Condominium Considerations

If you are thinking of purchasing a condominium, you should be aware that there are some differences between owning a home and owning a condo.  During your condominium search, you will hear different language that may be new to you.  Hopefully, these definitions will help make sense of this real estate talk:

Condominium:  A form of real estate ownership where the owner receives title to a particular unit and has a proportionate interest in certain common areas (hallways, parking lots, clubhouse, lawns, etc.).  The unit itself is what you are buying, a separately owned space whose interior surfaces (walls, floors and ceilings) serve as its boundaries.

Declaration and Bylaws:  This is a legal deed that sets forth the sponsor’s intention to create the condominium, and covers such things as voting rights, owner’s responsibilities, restrictions on pets and property usage, and who pays for what. 

Association Dues:  Dues are paid by each condo owner on a monthly (usually) basis, and may cover such things as management services, building maintenance and insurance, common utilities, water, sewer, trash, snow removal, TV cable, gas and electricity.  Dues vary by complex, so be sure to check not only the amount you must pay, but also what exactly you are paying for.  The more items covered by dues, the fewer bills you must pay each month.  Note:  If the dues cover buildings insurance, then you would not be required to purchase Homeowners Insurance, but it’s still a good idea to get Contents Insurance which covers the personal property; appliances, carpet, cabinets, etc.

Special Assessments:  When there is not enough cash in the association’s reserve accounts to meet an emergency, or to fund an improvement, all condo owners may need to contribute more than their usual dues.  The assessment may be just one time or spread out over several months.  As the condo buildings are getting older, we are seeing this more often.

Amenities:  Many condominium complexes have clubhouses, pools, hot tubs, game rooms, laundry rooms, picnic areas, etc. that are owned by the association, and are funded by association dues.  Generally, condos with more amenities have higher dues, as well as higher rental income potential. 

Right of First Refusal:  Some condominium associations have a rule that after an offer is accepted then a notice is given to the other owners in the complex.  The other owners have the right to purchase that unit at that negotiated price.  The other owners do have a time limit to respond to the first right of refusal, its set by the association documents.

Ten Things You Should Know Before Buying a Condo

1.      What is a condo?  It’s a separately owned space whose interior surfaces serve as the boundaries.  You will also own a share of the common area of parking lots, hallways, clubhouse, lawn, etc.

2.      Be sure to check out the Declarations, By Laws, Rules and Regulations.  These are the documents that created the condominium, they cover things like your voting rights, owner’s responsibilities, restrictions, etc.  The rules may restrict things like charcoal grills on the decks, short term rentals or pets. The condo documents should also answer questions like; who maintains the deck.

3.      Association dues are usually due monthly.  What the dues include depends upon the association.  They may include water, sewer, cable TV, gas heat, building maintenance, trash dumpster, insurance on the building, snow removal and management services.  Dues vary by complex, if the association has pools, hot tubs, elevators, etc to maintain they will be higher.  Even if the dues include the building insurance you will want to get insurance to cover the interior of your condo.

4.      The association budget is another item to be sure to review.  The association should be collecting enough to pay the bills plus setting aside money for repairs and improvements that will need to be done in the future. Items like boilers and roofs should have a plan for repair.

5.      Read the minutes for the annual condominium association meeting and board meetings.  Those will tell you what is concerning owners, the future upgrades and improvements.  If they are thinking about an assessment or if enough money is in the reserves. 

6.      Speaking of assessments; as the complexes get older more repairs need to be made.  Updating of the common areas may be necessary to keep up the property (and the values too).  By reading the minutes and talking to board members you should have an idea if an assessment is due in the near future. 

7.      Some association documents have a first right of refusal.  It was more common back in the 1960s and is rare in a newer complex.  What it usually entails, is after the buyer has an accepted offer, a letter goes out to the owners in the complex with the price and terms.  One of those owners could take up the first right of refusal (at the great price you negotiated) and you are out of luck.  Some associations are changing their By Laws to remove the first right of refusal because it makes getting a loan on the property more difficult.

8.      What amenities does the complex have?  A pool, hot tub, game room, tennis courts, elevator, etc might be something you would like, but they also increase the constant upkeep of the complex. 

9.      When not using the condo yourself are you going to rent it out?  The association may have restrictions on certain types of rentals.  Some do not allow short term rentals. 

10.  Financing can be a challenge depending on the complex.  Figure you will have to put at least 20 to 25 % down for a new loan.  If the complex has a front desk, time shares and/or commercial space on the ground floor you may have to go to a “portfolio lender”  where you may need more down and have a higher interest rate.

