Colorado Dreams

I’ve seen partnerships that were great and others that were a disaster, here are some things to think about which might help them work.

When buying a property with friends or family there are several things to think about. How will you take title? A partnership, LLC? You will want to talk to an attorney to set it up correctly. Are you getting a loan? Usually everyone is on the loan, the lender will look at everyone’s credit, income, etc. Who will pay the bills? How will you deal with co-owners late payments? Are pets allowed, how about smoking, and rentals?

It’s very important to put the “partnership” in writing so then everyone will know what is expected. Consider the money, how much will you put down and how much each month, add extra for maintenance. How will you use the property? Many partnerships make a calendar with one or two week intervals. Cleaning up after the use is important, will you hire someone or put a specific list together of what is expected. Maintenance of the property, who will be doing it? Personal property, will you each be bringing in furniture, etc. How will you keep it straight? What about guests or friends using during your week, OK? When one of the partners wants out, what will you do? Sell, find a new partner? What will the value be? Will you offer a first right of refusal to current owners? Lots to think about.

We have shared interest properties for sale in the MLS if you wanted to get into something already established. You can search for them on the Summit County MLS by following this link. Search for “Shared Interest”. Make sure you find out the answer to all those questions before taking the plunge.

1. What is a condo?  It’s a separately owned space whose interior surfaces serve as the boundaries.  You will also own a share of the common area of parking lots, hallways, clubhouse, lawn, etc.
2. Be sure to check out the Declarations, By Laws, Rules and Regulations.  These are the documents that created the condominium, they cover things like your voting rights, owner’s responsibilities, restrictions, etc.  The rules may restrict things like charcoal grills on the decks, short term rentals or pets. The condo documents should also answer questions like; who maintains the deck.
3. Association dues are usually due monthly.  What the dues include depends upon the association.  They may include water, sewer, cable TV, gas heat, building maintenance, trash dumpster, insurance on the building, snow removal and management services.  Dues vary by complex, if the association has pools, hot tubs, elevators, etc to maintain they will be higher.  Even if the dues include the building insurance you will want to get insurance to cover the interior of your condo.
4. The association budget is another item to be sure to review.  The association should be collecting enough to pay the bills plus setting aside money for repairs and improvements that will need to be done in the future. Items like boilers and roofs should have a plan for repair.
5. Read the minutes for the annual condominium association meeting and board meetings.  Those will tell you what is concerning owners, the future upgrades and improvements.  If they are thinking about an assessment or if enough money is in the reserves.
6. Speaking of assessments; as the complexes get older more repairs need to be made.  Updating of the common areas may be necessary to keep up the property (and the values too).  By reading the minutes and talking to board members you should have an idea if an assessment is due in the near future.
7. Some association documents have a first right of refusal.  It was more common back in the 1960s and is rare in a newer complex.  What it usually entails, is after the buyer has an accepted offer, a letter goes out to the owners in the complex with the price and terms.  One of those owners could take up the first right of refusal (at the great price you negotiated) and you are out of luck.  Some associations are changing their By Laws to remove the first right of refusal because it makes getting a loan on the property more difficult.
8. What amenities does the complex have?  A pool, hot tub, game room, tennis courts, elevator, etc might be something you would like, but they also increase the constant upkeep of the complex.
9. When not using the condo yourself are you going to rent it out?  The association may have restrictions on certain types of rentals.  Some do not allow short term rentals.
10. Financing can be a challenge depending on the complex.  Figure you will have to put at least 20 to 25% down for a new loan. If the complex has a front desk, time shares and/or commercial space on the ground floor you may have to go to a “portfolio lender” where you may need more down and have a higher interest rate.

Feel free to contact me if you have other questions.  800-571-1091

Compared to many areas Summit County, which includes Dillon, Silverthorne, Frisco, and Breckenridge Colorado, doesn’t have very many foreclosures. Part of the reason is that many of the buyers put at least 20% down when they purchased their property, that gives the owner equity so that the buyer can wait for prices to increase again.

The number of “certificate of purchases” (that’s when the foreclosure finally goes through and the bank or someone else purchases the property) increased by almost 100% over 2009 . In 2009 there were 57 and in 2010, 113. More are coming in 2011. In Summit County we have approximately 29500 residential properties.

