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Tag: mountain real estate

When is prime selling season for mountain resorts?

149 El Mirador Bhhs
149 El Mirador | Referred to as “Cordillera’s Coziest Castle,” this 7 bed/9 bath French-style manor boasts 8,962 sq. ft. and is perched on a hill with 360 degree views . Located at 149 El Mirador in Edwards, the artfully landscaped grounds include a private courtyard with two fountains and inside, two grand stone fireplaces and commercial-quality kitchen. Newly listed for $4.9M.

Dear Leigh and Sue,

I hear about “spring selling season” this time of year but don’t understand why the spring is a more active time to sell. Can you explain this important season versus other times of the year?

—Spring Seller

Booth Creek Townhome Bhhs
Booth Creek Townhome #C1 | Located at 2875 Manns Ranch Road, #C1, in Vail, this 3 bed/3 bath, 1,575 sq ft townhome offers a prime location between East Vail and Vail Village with views of the Gore Range and walking access to Vail Mountain School, park, playground and pickleball courts. It sold for $1.39M on December 30, 2020.

Dear Spring Seller,

Historically, as far as spring goes, the main reason for a jump in business is that there is not as much snow and it’s easier to move around.

There are also generally less people in town and with ski season over, owners are more likely to list their home so they have time to relocate during more temperate weather conditions.

Spring also equates to fewer properties being occupied both by owners and renters so brokers have easier access to them for showings. More showings equals more offers.

For the resort/Vail markets, including Beaver Creek, Arrowhead and Cordillera, May is our “typical” mud season, which can be fruitful, as serious buyers start looking, hence it historically being a good month for business. There isn’t much else to do other than look at real estate! Spring can also be good for land sales since with less snow, buyers can actually see the land and walk on it.

“Down Valley,” including Eagle and Gypsum, tends to lead the spring market by a couple months and things are already beginning to pick-up with activity in the neighborhoods west of the resorts. By July 4th, these markets are already well into their selling season while Vail and Beaver Creek are really just getting started.

Investment property owners who are renting their home or residence may also be inclined to sell once ski season is over if a property’s rental income is lower than expected and/or the income from the sale of the home is needed.

A heightened market and potential impacts

In today’s heightened market and with some pending legislation that may affect after tax profits, this spring is a good time to sell, both to maximize profits as well as effect a 1031 tax deferred exchange.

While we don’t know when that change will or may come into effect, according to the National Association of Realtors, it is being seriously discussed.

Sellers should be prepared to talk with their tax accountant. If the 1031 Deferred Exchange is no longer allowed, this may cause less properties to come on the market and will definitely effect the selling and buying sides of real estate. So listing now while it’s still viable and the market is hot is highly recommended.

We do expect spring 2021 to be busier than the previous end of winter season because restrictions for social distancing and mask wearing are less threatening now. People have become more comfortable with the whole process. Whether it is busier than the end of winter seasons prior to 2020 is conjecture. There is nothing like the boom in the last four years.

Valley-wide we typically have viewed Fourth of July as the real kick off for selling season, when we really start seeing the majority of summer visitors. Spring is an ideal time for sellers to make any needed repairs to make their home as attractive and marketable as possible. August has historically been the Vail Valley’s busiest month as the weather, landscaping and all the ‘curb appeal’ features are well in place. This is an optimum time to sell property. And it’s also a great time to look!

No better time to sell

Sellers who have to sell or those who have their eye on another opportunity should sell now. We know the market is strong today and we don’t know what tomorrow will bring. Nothing is typical anymore.

With historic lows for listings, some buyers are willing to fly out at a moment’s notice, no matter the time of year. It is also not unusual for a buyer to submit an offer based on a FaceTime, video or Matterport showing. In the last two weeks, we have had two different buyers submit offers this way. One a single family in West Vail and most recently for a Manor Vail condo.

The Vail Valley is getting busier year-round and we see this trend continuing in 2021. Even into the fall, which typically sees a drop off, real estate sales were at an all-time high and we had to keep reminding ourselves it was indeed October and November. People want to be in the mountains more than ever, and if a homeowner is considering selling there is no better time than now.

Buyer trends and options

Buyers who thought they only wanted an updated, turn-key property in a specific area in the valley are now shifting gears and reconsidering the options.
Recent sales have included a property in Arrowhead to a family who originally only wanted to look in Beaver Creek. Same with Cordillera Valley Club.