     

Ice Castle in Silverthorne

This is picture is taken from my Metro Brokers office

Across the street from my office in Silverthorne an Ice Castle is being built by Brent Christensen and Ryan Davis. It will be over 35,000 square feet, made of a series ice towers made of frozen water. Depending on weather it should be ready for tours in December. In fact they say it will change throughout the season.

This picture was taken on November 15th

This one November 26th - it is getting bigger!

The town of Silverthorne is sponsoring the ice castle. They will be selling tickets $10.00 for adults and $7.00 for children under 12 or $35.00 for the family.

Ten Things to Look Out for When Buying a Condo

1. How much will you need to put down for a loan? In the current lending market you are probably going to have to put at least 25% of the purchase price down for a down payment.
2. Look at the condition of the complex. As a condo owner you will share in the common areas. Are they kept up or does it look like there is a lot of deferred maintenance that hasn't been kept up.
3. Pool, hot tub, clubhouse? Do you care if there are amenities? They will increase the association dues, but may increase your rentals too, if you want to rent out the condo.
4. Association dues, what do they include? Be sure to review the budget. Some associations like to keep their dues low and have special assessments for improvements or even necessities (like a new roof). Others believe in putting away money each month toward future improvements. Which would you be more comfortable with?
5. Be sure to read the home owners association minutes. Read past years also to give you some history on the complex. Is the association dealing with their issues or putting them off year after year.
6. Is there a current special assessment? Who is responsible for the payment. It's addressed in the real estate contract. In my experience the seller usually pays for the current assessment. Reading the minutes will give you a clue of future assessments.
7. Check out the Declarations, By Laws and Rules and Regulations. Make sure there are no rules you can't live with. Most associations have restrictions on pets. They may not be allowed at all, a restriction that only owners can have pets, or a restriction on the size or number of pets. A few complexes do allow tenants to have pets.
8. Does the complex have a first right of refusal? Some of the older complexes still have this requirement on their books. When an offer is made a letter goes out to the other owners giving them the chance to buy the unit at the same price and terms. It's very irritating for a buyer when they have negotiated a great deal and one of the other owners takes it up.
9. Rental restrictions. Some complexes have restrictions against short term rentals. They may allow rentals but they have to be with a minimum six month lease.
10. Occupant restrictions. Some condos are designated as "affordable housing" with a restriction that someone who works in the county at least 30 hours a week must be the occupant. When the price looks too good to be true it is probably one the those deed restricted units.
Lots of things to look out for when buying a condo. My job is to help you pick out a property that would meet your needs and then check out the documents.

Summit County Parade of Homes 2011

The Summit County Parade of Homes is two weekends September. September 17th and 18th, 24th and 25th. Besides the homes it's a great time to visit Summit County to view the autumn leaves.

It's always fun to see the latest trends in building and decorating. Tickets are $10.00 which are good for both weekends, it benefits the Summit Foundation. On Friday the Realtors are invited to check out the homes, which is a fun but exhausting.  The homes are spread out from Breckenridge to Montezuma to north of Silverthorne.

Normally the homes are all brand new construction, but this year several of the homes had been remodeled or had additions.  That was particularly interesting to me - I see so many additions that don't make sense.  I saw thirteen of the seventeen homes that were open.

This is a view of Breckenridge Golf Club from on of the homes.

It's fun to see the latest trends.  Some of the homes had whole-home electronic systems to control the heat, security, music and TVs.  I'm looking for the "fun" trends - like TVs built in to the bunk beds and showers that would hold several people!  I saw them both.

TVs at each bunk bed!

Giant steam shower - big enough for a party?

Summit County Colorado Market Update

I’ve been neglectful about updating the market information. What can I say, the holidays take over and then the first of the year stuff. Now back to work!

This is the time of year when we have the least number of listings in Summit County. If the property hadn’t sold last summer the sellers take the property off the market for the winter and rent it. Though this winter there is still a nice selection of properties and some of them seem like real good buys. Starting in May we will see more coming back on the market. Buyers are taking advantage of the great interest rates and in some cases motivated sellers.

Here’s the latest on Dillon

The Dillon area consists of the town of Dillon, and several unincorporated neighborhoods. Some of those neighborhoods are Dillon Valley and toward Keystone, Corinthian Hills, Summerwood, Summit Cove, Whispering Pines and Soda Creek. The area has several price points.

