Real Estate Information

Editor’s note:

Last week’s “Market Insights” was titled Memories not for sale and was the first in a series of articles about the impact emotions play in residential sales. To read the article, go to summitdaily.com and search for “Market Insights.”

Here are true Summit County stories:

The $1,000,000+ sale that terminated over a $5,000 hot tub.

The condo sale that came to a standstill because a stove thermostat measured 350° when the temperature was measured by the inspector at 330°.

The $250,000 vacant lot that did not sell because the seller would not pay a few hundred bucks for a survey.

None is logical.  All decisions were driven by emotion.  Want even more bizarre examples?  Read the article titled Negotiating with Emotion in the Jan/Feb 2013 issue of The Harvard Business Review.

Your emotions are a great thing and something to nurture, unless they get in the way of sound judgment and smite a sale. Last week I talked about how some sellers think buyers will pay a higher price because of the seller’s memories.  Crazy but true.  This week’s Market Insight advice is for buyers and sellers: Keep your emotions out of your negotiations.

Over and over again, over the past decade, I have said to clients, “Remember to focus on what you want, not what you are feeling about the other party.”  In the midst of negotiations, the other party can seem completely unreasonable.  Two years ago I had a seller say to me, “I hate these buyers so much I would rather sell to anyone else at a lower price than have my home occupied by these people.” I promise you this is true.  I could not make a statement like this up.  You don’t need the details. 

Beware: emotions cause buyers to pay too much and seller to accept too little.

And it doesn’t have to happen.  Here are my three rules that will ensure you stay logical.

1. Focus on the facts.  Use the data of comparables that have sold to guide your pricing decisions.
2. Concentrate on your goal.  The goal is to make the sale; not to punish someone you have never met.
3.  Sleep on it.  Rushed decisions are usually bad decisions that can be laden with emotion.

The home in these photos at 24 Lacy Drive, Silverthorne, that just came on the market, is owned by a seller who is following these rules.  The asking price of $599,000 for a 3- bedroom home with these views and finishes, plus a two-car garage, is based on the current market, not the seller’s emotions.

See you next week. Love life, Daniel

Reach 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.

What is the most important aspect of a real estate sale?

Price?  Nope.  Staging?  Nope.   The market?  Nope.

Emotions. 

As a full-time Realtor devoted only to selling in Summit County, every year I become even more convinced I am first and foremost in the business of managing buyer/seller emotions. In upcoming weeks, in these Market Insights articles, I will delve into various emotional aspects which impact real estate transactions.  This week, the focus is on memories - that emotional attachment which clouds the judgment of people selling their beloved home (primary or second home).

Sellers tend to fall in love with their properties.  It’s normal.  The longer you own a home, the more memories you create there and the more you make the property your own.  While I am interviewing a prospective seller, I hear it in statements such as, “Honey, remember when our baby got married on the back deck?” or “We have had many wonderful winter nights snuggled up in front of this fireplace.” or “Remember when we found this antique light fixture on our trip to New England?’’  I smile, I listen and I shut up.

After the tour is over I say, “This is your home.  The moment you sign this listing  agreement, however, I will be selling a product, a house that will be turned into someone else’s home.“ Ouch can be the reaction.  “Daniel, you mean to say our treasured home is nothing more than a product - just something to be sold?” Harsh as it might sound (remember I am famous for being brutally honest), there is just one answer: “Yes.”

Probably the most frequent mistake sellers make is pricing their property too high with the justification that somewhere out there is a buyer who loves their home as much as they do.  My wife and I did it.  Last summer, it was time for us to downsize.  We put the family home we built and raised our four kids in on the market for way too high a price.  Thank goodness my colleagues, my fellow professional Realtors, were honest with me.  They made it clear that buyers won’t love the home as much as we do.  Within 24 hours of being on the market, due to this feedback, we dropped the price nearly 10%.  Yes, we had convinced ourselves our memories were worth a bucket load of money.

And these photos are the proof.  What do you see?  Memories, or a house for sale?  Point made.

See you next week. Love life, Daniel

Reach 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.

No.

OK, it is an itsy-bitsy teenie-weenie bit helpful. 

[Editor’s note: If, when you read that statement, your mind kept going and sang, “An itsy- bitsy teenie-weenie yellow polka dot bikini” - you’re old, like Daniel old, as that song was a top-ten hit single in 1960.]

