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.
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 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
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.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 |
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.

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
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.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.
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 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
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.
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