Market Insights: Secret #13 to getting a great deal
February 9, 2013
Editor’s note: Last week Daniel provided you with data showing that distressed properties are on the decline. To read the article, go to http://www.summitdaily.com and search “market insights.” Over the years, Daniel has provided buyers with a dozen ways to get a deal. Here is number 13.The most common statement I hear from buyers these days is, “I want to buy a distressed property.” Having represented many of the distressed sales in Summit County over the past four years, I know what the buyers are really saying is, “I want to get a great deal.”Buying a distressed property can be one way to get a great deal. However, it is a lengthy, difficult and complex process which does not always result in a great deal. Secret #13 is actually a combination of two techniques. If finding a steal is your top priority, your Realtor, if he or she is a buyers agent, should be providing you with the data below. If your Realtor has not done this, request it. If your Realtor still doesn’t provide it, fire him or her.
All real estate is local. This past week, I was at a conference in Vegas for the top 4 percent of U.S. residential Realtors. At the conference, I heard how some areas of the country are seeing price increases, others have stable prices (as, for the most part, we have here) and, finally, there are markets where prices are continuing to decline. Just as markets vary across the country, within Summit, we have various segments. Overall, the number of properties on the market (the “inventory”) is much lower than in previous years. However, that is not the whole story.Let’s use Breckenridge as an example. In 2012, a total of 552 improved residential properties sold (land and commercial excluded). Today there are 457 properties on the market. Using these two facts and assuming no more properties come on the market, in theory, there is a total of 10 months of inventory. So, to find a great deal, have your Realtor search for a segment of the market that has several years of inventory. You will see what I mean in the example below.
Simply put, people who have owned a property for a very long time probably have a small loan, or no loan at all, on the property, which means they have a bucket load of equity. Of course this is not always true. As we know, one of the major reasons our country got into such an economic mess was people taking out extra loans against their properties back when prices were sky-rocketing year-over-year. When a loan is granted, initially the documents are recorded at the clerk and recorder’s office in Breckenridge. In other words, these documents are of public record. Armed with this information and the year the property was purchased, your Realtor can make an educated guess regarding the equity a seller might have.
Liftside Condos are studio condos at the base of the ski lifts in Breckenridge that were built in 1984. Right now this complex has two years of inventory on the market. So that covers number one. In this complex, there are way, way more sellers than buyers. Exactly what you want.I have studied the records for the eight Liftside Condos on the market and it appears there is one seller with a huge amount of equity. This seller can make the choice to accept a low price without losing money. Bingo – this property matches both of the criteria for Secret #13. So there you have it; a great deal wanting to be snapped up. Call me for more info.Love life, DanielReach Daniel Webster Johnson at (970) 393-3300 or him drop him a line at Daniel@YourMountainBroker.com. He is a very active, full-time Realtor in Breckenridge, who has earned the national Quality Service Certified Platinum award, recognition of 100 percent client satisfaction. He is one of the team at Resort Brokers Real Estate located at 100 S Main St, Breckenridge.