Friday, April 8, 2016

Types of Mountain Homes

  1. Single-Family Mountain Home

Types of Mountain Town HomesA single-family home is a standalone home that includes the land the home sits on. All maintenance and repair costs for interior and exterior are at the owner’s expense. Typically, these types of Crested Butte Home for Sale allow for one household or “family,” but in a mountain town, a single- family home may be occupied by eight “ski bums” who are unrelated. It is not uncommon for single-family homes to also include an apartment that can be rented out separately. This apartment can be a lock-off within the main home, or above the detached garage as an accessory dwelling. Some mountain towns may have deed restrictions for long-term rentals in accessory dwellings that cannot be changed. This means that the nice rental apartment above the garage out back cannot be converted into the kids’ game room space. Yes, really. Make sure to discuss all your intended uses with your experienced local agent to avoid such surprises.
  1. Townhouse

Types of Mountain Town HomesAnother type of home you will often find in a mountain town is a townhouse. A townhouse is defined as a single-family attached dwelling unit with common walls. The townhouse owner may own the land the townhouse sits on, as well as an undivided interest in common areas and facilities owned by all the lot owners or the Homeowners Association (HOA). A townhouse may be a detached home, a duplex, or an individual unit in a larger structure. All owners in the HOA share all maintenance and repair costs for exterior and common areas.
  1. Condominium

Types of Mountain Town HomesThe third type of Crested Butte Real Estate you will see are condominiums (condos). These are a separate unit or portion of a multi-unit, or a multi-unit structure or property in which people own individual units and an undivided interest in common areas typically owned by the Homeowners Association (HOA). A condominium may be a unit in a duplex, or an individual unit in a larger structure. The condo owner has individual ownership to the interior of the unit “from the paint in.” All owners in the HOA share all maintenance and repair costs for exterior and common areas with these types of mountain homes. What You May LOVE about a Condo or Townhome Considering a condo or townhouse in a mountain town like Crested Butte can be a great option for you. Many people enjoy the convenience and peace of mind of “lock-and-leave” since they know the HOA and property management people are looking after all the day- to-day operational details of the development or building. There are many of these types of mountain homes to choose from, and perhaps many in the same development, which makes the comparison of different condo units a bit easier than comparing different single-family homes. Condos come in all shapes and sizes, and a condo or townhome that is a duplex unit can feel very much like a quiet and private single family home. While there are many luxury condo or townhome properties that cost into the millions of dollars, a condo is usually more affordable and can be good choice and an opportunity to dip your toe in the water to see if being a second homeowner in your selected mountain town is right for you. What You May NOT love About a Condo or Townhome Some people don’t like the communal living arrangement in a big condo building, and may want more privacy or more space than a condo or a townhome can provide. Typically, condos are rented in the short-term rental market, which means your neighbors on your next visit could be a loud party group, and you may rarely get to meet your neighbor-owner that you share a wall with if you are there at different times. Some argue that the HOA fees are too high and they cannot justify the annual expense, especially in larger condo buildings with a front desk, bellhop, maid service, pool, and restaurant. When looking at a condo, be observant of the condition of the exterior and common areas. If you find the upkeep is shabby, then this is typically a result of a poorly- run HOA and a large number of owners who are not willing to approve an increase in dues to cover needed maintenance or capital reserves. You may be buying into a condo association that will need to assess the owners when things reach a breaking point. During the downturn in the economy, some condo buildings saw many foreclosures and distressed sales at low prices — new buyers may be “party-hearty ski-bums” who are happy with the status quo, and will always vote no. This may also be a signal to get a copy of the HOA budget and annual meeting minutes to see what is going on before purchasing these types of mountain homes.
  1. Timeshare

The fourth type of mountain town property is called a Timeshare. There will be many definitions and arrangements, but typically, fractional ownership is an ownership of use, with no physical division of property. These properties are typically condominium units, in which multiple parties hold rights to use the property, and each share owner is allotted a period of time in which they may use the property (usually one specific week). Units may be on a partial ownership, lease, or “right to use” basis, in which the share-owner holds no claim to physical ownership of the property. Timeshare fees may also include management fees. The resale market for some timeshare properties may be non- existent. “Buyer beware” is the recommendation if considering these types of mountain homes.

