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.

Guide for Finding the Perfect Second Home Part 8

Will the property qualify?
That seems like an odd question, but these days it’s the first thing that comes to mind when a buyer says they want a loan. Because of the new more restrictive lending rules properties that you could easily have gotten a loan a couple years ago are tricky now. One of the biggest changes is in condominiums. If the lender perceives that the property is a “condotel” they may not we able to make a loan on the property. Things that will give the lender the impression that the complex could be a “condotel” are a front desk, time shares and short term rentals in the complex. The lenders are going on the internet and searching for the name of the complex and if anyone is renting their unit they are saying it’s a “condotel”.

Even single family homes can have some issues. An example is if the value of the lot is too high in relationship to what the structure is worth. That seems odd, but if the property is outside of the cookie cutter world that the lenders like, then it’s much harder to get the loan. The lenders have investors who are funding the loans; the source for money has become very conservative.

If you property is an odd one, or even a condo it will still probably be possible to get a loan, but figure you may have to put more money down and the interest rate may be higher.

Guide for Finding the Perfect Second Home Part 7

How much can you afford?
Maybe that should have been higher on the list – but its fun to dream. Many lenders are happy to make loans on second homes. Generally you will need at least 20% down payment. 30 and 15 year fixed rate loans are available along with adjustable rate loans. The rates will probably be a little higher than a loan if you were buying your primary home. The lender will look at all of your debts including the second home payment and association dues if applicable and compare those to your income. A good rule of thumb is the ratio between income and debts shouldn’t be more than 36%.

The interest rate you will be changed will depend on your credit score, how much down payment and the property.

Using a local lender can really save you a lot of headaches. They know the local market and idiosyncrasy of resort properties. I work with a lot of good lenders and can refer you to them.

You may qualify but with the property? Find out more tomorrow in part 8.

Guide for Finding the Perfect Second Home Part 5

There are four types of residential property.
• A single family home is a freestanding structure where you own the land around the home. The lot size can be as small as less than a 1/10 of an acre up to several hundred acres. Normally with a single family home you will be responsible for all the maintenance on the property. That will include snow plowing, landscaping and painting at least.
• A duplex is actually a half of a duplex. Normally each side in individually owned. There will be some land, with the lot line going right through the building. We have a few duplexes where are split between top and bottom, but most are side to side. There will be a recorded document called a party wall agreement which will address the responsibilities of each owner, such as insurance coverage and paint color to name a few. The two owners may go together to arrange for snow plowing and maintenance but it will be the owners expense.
• A town house is attached to more than one other unit. There may be a small piece of land besides the footprint of the building. Most of the land around the building will be common area. With a town home there is usually an owners association and association dues. The dues can cover as little as the insurance on the common area up to building maintenance including painting, snow plowing, landscaping, building insurance and more.
• A condominium will be more like apartment living. You will own the unit plus a share in the common area (hallways, parking lots, clubhouse, lawns, etc). There will be association dues; they usually include the maintenance on the building, snow plowing and shoveling, dumpsters for trash, common utilities and landscaping. At most complexes it also includes water, sewer, insurance on the building, and basic cable TV some include the heat and electricity. Some complexes have a clubhouse with pool and hot tub. The advantage is that you only have to worry about the inside of your unit. The home owners association will hire people or a property management company to do the maintenance on the outside and common areas of the complex.

Guide for Finding the Perfect Second Home Part 2

Another big question is what kind of property. How you are going to use the property? Will you be up every week end or just in the summer or winter? What do you like to do when you are in Summit County, ski, hike, bike, sail or all of the above? Do you want to be able to leave your car and do your favorite activities from your condo, town home or single family home? Will kids be coming along too? Maybe a condo with a pool and clubhouse would be good so they would have lots to do. When you arrive on Friday night, do you want to be able to walk right in the property with out worrying about snow plowing and other maintenance? Do you want the property to be available for rentals when you aren’t using it? Lots of questions, answering them can really help narrow down the choices.

I can help by knowing your options here in Summit County. I think of finding the right fit between buyer and property as a logic problem. I’m a Realtor, but I look at my job as a counselor.

Condo and Townhome Market Snapshot

Now for the look at the condos and town homes for sale in Summit County.
There are a total of 1127 for sale in the county, 480 of those are in the Breckenridge area.
The average price is $546,704 and the median price $416,500

There are 315 properties listed for less than $300,000 and 112 for over a million.

