Cam Boyd Blog

We all know it; Steamboat has officially entered the season of Fall. Our evenings are becoming crisp and cold, and it is getting much easier to stay in bed in the morning as the sun is rising later and later. In just a little over a month, we will be entering Winter, a season that Steamboat is known and loved for. What does that mean for our homes? It means a little TLC is needed before the cold sets in!

The average claim for water freezing and damaging a home is a little over $5,000. Taking a little time to prepare your home for snow, cold, and winter conditions in general can be a huge money-saver later on. Your plumbing, electrical, and security systems are three of the hardest hit areas when the cold sets in.

Plumbing: If your Steamboat home is a summer-only vacation home, be sure to shut off the water for extended periods of absence. Leave the faucets open so excess water can drain, and drain the toilets as well. You can put a small amount of non-toxic marine antifreeze into toilet bowls and drains to prevent frost  breaks. This will greatly reduce the risk  of pipes freezing and breaking. If you live in your home full time or plan to vacation in Steamboat in the winter, be sure you keep the heat on at least to 50 degrees to be sure your pipes are taken care of.

Electrical System: This is the scariest system to leave behind; while you are away, fires can develop in electrical circuits from appliances, even if they are not turned on. We usually take electricity for granted, but don't forget about it if you don't live in your home full time.  Turn off circuit breakers for any non-essentials (anything other than heat, security, and outdoor lighting) and unplug appliances as well.

Security System: Not everyone in Steamboat has a security system (some have a barking dog...), but if you do, you can have 'add-on's' to your system such as freeze alarms and leak alarms to notify you if the cold does harm something in your home. In fact, you can even get heat and moisture detectors to notify you if something as wrong inside the home. Security isn't just about keeping your home safe from the outside; if you don't live in it full time, problems can come from the inside too.

Remember, investing in your home before there is a problem could save you hundreds of thousands in the long run. Just as your car needs maintenance, so does your home, don't leave it uncared for!

Send us your Questions!

Q: 

 What are the first steps I should go through to buying a home? Do I find a home first and through contacting the realtor do I figure out the mortgage and payments? Do I go to a bank and get a loan first? I have been renting for the past 10 years, I lead a simple life and my credit is ok. I've never had a loan for anything and I never owned a credit card. I know that makes it tough to gain credit without more than paying utilities/car payments etc. I noticed most homes ask for a certain percentage down, does that come out of the mortgage/loan, or would I need to have that from my own pocket? It's hard to make that jump from paying rent to saving 10's of thousands of dollars. I've heard of pre-qualifying, but I'm not sure where I go to for that either[as in a bank a mortgage company, etc.] I'm sorry for so many questions and examples, but like I said I am absolutely clueless.

A: 

Great questions. You can either contact a local Realtor and establish a relationship with them first – ask for referrals from people you know and trust, or search for one in your area on the internet and see who has good testimonials on their website. You can usually tell a little about their personality from their website. Don’t be shy about emailing or calling. Realtors love to talk to new potential clients, as well as past clients! The other option is to contact a lender first. In your case, since you don’t have much credit, you might be better to get in touch with a lender first so they can help you determine how much loan (house payment) you qualify for. Be prepared to give copies of bank statements, your past 2 years of tax returns, etc. so your lender can determine how much debt you have and how much income you make each year, etc. (your debt to income ratio). Once you have gone through these nitty gritty details, your lender will determine how much house you can afford. (This is what we mean when we say you are “pre-qualified” to purchase a home for $X amount.”) You don’t want to go looking at houses in the $250,000 range when you can only afford $150,000. The lender will also be able to tell you right away if you need to improve your credit score. A lack of credit will impact your score, so a good lender will pull your credit report and tell you how to improve it. While you’re improving your credit score and once you know how much you can afford (now or in the near future) you can start looking at houses online. Contact a Realtor as soon as you feel ready, and they’ll answer all your questions about homes in your area, making offers, earnest money, getting inspections, etc. As far as the down payment, you might be able to finance the entire purchase, but you have to have good credit to qualify for the right loans. Usually you need at least 3.5% down payment for the loan (for example, 3.5% of $100,000 is $3,500) up front, but everything really depends on the type of loan you get and the standard of practice for the area you live in. So call your local lender &/or mortgage company (can’t hurt to call more than one and find the right fit for your personality) and then find a Realtor you are comfortable with. Don’t  worry, you really can’t ask a stupid question. Ask all the questions you need until you have a good understanding of the process. Knowledge is power! And even though you may feel overwhelmed at the beginning, it’s worth it when you find a place to call your own.

-Stephanie Fairchild

Tom Ross from the "Steamboat Pilot" wrote a great article about condo pricing trends in Steamboat. It is evident that prices have been on a downward arc, but apparently the Lodgeand First Tracks at Wildhorse are becoming the new definition for mid-level ski condo prices. They are two very different condos, but both are sustaining in higher selling prices because of the great shape and amenities offered. Take a look, it's a great article.