Chris KopfHow can I help you? I have over 30 years of sales and marketing experience and a top real estate agent in the mountain town of Crested Butte, Colorado representing affluent clients who are buying and selling their home and ranch properties in the mountains. To see featured properties or search the Crested Butte MLS – visit chriskopf.com. How is the Real Estate Market doing? Click this link to see my monthly Crested Butte Real Estate Market Reports. Whether you need help in determining which types of mountain homes are right for you or have questions about the area, I appreciate the opportunity to earn your business and be your Crested Butte Real Estate Agent. Chris Kopf, Coldwell Banker Bighorn Realty Previews® Property Specialist (970) 209-5405

Friday, April 1, 2016

Home Owners Association: What You Should Know

A Home Owners Association is defined as an organization in a housing subdivision, a planned residential community or condominium that creates and enforces rules for the benefit of homeowners. Per their rules, HOAs will collect monthly, quarterly, or annual dues to pay for upkeep of common areas.  They can also levy special assessments on homeowners to accrue capital reserves or to pay for unexpected maintenance repairs when the association lacks sufficient funds. All condos and townhomes and many single-family homes are a part of a Home Owners Association. HOAs help maintain the quality of life for the community’s residents and protect property values for all owners. A Home Owners Association is often the target of criticism when they levy an assessment or increase in HOA dues to set aside money for capital reserves or perform expensive road maintenance that members don’t think is necessary, or impose rules that members find too restrictive. All HOAs of subdivisions with single family homes will have an Architectural Control Committee, Design Review Committee or some board that will review and approve new construction, remodeling, landscaping, tree clearing, fences, etc. Common guidelines include a structure’s overall size, height, materials, colors, setback requirements, etc. The Home Owners Association Board of Directors typically appoint the people on the committee. Many mountain town and Crested Butte Real Estate HOAs have architectural restrictions, which protect mountain views, maintain a pleasing and uniform aesthetic look and feel, or prevent owners from allowing their homes to deteriorate. This group is in place to enforce the guidelines or rules for the entire HOA and to maintain the aesthetics and property values in the subdivision. It is always best to approach these committees with a local architect who has built in the subdivision previously and who knows the board members. Arrive to such a meeting with a flexible perspective.

What Documents and Laws Govern a Home Owners Association?

  1. Articles of Incorporation establish the legal basis of the association and are filed with the Colorado Secretary of State’s Office. The associations are typically in the form of a non-profit corporation.
  2. A plat map shows the defined boundaries of the various lots within the development or subdivision, as well as the association’s title with regard to the common areas. It is recorded at the county recorder’s office where the property is located.
  3. CC&Rs (Covenants, Conditions, and Restrictions), sometimes referred to as Declarations, contain the deed restrictions to the property and the need for the creation of the association. They are recorded at the county recorder’s office in the county where the property is located.
  4. Bylaws are the rules concerning the management and administration of the association. Resolutions, Rules and Regulations are additional restrictions for the community members that the association can adopt.
  5. Federal laws that govern HOAs (and what they can and can’t do) include the Fair Housing Act, Internal Revenue Code, the Americans with Disabilities Act, and the Fair Debt Collection Practices Act.
  6. There are state laws specific to common-interest communities such as condominiums, cooperatives, and homeowner associations. There may also be some additional state laws of concern, such as the State Fair Housing Laws and the state Fair Debt Collection Practices Act.
  7. Local municipal ordinances that may affect HOA and HOA members include building codes, animal control, and parking restrictions.
  8. Additional legal authority may impact an association, such as court case law, standards set by and for professionals, and certain lender requirements.

