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Dealing with Lenders When Buying or Selling Crested Butte Home

September 24, 2018 By Chris Kopf

Dealing with Lenders When Buying or Selling Crested Butte HomeDealing with Lenders When Buying or Selling Crested Butte Home

Most homes in Crested Butte are sold through cash transactions rather than via traditional loans. This is because Crested Butte is a second-homeowner market, and many affluent buyers either have the cash, or will leverage their investment portfolio through a line of credit. But there are definitely still buyers who are using traditional loans to buy their dream Crested Butte home. If you are a buyer looking to buy your home with a loan, or a seller that sells to a buyer with a loan there’s a few things you should know. Here is information on dealing with Lenders when Buying or Selling Crested Butte home.

Furnished Homes and Lenders

Lodge at Mountaineer Square CondoYou will be dealing with Lenders when Buying or Selling Crested Butte home that is furnished. Quite a few homes in Crested Butte or sold fully or partially furnished. But, furniture has legs. Lenders do not want to loan money on stuff that can walk away. Fixtures are anything that is attached to the home. Examples of fixtures that will usually stay in the home: a range, a built-in microwave, a dishwasher, a water heater, a furnace, a flat-screen TV mounted to the wall, surround-sound speakers built in to the wall, window blinds, carpet, etc. Things that will go are things that aren’t affixed, meaning not nailed, bolted, glued, wired, built-in or cemented. Examples of personal property that will likely not stay are: a washer, dryer, refrigerator, free-standing flat screen TVs, free-standing speakers, drapes, rugs, etc.

As described previously, the devil is in the details, and it is best to be very specific so there are no surprises! If the buyer getting a loan for the purchase of the Crested Butte home, the contract that the lender receives should not show the long list of items on an inclusion list as an attachment to the contract. The contract especially should not call out the value of the said furniture and furnishings. One solution is to create a separate bill of sale for the items to be transacted after closing.

Condotels and Lenders

Crested Butte Luxury CondoAnother time you might be dealing with Lenders when Buying or Selling Crested Butte home is if that home is a condo or condotel. A condo that can generate rental income when you are not using it can be great. There are many condos at the base of ski areas that fit these criteria. Some are literally converted hotels that were remodeled with kitchenettes. If a property is rented on a short-term basis and has a front desk, has maid service and other “hotel-like” services, lenders classify these properties as “condotels”, literally condo + hotel. They are not keen on lending on these types of properties because they are non-conforming or “non-warrantable”. Non-warrantable meaning that the loan will not be bought by Fannie Mae or Freddie Mac; therefore, most mortgage lenders will not lend on a non-warrantable condo.

Non-warrantable Properties and Lenders

Dealing with Lenders When Buying or Selling Crested Butte Home

The justification for this scrutiny by Fannie Mae and Freddie Mac is they want to only buy loans where 100% of the value of the loan is represented in the real estate tied to the loan. If there are other amenities or third-party business that affect the value of the real estate, then the loan is not as secure. Here are some of the other reasons why Fannie Mae or Freddie Mac cite some condo developments may also be classified as non-warrantable:

  • New project with limited sales
  • The project is in some sort of litigation
  • The condo project is incomplete
  • The builder, developer, investor, entity, or person owns multiple units
  • Shops and/or restaurants within the condo project
  • A builder/developer controls the Home Owners Association

There are lenders who will finance the purchase of these properties including local banks. But you will find that rates are higher, and/or there may be a three or five-year adjustable rate increase. This is not an issue for a cash buyer, but it can affect the ability to purchase by a buyer who needs a loan. For the seller this may become an issue because it may also extend the time it takes to sell a condotel. This is due to the fact that there is a smaller subset of willing buyers.

Dealing with Lenders When Buying or Selling Crested Butte Home Final Thoughts

Crested Butte Co Real Estate

If you would like to know more about dealing with lenders and what to consider when buying or selling your Crested Butte home, contact me.

I hope you see the level of detail and time and effort I put into this candid article Dealing with Lenders When Buying or Selling Crested Butte Home. I have become a Top Real Estate Agent in Crested Butte by helping my clients to make informed decisions.

This is representative of what you can expect from me as your agent.

If you’d like to use my knowledge and experience in Buying or Selling your Crested Butte home – call me.

Thanks,
Chris.

How can I help you with your Crested Butte Real Estate Needs?

Chris Kopf Author Real Estate AgentContact me to help you.  I have been in your shoes – as both a Second Home Buyer and Seller here in Crested Butte.

I have over 30 years of sales and marketing experience and am a top real estate agent in the mountain town of Crested Butte, Colorado representing affluent clients who are buying and selling their homes and properties.

If you are Buying your Crested Butte Home – click HERE to get a free copy of my Book The Complete Guide To BUYING Your Mountain Dream Home.

If you are Selling your Crested Butte Home – click HERE to get a free copy of my Book – The Complete Guide to SELLING Your Mountain Dream Home

To see Crested Butte Homes For Sale or search the MLS – visit ChrisKopf.com.

The Crested Butte Real Estate Market is very active. Click this link to see my monthly Crested Butte Real Estate Market Reports.

