Mail-Out Closings and Cash Buyers Are Normal in Crested Butte
Things that might be quite unusual in other places or real estate markets are actually standard practice here. The two biggest examples of this are that mail-out closings and cash buyers are normal in Crested Butte. This is largely due to the fact that most buyers and sellers in Crested Butte are affluent second-homeowners and mail-out closings and cash transactions are simply easier. This does not mean that you must do mail-out closings or be a cash buyer, of course. But it might be good to know and realize that these things are considered standard here in Crested Butte.
Most Crested Butte transactions are with second homeowners. It is rare for either the seller or the buyer to come to Crested Butte and show up at the title company to personally sign documents at closing. Instead, we routinely do “mail-out” closings. It is normal for the title company to send out all the documents via overnight FedEx to the seller and the buyer along with a return FedEx envelope for them to overnight the signed and notarized documents back. The title company likes to print out all the documents, check them twice, and put the whole packet in the FedEx pouch. The banks still do not accept electronic signatures however. So, in order to record documents in the county, a “wet ink” signature is required.
While mail-out closings and cash buyers are normal in Crested Butte, banks still don’t understand this mail-out business. No matter how many times you tell them it is a mail-out closing, the underwriting guys in the cave work off their own calendar, with no regard for loan contingency deadline, and closing date. “Just move the dates back,” they say, but that doesn’t work for many buyers and sellers. This is another instance in which an experienced local realtor can help ease you over speed bumps in the process of buying and selling your Crested Butte dream home.
The Cash Buyer
In Crested Butte, Colorado, the majority of homes are sold via cash transactions rather than traditional loans. In 2014 in the Crested Butte area, 54 percent of the properties sold were cash transactions where there was not a traditional lender involved. Of the properties sold for more than $1 million, the percentage of cash transactions was 60 percent. Because Crested Butte is a second-homeowner market, many affluent buyers either have the cash. Or they will leverage their investment portfolio through a line of credit.
Many look at the cheap rates and start down the path of borrowing money. But as the numbers show, the majority don’t pursue traditional lending sources. This is possibly because many affluent buyers are business owners or partners in businesses and the lending process and detailed information required by the lenders is viewed as too burdensome. These are further reasons for why mail-out closings and cash buyers are normal in Crested Butte.
Mail-Out Closings and Cash Buyers Are Normal in Crested Butte Final Thoughts
If you would like to know more about mail-out closings or cash transactions, contact me.
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