 93%
________________________________________________________________________________________ 2008 LIST $: $5,850,000, $10,000, $646,041, $385,000, $85,923,500 133 SOLD $: $5,400,000, $8,000, $616,983, $374,900, $82,058,833 DOM: 1756 0 265 127 Sold/List $: 92% 80% 96% 97% 96%_________________________________________________________________________________________ 2007 LIST $: $5,000,000, $25,500, $579,572, $365,000, $119,971,423 207 SOLD $: $4,375,000, $21,000, $558,575, $357,500, $115,625,142 DOM: 1004 0 179 102 Sold/List $: 88% 82% 96% 98% 96%
____________________________________________________________________
If I ignore the fluctuations of the highest and lowest priced properties, I can see that the average home, which sold for 96% of the asking price in both 2007 and 2008, dropped only 3%, to 93%, this year. The median dropped 4 to 5%, and the total again only 3%. And when you look at the actual average and median prices, you see that they have increased each year!So yes, total transaction numbers have dropped tremendously (207 transactions down to 38), as well as total sales in dollars ($116K down to $24K), but average prices have gone up ($559K to $624K), as well as median price (358K to 370K). Bottom line: Lots of properties to choose from, great mortgage rates if you can qualify, or maybe you have cash, and although prices have been rising it does show that Steamboat real estate prices have been, so far, recession proof. Or, others could argue that the prices are unrealistically high, given the economic pulse, and that is why so few have sold. Will they stay that way, or start dropping? You’ll have to stay tuned! Our take: We’re expecting to see some price drops, at least until the market turns around, at which point prices will be heading back up.P.S. If you noticed and are wondering why the most expensive properties had so many days on the market (DOM), they were all new-construction spec homes, which were listed maybe even before they broke ground, and didn’t go under contract until they were closer to their completion date.
It seems like every day a friend is asking me: “Are any homes even selling in Steamboat?”
And what do I tell them? Yes, homes are selling, but not a lot.
We’ve seen a lot of activity as far as showing people properties, and have heard that other agencies are doing the same, so people are looking. And folks are looking for serious deals, of which we don’t have a lot; Steamboat’s home owners, knock on wood, have not been forced into foreclosures, for the most part.
So, what’s selling, exactly? I thought I’d take a close look atall of the “Solds” since January 1st of this year.
On January 1st there were 758 residential properties on the market in Routt County. Since then, 38 have sold. And while those 38 were selling, an additional 332 new listings came on the market! I don’t even think I want to do the math on that one! And 29 homes are currently under contract (pending).
Of the 38 that sold in the past 2.5 months, the breakdown looks like this:
·9 Timeshare/Fractional
(All at the Ski Area base)
·9 Townhomes in Steamboat
(2 in the Fish Creek Area and 7 in the Mountain Area)
·6 Condos in Steamboat
(3 Downtown and 3 in the Mountain Area)
·6 Single Family Homes in Steamboat
(3 Downtown, 2 in the Mountain Area, and 1 in the South Valley)
·4 Single Family Homes in Oak Creek/Stagecoach
·3 Single Family Homes in Hayden
·1 Single Family Home in North Routt
Tomorrow I’ll share with you, here, what the homes sold for and how the final sales prices compared to the asking prices. So stay tuned!
This morning I was asked via email by a client who is looking for a single family home in Steamboat Sprigns. I thought his question was a good one and I could not only share it with you, but also my answer.
He writes: You focus a lot on $/sq ft but, thinking back, I remember our agent in COS (Colorado Springs) focusing on sales as a percent of asking price and most sales were going for 93-95% of asking price there. I was wondering if you had looked at sales as a percent of asking prices?
I give much more credibility to the ‘selling’ dollar per square foot than percent of asking price. The latter is based on a list price, which could be out of character for the market and only shows the relationship between what that particular property sold and its list price. What if the property is initially priced too high for the market (I’ve never seen that happen before) but then the seller ends up taking a price that was more reflective of the market. Looking at the sales to list percentage doesn’t necessarliy compare other like kind properties to help determine its market value. In other words…
A house could be listed for sale at $500,000 and say it sold at $450,000, which was fair market value. That means the property sold for 90% of list price. It could have been listed at $450,000 and sold for $450,000, equating to it selling at 100% of list. If the seller would have more appropriately priced his/her property to meet the current market in the first place, he/she should have listed it closer to market price, which would have equated to a higher sales to list percentage. It also may have reduced the time spent marketing the property and subsequent carrying costs. Consequently, this number is relatively arbitrary because the true value of a property is what it sells for, not the relationship between a list price and sales price. One thing that this number does show is market volatility.
In our quickly appreciating “seller’s market” in 2006 and 2007, sales prices were around 97% of list price, were sellers were sticking closer to the price they wanted to sell their properties for, and buyers were willing to pay those prices. However, in a “buyer’s market”, sellers are more flexible in their prices and a larger list price to sales price spread has been seen.
But to determine the value of an individual property, the best calculation is by taking like-kind properties that have sold to the subject property, and dividing the square footage into the price the property was purchased for. This number would give you a relative value of the property you’re looking to purchase, no matter what the size.
As an example, say a home in the same subdivision with similar quality sold only a month earlier for $500,000 and was 2,500 square feet. That property sold at $200 per square foot. The home you are looking at is 3,150 square feet, so its relative value is $630,000. Adjustments may be made for lot location, views, condition, quality, the length of time between the comparable property was sold, and so on. But this calculation is more useful in determining property value than going off of a sales to list percentage.
Once we locate the property of your dreams, we conduct our own comparative market analysis to determine the value of the property you want to own. One of the methods we use is a dollar per square foot calculation. As your exclusive buyer broker for Steamboat Springs real estate, we not only want to make sure you are buying the right property, but also the right property at the right price!
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.
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!
The first part of this message is for the men only. If you are a female please avert your eyes for the next few sentences.Alright, no peeking! O.K. Guys, this is your only warning. DON’T FORGET VALENTINE’S DAY! No excuses, you have two full days warning, don’t mess up. Ladies may now rejoin the conversation.Over the past several weeks I have had an opportunity to view homes in many areas of Routt County. I sometimes forget how many nooks and crannies there are in the Yampa Valley and all have some sort of incredible view. It might not be the Ski area or Hahn’s Peak, Sleeping Giant or the Flat Top Wilderness Area but all have something amazing to look at. Steamboat Springs, which is the County seat, is centrally located within the County. You can pretty much be assured that from anywhere within the County to Steamboat will take less than 40 minutes.Real Estate in Routt County is not just a business but a personal sightseeing adventure.One of the more underappreciated aspects of Steamboat Springs and Routt County are the way the roads are maintained in the winter. I tell people that this is the only part of Mother Nature that we really have to deal with. No Hurricanes or Tornados not severe flooding and no major earthquakes.All we have are those little white flakes falling gently to the ground.Of course that white stuff can accumulate quickly but we are so well equipped that even 30 plus inches in a two day period is just second nature to us. Between the State, County and City plus all the individual contractors you will find it easy to navigate anywhere you wish to go.
