• Chris.Kopf@CBMP.com
  • |
  • (970) 209-5405

Crested Butte Real Estate by Chris Kopf

Chris Kopf Coldwell Banker Mountain Properties

  • SEARCH MLS
  • My Listings
  • Areas
    • Crested Butte
    • Mt Crested Butte
    • Gunnison
    • Almont
    • Maps
    • Subdivisions
    • Local Information
    • Colorado
  • Sell Your Home
    • Coldwell Banker Global Luxury
  • Blog
  • About Me
    • Testimonials
    • Giving Back
    • Newsletter Sign-Up
  • Contact
  • Newsletter Sign-Up

Remodel Dilemma Selling Your Crested Butte Home

January 25, 2018 By Chris Kopf

Remodel Dilemma Selling Your Crested Butte Home

Remodel Dilemma Selling Your Crested Butte HomeRemodel dilemma selling your Crested Butte home, I just spent quite a bit of time advising a potential client on the value of their home. The unfortunate dilemma for the Seller is that the home is in need of a significant number of repairs, but the seller “just wants to sell their Crested Butte home”.

They do not want to spend the money, time and effort to do the remodel work needed…

I get the opportunity to work with both sellers and buyers –
so you get the benefit of me sharing my knowledge with you
(so you can make informed decisions).

It takes quite a bit of energy and commitment to take on a large home remodel project. And remodel projects make most people tired and weary just thinking about the process and timeline.

It is also human nature to be excited about a project you will be enjoying for years to come – but if you are a seller you are leaving. Adios. See Ya. Turn the Page… and so it is understandable that a seller does not want to “fix stuff”. It feels like money down the drain.

So, if a Seller is thinking that it is too much of a hassle and probably way too expensive to spend their money on their own home – what do you suppose most Buyers are thinking?

A Buyer’s Perspective on a Crested Butte Home Remodel Starts with Fear

Remodel Dilemma Selling Your Crested Butte HomeWhen a Buyer knows that there is money needed to be spent on a remodel they are fearful. They will factor in the known cost for the remodel, AND the unknown costs… And this cost is likely to be more than double the estimated cost. Plus they will add their time and effort to take on the project.

There is a real financial risk to a buyer and they are fearful.

The Buyer wonders what will be found when a contractor rips into a wall, or goes to do something simple like replace a window?

Simple Window Replacement – Not

It is very likely there may be some old rotten wood, and instead of a simple window replacement there will need to be a new window frame set to accept the new window. And in order to do the carpentry work to put in the new window there will need to be drywall removed. And then the drywall will need to be repaired, and re-painted. And due to the paint fading over time, the paint color touch-up won’t match exactly, so the whole room will need to be repainted…. And so on.

The buyer is not being unreasonable when they submit a “low-ball” offer to the seller – they are being realistic from their perspective.

What is the Typical Reaction of the Seller toward the Risk-Taking Buyer?

The Seller’s Math is different. The Seller is only looking at the rest of the market and estimating their Selling Price.  Seller’s are usually “offended” by the Buyer’s offers on homes that need work. Usually the Buyer has done the math, and the seller is not wanting to address the elephant in the room.

Most Buyers who are willing to entertain a home that is “a project” will be perceived as “sharks in the water” to the seller.

So, the Buyer may take a shot and send an offer to the Seller. It will add up like this for the Buyer.

The Buyer’s Math

Remodel Dilemma Selling Your Crested Butte Home

The cost of the home + the remodel cost + the overage fudge factor + the Fear and additional risk it will be more + their Buyer’s time and effort to oversee the project + the carrying cost for the time the Buyer will own the home but can’t yet enjoy it (because it is filled with workers and under construction)…

The reluctant buyer who chooses not to make an offer will usually frustrate the seller for their “lack of adventure”.

How does the Story End for the Seller?

Remodel Dilemma Selling Your Crested Butte HomeThe Seller will either win the lottery, or the market forces will convince them that they are overpriced.

