Sell Smarter – Understanding the Top 5 Concerns of Crested Butte Buyers Today

 

Sell Smarter – Understanding the Top 5 Concerns of Crested Butte Buyers Today – Covid is over and the backdrop of rising interest rates has impacted the number of buyers in the market. So what should you be aware of when considering selling your Crested Butte home?

Potential Sellers: This article is for you if you are considering selling now – or one year from now (so you can be informed and prepare).

Potential Buyers: Be an informed buyer and consider these key areas in addition to your specific criteria.

The Current Economic Backdrop Matters

We have seen the Crested Butte real estate market go up and down over the years. When the ski area was sold to the Muellers and they announced $250M in ski-area and base area improvements the Crested Butte real estate market spiked – it helped that anybody with a heartbeat could get a loan.

Then came the financial crash in the September of 2008 as the emergence of sub-prime loan losses in 2007 began the crisis, and exposed other risky loans and over-inflated asset prices. With loan losses mounting and the fall of Lehman Brothers on September 15, 2008, a major panic broke out on the inter-bank loan market.

I spent the majority of my career in technology sales and sales management. We had been second-homeowners in Crested Butte for 1o years prior to moving our family from Dallas to Crested Butte in June of 2009 when I got my real estate license.  It was the height of the recession. By 2010 and 2011 we saw 43% of all transactions as short-sales or foreclosures.

The Crested Butte real estate market did not really stabilize until 2014. From 2014 until Covid the Crested Butte real estate market saw a steady price appreciation of approximately 8% year over year.  During the Covid pandemic we saw another spike in real estate transactions and values. In 2022 and 2023 we have seen average price per sq. ft. level out.

Sell Smarter – Understanding the Top 5 Concerns of Crested Butte Buyers Today

I have had the pleasure to successfully help over 400 clients to sell or buy real estate here in Crested Butte. There are no two transactions alike. As a seller – there are some things you can control and you want to ensure you do the best to appeal to your target buyer. I have identified some areas of concern for buyers that will be helpful for seller.  This is important because it affects the value of the home and the timeline to get the home sold as well.

1. Location in Crested Butte

The Crested Butte area is a small market – but has a number of micro-markets that have very different price points. It is no secret that the highest prices per sq. ft. are found in historic downtown Crested Butte. For many – being within walking distance is an important benefit. The homes are smaller and closer together, but the location is key.  Some people want more space and views. Some people want to be in a wilderness setting on a 35 acre parcel. I have had clients who moved from Mt. Crested Butte to the Skyland area to be closer to the Club at Crested Butte.

When I meet with Buyers I always ask them if they have really considered the pros and cons of different areas – and what areas are they considering and why…?  Everyone has different motivations and it may be proximity to skier access, trail access, river and fly fishing access, being closer to the wilderness…  Some people love to golf. Some buyers prefer views of certain mountains or prefer sunset over sunrise views, and some want to be close to their friends or family that have a home in the Crested Butte area. It’s all personal preference. Everyone has different important attributes, but a specific location is what many look for.

As a seller – you cannot change the location of your home. As a real estate agent I promote the unique benefits of your location.

2. Priced to the Current Crested Butte Real Estate Market

The Crested Butte Real Estate Market has shifted. We saw a huge run-up in price points as a result of Covid (people being able to work remote). But now with the backdrop of inflation, rising interest rates and stock market volatility we are seeing price adjustments and an overall price plateau.

In most areas and property types we have plenty of inventory (except for quality single family homes below $2M) as the bell curve has shifted to the $2M – $3.5M range for most quality single family homes. Construction costs of $900 – $1,200+ per square foot for both new home construction and remodel work.have also contributed to this price increase.

If a home has been on the market for an extended period of time and there have been 10+ showings and the feedback is consistent – the seller may want to adjust the asking price down to be in line with the current Crested Butte Real Estate market.

For more information and to see the big picture and all the details get your copy of my monthly Crested Butte Real Estate Market Report.

3. Size and Layout

I always as buyers how they plan to use their Crested Butte dream home – how many visitors do they expect…(family, friends, clients…)?  When do they expect to host these visitors – summer or winter?

When searching for a Crested Butte home, the size, number of bedrooms and bathrooms and the layout is an important attribute for most buyers. Having the main living area and master bedroom on the main level is a plus.  4 bedrooms, 4.5 baths and a bonus room are what most buyers are looking for.  Extra spaces for working remotely are a plus in this post covid era.

People who like to gather and interact enjoy a nice open floor plan in their main living area. An outdoor living space can also be a perk for gathering and taking in the panoramic views.

4. Quality Finish-out + Condition of the Home

My wife and I have been totally remodeling our home. We moved out for 18 months (yes longer than we expected due to some change orders and challenge with very busy sub-contractors).  We are very happy with the quality of the work – and will enjoy the extra space and the more open layout when we host family & friends.

New homes or newly remodeled homes sell at a premium. The modern mountain design has arrived in Crested Butte – and this is very appealing to many Crested Butte luxury home buyers. We have seen new spec homes in Aperture that have set new highs for single family home sales. Curb appeal and the interior look and feel of a Crested Butte Home is so important. If it’s not striking or if it’s old, it will likely sit for quite some time and command a much lower price point.

In many ways I see women’s fashion and home interior design as similar.  You can spend nearly the identical amount of money on a black quartzite countertop as a white or grey quartzite countertops. Both provide the same function – but the current trend is toward very light colors.

But…. just replacing the flat surfaces is usually where it starts – there is the backsplash, and the cabinets, and the sinks, and the fixtures, and the appliances…, the lighting, the color of the trim (typically natural wood with clear coat), the paint on the walls, the window coverings, rugs, furniture fabric selections…

Buyers will do their homework and consider the dollars needed to update a home. Most buyers will pass on a home if there are uncertainties – cost, timeline, effort for the remodel…  It is not uncommon to hear $150,000+ for a new kitchen, or $50,000+ for a remodeled full bathroom.

