Pricing tips for sellers

It’s no secret that we’re in a buyers’ market right now, and you have likely noticed home prices rising all around you. That is great news if you are ready to sell your home, but it is still important to choose a listing price based on fair market value and market conditions. Of course you want to maximize your profit, but pricing a home too high could hurt your sale.

Here are some factors that influence listing price:

• Comparables. Recent sales in your neighborhood, especially homes similar in size and style to yours, will impact your listing price. Be sure to note if those comparable listings include renovations or other amenities that your home does not have.
• Competition. If there are a lot of properties for sale in your area, you want to choose a price that is competitive. Listing much higher than the competition could hurt your chances of attracting buyers.
• Timing. How fast you want or need to sell should play a part in your listing price. Selecting a fair, but attractive, price can help bring in offers more quickly.
• Appraised value. Keep in mind that a deal could fall through if the sales price rings in higher than the appraised value, because the buyer’s mortgage loan will be contingent on that appraised value. If you are unsure of how your home will appraise, you can get an appraisal for a few hundred dollars – that investment could save you time and headaches down the road.

Data shows that “a house that is priced right will sell in about half the time of one that is overpriced.” So, it is in your best interest to price your home right the first time. Work with a skilled real estate agent who can help you navigate the art and science of pricing your home for sale.

If you are selling a home in Steamboat Springs, contact us using the form below. We would love to put our nearly 30 years of real estate experience to work for you.

Rich history and outdoor lifestyle are among Steamboat's assets

There are so many reasons why John and I have chosen to live and sell real estate in Steamboat Springs. It's a truly incredible place to live, and we enjoy connecting others with our area's natural wonders and assets that make it a great place to call home. Below are just a few of those reasons: 

1. Champagne powder. Steamboat Springs is known for its light, airy snow, called "champagne powder" that makes for some excellent skiing and snowboarding. In fact, Steamboat has been using that term since Kremmling rancher Joe McElroy coined it in the 1950s, and the resort holds a registered trademark on that name. 

2. Steam. Many visitors wonder how our town earned its name, given the obvious lack of Mississippi-style steamboats in the Yampa River. The name came from French trappers who were in the area in the early 1800s: They heard a chugging noise, similar to the sound of a steamboat, which turned out to be a hot spring. Now, locals and visitors alike benefit from the soothing and warming effects of our many nearby hot springs. 

3. Athletes. More Olympians (88 of them) call Steamboat their hometown than any other town in the country. For that reason, we're known as Ski Town USA. We are also Bike Town, USA, thanks to our wonderful, natural terrain that is perfect for mountain biking. Whether professional or recreational, Steamboat welcomes and encourages athletes and outdoor enthusiasts at all levels. 

4. History. Steamboat did not grow up as a resort town. It has deep roots as home to Yampatikas Utes, the area's original inhabitants, and grew as fur trappers, miners and ranchers settled here. That history helps make Steamboat the down-to-earth, real town it is. 

5. Accessibility. Although we are a rural mountain town, residents and visitors can access Steamboat easily because of the Yampa Valley Regional Airport, which offers nonstop flights to many major cities around the country, as well as nearby hub Denver International Airport.

If you would like to learn more about living in Steamboat Springs, please contact us using the form below. We can tell you much more about our Colorado mountain lifestyle and the wide variety of real estate available in our beautiful valley. 

Get your finances in order before looking for a home

If you would like to buy a home in the near future, take this steps to ensure your best possible financial position. Doing so will help you secure a lender for your mortgage and also budget for the new costs associated with buying and maintaining a home.

• Track your expenses. Do you know how much you spend on housing, food, gas, transportation and extras each month? If you don’t now is the time to track your expenses. Keep a log of what you spend by category for a month or two to get a better idea of where your money is going. You can also review your bank accounts for the past six months to account for unexpected expenses like medical bills or car repairs.
• Develop a budget. Once you know how and where you spend your money, identify areas where you can tighten your budget. Cutting costs on groceries or extras, for example, will allow you more flexibility to manage a mortgage payment in the future.
• Pay off debt. Lenders like to see debt that is about one-third of your income or less. If you can pay off a credit card, car loan or student loan, it can help your position when seeking a mortgage lender. (Note that a history of paying down and paying off debt helps your application. If you have no credit history, open a credit card account and pay off the balance each month.)
• Pay yourself first. If buying a home is high priority, then dedicate a certain amount of your income each month to a down-payment fund. A 20 percent down payment is common (although there are options for first-time homebuyers to start with a smaller down payment), so use that as your goal.
• Stay employed. Before applying for a mortgage loan, it is best not to change jobs or quit your job. If you have been in your current job for less than two years, it could translate into a higher interest rate on your loan.
• Pay your bills on time. It should go without saying that lenders want to see a history of on-time payments. Pay your rent, credit card bills, utilities and other bills on time every time. That good habit will help keep your credit score in good shape.
• Check your credit. You are entitled to a free credit report each year, and it is a good idea to order one when you are thinking of buying a home. If there are mistakes on your report, work to get them removed prior to applying for a loan.

