Cam Boyd- Prudential Steamboat Realty

OUR BLOG HAS MOVED

2008-11-24T10:32:00.005-07:00

Thank you very much for visiting my blog on Google's Blogger! In an effort to merge my blog with my website, we've relaunched a new site and embedded the blog.

To stay up on my blog posts, please visit my new blog location:

The Boyd Team Blog

To check out all the current listings and timely information about the Steamboat Springs Real Estate market, please visit my website:

SteamboatRealtor.com

Looking at Recent Sales Numbers

2008-11-18T13:55:00.003-07:00

Looking over the year-to-date sales numbers for Routt County, ending 10/31/08, the following is what we know.

Total dollar volume sold for the year stands at $647,000,900. That ranks at 49% pacing as compared to the record year of 2007. Comparing year-over-year numbers with 2006, we’re pacing at 73% of sales.

There were 68 transactions completed in October this year versus 196 in 2007 and 266 transactions in 2006. Actual number of closings has slowed dramatically from what we’ve come accustomed to in Octobers of yore.

Of the total transactions in October, 37 of them consisted of “Residential Improved Units” which includes any residence that an owner buys outright (ie. not a “fractional” or “timeshare” unit) that’s not land or commercial. Of these 37 transactions, 21% (8 units) closed at $1,000,000+ accounting for 55% of total volume. These statistics demonstrate that the high-end market is still doing relatively well.

Pricing property at an attractive level is more important now than ever. Getting prospective buyers interested in making an offer becomes difficult in this type of market, but not impossible. Adding incentives such as paying closing costs, covering a month or two of the buyer’s mortgage and other creative deals are ideas you should ask your realtor about. If you’re a seller, these types of unique add-ons will go a long way in getting your property sold.

Ski Free in Steamboat!

2008-11-14T15:26:00.007-07:00

This just in... Steamboat will provide FREE lift tickets when powderhounds book a minimum of 3 nights lodging between November 26th and December 25th.

The deal is that you need to book your stay through the Steamboat Central Reservations office.

800-922-2722. Check it out at http://www.steamboat.com/

From your friends that LOVE FREE SKIING too! -The Boyd Team

3rd Quarter Market Stats

2008-11-13T08:56:00.003-07:00

I just read some interesting stats from the Rocky Mountain Realtor Association. Thought I’d include the 3rd Quarter sales stats chart here.

Overall in 3Q, there were 2,107 total listings in Steamboat Springs. This includes homes, condos, land and commercial. In the same period of time we saw 638 closings, so a little under a third of the total.

The average sales price of a single family home is still holding strong in our community, at $996,816 in the 3rd Quarter. The average price of a condominium was just over $462,000.

Total sales volume in the Steamboat market for this quarter was $371,638,905 which is well below 3Q in 2007 (a record breaking year, I’ll add) but only about 15-20% off from 2006.

The amount of inventory we see on the market right now is more than the current demand which makes this somewhat of a buyer’s market. However, with winter comes more visitors to our community and an influx of new interest. The deals we’re seeing close as of late however are averaging about 10-20% below asking price.

Now more than ever it’s imperative to competitively price your property if you want to attract buyers and sell your property.

New Face On Facebook!

2008-11-06T16:29:00.002-07:00

So, big announcement…. The Boyd Team has started our very own Facebook Fan Page! (cue the cheers, marching band and parade)

That’s right, in an effort to bring those interested in Steamboat Springs real estate closer together, we’ve started a page that will hopefully serve as a useful forum in the months and years to come. Please visit and become a “fan” by CLICKING HERE.

As the saying goes, “if you build it they will come.” Well, it’s here and now we just need YOU to tell us what you think. This is an open forum for opinions, happenings, local or industry news and any other fun and friendly tidbits you can think of. After all, though we are in the real estate business, this site doesn’t have to be all work and no play.

So take a look and offer suggestions on what can make this a well-rounded and useful online community. It’s a work in progress so don’t be dismayed if what you’re looking for isn’t there yet.

WELCOME FUTURE FANS… we look forward to mingling with you in cyberspace!

Loans Still Available

2008-11-03T16:06:00.001-07:00

Recent news reported that in the aftermath of near-death to Fannie and Freddy, there are still a plethora of conforming loan products available. A potential home buyer is still going to have to demonstrate a solid income history and good credit score (perhaps more now than ever) but mortgages are still available.

This is important news as we move into the upcoming ski season in Steamboat. With the snow comes an onslaught of potential buyers to our valley and there have to be lender options if these investors will translate into sales. What’s not to love about Steamboat in the wintertime? I’m working very hard to make sure my listings are primed and ready to show once the planes start touching down, in an effort to capitalize on primary and secondary home purchases.

The caveat with this however is that rates are fluctuating more now than we’ve seen in the past. Mike Larson, vice president of Mountain Valley Bank (a local lender) reports that rates on comparable loans may fluctuate as many as 3 times a day. Now prospective buyers who are “shopping” for rates need not only compare rates of different lenders, but compare the time of day the quotes were received. With a fluctuating scale such as the one we’re seeing now, this is the only way to insure an “apples to apples” comparison.

Keep in mind that non-conforming and jumbo mortgages are still going to be tricky. Considering that many transactions in our area fall outside of a conforming “primary residence” type loan package, we’re still bracing for slower times ahead. But the mere fact that loans are becoming more available and credit is beginning to loosen once again, there seems to be a shimmer of hope of good things to come.

Economic Stimulus Coming?

2008-10-29T14:43:00.004-06:00

There’s no doubt that everyone is watching and waiting to see what happens on Election Day, myself included. But the really important matter is what’s going to happen AFTER the election.

Typically the final session of Congress is a “lame duck” session but with the current woes in the economy, many are hopeful for some important measures to start taking shape.

One focus that should be starring a lead role in Congressional debates is what to do about another economic stimulus package. Will efforts be made to pass yet another bill to stimulate spending and if so, will it be directed more substantially to home buyers?

This past February brought with it a $150 billion plan that included re-payable tax credits for first time homebuyers. The talk on Capitol Hill must now turn towards what they can do for ALL home buyers to encourage real estate sales. The National Association of Realtors is lobbying hard for a nationwide relief package in hopes of jump-starting what has become a dramatically slowed industry.

It’s still too early to say if any relief would come in the form of second home purchases or investment property, but any spark given to the housing market would create a needed trickle effect.

For example, in Steamboat we’re seeing a lot of second home buyers who are waiting to sell property elsewhere before they can invest in Steamboat. If a home buyer tax credit helped facilitate that investor’s property sale elsewhere, it would logically foster their purchase here. Steamboat has the needed inventory right now, what we need are more buyers.

Private Club... Steamboat Style!

2008-10-27T11:45:00.002-06:00

A new luxury brand will be introduced to Steamboat Springs this winter, dubbed the St. Cloud Mountain Club. Those with the means and desire for a true pampering will be treated to breakfast, lunch, cocktails and après ski meals. This will be the first of its kind in the Steamboat area and time will tell how successful this becomes.

Developer Jamie Temple of Momentum Steamboat, LLC. announced previously that they had entered the city planning process required to build the St. Cloud Resort and Spa near the base of the mountain. Temple now says that he will hold off on pursuing the lengthy process before the economy turns around from the current situation.

The St. Cloud Mountain Club however has no attachment to the proposed development other than to introduce the brand to the Steamboat market. The club will function on it’s own accord and is looking for an initial 25 members at $40,000 per membership. Besides meals and ambiance at the ski area base, members can expect parking, ski valet, ski storage and overnight boot drying.
The inside of the club will be designed with a plush-but-modern look and feel, a full bar including coffee drinks, flat screen televisions and even a children’s play area. A concierge is also on hand to help members with lift tickets, ski lessons and other activities.

Habitat for Humanity

2008-10-21T13:08:00.004-06:00

YES... that's me swingin' that pick-axe. When Habitat for Humanity called and needed our office to help with finishing a local home, I and the staff were quick to act!

This full story was printed in the Steamboat TODAY on 10/18....

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Steamboat Springs — Routt County Habitat for Humanity benefited Friday from a bounce in participation in construction of its West End Village duplex, partly in response to the recent criminal charges against the organization’s former executive director.

Habitat for Humanity has cooperated with investigators, and Board Director Jeffery Weeden has maintained a transparency in operations since more than $72,000 was discovered missing from the local chapter’s bank account, allegedly stolen by former executive director Shelly Flannery.

A call for help and a positive reaction to the organization’s handling of the theft brought out dozens of volunteers from two local employers.

Prudential Steamboat Realty and K & K Builders responded to requests from Jeffery Weeden and interim Executive Director Tommi Weeden to help finish the duplex in West End Village by the end of October.

Heidi Flint, a transaction manager for Prudential, was working with broker associate Barkley Robinson on landscaping outside the duplex Friday. Flint said she hoped the build day would help the organization’s image as it works to help people. “After the negative stuff that’s been going on, it would be nice to shed a positive light on it,” she said.

Leif Myhre, construction manager for Habitat for Humanity, said the number of volunteer workers has fluctuated throughout the past few weeks, with two to four people usually volunteering on the weekend. “So when we do get a church group or an organization or a youth group, it’s a great help,” he said.

Myhre estimated one half of the duplex was about 99.5 percent complete — the carpet was laid early Friday — while the other side was about 97 percent complete. By the afternoon, volunteers were working on installing and painting trim work, hanging doors and putting the finishing touches on an outside railing.

Myhre said the community has responded positively to Habitat for Humanity’s work, despite the theft. “Folks were surprised but still very supportive of our mission,” he said.

