Spring has often been described as a battle between winter and summer. No where is this more true than here in the mountains. Last Saturday was a picture perfect day with record high temperatures in the 60’s and yesterday we received 28 inches of new snow at Alta. Spring is the time of the year where one day you are skiing in a turtleneck and windbreaker and the next day hat, goggles and full winter gear. This is what makes spring skiing so fun.
For the past year I have been saying that we may be looking back to this time as the opportunity to have purchased resort real estate at bargain prices. With the stock market slowly heading upward for the past two weeks and news reports that new housing starts were up in Feb and sales of existing homes were very strong, this prophecy may be becoming true. While it certainly continues to be a buyers market here in Park City as well as the other western ski resorts, I have definitely seen an increase in activity. Here in Park City I have seen the number of contracts written and accepted slowly increase. I have also been receiving calls much more frequently to show my listings and for information regarding them. While we certainly have not turned the corner to becoming a sellers market, we very well may be nearing the bottom of this buyers market. One of the signs that we may be nearing the bottom is that I am seeing a large increase in purchases by investors. These investors have been sitting on the side lines waiting for the right moment and their move tells me that this is the right time to purchase. Time will tell. But with the extremely low interest rates, a good selection of properties on the market, and sellers willing to negotiate, we could be looking back to this spring and saying “Why didn’t I purchase then?”
All three of the park city ski resorts, Deer Valley, Park City Mountain Resort and The Canyons are scheduled to close on April 12th. With just 2 and ½ weeks left to our ski season come out visit us and take advantage of these days.
Tuesday, March 24, 2009
Wednesday, March 18, 2009
Spring Skiing in Park City
This is the time of the year that we change over from the cold winter snow conditions to spring skiing. The joys of spring skiing are skiing corn snow and spending the afternoons on “the beach” at Deer Valley. Click here for fun photos.
We are all familiar with the typical star-shaped snowflake that falls, for which Utah is so famous for. However, come spring the snow going through constant melt-freeze cycles and changes to what is referred to as “corn snow”. The snow crystal melts during the day, refreezes at night, melts again the next day and freezes once again. After several cycles of this, the snow has lost its crystal shape and resembles more that of a grain of corn. Very sought after skiing occurs just as the surface starts to soften and has about an inch or two of soft snow over a firm base. The skiing in these conditions is smooth, consistent and completely delightful. Experienced spring skiers know to go to the east or south exposures first thing in the morning where the snow softens first, and then work their way around to the west, and finally the north exposures as daytime heating progresses. All too often I talk to visitors who do not understand the sun and its effect on the snow and try to ski north or west exposures first thing in the morning, which can be rock hard and very unpleasant. When spring skiing, look for the sun first thing or follow the locals, who know where to go, and you will find your day extremely enjoyable.
In real estate news, a concern that everyone is hearing is the ability, or non-ability to obtain financing for vacation properties. While financing is certainly not as easy as it was a few years ago, financing is available. In the past few years stated income, non-verification loans where easy to obtain. And it is largely responsible for creating the financial mess that we are in right now. As is typical, the pendulum has now swung strongly the other direction where lenders require verification of everything. When financing a resort property, particularly a condo or condo-hotel, I feel that it is imperative to use a local lender. One who knows the property and knows how to package the loan in such a way that the underwriters will fund it. Too many times I have seen buyers search the internet for what they think is the best rate, or use a lender in their home town. Experience has taught me that these loans rarely go through. One of the first questions an out-of-state lender asks is, “What percentage of the condo development is non-owner occupied?” In a resort town, such as Park City, the answer is frequently, “Nearly 100% of the properties are non-owner occupied.” This will often kill any possibility of the lender funding the loan. Local lenders understand that these wholly owned condos are used by their owners for vacations and know how to package this so that the underwriter is comfortable with the loan. Frequently, experienced Realtors® will ask the buyer’s agent who the buyer is using for their loan. If the property being purchased is a condominium which is used for vacation rentals, it is not uncommon for the listing agent to require that the buyer submit a loan application with a local lender as well as their out of state lender. What we are trying to accomplish here is to increase the sellers confidence that the loan will go through. So my advice when purchasing resort real estate is to rely on your Realtor® for advice on financing. Our local lenders know how to work with out-of-state buyers and the peculiarities of resort property. This helps make the loan process as smooth and painless as possible.