Home Owners Association Fees

Expect that there will be an HOA fee for your condo, townhome and many single-family homes. These fees are based on years of actual costs, and a budget and financials will be available to you to review. Some HOAs are professionally managed, and the fees will cover the management expense of this service. Other HOAs are managed by homeowners who volunteer to sit on the board. Most HOAs have a property manager who is subcontracted to oversee all aspects of the physical management and maintenance throughout the year and coordinate subcontractors. Most HOAs are well run and have a sufficient capital reserve fund, and a planned maintenance schedule that goes out for many years. Other HOAs may not be able to get fees increased or assessments approved and will continue to see deterioration to facilities, and consequently property values will suffer.

Home Owners Association Common Areas

Because multiple parties live in the same building(s), all residents of condominiums and townhomes must be equally responsible for maintaining the common areas. The common area maintenance can include upkeep of some interior areas of buildings, snow removal and upkeep of roads, parking lots, decks and roofs, landscaping, elevators, hot tubs, swimming pools, clubhouses, parking garages, fitness rooms, sidewalks, security gates, roofing and the building exterior. Many of these types of common areas, such as gates, landscaping of entryways, roads, clubhouses, hot tubs, and tennis courts, also exist in subdivisions of single-family homes.

Home Owners Association Covenants

Covenants are specific rules to be aware of. Some HOAs may never enforce their rules, and some need to. HOAs are good when they prevent your neighbor from keeping a jacked-up old car in the front yard, or painting their house purple with lime green polka dots. However, beauty is in the eye of the beholder, and HOAs are often perceived to be bad when they prevent owners from doing something they want to do — renting their home, having pets, or keeping an RV or boat in the driveway. HOAs can also afford a “first right of refusal” to the other property owners for any property under contract. With every real estate contract in Colorado (and in most states), it is mandatory for the HOA documents (financials, meeting minutes, covenants, etc.) to be presented to the buyer once under contract. Before you purchase a property subject to HOA rules and fees, be sure to read and understand these documents or hire an attorney to review them for you. And approach the HOA’s requirements with an open mind. Consider that every HOA has a story, and a history. You might be disappointed that you can’t keep your boat in the front yard, but if there’s a rule against it, there’s probably a reason for it.
Chris Kopf

How can I help you? I have over 30 years of sales and marketing experience and a top real estate agent in the mountain town of Crested Butte, Colorado representing affluent clients who are buying and selling their home and ranch properties in the mountains. To see featured properties or search the Crested Butte MLS – visit chriskopf.com. How is the Real Estate Market doing? Click this link to see my monthly Crested Butte Real Estate Market Reports. Whether you have specific questions about a property's Home Owners Association or simply have questions about the area, I appreciate the opportunity to earn your business and be your Crested Butte Real Estate Agent. Chris Kopf, Coldwell Banker Bighorn Realty Previews® Property Specialist (970) 209-5405

Tuesday, March 29, 2016

Determining Market Value of Crested Butte Home

What is market value of a Crested Butte home? The real answer is it is valued at the price a buyer is willing to pay, and one a seller is willing to accept. This may sound trite, but it is a fact. For the seller, it only takes one buyer, and for the buyer, there may be only one home that is their perceived dream home. Some sellers want to focus on how much it cost them to design and build the home, or what they paid for the home, or how much money they have sunk into remodel projects. This is interesting information, but the market will usually dictate the relative value of any home. Once a home is put up for sale, most sellers are motivated to sell their home as soon as possible and at the highest possible price. Determining market value and pricing it correctly is the single most important factor in whether or not a home sells quickly, or at all. Location and quality are key in determining price. Whether it is a buyer’s or seller’s market and the inventory of similar properties for sale will also impact the price (supply and demand). The best data to help determine market value of Crested Butte Homes for Sale is to look at what similar properties have sold recently, and if they are really comparable. You or your spouse may love a home, but not the price. Is the price justified given the market? You will be relying on your agent for guidance here. Access to all current property information is essential and can be helpful to justify your offer to the seller.

