Buyer Tips

The Ultimate Telluride Real Estate Buyers Guide

Interested in buying real estate in Telluride? Perhaps a mountain condo or multi-generational retreat? A property you can 1031 exchange into or a real estate and rental investment? Look no further for insights into the nuances of what it means to be a property owner in Telluride. It’s my pleasure to present the ultimate buyers guide for Telluride Real Estate.

What to Be Prepared For:

  • The 3% Real Estate Transfer Assessment:
    • Both the Town of Telluride and the Telluride Mountain Village Owner’s Association (TMVOA) have a 3% real estate transfer assessment almost always paid by the buyer. But before you fret, understand that these funds go for very important property value enhancing programs. In the Town of Telluride, the fund is used exclusively for Town capital projects. In Mountain Village, the fund runs and maintains the free public gondola, Dial-A-Ride on demand transportation for owners and guests, member social events and economic stimulus.
  • Understand Your Purchase Power:
    • If you are a cash buyer, you are in the driver’s seat. If financing, make sure to get a pre-qualification to understand how much property you can afford. We as Brokers have shown many dream properties that buyers fall in love with only to realize the lenders won’t back the purchase.
  • The Emotional Roller-Coaster:
    • Offers are submitted and countered. Competing bids may trump your offer. Dates for due-diligence, inspections and their resolutions can be an emotional roller coaster. Title and HOA document review are important part of the process. This is where a knowledgeable and committed broker understanding and representing your interests are worth their weight in gold. You will be well guarded against the risks of the process.
  •  Appraisal and Inspection:
    • Is the home you are purchasing worthy of the price and condition of the property? An independent appraisal is required if you are financing and is a good idea overall for your piece of mind.
    • After inspection, the deal can get tricky. What are you going to ask the seller to fix? What if they refuse? Many a deal has been undone by the inspection and subsequent resolution negotiations.
  • Home Insurance, Warranties and Title Insurance:
    • Your broker will have a list of trusted and recommended professionals to assist you with policies and coverage to put your mind at ease
  • Closing – Congratulations!
    • The final walk-through will give you the opportunity to make sure you’ve found the perfect property to fulfill your real estate objectives
    • Your closing costs and settlement charges will be clearly outlined in the closing statements. Applicable expenses such as property taxes, utilities and rental income will be appropriately pro-rated.
    • Your broker should provide you with a buyer’s checklist to switch utility billing, cable and internet services, rental management companies and property maintenance specialists.

Please contact me for additional information and discussion on the Telluride home-buying process. To stay informed, check out my website at www.telluriderealestates.com and Like my Facebook page at Telluride Real Estate News. How can I assist you today?

Telluride 1031 Exchange

If you have a rental property and you are looking for a Telluride vacation home or if you already own a rental home in Telluride and you would like different rental property; perhaps a larger home or different location, or a property that can generate more income and you want to defer capital gains taxes and recaptured depreciation taxes a 1031 exchange might be a great option for you. Section 1031 has been in the tax code since 1921 and there is some talk out there about this being a chopping block item for the new federal administration so you may want to act quickly. 1031 exchanges can be complex and it’s important to follow the rules the IRS has outlined so when you’re ready to do a 1031 exchange, we’ll work with an attorney and your accountant to get this done.

There are many tax advantages to owning rental property, including depreciating the property and IRS code section 1031 allows owners to sell rental property and defer the taxes on any profit and recaptured depreciation.

Here’s how it works:

  • The exchange must involve two like-kind properties, one being sold and one being bought within a certain time frame.
  • Like-kind refers to the nature of the investment not the property form. (IE: one rental property for another would qualify).
  • You must identify the relinquished property as a 1031 exchange before the first sale is made.
  • The new replacement property must be at least the amount of the sold property to avoid paying taxes.
  • The new replacement property must be identified within 45 days and purchased within 180 days after the original property has been sold.
  • Once the original property has sold, the money is required by the IRS to be held by a qualified intermediary and all the cash must be used to purchase the new property.
  • You must take title to the new property in the same name as the original property.

The 1031 exchange can be an amazing tool for your investment properties. The process is intricate and complex. There are restrictions on owner usage and a minimum requirement for rental nights. Talk to an attorney or cpa about your specific situation and contact me to sell and buy your exchange properties.

Tips for Buying Telluride Luxury Real Estate

With attractive interest rates and real estate prices per square foot still below many comparable mountain towns, now is the perfect time to buy Telluride luxury property. The Telluride market is seeing momentum with more transactions and dollar volume in 2016 than the previous year. With more convenient air access into the Telluride and Montrose airports than ever before, an exciting master development plan just released by the Telluride Ski & Golf Resort and world-class alpine winter and summer lifestyle experiences to be had, now is the time to make a run at Telluride luxury property.   

Here are my Tips for Buying Telluride Luxury Property:

  • Make a list of your objectives. These questions are your preferred number of bedrooms and budget, your intended usage of the property, location, access and preferred amenities. Your real estate broker will guide you through this process.   
  • Finding the right broker who knows the Telluride luxury market is the best bet for finding properties that are for sale but that are not necessarily easy to find because of privacy concerns. An agent familiar with the Telluride market may have inside information about listings before they are listed for sale and the agent will be able to help you determine the market value of a luxury property. Most residential real estate is valued using market comparables - similar properties in the area that have recently sold. Valuing Telluride luxury properties can be a challenge since there are many tangibles and intangibles of a luxury home.
  • If you are financing your luxury property, it’s a good idea to obtain your financing approval early in the process. Some property owners may not even want to show their property to yet unqualified buyers.
  • Consult your tax attorney on the options you have to properly structure ownership of your property to your advantage. Some options include to hold your property in your personal name, in a corporation or in a trust. There may be additional tax advantages if you are renting your property while you are not using it.
  • Be sure to use your real estate agent to schedule a property inspection with an inspector who knows the special amenities these homes often contain, Ice melt systems, radiant heat, lighting, specialized mechanical systems, and the roof condition for the alpine environment are just a few.
     

With a careful and informed approach and the right real estate broker to guide you, now is the time to find and purchase Telluride luxury property. 

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