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.
If you visit a Traditional Agent’s website, you’ll typically see their “Featured Listings.” These are properties that they have a contract with the owner/seller to sell – that is why they are featured. Here at Buyer’s Resource, since we are an Exclusive Buyer Agency, which means we don’t sell homes at all, but rather help buyers find and buy the best property for their particular needs, we don’t have any “Featured Listings” we are obligated to sell.
Instead, we consider equally the entire selection of the thousand and more properties that are currently available in the Steamboat Springs area, at least at first. As far as our “featured listings”, they are the ones we think are worthy of your attention, period.
Here’s two:
If you are looking for reasonably priced land near Steamboat where you can build a house with direct views to the ski mountain, have an already existing barn, fencing and the beginnings of a horse arena, you should look at a 20-acre parcel in the gorgeous South Valley priced at $439,500.
Are you in search of a three-bedroom home in town with a separate family room/suite area, great view, and a two-car garage with an almost-adjoining large, bright storage room? I’ve had my eye on a duplex in the Fish Creek Falls neighborhood, between downtown and the mountain, which just really has a great feel to it. When it first went on the market in April of 2008 it was priced at $749,900. Since then it has dropped three times before its current price of $594,000.
If you’d like to know more about these or any other properties for sale in Steamboat Springs, we are always here for you.
So what’s been selling in Steamboat Springs over the first half of 2009?
According to our Multiple Listing Service stats: 53 residential units sold, of which 15 were single family homes, 15 were townhomes and 23 were condos.
Let’s take a look at the single family homes first:
The least expensive home which sold in the first half of the year was in the neighborhood called Steamboat II, located west of town. A lot of the houses there were built in the 1970s and are of modest size, so it’s no surprise that is where the least expensive purchase occurred. It was a 1771 square foot, three-bedroom home with two bathrooms and a two-car garage. The asking price was $489,000 and it sold for $450,000.
The most expensive single-family home sale was for an 8536 square foot, 5 bedroom, and five bathroom home with a two car garage, located in the gorgeous valley of Strawberry Park right outside of town.
And town homes?
The least expensive town home which sold was an older town home above town in a small development called Suncrest. It was a 1267 square foot, three bedroom, two bathroom and one-car garage home, and sold for $295,000 after an asking price of $329,000.
The most expensive town home sold for full price at $1,995,000, had four bedrooms, three bathrooms and a two-car garage, and was located in the beautiful, new Stonewood development near the ski area.
Now condos:
Of the 23 which sold, the one with the smallest price tag sold for $180,000 ($205,000 asking price). It was in Walton Village, in what’s considered The Mountain area, to the east of the ski area. At 565 square feet it has one bedroom and one bathroom.
The most expensive condo sold for $1,118,250 (asking price of $1,245,000) and at 1836 square feet, it has three bedrooms, three bathrooms and a one-car garage. This one is located at the new Trappeur’s at Bear Lodge very close to the ski area base.
And contrary to what you might be thinking, these were not all cash sales! Most of these were bought with financing so yes, people are getting loans out there – those lucky devils!
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.
Have you checked out our May newsletter yet? The focus for this month was looking at the residential market in Steamboat Springs, and how it has fared over the past five years. I must say that I was very surprised in the findings. Keeping in mind the research was done on what has sold and not what is listed, the number of sales has dropped considerably, but the price at which homes, town homes and condominiums in Steamboat Springs have been purchased for has actually maintained itself quite well in these tough economic times. To see the report and all of the great information, please check out the “Monthly Newsletters” section of the “Buyer’s Toolbox” link above.
Regarding the residential market in Steamboat Springs, if you are looking for a great lot to build a single family home, consider this “Best Buy”:
Great lot ready to build with a wonderful location in Wildhorse Meadows. Walking distance amenities include the gondola, tennis center, athletic fields, Strings in the Mountains Center, and more! The lot borders open space and offers Ski Area, Emerald and Flat Top Mtn. views. In the future, Wildhorse owners will enjoy use of The Ranch House, Wildhorse Athletic Club Steamboat Country Store and trail system. All utilities are to the lot line. In a neighborhood that already has a spec home setting the standard at $3.295m, this price, of $495,000, is a great value (lot values typically represent 25% to 35% of total value).
If this property sounds like something you are interested in, give us a call / email today. We’d be happy to provide you with pictures, maps, etc and answer any questions you may have.
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
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.
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!
Valentine’s Day fireworks lit up snow-filled skies over the Steamboat Ski Area last night as hundreds flocked to the base area to celebrate a romantic evening with their sweetheart, which is becoming a Steamboat tradition.If you are looking for a sweetheart of a real estate deal, the developers of The Porches have temporarily reduced prices on a couple of their townhomes for the next two sales, which present a very good value.The Porches is located in a picturesque 20-acre community at the base of the Steamboat Ski Area. The Ponderosa Model, located at 1998 Indian Summer Drive, features 5,019 square feet, five bedrooms, five full baths and two half-baths, a gourmet kitchen with granite counters, multiple gas-lit stone fireplaces, AC, two-car garage, and a porch which makes a great gathering place for family. The quality of materials and craftsmanship throughout these homes is exquisite!Originally listed at $3,187,000, the new price is $2,600,000.This quality for $500 per square foot is a very good buy.On site amenities include the Barn, a spacious, centrally located commons building available for owner’s use, and offers social areas, fitness facility, heated swimming pool, hot tub and on-site concierge services.A slopeside ski valet provides the convenience of slopeside living but without the cost.If this property is too large for your needs, there are smaller townhomes available.We’re told the developer is only going to offer these reduced prices for the next two sales, so please call us today and we would be happy to provide you with additional information.
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.