The lowest price for condos is usually in Dillon Valley East and West. Currently there are 13 units on the market. The lowest price is a one bedroom unit for $94,900. I haven’t seen prices that low in years. There’s a three bedroom two bath for $172,400. In the town of Dillon near the lake, the lowest priced one bedroom is in the Yacht Club complex for $189,000, it has a great location right on the shore. Prices go up to $850,000 for a three bedroom condo in Summerwood perched above Lake Dillon. Right now there are 65 condos and townhomes on the market in the Dillon area, 5 are pending and 55 have sold in the last year. I do have a list of the condos and townhomes in the Dillon area on my web site. It won’t list prices but you will see a picture of the complex and other information. If you see something you like then you can search the MLS to see if anything if for sale in that complex – or just ask me.

Very few single family homes are for sale in the town of Dillon, but the surrounding neighborhoods of Dillon Valley, Summit Cove, Soda Creek and Whispering Pines have many options. There are 39 active listings of half duplexes and single family homes in the Dillon area. Of those the lowest price is $320,000 for a bank owned three bedroom home in Dillon Valley. Five homes are listed for a million or more. The most expensive is a fantastic home with incredible view of Lake Dillon. It has four bedrooms and 4 baths with 3440 square feet and the price is $1,795,000. Seven homes are currently pending. Looking back over the last year, 50 single family homes and half duplexes have sold, the lowest price was $265,000, it was a half duplex in Dillon Valley and the most expensive sold for $ 2,591,000 a four bedroom home right on the shores of Lake Dillon.

Frisco

Here’s my update on the Frisco real estate market. Frisco is a historic town in the center of Summit County, located on the west side of Lake Dillon. Where Dillon is known for its sail boats and regattas the Frisco end of the lake has lots of islands and quiet coves. Frisco does have its own marina too. Over the years I’ve met a lot of buyers who really wanted to own in Frisco because of the central location and the “cute” Main Street.

There are 77 condos and townhomes on the market. The lowest price for a condo that is not deed restricted is a two bedroom unit in the Creekside complex for $234,000. Prices go up to $1,190,000 for a completely remodeled Lagoon Townhome. Thirteen condos and townhomes are pending and in the last year 83 have sold. You can get information about Frisco condos on my web site. You will find a picture of the complex, size and year built. No prices because they are always changing, ask me what’s available or search the MLS.

In single family homes and half duplexes thirty-five are for sale. The lowest priced is a three bedroom home for $479,000. Otherwise the prices range from $535,000 to $1,750,000. Currently 4 homes are under contract and in the last year 31 single family homes and half duplexes have sold with prices ranging from $410,000 for a 3 bedroom home to $1,900,000 for a four bedroom home built in 2008. There are three homes for sale with deed restrictions, the prices are from $239,900 for a two bedroom home and up to $349,900 for 3 bedrooms. The lowest sale price this last year was a deed restricted two bedroom half duplex which sold for $199,481.

Let me know if you would like more information on any of these properties. Every week I print out a list of everything for sale in Frisco and Summit County, let me know if you would like a copy. To get the latest info, search the mls from my web site.


Keystone

About once a month I do a market update of the different areas in Summit County. More properties are going to be coming on the market as the ski season ends.

In financing a resort condo a buyer will probably need at least 25 % down and good credit, but the interest rate will be good too.

Keystone is where you will have good choices if you are looking for a resort condo. The River Run Village area at the base of the mountain is very popular. The units are all newer, built since 1996 and within an easy walk to the Gondola. One bedroom units start at $229,500, two bedrooms at $325,000. Not in River Run, but right at the Mountain House is Slopeside with studio units that start at $144,900. If you are looking for more for your money, the older complexes offer nice big floor plans and lower prices. In the Quicksilver complex there is a two bedroom unit that is listed for $314,900. The numbers for all the condos and townhomes in Keystone are: 207 active, 14 pending and 137 sold in the last year. On my web site I do have a list of the condos and townhomes in the Keystone area. There won’t be prices because they are always changing, but you will see when the complex was built, how many units, and what amenities it has. If you see something that temps you – contact me or search the mls.

Keystone homes and half duplexes start at $499,900. for a two bedroom Cabin in the Pines home and go up to $3,960,000. Right now there are 42 homes listed for sale. Many of those homes are in Keystone Ranch backing to the golf course. In lasts 12 months seventeen homes have sold. Every week I put together a list of everything for sale in Keystone and Summit County, let me know and I can email it to you. You can also search the Summit County MLS from my web site.