Chris Kopf
Broker / Owner
Global Luxury Property Specialist
Coldwell Banker Mountain Properties
chris@chriskopf.com
(970) 209-5405

Top Crested Butte Real Estate Agent

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Chris Kopf, Coldwell Banker Mountain Properties
305 6th Street
Crested Butte, CO 81224
  • Chris.Kopf@CBMP.com
  • (970) 209-5405

Testimonials

Bobby Nichols

"The first moment we met Chris, my wife and I knew he was all about what is happening in real estate sales in Crested Butte. He knows his job, the marketplace and the innovative ways to market your home in today's electronic internet space. A real professional that understood us and our needs in handling a very successful sales transaction. "

 
Crested Butte Real Estate by Chris Kopf
2015-02-11T13:45:19-07:00
"The first moment we met Chris, my wife and I knew he was all about what is happening in real estate sales in Crested Butte. He knows his job, the marketplace and the innovative ways to market your home in today's electronic internet space. A real professional that understood us and our needs in handling a very successful sales transaction. "  
https://chriskopf.com/testimonials/bobby-nichols/

Jeff Hollings

Chris is outstanding! We recently bought a second home in Crested Butte and Chris did a great job throughout the whole process. He has a thorough understanding of the market and the benefits and drawbacks of various locations. He was very patient with us as our preferences evolved throughout the search. He gave us valuable information on which to negotiate the purchase. He had great follow-up during the inspection/closing process (when we were not in town) and made sure all of the commitments made by the seller were properly completed.
Crested Butte Real Estate by Chris Kopf
2015-02-11T13:46:48-07:00
Chris is outstanding! We recently bought a second home in Crested Butte and Chris did a great job throughout the whole process. He has a thorough understanding of the market and the benefits and drawbacks of various locations. He was very patient with us as our preferences evolved throughout the search. He gave us valuable information on which to negotiate the purchase. He had great follow-up during the inspection/closing process (when we were not in town) and made sure all of the commitments made by the seller were properly completed.
https://chriskopf.com/testimonials/jeff-hollings/

James Brennan

This was our first experience trying to purchase additional land with hopes of building a home. Chris was tremendously helpful throughout the entire process and his professionalism showed.
Crested Butte Real Estate by Chris Kopf
2014-10-14T17:59:24-06:00
This was our first experience trying to purchase additional land with hopes of building a home. Chris was tremendously helpful throughout the entire process and his professionalism showed.
https://chriskopf.com/testimonials/james-brennan/

Jane Saltzman

Chris was terrific to work with. The house sold faster then I ever expected! He was particularly helpful for this second home owner that couldn't always get there to take care of house issues. Thank you Chris!!!
Crested Butte Real Estate by Chris Kopf
2015-02-11T13:49:37-07:00
Chris was terrific to work with. The house sold faster then I ever expected! He was particularly helpful for this second home owner that couldn't always get there to take care of house issues. Thank you Chris!!!
https://chriskopf.com/testimonials/jane-saltzman/

Georges Lussier

The thought of a short sale was intimidating, but Chris made the experience very easy with lots of guidance from start to finish. I would highly recommend Chris for any Real Estate need buying or selling.
Crested Butte Real Estate by Chris Kopf
2014-10-14T18:05:40-06:00
The thought of a short sale was intimidating, but Chris made the experience very easy with lots of guidance from start to finish. I would highly recommend Chris for any Real Estate need buying or selling.
https://chriskopf.com/testimonials/georges-lussier/

Frank Stringer

Chris Kopf is a wonderful person to work with on any real estate matter you may have in Crested Butte. He is extremely knowledgeable of all elements of the Crested Butte area. He helped us recently to buy a new second home in Skyland and the entire experience was first class under Chris's guidance. I would highly recommend him to anyone who has a real estate need in Crested Butte.
Crested Butte Real Estate by Chris Kopf
2015-02-11T13:51:04-07:00
Chris Kopf is a wonderful person to work with on any real estate matter you may have in Crested Butte. He is extremely knowledgeable of all elements of the Crested Butte area. He helped us recently to buy a new second home in Skyland and the entire experience was first class under Chris's guidance. I would highly recommend him to anyone who has a real estate need in Crested Butte.
https://chriskopf.com/testimonials/frank-stringer/

Paul & Julie Keesee

Chris was quite helpful in showing us homes in the area we were interested in and contacted us when new listings were available. We not only consider him our realtor but also a friend.
Crested Butte Real Estate by Chris Kopf
2014-10-14T18:05:59-06:00
Chris was quite helpful in showing us homes in the area we were interested in and contacted us when new listings were available. We not only consider him our realtor but also a friend.
https://chriskopf.com/testimonials/paul-julie-keesee/

Jim & Sandra Wickham

Chris' patience and persistence paid off for us in finding the right house for the right price. We would highly recommend Chris to any potential buyer.
Crested Butte Real Estate by Chris Kopf
2014-10-14T18:06:18-06:00
Chris' patience and persistence paid off for us in finding the right house for the right price. We would highly recommend Chris to any potential buyer.
https://chriskopf.com/testimonials/jim-sandra-wickham/

Tom & Mary Aton

It was a great experience working with Chris, after showing me what I thought I wanted, he advised me of the pros and cons on the different condos and found one that I am thrilled with.
Crested Butte Real Estate by Chris Kopf
2014-10-14T18:06:31-06:00
It was a great experience working with Chris, after showing me what I thought I wanted, he advised me of the pros and cons on the different condos and found one that I am thrilled with.
https://chriskopf.com/testimonials/tom-mary-aton/

Dan Aquaviva

This agent has a very strong knowledge of the local area. He was very helpful in screening properties for potential purchase.
Crested Butte Real Estate by Chris Kopf
2014-10-14T18:05:26-06:00
This agent has a very strong knowledge of the local area. He was very helpful in screening properties for potential purchase.
https://chriskopf.com/testimonials/dan-aquaviva/
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Crested Butte Real Estate by Chris Kopf

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