Another buyer, who has been coming to Vail for 40 years, had never seen or heard of Cordillera. He’s not a golfer and didn’t think he and his wife would be interested.

As it turned out, the home was a perfect fit and he and his wife can’t imagine owning anywhere else in the valley. Another option and trend we’re seeing is in deeded fractional ownership.

This is a great option for buyers who may want to spend more time in the Vail Valley with a turn-key package or ones who may be waiting or wanting to see where the market goes.

Yes, spring can and is, in many ways, a kick off to the summer season and a great time to get your home ready to list it so you can take advantage of the momentum leading into the peak summer months.

—Leigh and Sue

Leigh and Sue Rychel are 50+ year Vail Valley residents and top producing Vail Valley broker associates dating back to the late 1970s. They recently joined Berkshire Hathaway HomeServices Colorado Properties to leverage their collective experience and expertise on behalf of their clients as a team and individually. For more information, contact Leigh at [email protected] or 970-376-4620 or Sue at [email protected].

Q1 real estate market trends report

Aspen Ridge Lane Summer Arrowhead Bhhs Copy
62 Aspen Ridge Lane, Arrowhead | This 5 bed/6 bath, 5,652 sq. ft. single family home, located at 62 Aspen Ridge Lane in Arrowhead, is situated on a half-acre private homesite surrounded by Aspen, Spruce and Juniper trees. Listed for $4.5M.

The positive real estate narrative for Eagle County that consumed the second half of 2020 continued through the first quarter of 2021 with Q1 sales up 53.88%. The increases also included average list price, up 15.49%, and average sales price up 17.18%. High demand in Eagle County remains the theme as new residents and local buyers throughout the valley continue to add pressure to inventory supplies.

While the second half of March 2020 was impacted by COVID uncertainty, the numbers don’t materially change the fact that 2021 saw continued momentum throughout the summer, fall and winter, including a surge of pending sales, closings and a heavy weight on inventory. Pending sales are up over 90% over Q1 2020, diminishing available inventory levels to half of what they were a year ago to end the quarter.

A slightly deeper dive into inventory shows where the demand and consequently the most affected areas are – the under $1M price point. At the end of this quarter, there were approximately 55 homes for sale – 17% of the available inventory.

The positive news is that as the weather warms, the market should see an increase in available homes in all price ranges and areas to help meet the strong demand. Buyers financing homes should feel optimistic about interest rates remaining at historically low levels, helping to meet the rise in prices we have seen over the last several years.

An additional Eagle County benefit is there are several different markets, ranging from the resort areas of Vail and Beaver Creek to the down valley communities of Eagle and Gypsum. Each one offers its own unique attributes and different price point options, tailored to the needs, lifestyle interests and budgets of buyers.

50 Peak View 410 Bachelor Gulch
50 Peak View, Bachelor Gulch | Boasting majestic mountain views, this ski-in, ski-out 2,603 sq. ft. 3 bed/4 bath Horizon Pass Lodge #410 condo, located at 50 Peak View in Bachelor Gulch, offers comfort and elegance with a large great room and large private deck. Recently sold for $3.3M.

Resort Market | Vail, Beaver Creek, Bachelor Gulch, Arrowhead, Cordillera

The resort market saw the largest sales increases, from 158% in Beaver Creek to 600% in Bachelor Gulch. Marla Hillerich, broker associate for Berkshire Hathaway HomeServices Colorado Properties’ Beaver Creek Villa Montane office, attributes much of the sales increase to greater demand from buyers in the $3M+ market, as well as existing homeowners making shifts in their residences. “We had a lot buyers emerge during the ski season this year,” said Hillerich. “Around Christmas there were 70 properties for sale in Beaver Creek and now there are 30. Inventory is not being replenished at the same rate it is being sold, though we hope to see more properties come on the market to fill buyer demand during the summer.”

In looking at who the buyers are and what’s motivating them to buy, Hillerich notes, “We have buyers both locally and from out-of-market that have fallen in love with the area. They decided the timing was right to buy and/or size up or down,” said Hillerich. “COVID has changed the way people do business and with the option to work virtually and be able to spend more time in the mountains, those on the fence decided this was the year to buy.”

Hillerich also notes that there is less competition among buyers in the $3M-$5M+ market. “There are a lot more buyers looking for properties under $2M or less, so the inventory typically moves faster,” said Hillerich.