Comparables (“Comps”)

You may find your perfect home to be above your budget and it may be priced above other comparable homes in the market, but given your timing and opportunity costs, it could be the right decision for you and your family. The reality is that every home is different, especially in a mountain town like Crested Butte. Homes in mountain towns are not like suburban USA where every home in the subdivision is “very similar” in age, size, finishes, quality, and, yes, price point. In a mountain town, there may be three four- bedroom homes side by side that are totally different. One that was originally built as a small cabin in 1890, moved to the lot, and expanded and remodeled five times, next door to a home built in 1982 that has had one owner and has not been updated at all, next to a brand new home finished in 2015. None of these neighboring homes are going to be comps for the other. Most mountain towns that have a ski area also have a base area with many condo and town home developments. There are some beautiful new base area condo developments. Many of these condos were built during the boom time of ski area development in the mid 1980s. Many of the condos’ interiors have had minor updates done to kitchen and bathroom. It is hard to raise ceiling heights, and it is impossible to make a three-bedroom 1,200 square foot condo into a four-bedroom 2,000 square foot condo. Usually these condo projects were built with two, three and four bedroom options, and each floor plan was identical in layout, quality, and finish-out. It is easier to identify comps for these properties. The differences will be views, furniture, and whether the individual unit has been remodeled and updated. Determining market value of Crested Butte home in these areas is more black and white. Price per square foot is a useful unit of measure for comparing many single-family homes. Using price per square foot is also useful if you have many similar homes (like the condos or town homes). Price per square foot can be a challenge when you have a very valuable piece of land with a small home on it; then the price per square foot of the home will be out of sight, and it will not accurately represent the value of the entire property, or if you are trying to compare two dissimilar homes. Real estate is not black and white; in fact, much of it in a mountain town lands somewhere in the gray area. Again, this is where you will be looking to your real estate agent as an expert to add some value to the discussion, and to provide some guidance.

3 Keys When Determining Market Value of Crested Butte Home

1.Compare similar homes in the area

It helps to have a competent Crested Butte real estate agent who knows the market and has been in the homes that have sold that are similar. It is great if there are lots of transactions to select from, but sometimes an area just does not have many or any similar properties that have sold in the past six months or even the past year. Going back two to three years and extrapolating the rise or fall of market prices may be helpful.

2.Compare outside the area

Looking at similar sold properties in other areas may be helpful and provide some needed data points.

3. Compare asking price and selling price of other properties

Finally, looking at the other properties that are for sale and similar and then applying the average difference between the asking prices and selling prices to the subject property to determine an estimated selling price can be another data point. These three methods taken together should provide a pretty good ballpark for what can be expected as a reasonable selling price given the current market. If you have toured many homes given your criteria and price point, you will also begin to form an opinion as to value, and what is a good deal or overpriced in the market. Ultimately, it is your decision. It is an important decision, and given your financial status and outlook, you may draw a line in the sand you won’t step over, or the final price point may be “close enough” for you to move forward.
Chris KopfHow can I help you? I have over 30 years of sales and marketing experience and a top real estate agent in the mountain town of Crested Butte, Colorado representing affluent clients who are buying and selling their home and ranch properties in the mountains. To see featured properties or search the Crested Butte MLS – visit chriskopf.com. How is the Real Estate Market doing? Click this link to see my monthly Crested Butte Real Estate Market Reports. Whether you need help in determining market value of Crested Butte home or have questions about the area, I appreciate the opportunity to earn your business and be your Crested Butte Real Estate Agent. Chris Kopf, Coldwell Banker Bighorn Realty Previews® Property Specialist (970) 209-5405

Monday, March 21, 2016

Building Your Crested Butte Dream Home

Chris Kopf Crested Butte Real Estate
To Build or Buy? This is a common question and a good one. Of course, the answer is “it depends.” Mostly, it depends on you. I have owned two second homes, and between that time I bought and sold two lots that I thought I wanted to build my own Crested Butte Real Estate on. Have you been waiting for twenty years to build your dream home in the mountains? You may have your plans locked away in a special trunk and the key has been hermetically sealed in a mayonnaise jar waiting for just the right time. Some buyers do not want to buy someone else’s poor home design, a deteriorating home, or a home with unforeseen expensive problems.