We are all familiar with the typical star-shaped snowflake that falls, for which Utah is so famous for. However, come spring the snow going through constant melt-freeze cycles and changes to what is referred to as “corn snow”. The snow crystal melts during the day, refreezes at night, melts again the next day and freezes once again. After several cycles of this, the snow has lost its crystal shape and resembles more that of a grain of corn. Very sought after skiing occurs just as the surface starts to soften and has about an inch or two of soft snow over a firm base. The skiing in these conditions is smooth, consistent and completely delightful. Experienced spring skiers know to go to the east or south exposures first thing in the morning where the snow softens first, and then work their way around to the west, and finally the north exposures as daytime heating progresses. All too often I talk to visitors who do not understand the sun and its effect on the snow and try to ski north or west exposures first thing in the morning, which can be rock hard and very unpleasant. When spring skiing, look for the sun first thing or follow the locals, who know where to go, and you will find your day extremely enjoyable.
In real estate news, a concern that everyone is hearing is the ability, or non-ability to obtain financing for vacation properties. While financing is certainly not as easy as it was a few years ago, financing is available. In the past few years stated income, non-verification loans where easy to obtain. And it is largely responsible for creating the financial mess that we are in right now. As is typical, the pendulum has now swung strongly the other direction where lenders require verification of everything. When financing a resort property, particularly a condo or condo-hotel, I feel that it is imperative to use a local lender. One who knows the property and knows how to package the loan in such a way that the underwriters will fund it. Too many times I have seen buyers search the internet for what they think is the best rate, or use a lender in their home town. Experience has taught me that these loans rarely go through. One of the first questions an out-of-state lender asks is, “What percentage of the condo development is non-owner occupied?” In a resort town, such as Park City, the answer is frequently, “Nearly 100% of the properties are non-owner occupied.” This will often kill any possibility of the lender funding the loan. Local lenders understand that these wholly owned condos are used by their owners for vacations and know how to package this so that the underwriter is comfortable with the loan. Frequently, experienced Realtors® will ask the buyer’s agent who the buyer is using for their loan. If the property being purchased is a condominium which is used for vacation rentals, it is not uncommon for the listing agent to require that the buyer submit a loan application with a local lender as well as their out of state lender. What we are trying to accomplish here is to increase the sellers confidence that the loan will go through. So my advice when purchasing resort real estate is to rely on your Realtor® for advice on financing. Our local lenders know how to work with out-of-state buyers and the peculiarities of resort property. This helps make the loan process as smooth and painless as possible.
Friday, March 13, 2009
Questions a Buyer Should Ask
Very often when I am showing property to buyers who have never purchased in a resort community before, I am asked a very interesting question. “What questions should we (the buyers) be asking you, our agent?” This is a terrific question and one that should be asked of a buyer’s agent more often. This begins a dialogue between the buyers and myself. Questions that need to be brought up in the beginning are:
“If we are looking to rent this property when we are not using it, is the area that we are looking in suitable for that? Or should we be looking in other places?”
“Do the neighborhood covenants (CC&Rs) allow for vacation rentals? Or do they have restrictions as to the minimum number of days a rental has to be, such as 30, 60 or 90 days?”
“If I am not looking to rent my property, is the neighborhood that I’m looking in popular with vacation rentals, and possibly very noisy with groups who are here on vacation?”
I feel that these are the first and most important questions that need to be asked right away as they will dictate what areas or neighborhoods that I take my buyers to. In any resort community there are areas that are high in demand for rentals and other areas that are more suitable for primary residences.
Once this has been established, then we can get into more specifics. When we find an area or development that is of interest (assuming we are looking at a rental property) questions such as:
“What is the proximity of this property to the resort?”
“Can there be other developments nearby that could affect the views, resort access or rent ability of this project?”
These are really very important questions, as all too often a buyer purchases a home or condo with beautiful views of a ski resort or beach only to find that a new development goes in next to it, completely blocking their view! Other developments, such as new or planned commercial developments could have a negative effect on property values or, in some cases, may have a positive effect.
Another great question to ask is if the property you are interested in is not within walking distance of the resort:
“Is there public transportation?”
“How close is the transportation to your vacation home?” “Is there a fee for this transportation?”
And “What are the hours of operation?”
The availability of free or low- cost transportation can have a strong impact on the rent ability of your vacation property.
Now we start getting into more details:
“What size property is best for rental? A one bedroom, two bedroom or three or more bedrooms?”
“Should I be looking for a property with amenities, such as pool or tennis courts?”
“Should I be looking for a property with a private hot tub?” (This is a big plus in ski resort rentals.)
“Should I be looking for a property within walking distance of the resort or restaurants and shopping of the town?”
“In this particular resort are newer properties more desirable than older?”
