RE/MAX of Boulder radio host, Duane Duggan, consulted Paula Parker, Colorado native and broker at RE/MAX at the Summit in Frisco, on purchasing resort properties in Summit County.
“As with any real estate purchase, the first thing you need to do is figure out where your financing is coming from,” says Parker, who points out getting approved for a loan for a second home can be difficult. Deciding factors are whether or not the property includes commercial property and whether or not the property will be rented on the short-term market. Parker recommends using a local lender who is used to handling second home loans and that an applicant have at least a 20 percent down payment.
The Summit County housing market is “primarily a second home market,” says Parker, who reports that some 69 percent of Summit County homes are owned by non-residents. Lagging the Boulder market by about 18 months is typical, says Parker, landing Summit County at the beginning of the housing market up-swing. Total sales were up one percent in May and the average sold price was up eight percent, with 1-2 bed condominiums in the $400,000-$700,000 price range being the most common inventory sought after by resort homeowners.
“They’re obtainable, rent well, and if you can fine a well-kept one with low dues, a view, and that includes extra amenities such as ski pass discounts, it’s a particularly good investment,” says Parker.
Timeshare and Quarter-share ownership are full-ownership alternatives that could keep owning a second home within your budget. A large percentage of resort homeowners in Summit County use short term rental services such as Home Away or Vacation Rental By Owner (VRBO) to rent homes for a few days, a week, or a month, often using a third party management company to handle landlord duties when the homeowner lives outside the county.
If you’re purchasing a timeshare for owner use rather than as a rental, “get agreements in writing,” warns Parker, who recognizes peak vacation times need to be delegated equally to appease all owners.
To listen to the full interview, visit boulderco.com/blogs and check out bouldersource.com for Boulder reviews, news, tips, and events.