To learn more about buying a home in Steamboat Springs, contact us today using the form below. We will put our nearly 30 years of experience to work for you.

Financial considerations with condos and vacation homes

Last week, we discussed the potential benefits of buying a resort vacation home that you can rent out to offset some of the costs. If you are considering buying a condo as a vacation rental property, keep in mind these maintenance and financial details that often accompany condo purchases:

Condo HOAs

• Read the condominium documents, declarations, by-laws, and rules and regulations. Request to see a copy of the last two years’ HOA meeting minutes, board of directors minutes, budget and capital reserves budget. Look for information about deferred building maintenance, special assessments, owner issues and pending lawsuits.
• HOA dues. Make certain you are aware of the HOA dues. Dues are typically billed monthly or quarterly directly to the owner. Factor these in to your monthly cost of ownership and ascertain what the fees cover. Common areas are usually maintained with these funds to include; building and grounds insurance (not your interior furnishings, fixtures or personal property), snow removal, landscaping, common area, utilities (gas, water, cable), amenities (shuttle service, hot tubs, saunas, pools, tennis courts, laundry facilities), fire alarm monitoring, monthly management company fees and other miscellaneous costs.
• Special inclusions. In some cases, electric, gas, phone, cable, internet, water and sewer and/or exterior repairs may be included in HOA dues. Be sure to ask what is included and what will be your responsibility as the owner.
•  Special assessments. Determine if there are any ongoing or upcoming special assessments. Periodically, all associations need to assess for major repairs, replacements or upgrade of common elements, such as paving, new roofs, new exterior siding, landscaping and so forth. Keep in mind that all fiscally responsible HOAs should show a healthy capital improvements reserve in their current budgets.

Cash Flow

Your vacation home investment is made up of net income, capital gain and money saved by not renting from someone else, not to mention the legacy of personal enjoyment and family memories.

Often, net rental income will cover most or all of your operating expenses (HOA dues, property taxes and utilities) and you should break even. However, don’t expect rental income to completely cover your debt service unless the property has exceptional rental income. If you purchased the property with cash, however, you can expect to operate “in the black.”

If you have questions about purchasing a condo as a vacation rental investment, contact us using the form below. We are well-versed in the details of buying and selling property in a resort town. 

Some basics for vacation rental ownership

Many buyers come to us with questions about vacation rentals in Steamboat Springs. If you are considering buying a property in our beautiful Colorado resort town, offsetting some of the cost by renting it out to tourists could be an option for you.

Here are some basics you should know about investing in a vacation rental property in Steamboat:

• Your needs come first. Decide on your basic personal use necessities first: number of bedrooms and bathrooms, configuration, fireplace, amenities, outdoor space, garage or parking spaces, services and location. Your desired amenities might include: 24-hour front desk, pool, hot tub, sauna, tennis court, seasonal shuttle service, concierge service, etc.
• Management and rental company. To make renting out your property to vacationers as simple as possible, choose a complex that offers professional management and established nightly rentals. The larger, more experienced condominium/homeowners’ associations (HOA) in Steamboat are: Wyndham (also includes Steamboat Resorts), Mountain Resorts and Retreatia. Smaller, reputable companies at smaller complexes and outlying properties include Moving Mountains, Simply Steamboat, Pioneer Ridge, Condos In Steamboat and others.
• How the rental agreement works. With a management company, their staff handles the logistics of finding and booking renters. In turn, they charge you 45 percent of the gross rentals while you keep the remainder. While that amount might seem high, keep in mind that the fee includes all advertising and marketing, daily maid services, shuttle service, check-in and check-out, full cleaning after each stay, inventory checks, linens, towels, paper goods, cleaning supplies and ongoing general management.
• Attracting renters. If rental cash flow is high on your priority list, you might prefer a complex that offers all the popular resort-type amenities including close proximity to the slopes, hot tub, shuttle service, maid services and a majority of the units within the complex are nightly rentals. However, keep in mind that some homes and townhomes that don’t have a lot of amenities can also attract higher rental rates.
• Seasonal expectations. Ski season in Steamboat is Thanksgiving through early April. Aim for 75 to 100 nights of rental per ski season, and another 30 to 50 in summer, and your cost of ownership will be somewhat offset. If you use your property during the key rental weeks, your income will decrease. The best weeks for rental are Christmas week, New Year’s week, and President’s Day weekend through the end of March. Note that ski season nightly rental rates are much higher than summer season.

