3 Things to Know Before Buying a Vacation Home
Do you want to be able to walk to the lake from your home?
Would you like to be near golf courses or ski resorts?
Do you want to go out for some nightlife, dining, shopping, or entertainment?
Are there any grocery stores?
Are medical facilities available?
Is the community friendly?
Is the area safe and secured from any form of threats?
The Pros and Cons of a Vacation Home
It’s an investment, and like your principal residence, it’ll probably appreciate in value (especially if you settle near popular areas like a beach or mountains).
This property will allow you to save money on a place to stay and stay for longer than you would in a holiday rental, enhancing your own vacation experience. It will also provide you with a location to invite loved ones for some R&R!
Make money by renting out this property during the months you aren’t there or even to other vacationers.
If you plan to buy a vacation home in Colorado, get help from a local commercial real estate expert to give you the best properties to choose from.
Cons of purchasing a vacation home:
Vacation homes are not cheap! You’ll have to pay a new mortgage, as well as property taxes, insurance, and utilities. These fees may imply less money saved for other goals, such as a college fund or retirement.
When you’re not there, you must consider the maintenance and security requirements. Even with today’s technology, you can watch your property from afar, but what will you do in the event of an emergency if your vacation house is far distant from your regular residence?
Will you become bored with the scenery? This is why it’s critical to avoid making an emotional judgment when buying a vacation home. Do you think you’ll be wishing for a change of scenery in a few years? Will you refrain from taking vacations somewhere else?
Can Solar Panels Increase the Value of Your Property?
Your location will have a significant impact on your solar potential. It will also influence how much a solar addition is valued by buyers, with some places experiencing higher-than-average resale values as a result of solar energy and others seeing lower-than-average.
Larger solar systems generate more energy and are therefore more valued.
When calculating your potential return, consider the average cost of solar installation in your area. It also affects resale value, as some purchasers may determine that purchasing a property that is already set up for solar is more valuable than paying for installation on a home that isn’t.
What You Need To Do Before Putting Your Property Up For Sale
In the age of the internet, we have to be more connected to sell a property to that right Buyer. Being top in your field of online engagement with potential Buyers has become easier to get your property out there and receive higher offers from customers.
People can list properties on a number of websites, they can also use email or social media sites. When listing a property on these platforms, they need to be able to provide all the pertinent information about the home so that potential buyers know what they are getting into. This includes pictures or videos of different rooms, amenities offered in the area and information about local schools and activities in the area where they live.
So let’s go over what you need to do when it comes to preparing an effective real estate listing:
Where is this property?
As the property market is becoming more and more competitive, there are many property listing websites that users can choose from. It is important for these websites to provide the most accurate and up-to-date listings as possible.
The main issue with these websites is that they often mix up properties by location. This is a result of using keyword search engines to find properties, where one can use any keywords and not specific property details to search for listings.Your listed property should include details about the property, such as the price, location, and availability.
When to sell your property?
Timing is key in real estate. You have to be strategic when you want to sell your property. You need to take into account various factors such as the time of the year, location, and your personal needs.
There are certain best times of the year to list your home for sale if you want to maximize its value and attract a lot of buyers. The spring and summer months tend to be peak seasons for home sales, but it also depends on the location and what you need from a property in order for it to work well for you.
The time it takes for a home to sell is largely dependent on the preparation done by the seller. Before listing their property, sellers should ensure that their home is in the best condition possible and that its price is competitive. Sellers should also set a timeline and budget for their sale and be prepared to pay all of the expenses that come with it.
Set a realistic price
Pricing is a complicated subject. Property listings and properties themselves vary in quality and location. Setting a realistic price is vital for maximizing your sales and attracting the right clients.
The most important thing to remember when setting a realistic price is that it depends on the property listing, not just on the property itself. A realistic price for your property will depend on the location, neighborhood, amenities, and the condition of your home.
A realistic price will help you get potential buyers. A low listing price might lead people to believe that your home is not worth much, or that it needs many repairs, or that there are other issues with the home.
Research comparable properties in your area and adjust your listing price accordingly.
Hire an agent who knows the market
Listing a property is not always an easy task. You have to do the research, gather data, and take photos. But with all these digital advancements, it has become much easier to list your property online and get the best deal possible.
However, it is important to know what you are looking for in an agency before you start looking for an agent. They may specialize in a certain region of property such as rural property or apartments. Or they may specialize in a specific type of property such as commercial property or residential properties.
Hiring an agent who knows the market will increase your chances of getting your place sold quickly and at a higher price than if you were to sell without their help.
That is why if you’re planning to sell, we got you covered!
Westward Advisors will take care of preparing your listings, taking photos for you, and marketing the listing so that you can focus on moving ahead with your life. We are you Local Real Estate Team with a Global Reach that specializes in both residential and commercial properties.
About Westward Advisors
Westward Advisors has accumulated over $400 million worth of real estate in the 15 years it served in Chaffee, Lake, Summit, Park, Clear Creek and Jefferson counties. We are experts when it comes to the understanding of critical deal points such as resort property management, HOA documents, Land conservation easements, water and mineral rights, specific state water access laws and FBO access, and zoning.
