When purchasing a property that you may or may not live in full time, there are many considerations as to the type of property that might work for you. For example, as an absentee owner, a condo or townhome might work better for you because there is an onsite manager of the property that makes sure the day to day maintenance is taken care of. And if you are a full time owner, you may elect to take care of maintenance.
Our largest unknown expense is snow removal. Snow removal in the drive way so you can get in and out of the property; from all decks so they don’t collapse and cause additional exterior damage and off of the roof so it does not cave in and cause water damage. Snow removal varies every year because we never know how much it will snow and how long it will stick around.
So either way you go, single family home or condo/townhome, you will have monthly expenses for the care and maintenance of the property. Here is a list of expenses that come up in a winter resort type of community:
- Snow Removal-driveway, sidewalks, roof
- Trash Removal
- Exterior Building Insurance (Condo/Townhomes)
- Homeowners Insurance (Single Family Home)
- Renters Insurance (Condo/Townhomes)
- Common Area Insurance (Condo/Townhomes)
- Managers Monthly Fee
- Common Area Maintenance (Condo/Townhomes)
- Water & Sewer
- Common Area Electric (Condo/Townhomes)
- Cable or Wireless TV, Internet
Following are answers to questions about the buying process:
How do we start the buying process?
In our initial meeting, I will want to discuss with you what your goals are for owning a property; will this be your primary home, 2nd home or investment property? Will you be looking to short term or long term the property? How many bedrooms and bathrooms will you need? Would you like a garage? What area of Gunnison County will you be most interested in; Gunnison or Crested Butte or Mt. Crested Butte? What features would you like to include in a property; ski in/ski out, fishing, hunting, new construction, slab granite countertops, tiled floors? What price range would you like to stay within? Have you been pre-qualified for a specific price range?
How long does it take to find a property?
The more specific you can be with your wish list of features and beds and baths, the closer I can get to locating the right property for you and the less time we spend driving around looking at the properties that will not be a fit. So clear communication in preferences is helpful. And I do realize they may change as we preview properties so it is important to communicate updated preferences as we move forward.
What if we live out of town?
With the current technology available, we can stay in touch a number of different ways. Some of them include an auto-email notification option where you receive information on new properties that come on the market as well as properties that have had a price adjustment. Another option is for me to send you my Keller Williams App so you can search from properties from your mobile device at any time. And if you happen to be searching for property on any other websites, please call me for current and actual information as some of these websites may have outdated information.
Is there anything I can do to prepare to make an offer on a property?
Yes! It is wise to go to a mortgage lender and find out how much mortgage you can afford. This is where you obtain a letter called a “pre-qualification” letter which will identify how much you can spend on a property. Residential mortgages are different than vacant land mortgages, so make sure the lender knows what kind of property you are going after so they can advise you accordingly. Initially, your local bank could do this pre-qualification process for you or you can go directly to the mortgage company you plan on using. A pre-qualification letter then accompanies an offer which will in turn let the Seller know that you can qualify to purchase their property. When it comes time to apply for a mortgage, I suggest that you shop around for the best terms for a mortgage for you.
How do I move forward with an offer on the property of my dreams?
The very first document I will ask you to sign is the Definition of Brokerage Relationships that are available in Colorado. This will be a document between us that identifies to the public how you have asked me to represent you in the transaction. Below is a description of each Brokerage Relationship:
Seller’s Agent: A Seller’s Agent works solely on behalf of the Seller to promote the interests of the Seller with the utmost good faith, loyalty and fidelity. The Agent negotiates on behalf of the acts as an advocate for the Seller. The Seller’s Agent must disclose to potential Buyers all adverse material facts actually know by the Seller’s Agent about the property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the Seller.
Buyer’s Agent: A Buyer’s Agent works solely on behalf of the Buyer to promote the interests of the Buyer with the utmost good faith, loyalty and fidelity. The Agent negotiates on behalf of and acts as an advocate for the Buyer. The Buyer’s Agent must disclose to potential Sellers all adverse material facts actually known by the Buyer’s Agent, including the Buyer’s financial ability to perform the terms of the transaction and, if a residential property, whether the Buyer intends to occupy the property. A separate written Buyer Agency agreement is required which sets forth the duties and obligations of the broker and the Buyer.
Transaction-Broker: A Transaction Broker assists the Buyer or Seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties presenting all offers and assisting the parties with any contracts, including the closing of the transaction, without being an Agent or advocate for any of the parties. A Transaction-Broker must use reasonable skill and care in the performance of any oral or written agreement, and must make the same disclosures as Agents about all adverse material facts actually known by the Transaction-Broker concerning a property or a Buyer’s financial ability to perform the terms of a transaction and, if a residential property, whether the Buyer intends to occupy the property. No written agreement is required.
Customer: A Customer is a party to a real estate transaction with whom the Broker/Agent has no brokerage relationship because such party has not engaged or employed the Broker/Agent, either as the party’s Agent or as the party’s Transaction-Broker.
After you have decided how you would like me to represent you, we can begin to prepare a “Contract to Buy and Sell” real estate which will include the price and terms we are offering to the Seller. I will assist you in meeting the dates and deadlines of the contract as well as provide contact information for other professionals that can help with inspections and reports.
Upon agreement and an executed contract between Buyer and Seller, the Buyer will provide an Earnest Money deposit to the Title Company that the Seller has enlisted to complete the transaction on behalf of the Buyer and Seller. The title company will hold the Earnest Money until the due-diligence process is completed and the transaction closes. The Earnest Money is usually applied towards the purchase price of the property at closing.
What do you mean by “Due Diligence”?
Due Diligence is referred to as the Buyers time period to review documents related to the property such as the Title Documents, Homeowners Association Documena subdivision or condo/townhome complex), Loan Documents and time to have the property appraised and inspected. I will be with you every step of the way and will stay on top of contract deadlines and resolutions.
Do I really need to get a Home Inspection?
I highly recommend a Home Inspection as the Inspector is your eyes and ears to what the condition of the home is in. They are able to see things that you and I do not see and are therefore worth the time and money. I even recommend a Home Inspection on a new home.