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Tag: vail valley real estate

Home Real Estate: Why it’s Still a Good Time to Buy

It’s no secret that inventory levels across the country are, for the most part, at all-time lows and multiple offers on homes commonplace. As a result, one of the most frequently asked questions among buyers is, “should we just wait?”

Waiting, in almost all instances, only creates frustration for buyers in the long run.

In our more than 70 years’ collective experience working with buyers and sellers in the Vail Valley and Eagle County, and watching trends across the country, waiting has not been the optimum way to go.

Yes, Vail and Eagle County — and other resort and popular destinations — have low inventory, yet buyers are finding and purchasing properties with the help of experienced brokers who know where and how to look, and have established relationships with other brokers.

Home ownership in today’s market still outweighs that of renting and not owning at all, even in a competitive market. The pride of ownership, financial benefits of owning versus renting, favorable interest rates, tax benefits, and the ability to live in a mountain or other resort community, continue to be reasons enough to “keep your name in the hat” in becoming a homeowner.

It could be argued that, while the process of purchasing a home has changed in the last year-plus, the benefit of today’s market has been felt by both buyers and sellers and has created more of a sense balance than what the headlines portend.

The question buyers need to ask themselves is, “How long am I willing to wait to enjoy having a place to live in, use, and enjoy?”

Waiting, in almost all instances, only creates frustration for buyers in the long run — as the realization of missed opportunities occurs, increased values take place, and discovering they will still end up competing with all the other “let’s wait and see” buyers for that one property they have waited on in an effort “to see what happens.”

There is only so much supply in the resorts and in Eagle County, and the general consensus is these destinations will continue to experience an active market for quite some time.

The question about “When is the right time to buy?” really comes down to “When you are ready.”

Yes, there are challenges when entering the market for first time, whether it’s the resort/luxury market, or more moderately priced areas. Yet, the increased values, gains, and the enjoyment and pride of new ownership witnessed over the past couple of years has far outweighed the frustration and challenges buyers have experienced.

The question buyers need to ask themselves is, “How long am I willing to wait to enjoy having a place to live in, use, and enjoy,” whether it is for you and/or your family.

Yes, you might have to step up, settle for something less than perfect, not as desirable as you had hoped for and/or lower your expectations. It costs you nothing to speak with an experienced broker who has the longevity and has experienced the ebbs and flows of this market. You can then, make the decision if you should ‘through your hat in the ring.’

Jennie Longville May and Craig Denton, award-winning broker associates with Berkshire Hathaway HomeServices Colorado Properties, work through some of the common questions homebuyers ask, in Colorado at large, and across Vail Valley and Eagle County.
889 Granite Springs Trail, Edwards: Located at 889 Granite Springs Trail in Cordillera, this custom, 5 bed/8 bath, 11,059 sq. ft. single family home mixes traditional style with Tuscan flare, including heavy trim work, textured wood beams, natural stone, top of the line detailed finishes, vaulted ceilings, wine cellar, expansive kitchen for entertaining and hearth room. Listed by Kevin Denton with Berkshire Hathaway HomeServices Colorado Properties and Denton Advisory Group for $10M.
Jennie Longville May and Craig Denton, award-winning broker associates with Berkshire Hathaway HomeServices Colorado Properties, work through some of the common questions homebuyers ask, in Colorado at large, and across Vail Valley and Eagle County.
2610 Beartrap A, Avon: Offering panoramic views Bachelor Gulch and Beaver Creek and back to Vail, this remodeled 4 bed/ 5 bath, 3590 sq. ft. duplex features new wood flooring, carpet, refurbished wood trim, paint, entry way tile, updated lighting and window coverings, and new home office. Located at 2610 Beartrap A in Avon, the home sold for $2.05M in December 2021 by Berkshire Hathaway HomeServices Colorado Properties’ and Denton Advisory Group Managing Broker Craig Denton.
Jennie Longville May and Craig Denton, award-winning broker associates with Berkshire Hathaway HomeServices Colorado Properties, work through some of the common questions homebuyers ask, in Colorado at large, and across Vail Valley and Eagle County.
1476 Westhaven Drive, Coldstream Condo Unit 4, Vail: Nestled along Gore Creek and steps to the Grand Hyatt Hotel & Spa, this fully furnished, 1 bed/1 bath, 746 sq. ft. Coldstream condo unit 4 at 1476 Westhaven Drive in Vail offers a rare opportunity to own in Cascade Village and offers all of the conveniences of being within walking distance to the ski slopes. Features include private patios off of the master bedroom and living room, fireplace, and onsite hot tub and pool. Currently listed for $1.35M by Jennie Longville May with Berkshire Hathaway HomeServices Colorado Properties.
Jennie Longville May and Craig Denton, award-winning broker associates with Berkshire Hathaway HomeServices Colorado Properties, work through some of the common questions homebuyers ask, in Colorado at large, and across Vail Valley and Eagle County.
203 Osprey Lane, Gypsum: This brightly lit, site-built, new construction 3 bed/2.5 bath, 1,480 sq. ft. townhome in Stratton Flats in Gypsum includes a 2-car attached garage, vaulted ceilings, LVT flooring, quartz countertops, kitchen pantry, laundry room, and stainless-steel appliances. Sold for $475K by Berkshire Hathaway HomeServices Colorado Properties’ Broker Associates Jennie Longville May and Rick Messmer of the Messmer Group in February 2022. Stratton Flats Development was an affordable housing project consisting of 40 townhomes and 15 single family homes that sold out pre-construction.
(Photos and descriptions, courtesy of: Berkshire Hathaway HomeServices Colorado Properties.)
Berkshire Authors