303 Chickadee Lane Bhhs
303 Chickadee Lane, Gypsum | Located in the new Stratton Flats development in Gypsum at 303 Chickadee Lane, this 3 bed/3 bath 1,346 sq. ft. brand new townhome with a one-car garage sold for $353,000 on April 2, 2021.

Down Valley | Eagle, Eagle Ranch, Gypsum

Gypsum mirrored the resort market in triple digit increases for Q1, with sales up 178% over Q1 2020. Mary Gorski, broker associate for Berkshire Hathaway HomeServices Colorado Properties’ Eagle office, agrees with Hillerich that available inventory, as well as interest rates, are driving the three-digit increases.

“New construction in Gypsum, along with several vacant lots being sold that had previously been on the market for a year or more, contributed to the significant increase in Q1. We have buyers now deciding that building may be the way to go with the active market,” said Gorski. “Buyers are noticing the limited inventory, particularly in the sub $1M range and those that were thinking of purchasing within the next year are all starting to actively look.”

Advice for sellers

Hillerich and Gorski agree there is no better time to sell. With limited inventory, anticipated low interest rates that are expected to continue, now is the time to capitalize on market gains. That being said, buyers are still very savvy and while demand is high, understanding the value of a home and what the market will bear are important factors in pricing a home.

“It’s really important that sellers seek the advice of a knowledgeable broker to help them appropriately list and market their property and be ready to move quickly,” said Hillerich. “There are still a lot of cash offers out there and many buyers want close as soon as possible. Being able to negotiate contracts and offers is another valued added service experienced brokers can provide,” added Hillerich.

Advice for buyers

“Having pre-approvals in hand prior to looking at any available property is paramount,” said Gorski. “With most properties that are move in ready receiving multiple offers, it’s important to understand it may take a couple offers before finding that perfect home and going under contract.

Options to make offers the most attractive to sellers and increase the chances of getting the property, including increasing earnest money, adding an escalation clause or even possibly removing some of the contract contingency deadlines, improve chances of an offer being accepted,” Gorski added. “Again, this is where an experienced broker can lend assistance, answering these types of questions to guide buyers through the process.”

The landscape this year, compared to this time last year, paints a vastly different picture and there are no foreseeable signs that demand will slow. The market should open up to more homebuyers in the coming weeks and months as we head into summer.

Michael Slevin is the President of Berkshire Hathaway HomeServices Colorado Properties.

Ask A Realtor: Can you find success trying to sell to buy?

700 Imperial Drive Edwards Bhhs
Backing up to open space, this 3,049 sq. ft., 3 bed/4.5 bath end unit Homestead townhouse, located at 700 Imperial Drive in Edwards, includes large decks, vaulted ceilings, fully equipped Mother-in-Law suite, 2-car garage and community clubhouse. Newly listed for $829,000.

Dear Mark and Tiffany,

I am an Eagle County homeowner and interested in putting my home on the market but wondering where I can buy. I will need financing and anticipate a loan approval will be contingent on the sale of my home. This leaves me wondering if I should just wait it out and see where the market goes or if there are some options I have to sell and buy and still stay in the Vail Valley region.

Sincerely,
Sell to Buy

St James Bhhs Ext Sell To Buy
Located at 210 Offerson Road in St. James Place in the heart of Beaver Creek Village, this 1,266 sq. ft. 2 bed/2 bath condo offers the ultimate in turnkey lifestyle. The sale included a seller lease-back option to give the seller time to look for a new place to buy. The condo is under contract and listed at $1,150,000.

Dear Sell to Buy,

Your question is one of the most common ones we are receiving right now and applies to other resort or high demand markets that are experiencing similar inventory challenges. While there is limited inventory, new listings come on the market every day, which means you still have options for finding a new home. You just need to be ready when that time comes.

Our team is having great success working with people such as yourself, who are putting their home on the market subject to finding a new property. We have recently worked with two sellers, both of whom were able to list their home and find buyers willing to negotiate flexible move-out terms, providing them with some extra time to find a new home.

These scenarios include a seller in Beaver Creek who went under contract with a buyer who does not need to get into the condo until next winter. We were able to negotiate a lease-back agreement, giving the seller close to eight months to find a new place to live. The added benefit here is because the seller now has a contract, he is able to proceed with financing approval, allowing him to move on a new home offer quickly.