Considerations for Building Your Crested Butte Home 
It can be fun and rewarding to build your dream home in the mountains, especially if you have worked and planned for years to arrive at this point. To build your dream home, you will need to find a dream lot, and a dream architect and a dream builder. Luckily, you have a dream real estate agent that can help with this. Unless you have a very large sum of money and money is no object, the first thing you might want to do is talk with some local architects to get an understanding from their perspective what the overall costs will be to design, build and furnish your Crested Butte dream home. Based on your criteria, an architect may also have input on the area, and can help determine which lot would be less expensive to build on. Flat lots are typically less expensive; lots on a slope require more foundation and expensive concrete, but can provide some nice views, and walkout basement options.

Once you have selected and purchased the lot, your new architect will start creating the renderings and detailed plans for you to review. It may take months, but after the plans are in final form and you approve, then the architect will shepherd your plans and designs through all the aspects of the architectural review/ approval process with the HOA and the municipal building department review and permitting. The architect can also help facilitate hiring a builder to build your home. It is common that the architect will put the job out to bid to three or more builders, allowing you and the architect to interview and select the builder. Typically, the process will take eighteen to twenty-four months (or longer) to complete your dream home from inception to the certificate of occupancy. Things take longer in the mountains; the labor and materials are not as prolific as in suburban metro USA. The weather in the mountains affects specific tasks — excavation is tough in the middle of winter, concrete won’t set properly below 30 degrees Fahrenheit, and cold temperatures can have a detrimental effect on concrete strength development.

Why Use a Local Architect? 
You may have a brother or uncle or friend who is an architect in Florida. That is great; they should be able to design a wonderful Florida home and know everything about hurricane design and construction, and energy efficient design to reduce solar gain in the home so that excessive and expensive air conditioning is not needed, etc. But in the mountains, there are no hurricanes and the opposite is needed for a good home design — for example, you will want to capture the solar gain, and use materials that hold in that heat. It is rare for a mountain home to have air conditioning, and snow load and snow shed are important to the engineering and design of your mountain home. Snow shedding in front of windows, exterior doors, onto driveways, and onto decks is not good. Having a place to “store” snow when it is pushed off driveways, walks and decks is critical.

Unfortunately, there are many homeowners that are living with the inconvenience of poor architectural design every winter. In addition to the design aspects mentioned, local architects also know the good local builders, engineers, excavators, and interior designers. They also know where to source quality reclaimed timber, and they can be the extra set of eyes and ears onsite as your home is being built. Since you will likely be building the home remotely, hire a local architect to ensure you have a smooth and enjoyable experience building your Crested Butte dream home. You will be glad you did.

Remote Architect Story 
There is a house just up the street from my home that went through a bit of a challenging process after construction started. The owner hired an architect in his hometown of Portland, and the plans were drawn up, a builder was hired, and the building permits were issued. The excavators started digging and the concrete foundation of the home was poured. After the foundation was in place, the adjacent homeowner came to town and was surprised to see the new construction started. This was a surprise because the HOA’s Architectural Review Committee had never seen the plans for the home and had not given approval for the design. Construction was halted and the review process was started. The plans were rejected! The adjacent neighbor’s viewshed was going to be obstructed; there were issues with the building envelope, and the building height and the setbacks. The new design changed the home significantly, including a costly change to the foundation, but ultimately the home was built. The owner could have avoided all of the above issues and saved a lot of money by working closely with a local architect with local knowledge of the design criteria and the local process.