Jennie Longville May and Craig Denton are award-winning broker associates with Berkshire Hathaway HomeServices Colorado Properties in the company’s Edwards and Vail offices respectively. Both are members of the coveted Chairman’s Circle several years running, bestowed upon the top .5% of all Berkshire Hathaway HomeServices brokers nationwide. Denton’s five-year streak also earned him a coveted Legends award. They can be reached at [email protected] or 970-390-6617 or [email protected] or 970-376-0087.

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.

Vail Valley real estate experiences heightened interest amidst uncertainty

Clearly, the first half of 2020 has brought noticeable market shifts in real estate, both in the Vail Valley as well as worldwide. While every market experienced a pause due to the onset of the COVID-19 pandemic, what has been unexpected is the amount of activity and price point increases throughout the Vail Valley since restrictions were eased.

For June alone, new listings were up 9.06% from last year. Both median sales and list prices are also up, 12.22% and 13.64%, respectively. While closings were down significantly, as expected, current inventory and buyer interest indicate much of that will be made up in the next two quarters. Average days on the market have gone from 217 in June 2019 to 81 days in 2020, which corroborates the heightened interest and activity levels noted above.

The biggest issue that remains, dating back to last year, is lack of inventory, though recent rebounds in listings coming to market are helping to close that gap and are expected to continue throughout the rest of the year. Buyer activity is the highest the valley has seen since before the recession and there is tangible evidence that buyers are seeking out the valley as a place where they can continue their work remotely and enjoy all the area has to offer.

Another important point is that Vail Valley is really comprised of several markets, each with its own special nuances, opportunities and challenges. To get a better sense of what these trends mean for buyers and sellers, Berkshire Hathaway HomeServices Colorado Properties’ associate brokers, Larry Agneberg (Vail/Resort Market) and Thalia Leiva (Down Valley/Eagle to Gypsum) provide additional insights.

Vail Valley: Resort Market

What it means for buyers

According to Agneberg, a 37-year Vail Valley real estate veteran, more properties continue to come to market daily but like the entire valley, can get snapped up quickly. Buyers should be knowledgeable about the current inventory and have a good feel for values. When the right property appears, be ready to look at the property quickly and make an offer. If planning to finance, being ready also means having pre-approvals in place and understanding the lender’s parameters. A key insider tip is a local broker can help set listing alerts for properties that fit each buyer’s parameters. With interest rates at historic lows, it’s a great time to buy.

What it means for sellers

Given current buyer demand, there is some wiggle room to price homes slightly above market value. That being said, the pricing needs to be based on realistic comps that factor in location, views and condition. Ultimately, the buyers will stipulate what the home is worth. If, after several showings, there are no offers, a price adjustment may be in order. It is a great time to sell as buyer interest continues to grow. However, there are still instances of homes being on the market for a year, or longer, so working with a local broker who can help you navigate pricing and market value can help mitigate potential momentum losses.

Down Valley: Eagle to Gypsum

What it means for buyers

A Down Valley market specialist, Leiva states that with interest rates being the lowest they have been in almost 50 years, buyers are now able to afford more than they would have previously. Obtaining pre-approvals on a loan can give a buyer a realistic price range of homes from which to choose. The market is moving incredibly fast and homes are being sold in the matter of days. It is important to work with a local agent who can guide you through this process and notify you of any new listings, often before they even hit the MLS.

What it means for sellers

Be prepared. A lot of time and dedication comes with the sale of a home, and local brokers can be a valuable asset as they are market and buyer savvy. There is a lot of demand and not enough supply, which is often resulting in more than one offer being placed on the same property. While multiple offers sounds great, each offer can come with its own stipulations so be sure you fully understand the parameters for each offer. The current inventory shortage, coupled with heightened buyer activity and historically low interest rates, makes this an ideal time for sellers to list their home.

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