Another seller in Homestead was faced with a similar dilemma and we were able to structure a win-win contract for both parties by including a built-in extension clause on closing based on the seller’s ability to find a new home. Given that the typical closing, unless it’s a cash deal, takes 45-90 days, this gives the seller a built-in two to three months to look for a new home, which per the contract can be re-negotiated every 30 days as needed until the seller finds a home. While there are limits on how long the buyer may extend the closing and move-out date, it is one of the benefits of being in a high buyer demand situation. There is the added advantage of being in a primary resort area, where many buyers, particularly in Vail/Beaver Creek and Cordillera, have more flexibility on terms because it’s often not their primary residence.

While not every buyer is going to be willing or able to negotiate flexible terms, they do exist. For people, such as yourself, who need the equity from their home to buy a new one, it is prudent to look at other underwriting options to gain lender approval. These include bridge loans and/or leveraging retirement funds to close on a new property. This is where working with an experienced realtor can be a real asset as they bring the depth and scope of experience in contract negotiations as well as relationships in the broker community to find available properties to buy even before they come to market.

There are plenty of properties coming to market and we have yet to leave anyone without a replacement property. It’s more about the properties moving so quickly given the buyer demand.

Again, this is where your relationship with a knowledgeable and experienced broker can work to your advantage.

Banks will also typically pre-qualify financing for a home that is under contract. A home under contract gives the lender assurance that the unknowns, such as inspection and appraisal, have been addressed. In turn, you are in a position to now move forward with finding your next home and being able to make a timely offer.

This is a great time of year to list your home as the “selling season” gets underway, providing you with some added months to find a buyer and new home before the next ski season. This is also a time of year when many buyers have more flexibility to negotiate terms.

Good luck with your sale and search,
Mark & Tiffany

Mark and Tiffany Weinreich are 13-year Berkshire Hathaway HomeServices Colorado Properties broker associates with a combined 30 years’ experience selling Vail Valley real estate. The Weinreich Team specializes in luxury, resort-market residential real estate. Vail Valley residents for more than 28 years, the Weinreichs’ knowledge and expertise spans all of Eagle County, from East Vail to Gypsum. They are among the top performing broker teams in the Vail Valley, including earning the 2020 Chairman’s Circle Diamond Award for broker teams. Mark is also a 10-time Berkshire Hathaway HomeServices Colorado Properties Chairman Award and Legend Award winner, representing the top one percent of all Berkshire Hathaway HomeServices brokers nationwide. For more information, visit www.beavercreekmtnrealestate.com, email [email protected] or call 970-376-3204.

Ask A Realtor: When will the mountain market hit its peak?

1535 Aspenrdge Mls 02
Located at 1535 Aspen Ridge in Vail, this Adirondack-inspired 5,661 sq. ft. 5 bed/5.5 bath home offers Gore Range and ski slope views. It sold for $5.435M in October 2020.

Dear Tisa and Larry,

My family and I are considering selling our vacation property in the mountains. I know that inventory is limited and buyer demand is strong. Prices continue to rise and I want to maximize my return. When do you think the market will hit its peak so that I can sell “at the top”?

—Height of the Market Seller

206 N Brett Trail 01
This 2,605 sq. ft. 3 bed/3.5 bath waterfront home located at 206 N. Brett Trail in Edwards’ Southfork Meadows community sold for $939,000 in November 2020.

Dear Height of the Market Seller,

Your market timing question is one we are hearing more and more about as sellers seek to maximize their gains.

Like most things, timing to sell at the top of the market is very challenging. It’s like predicting the stock market. It really comes down to taking a close look at what you hope to achieve with the sale of your home and what will make it financially worthwhile for you to sell it. The other caveat is where you are going to live once you do sell. Are you planning to look for another home in the valley or elsewhere? The safest way to play this game is to sell once you have a new place to move into, if in fact, moving into a new home is part of your plan.

Another key factor to consider are your tax ramifications particularly if it is a vacation home. This is where speaking with a trusted financial advisor is important.

While the financial return is the most tangible part of a sale, it’s important to remember the value your original purchase brought to you and your family in the time you have owned your home. These memories have their own value and while we all want to sell at the height of a market, it’s important to make your next move when the timing is right for you. This also includes what you will be happy with when you decide to sell.

