Why many sellers of Breckenridge real estate are sticking to their pricing or taking their properties off the market. Today I spoke with a couple, my clients that were discussing selling a property or two that they own in Breckenridge, Colorado. They have decided not to list TWO of their homes for sale in Breckenridge. Why? Because, many of the properties for sale in Breckenridge have been made for investment purposes in hopes of good appreciation over the duration of ownership, and if my clients can not realize a good appreciation in today’s Breckenridge real estate market, they instead prefer to hold on to their properties. Why not make a deal, as the majority of Breckenridge buyers are looking for that “screaming deal”, as the economy is bad and there must be some properties to be had for a “steal”? My clients used a 1031 tax deferred exchange to purchase these two homes. Many of the would be sellers or sellers sticking close to their asking prices in the Breckenridge, Colorado real estate market purchased a second home or investment property using such a tax vehicle. And many of these people used a 1031 exchange tax deferred option PLUS a mortgage when purchasing their Breckenridge property. Therefore, to sell “at a steal” would only get their 1031 monies out of the property (hopefully) and force them to then either purchase another like property for the same price or more than the current property PLUS the another mortgage OR pay the taxes due, not a very alluring task. As the owners of Breckenridge real estate are primarily above average income people, who usually own a few real estate properties for investment, they are also those who can ride out the storm. Riding out the storm could take some time and the rental income made by many of these homes can help to off set some of the cost of ownership. These would be sellers are hunkering down and awaiting the build-out of Breckenridge, Colorado, perhaps even by 2013?!
My tips to sellers in this market are as follows…
1. take your property off the market, if you do not need to sell.
2. check into rental income to be made on your property and think outside the box on this one…
3. if you need to sell, price your listing well and not with exorbitant pricing, it is not 2007!
4. if you MUST make the deal, make it a steal!
My tips for buyers in our current Breckenridge real estate market follow…
1. do not expect all sellers to sell at a loss, as historic data is still strong, if it is below cost then it will be advertised as such.
2. property values were still up in 2008 from 2007, so when low-balling know the numbers and the comparable!
3. make offers!! as interest rates are at record lows and there are some “screaming steals” to be had by those sellers in a bind.
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