Market Insights: Guaranteed resale
I ask you, isn’t a guarantee of resale what every buyer of real estate wants? One of the issues with investing in real estate is that is it is not considered as liquid as investing in the stock market. True. This article provides an insight into the top three factors that tend to drive resort purchases.
The real estate that is the easiest to resell are the properties in the highest demand. We have all ‘heard location, location, location’. In resort communities demand is driven by ‘views, location, quality.’
Views: From years of working with buyers of resort real estate I can tell you with the utmost confidence the first criteria for most buyers are views. Buyers walk into the office and before we get in the car I listen to what they want and need out of their purchase. Second home owners want to feel they are in the Colorado Rockies. And the best way to do that is with a view.
Location: Next comes the location of the property. This is very personal for each buyer. Those that want the highest possible rental income will, in general, select ski in/out locations. Others want tranquility so will select a location usually a couple of miles out of town near the end of a road. In this market the ‘best location’ is not one location hence the reason location is just one of the factors.
Quality: For second home buyers (about 88 percent of the market) they want few hassles with their property. These people are, in most cases, not buying the ‘handyman fixer-upper’ properties. Sure some do. Most want their new property to be in great shape with few if any upcoming maintenance issues.
And one more, Price: In the current market price is a very critical component of resale. Stocks have liquidity that real estate doesn’t. Why? When I have sold stocks I have said, “Sell those stocks,” and the market takes care of the rest with the buyers setting the price. If I say to my stock broker, “Only sell my stock at 30 percent above the current market value,” what would happen? The stocks would not sell. The same holds true for real estate. If you say to me, “Sell my property at the current fair market value,” I can just about guarantee your property will be sold within three months.
The vacant residential lot in the Goldenview area of Breckenridge is an example of all four of these factors. As the photo shows it has views; it is located on a paved road a couple of miles from Breckenridge in a quiet, high quality subdivision near the end of the road; it is very easy to build upon and finally the price has just been dropped to $269,000.
Daniel Webster Johnson is a broker
associate at Resort Brokers Real Estate. He can be reached at (970) 393-3300 and daniel@YourMountainBroker.com.
*Data obtained from the Summit
Association of Realtors.
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