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1st half of the year stats

by Allison Simson

Summer is in full swing in Summit County and the market is beginning to show some good summer activitiy.  Inventory is up, and there are some great options on the market right now.

If you would like to look at the specific market info on any particular town in Summit County - check out these links.  If you like to see how the numbers stack up, you're in for a treat! 

1) Dillon

2)
Wildernest/Silverthorne

3)
Frisco

4)
Breckenridge

5)
Keystone

6)
Summit County Update

Take a look and let us know what you think and if the information is helpful to you! 

And Here's Your Morning Coffee!

Is contingent-sale real estate offer worth the risk?

by Allison Simson

How sellers can protect themselves

Question:  Allison, we are selling our home in Frisco, CO and we received an offer that was contingent on the sale of the buyers property in Kansas.  We rejected the offer, but are now questioning our decision.  What should we know about contingent offers? 

Answer:  Good question! Some sellers are fortunate and receive an all-cash, contingency-free offer. But many purchase offers include contingencies for property inspections, and appraisal and loan approval. Buyers who need to sell a home before buying might include a contingency for the sale of their home.

According to Dian Hymer, Inman News, until a transaction is closed, there is risk involved. For example, buyers have been known to make a big purchase, like a new car, just before closing. If the lender does a pre-closing credit check, the new car purchase could put the transaction in jeopardy even though the buyers were previously approved for the loan.

Even an all-cash offer can be risky if the money is coming from overseas and never shows up. An offer without an inspection may come back to bite you if defects are discovered after close that could have been negotiated before the transaction was complete.

An offer made contingent on the sale of another property has a higher risk factor than an offer from buyers whose funds for the down payment and closing costs are liquid. For this reason, many sellers won't accept them.

Don't turn down a contingent-sale offer just because it's contingent. Some are riskier than others. For example, if the buyers' home is pending sale and all contingencies are removed, it might be worth going forward with it, particularly if your home has been on the market awhile with no offers.

Contingent-sale buyers are often willing to pay more than "non-contingent" buyers. The premium is to entice the sellers into working with their offer.

Sellers who accept an offer contingent on the close of another property sale should be sure to request a copy of purchase contract for that transaction and verification that contingencies have been removed.

Ask your agent to talk to the buyers' agent to get permission to talk with the buyers' lender to see if there are any anticipated impediments to the close of the sales. Since appraisals have been an issue recently, an offer from a contingent-sale buyer would be more attractive if the appraisal contingency on the sale of their home had already been removed.

Make sure that your contract with the contingent buyer includes a clause that requires them to notify you in writing if their deal is canceled for any reason. You should then have the option of canceling the contract, if you want to. If the buyers have a backup offer, you might choose to continue with the transaction.

One factor to consider when weighing the merits of a contingent-sale offer is the salability of the property. This is particularly so if the buyers' home is not yet on the market. If your home isn't selling, it might be worth considering a contingent-sale offer from buyers whose home is likely to sell quickly. It could be located in a more coveted area, or be in a more easily salable price range.

With a contingent-sale offer, if the buyers' home doesn't sell, they don't have to buy your home. The deal is canceled and you look for a new buyer. This can be a waste of time if the buyers price their home too high for the market. Include a provision that your agent must approve the list price of the buyers' home.

Sellers who accept a contingent-sale offer can gain protection by including a clause in the contract that permits them to continue to market their home for a backup offer. A release clause or kick-out clause should also be in the contract.

A good idea:  A release clause allows the sellers to notify the buyers that they have a certain time (often 72 hours) to remove their contingent-sale stipulation or withdraw.

 

 

For answers to your real estate questions, call Allison at 970-468-6800. Email - [email protected]. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com   

1151 Rainbow Drive in Silverthorne could be your next primary residence in Summit County, or your family getaway in the mountains! This beautifully maintained single family home boasts 4 bedrooms and 2 ½ bathrooms and over 2000 square feet. Built in 2004, this home is light and bright with a ton of windows to let all the sunlight in. An open floor plan with a large kitchen and family room has nice finishes and hardwood floors throughout the home.  Vaulted ceilings, deep closets and a crawlspace with additional storage are just a few of the other wonderful things you will find here.