Building — Back of the Napkin Analysis 
What goes into building a luxury home in the mountains? Cost of land, architect fees, permitting fees, materials, labor, change orders, furniture, furnishings, window coverings, landscaping, retaining walls, driveway... In the big city, you may be able to build a super high-end home for $200 per square foot. Building in your mountain dream town is probably double or more because labor is more expensive, you are building a custom home, and you will be using more materials to account for snow loads, and different materials than your metro suburban home. Some material differences may include: log or timber trusses, reclaimed wood, ironwork on railings, accents and fixtures, hardwood/ slate/stone floors instead of carpet, in-floor heat vs. forced air, larger open rooms, mud room, a second living area for kids, vaulted ceilings, stone fireplace, large view windows... Let’s say you have a number from a builder of $300 per square foot for a luxury home in your mountain town. Conventional wisdom says to add 20 percent, since there are always overages and change- orders and add-ons. But let’s say you don’t believe me and are demanding a firm price, so let’s use $300* per square foot.
Description
Price
Cost of lot (land) $150,000
House construction at $300 per square foot x 3,500 square feet $1,050,000
Large 2 car Garage at $250 per square foot x 750 square feet (25 x 30) $187,500
Architect fees $50,000
SUB-TOTAL $1,437,500
3% municipal sales tax on materials ( @ 60% of house construction cost) $21,600
Water tap fee, or approximate cost to drill well $20,000
Septic tap fee, or approximate cost to install septic system $15,000
Permitting and any impact, linkage, or affordable housing type fees $25,000
Driveway — excavation, ditch & drainage, roadbed, asphalt or concrete $25,000
Landscaping — trees, shrubs, wildflowers, flower beds, irrigation $25,000
Hardscaping — retaining walls, rock walls, stone walkways, patios $25,000
Full house audio / video equipment and installation $25,000
Furniture and furnishings $100,000
SUB-TOTAL $281,600
GRAND TOTAL  $1,719,100
*Check to verify your assumption here as the house plus attached garage are the two largest numbers. Also determine what is included and excluded, and are items like high-end kitchen appliances, washers and dryer(s), a lite-touch lighting system, light fixtures, outdoor hot tub, decks, drawer pulls...etc. all in the builder’s number? Of course, this is a “back of the napkin analysis”, and many things may be different with your home, so “mileage will vary,” but the majority of items and ballpark budget items for consideration are represented here. How can I help you? I have over 30 years of sales and marketing experience and am a top real estate agent in the mountain town of Crested Butte, Colorado representing affluent clients who are buying and selling their home and ranch properties in the mountains. To see featured properties or search the Crested Butte MLS – visit chriskopf.com. How is the Real Estate Market doing? Click this link to see my monthly Crested Butte Real Estate Market Reports. I appreciate the opportunity to earn your business and be your Crested Butte Real Estate Agent when buying your Crested Butte dream home. Chris Kopf, Coldwell Banker Bighorn Realty Previews® Property Specialist (970) 209-5405

Tuesday, March 15, 2016

Mountain Home with Septic System, Water Well

If you are buying a home in-town or within a dense subdivision, the water on your property will most likely come from a tap into the existing water and sewer systems.  These are either managed by the water municipality or the HOA in your area. However, if your dream is to be in a quiet, remote location in the forest away from people and other houses, then you will most likely be buying or building a mountain home with septic system and private water well. It is very common for multi-million-dollar luxury homes in outlying mountain areas to have both a private water well and an individual septic system.