Laura Cusenbary, director of marketing for Prudential, said her company had several dozen volunteers divided between three shifts — two Friday and another Saturday morning.
“Reading the newspaper (about the alleged theft), you really want to do the right thing,” she said. Prudential also regularly donates to Habitat for Humanity, but this is the first time the company has organized volunteer workers.

Kim Kreissig, of K & K Builders, said her company has the same history with Habitat for Humanity, but she was happy to be able to get workers on site to help. “We just heard there was a need, and it’s a good opportunity for our construction company,” she said. K & K had more than a dozen skilled workers on site Friday. Kreissig said she saw this as an opportunity to help Habitat for Humanity and was encouraged to volunteer after hearing about the theft.
“It made me want to (volunteer) even more,” she said. “It’s an unfortunate circumstance, but I don’t see it as a negative reflection of Habitat at all.”

Habitat for Humanity still is seeking volunteers to work on the duplex for the rest of the month. It is located at 2952 and 2954 Abbey Road.

Steamboat a Good Buy!

2008-10-17T15:54:00.003-06:00

FINALLY!!! Ski Magazine echos what we here in "the trenches" have been saying for months. Check this out...

Ski Magazine: Buy Now and Look Smart Later

Economy Affects Property Searches

2008-10-16T14:01:00.003-06:00

I just read some interesting insights about another way to judge real estate activity. I thought I'd share how Google can now help us gauge the bustle amongst prospective buyers & sellers that are online.

Credit goes to The Search Factory for writing this piece. I've attended a few of their webinars and use their methods to maximize our listings on the web.

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Google uses a 12 month benchmark in what it calls its “Interest Rating”. The peak of their search is measured at 100, and all other “points” are established from the peak number. For the purpose of this article, I wanted a 12 month snapshot dating back to October 2007.

According to GoogleTrends, there has been a 17.6 point drop in the Interest Rating of “homes for sale” related keywords since September 1, 2008. This is not surprising when you consider all that has taken place in the past 30 days.

The silver lining however is that even with economic volatility, the interest in “homes for sale” keyword searches is up 10% from October 5-October 12. The lowest interest rating was reported on December 15, 2007 at 52. As of October 12, the interest rating is up 10% from the previous week to 84.

As always, in every market there is opportunity. 5 of the top 7 fastest rising keywords in real estate are related to foreclosures. While people are interested in real estate, they are also interested in a deal.

Local Sustainable Building Practices

2008-10-14T14:52:00.004-06:00

Mandating environmentally senstive construction may become a reality in Steamboat Springs. Tonight’s joint meeting of the Routt County Board of Commissioners and Routt County Regional Building Department brings us another step closer to that reality.

Ordinances such as one to outline a higher public benefit priority at the mountain base of the Steamboat Ski Area will be presented and considered. Provisions of these new ordinances include scrutinizing a new building’s foundation, exterior finish, insulation, landscaping, appliances and plumbing. Certain elements of sustainable building design will be mandated, while others will be incentivized similar to a LEED (Leadership in Energy and Environmental Design) certification.

The pros and cons are that while improving the design and building statutes around the county, cost of construction will most likely increase. Local experts are estimating a 3-5% increase in future development cost if such legislation is passed. Those increases make building commercial or residential real estate in Routt County more expensive, but the end results will surely bolster property values and community appeal.

An Now For September...

2008-10-10T15:26:00.001-06:00

September continued on the same trend as August with the sales at roughly 1/3 the level of 2007. The year to date closings and volume are at 45% of the level of 2007, but looking back, this year’s statistics are only 20% below the level of 2006. Taking the banner year of 2007 out of the equation, the Steamboat real estate market is still holding its own. Over the past two weeks, the financial crisis in the U.S. and the world markets has certainly slowed things down to a crawl. There are expectations that our market will be one of the first to rebound when the economic conditions change based on the many Buyers and investors that are interested in Steamboat Springs.

Looking back at August

2008-10-09T08:39:00.001-06:00

August was a busy month for showing properties with roughly the same activity as we saw in August 2007. It was however, a very slow month for closings with only 44 closings, just ¼ of the sales and 30% of the volume that we saw last August.

That brings the year-to-date closings and volume to roughly 45% of 2007 levels. The inventory level seems to have leveled out. Interestingly, the average and median sale prices have not changed that much. This tells us that there are less Buyers willing to pay the current prices and most Sellers are not willing to lower their prices to the Buyers level.

Financing has been very difficult for Buyers and we have seen a number of transactions fail due to financing. Hopefully, with the Fed stepping in, this will help some of these conditions and enable more Buyers to obtain loans.

Sales Sluggish on Ski Homes, Prices Stay High

2008-10-07T07:50:00.004-06:00

(Taken from Realtor.org)...

As ski season approaches, prices for homes in Rocky Mountain resort areas are remaining high, but the number of sales are down 40 percent year-over-year, according to the Robb Report.

The West region accounted for 24 percent of vacation home purchases, second to the South region's 41 percent, the National Association of REALTORS® reported. (Get more information on resorts and second homes at REALTOR.org.)

One reason sales are down: The number of properties available for purchase has declined, real estate professionals in the area say. "Many practitioners are telling their sellers: Look, if you don't have to sell, this isn't the right time to do it," says Dennis Hanlon, an associate with Prudential Utah Real Estate in Park City.

Gary Cowan, vice president of products for the SecondSpace online network, says he’s seen an uptick in interest and purchases by foreign buyers. Because of the weak dollar, "A lot of (foreign buyers) are seeing great bargain opportunities ... in properties that once were totally out of reach."

Source: The Associated Press, Adrian Sainz (10/03/2008)

On Moving Modular Homes...

2008-10-06T09:18:00.004-06:00

Question: How much does a house weigh?

Answer: Obviously just a tad more than the average rural two lane bridge can hold!

...so, would this be covered by homeowners insurance, car insurance or ROADSIDE ASSISTANCE?

Steamboat's GREEN This Fall???

2008-10-03T11:02:00.005-06:00

With the autumn color change to predominately yellow and orange, it’s nice to know there are still signs of green in our community. No, I’m not talking about those straggling aspens that refuse to turn, I’m talking about the City of Steamboat Springs having two buildings earning certification for green practices.

It seems that when John Q. Public starts to see signs of sustainable practices stemming from such widely used buildings as City Hall and Centennial Hall, the general mantra of “green” living in reinforced community-wide. Both buildings have been credited with instituting sustainable practices in both structure and use. This is a positive sign of more good to come.

In recent news as well, the Steamboat Springs Planning Commission voted in support of a development plan for Inspiritu Verde (when translated, means “Inspired Green”). Though the proposed downtown project is much larger in scale than the surrounding buildings, the commissioners have reasoned that the benefits outweigh the concerns. Commissioners are obviously impressed that developers are striving to make this the first project to earn “gold” Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council. This clearly denotes the idea that more positive “green” changes are sure to follow within and surrounding our community.

In other news, participation in the city’s alternative transportation program increased by 12% this summer. The program dubbed “Tran-Spur-Tation” encourages city employees (and others, of course) to either walk, bus or bike to work in efforts to decrease our daily carbon footprint. I for one am proud to live in a town that encourages such practices and firmly believe that initiatives like these will surely increase property values over the long-run.

Cut Energy, Save Money!

2008-09-26T13:01:00.003-06:00

We all know, there are a lot ways to "tighten up" your home and save money the leaves change color and the snow begins to fly. But how much do we really do in an effort to lower our utility bills?

With increasing economic uncertainty, this just might be the winter to pay closer attention to your expenses. Here are 10 easy ways to cut back on your energy consumption and lower your costs this winter...

Taken from the U.S. Department of Energy:

1. Plug air leaks with caulking, sealing, or weather stripping. Save 10 percent ($190 per year) or more on energy bills. Focus on windows, doors, outlets or switch plates on exterior walls.

2. Properly maintain the heating system. Heating accounts for half the average family's energy bill (approximately $950 per year). Make sure the furnace or heat pump receives professional maintenance each year. The small cost (about $75-100 for most service calls) will pay back in better performance all year long.

3. Install a programmable thermostat. Programming the thermostat from 72ºF to 65ºF for eight hours a day while no one is home, or everyone is tucked in bed, will cut the heating bill up to 10 percent ($90 per year), paying for a basic unit in less than a year.

4. Seal and insulate heating ducts. A system can lose up to 60 percent of its warmed air before it reaches the register (wasting $570 in warmed air per year) if ducts are not properly insulated in unheated areas such as attics and crawlspaces.

5. Insulate, insulate, insulate! Adequate insulation in the attic, ceilings, exterior and basement walls, floors, and crawlspaces can save up to 30 percent on home energy bills ($630 per year). Focus on the attic. (Heat rises.) Most homes should have between R-30 and R-49 insulation in the attic. Learn more at www.eere.energy.gov/consumer.

6. Close fireplace dampers when not in use. When in use, reduce heat loss by opening dampers in the bottom of the firebox (if provided) or open the nearest window about an inch, close doors to the room, and lower thermostat setting to 50-55ºF.

7. Let the sun shine in. Open curtains on south facing windows during the day to allow sunlight to naturally heat the home, and close them at night to reduce the chill from cold windows.

8. Stay out of hot water. Water heating accounts for 15 percent of household energy use. Reduce water heating costs by lowering the water heater’s thermostat setting. Each 10ºF reduction can save between 3-5 percent in energy costs. Also insulate the hot water heater and hot water pipes.

