What is market value of a Crested Butte home? The real answer is it is valued at the price a buyer is willing to pay, and one a seller is willing to accept. This may sound trite, but it is a fact. For the seller, it only takes one buyer, and for the buyer, there may be only one home that is their perceived dream home. Some sellers want to focus on how much it cost them to design and build the home, or what they paid for the home, or how much money they have sunk into remodel projects. This is interesting information, but the market will usually dictate the relative value of any home. Once a home is put up for sale, most sellers are motivated to sell their home as soon as possible and at the highest possible price. Determining market value and pricing it correctly is the single most important factor in whether or not a home sells quickly, or at all. Location and quality are key in determining price. Whether it is a buyer’s or seller’s market and the inventory of similar properties for sale will also impact the price (supply and demand). The best data to help determine market value of Crested Butte home is to look at what similar properties have sold recently, and if they are really comparable. You or your spouse may love a home, but not the price. Is the price justified given the market? You will be relying on your agent for guidance here. Access to all current property information is essential and can be helpful to justify your offer to the seller.
Comparables (“Comps”)
You may find your perfect home to be above your budget and it may be priced above other comparable homes in the market, but given your timing and opportunity costs, it could be the right decision for you and your family. The reality is that every home is different, especially in a mountain town like Crested Butte. Homes in mountain towns are not like suburban USA where every home in the subdivision is “very similar” in age, size, finishes, quality, and, yes, price point. In a mountain town, there may be three four- bedroom homes side by side that are totally different. One that was originally built as a small cabin in 1890, moved to the lot, and expanded and remodeled five times, next door to a home built in 1982 that has had one owner and has not been updated at all, next to a brand new home finished in 2015. None of these neighboring homes are going to be comps for the other.
Most mountain towns that have a ski area also have a base area with many condo and town home developments. There are some beautiful new base area condo developments. Many of these condos were built during the boom time of ski area development in the mid 1980s. Many of the condos’ interiors have had minor updates done to kitchen and bathroom. It is hard to raise ceiling heights, and it is impossible to make a three-bedroom 1,200 square foot condo into a four-bedroom 2,000 square foot condo. Usually these condo projects were built with two, three and four bedroom options, and each floor plan was identical in layout, quality, and finish-out. It is easier to identify comps for these properties. The differences will be views, furniture, and whether the individual unit has been remodeled and updated. Determining market value of Crested Butte home in these areas is more black and white.
Price per square foot is a useful unit of measure for comparing many single-family homes. Using price per square foot is also useful if you have many similar homes (like the condos or town homes). Price per square foot can be a challenge when you have a very valuable piece of land with a small home on it; then the price per square foot of the home will be out of sight, and it will not accurately represent the value of the entire property, or if you are trying to compare two dissimilar homes. Real estate is not black and white; in fact, much of it in a mountain town lands somewhere in the gray area. Again, this is where you will be looking to your real estate agent as an expert to add some value to the discussion, and to provide some guidance.
3 Keys When Determining Market Value of Crested Butte Home
1.Compare similar homes in the area
It helps to have a competent real estate agent who knows the market and has been in the homes that have sold that are similar. It is great if there are lots of transactions to select from, but sometimes an area just does not have many or any similar properties that have sold in the past six months or even the past year. Going back two to three years and extrapolating the rise or fall of market prices may be helpful.
2.Compare outside the area
Looking at similar sold properties in other areas may be helpful and provide some needed data points.
3. Compare asking price and selling price of other properties
Finally, looking at the other properties that are for sale and similar and then applying the average difference between the asking prices and selling prices to the subject property to determine an estimated selling price can be another data point.
These three methods taken together should provide a pretty good ballpark for what can be expected as a reasonable selling price given the current market. If you have toured many homes given your criteria and price point, you will also begin to form an opinion as to value, and what is a good deal or overpriced in the market. Ultimately, it is your decision. It is an important decision, and given your financial status and outlook, you may draw a line in the sand you won’t step over, or the final price point may be “close enough” for you to move forward.
How can I help you? I have over 30 years of sales and marketing experience and a top real estate agent in the mountain town of Crested Butte, Colorado representing affluent clients who are buying and selling their home and ranch properties in the mountains. To see featured properties or search the Crested Butte MLS – visit chriskopf.com. How is the Real Estate Market doing? Click this link to see my monthly Crested Butte Real Estate Market Reports. Whether you need help in determining market value of Crested Butte home or have questions about the area, I appreciate the opportunity to earn your business and be your Crested Butte Real Estate Agent.
Chris Kopf, Coldwell Banker Bighorn Realty
Previews® Property Specialist
(970) 209-5405
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