We're here to answer your questions!

Q: What is an REO? What is a short sale? How are they different?

A: A REO is an acronym for real estate owned. It means that a lender has acquired a property through a foreclosure. A foreclosure happens when the homeowner stops making their payments and the bank takes the house back. Another name for a REO or foreclosed home is a bank owned home. While it does not take long to buy a  REO property, it usually needs repair (since the homeowner didn’t have the money to make the payments, they probably haven’t been maintaining it well either) and the bank provides no warranties whatsoever. When you purchase any home, you want to do a thorough inspection, and this is especially true when purchasing bank owned properties. You will save a lot of money on the initial purchase price, but you could also spend quite a bit on repairs. In some cases, you get lucky and find a REO that is in pretty good shape and doesn’t require too money on repairs.

A short sale is when a homeowner owes more on the mortgage than the property is worth. For example, a homeowner bought a house for $400,000. In this example let’s say they put a 20% down payment on the house, equal to $80,000, so the loan amount is $320,000. When this homeowner is ready to sell the house, they realize that all of their neighbors homes (all recent comparable sales) have sold around $300,000. In this example, the home owner is “short” $20,000 on the mortgage. If they don’t have this money available to pay off the mortgage, then they need to get the approval of the mortgage holder to approve the sale price and the $20,000 loss (deficiency.) The approval process from the bank can take a very long time…sometimes up to 6 months. So if the buyers are hoping to be moved in within 90 days, they shouldn’t be looking at short sales. In our local real estate market, when a buyer and seller have agreed to terms of the contract but are waiting on approval from the bank, we change the status in the MLS from “Active” (for sale) to “Kick Out.” If and when the bank approves the short sale, the status will change from “Kick Out” to “Pending.” A pending sale means that the property is under contract to purchase. Once the purchase is complete, the status changes one last time from “Pending” to “Sold.”

The other way that the “Kick Out” status is used is when a buyer wants to purchase a property but they need to sell their own home first. If the seller agrees to this arrangement, they can continue to market the property under the “Kick Out” status. In this case, it’s not the bank that can kick out the contract, it is the seller that can kick out the 1^st buyer if another buyer comes along that wants to buy the property right away. In this case, there is usually a short time period where the 1^st buyer can move forward with the purchase, if they have the funds or if they can qualify for the larger mortgage to do so.

What are your questions? Post them, we'll answer!

When a buyer is home shopping, they will often see numerous homes a day. Because there is often a mad-dash between potential homes, it is very important that your home has a great first impression. To do this, you need to de-personalize the home. It's time to say goodbye to your daughter's bright pink walls and to remove the 450 family photos off of the mantle. Why? Sometimes, when a buyer strolls through a home, they picture the current owner and have  a hard time visualizing the changes they can make if the current features are over the top or 'in their face'. Make sure your first impression counts!

Outside:Curb appeal is huge. If you are a condo owner, you can't do a whole lot in this area, but try to make sure your outside lights have working bulbs, replace the entry mat, and keep your walkway swept (or shoveled.) As a homeowner, try to keep unsightly trash bins out of the way, children's toys picked up, and the lawn mowed. Sometimes, fresh stain or paint can perk a home up and create an inviting environment. Check that the doors all open and close smoothly, and all the locks are in working order. Do you have more than one car? Find somewhere else (the garage, work) to park for the day of the showing.

Inside: If the buyer accepts the outside of the home, you want to be sure they love the inside. It's tricky, especially if you are still living in your home. Try to keep the home orderly; no dirty dishes, children's toys put away, beds made, closets closed. This is important because if they buyer sees your home in complete shambles, they may think, "how has this person cared for the rest of the home? Have they ignored nagging problems like leaky roofs or moldy floor tiles?"

It is also important to keep your place neutral. Brightly colored walls may suit your tastes, but a neutral color is going to appeal to a wide range of buyers. Try replacing the carpeting or flooring that is worn out and dated.

Appeal to the senses! I know one woman that baked cookies in the morning if she knew there was a showing that day, just to make sure the home had an inviting smell. Watch out for pets; when you live with them, you usually can't smell them, but folks who maybe don't own a dog or cat often find the smell offensive. Make sure the blinds are in working condition for a  bright, open atmosphere, and the floors are vacuumed so the buyer does not have the unfortunate experience of feeling yesterday's cheerios or the dog's food underfoot.

Lastly, Depersonalize. This is often the hardest thing to do; we all love having family photos and cute nick knacks around the home.  However, having these objects around may stop a buyer from visualizing themselves in the home. Try to create a bright, open environment. It may feel bare to you, but it will allow the buyer to visualize their own belongings in the space.

