Editor’s note: Over the next several months, The Courier will be reporting on the real estate market in Teller County. This is the first in a series.
A roller-coaster ride with all the ups and downs, the real estate market in Teller County is not for the faint of heart.
“You have to be quick; everything happens so fast,” said Bernie Vayle, broker/owner of Coldwell Banker 1st Choice Realty.
A chat with Vayle and other area Realtors, who have more than 100 years of collective experience, provides a snapshot of the local market. Each attributes the current seemingly mad dash to homeownership to the pent-up demand generated the pandemic.
“In our local market people are wanting to get farther out and have more elbow room,” Vayle said.
As a gauge of market fluctuations, a year ago in April the average sale price of a home in the county was $408,000; a year later, it’s $493,000.
In a time of a line-up of buyers, Vayle recently fielded 12 offers on a home in Woodland West. “I have a spreadsheet to go over all of these contracts; it’s tricky,” she said.
For potential buyers who use a local lender, the pathway to purchase is smoother. “If the buyer uses an online lender, for instance, who may be on the East Coast, you can’t walk in and hand them your bank statements or try to resolve a problem,” she said. “A good local lender is critical.”
Buyers can’t always call the shots in this market. “Buyers have to be flexible on the closing date,” Vayle said.
In this desperation market, buyers are offering the seller incentives such as “free” rent to allow time for their relocation. “That used to be very uncommon,” Vayle said.
While the home buyers come from all over, some of Vayle’s clients who are selling are moving to the South. “It’s more affordable there,” she said. “But there’s a mixture and no definite trend.”
Among Vayle’s buyers are those looking for second homes for investment while others plan to use the home as a VRBO, Vacation Rentals by Owner. “Those buyers are in the $350,000 range, the lower end of the market,” she said.
Selling on contingency is no longer an option. “If they make an offer on a property when they have a house to sell, they don’t stand a chance because of that contingency” she said.
Vayle advises her clients to sell their homes first and then find a temporary place to live until they can buy a home.
Potential buyers must be pre-approved for the home loan to have a chance at getting the home they want. “And don’t ask for anything special, and be ready to waive the inspection,” she said. “But we don’t encourage that.”
Another trend is that buyers are offering to plug, with cash, the gap between the list price and a lower appraisal. “Sellers love that but appraisals are iffy,” Vayle said. “You can’t exhale until it comes in.”
Education is key to providing buyers with current information. “They may end up having to see multiple houses so it’s patience and perseverance on their part,” she said. “If they’re not prepared for that, it’s discouraging. For the buyer agents it’s tough.”
Jennifer Erdley and Kevin Conolty
In the middle of the pandemic, Kevin Conolty opened a branch of Cutting Edge Realty in Woodland Park. Jennifer Erdley, with 36 years of experience, joined the team that includes Erin Gilley.
In the mad scramble for inventory in Teller County, Cutting Edge has an edge on marketing new developments.
The first of two is a subdivision developed by Mark McNabb’s MBI Construction. The company is building 36 single-family attached homes on land off U.S. 24 across from Walmart. They will be priced from $425,000 to $430,000 and the development includes a park.
A second project will soon be announced, Erdley said. “It’s happening but I can’t say yet,” she said. “Those are going to be attached homes priced from $370,000 to $375,000,” she said. “This office sees a lot of opportunities with those two products on the market.”
But inventory all around in Teller is low. In Divide, four single-family homes, with land, are on the market, each priced over $1 million, she said.
But when it comes to attainable, i.e., affordable housing, there isn’t much. “There are several condos in Woodland Park that are 640 square feet and selling for $250,000,” Erdley said.
Along with getting multiple offers on one property, some areas rise to the top of the list of desirable places to live. “I had 12 offers on a property in Indian Creek,” Erdley said, referring to a subdivision near Florissant.
The median price of homes in Florissant and Woodland Park is $450,000 and $600,000, respectively.
In the frenzy of real estate, phones and computers are constant companions. “I never shut my phone off,” Erdley said.
For instance, on a recent Sunday morning, she raced off to meet a couple from Dallas who called unexpectedly with a request to see a townhome. The hustle was worth it. She went, she sold. And the buyers drove off to catch a plane to return home.
These days, speed is all part of the deal. “You have to be ready to go, snowstorm or not,” Conolty said.
While America huddled at home at the initial lockdown, there were still real estate clients to serve. “People were still moving so we figured out how to navigate through it,” Conolty said.
The agents navigated by sending videos of properties on the market while waiting for in-person showings.
All of the Realtors feel they have the optimum circumstances when it comes to marketing homes. “Seventy percent of our land is National Forest,” Erdley said. “We always want to get outside, hiking and biking and ATVing. You name it, we’ve got it up here.”
Yet Erdley and Conolty agree that this type of market is not healthy. “Buyers who overpay and the market crashes are not going to get the equity they would have in a healthier market,” Erdley said.
Despite the triumphs and disappointments that come along with an unhealthy market, Erdley never says never. “We always have something in our pipeline,” she said.
Kellie Case and Connie Sims
Like the aforementioned Realtors, Kellie Case and Connie Sims at Keller Williams Clients’ Choice Realty are on the go, ready to spring into action when sellers reach out.
“A lot of sellers can capture those gains on their homes which have grown exponentially in the last six to eight months,” Case said, adding that across the country, real estate prices are increasing by 1% every month.
“That’s crazy,” she said.
Granted, it’s a very good time to sell. On the other hand, finding a place to buy is a challenge, she added.
Some buyers come with a list of requirements, such as Pikes Peak views or a home in certain area that’s in their price range. “Our job is to educate them about what to expect in this market,” Sims said.
In other words, buyers might get that mountain view while other wishes go unfulfilled.
Both agree that some of the current market climate is the result of pressure from the Denver market, where some houses are selling for $100,000 over list price. “We haven’t seen that yet here,” Sims said. “But it’s amazing how many cash buyers we have.”
In fact, Case sold three homes recently — each over $1 million — for cash in Woodland Park. “Cash buyers have more flexibility; they may not require an appraisal, for instance,” she said.
In 24 years of selling real estate, Sims says this time is unique.
The buying frenzy can also be attributed, in part, to low interest rates which hover around 3% presently, Case and Sims said.
“It’s a vicious circle that keeps getting bigger and bigger,” Case said.
Certainly, the pandemic plays a role in today’s market in Teller County.
“Coming out of the pandemic, a lot of people have learned that they can work from home,” Case said. “A lot of them realize they can save money on office space and find the value in upgrading their homes.”
The drive to live in Teller County is about the area’s natural beauty and lack of big city hustle and bustle. “We have everything here,” Sims said.
However, the go-go market is no doubt temporary, she said. “We don’t have a crystal ball, but the market will turn,” Sims said. “We know that.”
Along with the desire for space and the opportunity to work remotely, Teller County has another pull for people. “Once they know about our community it’s hard to go to other places where you don’t have that camaraderie, that willingness to be helpful, to volunteer,” Sims said. “All those things.”
Next month, Keller Williams Clients’ Choice Realty opens in the Woodland Exchange Building at 509 Scott Ave, Suite 2D.
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