9. Install storm windows over single-pane windows or replace them with Energy Star qualified windows. Storm windows reduce heat loss by 25 to 50 percent, and storm windows with low-e coating that reflect heat back into the room during the winter months save even more energy. Look for the Energy Star label to maximize savings. Energy Star qualified windows reduce heating and cooling bills by an average of $345, but could be higher in cold and hot climates, compared with uncoated, single-pane windows. Can’t afford new windows just now? Tape clear plastic sheeting to the inside of window frames if drafts, water condensation, or frost are present.

10. Net big savings with a little label. When replacing appliances, light bulbs, electronics, or heating and cooling systems, cut energy bills by up to 30 percent ($600 per year) with Energy Star labeled products. Use compact fluorescent light bulbs (CFLs) in place of comparable incandescent bulbs. Find retailers at http://www.energystar.gov/.

Not sure where to begin? Try the Department of Energy's online energy audit tool at http://www.hes.lbl.gov/.

Financial Bailout Plan Advances

2008-09-24T08:05:00.002-06:00

Under pressure from the Bush administration to act swiftly, the plan to revive the U.S. financial system continues to move forward.

Treasury Secretary Henry Paulson Jr. and Federal Reserve Chairman Ben Bernanke pitched the bailout plan during testimony before the Senate banking committee on the morning of Sept. 23. (See NAR Gets Behind Efforts to Restore Market.)

"In order to avoid a continuing series of financial institution failures and frozen credit markets that threaten American families' financial well-being, the viability of businesses both small and large, and the very health of our economy," Paulson told the Senate Banking committee this morning.

Bernanke said there was no other option. "Action by the Congress is urgently required to stabilize the situation and avert what otherwise could be very serious consequences for our financial markets and for our economy," Bernanke said.

Some lawmakers from both parties have already expressed concern about the $700 billion price tag and its chances for success.

Meanwhile, Senate Banking Committee Chairman Christopher Dodd (D-Conn.) and his staffers have drafted a counter-proposal that works in many of the priorities outlined by Senate Democrats.

Source: New York Times, David M. Herszenhorn (09/23/08) and CNN Money, Chris Isidore (9/23/08)

Denver's Stronger Real Estate Market

2008-09-16T13:17:00.004-06:00

Good news for the trickle-down effect in the Steamboat Springs market! In case you didn't catch this in the Denver Post...

Colorado's largest mortgage lender is making it easier for homebuyers to borrow money. Wells Fargo Home Mortgage on Saturday upgraded the status of the Denver metropolitan area's real-estate market from "distressed" to "stable."

"The fundamentals in the Denver market are changing," said Greg Osborne, regional vice president of the mortgage company. "Inventory is being worked down, and as a result, prices are stabilizing."

There were 24,648 homes on the market last month, a 20 percent drop from August 2007's 30,827 homes, according to data released last week.

The improved status of the market means consumers can borrow 5 percent more than they previously could, Osborne said. "I am hopeful that it will stimulate demand by increasing confidence in our market," he said. "We may have led the nation into the doldrums, but we're again leading out of the doldrums."

Jim Theye, managing broker for Kentwood City Properties, said the move could signal that the market has hit bottom and is showing signs of improvement. "This will really help buyer confidence, and it will really help rekindle a positive market," Theye said. "Our brokerage is definitely seeing increased activity."

Dee Chirafisi, also of Kentwood City, said she expects other lenders to follow Wells Fargo's lead.
"If they loosen up on some of the guidelines and make it easier for people to get loans, that will start activating the market," she said.

Lou Barnes, owner of Boulder West Financial Services, said the negative perception of Denver's market has been misplaced. Barnes points to the PMI Mortgage Insurance Co.'s risk index, which says Denver has a 1 percent chance of home prices falling. That's far better than the 35 percent chance of prices falling that PMI forecast for the region in 2003.

"Despite Denver's high foreclosure count, as a matter of price decline and underwriting risk, our greatest exposure was at the moment the tech bubble blew back in 2002," Barnes said.
Jerry Kaplan, vice president of capital markets for Cherry Creek Mortgage, said the Denver market has been stable since June. "Fannie Mae and Freddie Mac removed Denver from their declining-market list several months ago," Kaplan said. "There are certain pockets around the area that have a higher concentration of foreclosures, which in that immediate area is driving prices down."

The Standard & Poor's/ Case-Shiller U.S. National Home Price Index dropped 15.4 percent for the one-year period that ended in June. Denver, however, was down only 4.7 percent for the period and has shown three straight months of price growth.

Written by: Margaret Jackson: 303-954-1473 or mjackson@denverpost.com

Wraparound Mortgages- Sell Properties Faster!

2008-09-15T08:32:00.005-06:00

Click here and listen to a phone interview with Salvatore M. Buscemi, Managing Director at Dandrew Capital Partners in New York, about the dangers of not properly, and legally, structuring seller financed notes.

What is a wraparound seller-financed note?

It is simply a second promissory note carried back by a seller who continues to pay the existing first note. The key to a wraparound is that the seller continues paying the first note after selling the property, just as they did before they sold it.

At the same time, they now receive a larger amount from their second note, which is now owed to them by their buyer. The buyer gets title to the property, but the seller remains in control and remains legally responsible for payment of the first note.
The first note, which is now "wrapped around" by the second note, is known as the "underlying" note.

Thus, when you hear people say they just sold property on a wraparound and are still paying their underlying, it is not a secret code. It is common real estate jargon for a fairly common transaction. A wraparound is also sometimes called an "all-inclusive".

For example, let's say you own property and are paying the underlying mortgage, which has a balance of $30,000.00. You want to sell the property. You would like to sell it for $90,000.00, yet keep control of the $30,000.00 underlying note to make sure that it gets paid. Your best option would be to sell the property for $90,000.00 to a buyer who has an adequate down payment, say $20,000.00, and who qualifies for a wraparound second mortgage note for the $70,000.00 balance.

In this case, the $70,000.00 second "wraps around" your existing $30,000.00 underlying first mortgage. The wraparound does not change the underlying mortgage at all. Your buyer owes you the $70,000.00 second wraparound, while you still owe $30,000.00 to your lender on your underlying mortgage. However, you now have a $40,000.00 equity as follows: Your sales price of $90,000.00, minus the $20,000.00 down payment, equals the $70,000.00 second mortgage wraparound note, minus the $30,000.00 first mortgage, equals a $40,000.00 equity in the second mortgage, your wraparound note.

A Vacation Home: The Ultimate Hideaway

2008-09-10T11:23:00.003-06:00

Thanks to The Financial Insider for this one! Excerpt in Vol. XXVIII, Number III:
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If a mountain getaway or an ocean view has become your American dream, then perhaps you should know that a vacation home can offer some federal tax savings that may help pay for your hideaway. The tax laws differ depending on whether you use the home solely for enjoyment or mix business with pleasure by renting the property part-time.

As long as the combined debt secured by the vacation home and your principle residence does not exceed $1 million, you can deduct all of the interest paid on a mortgage used to buy a second home. The advantage is restricted to two homes. If you purchase a third, interest on that mortgage is not deductible. However, no matter how many homes you have, you may be able to deduct all the property tax you pay.

One break enjoyed by homeowners- the right to immediately deduct points paid on a mortgage- applies only to a principal residence. Points paid on a loan for a vacation home must be deducted gradually as you pay off the mortgage.

Personal Residence
Your vacation home counts as a personal residence even if you rent it for up to 14 days a year. In that case, you get to retain the rent tax free and don’t jeopardize your mortgage interest and tax deductions. However, you may not deduct any rental-related expenses. If you rent out the house on a continual basis, things may become more complicated. Different rules apply depending on the breakdown between personal and rental use.

First, if you buy primarily for pleasure but rent for 15 days or more, the rent you receive is taxable. Because the house is still considered a personal residence, you get to deduct all the interest and property tax. You may also be able to deduct other rental-related expenses, including the cost of utilities, repairs and insurance attributable to the time the house is rented. In some cases, you might even get to deduct depreciation. When the house is considered a personal residence, rental deductions cannot exceed the amount of rental income you report. In other words, your second home cannot produce a tax loss to shelter other income. In most cases, the interest and taxes assigned to the rental use of the house, plus the operating expenses, more than offset rental income, limiting your ability to write off depreciation.

Rental Property
Now consider your tax situation if you buy a property primarily as an investment and limit your personal use of the property to 14 days a year (or 10% of the number of rental days if that allows you more than 14). Because the house is a rental property in the eyes of the Internal Revenue Service, your deductions can exceed the amount of rental income you receive.

If your rental income does not cover the cost of renting the house, you may be able to claim a taxable loss. Rental losses are classified as passive and can be deducted only against passive income such as another rental property that realizes a gain. If you do not have a passive income to shelter, the losses have no immediate value (unused losses can be used in future years when you have passive income).

There’s an exception to this rule, however, that permits taxpayers with adjusted gross income (AGI) under $100,000 to deduct up to $25,000 of passive losses against other kinds of income including salaries. To qualify, you have to actively manage the property. The $25,000 allowance is gradually phased out as AGI rises between $100,000 and $150.000.

When your vacation home is considered a rental property, the mortgage interest attributable to the time the premises are rented is a business deduction. The rest, though, cannot be deducted as home mortgage interests since the house doesn’t qualify as a personal residence.
The tax laws discussed here also apply to homes other than houses, such as apartments, condominiums, mobile homes or boats with basic living accommodations. Generally, these include a sleeping space, bathroom and cooking facilities. Hotels, motels and inns are treated differently. For more information, contact your tax professional.