Crested Butte Homes for Sale with Water Well

If you are looking at a lot in a remote subdivision, it is very important to know if the parcel has a well, or whether the adjacent parcels have “good” wells (plenty of water flow, and quality water free of heavy metals). You should request a well report, which gives the details on the depth of the well, the flow rate of the well, and the quality of the water. It may be wise to contact the company that put the well in place to come inspect the well and have a water test done. Many homes that have a well will have a very large holding tank or cistern, and the float in the tank will “request” more water from the well pump at the bottom of the well when needed and keep stored water available for spikes in usage that may exceed the flow directly from the well.

Mountain Home with Septic System

The stand-alone septic system treats the wastewater of the home. When you take a shower, flush the toilet or put anything down the kitchen sink, it will go into the septic system. With proper maintenance, a septic system can work efficiently and should last twenty-five to thirty years. When it does come time to replace the system, the cost is anywhere from $10,000 to $30,000. Home inspections don’t include a septic system inspection, so you should contact a septic system company to provide a separate inspection report. In a mountain home with septic system, it is common for the system to be pumped every two years, but for a second home that gets less use, this interval may be longer. Typically, a private septic system will be no different than what you are used to in the city, with a few exceptions.

How a Septic System Works

Typical septic systems consist of a septic tank, a distribution box, and a leaching eld. The septic system treats the home’s wastewater by temporarily holding it in the septic tank. In the tank, waste solids separate from the water. The solids are decomposed by bacteria and later removed when you have the tank professionally pumped. Solids such as grease, fat, and food wastes like coffee grounds don’t break down easily and should be kept out of your septic system. After the partially treated water (the “effluent”) leaves the tank, it flows into the distribution box, which distributes this water into the leaching eld. Drainage holes in the pipe allow the water to drain into gravel trenches and then slowly seep into the soil where it is further treated and purified (secondary treatment). A properly functioning septic system does not pollute the groundwater, but it is always recommended to have the septic system located as far from the well as possible (and downhill from the well). Use common sense — don’t put items into your system that won’t decompose easily, such as dental floss, tissues, cigarettes, cotton swabs, kitty litter, coffee grounds or sanitary napkins. Typically, a garbage disposal may not be used with a septic system unless the system has been specifically designed to accommodate one. Do not put cooking oil or grease down the drain. Chemicals and cleaning products should not go down the drain either, including pesticides, paints, thinners, poisons and even disinfectants. These chemicals will kill the good bacteria in your system that help to purify the sewage. Like many other aspects of maintaining your home, if you have a mountain home with septic system, you will have a septic contractor look after your system and advise you on best practices to ensure your system is working and out of sight, out of mind.
Chris Kopf
How can I help you? I have over 30 years of sales and marketing experience and a top real estate agent in the mountain town of Crested Butte, Colorado representing affluent clients who are buying and selling their home and ranch properties in the mountains. To see featured properties or search the Crested Butte MLS – visit chriskopf.com. How is the Real Estate Market doing? Click this link to see my monthly Crested Butte Real Estate Market Reports. Whether you need help in determining which types of mountain homes are right for you or have questions about the area, I appreciate the opportunity to earn your business and be your Crested Butte Real Estate Agent. Chris Kopf, Coldwell Banker Bighorn Realty Previews® Property Specialist (970) 209-5405

Wednesday, March 9, 2016

Determining Market Value of Crested Butte Home

What is market value of a Crested Butte home? The real answer is it is valued at the price a buyer is willing to pay, and one a seller is willing to accept. This may sound trite, but it is a fact. For the seller, it only takes one buyer, and for the buyer, there may be only one home that is their perceived dream home. Some sellers want to focus on how much it cost them to design and build the home, or what they paid for the home, or how much money they have sunk into remodel projects. This is interesting information, but the market will usually dictate the relative value of any home. Once a home is put up for sale, most sellers are motivated to sell their home as soon as possible and at the highest possible price. Determining market value and pricing it correctly is the single most important factor in whether or not a home sells quickly, or at all. Location and quality are key in determining price. Whether it is a buyer’s or seller’s market and the inventory of similar properties for sale will also impact the price (supply and demand). The best data to help determine market value of Crested Butte homes for sale is to look at what similar properties have sold recently, and if they are really comparable. You or your spouse may love a home, but not the price. Is the price justified given the market? You will be relying on your agent for guidance here. Access to all current property information is essential and can be helpful to justify your offer to the seller.

