How to Avoid HOA Assessments

More often than not in Summit County a property will be part of a Home Owners Association.  In addition to dues that are typically paid on a monthly basis, (sometimes quarterly or even annually) an HOA may issue special assessments to all owners in order to cover costs that the HOA cannot afford.  Special assessments are typically for major maintenance projects or for unforeseen and expensive damage that requires repair.

When purchasing a property that is part of an HOA, it is imperative that a buyer review all of the HOA documents including current and past financial reports.  If the HOA has very limited funds in there operating account and limited or no funds in their reserve account this is a huge red flag.  An HOA with no money in reserve is unlikely to have any option but to issue special assessments, if and when unforeseen expenses occur.

It is also important to review past HOA board meeting minutes.  If a HOA has a long history of issuing special assessments, you can expect the habit to continue into the future.  However, if the HOA has a healthy reserve, a well budgeted operating account and no history of special assessments it is very unlikely that there will be special assessments in the near future.

Lastly, it is crucial that you understand your rights as a buyer.  If for any reason you are not satisfied with the condition of the HOA, you have the right to object (prior to the Association Documents Objection Deadline) and get out of the purchase contract without being in default.

As always, if you have questions about this or anything else pertaining to Summit County Real Estate, you can contact me anytime at the information below.

All the best,

Tyler MacGuire  e-PRO®, SFR

Broker Associate

Omni Real Estate Company

Office: 970-468-2740

Mobile: 970-409-7779    

Web: www.tylermacguire.com

       

“Your Guide to Summit County Real Estate”

Why You Shouldn’t Buy a Foreclosure

More and more these days I am meeting with buyers who want to buy a foreclosure…or at least think they do.  Although there are good deals to be had, not only are they few and far between but, the risk and complications involved in the purchase of a foreclosure are often not worth it.  Here are the three biggest reasons you should not buy a foreclosure.

1.)    You typically will not have the opportunity to see the interior of the home or have any inspections done.  The property could be a complete disaster inside and cost a fortune to repair.

2.)    You will be expected to pay cash (no loans).  The Summit County Public Trustee will require you to have good funds or the ability to wire transfer the full amount into their bank account within two hours of the auction. 

3.)    Rarely is anyone buying homes in Summit County at auction.  A home that is not purchased on the court house steps will then go back to the bank and eventually be listed for sale as an REO (AKA Bank Owned property).  In 2011 REO properties that sold, sold for 16%-42% less than what the opening bid at auction was.  Furthermore, when purchasing an REO property you have the opportunity to see the interior of the property, have inspections done and get a loan to purchase the home.

If you would like more information on how to invest in distressed properties including Summit County short sales, REO’s and yes even foreclosures, feel free to contact me anytime at the information below.

All the best,

Tyler MacGuire  e-PRO®, SFR

Broker Associate

Omni Real Estate Company

Office: 970-468-2740

Mobile: 970-409-7779    

Web: www.tylermacguire.com

       

“Your Guide to Summit County Real Estate”

2011 Recap and 2012 Outlook

2011 was an interesting year for Summit County Real Estate and there is a lot of reason to believe we are at a turning point heading into 2012.  In the last year we had 1,122 transactions close up from 1,011 in 2010.  Furthermore, the average sales price in 2011 was $509,883 down from 2010’s average of $566,325.  However, lower pricing and a growing number of transactions are not the only reasons to suggest change is upon us.

2011 did see an increase in properties that were foreclosed upon with 145 public trustee sales up from 104 in 2010.  However, Notices of Election and Demand (these start the foreclosure process) fell from 350 in 2010 to 316 in 2011.  This would suggest we may see fewer properties foreclosed upon in 2012 than we did in 2011.  Furthermore, LPS Applied Analytics, which collects data on nearly 40 million mortgage loans, has ranked Colorado close to the bottom of the foreclosure crisis.  LPS has ranked states by the time it would take to clear the supply of homes in foreclosure or have seriously delinquent mortgages at the current rate:  Colorado is ranked at 2 years for a foreclosure pipeline.  Just for the sake of comparison, the state of New York and Washington DC are at 57 years while national average is 8-10 years.   

                 

Looking forward to 2012 there are currently 1,195 residential listings which based on the numbers above is about a one year inventory.  Not bad at all compared to some of the harder hit real estate markets.  Furthermore, the average asking price of all current listings is $729,287.  If these listings sell for an average of 93.5% of there asking price (this is what we saw in 2011) the average sales price in 2012 will rise to $691,883!!!

As always, if you have questions about any of this or would like to schedule an appointment to discuss your 2012 Real Estate goals, please feel free to contact me at any of the information below.

All the best,

Tyler MacGuire  e-PRO®, SFR

Broker Associate

Omni Real Estate Company

Office: 970-468-2740

Mobile: 970-409-7779    

Web: www.tylermacguire.com

          

“Your Guide to Summit County Real Estate”

8 Reasons to Buy in Wildernest (Silverthorne, CO)

1.)  Views:  Depending on your location, Wildernest homes can offer views of Lake Dillon, Buffalo Mountain, Red Mountain, the Ten Mile Range, Tenderfoot Mountain, Ptarmigan Mountain and the Continental Divide.

2.)  Wildlife:  Wildlife is plentiful in Wildernest and residents are accustom to seeing Foxes, Dear and Moose sometimes just by looking out there window.

3.)  Reasonable HOA’s:  HOA dues are often only a fraction of those found in nearby Keystone and some of which offer amenities including; club houses, pools, Racquet Ball Courts, hot tubs, saunas and game rooms.

4.)  Recreation:  From any home in Wildernest you can walk to trail heads that offer endless hiking, biking, cross country skiing, back packing and mountain climbing.

5.)  Location:  Homes in Wildernest can be as close as one and half miles to the Silverthorne exit on I 70.  This means you are strategically located within 20 minutes of 5 different ski areas.  Skiing not your thing??  No problem, the Silverthorne Outlets are just minutes away as well as two of Summit County’s best breweries and the Silverthorne Recreation Center!

6.)  Affordability:  Currently there are Wildernest Condos offered for as low as $115,000 and two bedroom units for as little as $128,500!!!  Furthermore, the price per square foot can be as low as $160 making Wildernest one of the best deals in Summit County Real Estate..

7.)  Options:  There are currently 59 properties for sale in Wildernest.  These range in price from as low $115,000 to well over $500,000.  Furthermore, there are properties ranging from studios to five bedrooms as well as many homes over 2,000 square feet.

8.)  Rentals:  When you are not using your Wildernest home it can be rented through local property management companies to help offset your expenses.  Wildernest properties offer everything a renter could want including, location, recreation, amenities, views and all of which is right on the bus route.

If you would like to learn more or schedule an appointment to see all that Wildernest has to offer, you can contact me anytime at the information below.

All the best,

Tyler MacGuire  e-PRO®, SFR

Broker Associate

Omni Real Estate Company

Office: 970-468-2740

Mobile: 970-409-7779    

Web: www.tylermacguire.com

          

“Your Guide to Summit County Real Estate”