If you have an older home and you want to enjoy it for many years to come – you may consider doing the updates that you can enjoy – and then get the value out of when you sell.

See Remodel Dilemma Selling Your Crested Butte Home

The Inspection – During Covid we saw some transactions where buyers were in a competition and some Inspections were waived. This is very unusual. There will be an inspection of 99.9% of all homes that are Under Contract. The buyer wants to really understand what they are buying.  I often ask seller clients – do you want to know what is wrong with your home now – or wait for a buyer to tell you…?

The Reverse Inspection – I often recommend to my seller clients to do what I call “The Reverse Inspection”.  It is common knowledge that a buyer will hire an inspector to go through the home with a magnifying glass and a fine tooth comb, but most sellers never consider this as an option for themselves.

Some sellers will be thinking: “I don’t care what they find, I am sure as heck not spending one dime to fix any of the ridiculous issues their inspector finds in my perfect home!” This is a silly emotional thought, but it is human nature and very common. Instead, why not get ahead of the curve and the buyers and hire your own inspector to give you the report that you know is coming anyway?  Don’t wait until you are Under Contract and there is time pressure to get estimates and or fix items. Get a complete inspection done on your home – including the roof, and annual maintenance/ check-up on the furnace, and boiler system. Do you have a wood burning fireplace – get a chimney inspection/sweep done as well.

Best practice is to take the report and hire a handyman and the various contractors needed and fix all the stuff! Be sure to document the work, including keeping the receipts. This can be a very useful tool up front in the marketing of the home, as well in the negotiation process to assure the buyer they are not facing a lot of downside risk in buying your home. A buyer may hire the same inspector since he already knows the house. If they hire a different inspector, then you can provide them with the documentation as well. There may still be minor items that are found, but it will likely eliminate any confrontation at this stage of the transaction.

5. Resale Value

In 1999 my brother Rick and I came to Crested Butte for a 4 day ski trip and to “check-out the real estate market”. We went home and told our wives that we put an offer on a home. I looked at this investment as a replacement for the low-return wedge in the pie chart of my investment portfolio.

Nobody can predict the future – but most buyers will consider the potential resale value of the home. They look for properties that are likely to appreciate in value, considering factors like upcoming developments in the area, and the overall future demand in the Crested Butte housing market.

I believe we will continue to see rising price points as Crested Butte is still a very good value compared with other ski-resort markets. Just like when the Muellers announced the cash infusion in the ski-are and pre-sold condos in the Lodge at Mountaineer Square – I believe when we see a new luxury condo building announced at the base area it will set new highs for condo price points, which will again have a ripple effect for all Crested Butte real estate.

Some buyers will look at the macro market forces – and others will act like a shark in the waters and grind on a specific home’s price point.

Make it Easy For A Buyer

This section is very important for you to Sell Smarter – Understanding the Top 5 Concerns of Crested Butte Buyers Today.

I pride myself on helping ensure the transaction is smooth and easy for my clients. Buyers are making a major investment when purchasing a Crested Butte home – or parcel of land to build on. It is best to have sellers start out thinking how they can help the buyer and reduce stress and questions and concerns by providing helpful information.

Value is determined by the items above, and the market, including the recent transactions, and the competing inventory – but really between a buyer and seller for each Crested Butte home sold.  Reducing perceived risk for the buyer is adding value by the seller.

A List of Docs

Here is a short list of some of the items to gather that can be helpful for buyers to make an informed decision (and having these docs provides peace of mind).

• Survey or ILC of the property
• Building Plans in digital format (you can get them scanned in at FedEx / Kinkos (or Bubble Wrap here in Crested Butte).
• Utility History for prior 12-24 months (I have had some seller say “well if they have to ask they can’t afford the home…”  yes, I get it, but not always true – I have worked with some very affluent buyers who are detail oriented and they need to fill in the blanks in their spreadsheet…)
• Other Annual expenses – Snow Removal, Landscaping, Window Washing…
• Annual Maintenance records – have you had an annual “check-up” of your heating, plumbing systems…?
• Rental History – Lots of buyers are looking to purchase a second-home and generate some rental income when they are not using their home. If you currently rent your home – do you have rental history for the prior 12-24 months?
• Service Provider List – do you have a Property Manager, who is your Homeowners Insurance with, Who set-up and takes care of your Audio/Visual Systems in the home..?
• Who is your Internet Service Provider?  Century Link, Spectrum, Xtream Internet, Starlink…? What are your upload/download speeds…?
  • If an agent was going to do a FaceTime live video tour likely they will need access to your wifi network – Network name and Password
• What are all the codes for access – HVM Security, Garage Keypads…
• If raw land – have you had Soil Testing done? Do you have the reports?  Local architects strongly recommend this to buyers. This work cannot happen during the winter. Micro piles for the foundation can add an average of $150,000 to the cost of construction.
• Do you have a well?  Have you had a well test done in the past 2 years? What about water quality testing reports? Do you have info regarding the water filtration system – who maintains it…?
• Do yo have a Septic System – It is now required by Gunnison county to have the Septic System professional inspected and prior to a transfer of title to comply with the Environmental Health & OWTS (On-Site Wastewater Treatment Systems) regulations. Generally this is a Seller’s responsibility – and best to have this completed as a part of the annual service of the septic system prior to winter and snow – or putting the home on the market.
  • See link: https://www.gunnisoncounty.org/140/Environmental-Health-OWTS.
• HOA Docs – Contact info and meeting minutes and financials.  Some HOAs are great and have professional HOA management and websites with documents and info that make it easy for the buyer to access. Others, not so much.