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A recent study released by CNN Money.com outlines housing trends to watch that may apply to you. The study concludes that after a decade of extreme highs and lows in the market, they predict that 3/4 of the nations 384 metropolitan areas will see prices down less than 5% a year from now.

What does that mean to the ski resort market, in places like Steamboat Springs?

Plenty.

Read full article here>

Bank-owned properties are coming in at less than 30% of seller owned homes, CNN reports

According to recent statistics at CNBC, there seems to be a comeback to the high-end housing market after the last 2 years of declining sales.  Take a look at the rest of the article…

Want more information on high-end homes in Steamboat?  Click here>

Search all of Steamboat’s high-end homes here>

Steamboat Springs Downtown Winter Carnival

Sales in the luxury market are still moving in Steamboat’s economy amid rough waters nationally, the Steamboat Pilot reported Sunday.

One Steamboat Place, one of the most recent developments located in Gondola Square, has experienced 6 sales of fractional ownership in March and April of this year. 

Trailhead Lodge also experienced brisk sales, as did Edgemont, which released pre-construction pricing back in 2008 when the market began to slow down.  The biggest challenge for the developments has been hanging onto the existing contracts, which in today’s financing world, condominiums and new construction have had their ups and downs.  Although there have been some folks who have decided to walk from “hard deposits” based on lifestyle changes and portfolio alterations, there is still a huge camp out there who have plenty of money to park and are looking elsewhere than Wall Street to find the best place to settle down, and Steamboat demonstrates that its value is continuing to attract buyers. 

Here’s the breakdown year to date:

• Edgemont:   $30.28 million, 13 condominiums sold
• Trailhead Lodge:  $27.43 million, 32 condominiums sold
• One Steamboat Place:  $71 million, broken down by 11 whole ownerships ($40.45 million) and 73 Residence club Memberships ($30.65 million) sold

Downtown Steamboat Springs, with the available inventory of Howelsen Place, Alpen Glow, the Olympian and the Victorian are great opportunities to find homes where sales teams are willing to work with Buyers and their brokers to purchase homes in the coveted downtown, at much less than the developer asking price two years ago.  And the best part of it all – there’s some great views of the ski mountain at many of these residences and a morning cup of coffee is right out your door.

Read full story on Steamboat’s base area real estate sales here by Tom Ross>

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Search all of Steamboat’s properties at one location>

Home in Stagecoach, where properties are selling in the $200's  Address: 22704 Red Cloud Way Seller: Neal Drickey Buyer: Albert C. and Tasha N. Campos Sale Date: 2010-04-08 Sale Price: $280,000 Property Description : 2,136-square-foot two-bedroom, three-bath single family home on .61-acre lot 12A in Morningside at Stagecoach

Fractional properties are still moving in the ski resort real estate market   Address: 2200 Village Inn Ct. Seller: Points of Colorado Inc Buyer: Marcia M. Pellicone Sale Date: 2010-04-08 Sale Price: $55,900 Property Description : Timeshare interest in condominium unit 7802 in Steamboat Villas

A $4 million sale on Angler's Drive, area known for long, established professional locals   Address: 1055 Anglers Drive Seller: Mark J. Halvorson Buyer: Gerald M. Shapiro Trust Sale Date: 2010-04-07 Sale Price: $4 million Property Description : 6,541-square-foot single-family home with 4,423square ft living area, built in 2007 on 1.24-acre lot 2 in Eagles View filing 5, five bedrooms, six baths, listed for $6.77 million, May 07, original lot sale: $945,800 in July 07

Land is also making headlines   Address: 581 Steamboat Blvd. Seller: Gerald and Olivia Shapiro Buyer: Mark J. and Diane M. Halvorson Sale Date: 2010-04-07 Sale Price: $625,000 Property Description : .45-acre undeveloped building lot 102 in The Sanctuary filing 5 Properties are still moving in Steamboat Springs, high-end resort discretionary buyers are still researching the market to invest in what they feel are great opportunities, and foreclosures and short sales are still making up a decent segment of the market.  To find out more, click here> Want to search all of Steamboat’s properties? Click here>

A sign of the times

Foreclosures and short sales – the big talk of the town.  Ski Resorts and other vacation areas seem to be hard hit by the economy and there’s so many stories about the available inventory and where it’s going.   As of today, there are 38 Bank Owned properties in Routt County, and 71 that are in a pre-foreclosure status.  As of March, there were 17 new foreclosures that came online in Steamboat.  Out of the 1,148 properties for sale in Steamboat’s city limits, we are seeing a fraction of the total amount of homes available. 

So how do you dig through the available resources to find the best all around buy in order to create your own little piece of paradise?  Sorting through websites, paying online search engines, relying on old public records…there’s so much information to go through you may as well be looking at a white out when you embark upon your search. And pre-foreclosures, trustee sales, auctions that seem to never happen – where do you start?

Navigating your way through the maze...