First-Time Homebuyer Credit

2008-07-29T16:35:00.006-06:00

On Wednesday, July 30, President Bush will sign the recently-passed housing legislation (H.R. 3221) into law. The new first-time homebuyer tax credit will go into effect immediately upon the President's signature. This credit is intended to help people purchase and secure their first home. The provision should prove to be of great benefit to communities such as Steamboat, where purchasing a first-time home can be difficult to afford. The chart presented below outlines the basic features of the new credit.

Amount of Credit: 10% of the cost of a home, not to exceed $7,500

Eligible Property: Any single family residence (including condos) that will be used as a principle residence

Refundable: Yes. Reduces income tax liability for the year of purchase. Claimed on tax return for that tax year.

Income Limit: Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).

First Time Home-Buyers Only: Yes. Purchaser (and purchaser’s spouse) may not have owned a principle residence in 3 years previous to purchase.

Effective Date: Purchases on or after April 9, 2008

Termination: July 1, 2009

Tour de Steamboat Awaits!

2008-07-25T16:28:00.004-06:00

Tomorrow I take on a new physical challenge… Kent Eriksen’s “Tour de Steamboat”… a 110 mile bike ride leading participants over Rabbit Ears Pass, Gore Pass and back home again. Having never pedaled further than 78 miles at a time, I’m anticipating a long, hot day but one filled with enjoyment none the less.

With Prudential Steamboat Realty being a major sponsor of the occasion, I figured this would be the best opportunity I’d have to ride in such a glorious event. Perhaps it stems from watching the Tour de France over the last two and a half weeks but I’m finding myself nervously anxious to hit the starting line tomorrow.

But the icing on the cake has to be the newly added fundraising element benefiting the Sunshine Kids organization. Prudential has hosted their annual ski trip to Steamboat for many winters but to have such a special tie-in with them in the summer is a real treat. To pedal my way up two massive mountain peaks and help these courageous kids both at the same time is something I’ll remember for years to come.

If you missed your registration slot this year, or are planning to be in Steamboat next July, I strongly encourage you to consider participating in this event in 2009.

Vive le tour!

Yampa Street Facelift

2008-07-21T16:44:00.002-06:00

We’ve all seen the changes coming with such projects as Waterside Village, Riverwalk, The Olympian and the new Boathouse Pub. Now the principals in Riverfront Partners LLC have formally announced their purchase of the Yacht Club restaurant building and attached open space, plus the steel building on Yampa Street housing Backdoor Sports. Their intent is to purse a new development called Whitewater Run.

The project would inject more mixed-use space to Yampa Street while improving some of the riparian areas of the riverfront. Developers are open to hearing from the local fishing and kayaking community for input as well. Conceptual drawings show a three-story elevation along the river with gabled roofs. Another notable inclusion is a pedestrian breezeway open to the air and leading through the building to the riverfront.

The transformation of Yampa Street would go even further than simply this new announcment. The project known as 751 Yampa would replace three small buildings including the Colorado Group Realty sales center, Hell’s Wall sporting goods and the building that houses Sweet Pea Produce and Sunpie’s Bistro.

Does "Moving Up" Make Sense

2008-07-08T15:33:00.005-06:00

Here are a few questions that might help you decide whether you’re ready for a home that’s larger than your current location. Answering yes to most of these questions might be a sign that you're ready to move.

1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five years or more you may have significant, unrealized gains.

2. Has your income or financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.

3. Have you outgrown your existing locale? The area you chose for your first home in Steamboat might not be the same location you want to settle down for good. For example, mountain condos can be an affordable first purchase but you might consider a downtown home to raise children and so on.

4. Are there reasons why you can’t remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.

5. Are you comfortable moving in the current housing market? If the market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. With the recent Steamboat market slow down, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.

6. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.

Bike to Work Week in Steamboat

2008-06-27T12:00:00.003-06:00

Today marks the end of “Bike To Work Week” and it comes with bitter sweetness. On the one hand, I saw myself and my entire office taking this initiative to heart. I have never before seen as many bicycles filling the racks outside our office as I witnessed this week. It was wonderful to know that we were all doing what we could to make a difference for our environment. I myself showed up for several showings this week on nothing but two wheels.

On the other hand, I fear that many people in our community that made a point to ride bikes instead of driving this week will be turning the ignition key once again come Monday. I suppose that lasting change needs to come with small steps so it’s not to say that I’m preaching doom & gloom. Quite the opposite.

Over the past year or more, I’ve been taking those small steps to change what I can for the better, at both home and work. I’m recycling more, I’m using my bicycle for transportation when I can, I’m flipping off lights when I leave the room and I’m teaching my kids to do the same.

I’ve never been more proud to be the leader of this fine organization than I am today. The entire team of agents and assistants the we’ve assembled makes this office more enjoyable than I can express. And I know that the life changes we are putting into practice here and at home are trickling down into our client relationships. We are embracing a positive way of doing business and how we treat our surroundings, which is the reason for my post today.

Thank you Prudential Team… and EVERYONE who took part in “Bike To Work Week” in Steamboat Springs. Thank you for preserving this community’s natural resources!

Looking Around for Great Value

2008-06-16T08:32:00.001-06:00

In a time when Steamboat Springs is experiencing record breaking sales volume and price increases, many home buyers are looking for properties farther away from downtown and the ski mountain in hopes of getting more for their money. The outlying communities at Stagecoach, Oak Creek, Clark, and Hayden are becoming the only options for young adults and families looking for more than just a condo or townhome.

New residents of the Yampa Valley, and those who need to change their current housing situation find that they can often afford more square footage, land, views, high quality finishes and privacy by driving fifteen or thirty minutes outside of town. The current prices in these surrounding communities are much more affordable and there’s ample inventory to choose from.

A staggering fact is that the overall sales volume in the local real estate market for 2007 reached $1.587 billion which was 141% of 2006. Most surprising however is that the total number of units sold fell from 3,477 to 2,555. The reality behind these numbers is that locals who are looking to buy property now are paying the premium. This mere fact alone is forcing people to look outside of town for more affordable homes.

This is one reason why developments like the Neighborhoods at Young’s Peak in Stagecoach and The Villages at Hayden are so attractive. These types of communities are offering residents more square footage and larger lots than they could afford in the Steamboat city limits and supply amenities such as community “open space.” It’s often the distance to Steamboat Springs and the Ski Resort that are dictating the increased sales prices, not necessarily the quality of the structures. Residents of Routt County could do quite well for themselves by opening their search area to these outlying communities.

For example, 3 bedroom homes with approximately 1500-3000 square feet in the city limits of Steamboat Springs had an average sales price of $690,000 in 2007. During the same time period, homes of similar size sold for an average price of $464,600 in Stagecoach. With the estimated median household income of Routt County approximately $57,000, the dream of owning property within Steamboat city limits at today’s prices becomes a difficult challenge.

A recent search on what $400,000 would buy you in the surrounding areas, discovered that,.starting with Stagecoach, $400k would secure you a single family home with 4 bedrooms and 3 bathrooms and attached garage in the Coyote Run Subdivision. For roughly the same price, a person could grab a 3 bedroom, 1 bath home on a .16 acre lot in downtown Oak Creek. Looking west to Hayden, investing $400,000 would allow you to buy a brand new 3 bedroom, 2 bathroom single family home with a two-car garage on 35 acres in Johnson Ranch. Not bad when you consider that for the same amount you’d only get a 2 bedroom, 2 bath condo at Sunray Meadows (Steamboat mountain area) and would need about $500,000 or more to get a 2 bedroom, 2 bath condo at the Residences in Old Town (downtown Steamboat Springs). As a result of the Steamboat sprawl that has already begun, prices for a home in Steamboat II start in the mid-to-upper $400’s.

So what does this all mean for the outlook of real estate in our valley? All of these areas have experienced appreciation over the years, dependent on the initial investment and improvements made since the purchase. Location, view, condition of the home, upkeep and surrounding development are all variable factors involved in determining individual gains. But neighborhoods once considered “off the beaten path” may be the next ones to boom due to the lack of reasonably priced supply in town.

Compare what has happened in Pitkin County. In 2007, the average price of a single family home in Aspen was just shy of $6 million. In Snowmass Village, the average price was roughly $4.65 million. Looking down-valley, the town of Basalt averaged $1.34 million for a single family home and in Carbondale the average was $866,000. This is a prime example of a similar area experiencing down-valley growth due to skyrocketing prices close to town center.

No matter what area you’re looking to buy, your best avenue for maximizing your return on investment is always to talk to your Realtor first. Discuss in advance the factors relating to your specific goals and finances in mind. And remember, when looking around for value in real estate, don't forget to take a break once in awhile. Between the facts & figures, crunching the numbers and finding that perfect property; I hope you take the time to enjoy the beauty that brought you here in the first place!

The Steamboat Community

2008-06-11T08:55:00.002-06:00

From the Prudential Steamboat Realty Market Report…

As we witness the transformation of downtown and the base area, we also witness Ski Town USA keeping pace with its infrastructure. Many notable changes and additions contribute to Steamboat’s commitment to deliver world-class services to the community and to maintain those special qualities that keep our guests engaged.