You can search the county foreclosure list by following this link. Here are a few hints when looking at the county’s web site. The first two numbers of the file number are the year. The PDF link that county has is real old information, but if you go to “Summit Foreclosure Property Search” enter 11 for the year 2011 and you will get the most recent foreclosures filed. You can enter a 10 and see the foreclosures filed in 2010, etc.

Not all the properties on the list will end up going back to the bank.

The foreclosure process is per the Colorado Statutes, the Summit County Public Trustee conducts the sale. To get a property you would have to outbid the bank (the amount owed plus back interest and attorney fees). If you win the bid, you have two hours to bring the cash, wired funds or certified check into the Public Trustee. A Deficiency would be when it sells for less than the amount owed. It does happen occasionally. The owner may be libel to the bank for the deficiency, you as the bidder wouldn’t have to worry about it. The Public Trustee has to wait in case there are other liens before a deed is issued.

I looked up the history on a property that is bank owned and is currently on the market to give you an idea of the time line. It’s a three bedroom three bath 3879 square foot single family home in Dillon with a view of the lake. It is currently listed for sale at $609,900, it’s been of the market since September, the listing price by the bank started at $749,900. Its file number was PT09-123, so the process started in 2009, the foreclosed amount was $662,846.59 but after fees and interest the amount the bank was owed was $759,568.05. The bank put that bid into the Public Trustee, it went to sale on 5/21/2010. The deed was issued to the bank on 6/18/2010. The bank listed it three months later for less than they were owed (with the fees), now it’s listed for less than the foreclosed amount ($609,900).

The bank sells “as is”. Usually they have someone come into the property and turn off the water and drain the pipes. I know of a condo that is bank owned and the buyer wanted to inspect, they turned on the water and there were leaks all over the place. If you are going to outbid the bank at the Public Trustee’s sale you probably won’t know the condition at all. The owner or a tenant may be in the house. Some owners take everything (light fixtures, faucets, appliances) when they move out.

I do have a list of the bank owned properties that are currently in the MLS here. What is available is always in the state of change, give me a call or email with questions and so I can double check for the latest information. A bank owned property isn’t always the best buy, some sellers may have bought their property years ago and can afford to sell for even less than a foreclosed property. Depending on the bank, the response time when you make an offer might be weeks, in the mean time you could be dealing with a motivated seller and get a response quick.

With over 1,300 condos, townhomes, half duplexes and single family homes on the market in Summit County Colorado, the choices seem overwhelming. When you narrow down the things you would like in a property it’s a much different story, and there may not be many options.
1. One of your first choices will be the type of property. Would you like a home owners association that will take care of the outside maintenance?

The Gore Range on my way into work

2. How do you plan on using the home, will you be driving up on Friday night ready for a day of skiing on Saturday. With a home owners association (HOA) the walks and parking areas should be clear of snow, you can just walk in your unit and relax.
3. Is a clubhouse with hot tub and/or pool important to you?
4. A security check may help with peace of mind. With a condo, the HOA may provide security checks making sure the heat is on and working on our cold days. With a single family home you will responsible for keeping up the maintenance yourself, hiring someone to plow the snow, etc.
5. Do you want to pay association dues? You will have to be going the upkeep yourself, but if you would like more privacy a single family home may be the way to go.
6. Where should you buy? Do you want to be at the slopes, in town, near Lake Dillon? To me what you like to do determines the location you would like best. If you are into hiking, Wildernest may be the perfect neighborhood because you can walk right out your door and hit the trails. Into shopping? Then in town in Frisco or Breckenridge may be the spot. Biking? Silverthorne and Dillon or any of the towns and neighborhoods in the valleys. Boating? Heeney, Frisco and Dillon have Marinas.
7. Other “amenities”? A couple items in the property that will really narrow down the selection is a garage and washer and dryer in the unit. You would be surprised how many properties don’t have garages, considering how long our winters are. Most of the condos were built with the weekend guest in mind. There is probably a coin operated washer and dryer in the building, but one in the unit isn’t that common.
8. When you aren’t using the property yourself will you rent it out? That would be something to consider when thinking about location. In the winter condos near the ski slopes rent best. Though my theory has always been if you pick a property you like for yourself, you can find a renter who would like it for the same reasons.
9. What is most important? There are lots of things to think about. Prioritizing will help. Is a hot tub that important or would the rec center in Silverthorne or Breckenridge do. Is access to a washer and dryer down the hall OK, or do you need one in the unit?
10. Price? That will be a big factor. Part of my job is to help you answer those questions and figure out what you want. Give me a call 800-571-1091 or send me an email keats@coloradodreams.com I can help you with the options in Summit County.