In next week’s blog, we will dive into some of the financial details and considerations associated with condominium and vacation home purchases.

To learn more about real estate options available in Steamboat Springs, contact us using the form below: 

An agent offers expertise and objectivity

 
While it is possible to buy or sell a home on your own, there are many compelling reasons to work with an experienced real estate agent. Just a few of those reasons are below: 

• Time. The real estate process takes time. From scheduling and hosting showings to filing all the necessary paperwork, it can be an overwhelming undertaking for an individual who also has a full-time job, family and other obligations. A real estate agent takes that burden off of you.
• Experience. Most buyers and sellers go through the real estate process a few times in their lives. Real estate agents go through it every week. In our case, with more than 30 years of experience between us, we have managed hundreds upon hundreds of transactions, so we intimately understand the process.
• Expertise. Along with our years of experience comes insight into real estate’s unique language and terms, as well as knowledge about our specific market here in Steamboat Springs. That expertise can help you navigate how to buy or sell in our area and make sense of the often complex documents that go along with a real estate transaction. Working with a real estate agent helps create a more seamless experience with fewer mistakes.
• Objectivity. A real estate agent can help serve as your voice of reason, whether you are buying or selling a home. As a seller, you are often too emotionally attached to your property to think of the transaction in business terms. As a buyer, a real estate agent can help you take off your rose-colored glasses to see both the potential benefits and drawbacks of specific properties.

Don’t go it alone. We’re here to help you as you plan to buy or sell a home in the Steamboat Springs area. Let us put our nearly 30 years of experience to work for you. Contact us using the form below:

Enjoy gondola access to the ski resort

Many people visit our beautiful Colorado mountain town for the holidays, and we would like to welcome you to Steamboat Springs. We hope you are enjoying your stay here, and we wish you happy holidays, good eating, good skiing and wonderful memories. 

If you have thought about making Steamboat Springs your permanent home, or if you would like a vacation home here for making many more wonderful memories in the future, we have an ideal opportunity for you:

Homestead at Wildhorse Meadows

These new condos at the base of Steamboat Springs Ski Resort offer a comfortable and beautiful retreat with access to all that Steamboat has to offer. Features include: 

• Direct gondola access to the ski resort
• On-site fitness center, pool, hot tub, game room and more
• Shuttle service
• "Mountain modern" design with open floor plans
• Gourmet kitchens with granite counters
• Private garages
• Three or four bedrooms
• Energy efficient
• Stunning views with windows and balconies to enjoy them

We are scheduling tours now for this incredible property. If you would like to view these condos while you are visiting Steamboat during the holidays, please contact us using the form below. We can help you own a piece of Steamboat and the Colorado mountain lifestyle of your dreams. 

Is 2015 shaping up to be our best year since 2008?

October was a continuation of our positive trend in the real estate market.  We had $94.6M in gross sales which is 26% over last October and the single biggest gross sales volume month we've had since 2008!  The high dollar volume was due in large part to a $23M ranch sale.  However, even without that sale, the numbers are still good.  We had a total of 129 transactions, down slightly from last October.  Our YTD. gross sales volume is up +7.5% and transactions are at +3.09% YTD.

 OCTOBER ROUTT COUNTY STATS

There are some benefits to listing in December

So, why list your home during the holidays? It's true that there are fewer buyers beating the bushes to during December and early January, but there can be some strong benefits to selling this time of year.

Here in Steamboat Springs, our busiest week of the year for tourism is between Christmas and New Year’s Eve, so now is actually a great time to get some visibility for your property. The biggest reason home sales drop in this area during the holidays is not lack of buyers – it’s because many sellers decide to take their listing off the market. Some sellers don’t want to be bothered with showings during the holiday season, and that’s understandable, but they could be missing out on a golden opportunity to sell to the thousands of tourists who could be looking for the perfect mountain home.

Now, if your home is in a rural area with winding streets that don’t get plowed often, it might make sense to take your property off the market for a month or two. Otherwise, don’t underestimate the power of year-end buyers.

Here are some reason why:

• Year-end buyers may have a tax incentive to purchase before the end of the year
• Many executives get their annual bonuses in December
• If they are shopping for real estate during the holidays, you can bet they are in a good mood
• Holiday buyers generally want to make their families happy, and real estate brings people together
• If buyers are taking time out of their busy holiday schedule to look at real estate, they are probably more serious than the average house hunter

Make sure your real estate agent knows of any days that you will be entertaining company He or she can can plan showings around your guests. It's perfectly fine to say no to showings for a couple of days. If the buyer is serious, they will be understanding. A little communication goes a long way. 

If you are considering listing your property in Steamboat Springs, or if you are searching for a perfect Colorado mountain home, contact us. We will put our nearly 30 years of real estate experience to work for you.