The small mining town of Montezuma is east of Keystone about 10 miles. Homes and lots for sale appear in the Summit County MLS under the Keystone area. Right now there is just one home for sale; $1,195,000 for a 4 bedroom home with over 4000 square feet.

Wildernest

In general Silverthorne and the Wildernest area are where you will get the most for your money in Summit County. The lowest price for a condo is $89,500; it's a studio unit in Riverbend Condos. Right now 83 condos and townhomes are currently for sale in Silverthorne including Wildernest (above Silverthorne to the west). Prices go up to $679,000 for a new three bedroom townhome. Thirteen are pending and 95 have sold last year. Those prices ranged from $115,000 for a one bedroom Treehouse Condo up to $535,000 for a four bedroom townhome. You can find a list of the condos in Wildernest and Silverthorne on my web site. The size of the complex, year built and pictures are there too. To find out prices you will need to call me or search the mls. Prices are always changing.

In the last year the market for single family homes and half duplexes has slowed down; what a great buyer’s opportunity with lower interest rates and lots of choices. There are 91 homes and half duplexes for sale in the Silverthorne area. I’ve listed a great three bedroom home near the Blue River for $499,999. The prices on homes range from $255,900 to $3,499,000. Ninety-six homes have sold in the last year, prices from $280,000 to $2,200,000.

You have many options in building sites in Silverthorne. Prices range from $153,900 for almost half an acre on the fairway at The Raven golf course and go up to $535,000 for over an acre in the Three Peaks subdivision. If you are looking for larger acreage the lowest price is $499,900 for 20 acres up to $6,300,000 for 156 acres at Slate Creek. There are small ranches north of Silverthorne “down the Blue” starting at $795,000 for a 4 bedroom home on 40 acres.
Every week I put together a list of everything for sale - I'll send it to you if you would like. You can also search the Summit County MLS from my web site.

Heeney and Blue Valley Acres

If you are willing to drive north of Silverthorne about 30 miles to Blue Valley Acres (which is just into Grand County) or 25 miles north to Heeney on the Green Mountain Reservoir you can get a lot more for your money.

Right now there are four homes for sale in Blue Valley Acres. The lowest price is a three bedroom home for $179,000 and the highest $417,000. In the last year seven homes have sold per the Summit County MLS. The most expensive sold for $365,000.

Vacant lots in Blue Valley Acres are a comparative bargain too. There are ten lots on the market. The prices range from $38,000 to $189,000. I’ve got a great 4 acre lot listed for $75,000. You can find out more about Blue Valley Acres on my web site.

In the Heeney/Green Mountain Reservoir area (24 miles north of Silverthorne) there are three homes for sale. I have one listed, a one bedroom cabin on over a third of an acre for $175,000. In vacant land there is a acre above the marina for $199,900 and two acres near Cataract Creek for $315,000. Follow the links to property info. In between the north end of the Green Mountain Reservoir and Blue Valley Acres is 9 acres along Highway 9 with a well for $59,900.

Frisco Market Update

Here’s my update on the Frisco real estate market. Frisco is a historic town in the center of Summit County, located on the west side of Lake Dillon. Where Dillon is known for its sail boats and regattas the Frisco end of the lake has lots of islands and quiet coves. Frisco does have its own marina too. Over the years I’ve met a lot of buyers who really wanted to own in Frisco because of the central location and the “cute” Main Street.

There are 72 condos and townhomes on the market. The lowest price for a condo is a two bedroom unit in the Littlehorn complex for $199,000. There are 40 units for sale under 400K. Prices go up to $1,190,000 for a completely remodeled Lagoon Townhome. Seventeen condos and townhomes are pending and in the last year 82 have sold. You can get information about Frisco condos on my web site. You will find a picture of the complex, size and year built. No prices because they are always changing, ask me what’s available or search the MLS.

In single family homes and half duplexes forty-one are for sale. The lowest priced is a four bedroom home for $424,000. Otherwise the prices range from $449,500 to $1,750,000. Currently 2 homes are under contract and in the last year 35 single family homes and half duplexes have sold with prices ranging from $410,000 for a 3 bedroom home to $1,900,000 for a four bedroom home built in 2008. The lowest price was a deed restricted two bedroom half duplex which sold for $199,481.

Let me know if you would like more information on any of these properties. Every week I print out a list of everything for sale in Frisco and Summit County, let me know if you would like a copy. To get the latest info, search the mls from my web site.