Resort Condominium Expenses

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Hi I'm Dave Cole with Prudential Colorado Properties in Vail and Beaver Creek Colorado. Today we are discussing resort condominium expenses, such as what condominium expenses will you have besides a mortgage, if any in real estate taxes. There are two types of condominium expenses, rental management expenses and property management expenses. Rental management expenses only apply if you rent the property. So let's assume that you will rent only short term, meaning night to night. Your expenses will be items such as maid service, advertising, credit card commissions, travel agent fees, supplies, linens, and managers profit etc. These expenses will run 35 to 50 percent of your gross rental income.

Property management expenses are recurring items that you are responsible for, even if the property just remains vacant. This covers the expenses of the property just to maintain it include working order. Items in the assessment vary from building to building, but generally include water, sewer, fire insurance, management fee, trash removal, snow removal, lawn maintenance, pool maintenance, elevator maintenance, commonary cleaning, and common utilities etc. Items generally not in the condominium assessment include debt service, if any, contents insurance, firewood, electricity, telephone, heat, cable, television, real estate and personal property taxes.

For further information please call me Dave Cole at Prudential Colorado Properties in Vail and Beaver Creek Colorado. That's at (970) 331-6867 or email me at Dave@DaveCole.com. Thanks!

Rental Management Gross Revenue Split

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Hi, I’m Dave Cole with Prudential Colorado Properties in Vail and Beaver Creek, Colorado. Today we are discussing why the rental management gross revenue split with a condominium owner is at 35% -50%. The reason that this split sounds so high is because the person asking the question has a reference point of the rental commission to rent a single apartment unit. The only expense involved is the rental commission and perhaps some advertisement, which typically costs 6% - 15%. Such expenses such as maid service, supplies, linens, credit card commissions and travel agent fees are not involved or included. However, in renting a condominium by the night with professional rental management you are effectively in the night-to-night hotel business. This means that you now have the expenses of daily maid service, advertising, credit card fees, travel agent fees, linens and processing, etc. These quickly add up to 35% - 50% of the gross rental income which needs to include a profit for the rental manager.

For further information, please call me, Dave Cole at Prudential Colorado Properties in Vail and Beaver Creek, Colorado, at (970) 331-6867 or email me at Dave@DaveCole.com. 

Are "Days on Market" Actually Important?

 

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Hi, I’m Dave Cole with Prudential Colorado Properties in Vail and Beaver Creek, Colorado. Today I would like to talk about the subject of days on the market for a listing. Many buyers and their Realtors will ask how many days a property has been on the market. A large number of days may mean that the seller is anxious and will be more likely to make an aggressive price reduction or it may indicate that there is something undesirable about the property and buyers that have seen it have shied away from it for that reason.

In the second home resort market this information is often useless because the sellers are generally so affluent that they can and will wait for their price or close to it because they have no financial pressure to sell. Or because the average market time (which can be nine months or more) runs up quickly because we have spring and fall sales off-seasons of 120 days or more that run up the days on the market meter and this may result in misleading information.

For further information, please call me, Dave Cole at Prudential Colorado Properties, (970) 331-6867.

Now is the Time to Buy

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How to Save Up to 10%
As your real estate resource center, we’re committed to keeping you up to date on changes in the market—and what they mean to you. There’s reason to believe prices will increase in 2013, so it’s smart to buy sooner rather than later. 

Buy Now Before Prices Increase

Now is the best time to buy Vail or Beaver Creek real estate in more than 10 years.  The market peaked in 2008 with the lowest inventory for sale and the highest dollar amount per square foot which was in some cases,  more than $3,000 per square foot in luxury properties in Vail Village. In 2009 a severe downturn in the local real estate market took place with the number of listings peaking at 1,810.  This month that number has dropped to 938—a 48% drop from the 2009 peak.  This drastic drop in inventory has led to price increases once again. In 2012 prices were up 5% in Lions Head and 4% in Beaver Creek.

In 2013 prices will most likely increase in range of 5 to 10%. The drop in listings creates price pressure and means you have less selection.

So if you want to buy before the prices increase, you have to be savvier about finding the condominium or home of your dreams, especially because there’s less selection. To avoid home buyer mistakes, the most important step is to find a real estate professional to help you with the process. Also, know what you want in a condominium or home. Ask yourself questions such as how close do you want to be to the ski lift? To shopping? To bars and restaurants? Do you need a garage?(In downtown areas, garage parking is generally included) How close do you want to be to a grocery store, movie theater, etc? Will you need or want a mortgage? Most importantly, how many bedrooms do you need and what is your budget limit?

There are a few items to keep in mind that can have significant impact on the purchase price:

1. The price will be directly related to the lineal distance from a chair lift or gondola.

2. Our ski in/ski out locations are the most desirable, most in demand and the most expensive. They are like oceanfront locations at the beach. They have the greatest rental income.

3.  The downtown locations of Vail Village, Lionshead and Beaver Creek Village are all within 3 blocks to the ski lifts which is an easy walk in ski boots. There are also free shuttle buses within the villages for your convenience. All other properties are in locations that require you to drive or take the bus to skiing.

4. The downtown locations will cost you at least 2.5 times what the outlying locations will cost you.

5. Some of the acquisition cost and operating expenses can be moderated by nightly rental income while you are away. This income can be significant Vail Village, Lionshead and Beaver Creek Village. 

6. The price will be related to desirability of the view. Generally, the ski mountain views and the Gore Range views are preferred.

Based on all the information that you provide, I will help you land your dream condominium regardless of the inventory situation.

Remember, I will not only help you find the condominium or home of your dreams, but I will connect you to the right people to make the entire buying process very simple and easy. In addition to a Realtor® to represent you, you’ll also need a home inspector, a lender and a real estate attorney, which I will recommend to you.

If you have Vail or Beaver Creek real estate in your future, it’s a very good time to start the buying process. Call me at (970) 331-6867 or email me at dave@davecole.com.

A Snapshot Look at 2012 and Glimpse into 2013

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2012 was the best year for Eagle County real estate sales since 2008.  Here’s a look at the stats and what 2013 has in store. 

In 2012 there were 1,726 transactions, which amounted to $1.5 billion in sales.  Homes above $4 million increased from 23 in 2009 to 56 in 2012, an increase of 143%.  Sales of more affordable homes (less than $500,000) increased 58% of sales and were mainly west of Vail.  The 2012 dollar volume was up 31% over 2011, while the number of transactions increased 27%.  The following are statistics on single-family homes and condos: 

•    The average single family home price increased 4% to $1,042,750.  The biggest home sale was just over $13 million.  
•    Compared to the prior year, the average price of square footage in a Vail condo decreased 12% to $1313; Lion’s Head increased 5% to $1,307; and Beaver Creek increased 4% to $701. 

2013 looks like it will be a great year for the real estate market.  There is substantially increased buyer interest, lower inventory, and historically low interest rates of under 4%.  Prices will increase by 5 to 10%.  We’ll also see the best buying opportunities over the past 10 years with good selection available.  

Keep in mind that the current mortgage loan rates make buying a home more affordable than ever.  A 30-year fixed-rate mortgage hovered at record-low rates during 2012.  If you wait and interest rates rise, you could get locked into spending at least a few hundred extra dollars a month on your payment.   
We know that there’s an ocean of REALTORS you can choose from, but keep in mind that you get not only professionalism, but integrity as well as an adherence to the gold standard when working with us.  Our team will guide you every step of the way in the buying or selling process—whatever your need may be.

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Give me a call so I can tell you where to be positioned and how to be successful in this market.  Please contact me at (970) 331-6867 or dave@davecole.com.  We’d be happy to assist you.