Statistically Summit County is in another appreciating cycle. After the market peaked around 2007-2008, Summit County home prices dipped as far as 25-35% in some cases. We are currently in the early stages of a new appreciating cycle with some segments stronger than others. Specifically lower priced properties are rebounding the fastest, which is at least partially due to lack of inventory in the lower price ranges.
A high percentage of Summit County buyers are second home or investment/rental buyers. For lending purposes these buyers will benefit by having 20-25% down payment on properties they are targeting. This amount of down payment combined with verifiable employment and a strong credit score allow buyers to get the lowest available interest rates.
FSBO is an acronym meaning for sale by owner. Per our Mission Statement Buyer’s Resource exhausts the entire market to find the properties that best meet our client’s needs. Listed properties are only a part of the entire market, and our goal is to give our clients entire market exposure.
Summit County, being a resort/second home market, tends to see properties sit a little longer than properties in more traditional markets like the Denver/Boulder area. If a property is well priced, however, it won’t sit around long. The average days on the market in 2014 for residential real estate in Summit County was 140 days.
A comp is a shorter term for what people in the real estate industry call a comparable sale. Buyer’s Resource uses comparable sales as just one way to evaluate the value of a property our clients are considering, in order to help them come up with an offer strategy that will get the best possible price and terms.
The latest MLS technology allows Buyer’s Resource to keep clients apprised of new opportunities almost simultaneous with the time the listing becomes active. A prospective buyer can get set up with us so that when new properties, within their parameters, hits the market they will be notified immediately via e-mail.
After the buyer makes an initial offer, the seller has a period of time to review the offer and decide whether or not to accept the offer, or make a counteroffer that changes some of the terms, usually to the seller’s favor.
After a property is under contract, and if a loan is involved, the buyer’s lender will want to verify that the asset they are loaning on is worth the amount they are loaning. The lender’s underwriter has a list of approved appraisers who will visit the property and do a formal evaluation of the property called an appraisal, for the benefit of the buyer and the buyer’s lender. A cash paying buyer also has the right to have an appraisal done per the Colorado Real Estate Commission approved contract to purchase real estate.
Buyer’s Resource recommends that buyers obtaining a loan to purchase real estate get pre-qualified with a lender of their choice, and preferably with a local lender that understands the ins and outs of resort mountain lending. The lender will do an informal interview to establish income and other factors pertinent to obtaining financing. Being pre-qualified improves a buyer’s negotiating position when it comes to making an offer on a desirable property.
For a real estate buyer, the ultimate goal should be to go past pre-qualification by a lender, and get pre-approved for financing. Pre-approval happens after the buyer provides the required documentation and lender makes formal verification of buyer’s ability to obtain the loan. Getting pre-approved separates the buyer from the pack and puts the buyer in the most favorable position to negotiate with a seller. Getting pre-approved effectively makes a buyer obtaining a loan the same as a cash buyer.