It will take a while, and sometimes they will shoot the messenger (their real estate agent). Eventually they will reluctantly agree to price reductions until finally a buyer arrives who is a risk taker and submits that “low-ball” offer that the seller reluctantly accepts.

The Inspection and the Objection

There will be a professional Inspection done on the home. The Inspection will reveal more surprise “issues” that were unknown to both parties at the time of the Contract.

The Buyer will go back and do The Buyer Math again (using the same formula as before). Then the Buyer will submit an Inspection Objection to the Seller demanding that the Seller remedy these surprise issues or provide a reduction in the agreed to price (or a credit at closing), else the Buyer will terminate.

Since the Seller is now privy to this new information in the Inspection Report they must fix this stuff, and reveal this in their Seller Property Disclosure to any future buyers. So, they can either deal with Buyer #1 now, or kick the can down the road.

The Seller calculates their carrying costs, the thought of starting over… and they come to terms with the Buyer with some concession so the deal will close and they can be done, and they can turn the page…

Deferred Maintenance Required – What is Usually Needed?

Conventional wisdom is that 3% – 5% of the value of the home is necessary on an annual basis for deferred maintenance, upkeep, appliance replacement…etc.

In the Crested Butte area, the exterior of a home is subject to harsh conditions – especially the South and West facing sides of the home.  Delay of needed upkeep will cost more as surfaces are exposed to the elements and start to break down…

Some Typical Parts of a Crested Butte Home That Need Attention

A home built in the early 1990s does not seem like it is “old”. But time flies – and if we do the math we see that yes there are a lot of “relatively new” Crested Butte homes that are more than 25 years old.

Entryway – Front Steps and Porch

Remodel Dilemma Selling Your Crested Butte HomeI have had Buyers turn around refuse to walk into a home they really wanted to see simply because the first impression was not good. Pay special attention to front steps, porches, front door area and make this a priority. You don’t get a second chance at a first impression.

Windows & Exterior Doors

There are no small expenses in a big home… you can’t just replace one window or exterior door. If one window is failing – there are probably 20 or more that may need to be replaced.

Depending on the type of window construction and the trim work done and the upkeep of the paint – there may also be some deteriorated wood framing and additional carpentry work needed.

Replace Exterior Decks

Remodel Dilemma Selling Your Crested Butte HomeIt is not unusual that exterior decks and deck railings will be in need of significant repair or need to be replaced. It is not uncommon to find exterior decks did not pressure treated wood.

It is also not uncommon to find homes where the roof sheds snow onto a deck area.  This will always be an issue. A neighbor and client of mine recently replaced a sliding glass door to their deck with a picture window and decided to not rebuild the deck – instead adding deck space to another section of the home.

Replace all Soffit and Facia and trim?

Remodel Dilemma Selling Your Crested Butte HomeOut of sight out of mind. These areas are also referred to as the eves under the roof and left unattended to can become an expensive repair down the road.

Staining and/or Painting

Pay now or pay more later. Exterior Staining or Painting is very necessary – most professional painters in the Crested Butte area make a good living, and are in demand. They are protecting very expensive wood underneath those coats of stain or paint.

Vapor Barrier in Crawlspace

Remodel Dilemma Selling Your Crested Butte HomeMany homes in the Crested Butte area have water in the crawlspace due to seasonal Springtime run-off.  Others have standing water that may seep in through the foundation (water will find a way) and this requires a pump and vapor barrier to prevent wood from getting rotten or moldy.

Seller’s Who are “Do it Yourselfers”

Remodel Dilemma Selling Your Crested Butte HomeSome projects are easy – most require a professional. It is easy to spot the project that was not professionally done. This could be an addition to the home, or a “jerry-rigged” home audio/video system with unsightly cables and 9 remotes…  Exposed cables denote complexity and problems.

A New Roof?

So, what is the life expectancy of a roof in harsh winter conditions in the Crested Butte area? Most would say a roof that was installed in the early 90s would last “about” 25-30 years.

Technology Refresh

The flat screen TV has been very common in our homes now for over 15 years. Tube TVs are obsolete and provide a negative connotation to the home for the Buyer. These anchors will cost $50 to $100 each just to throw-out at the Gunnison dump.

