Have Cash? Buy Steamboat Real Estate
Below is an excerpt from an article Tom Ross wrote for the Sunday, October 5, 2008, Steamboat Pilot and Today. It highlights the fact that cash buyers have room to negotiate in this era of tight credit.
Money talks, cash shouts
Buyers who can pay up front are noticed
Steamboat Springs — Given the slow pace of real estate sales in the Steamboat Springs market this fall, it feels premature to label cash buyers a trend — but something is going on out there.
Some of the prospective buyers are financially astute and see a chance to put money that has been pulled out of the stock market to work. The prospect for returns of 15 to 20 percent throughout the next five years is appealing right now, Vanatta said.
“Most of the people are really sophisticated buyers and sellers who understand the market is what it is,” Vanatta said. “There are also sellers who have to sell, and that’s what changes the market.”
Eliese Pivarnik, of Colorado Group, agreed that cash offers tend to get the attention of sellers in a slow market.
“Cash definitely makes somebody much more likely to negotiate the price of an offer, she said.
Pivarnik was in the midst of negotiations on behalf of a cash client, but said it was premature to discuss the transaction.
Her colleague, Jon Wade, said he is working with four cash buyers this month, and he is not convinced that cash is buying real estate here for below-market prices.
“If there’s a premium price built in, you might be getting a reduction,” he said.
One of Wade’s cash buyers has put a home in the Sanctuary under contract.
“This is a builder/developer in the Midwest. This is extremely smart money,” Wade said. “They’re also down-to-earth Steamboat people. If you walked by them on the street, you wouldn’t know it.”
Wade believes the same market drivers that were in place during Steamboat’s unprecedented run-up remain in place.
He observed that Intrawest owns Steamboat Ski Area, many people would love to move to Steamboat, the mountain and downtown commercial districts are improving, and the valley is running out of land.
If you would like information about buying or selling real estate in Steamboat Springs, North Routt, Hayden, Stagecoach, Oak Creek, or Clark, please contact Eliese Pivarnik at (970) 819-6372 or eliese@SteamboatHomeSales.com.
Posted: October 7th, 2008 under Investment Info.
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