198 are under contract

523 have sold in the last twelve months

Of the sold condos and townhomes 175 sold for less than $300,000. 35 for over one million. The average sold price was $460,964 and the median price was $365,000

Here's a link for a history of what prices have done in Summit County Colorado.

Frisco Real Estate Market Update

This is my favorite time of year in Summit County real estate. It’s because there are lots of choices, it’s easy to get in and see the condos or homes and when you buy you get to enjoy the whole summer.

Frisco is an especially neat little town with shops and restaurants with in a short distance of any of the properties. Don’t forget the lake with marina, parks and bike path.

There are 80 condos and townhomes on the market, of those 32 have been built in the last couple years or have yet to be built. The lowest price for an existing condo (not deed restricted) is a studio unit for $225,000. There are 20 units for sale under 400K. Prices go up to $1,320,000 for a new three bedroom in Latitude 39 (not built yet). Eight condos and townhomes are pending and in the last year 94 have sold.

In single family homes and half duplexes fifty-seven are for sale the prices range from $499,000 to $2,995,000. In the last year 27 single family homes and half duplexes have sold with prices ranging from $443,890 to $1,560,000.

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.

Dillon Colorado Market Update

This picture of the Dillon Marina to to remind me the summer will be here before we know it.

Dillon has several price points. In Dillon Valley East and West Condos there are thirty units on the market. The lowest priced is a studio unit for $124,900. In the town of Dillon near the lake there is a shortage of condo options. The lowest priced is a cute one bedroom in Yacht Club for $189,000. Prices go up to $1.3 million for a three bedroom condo at Summer Ridge.

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 58 active listings of half duplexes and single family homes in the Dillon area. Of those the lowest price is $347,900 for a three bedroom bank foreclosure in Dillon Valley. Fourteen homes are listed for a million or more. Two homes are currently pending. Looking back over the last year, 52 single family homes and half duplexes have sold, the lowest price was $254,670, twelve sold between 3 and 4 hundred thousand and one over a million.

There are several choices in vacant lots in the Dillon area. Currently there are twenty-two on the market. The prices range from $174,900 for a half acre lot above Dillon Valley to $399,000 for a building site in Summerwood. Twelve lots sold this past year with prices from $160,000 to $329,900. 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 Dillon and Summit County, let me know if you would like a copy. To get the latest info, search the mls from my web site.

Silverthorne Colorado Real Estate Snapshot

Here’s what’s going on in the Silverthorne real estate market.

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 $144,900, it's a studio unit in Riverbend Condos. Right now 111 condos and townhomes are currently for sale in Silverthorne including Wildernest (above Silverthorne to the west). Prices go up to $779,000 for a new three bedroom townhome. Five are pending and 125 have sold last year. Those prices ranged from $130,000 for a studio condo up to $672,000 for a four bedroom townhome built in 2001.

This winter the market for single family homes and half duplexes has slowed down; there are some signs of an increase in activity. There are 144 homes and half duplexes for sale in the Silverthorne area. The prices on homes range from $329,900 to $5,250,000, eleven are pending. Eighty-six have sold in the last year, prices from $276,900 to $3,975,000.

If you are willing to drive north of Silverthorne about 30 miles to Blue Valley Acres which is just into Grand County you can get a lot more for your money. Right now there are ten homes for sale in Blue Valley Acres. Prices start at $248,000. I’ve listed a neat five bedroom home for $299,000. Here’s a link to more info on my web site. In the Heeney/Green Mountain Reservoir area (24 miles north of Silverthorne) I have a three bedroom lake cottage listed for $395,000. Here’s a link to that property info.

You have many options in building sites in Silverthorne. Prices run from $165,000 for over an acre north of Silverthorne and go up to $699,000 for almost four acres in the Three Peaks subdivision. If you are looking for acreage north of Silverthorne the lowest price is $499,900 for 20 acres up to 2.7 million for 70 acres in Shadow Creek Ranch. There are small ranches north of Silverthorne “down the Blue” between 1.8 and 5.25 million. Around the Green Mountain Reservoir, there is a 20 acre lot for $599,900 and 314 acres up Cataract Creek Road for $3,375,000.

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.