When it comes to community, Steamboat prides itself on providing the best in civic amenities and there is something new for everyone. For recreation, come visit the newly remodeled Old Town Hot Springs or play tennis at the recently completed Tennis Center. During the ski season, enjoy Howelsen Hill’s new snowmaking system, tubing hill and magic carpet. For art lovers, the new Strings in the Mountains pavilion is sure to delight, and a visit to the Steamboat Art Museum (SAM) is a must. Steamboat schools, which rank 4th highest in the state, will get a big boost upon completion of the brand new Soda Creek Elementary and a new addition to Strawberry Park Elementary. For the enjoyment of all, there is a brand new Community Center and an impressive addition to the Bud Werner Library. Mountain area improvements include the 6-pack Christie Peak Chair Lift, regrading of the Headwall, and an overhaul of Ski Time Square. In 2009/2010, a second gondola will transport passengers from Wildhorse Meadows, giving more people direct access to the ski area base. There are scores of upgrades, face-lifts and new facilities being constructed all over town, effectively improving everything in sight. This includes parks, trails, waterways, ball fields, childcare programs, landscaping, Main Street Steamboat, rodeo grounds, hockey facilities, transportation and so much more.

It’s no wonder Steamboat Springs was named one of American Cowboy’s Top 20 places to live: “Whether you’re looking for a new place to settle or the perfect place to vacation, this community delivers top value in the form of adventure, culture, charm, natural beauty, unspoiled wilderness and frontier history & tradition.” We couldn’t have said it better!

Steamboat Market Notes

2008-06-06T08:42:00.002-06:00

From the Prudential Steamboat Realty Market Report…

2007 was yet another record-breaking year in Routt County with sales volume topping out at $1.587 billion which is 42% greater than the 2006 record of $1.21 billion. Last year’s market was driven by lack of supply, healthy interest rates and market exuberance all of which led to significant jumps in appreciation in every segment of the market. Intrawest’s January 07 announcement of its intent to purchase the Steamboat Ski Area also fueled strong sales. Large scale developers have discovered Steamboat as evidenced by a number of extensive land and redevelopment purchases this past year. These iconic sales include: Steamboat 700 purchase of the Brown property west of Steamboat for $24.6 million, Bear Claw III parcel for $25 million (the new home of Edgemont), sales of the Sheraton Hotel and Golf Course for $57 million, and the Thunderhead and Ski Time Square buildings for $53.9 million. These one-time events in Steamboat were huge factors driving sales volume in 2007, the hottest year on record for Routt County.

First Time Home Buying Tips

2008-04-28T16:31:00.002-06:00

Considering that buying a home (especially your first) can easily be the biggest purchase decision you’ve ever made, it might go without saying that doing your research makes a difference. Here are a handful of tips that you can follow to prepare for the process.

Learn the overall home buying process. Understanding the basic steps included in the home buying process can help you make better decisions. Take some time to learn basic mortgage and real estate lingo. A mortgage glossary can be found on my website at: http://steamboatrealtor.com/tools_glossary.php

Know your debt-to-income ratio. This number compares your monthly bills to your average monthly income. This ratio is something your mortgage lender will analyze to determine your loan qualification. Most lenders prefer your debt not to exceed 20% of your net monthly income.

Set your budget. Use a simple mortgage calculator to gauge the monthly mortgage payment you can afford. Once you know your affordable monthly budget, you can limit your search to homes within a predefined price range.

Save some cash. There will come a point in the process where cash reserves will be needed. First, mortgage lenders like to see some money saved for closing costs. Second, additional cash will be helpful for often overlooked expenses involved in moving, buying furniture, and other costs that may arise.

Know your credit report. Get a copy of your credit report and look it over for errors or inaccuracies. You can obtain your copy at http://www.annualcreditreport.com/. Once you’ve seen your report, fix errors quickly! If something in your report doesn't seem right, submit a correction request. This can be done online with the company that produced the report.

Get pre-approved for a loan. Talk to a mortgage lender in advance of shopping and get pre-qualified for the amount you hope to spend on a new home. With this "pre-qual" letter in hand, you will earn more credibility in the eyes of the seller and more easily progress to the next steps in the buying process.

Must-Do Maintenance

2008-04-25T08:51:00.005-06:00

Think about your home relative to other items you may currently own like your car or even a bike. When you first purchased those things you knew that part of your responsibility was to maintain good upkeep if you wanted them to last. The same holds true with your home. There are several things that any homeowner needs to do to keep it in good working order. As my grandmother used to say, “an ounce of prevention is worth a pound of cure.”

Change your furnace filters monthly. At Ace Hardware, my furnace filter costs less than $10. Many people say that changing your filter every 6-months but I advocate more often. It’s so simple and yet so critical to the proper working efficiency of your furnace and can stave off breakdowns for quite some time. If a brand new filter every month seems excessive, at least take some time to clean it often, especially in the summer when dust lurks everywhere.

Drain your water heater at least once a year. What… you mean I have to drain my water filter? Think of this like a giant Britta that lives in your heater and supplies your entire home. Sediment can fall to the bottom and negative impact the filter’s useful life. Drain it annually and keep it in clean working order.

Clean those coils. If your home has baseboard heating, there’s a ton of dirt and dust that can collect on those coils. Simply remove the outer casing and wipe them clean. This will also help alleviate that “burning” smell when your heaters first kick on.

Watch for drips. I’ve seen them lurking in many a home. Under the kitchen sink, in the bathroom, wherever. If you catch small drips while they are still small, you can avoid major problems later. Tighten pipe connections with a wrench and use a plunger or pipe snake to keep them clear of debris.

Regularly replace! As much of pain as we think it is, your home needs to see replacements periodically. I’m alluding to water heaters, furnaces, roof shingles and other key components. If you anticipate living in one place for the duration, concede to the fact that these things will need replacement over the years.

Housing Relief

2008-04-24T08:32:00.003-06:00

Looks like there might be some relief coming in what we are experiencing as a nationwide real estate slow down. Senators have recently agreed to spark the economy with a $15 billion bipartisan plan to spur the housing market. This demonstrates that political momentum has shifted towards more aggressive relief in a struggling economy.

The housing package shows a clear sign that compromise on both sides of a bipartisan senate is forthcoming. As traditional, the fear of over-intervention in the economy has been a main concern. But upon homeowner and business owner testimony, lawmakers have expressed that appearing to be obstructionists could no longer be a deciding factor in non-action. Upcoming seat elections have spurred great debate in a time when politicians are fighting for re-election.

Decisions have been made to drop a bankruptcy provision opposed by the Republican party, though it was initially installed as a major part of their housing agenda. Pressure to show accomplishments this year has become a driving force involved amid low public-approval ratings for Congress. Please note however that getting these provisions added as an amendment still faces an uphill battle.

Democrats have recently agreed to halve the funds allowed for counseling at-risk homeowners to $100 million. Republicans have gone as far as to accept $4 billion in grants to aid communities in buying and refurbishing foreclosed properties, while asking for a smaller tax credit for homeowners than they initially wanted.

The ultimate plan is to raise the size of loans backed by the Federal Housing Administration to $550,000 but increase the down-payment requirement to 3.5% from 3%. With compromise being the key word here, the bill doesn't include a controversial Democratic proposal to give the FHA the ability to insure $400 billion in mortgages.

So how does this affect Steamboat? Well, in getting the nation’s economy back on track (including housing relief), people are more realistically freed from their burdens elsewhere. This ultimately spurs the demand for 2nd homes and investment property. Situated in a resort community as we are, this in effect opens the gates for buyers who would otherwise need to focus on their “home ground” before looking to destinations like Steamboat to invest. With a shot in the arm nationwide, resort real estate such as ours becomes a feasible opportunity that might otherwise be ruled out.

Inexpensive Ways to Add Flare to Your Home

2008-04-22T09:13:00.002-06:00

Here are a few ways you can improve the look of your home without spending a truckload. These simple tricks will not only add quality to your everyday living, but might just help the sale of your property too.

Add Molding. You can find decorative molding options at your nearest home improvement or building supply store. Whether it’s luxurious crown molding along the ceiling edge or chair rails bordering your favorite room, adding molding can quickly set your home apart from “vanilla.”

Paint. Sounds obvious, but this is a cost-effective way to easily change both the look and feel of your interior. If your goal is set on re-sale, try to choose neutral colors least likely to offend. Not everyone likes hot pink in the bedroom!

Frame Those Prints. I’ve seen inexpensive prints add a real “wow” factor to a room simply because of the frame. Buying a knockout frame for that print can add a true focal point to a room and worth the investment.

Add Style. Go ahead and use accent pillows or a decorative throw to make a trendy statement. You don’t have to break the piggy bank to give a normally generic room a creative flare.

Buy Live. I’ve seen many people try to stage their home with fake floral arrangements. Often however, faux flowers are seen as cheap. With the numerous flower shops that Steamboat has, go ahead and buy fresh. Ask about discounts your local florist might offer for weekly deliveries.

Arbor Day in Steamboat!

2008-04-18T12:07:00.006-06:00

I’m very excited this morning to write about my Buyer’s Agent, Stephanie Fairchild’s, involvement with Arbor Day. A new project called Fourth Grade Foresters of Colorado has been kicked off to revitalize the observation of Colorado’s State Arbor Day on April 18th. This year, Stephanie took it upon herself to provide every fourth grade student at Soda Creek Elementary with an individually packaged Blue Spruce tree seedling to take home, plant, and care for.

In speaking with Steph, she had this to say. “I appreciate the opportunity to be involved in an environmentally friendly activity, and hope the children enjoy planting their seedlings and watching them grow.”

“This project is made possible because business people in the community like Stephanie covered the cost of each of the individually packaged trees, so there is no cost to the students, teachers, school, or the taxpayer,” said Debra Ersch, Cofounder of the Project. “It’s a wonderful way for business people and individuals to show their support for the community, education and the environment.”