Westward Advisors has closed more than 500 property deals and raised over $500 million in monetary capital for investors in the last decade all while building inspiring community support. We devote ourselves to connecting our clients to the best mountain resources we can provide. Our network is focused on Resort, Ranch, Estate, Land, Investment, Public Ownership Projects and Land Preservation/easements.
Why Work with Westward Advisors to Sell your current property?
Professional Presentation: Our marketing is crisp and sophisticated. We believe that visually telling each mountain story engages the user and attracts buyers to your property. While there is no replacement for actually being in the mountains and seeing the ranch, our marketing program will bring them as close to that as possible.
Efficiency: We streamline the marketing and sales process to minimize your own time and effort.
Information from One Source:We provide the key pieces of information such as sales data, valuation analysis, title review and resolution if necessary, market trends, tips for better property showings, etc.
Network: From our complete network of Global Agents and area real estate agents to our database of over 120,000 high net worth individuals, we build a personal network for you.
3 Reasons WE ARE NOT in a Housing Bubble
Home values appreciate on average by over 15% percent in 2021 and are forecast to continue rising this year. Voicing concerns that we may be in another housing bubble like the one we experienced over a decade ago. Here are 3 reasons why that’s not the case and the market is completely different today…
1. This time, housing supply is extremely limited…
The price of any item is determined by supply and demand. If supply is high and demand is low, prices normally decrease. If supply is low and demand is high, prices naturally increase.
In real estate, this balance is measured in month’s supply of inventory, which is based on the number of current homes for sale compared to the number of buyers in the market. The normal months’ supply of inventory for the market is about six months. Anything above that defines a buyer’s market, indicating prices will soften. Anything below that means it’s a sellers market in which prices normally appreciate.
Between 2006 and 2008, the month’s supply of inventory increased from just over 5 months to 11 months. The month’s supply was over seven months in 27 of those 36 months, yet home values continued to rise. Month’s inventory currently stands at 2.4 months – near historic lows. Remember, of supply is low and demand is high, prices naturally increase.
2. This time, housing demand is real.
During the housing boom in the mid-2000s, there was what Robert Schiller, a fellow at the Yale School of Management’s International Center of Finance, called irrational exuberance.
The definition of the term is, “unfounded market optimism that lacks a real foundation of fundamental valuation, but instead rests on psychological factors.” Without considering historical market trends, people got caught up in the frenzy and bought houses based on an unrealistic belief that housing values would continue to escalate.
The mortgage industry fed into this craziness by making mortgage money available to just about anyone, as shown in the Mortgage Credit Availability Index (MCAI) published by the Mortgage Bankers Association. The higher the index, the easier it is to get a mortgage; the lower the index, the more difficult it is to obtain one.
Prior to the housing boom, the index stood just below 400. In 2006, the index hit an all-time high over 868, meaning nearly everyone could qualify for a mortgage. Today, the index stands at 128.1, which is well below even the pre-boom level.
In the current real estate market, demand is real, not fabricated. Millennial, the largest generation in the country, have come of age to marry and have children, which are two major drivers for home ownership. The health crisis also challenged every household to redefine the meaning of home and re-evaluate whether their current home met that new definition.
This desire to win, coupled with historically low mortgage rates, makes purchasing a home today a strong, sound financial decision. Therefore, today’s demand is very real. Remember, if supply is low and demand is high, prices naturally increase.
3. This time, households have plenty of equity.
Again, during the housing boom, it wasn’t just purchasers who got caught up in the frenzy. Existing homeowners started using their homes like ATMs. There was a wave of cash-out refinances, which enabled homeowners to leverage the equity in their homes.
From 2005 through 2007, Americans pulled out $824 billion in equity. That left many homeowners with little or no equity in their homes at a critical time. As prices began to drop, some homeowners found themselves in a negative equity situation where their mortgage was higher than the value of their home. Many defaulted on their payments, which led to an avalanche of foreclosures.
Today, the banks and the American people have shown they learned a valuable lesson from the housing crisis. Cash-out refinance volume over the last three years was less than a third of what it was compared to the 3 years leading up to the crash.
This approach has created a level of equity never seen before. According to the U.S. Census Bureau, over 38% of owner-occupied housing units are owned ‘free and clear’ (without any mortgage). In addition, the ATTOM Data Solutions first quarter 2021 U.S Home Equity Report reveals:
“17.8 million residential properties in the United States were considered equity-rich, meaning that the combined amount of loans secured by those properties was 50% or less of their estimated market value… The count of equity-rich properties in the first quarter of 2021 represented 31.9%, or about one in three, of the 55.8 million mortgage homes in the United States.
If we combine the 38% of homes that are owned free and clear with the 19.8% of all homes that have at least 50% equity (31.9% if the remaining 62% with a mortgage), we see that 57.8% of all homes in this country have a minimum of 50% equity. That’s significantly better than the equity situation in 2008.
This time, housing supply is drastically lower. Demand is real and rightly motivated. Even if prices were to drop, homeowners have enough equity to be able to weather a dip in home values. This is nothing like 2008. In fact, it’s the exact opposite.
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Want to more about home values before selling or buying a property? Call Lindsey Stapay at 970-435-5700 to arrange a consultation. While we’re at it, Lindsey will provide a private showing of all the properties for sale at the Summit County, Colorado just for you.