Comparables (“Comps”)

You may find your perfect home to be above your budget and it may be priced above other comparable homes in the market, but given your timing and opportunity costs, it could be the right decision for you and your family. The reality is that every home is different, especially in a mountain town like Crested Butte. Homes in mountain towns are not like suburban USA where every home in the subdivision is “very similar” in age, size, finishes, quality, and, yes, price point. In a mountain town, there may be three four- bedroom homes side by side that are totally different. One that was originally built as a small cabin in 1890, moved to the lot, and expanded and remodeled five times, next door to a home built in 1982 that has had one owner and has not been updated at all, next to a brand new home finished in 2015. None of these neighboring homes are going to be comps for the other. Most mountain towns that have a ski area also have a base area with many condo and town home developments. There are some beautiful new base area condo developments. Many of these condos were built during the boom time of ski area development in the mid 1980s. Many of the condos’ interiors have had minor updates done to kitchen and bathroom. It is hard to raise ceiling heights, and it is impossible to make a three-bedroom 1,200 square foot condo into a four-bedroom 2,000 square foot condo. Usually these condo projects were built with two, three and four bedroom options, and each floor plan was identical in layout, quality, and finish-out. It is easier to identify comps for these properties. The differences will be views, furniture, and whether the individual unit has been remodeled and updated. Determining market value of Crested Butte home in these areas is more black and white. Price per square foot is a useful unit of measure for comparing many single-family homes. Using price per square foot is also useful if you have many similar homes (like the condos or town homes). Price per square foot can be a challenge when you have a very valuable piece of land with a small home on it; then the price per square foot of the home will be out of sight, and it will not accurately represent the value of the entire property, or if you are trying to compare two dissimilar homes. Real estate is not black and white; in fact, much of it in a mountain town lands somewhere in the gray area. Again, this is where you will be looking to your real estate agent as an expert to add some value to the discussion, and to provide some guidance.

3 Keys When Determining Market Value of Crested Butte Real Estate

1.Compare similar homes in the area

It helps to have a competent real estate agent who knows the market and has been in the homes that have sold that are similar. It is great if there are lots of transactions to select from, but sometimes an area just does not have many or any similar properties that have sold in the past six months or even the past year. Going back two to three years and extrapolating the rise or fall of market prices may be helpful.

2.Compare outside the area

Looking at similar sold properties in other areas may be helpful and provide some needed data points.

3. Compare asking price and selling price of other properties

Finally, looking at the other properties that are for sale and similar and then applying the average difference between the asking prices and selling prices to the subject property to determine an estimated selling price can be another data point. These three methods taken together should provide a pretty good ballpark for what can be expected as a reasonable selling price given the current market. If you have toured many homes given your criteria and price point, you will also begin to form an opinion as to value, and what is a good deal or overpriced in the market. Ultimately, it is your decision. It is an important decision, and given your financial status and outlook, you may draw a line in the sand you won’t step over, or the final price point may be “close enough” for you to move forward.

Chris KopfHow can I help you? I have over 30 years of sales and marketing experience and a top real estate agent in the mountain town of Crested Butte, Colorado representing affluent clients who are buying and selling their home and ranch properties in the mountains. To see featured properties or search the Crested Butte MLS – visit chriskopf.com. How is the Real Estate Market doing? Click this link to see my monthly Crested Butte Real Estate Market Reports. Whether you need help in determining market value of Crested Butte home or have questions about the area, I appreciate the opportunity to earn your business and be your Crested Butte Real Estate Agent. Chris Kopf, Coldwell Banker Bighorn Realty Previews® Property Specialist (970) 209-5405