This point is a game-changer for lots of buyers.  Do not focus on the price-per-square- foot of a property.  It is nothing more than a very broad gauge of value.  That’s it.  Not much sends me around the bend more than buyers who, thinking they are getting a deal, say, “Based on my homework, I will not pay more than $312.50/square-foot.”  This sort of thinking is not actually the buyer’s fault.  We, the Realtors, are to blame also.

Years ago, the real estate industry started to publish the price-per-square-foot every place.  As a matter of fact, when you look at a “detail view” provided by the Summit Association of Realtors, right at the top in the center, next to the price, we see “List Price PerSqFt.” Being front and center grabs your attention.  Before the buyer knows it, they start comparing properties based on this one gauge only.  Here are the five reasons to eliminate the “price-per-square-foot mentality”.

Properties aren’t always what they first appear to be.

Based on the price-per-square-foot, a client brought to my attention a single-family home.  This house really looked like a bargain. The price-per-square-foot screamed, cheap, cheap. The only problem was the property had two bedrooms and my client wanted three. Not a problem said the advertising, which read, “Easy to convert that into third bedroom.”  The issue was underground. The leach field for the septic system was only adequate for two bedrooms.  The cost to expand the leach field all of a sudden made this home expensive.

Not all square footage is created equal.

The same client found another house that, based on the price-per-square-foot, should have sold the day it was placed on the market, as it appeared to be the best price I had seen in years and years; however, it had been sitting on the market for a couple of months.  It was too good to be true.  The issue in this case was also underground, yet inside the house.  The house had a “bedroom and bathroom” below grade without any windows, no ventilation and no egress.  And this, in my humble option, storage area with carpet, was included in the living square footage.  When asked, the seller said, “Over the years our guests enjoyed sleeping there.”  Wonderful, but that doesn’t make it real.

There are numerous valid methods to measure square footage.

This is the reason that in the State of Colorado, we have the “Square Footage Disclosure” that is signed by all parties to every transaction.  Recently I represented the seller of a multimillion dollar home.  It was appraised twice.  Each appraiser came up with a different size.  One was higher and the other lower than the County tax records.  Which measurement was correct?  All of them.

Usually bedrooms and bathroom are more important.

This is best illustrated by 120 Marks Lane in The Highlands in Breckenridge.  This home has 6 bedrooms and 4.5 bathrooms at a price of $999,000.  All the other homes in the same neighborhood and price range have just three or four bedrooms.  The difference?  A great design with an efficient use of space.  As you can see, this home still has a large Great Room, and comfortably sleeps over 20 people.  That makes a comfortable home for family gatherings.  That is more important than price-per-square-foot.

See you next week. Love life, Daniel

Reach 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 Street, Breckenridge.

Buy and hold.  Three words - that’s it.

Most columnists have a set number of words they are required to provide each week.  In the case of the Market Insight column, the Summit Daily News Editor wants more than three words.  So I made it four words.  The expanded version of the article was “Buy now and hold,” however, that was rejected as too short.

So here I am, dictating into my computer, trying to figure out how to make this advise longer.  Maybe the editor will accept an eight-word article, “Buy now and hold for a few years.”  OK, still too short, darn it.  So here are three reasons to support, “Buy and hold.”

1. National housing outlook positive.

There is no need for me to provide you with the data in this regard.  You have been seeing this all across the country and in the media.  What I can tell you is that at a recent international real estate conference that I attended, the consensus of a panel of economists was that due to low inventory, low housing construction in recent years and pent-up buyer demand, that over the next ten years we can expect prices to go up around 40% or +/-3% a year, which is in line with past average appreciation.

2. Prices in Summit County have plummeted since the peak.

The economists mentioned above stated that nationally prices have fallen 33%.  I don’t know about that; however, here is what I have seen in Summit County:

Minimum drop in prices 20%. 
Typical drop in prices 25%.
Very common drop in prices 30%.
The largest drop in prices 40%+.

In other words, everything is on sale right now.  No matter what you buy, you are getting a deal. The lot shown in this photo located in the Highlands in Breckenridge is for sale right now and is a perfect example.  Here is the history of the sale price:

2000 – sold for $360,000.
2007 – sold for $495,000.
2013 – on sale for $349,000 (30% below the peak).

    Photo Credits, Bob Bloch.

See what I mean?  All you need to do is buy, as examples like this are a genuine bargain.