As for expectations on where the market is going for 2021, based on current buyer demand and limited supply, we anticipate the Vail Valley and Down Valley markets will continue to see price appreciation, a trend that is expected in other resort areas based on current activity. It is also widely anticipated that interest rates should remain low for the year, which will help home buyers and should keep our market activity strong.

But we have learned from the past that the market may and can correct quickly. The housing bubble and subsequent recession caused an expedited market response as did the events of 2020 getting to this upside. While steady market activity is preferred, we are at the whim of more macro-events that could potentially change the real estate landscape here in the valley and around the country.

Montaneros 301 Mls 01
Newly upgraded and within easy walking distance to the Lionshead Eagle Bahn Gondola, this 1,163 sq. ft. 2 bed/2 bath condo located at 684 W. Lionshead Circle, Unit 314 sold for 1.375M in October 2020.

Our advice to you is to sell your property when you and your family decide it is time. While many homes have reached an all-time high in value, it’s too difficult to determine if we’ve reached our peak for now or if we might start to see a dip or leveling off. The market is constantly changing – at times faster than at others. Values in October 2020 are not necessarily those of February 2021.

Reach out to your trusted advisor and local real estate broker and have them give you a current value for your property. If the value feels “right” then we encourage you to consider listing your home for sale. If you are hoping for a higher price for the property, waiting may be a good idea, but all markets change and finding the top is as challenging as determining the timing for the bottom. You may see other similar properties trade for more but then again, they might start trading for less. Do what is right for you and we suspect the outcome will be a positive one.

Good luck with your decision,

Tisa and Larry

Tisa Olsen and Larry Agneberg are 40+ year Vail Valley residents who also each bring more than 30 years’ real estate industry experience as award-winning broker associates for Berkshire Hathaway HomeServices Colorado Properties. Olsen’s honors include a 2020 Leading Edge Award for gross commission income and units sold as well as being a consistently top producer. Agneberg’s accolades include past-president of the Vail Board of Realtors, Vail Board of Realtors Realtor of the Year, and a perennial member of the Berkshire Hathaway HomeServices’ Chairman’s Diamond Circle, a coveted award bestowed upon the top one percent of all associate brokers. They can be reached at [email protected] or 970.471.1800 or [email protected] or 970.376.7100.

Are there any deals left in mountain resort real estate?

1330 Sandstone Drive 5 Bhhs Mark Weinreich Living Bar 1
1330 Sandstone Drive #5, Vail | Boasting mountain views with a desirable Sandstone location, this 2,182 sq. ft. 3 bed/4 bath remodeled residence includes a large second living/ media room, which could serve as an additional bedroom or office. Currently listed for $1.795M.

Dear Laurie and Mark,

I have had my eye on the Vail Valley region for a couple of years and am now in the position to look at buying a home, duplex or condo with the goal of living there more full time. Given the seller’s market and low inventory, wondering if there are still any deals out there and/or fixer uppers? Also curious about timing and if waiting until the spring or summer once we see what happens in the first two quarters is a good idea and might present some more opportunities?

—DIY Buyer

200 Eaglest Mls 03
200 Eagle Street, Gypsum | This home in the old section of Gypsum worked out well for the buyers who were looking for a fixer upper. The 2,204 sq. ft. 3 bed/2 bath home includes a large great room, sun room, upper level sitting room and family room. It sold for $428,500 in December 2020.

Dear DIY Buyer,

You are not alone in the market looking for a good deal and your question raises our own on what constitutes a good deal. While most people, ourselves included, often put “deal” in a lower price point category, there are many ways to look at a deal, including how it fits into your overall goals, location and lifestyle.

Some key elements to consider when looking at properties in the Vail Valley and Down Valley include:

Location – The closer you are to Vail or Beaver Creek, or any ski-in, ski-out type of residence, the higher the price point. Is resort proximity a top priority and if so, do you have the financial means to pay for a home in this market? The farther away you are from the core village areas of these resorts, the lower the price point.

Consider your priorities – Do you want to be close to the resort areas or is driving distance OK if you find a home that meets your needs?

Home type – Are you open to any type of single family home, condo/townhome or duplex, new, used or in need of some significant updates and do HOA dues play a factor into your decision?

Residency – Are you looking to make this your primary residence, second home and/or generate rental income?

Schools – Is the something to factor into location?

Commute – Are you able to work remotely or is drive time to/from the resort communities a factor?