Here’s my list of Top Ten Things to know about buying short sales and foreclosures in a Ski Resort:

1. Adjustable rate mortgages are coming due and home equity lines of credit are tapped out. 

Let’s face it, people live beyond their means.  And ski areas are expensive for the average person to have a primary residence or 2nd home.  Combined with the construction industry taking a hit, a slowdown in development, inability to qualify for loans and uncertainty in the market, many speculators in resort areas who purchased homes or land with the desire to leverage, build or “land bank” are left holding the bag.  As a result, there’s an abundance of short sales and foreclosures that have recently come on the market. 

2. What’s the definition of Short Sales? 

Short sales are defined as when the value of a property is no longer is worth what the mortgage is that the owner is holding.  When lenders agree to do a short sale in real estate it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.

3. How does a Foreclosure work in the state of Colorado? 

Sellers stop making payments and walk away from their mortgage.  Most people don’t choose to go into foreclosure voluntarily, but there’s a host of reasons why it happens.  Being laid off of a job, leveraging beyond unimaginable risks during the “fix” and “flip” years, divorce and forced moves to another state, purchasing another home prior to a primary residence selling,  mounting debt and medical losses.  Foreclosures vary from state to state, and in Colorado, once a homeowner stops making payments, the lender then hires an attorney to file the required documents with the Public Trustee to get recorded.  The Public Trustee files a notice for 5 consecutive weeks. There’s notice given to the property owner, with so many days to redeem the property, but in the end, the foreclosure sale must take place within 45 – 60 days of the recording.  Once the property gets sold on the courthouse steps, the borrower has up to 75 days to come up with the funds by paying the foreclosure sale amount, plus interest.

The new Obama Plan

4. Banks are taking their time to solve problems.  The short sale epidemic does not come without its challenges.  Although Bank of America and Wells Fargo have streamlined their process in handling short sales by training and hiring thousands of people, the process can still be long and buyers must be patient.  Once a property is found, and placed under agreement, the transaction may get shuffled from one internal person to another and turnover is high.  Resort properties can take anywhere from 45 days to 6 months to get to the closing table.  But, having said that, I have a short sale under agreement right now and everything is going as smooth as can be.  The buyers had all paperwork in order prior to executing the agreement, and the bank is motivated.  There is an exceptional listing broker that is experienced, which also helps.  I’m lucky in that there is no emotional drama that has clouded the transaction, a blessing in an unpredictable  market where the ups and downs can be quite challenging.

5. The increase in losses that banks are taking is helping some buyers.  In Steamboat, a home listed for 1.395 million in July of 2008 was back on the market in 2009 for $697,500. Although the previous owner took the cabinets, appliances, light fixtures and the kitchen sink, the new owner saw the location – between downtown and the mountain – as a great opportunity to replace the missing amenities with his own personal taste.  Paying cash for the property was an advantage because the banks wouldn’t loan on a property that was considered unlivable.  If you have cash and are searching for a bargain, there are opportunities out there.

6. Inspections and Contracts can be one-sided.  Buyer beware:  short sales and foreclosures are often “as is, where is” agreements, and the lending institutions may often incorporate clauses whereby the buyer must make hard decisions within a short period of time, and that is causing some buyers to sign without the attorney present.  Sound advice from an experienced broker:  get an attorney to review everything, and make sure to conduct an inspection on the property by a qualified Home Inspector.  It’s an investment, a lifelong committment in many cases, and clean title, surveys without encumberances, and home inspections are only a few of the concerns buyers need to have to feel good and secure about their purchase.

7. How is credit affected on a short sale for the Seller?  For a borrower’s credit history, a short sale is typically reported as “settled” and considered as severe as a foreclosure, said Maxine Sweet, vice president of public education for Experian PLC, the world’s largest credit-reporting company. The impact of a short sale on a credit score is similar to that of a foreclosure. It may drop a credit score of 780 to 620, according to Minneapolis-based FICO Corp.  So, if you are considering a short sale versus a foreclosure, the impact on the seller may be the same.

8. How much can I expect in negotiating the best deal from a short sale?  The banks really are in the driver’s seat when a short sale property comes on the market.  They are willing to accept based on market value, and they don’t want to get the property back again at any time in the near future.  Once a price is determined, there isn’t much negotiating.  A property located just 20 minutes from Steamboat was put under agreement for $215,000 in February of this year; it was previously financed by the builder for over $600,000 in 2008. At the time the property went on the market, offers came pouring in – 6 in total.  The banks took the offers as the realtor submitted them, and after the first buyer couldn’t qualify and the second buyer could not come up with the funds, the 3rd buyer secured the home – as a first time homebuyer, purchasing the home using a USDA loan.  In this case, the home is in great shape.