3. Summit County price appreciation lags the rest of the nation.

I learned this from a mentor, Bob Girvin.  Bob is a Breckenridge icon and a great Realtor® at Coldwell Banker in Breckenridge. He made his first real estate sale in Summit County in 1972 and is still a very active Realtor. Bob has experienced three market slumps.  The first started just after he arrived in 1973 and lasted four years.  The next one started in 1981 and dragged on for seven years.  And, of course, the current one that started here in 2008 (two years after the rest of the nation).  Here is what Bob says: “I have learned our market is like fly fishing. The overall economy is the rod and our tiny little market is the fly on the end of the line. When the rod is moving back, the fly is still way out in front of the fisherman. All of a sudden the rod snaps forward; however, at that stage the fly is still heading back. Based on my experience, our market lags the rest of the country going into and coming out of real estate slumps.” 

To sum it up, buy.

See you next week. Love life, Daniel

Reach 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.

Editor’s note: For years Daniel has provided our readers with extremely valuable insights for both buyers and sellers.  To read past articles, go to www.summitdaily.com and search “market insights.”

Over the past six months, the number of inquires from buyers has been on the increase. Of course this is good news for both buyers and sellers.  As a Realtor, one of the most important actions I can take is to listen.  I was told we have two ears and one mouth for a reason.  This is a summary of what the buyers are telling me.

“We have waited long enough.”

Especially the baby boomers feel like they are running out of time.  For the past four or five years, they have been waiting and watching the market from afar as prices declined.  This quote from clients in Chicago sums it up, “We are tired of postponing buying our dream retirement home.   If we keep waiting, we will end up too old to enjoy it.”

Yes, the wave of baby boomers hitting retirement is here. At 57, I speak from experience when I say we are an impatience bunch.  We are determined to get what we want and we have worked very hard to get it.  For us, the waiting is over.

“Interest rates are crazy low.”

From the 38 year-old, first-home buyer to the 62 year-old retirement purchaser, I hear the statement above.  There is only one thing that varies.  The majority tells me rates will never be this low again and they are climbing.  A minority believes rates will stay at historic lows for a couple more years.  Either way, money is cheap.

And everyone I work with gets loans.  The buyers in Summit County seem to be very qualified and able to provide the 3.5 tons of paperwork the lenders request these days.

“Prices are low enough.”

Please re-read the statement above.  The emphasis is on “low enough.”  In other words, the buyers are not telling me prices have hit rock bottom.  Nor do they seem to care.  What they believe is prices are not likely to decline much more.  They plan to hold the property for years, so a bit more decline in prices does not worry them.

This is a gigantic shift in buyer thinking.  Until recently, the attitude has been much more, “I’ll sit on the sidelines to see what happens.”

“We love the value we are seeing.”

The value is obvious it two ways:

1. The direct comparison with what properties sold for at the peak of the market.

2. As compared to other major ski resort towns right across the country.

An example of Number 1 above is illustrated in these photos.  This two-bedroom Breckenridge condo is on the market for $204,950.  Based on the peak sales in 2008, this condo would have sold back then for $325,000!  Yes, there is great value to be had in Summit County real estate right now.

I hear the second point above often.  Buyers tell me that for the price of a condo near the ski slopes in Vail, they can buy a larger single-family home here right on the slopes.  There seems to be a shift taking place with buyers.  Those who used to buy in Vail because it is “Vail” are now coming to Breckenridge because value is more important than status.

See you next week. Love life, Daniel

Reach 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.

Editor’s note: For years Daniel has provided our readers with extremely valuable insights for both buyers and seller.  To read past articles, go to www.summitdaily.com and search “market insights.”

Realtors hear these sorts of statements from sellers all day long:

“Buyers want to feel they are getting a deal.”

“We have to leave lots of room in our price for negotiations.”

“We are willing to lower the price; however, let’s start at an extra-high price.”

Heck, if you have sold before, I’ll bet you have even said something similar.  We, the Realtors, agree these statements contain a little logic.

Merriam-Webster dictionary defines “wiggle room” as leeway, latitude, “a contract with wiggle room for further negotiations.” I like it. The question is: What is the right amount of wiggle room?  Let’s imagine three photocopier salespeople come to your office.  The first two offer you prices that are very similar and very close to what you think the machine is worth.  The third salesperson tells you about five extra buzzers/whistles that you will never use and asks 20% more than other two for basically the same machine.  What would you do? How about I answer with what I have done.  I have chosen to do business with one of the first two. Isn’t that what you would do?