The Fourth Grade Foresters Project began last year and is taking place in 39 states. “Our goal is to revitalize Arbor Day in each state by providing a way for members of the communities to easily assist the schools in an important civic responsibility - getting trees planted,” said Cofounder of the project, Debra Ersch. “We are however, careful not to make this burdensome for the schools and to not duplicate any other state or urban forestry efforts. We consult with the state forestry department and obtain permission from the schools before trees can be sponsored and delivered to the students.”

The Colorado Blue Spruce trees were recommended by the Colorado Department of Forestry. The program was founded by the Free Trees and Plants.com project, who obtains some of the millions of unsold plants from growers and nurseries that would be otherwise be thrown away each year. Then workers with disabilities are hired to package and send the plants to anyone who orders them at http://www.freetreesandplants.com/. Consumers simply pay for processing and shipping costs.

“We invite everyone to celebrate Colorado’s Arbor Day by reserving their free trees and plants at http://www.freetreesandplants.com/,” added Ms. Ersch.

And thank you Stephanie, for bringing this project to Steamboat Springs. We can all “breathe” a little easier knowing your Blue Spruces will be making their way back to the earth soon!

Pre-Listing Inspections, Are They Worth It?

2008-04-17T08:09:00.002-06:00

Motivated sellers are increasingly utilizing pre-listing inspections to give their property a competitive edge. This can often be difficult for a seller to consider however, when inspections are historically the responsibility of the buyer.

There are numerous benefits to using pre-listing inspections in a market where inventory is on the rise. For example, if a seller knows about existing flaws and repair needs ahead of time, they can remedy them in a time frame that is less hectic than when problems arise out of a buyer's inspection. This is where a prepared seller can often have a great advantage.

Additionally, when sellers provide inspection reports to buyers before offers are made, it creates an atmosphere of honesty and trust. This can often decrease the likelihood that deals will fall through after the buyer's inspection.

Pre-listing inspections also allow agents and sellers to market properties as "Certified Pre-Owned." Typically homebuyers, like those purchasing new cars, are willing to buy with more confidence those properties that have been professionally inspected. This is where a small investment up front can lead to an overall smoother transaction and less stressful selling process with your property.

Purchasing Rentable Condominiums

2008-04-08T12:04:00.001-06:00

Purchasing a condo with the intent of putting it in the rental can be an excellent financial decision. However, when you buy a property with the intent of renting it, there are several factors you need to consider in order to guarantee your best chance of success.

Assessing Your Goals Before Buying
Before you buy real estate with the intent of renting it out, you need to determine your goals. For example, do you want to create a steady source of income for many years to come or are you more interested in selling the property for a profit later? If you’re looking for a property to sell for a profit later, you’re most likely best served by purchasing something that you can fix up to maximize your future profits. On the flipside, if you’re looking to get the condo rented right away, you should look for a place that is already in good shape. Don’t underestimate the time and money that might be involved in fixing up a condo to effectively compete for rentals like a newer property can.

Determining Your Expected Usage
When you get into the rental business, you will also need to decide how often you plan to use the condominium that you purchase. If you decide to visit Steamboat often, you most likely won’t be able to get your entire mortgage paid off by nightly rentals. Long term rentals however increase your ability to get all or the majority of your mortgage paid for. This is where assessing your goals before buying will once again play a key role in determining the actual usage you expect. Nightly rentals can be more lucrative than having long-term tenants, but might bring more wear to the unit as well. Another consideration is the possibility of a 1031 Exchange of this property in the future. If you’re considering a 1031 Exchange, there are limits to the amount of nights you’re allowed to live in your condo.

Picking the Right Location for Your Investment
Obviously, when you buy a condo with the intention of renting it out, you want to find property that is desirable. Otherwise, you will have a difficult time finding someone willing to rent it out either nightly or long term. Check into the management company of your prospective investment too. Find out any rules or restrictions on rentals and how they might help facilitate. Often you’ll find that a condo for sale has already been in the rental pool and historical income data can be determined. Condos that offer easy access to the slopes or provide conveniences such as shuttle service tend to produce a higher rental income than those that don’t. Other property amenities such as hot tubs add to the appeal as well.

All in all, resort towns like Steamboat offer a unique opportunity for earning rental income on investment properties. There are many opportunities to explore in this realm and making the right decision can often be quite profitable.

Wildhorse Gondola Still Under Discussion

2008-03-31T10:06:00.002-06:00

There’s still talk of a “people-mover” gondola stemming from the Meadows parking lot, through Wildhorse Meadows and ending at the ski area base. This would mitigate the need for shuttle service and would become an extraordinarily efficient way to move people from parking, to shopping, to skiing.

The problem however is logistics. So much has changed with the configuration of the ski base since the first discussions began four years ago. The new plans are calling for a detachable-car gondola that would move faster but is much bigger and requires more space to house the terminal. With the construction of One Steamboat Place in what was formerly Lot 1 of the ski area, the idea of “more space” becomes an even bigger challenge.

There are a lot of benefits that can be seen from adding a new gondola to transport guests more efficiently. Steamboat Ski & Resort Corp. President Chris Diamond has commented that they are “closer to the end (of discussions) than we are to the beginning” but didn’t think they were close to making it happen yet.

There is still a lot that needs to be learned and analyzed about how a higher-capacity gondola would fit into the overall development master plans before anything takes shape. I’d be surprised however if at one day in the future we didn’t have this new gondola system in place.

Buying for the Future

2008-03-27T14:21:00.003-06:00

Scribbling some notes the other day, it became readily clear that the face of Steamboat is changing. But it’s not all condos and retail, mind you. Take a look for yourself and you’ll see some major infrastructure improvements as well. Public funds are hard at work building a new Soda Creek Elementary School. Remodels and additions are taking place at both Strawberry Park Elementary and Steamboat Springs Middle Schools. Steamboat’s new Community Center is complete and very soon our town will have expanded resources available at the new library.

Looking at the mountain area, there are some exciting new projects on the horizon there as well. Ski Time Square revitalization is slated to begin this summer. This will be the largest capital improvement to hit our base area in history, creating a much more pedestrian-friendly place for everyone. The Urban Redevelopment Authority is still examining ways to improve traffic flow and pedestrian safety at the Mt. Werner Circle and Village Drive intersections. The base area promenade together with the completion of One Steamboat Place and the unveiling of Burgess Creek will provide the public a wonderful setting for summer enjoyment.

So as you look around at things to come, be mindful of the future shape of Steamboat Springs. It’s easy to reminisce about the way Steamboat used to be. I used to love my ’78 Honda Civic as well, but things wear out. Generally speaking, when a town spends money to improve itself, real estate values continue to climb. This is the time to buy for the future. There is more discussion and action taking place to improve the quality of life in this community than ever before. I think most people agree that these investments made in both tourist amenities and hometown infrastructure continually add to the value and quality of life here in Steamboat.

Affordable Housing Forum Series

2008-03-20T09:30:00.002-06:00

In case you missed the press release, allow me to update you on a timely discussion series and community event. The Steamboat Springs Board of Realtors, Steamboat Chamber Economic Development Council and the Steamboat Ski & Resort Corp. have teamed up to bring us the 5-part “Affordable Housing Forum Series.”

The series is open to the public and is an opportunity for concerned locals to voice opinions on economic sustainability, community workforce concerns and public policy considerations. The meetings are outlined as follows:

March 28- Current State of Affordable Housing: How is our community responding to the need for affordable housing?

May 2- Housing our Workforce/Economic Realities: Using case studies and current market data, this forum examines what typical workers can afford.

May 30- Maintaining Affordability: Will your kids be able to live here?

June 27- We’re Not Alone: Learning from other communities

July 25- Show Me The Money: Funding strategies and resources

The series will be held at Rex’s American Grill from 11:30-1:30pm. The price is $15 per session or all 5 for $70 which includes lunch. Call 875-7000 to register and keep in mind that seating is limited.

1031 Exchange Qualified Intermediaries

2008-03-18T13:44:00.001-06:00

The State of Colorado legislature is once again discussing the Regulation of Qualified Intermediaries; HB 1237. If enacted, this bill will more clearly define who can be a qualified intermediary in a 1031 Exchange transaction and what process is required to become qualified.

As it stands now, banks have been excluded from the regulations but there are some amendments still expected to be made. The bill is being lobbied both for and against in the Business Affairs and Labor Committee and has brought a lot of emotion to the head. If passed, this new bill will:

Require registration of persons or entities that facilitate like-kind exchanges
Specify the procedures to become a Qualified Intermediary in such a transaction
Assigns the Director of the division in the state legislature rule-making and regulatory authority
Establishes registration standards, record keeping requirements and complaint investigation & disciplinary procedures

Warming those "Cold Feet"

2008-03-17T14:18:00.004-06:00

There are lots of reasons why you might logically decide not to buy a specific property. Valid concerns would be poor location, not enough bedrooms or bathrooms to suit your needs or it’s too much of a “fixer-upper” for your interest. But let’s for a minute examine some of the reasons that might initially steer you away from a subject property that deserves a second look.

It’s overpriced. One thing that I’ve heard before is that “I don’t want to insult the seller by making a low offer.” The reality is however that there’s nothing to be lost by making what you consider a reasonable low offer. There are many factors involved in setting the sales price and it’s never an exact science. Often times you’ll find that making an offer, any offer, begins the negotiation process. This is where real estate sales begin.

It’s been on the market “forever.” Often buyers feel that if a property has been on the market too long there must be something inherently wrong with it. This isn’t always the case. Poor marketing, over-pricing or lack of proper staging might also be factors involved. Every home has a buyer and sometimes the two simply haven’t met. Again, if it’s of interest to you it’s probably worth exploring further no matter how long it’s been on the market.