Mountain living at it’s finest continues outdoors with an almost ¼ acre lot and very nice landscaping.  Most of the trees and flower beds are on an irrigation system, making the maintenance here very easy.  Relax on the large deck and soak in the jaw dropping Gore Range views to the west!  This home is in a great neighborhood that is walking distance to the Rec Center, Rainbow Park and the new Rec Path along the Blue River.  Homeowners also have access to the nearby pond for boating and fishing.  Store all of your toys for the walks to the pond, park and bike path in the attached 2 car garage.

This home is listed for sale at $535,000.00 and $257/square foot. Compared to other single family homes in Silverthorne sold in the past 12 months that were built after 2000, between 3-5 bedrooms and less than 3000 square feet, 1151 Rainbow Drive is listed well below the median sale price of those comparable homes at $283/square foot. Don’t wait until interest rates creep up and up and inventory levels go down, give your broker or Summit Real Estate a call to see this roomy and bright home today! 

 

  

 

Looking to Buy?  Not ready to speak to a broker?  Visit www.SummitHomeBuyer.com

 

Meet Lynn Sustad, Kelie Gray and Anna Willis, the Buyer Specialist Team at Summit Real Estate-The Simson / Nenninger Team.  Devoted to working only with Buyers, these Specialists tour hundreds of homes and commit to having the most comprehensive knowledge in the market.  A member of the Buyer Specialist Team can be reached at (800) 262.8442 or (970) 468.6800, www.SummitRealEstate.com or email us at [email protected]ealEstate.com


Timing a purchase, sale in today's market

by Allison Simson

Loan limits, investors may impact your decision

Question:  Allison, we’re debating timing the sale of our Wildernest Condo with the purchase of a Mesa Cortina single family home.  Any thoughts?

Answer: The decision of whether to buy or sell a home is perplexing. A lot of buyers and sellers are still wondering if now is the right time to be in the market.

According to Dian Hymer of Inman News, ideally, buyers would like to know that the market has hit bottom and that the value of what they buy won't decline. Sellers who will sell at a loss today wonder if they should get out now or wait for a better market to sell.

When will that better market appear? It's impossible to time the market. We'll know that we hit bottom after the market turns around -- not before. Some economists think this will take another two years; others expect a turnaround in five to six years.

Many economists think we're at or close to bottom. However, it's expected that the market will be rocky for some time. The market will change seasonally. For example, it's typical for home sales to decline during the winter months.

Good and bad news can affect whether buyers feel optimistic about home buying. The fact that the conforming jumbo loan limit is likely to drop to $625,000 from $729,750 could spur home sales in higher-priced markets between now and September, when the higher loan limit expires.

Interest rates have been fluctuating but remain below 5 percent for conforming, fixed-rate mortgages. Interest rates and affordability in general have a great impact on the strength of the housing market.

The news about the real estate market was discouraging at the beginning of the year, as hopes of a solid recovery were dashed by declining home-sale volume and prices. Some economists even predicted that the housing market was headed for a double-dip recession, but this doesn't look likely at this point.

March brought good news as home-sale volume nationally picked up 3.7 percent from February, according to the National Association of Realtors. However, the sales were primarily driven by investors buying cheap foreclosures.

Although investor purchases were up, the percentage of first-time-buyer purchases was down, possibly due to tough mortgage qualifying criteria, which are expected to become even more difficult going forward.

Leslie Appleton-Young, chief economist for the California Association of Realtors (CAR), points out that it's difficult for buyers to trade up or down if they don't have equity in their homes. According to CAR, approximately 25 percent of homeowners in the U.S. owe more than their home is worth. Appleton-Young believes the figure is closer to 31 percent in California.

Keep an eye on trends, but focus on your local neighborhood when making decisions about buying and selling.

 

 

For answers to your real estate questions, call Allison at 970-468-6800. Email - [email protected]. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com   

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Photo of Summit Real Estate Real Estate
Summit Real Estate
The Bright Choice
330 Dillon Ridge Way, Suite 10
Dillon CO 80435
970-468-6800
800-262-8442
Fax: 970-468-2195

Allison Simson, Owner/Broker, is a licensed Colorado Real Estate Broker