Real estate and photocopiers have a lot in common. When you boil it down, all photocopiers provide the same basic function, yet each model and each brand is different. Some of those differences are worth paying more for, others are not.  When it comes to real estate, studio condos in the Liftside complex in Breckenridge illustrate this point.  The floor plans are the same.  What varies are the views and the renovations.  There is a condo in the complex that has been on the market for 601 days.  It is priced at 23.64% higher than the last sale.  Unmistakably too much wiggle room.

The right amount of wiggle room is a little or just enough not to scare away buyers.  The asking price needs to display value and show you are someone with whom the buyer wants to do business - think of that third photocopier salesperson.  To determine the right amount of wiggle room, all you need to know is the market value of the property and how buyers are behaving in the current market.  The people with the answers are Realtors and appraisers who are day-in and day-out involved in transactions.  In other words, work with a full-time and experienced Realtor whom you trust.

The ideal amount of wiggle room
OK, you still want a magic number, an exact percentage.  The answer is the sale of 506 Forest Hills Drive, Breckenridge, shown in these photos.  The asking price was $699,000, there were no price reductions and it sold in less than a month for $675,000.  Like the photos?  There are more great properties out there, just ask.

Love life, Daniel

Reach 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.

Editor’s note: Last week Daniel provided you with data showing that distressed properties are on the decline.  To read the article, go to 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.

#1 – Look for market segments with over a year of inventory

All real estate is local.  This past week, I was at a conference in Vegas for the top 4% of USA 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.

#2 – Search for sellers with lots of equity

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.

Example: Liftside Condos in Breckenridge

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, Daniel

Reach 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.

Editor’s note: For the purpose of this article, “distressed property” refers to any property (excluding timeshares) that is in some stage of the foreclosure process, including ‘short sales,’ or has become bank-owned. NED refers the Notice of Election and Demand, the first step banks are required to take in the foreclosure process.

“It appears the bunk of the foreclosures are behind us.” says Maggie Dew of Stewart Title, the authority on distressed properties in Summit County.  Maggie has been to more public trustee auctions than anyone (county employees excluded). In addition to attending the sales each Friday, she tracks every single distressed property.

I have been fortunate over the past few years to team up with Maggie to provide you with the data of what has happened and to predict, with amazing accuracy, what will happen next.  Distressed properties hit Summit County like a wave.  Here is Maggie’s data…

2010 - The wave arrives
356 – properties receive their NED.
104 – properties foreclosed.

2011 – The wave crests
316 – properties receive their NED.
145 – properties foreclosed.

2012 – The wave wanes
268 – properties receive their NED.
87 –  properties foreclosed.

2013 – Maggie’s predictions
150? - properties likely to receive their NED.
50 to 75 – properties likely to be foreclosed.

More interesting facts
31,000 – the number of residential properties in Summit County.
0.28% - the percent of homes foreclosed on in 2012.
92% - the percent of properties purchased at the public trustee auction by the lien holder.

What great news!
Above are the facts.  No fudge factor, no baloney, just the truth.  And any way you look at it, the truth is really great news for our County.

Rare example.
The numbers are clear. There are few distressed properties available and we can expect to see even fewer.  Right now, 76 Buffalo Terrace, located in The Highlands in Breckenridge, appears to be probably the best value short-sale in Summit County at the bank-approved asking price of $839,100.  Let me know what you think of the photos.

Love life, Daniel

Daniel Webster Johnson completed the Certified Distressed Property Expert training in 2009.  He has conduced dozens of distressed property sales & is a Broker Associate at Resort Brokers Real Estate in Breckenridge.  Contact him at (970) 393-3300 and/or Daniel@YourMountainBroker.com

I read about various subjects that make me a better Realtor, and one of my favorites is the research economists conduct.  Have you heard of the ultimatum game, a stylized representation of negotiation, first used in experiments in 1982?   Since then, this experience has been conducted in at least 12 countries on five continents with people from a wide spectrum of cultures.  For the purpose of this article, I will only discuss results from experiments in industrialized, western countries.

The Game

The economists give two people a sum of money to divide between themselves. The first player, the proposer, proposes how to divide the money, and the second player, the responder, can either accept or reject this proposal. If the second player rejects, neither player receives anything. If the second player accepts, the money is split according to the proposal. The game is played only once so that reciprocation is not an issue.