It needs some work. So the prospective property you have in mind has a few cosmetic flaws. Maybe you’re not drawn to the choice of colors the current owner has used. Perhaps the hardware in the kitchen or elsewhere is not your particular taste. Whatever the reason you initially feel turned off by the home, step back and reflect. These things can all be changed and typically aren’t that difficult to fix. The odds of finding a truly “turn key” property that needs absolutely no input from you are slim. So get comfortable with the minor changes. After all, this is where your personality is going to shine through!

As always, happy hunting and call me if you need some outside perspective.

City & Community Management

2008-03-14T08:41:00.003-06:00

The City of Steamboat Springs recently published their annual report for the year ending December 31, 2007. Taking a quick scan it seems that a lot has truly been accomplished over the past year. It’s refreshing to know that our community is not only pouring money into the new developments creating the “buzz” right now. But that a surprising number of initiatives were undertaken that will ultimately strengthen the infrastructure of our town’s growth. Some of the highlights were:

The Contracting/Purchasing division of the Internal Services Department issued $23 million in contracts in 2007 compared to $11 million in 2006. 59% of these went to local companies!

Construction of the 8,000 sq. ft. Community Center (scheduled for completion this month) was supervised by Facilities Management and remained on budget. The new building will also be the first LEED Certified in Northwest Colorado.

$5,022,000 in local grants were awarded:
Transportation & Transit = $1.4 million
Public & School Safety = $1.2 million
Public Works = $750,000
Parks, Recreation & Open Space = $1 million
Historic Preservation = $160,000
Energy Sustainability = $25,000
Library = $500,000

The Internal Services Contracting division coordinated several major construction & grant funded contracts including the Community Center, More Barn restoration, Craig Regional Transit Facility, Base Area Redevelopment, FAA Airport Projects, Downtown Streetscape project and Water Utility projects. In addition, there were the Howelsen Snowmaking & Lighting initiatives and Hybrid Transit Bus purchase.

Looking over the financials, I think one of the most important things to keep in mind (related to real estate) is that we are still very much a sales tax based economy. Sales Tax contributed to 37% of overall city revenues, which in effect helps keep our property taxes low (relative to other areas of the country). “Charges for Services” made up another 17% of revenues.

On the expenditures side of the balance sheet, Capital Projects took up 31% of the total city expenses in 2007. This again shows the city’s commitment to infrastructure as we strive to manage growth. All in all, this is a positive sign as we continue to look closely at the future of property value and community sustainability of Steamboat Springs.

Everything You Need to Know About ARMs

2008-03-12T15:00:00.007-06:00

Adjustable Rate Mortgages

Adjustable-rate mortgages (ARMs) differ from fixed-rate mortgages in that the interest rate and monthly payment can change over the life of the loan. ARMs also generally have lower introductory interest rates vs. fixed-rate mortgages. Before deciding on an ARM, key factors to consider include how long you plan to own the property, and how frequently your monthly payment may change.

Why choose an adjustable-rate mortgage?

The low initial interest rates offered by ARMs make them attractive during periods when interest rates are high, or when homeowners only plan to stay in their home for a relatively short period. Similarly, homebuyers may find it easier to qualify for an ARM than a traditional loan. However, ARMs are not for everyone. If you plan to stay in your home long-term or are hesitant about having loan payments that shift from year-to-year, then you may prefer the stability of a fixed-rate mortagage.

Components of adjustable-rate mortgages

Adjustable-rate mortgages have three primary components: an index, margin, and calculated interest rate.

Index

The interest rate for an ARM is based on an index that measures the lender's ability to borrow money. While the specific index used may vary depending on the lender, some common indexes include U.S. Treasury Bills and the Federal Housing Finance Board's Contract Mortgage Rate. One thing all indexes have in common, however, is that they cannot be controlled by the lender.

Margin

The margin (also called the "spread") is a percentage added to the index in order to cover the lender's administrative costs and profit. Though the index may rise and fall over time, the margin usually remains constant over the life of the loan.

Calculated interest rate

By adding the index and margin together, you arrive at the calculated interest rate, which is the rate the homeowner pays. It is also the rate to which any future rate adjustments will apply (rather than the "teaser rate," explained below).

Adjustment periods and teaser rates

Because the interest rate for an ARM may change due to economic conditions, a key feature to ask your lender about is the adjustment period--or how often your interest rate may change. Many ARMS have one-year adjustment periods, which means the interest rate and monthly payment is recalculated (based on the index) every year. Depending on the lender, longer adjustment periods are also available.An ARM can also have an initial adjustment period based on a "teaser rate," which is an artificially low introductory interest rate offered by a lender to attract homebuyers. Usually, teaser rates are good for 6 months or a year, at which point the loan reverts back to the calculated interest rate. Remember, too, that most lender will not use the teaser rate to qualify you for the loan, but instead use a 7.5% interest rate (or calculated interest rate if it is lower).

Rate caps

To protect homebuyers from dramatic rises in the interest rate, most ARMs have "caps" that govern how much the interest rate may rise between adjustment periods, as well as how much the rate may rise (or fall) over the life of the loan. For example, an ARM may be said to have a 2% periodic cap, and a 6% lifetime cap. This means that the rate can rise no more than 2% during an adjustment period, and no more than 6% over the life of the loan. The lifetime cap almost always applies to the calculated interest rate and not the introductory teaser rate.

Payment caps and negative amortization

Some ARMs also have payment caps. These differ from rate caps by placing a ceiling on how much your payment may rise during an adjustment period. While this may sound like a good thing, it can sometimes lead to real trouble.For example, if the interest rate rises during an adjustment period, the additional interest due on the loan payment may exceed the amount allowed by the payment cap--leading to negative amortization. This means the balance due on the loan is actually growing, even though the homeowner is still making the minimum monthly payment. Many lenders limit the amount of negative amortization that may occur before the loan must be restructured, but it's always wise to speak with your lender about payment caps and how negative amortization will be handled.

The Shape of Things to Come!

2008-03-10T14:11:00.005-06:00

More news surrounding the future outlook of Clocktower Square! That’s correct, what’s being deemed the “portal to the new base village area,” the current Clocktower Square location is inching ever closer to development by Momentum Steamboat, LLC. Partners in the firm include former Ritz-Carlton Hotel Company president Colgate Holmes and Steamboat local Jaime Temple. The current plans for the nearly 4-acre site include 201 added residential units and over 48,000 square feet of commercial space.

Services offered within the current plans include such things as guest day care, full service spa, ballroom, conference space, ski shop and restaurants. If approved, sales of this property will include a mix of fractional ownership and whole ownership opportunities. Whole owners will be strongly urged to list their units in the rental pool, creating more lodging for area guests.

In recent reports, Vice President of Development for the Steamboat Ski Area was quoted in saying “we have no objection” to the pre-application plans that include development of the parking structure on the corner of Mt. Werner Road and Ski Time Square. This structure is currently being used for Steamboat Grand Resort Hotel guests and valet.

This new project is being called the St. Cloud Resort & Spa and I’ll be keeping you posted as to how these plans begin to take shape. Combined with the Ski Time Square reconstruction, the 5-year plan for Steamboat’s base area is 180-degrees from what we have now.

Ski Time Square Becomes Land Preservation

2008-03-07T08:10:00.003-07:00

JUST KIDDING! In fact, it’s quite the opposite, but positive none the less. Recent news announced that the demolition of Ski Time Square is confirmed to begin this summer. The Atira Group and Cafritz Interests have decided to reconsider a previous decision to demolish and rebuild the area in phases. Now they’ve announced that it’s full-tilt-boogey (paraphrase) to get it underway all at once. Current merchants will begin vacating as soon as next month and the last will be gone no later than September.

What is proposed to take form in this location is a mixed use (retail & lodging) property and a completely redesigned base area. Jane Blackstone, a development manager for Atira, was quoted in saying “We have a world-class mountain; now we want a world-class base area.” One thing that’s certain is that properties like the Thunderhead Lodge and Ski Time Square Condominiums will be destroyed, making way for more modern real estate opportunities. Should be interesting to see where the price points begin once sales are in progress (more on that to come).

Now as sad as it is to see an end of an era amongst some long-standing Ski Time Square merchants, the redevelopment is sure to raise the overall appeal and pedestrian friendliness of that area. The current structures are rumored to have sprinkler system (fire suppression) problems and the third floor of Levelz (a former night club) is structurally unsound. Top it off with establishments like Dos Amigos closing before the ski season started (leaving a vacant building in the midst of Ski Time Square) and you'll have to agree that our base area hasn't been on par with other destination resorts in quite awhile.

My only hope is that iconic establishments such as the Tugboat and The Butcher Shop, amongst others, are enabled to return once the new layout is completed. It would be a sad day in Steamboat if one couldn’t swill a beer after a day on the slopes, while watching skiing on the tube and waiting for a band like Duck Butter to take stage at the ‘ol “Tugger.”

Real Estate Prices Surge in Moscow!

2008-03-05T08:29:00.002-07:00

That and so many other real estate related headlines can be found this morning on YouTube. That’s right, I said YouTube!

If you log on today and do a simple search for “Real Estate” you will find roughly 26,900 video postings. Headlines like Millionaire Real Estate Club, My Space Cash Secrets of Real Estate and Flipping Homes are just some of the topics you’re going to find. You can learn about investing in Ukraine real estate, the Panama City real estate debacle and hundreds of ways to “make money in real estate without ever leaving your home” (sounds like real estate for shut-ins if you ask me).

So what does all this have to do with me? Well, the reality with today’s information age is that the way people are finding out about properties and real estate for sale is changing. It’s no longer good enough to simply have a website and run a few print ads. The average buyer is more savvy than that and wants more than just a simply written description. They want photos, they want virtual tours, they want VIDEO!