I had fun showing some condominiums last week to a couple from Boulder who were looking for investment property and found some great things.  They bought a nice 2 bedroom townhome for $125,000. Putting a pencil to it, it comes out to a great investment.  Here’s how it looks with the incredible financing offered today:

Purchase price: $125,000

20% down payment: $25,000

$100,000 loan at 4.5% interest, 30 year amortization: $507/month

Taxes: $795/yr or $66/month

HOA fees: $330/month

Total Cost per Month:  $903

The next door unit is rented long term at $1,100/month.  So, with a $25,000 down payment, they will net about $2,400 per year, which is a 9.4% return on their investment, not counting any appreciation of the asset or tax benefits of depreciation.

The secret to this investment isn’t just that the prices have come down, but also that the interest rates are so low.  For every 1% increase in interest rate, the monthly payment increases more than 10%.  For instance, if interest rates rise to 6.5%, the monthly carrying cost increases to $1,028 and it’s not nearly as good of an investment.

Call Cam today if you are interested in looking at some good real estate investments.

The U.S. Pro Cycling Challenge is in Colorado! Today they are biking over Independence Pass near Aspen and tomorrow they bike from Avon (near Vail) to Steamboat Spring for Stage 5 of the bike race. The bikers, which include the top 3 finishers from the Tour de France, are expected to arrive in downtown Steamboat Springs between 3:30-4:00 tomorrow afternoon.

Prudential Steamboat Realty is one of the local sponsors of the event, and our own Stephanie Fairchild will be at the tent downtown. So stop by to say hello, chat about real estate, and enter to win a free cruiser bike. That's right, enter to win a 3 speed cruiser bike tomorrow! Ski Haus will also be at our tent giving away free ski demo vouchers. Tents will be lining the streets of downtown from the courthouse on 5th Street to about 10th Street. It should be a huge thrill to see these professional bike racers speed through town, and then watch the winner step onto the podium!

Steamboat Springs is the only town with an overnight stop, so the bikers will stay in town for the night and depart Saturday morning. You can watch them leave from the Meadows parking lot, or stake your claim on Rabbit Ears Pass (HWY 40) to see them climb up this pass on their way to Breckenridge for Stage 6. The last day is Sunday, when they bike from Golden to Denver.

 WIN THIS FREE BIKE!

There's a common joke among Steamboat river guides that our pretty town is a giant eddy. For those of you that aren't river savvy, an eddy is the calm water found behind large rocks or outcroppings of land that protect the water from the fast moving current. The current in an eddy actually moves upstream, and then spirals into a continuous circle that creates a pool that is sometimes difficult to leave. As a part-time river guide, I cannot think of a better term to explain Steamboat, because often when  you pull over to rest in an eddy, you'll find yourself slowly rotating around and around, never fully stopped but also never returning to the current. Steamboat is one giant eddy that people enter and very often do not leave. The common 'how did you end up here' story is that Steamboat was a vacation spot in the winter, and then a summer, and then 10 more.  Like I said, it's a giant eddy.

You may be wondering why I am suddenly relating Steamboat to water. I wanted to share it because it occurred to me this morning that the "currents" of Steamboat are all slowing down. It's no longer a record winter with incredible powder, and it's also no longer one of the best high water river seasons I have ever seen in Steamboat (I can't even explain to  you how amazing the rafting has  been this year). So what is it? It's the lazy eddy days. It's time to float down the Yampa on our tubes, feel the sun on our bellies, and lazily wait for the trees to turn yellow and the snow to start falling. Right now, it is time to breathe. The mornings are crisp and cool, the evenings are producing amazing sunsets, and the days are still hot.

Some of you may not want to think about the upcomming winter, and some of you may be tubing in the Yampa with your Goggles on, working on the perfect pre-ski season goggle tan. If you're the latter, a little tip about today:

It's the last day to buy your pre-season (cheaper!!!!) season pass, DON'T MISS OUT!

Sadly, tomorrow prices will go up an additional $210.

See you tubing in the river....

The LA Times recently published an article about homeowners exchanging time in their vacation homes for other properties around the world. It's all done online and it is a relatively easy process. The home has to be worth at least $500,000 (the article doesn't say how they determine value) and you can exchange time at your second home in one state for time in another state, or even another country. The company is called 3rd Home (www.3rdHome.com) and the idea was launched because "A second home is one of the most underutilized assets people own." Read the full article here.

First time ever……..

FREE CONCERT AT

STAGECOACH STATE PARK BEACH

WHEN:           WEDNESDAY, JULY 27

TIME:              6:45PM TO 8:45PM

WHERE:          STAGECOACH STATE PARK BEACH

THE OLD RIVER ROAD BLUEGRASS BAND!!!

Sample their music at:

facebook.com/pages/Old-River-Road/207569835939050

Donations to “FRIENDS OF STAGECOACH” via pass the hat to benefit Stagecoach State Park. Thank you in advance!

• Must have park pass to enter
• Only 3.2% alcohol allowed in the park
• Please no dogs at our first concert
• Bring your chairs, kids, parents, beach toys, blankets and dancing sandals. 
• S’Mores provided!!  Feel free to bring snacks.
• Play beach volleyball while listening to music
• Enjoy an evening of music in the sand overlooking the beautiful lake