The Results

Because this research has such a direct correlation to negotiating residential real estate contracts, I have read several papers on the topic.  Here is a simplified overview of the results:

1. Proposers tend to offer a 50/50 split, in which case the responder accepts and the money is divided between the players.
2. When the proposer’s offer an unfair spilt, only about 50% of the time does the ‘responder’ accept.
3. Researchers hypothesized that anger is what leads the responders to sacrificing getting any money. The responders would rather punish the proposer for making an unfair deal.

Bingo. The ultimatum game is a direct reflection of the real life of negotiating residential transactions in Summit County, at least as I have experienced it.  Both buyers and sellers underestimate the influence emotions have on negotiations.  In the real world, although the rules are a little bit different, “the proposer” is the buyer and “the responder” is the seller. Here is a simplified summary of my conclusions regarding buyers and sellers:

1. Both parties want to feel they have been treated fairly.
2. If either party feels they have been taken advantage of, it is highly unlikely the negotiations will conclude in a sale.
3. In addition to being professionals in the transfer of real estate, Realtors are also counselors managing emotions to obtain the best result for their client.

Frisco condo for sale

The example this week came to mind immediately. This 2 bedroom home with an attached two car garage close to Main Street, Frisco, priced at $363,900, would have been sold rather than being on the market today if not for a lack of the sellers feeling they had been treated fairly when an offer was submitted just before Thanksgiving.  To make a long story short, we had, as they say in real estate school, a willing buyer and a willing seller.  However, in the process of the negotiations, the proposer (a buyer from the front range) did not offer anything close to a 50/50 spilt, which upset the responder (a long term local resident), and the talks terminated.  I am confident had the parties felt good about, and trusted each other, the result would have been a sale.

I look forward to connecting with you next Saturday. Love life, DWJ

For more information contact 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.

In addition to being famous for my brutal honesty, I am also well known for reporting the realities of the market to allow you to make your own conclusions on where the real estate market is heading.  The following information comes from my analysis of data provided by the Summit Association of Realtors, and some ‘gut feeling.’  In a previous life, I owned a market research firm which taught me the importance of that ‘gut feeling.’

Overall Realtors are happy

I speak with dozens and dozens of my colleagues, other Summit County Realtors, on a frequent basis.  Here is a quick summary of what they are saying:

• 2012, for many, was their year since 2008.
• It is great to see extremely expensive homes selling again.
• We can expect to see an increase of new custom homes being built in 2013.
• Obtaining loans was not much of a hurdle in 2012.
• There is a positive vibe in the marketplace.
• Rather than sitting on the fence, buyers are going under contract.

What buyers & Sellers are saying makes me smile

My clients are cautiously optimistic.  The buyers, overall, are telling me they feel it is a good time to be buying.  Over the last few months, I have spoken with many buyers who have been sitting on the sidelines waiting for years.  They are telling me it’s time to get serious about buying.  On the flip side of the coin, sellers seem ready to sell.  Those who have been thinking they would be able to sell for the same prices as in 2007/08 have come to realize that is not going to happen in 2013.  They have become comfortable with the fact that prices have dropped significantly since the peak.  Overall, we have had some prices drop 20 to 30% since the real estate bubble burst.

Yes, the above comments from clients make me smile.  Every market needs willing buyers and willing sellers. That’s what we have right now in Summit County.

Three indicators for 2013

Being that I am based in Breckenridge, the data below is specific to Breckenridge, yet reflects the county overall:

• Sales volume was up 7% in 2012 over 2011.
• # of properties on the market the last week of 2012 is down 14% compared to 2011.
• Prices have been more or less the same for all of 2012.

And personally, thank you to my loyal client base. I represented the sale of nearly twice as many properties in 2012 compared to 2011.  

If the above trends continue, it will be very good for the market in 2013. 

Properties priced below current cost of construction

With an increase in custom home construction comes an increasing in construction prices.  All over the county, we are seeing top-quality homes selling at below- replacement costs.  One darn good example is the home shown in these photos.  This beautifully-constructed property located at 254 Lake Edge Drive, right on the golf course in Breckenridge, could not be constructed today for the asking price of  $2,999,999.

Make it a vibrant 2013. Love life, DWJ

For more information contact 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.