Replace the tube TVs with sleek high definition flat screen smart TVs (or with an Apple TV device).

Add a Sonos wireless sound system to the TV Replacement at the same time and create a full-audio experience in the home.

The good news is by mounting the flat screen TVs on the wall, you will find that the large bulky armoires that housed the old TVs can also be removed.  And the side benefit is this provides more space in every room and makes the home feel larger.

A Current Example – 625 Red Mountain Ranch

Estimates put this huge log home construction at well over $7.5M. It sat vacant for 5 years. It is a bank owned property and in need of a fair amount of work. I am not privy to the contract details, but expect it will likely close well below $2M or 25% of current market and/or replacement cost.

Banks are rational sellers of residential real estate.  I have had the opportunity to represent a number of banks. They are not emotional, and because of this they will keep reducing the price every 90 days until the property sells.

A Note to Sellers

Remodel Dilemma Selling Your Crested Butte Home

I have watched this “Remodel Dilemma Selling Your Crested Butte Home” story play out through the years as I have represented both Sellers and Buyers.

I realize this may not be exactly what you hoped to hear, but probably what you know deep down to be realistic.

My Recommendation for Sellers

Do what I suggest in my Book – The Complete Guide to Selling Your Mountain Dream Home: Eliminate the surprises.

  1. Get what I call a “Reverse Inspection” of your home now by a professional Inspector (including Radon Test) to determine what the list of issues are…
  2. Then get bids from qualified contractors to determine what the costs would be to repair your home.
  3. Have an Appraisal done by a local professional Appraiser.

Get the information so you can make informed decisions.

If you choose to spend the time, effort and money, you will have a project in front of you over the next year (given the competition for contractor’s time in CB right now).

If you choose not to take on this project, I think your market price will be well below what you expect. And your home will likely sit on the market longer than you hoped.

Final Thoughts

Save yourself the anguish of not knowing. I hope you see the level of detail and time and effort I put into this candid article Remodel Dilemma Selling Your Crested Butte Home.  I have become a Top Real Estate Agent in Crested Butte by helping my clients to make informed decisions. Some decisions are not always easy.

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

If you would like to know my recommended local Inspectors, Appraisers, Contractors – Call me to discuss your specific home.

Thanks,
Chris.

How can I help you?

Selling your Mountain Home TipsI 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. To see featured properties or search the MLS – visit chriskopf.com.

How is the Crested Butte Market doing?  Click this link to see my monthly Crested Butte Real Estate Market Reports.

Chris Kopf, Coldwell Banker Bighorn Realty

Get your Free Copy of my Book – The Complete Guide To SELLING Your Mountain Dream Home

“I appreciate the opportunity to earn your business and be your Crested Butte Real Estate Agent.”

Contact Info:

Chris Kopf
Global Luxury Property Specialist
Coldwell Banker Bighorn Realty
(970) 209-5405, or chriskopf@bighornrealty.com

Click here to do an advanced search the Crested Butte MLS  for properties for sale in the Crested Butte area.

Remodel Dilemma Selling Your Crested Butte Home

Email, RSS Follow

banner

Contact Chris

Providing Superior service to the Crested Butte real estate market.
(970) 209-5405
Email Chris
Google Maps Link

Free Books

Buying your mountain dream home
This message is only visible to admins.
Problem displaying Facebook posts.
Click to show error
Error: Server configuration issue

Connect with me!


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/
0
0
Crested Butte Real Estate by Chris Kopf

The data relating to real estate for sale on this web site comes in part from the Internet Data Exchange (IDX) program of Colorado Real Estate Network, Inc. (CREN), © Copyright 2016. All rights reserved. All data deemed reliable but not guaranteed and should be independently verified. This database record is provided subject to “limited license” rights. Duplication or reproduction is prohibited.

Full CREN Disclaimer Fair Housing Disclaimer

Equal Housing Opportunity. Equal Opportunity Employer.

Copyright © 2021 Chris Kopf Real Estate, Ltd.