I’ve had several people over the last week or two ask me how the market is doing.  I figured you would like to know too.

It looks like this year is going to be up about 10% in the number of sales over last year. Keep in mind last year was the lowest number of sales since 1989!

One thing that seems to be happening lately is the buyer with cash that makes a “low ball” offer, and if the seller doesn’t take it he moves on to another property and tries again. I’m seeing some incredible sales. The trick is the buyer had cash and was prepared to buy quickly without any contingencies.

If you think of it, considering cash is not making any money at the bank, the buyer is figuring real estate is a good investment over the long run and in the meantime he gets to enjoy the property.

I was talking with the seller on a listing I have that’s just south of Breckenridge. He was saying that the description of the house would tempt him if he wasn’t ready to sell it. It made me think about if it would tempt me if I wanted a second home near Breckenridge. The answer is yes, and these are the reasons; first would be the size of the house, there are three bedrooms and three baths, and lots of other potential sleeping space with a den and office. The home has a total of 2448 square feet plus an attached two car garage. The lower level bedroom and bath could be a lock off if you wanted to have a caretaker or “mother-in-law” situation in the home. The living area is where everyone gathers with the wood burning fireplace the focal point of the room. Another thing I really like is the location. The home is just a mile south of Breckenridge, an easy drive into town, yet you are away from the crowds. It’s also within walking distance to Goose Pasture Tarn, which is a fishing and boating lake restricted to area owners. A little father to the south is the Spruce Creek Trail to Mohawk Lakes, a fun day of hiking or if not into the 8 mile round trip hike, 4 wheel drive roads get you pretty close.

The town of Breckenridge is ideal for the family that likes to ski and shop, seems like that should fit about anyone. The town was founded in 1859 and has gone through several boom times, with placer and hard rock mining in the 1800’s and then dredging in the early 1900’s, now it’s the tourist boom. Breckenridge ski area has over 2000 skiable acres with 30 lifts. For the shopper a charming Main Street with shops of all kinds, among my favorites is Arts Alive, a co-op artist gallery (you can see my quilts there), Joy of Sox and Tea Time Quilting and Stitchery which as fabric and yarn. There are lots of restaurants to choose from too. Breckenridge is popular winter and summer. The other night I took a video of the lights on Main Street.
These stay up through the winter.

If you would like to know about property for sale in Breckenridge, you can search the Summit County MLS on my web site.

Last I had buyers close on a home outside of Breckenridge with a 30 year loan at 4 1/8 %, the lender said that was the lowest she had seen. The buyers were tickled because the monthly payment was easy to manage.
A couple weeks ago someone said “I didn’t think anyone was getting loans” I was surprised because from what I see loans are out there if the buyer has good credit, good ratio of income to debt, a good down payment and the property qualifies.

Speaking of good credit, there are some things you can do to keep your credit good.

Pay your bills on time. Even a late change on a small credit card can make a difference.

Don’t close credit cards you no longer use. Closing the account reduces your total credit line and a long credit history is a plus. If you don’t like the rate on the card, use it occasionally and pay off the balance each month.

Don’t open new accounts unless necessary. If you get too many credit inquiries that can affect your score.

Check your credit report at www.annualcreditreport.com, there are three credit reports listed, you are entitled on one each year, stagger them so you are checking one every four months. If you find inaccurate information have it corrected.

If you are in the midst of purchasing or refinancing a property, don’t make new purchases or run up your credit cards. Wait until after closing to buy that new living room furniture.

About once a month I do a market update of the different areas in Summit County.  Autumn is traditionally a busy time for properties to be sold.  This year the numbers are picking up a bit, but there is still a lot of choices out there.  Buyers are taking advantage of the great interest rates and in some cases motivated sellers.