Weather – Down Valley offers more seasonal temperatures where on the average, you get an extra month of warmer temps on either side of winter due to its lower elevation and more arid climate. Residents who live Down Valley boast about skiing in the morning and golfing in the afternoon in the spring.

The following market overviews for the Down Valley and Resort/Vail markets will help give you a better perspective of opportunities and price points. It may also serve as some “food for thought” if looking at other mountain resort areas as geographic location and proximity to the core mountain resort/village areas typically follow similar types of pricing and accessibility criteria.

801 Brushcreekterrace A Mls 01
801 #A Brush Creek Terrace, Eagle | Ideally suited for a family and close to schools, this 3 bed/2 bath, 1,542 sq. ft. home in Eagle is listed at $480,000 and is currently under contract.

Down Valley | Eagle, Eagle Ranch, Gypsum, Dotsero

Generally speaking, there are more price point and home design options Down Valley. As noted above, the further you get from Vail the lower the price, so you get more home for your money, including offering even greater ease of access to Eagle County Airport, in addition to the Vail Valley

and to the west, Glenwood Springs, Aspen, Grand Junction and Utah. If building a home is an option, there are considerably more land deals Down Valley. The Vail and resort market areas are, for the most part, built out. While there are some exceptions, the price point mirrors the location.

Resort/Luxury Market

The past year proved that the Vail/Resort market is very resilient, which is great news for buyers and homeowners seeking to get the most value out of their homes. On the flipside, this also means there really aren’t any distressed or fire sale homes on or coming to market in the foreseeable future. Yes, demand is strong and inventory is at historically low levels, but keep in mind homes continue to come to the market daily.

Your willingness to update a home will likely lead to a lower purchase price in a given market. If you can do much of the work on your own, your ROI will typically be significantly greater than buying a home that may have the finished features already in place. There may also be less competition for this type of home as the majority of buyers in the resort market prefer turnkey ready and are willing to pay for it.

As for seasonality, the inventory of homes for sale nationally typically grows in the spring for the summer selling season. The Vail Valley is no different. However, the trend over the past few years in the Vail Valley and Down Valley has been homes coming to market earlier. March/April are the new May/June. This said, COVID changed the market trends in 2020 with strong sales into the late fall. We are now seeing more homes coming to market in January and throughout the year.

Good, well priced homes can and will still come to the market at any time. Determining your goals and communicating these with your broker will allow you to find the right home that meets your location needs and budget. Your real estate professional should have a playbook for finding off market homes and homes before they hit the market. Word of advice, be ready to move quickly and set yourself up to be the best buyer, including having financing in place if not a cash deal.

Good luck in your search,

—Mark & Laurie

Mark Weinreich and Laurie Slaughter are longtime Vail Valley residents and award-winning veteran broker associates with locally owned Berkshire Hathaway HomeServices Colorado Properties. Both are members of highly respected broker teams, including The Slaughter Group, a leader in residential, commercial and development property sales and The Weinreich Team, specializing in resort-market residential real estate. Their knowledge and expertise spans from Vail Village to Gypsum and they are among the top performing brokers in the Vail Valley. Mark and Laurie can be reached at [email protected] or 970-376-3204 and [email protected] or 970-471-0108.

Listings down, prices up in mountain towns

Josh and Toni German from Denver had dreams for years of living full-time in a mountain town, but jobs kept them tied to the Front Range.

During the pandemic’s work-from-home requirements, the Germans took the step to relocate to a quiet neighborhood west of Steamboat Springs.

“We were working remotely because of COVID, and basically we decided we were going to make the leap and let our bosses know,” said Toni German, who works in brand management. “If they needed us to come back in, we agreed to be willing to visit the Front Range offices several times a month.”

Similar pandemic stories helped boost home sales in mountain towns this fall, particularly quick and competitive sales of single-family homes.

“The single-family home market is as tight as it gets,” said Steamboat Springs Realtor Ben Blonder.

Real estate experts say pandemic influences include pent-up demand from buyers, limited availability as potential sellers choose to remain in place, interest rates as low as 2.5% for a 30-year mortgage, and significant increases in location-neutral workers who have proven productive. The active summer buying season extended into fall after limited in-person showings in spring.