The answer to many of these questions comes with a price tag. In almost all cases, the closer your vacation home is to the resort, whether be it the beach, mountain, lake or village, the higher the price is. More often newer properties also come with a higher price tag. So finding a balance between what price range your comfort zone is and what makes the most sense for rental income is a discussion that you and your REALTOR® should have early on in your search.
Asking these questions up front will save you a lot of time and frustration. The worse thing that can happen is to be looking for properties, find what you feel is absolutely perfect, only to discover that the CC&Rs will not allow you to rent, or that its location greatly limits your rental income potential. While you may not know the resort or what is available at what prices, you should know your objectives and make sure that you and your REALTOR® are on the same page. With these questions, your time with your REALTOR® will be productive and efficient and you will find a property that best fits your and your family’s requirements.
“If we are looking to rent this property when we are not using it, is the area that we are looking in suitable for that? Or should we be looking in other places?”
“Do the neighborhood covenants (CC&Rs) allow for vacation rentals? Or do they have restrictions as to the minimum number of days a rental has to be, such as 30, 60 or 90 days?”
“If I am not looking to rent my property, is the neighborhood that I’m looking in popular with vacation rentals, and possibly very noisy with groups who are here on vacation?”
I feel that these are the first and most important questions that need to be asked right away as they will dictate what areas or neighborhoods that I take my buyers to. In any resort community there are areas that are high in demand for rentals and other areas that are more suitable for primary residences.
Once this has been established, then we can get into more specifics. When we find an area or development that is of interest (assuming we are looking at a rental property) questions such as:
“What is the proximity of this property to the resort?”
“Can there be other developments nearby that could affect the views, resort access or rent ability of this project?”
These are really very important questions, as all too often a buyer purchases a home or condo with beautiful views of a ski resort or beach only to find that a new development goes in next to it, completely blocking their view! Other developments, such as new or planned commercial developments could have a negative effect on property values or, in some cases, may have a positive effect.
Another great question to ask is if the property you are interested in is not within walking distance of the resort:
“Is there public transportation?”
“How close is the transportation to your vacation home?” “Is there a fee for this transportation?”
And “What are the hours of operation?”
The availability of free or low- cost transportation can have a strong impact on the rent ability of your vacation property.
Now we start getting into more details:
“What size property is best for rental? A one bedroom, two bedroom or three or more bedrooms?”
“Should I be looking for a property with amenities, such as pool or tennis courts?”
“Should I be looking for a property with a private hot tub?” (This is a big plus in ski resort rentals.)
“Should I be looking for a property within walking distance of the resort or restaurants and shopping of the town?”
“In this particular resort are newer properties more desirable than older?”
The answer to many of these questions comes with a price tag. In almost all cases, the closer your vacation home is to the resort, whether be it the beach, mountain, lake or village, the higher the price is. More often newer properties also come with a higher price tag. So finding a balance between what price range your comfort zone is and what makes the most sense for rental income is a discussion that you and your REALTOR® should have early on in your search.
Asking these questions up front will save you a lot of time and frustration. The worse thing that can happen is to be looking for properties, find what you feel is absolutely perfect, only to discover that the CC&Rs will not allow you to rent, or that its location greatly limits your rental income potential. While you may not know the resort or what is available at what prices, you should know your objectives and make sure that you and your REALTOR® are on the same page. With these questions, your time with your REALTOR® will be productive and efficient and you will find a property that best fits your and your family’s requirements.
Monday, March 2, 2009
Culinary Adventures in Park City
Last night I joined some clients for dinner at the Viking Yurt at The Canyons. For anyone visiting Park City during the ski season, the Viking Yurt dinner should be high on their list of places to go.
The meal begins with a sleigh ride from the base of The Canyons resort to mid-mountain at about 8,300 feet in elevation. The sleigh holds about 30 people and is pulled up the mountain by a Snow Cat. This in itself is quite enjoyable, cruising up the ski runs after dark, enjoying the lights from the town below. After about a 2- minute sleigh ride we arrive at the Viking Yurt. The Yurt is a round, tent-like structure, with wooden support beams, a pot-bellied stove for heating and a small kitchen. The Yurt has no electricity or running water, so it is lit by gas lanterns and the meal is brought up by Snow Cat during the evening. Coming in from the cold to the warm Yurt, we are warmly greeted by the hostess, who presents us with a steaming mug of hot grog. There are 4 tables in the Yurt, each seating around 10 people. So unless you have a large group, you will enjoy your meal with soon-to-be new friends. As most are visitors from around the country, conversation is lively and topics range from the day’s skiing to current events. We are treated to a 4 course dinner and the meal is always extraordinary, and last night was no exception. At the end of the meal, and several bottles of wine, we board the sleigh for a beautiful trip down the mountain to the base. This is such a different and relaxing way of dining, a far cry from the hustle and noise of Main Street.