That’s why, in the very near future, I’m taking my property marketing to the next level. Soon you will be able to see all of my listings with video on YouTube.com and the exposure for your property listing will never be the same. So raise a glass to “Web 2.0” and here’s to the future of greater listing exposure.

Living on the Edge...

2008-03-03T07:47:00.008-07:00

The newest development to create some buzz around Steamboat... The Edgemont... has begun taking priority reservations. Refundable reservations range from $5,000 to $10,000 and will begin the process of getting you that much closer to owning premier ski in/ski out property on Mt. Werner. This is the "pre-construction" sales process at it's finest.

With the first phase of sales planned to release this spring, reservations allow you to be in top contention to buy one of these units before they are all sold out. The reservations are refundable, but as sales manager Mark Murrell recently commented, reservations "separate the curious from the serious." Reservations also guarantee you pre-construction pricing and the best selection when it comes to ultimately choosing your unit (expected to happen in June or July, 2008.

The project itself is still an evolving creature. The exact number of total units to be built as well as unit configurations are yet to be finalized. Details are still being refined which is to be expected with a development of this stature.

I am entrenching myself in the details of this project as we speak. If you would like to talk further about the benefits of pre-construction commitment, want to go on a site inspection of The Edgemont or are interested in pursuing this opportunity, I would love the opportunity to talk to you.

A Brief History of Time

2008-02-29T07:40:00.002-07:00

Happy LEAP DAY!!! That's right, today is the 29th of February. It's an opportunity for people like Tillie Iverson of Chippewa Falls, WI to celebrate her actual birthday. Happy "24th" Tillie!

In Steamboat Springs it boils down to one extra day of skiing in an already epic year. One extra day to prepare our taxes before Uncle Sam starts knocking on our doors in April. Or maybe for you it's an extra day to reflect on the past 4 years since February 29th was here last.

But what exactly is this Leap Year thing all about? I did a little research (I have to credit Wikipedia on this one) and here goes...

A leap year (or intercalary year) is a year containing one or more extra days (or, in the case of lunisolar calendars, an extra month) in order to keep the calendar year synchronised with the astronomical or seasonal year. For example, in the Gregorian calender, February would have 29 days in a leap year instead of the usual 28. Because seasons and astronomical events do not repeat at an exact number of full days, a calendar which had the same number of days in each year would, over time, drift with respect to the event it was supposed to track. By occasionally inserting (or intercalating) an additional day or month into the year, the drift can be corrected. A year which is not a leap year is called a common year.

'Nuff said. I simply hope you are enjoying your extra day and taking advantage of it in any way possible. As I look around town this morning, I already see a lightness in the faces of our locals. For us, Leap Year means one extra day of living the Steamboat lifestyle!

Steamboat #4 "Top Places to Live"

2008-02-28T08:08:00.005-07:00

Once again I read some news that tells me what I already know. Steamboat is a GREAT place to live! And if you couldn't tell from just being here or feeling it, American Cowboy magazine discards any doubt by naming Steamboat Springs as #4 in the "Top 20 Places to Live in the West- 2008." The full article and details will be printed in their upcoming April/May issue.

That's right, American Cowboy has chosen little 'ol Steamboat Springs as their #4 pick based on things like authentic cowboy culture and charm as well as "rugged independence." Scanning the list of who else was chosen I should also point out that Steamboat is the top pick in Colorado! Words like "free spirited" and "Western charm" are used to describe this year's towns that made the Top 20.

To see Steamboat ranked so high is just one more reminder that the reasons I moved here over 20 years ago and have stayed this long have not diminished. But let's face it, I didn't need a magazine article to tell me something I already knew! (but it's nice to read)...

Not Exactly "Where's the Beef?"

2008-02-27T08:03:00.003-07:00

After record-setting overall real estate sales in Steamboat last year, I've been looking closely at how to position for sales growth in 2008. Though the overall market in 2007 was up over $450,000,000 from 2006, the 4th quarter showed significant declines in sales volume.

That’s why I’ve decided to hire a full-time Marketing Director to join my team. David Wittlinger has been brought on board to help ensure that our listings receive the exposure they’re going to need to attract buyers in the coming year. The playing field is changing and there's a real "sink or swim" need to stay competitive.

But the real estate industry isn’t racing to adopt a Wendy’s-like approach to advertising. You won’t see any gimmicks (like "Where's the Beef?") but we’re certainly focusing on creative ways to position listings differently as we move forward.

While sticking to tried and true advertising mediums like newspaper and magazines will remain an integral part of the Boyd Team marketing mix, we’re seeing a need to branch out into areas like viral marketing, internet blogging (by the way, thank you for reading!) and search engine optimization. Simply waiting for the phone to ring in 2008 will surely leave complacent agents with slowed business as the means by which buyers find information on the web is rapidly changing. Those agents that aren't on the cutting edge of technology are, quite frankly, leaving their listings by the wayside.

Steamboat Land Out-prices Condos!

2008-02-25T08:35:00.005-07:00

According to the recent statistics, it seems that Steamboat Springs now has more in common with places like Aspen, Vail and Telluride. For the first time in Routt County, the average price of land has over-taken the average price of a condominium in and around our area.

An article in the Steamboat Pilot newspaper reports that some rather large-scale land purchases in 2006 are probably responsible for driving these statistics. None the less, this speaks loudly to the future of our valley and the outlook for even more development as the years progress.

Will we ever reach the levels that an Aspen or Telluride have achieved? Only time will tell. But the real meaning behind these statistics lies in trying to extrapolate relative value. If one were to compare what can be purchased at various investment levels amongst other ski towns, it's no surprise that you can still get a lot for your money in Steamboat versus other alternative resorts.

The Rules of a 1031 Exchange:

2008-02-22T08:23:00.004-07:00

With the national market being where it is right now, I seem to be getting a lot of inquiries as to how one performs a 1031 Exchange. First, allow me to begin with a simple definition:

A 1031 Exchange is a tax-deffered exchange of the proceeds from one qualified sale of real estate proceeding with the acquisition of another qualified property within a specific period of time.

Note, the key word here being "qualified." For further details on that, here are some simple guidelines to follow...

6 Primary IRS Rules for 1031 Exchanges

1) Real Property Use. Both your old and new properties must qualify as investment or business use. If both properties pass this test, you can exchange nearly any type of real estate.

2) 45 Day Identification Period. You have 45 days from the closing of your sale to list the properties you may want to buy. There are no exceptions to the deadline.

3) 180 Day Exchange Period. From the sale closing date, you have 180 days to close on the purchase of one or more properties from the 45-day list. Again, no exceptions to this deadline.

4) Qualified Intermediary (QI). The IRS mandates that you use a QI to prepare legal documents for your exchange. Because the QI must be independent, it cannot be your friend, employee, broker or even your accountant or attorney.

5) Proper Title Holding. You must purchase and take title to your new property exactly as you held the title to your old property.

6) Reinvestment Requirement. To defer capital gains tax, you must buy a property equal to or higher in value than the one you sold.

Again, these are meant simply to be the general guidelines. If you'd like help in greater detail as to how one navigates these tricky waters, I'm here to help!

Where Do I Put All My "STUFF?"

2008-02-21T15:20:00.000-07:00

So I was showing property the other day to a couple looking to “move-up” as we say in the business. They were searching for something larger than their current living situation. I showed them a few options in the area and after half-a-day of hopping over snow banks and dodging dripping roof-melt their decision seemed narrowed. For this couple it’s all going to boil down to STORAGE!

It got me to thinking… this is true for so many of us. In our over-commercialized and consumption-happy world we all tend to over-buy and accumulate a lot of junk… uh, stuff. I can’t tell you how many homes I’ve seen get passed over by prospective buyers because it didn’t offer enough storage. We all want large, walk-in closets, hidden cubbies and my all time favorite, “garage organization!” I mean, walk through my garage at this very moment and just try to avoid tripping over bikes, skis, my hockey equipment so conveniently placed right by the door or any number of my kids’ “can’t live without” toys.

So in an effort to make this blog something of use, I did some quick searching and found these friendly organizational sites. I hope you find them helpful as you begin to tackle the ever-apparent storage craze. Happy organizing!

http://www.closetmaid.com/
http://www.gladiatorgw.com/
http://www.hyloft.com/
http://www.rubbermaid.com/

The Extinction of Condos Under $300k

2008-02-15T09:44:00.000-07:00

I wouldn’t go as far as to call them “dinosaurs” but the prevalence of condominiums priced under $300k in Steamboat Springs is slowly dying off. Flip through the real estate section of the Steambaot Pilot on any given Sunday and you’ll see the cold hard truth. The supply of what locals deem “affordable units” seem to be dwindling like Champagne Powder® flakes in April.

As prices continue to creep ever higher, local experts suggest we still might see a window of opportunity before the high-end condominium projects reach completion and become occupied. Relative to other ski markets, Steamboat is still a great value but you’ll have to act fast.

Bruce Carta at Land Title Gaurantee Co. recently published a report showing that in October 2007 there were only 18 finished residential units in Routt County to sell for less than $300,000. Many of these were not even located within Steamboat city limits.

A quick search on January 14, 2008 yielded this data:

· Only 23 condo/townhome units listed for less than $300k
· 15 of the 23 were either studio or 1BR units
· Average size of a sub-$300k condo listed in the Mountain Area of Steamboat was only 559 sq. ft.

In short, the era of buying a “family size” condominium on the cheap is going the way of the T-Rex.