Colorado Association of Realtors spokesperson Kelly Moye said the single-family home market in the popular, smaller resort communities in Gunnison, La Plata, Routt, San Miguel and Summit counties showed an average 10% fewer listings in September 2020 compared with the previous September.

“With higher demand from buyers, these markets appreciated an average of 12% since this time last year,” Moye said.

Realtor Dana Cottrell in Summit County reported only 14 free-market single-family home listings priced at less than $1 million across the county in mid-September, a more than 50% drop from the previous year. Similarly, Steamboat Springs Board of Realtors CEO Ulrich Salzgeber reported five single-family homes in the greater Steamboat Springs area less than $1 million compared to dozens a year before. Salzgeber said single-family homes that might take four months to sell in past years now may go under contract within 48 hours.

“You have to pull out all the stops to get your offer accepted,” Blonder said, including offering more than asking price and being willing to purchase a property “as is.”

Realtor Jarrod Nixon in Durango said current transactions involve little negotiation on prices and repairs, except in cases of safety issues.

“I’ve never experienced a market like this. It just boggles the mind in the amount of activity and the buying frenzy,” said Nixon, a broker in Durango since 2003. He said the market is experiencing bottlenecks for timely services from appraisers, title companies and inspectors.

Buyers wanting to purchase this fall need to be prepared to maneuver faster to compete against other offers with their down payment on hand, no contingency of their own home to be sold and a fully pre-approved loan.

The tight single-family home inventory and price appreciation have put dreams to relocate on hold for some.

“The alternative is you rent and you wait, or you buy a townhome,” Blonder said. “But really the answer for most people is just wait.”

Ask a Realtor: how can I become a preferred buyer in this market?

10 Saddle Drive Alida Zwaan Bhhs
On the luxury side, a recent sale of a 4,006 sq. ft., 4 bed/3.5 bath Singletree home, located at 10 Saddle Drive, home sold for $1.775M.

Dear Mary and Alida, 

I am looking to relocate to the Vail Valley and find myself constantly on the back side of offers and opportunities.  It seems like every other buyer is one step ahead of me. Homes are either already under contract or with multiple offers by the time I find something I like. Any tips on how I can become a preferred buyer? 

Sincerely,
Frustrated Buyer

Dear Frustrated Buyer,

It can be absolutely heartbreaking when you’ve placed an offer on a new home, only to find out your offer was not accepted. The market in the Vail Valley, like many other resort areas throughout Colorado and nationwide, has definitely picked up over the last couple of months. Many people are realizing they can work remotely and the appeal of “mountain life,” with more open space, less traffic, cleaner air, and all the other lifestyle benefits, have prompted a greater than anticipated interest in the region. 

Below are some recommendations to assist you in staying informed about the real estate market in the Vail Valley and Down Valley as well as options to help improve getting your offer accepted, whether you’re looking to buy here or in another seller’s market. 

801 Brush Creek Mary Gorski
This single family, 1,542 sq. ft., 3 bed/2 bath duplex, located at 801 Brush Creek, recently sold for $460,000.

Work with an experienced broker

While the internet is a fabulous tool and can be a starting point for initial market research, nothing compares to the inside track a good broker brings to clients. This is especially true in a seller’s market, such as the one we are currently experiencing in resort areas throughout Colorado and pretty much nationwide.

A good way to qualify a broker is asking about their market watch tools and services and ability to find out about homes coming on to the market, which comes from living and working in the area in which you are looking to buy. In addition to their contacts, they should also offer to put you on a property market watch list for homes that come to market in your price range and also meet some of your other criteria, such as location, number of bedrooms, etc.   

Once you find a home you like, consider some additional incentives when you make an offer. These can help give greater weight and consideration to your offer over others: 

Increase earnest money

Sellers like to see that you have a little bit of skin in the game. Once a seller has accepted an offer, they traditionally lose other potential buyers and/or offers, leaving the seller at risk if something should happen with your offer. Remember the earnest money is part of your down payment, also known as your cash at closing. Offering more money prior to the day of closing helps demonstrate to the seller you are serious about the home. 

Add some flexibility to move-in dates and deadlines

If you can, give sellers some flexibility on moving out. This can “sweeten the pot” and have them give higher consideration to your offer over another one. Again, a broker can help find out a seller’s interests and priorities. Finding out what their priorities and motivators are can be a key element in crafting your offer.  If they are moving into a new home having some wiggle room can mean a lot based on their needs and timing.