Another dining experience not to be missed is the Fireside Dining at the Empire Lodge at Deer Valley. The Empire Lodge is located at about 8,500 feet up on the mountain, but is accessible by car. The Empire Lodge, which is one of Deer Valley’s Day Lodges, is transformed from the day cafeteria style meal to this fine dining experience. The Empire Lodge boasts five very large stone fireplaces and all of the meals are prepared at the fire places, thus the name “Fireside Dining”. The first station is Swiss Raclette. For this several large bricks of cheese are hung by hooks in front of the fire. The heat of the fire melts the cheese and it drips onto plates, which the quests will then pick up and add to it all of the condiments one would expect for raclette. The second station is hearty stews and soups. Here, several large cast iron pots are hung from the fire with a variety of delicious soups and stews. At the third station, a leg of lamb is hung in front of the fire and slowly spun to cook evenly and deliciously. The fourth and final station is my personal favorite…dessert of course. Here we have several fondues, chocolate, white chocolate and caramel with a variety of fruits and Deer Valley cookies. During the dinner your group can take a short break and go for about a 20 minute horse drawn sleigh ride around the base area and some of the ski runs. On a snowy night this will be a memorable experience.
Other adventures around Park City include early morning hot air balloon rides, snowmobile tours in the back country, and cross country skiing or snowshoe trips in either the Park City Mountains or the surrounding Uinta Mountains. These can either be guided, or for the adventurous, you can strike off on your own. Being a true destination resort, we understand that not everyone comes to ski, or wants to ski everyday. The days are getting longer, the sun is higher in the sky, so plan your trip to Park City. But leave time to try something different.
The meal begins with a sleigh ride from the base of The Canyons resort to mid-mountain at about 8,300 feet in elevation. The sleigh holds about 30 people and is pulled up the mountain by a Snow Cat. This in itself is quite enjoyable, cruising up the ski runs after dark, enjoying the lights from the town below. After about a 2- minute sleigh ride we arrive at the Viking Yurt. The Yurt is a round, tent-like structure, with wooden support beams, a pot-bellied stove for heating and a small kitchen. The Yurt has no electricity or running water, so it is lit by gas lanterns and the meal is brought up by Snow Cat during the evening. Coming in from the cold to the warm Yurt, we are warmly greeted by the hostess, who presents us with a steaming mug of hot grog. There are 4 tables in the Yurt, each seating around 10 people. So unless you have a large group, you will enjoy your meal with soon-to-be new friends. As most are visitors from around the country, conversation is lively and topics range from the day’s skiing to current events. We are treated to a 4 course dinner and the meal is always extraordinary, and last night was no exception. At the end of the meal, and several bottles of wine, we board the sleigh for a beautiful trip down the mountain to the base. This is such a different and relaxing way of dining, a far cry from the hustle and noise of Main Street.
Another dining experience not to be missed is the Fireside Dining at the Empire Lodge at Deer Valley. The Empire Lodge is located at about 8,500 feet up on the mountain, but is accessible by car. The Empire Lodge, which is one of Deer Valley’s Day Lodges, is transformed from the day cafeteria style meal to this fine dining experience. The Empire Lodge boasts five very large stone fireplaces and all of the meals are prepared at the fire places, thus the name “Fireside Dining”. The first station is Swiss Raclette. For this several large bricks of cheese are hung by hooks in front of the fire. The heat of the fire melts the cheese and it drips onto plates, which the quests will then pick up and add to it all of the condiments one would expect for raclette. The second station is hearty stews and soups. Here, several large cast iron pots are hung from the fire with a variety of delicious soups and stews. At the third station, a leg of lamb is hung in front of the fire and slowly spun to cook evenly and deliciously. The fourth and final station is my personal favorite…dessert of course. Here we have several fondues, chocolate, white chocolate and caramel with a variety of fruits and Deer Valley cookies. During the dinner your group can take a short break and go for about a 20 minute horse drawn sleigh ride around the base area and some of the ski runs. On a snowy night this will be a memorable experience.
Other adventures around Park City include early morning hot air balloon rides, snowmobile tours in the back country, and cross country skiing or snowshoe trips in either the Park City Mountains or the surrounding Uinta Mountains. These can either be guided, or for the adventurous, you can strike off on your own. Being a true destination resort, we understand that not everyone comes to ski, or wants to ski everyday. The days are getting longer, the sun is higher in the sky, so plan your trip to Park City. But leave time to try something different.
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