Buying a home can be a mystery without an inspection

9. Is there anything to improve the lackluster pace of short sale acquisitions?  Even under a clouded veil, there is hope on the horizon.   According to Bloomberg, Wells Fargo, Bank of America Corp. and JPMorgan Chase & Co. this year have hired and trained more staff, developed software systems for expediting short sales, and increased marketing of short sales to delinquent borrowers.  And lenders are going to be compensated under a new Obama plan, who  stand to receive up to $2,000 in incentives to close short sales under a Treasury Department plan unveiled last Nov. 30.

10.  Should I feel sorry for people who are losing their home?  More than 1 million homeowners chose to walk away from thier homes last year.  Some argue that there has been an epidemic of “contagion” that has reduced the social stigma of being in foreclosure.  With so many people in this situation, it frees up a lot of cash and some folks are spending that money on Ipods, vacations, concerts, and some are renting in the same neighborhood and paying thousands less than they were on their mortgage.  

But there’s the other side of the coin, where folks legitimately lost their livlihood due to all the reasons mentioned previously. 

In closing….

So how do you make the best decision when negotiating for a home where the Sellers are about to lose everything?  Approach cautiously – and keep your own ethics in check.  One client of mine who was concerned that they were “asking for the moon” and taking advantage of a Seller had to be reminded that we are all faced with financial decisions throughout life, and everyone manages their money differently.  A willing Seller and motivated Buyer at the end of the day want to come to terms to reach a common goal.  A great deal of sensitivity and diplomacy comes into play when I am handling a foreclosure or a short sale. In representing Sellers, I recommend attorney and tax advice prior to any decisions; the tax consequences can be enormous in debt relief when Uncle Sam comes knocking on the door following a foreclosure.  And in representing Buyers when it comes to negotiating the best price for a home – whether it be a short sale or foreclosure, it’s critical to ensure that buyers are not acting too quickly with a “sale” fever mentality that clouds decisions that may have lasting effects simply because they wanted a “good deal”.   More often than not, buyers have overlooked surveys, inspections, easement problems, and title issues because they simply wished to get into a home for the cheapest price possible. 

In Steamboat Springs, foreclosures and short sales do not make up the majority of the market.  The socioeconomics of a ski resort generally have greater than average income levels for primary and secondary homeowners.  But, there are a fair share of more homes coming on the market in 2010, and we expect to see that number rise through the end of the year.  Buyers and Sellers are advised to hire a seasoned realtor who can navigate their way through the short sale and foreclosure maze, with the ability to provide accurate, correct and fast information when these types of properties come on the market. Here is a sampling of what is on the market today>

If you are looking for foreclosures or short sale listings, and would like advice on how to find the best offerings in your price range, click here>

Article contributors include Bloomberg and the Steamboat Pilot and Today.  Author Joy Rasmussen is a Broker/Owner of Colorado Group Realty, located in Steamboat Springs Colorado and can be reached at (970) 846-8678.

You’re invited … to a very GREEN occasion…

If you are in beautiful Steamboat Springs, stop by EcoCorral for an open house, scheduled for St. Paddy’s Day, 3 – 5 pm to celebrate the GREENest development being built in Steamboat. 

See you there!    

 Directions: From Downtown, take Lincoln Ave. south, turn left on Hilltop Parkway, proceed 3/4 mile, look for the solar panels on your right. 

Call (970) 846-8678 for further information. 

Green homes are selling faster and higher than other real estate

USA Today reports that Green Homes are selling for more and faster than the rest of the real estate market.

A recent report describes green homes are outpacing other traditional homes even in an otherwise slower than usual marketplace.  the report tracks home sales from ’07 – ’09 and concludes that in Portland, Oregon, green homes are selling for 12% more than non-certified green homes, and in Seattle, eco-homes are now making up a total of 33% of home sales over the last year.

That’s good news for the latest development in Steamboat Springs, where EcoCorral is making ground as the first sustainable neighborhood certified by Built Green Colorado and built by Energy Star Certified General Contractor KJ Otterman.

Read full USA Today story here >

Enjoy an overview of EcoCorral, a green, sustainable brand new neighborhood in Steamboat Springs, starting at $495,000 for a beautiful mountain loft townhome located at the base of the mountain in between mountain and downtown – walking distance to great trails, snow shoeing, cycling and all the wonders the Rocky Mountains have to complete your dream ski home.

 

 

Living GREEN in a Ski Resort:  EcoCorral of Steamboat Springs makes its debut

This week, residents, visitors and folks looking to purchase a home in Steamboat Springs will be introduced to a new 28-townhome development that will enhance their lifestyle and alter their carbon footprint. 

EcoCorral of Steamboat Springs, which broke ground just 15 months ago, is the only green development currently available on the market for those home purchasers who are seeking a way to live a sustainable lifestyle, while not sacrificing amenities and finishes in thier homes.  Builder KJ Otterman has found a way to integrate such features as solar heating and hot water, Anderson green windows, engineered wood flooring, and structural products that have not raised the cost of purchase – but instead has raised the bar of expectations in a market where green lifestyles are exploding across the nation. 

Read here >