Selling, closing and buying in one day or even a couple of days can be really stressful.  If you can, consider offering for them to stay in the home for two to three days after closing. If they want to move out sooner, talk with your lender and broker to see if they think it’s possible, but be willing to pay for a rushed appraisal. 

Avoid a bidding war

Write your best offer the first time. Avoid trying to negotiate to see what they “might” come back with. Make your offer say, “I want this house.” Instead of splitting the transfer tax (if applicable), offer to pay the tax as well as possibly the closing cost and/or the title insurance.

Another option, and one that a good broker should be able to make a solid recommendation, is to look at current market value, neighborhood and general appreciation for homes in the area, and consider an offer a little above asking price.   

Hopefully, some of these ideas will help secure your next new home. Most importantly, write a solid offer and one that makes sense to you and helps you get the home you desire. 

Good luck,
Mary & Alida

Mary Gorski and Alida Zwaan are longtime Vail residents and award-winning broker associates with Berkshire Hathaway HomeServices Colorado Properties, a locally owned real estate firm with eight offices spanning from Vail to Gypsum.  Their expertise ranges from mid-priced range homes Down Valley (Mary), to Vail’s luxury market (Alida).  Honors include a 2019 Presidential Circle Award for Mary and 20 years as a Legend Award recipient for Alida, placing her in the top two percent of Berkshire Hathaway HomeServices realtors nationally. They can be reached at [email protected] or 970-331-9619 and [email protected] or 970-471-0291.

Ask A Realtor: Is fractional ownership for you?

Dear Janet and Tisa,

My wife and I are looking at options for buying or investing in some mountain real estate where we can spend portions of the year.  We’re not ready to relocate (yet) and would like the flexibility of owning something in the Vail/Beaver Creek area while still being able to afford to travel.   Some friends suggested we look at fractional ownership. We are wondering what the pros and cons are for fractional ownership versus buying a home and renting it out, as well as options in and around the Vail Valley.

Thank you,

Vacation Real Estate Buyer

Dear Vacation Real Estate Buyer,

Your question is very timely.  Even before COVID-19, interest in fractional ownership has continued to rise as people, such as your wife and you, explore vacation home options.

Given your interest in also wanting to travel outside the Vail Valley, fractional ownership provides the added benefits of being able to trade your week(s) at premier properties around the world.  The trend among hotels at most major resort areas, including those in the Vail Valley, is to market and sell a portion of their rooms as fractional units. This gives buyers premium properties and locations from which you can choose from for other vacations.

For example, highlights of fractional ownership properties in the Vail Valley include The Timbers, Ritz-Carlton Vail, Sebastian, St. James Place, Villa-Montane, Four Seasons, Park Hyatt and Westin.  Owners can then elect to use their vacation week(s) or exchange on a vacation exchange network, such as Interval International, which is owned by Marriott Corp.   This provides you with the opportunity get into some incredible oceanfront, golf or premier properties at a fraction of the cost of what you would pay as a regular guest.

What it costs

Entry level costs for a fractional unit in the Vail Valley range from $7,000-$15,000 for a one- to two- bedroom condo, depending on the week share and unit location. When you consider the cost of  renting  a premier location condo in Vail or Beaver Creek, buying a fractional makes this a cost-effective way for people, such as yourself,  to enjoy and experience the Vail Valley, as well as other luxury resort properties around the world.

Weighing fractional ownership vs. a rental property

To determine whether fractional ownership is right for you, we have a few key questions your wife and you should consider.  These include:

  • How much time do you want or expect to spend in the Vail Valley?
  • Outside of COVID travel restrictions, what other destinations are on your travel list?
  • Do you prefer having your own personal furnishings or do you like the flexibility of having this taken care of for you?
  • Do you need or are you interested more in having a real estate investment or more flexible vacation options?
  • What kind of properties do you like or wish to stay at and what would you spend on an average trip?

It’s important to note that buying a fractional is more about a vacation lifestyle investment than longer term financial return. It is ideal for people who want to stay at a higher-end resort property at fraction of the cost, factoring in the retail rental price versus the fractional price to own a deeded share.

That being said, if you’re looking to spend more time, such as a several weeks to a few months a year in the Vail Valley, then buying a home or condo and putting it in a rental program might make more sense.  The latter option is also more conducive if financial gain is also a higher priority.

Best wishes in your search.

Janet & Tisa