Here’s the latest on Dillon

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

The lowest price for condos is usually in Dillon Valley East and West.  Currently there are 25 units on the market. The lowest price is a one bedroom unit for $98,900. I haven’t seen prices that low since 2006.  There’s a three bedroom two bath for $165,000.  In the town of Dillon near the lake, the lowest priced one bedroom is in the Yacht Club complex for $199,000, it has a great location right on the shore.  Prices go up to $899,000 for a four bedroom condo in the Anchorage complex, also right on Lake Dillon.  Right now there are 104 condos and townhomes on the market in the Dillon area, 9 are pending and 59 have sold in the last year.  I do have a list of the condos and townhomes in the Dillon area on my web site.  It won’t list prices but you will see a picture of the complex and other information. If you see something you like then you can search the MLS to see if anything if for sale in that complex – or just ask me.

Very few single family homes are for sale in the town of Dillon, but the surrounding neighborhoods of Dillon Valley, Summit Cove, Soda Creek and Whispering Pines have many options. There are 69 active listings of half duplexes and single family homes in the Dillon area. Of those the lowest price is $304,000 for a three bedroom half duplex in Dillon Valley. Eight homes are listed for a million or more. The most expensive is a fantastic home perched above Lake Dillon in Summerwood.  It has three bedrooms and 4 baths with 3440 square feet and the price is $1,985,000. Six homes are currently pending. Looking back over the last year, 50 single family homes and half duplexes have sold, the lowest price was $265,000, it was a half duplex in Dillon Valley and the most expensive sold for $ 2,591,000 a four bedroom home right on the shores of Lake Dillon.

You would have several choices in vacant lots in the Dillon area. Currently there are twenty-eight on the market. The prices start at $62,500 for a half duplex lot backing to wet lands in Dillon Valley to $340,000 for almost a third of an acre in Whispering Pines Ranch. Six lots have sold this past year with prices between $154,000 and $345,000. 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 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.

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

There are 86 condos and townhomes on the market. The lowest price for a condo is a two bedroom unit in the Littlehorn complex for $199,000. There are 46 units for sale under 400K. Prices go up to $1,190,000 for a completely remodeled Lagoon Townhome. Twenty-three condos and townhomes are pending and in the last year 81 have sold.  You can get information about Frisco condos on my web site.  You will find a picture of the complex, size and year built. No prices because they are always changing, ask me what’s available or search the MLS.

In single family homes and half duplexes forty-nine are for sale.  The lowest priced home is a small (540 square feet) one bedroom cabin in town that was built in 1954 for $299,900.  Otherwise the prices range from $469,000 to $1,995,000.  Currently 6 homes are under contract and in the last year 38 single family homes and half duplexes have sold with prices ranging from $350,000 for a 3 bedroom “fixer upper” to $1,900,000 for a four bedroom home built in 2008. The lowest price was a deed restricted two bedroom half duplex which sold for $199,481.

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

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

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

Keystone is where you will have good choices if you are looking for a resort condo. The River Run Village area at the base of the mountain is very popular. The units are all newer, built since 1996 and within an easy walk to the Gondola. One bedroom units start at $229,900, two bedrooms at $349,000. Not in River Run, but right at the Mountain House is Slopeside with studio units that start at $129,000 (could be worth it just for the garage parking space).  If you are looking for more for your money, the older complexes offer nice big floor plans and lower prices. In the Quicksilver complex there is a townhouse style two bedroom unit that is listed for $308,000. The numbers for all the condos and townhomes in Keystone are: 240 active, 20 pending and 144 sold in the last year.  On my web site I do have a list of the condos and townhomes in the Keystone area.  There won’t be prices because they are always changing, but you will see when the complex was built, how many units, and what amenities it has. If you see something that temps you – contact me or search the mls.

Keystone homes and half duplexes start at $269,000. for a two bedroom cabin in Loveland Pass Village (walk to the slopes) and go up to $3,960,000. Right now there are 51 homes listed for sale. Many of those homes are in Keystone Ranch backing to the golf course. In lasts 12 months sixteen homes have sold. Every week I put together a list of everything for sale in Keystone and Summit County, let me know and I can email it to you. You can also search the Summit County MLS from my web site.

The small mining town of Montezuma is east of Keystone about 10 miles. Homes and lots for sale appear in the Summit County MLS under the Keystone area. Right now there are two homes for sale; the lowest price is $359,900 for a 3 bedroom home.  There are several lots for sale; prices start at $134,500 for four acres just south of town and go up to $459,900.