Top tips for navigating the home-buying process in Aspen, CO

Spectacular mountain scenery, diverse culture, endless outdoor recreation opportunities, and above all else, a warm, small-town atmosphere – these are just some of the qualities that make Aspen an enviable place to live. On top of all these, Aspen offers top-notch dining options, world-class shopping, and a packed schedule of activities and events all year round

If you’re ready to shop for homes for sale in Aspen, Colorado and launch your home buying plans, below is a guide to help you proceed with confidence – even if you’re a first-time buyer.

Overview of Aspen, Colorado’s real estate market. Aspen has a longstanding reputation as a premiere destination for luxury living. However, many of the properties here are well within the budget of middle income earners. The cost of living is high, but this is due mainly to the city’s popularity as a tourist and skiing destination. Even so, Aspen doesn’t even rank among the top 15 most expensive cities in the US. Likewise, the cost of healthcare, utilities, and transportation all rank below the nationwide average.

TOP TIPS FOR FIRST-TIME HOME BUYERS IN ASPEN, CO

Buying your first house for sale in Aspen represents progress, success, and the realization of a dream. However, the process can be overwhelming at the outset. With knowledge and preparation, you can make your first-ever home purchase a success. Use first-time homebuyer guides and the tips below to help you navigate the process.

1. Define your priorities

   When shopping for a home, focus first on non-negotiables. Traditional home buying non-negotiables include:

   • Number of rooms
   • Proximity to amenities
   • School
   • Securit

   Of course, each buyer’s non-negotiable list will be different according to personal preferences and circumstances

   To figure out your needs versus wants in a house, go through the pros and cons of your current home. What works? What could be improved? What are the features you could live without? Once you have your list of priorities, you can move on to your wants or features that would be nice to have. Perhaps you’d like a spacious study or home office, a heated pool, a wine cellar, or maybe a home theater. In making your list of needs and wants, remember to stay realistic, and be open to compromise when needed

   Once you have your list, go over them with your real estate agent. Doing this will help you narrow down your search and avoid wasting time on listings that don’t meet your criteria.

2. Work with a local real estate expert

   When looking at Aspen luxury homes for sale, make sure to partner with a real estate agent who is active in the local property market. A local agent will have unparalleled knowledge of and expertise on homes for sale in Aspen, Colorado, which can be the key to a smooth and speedy real estate transaction

   Here’s what you gain when you work with an experienced Aspen, Colorado real estate agent:

   • Knowledge of the micro market. Local agents will have a lot of stock knowledge about the area you are planning to buy in, including the current inventory, the types of available homes, and how much properties are selling for. You won’t have to wait for them to get back to you whenever you have a question because they already know the area inside out.

   • A skilled negotiator. Local real estate agents will know if the property is fairly priced based on the market value of the community you’re interested in. Their ability to make finely tuned comparative analyses of homes in the area can make a huge difference between spending more and saving significantly on your home purchase. They will also be able to identify potential issues with the property that are not immediately apparent. This can help you realize substantial savings come closing time or avoid incurring significant losses in case of unexpected developments.

   • Solid decisions from day one. It’s easy to let your emotions get in the way of a home purchase. Having a clear, objective eye that can help steer the ship will help you avoid regrettable mistakes and keep you on track towards your goals. A good real estate agent will be a trusted partner who can provide stability and sound advice at every point of the transaction, which can prove invaluable throughout the process.

3. Don’t take anything at face value

   The COVID-19 pandemic dramatically changed a lot of real estate processes, with most open houses being replaced by private showings by appointment and having face-to-face transactions supplanted by Zoom calls. Some homebuyers have even completed their transactions without visiting their properties at all, relying instead on 3D video tours that tend to show off the good and hide the bad. Which is another reason a local Realtor can be your trusted ally.

   First-time home-buying guides are quick to remind buyers that the best way to avoid buyer’s remorse is to schedule a private showing and take a closer look at the property

   Here’s what to look for when touring a house:

   • Check out the closets to see the available storage space.
   • Pull the curtains back and see the amount of available natural light in each room.
   • Take note of the condition of the exterior features, such as windows, porches, landscaping, swimming pool, etc.
   • Determine if trees within the property pose potential risks.
   • Turn on all the light fixtures and appliances, including the HVAC system and garbage disposal, to make sure they’re functioning properly.
   • Confirm that the plumbing fixtures work and that hot water is available.
   • Ask questions about the neighborhood How secure is it? What’s the traffic like? What are the surrounding local services and amenities?

   Upon the advice of your Realtor, you can make an offer and once it’s accepted, specify a contingency or due diligence period. This is your window of opportunity to order a home inspection and have a certified professional go through the key features of the house – roof, plumbing, electrical systems, structural integrity, etc The results of the inspection will dictate your next course of action based on the contingency both parties agreed on.

4. Get your financial documents ready

   If you plan to take out a mortgage for your home purchase, you will need to prepare key financial documents. Lenders will want to take a closer look at your finances when you’re buying a home, which means your source of income, savings, bank activities, investments, and spending habits will come under the microscope.

   Here’s a list of the financial documentation that lenders will ask you:

   • List of assets
   • Income tax returns
   • Bank statements going back three months to one year
   • Credit score and history
   • Employment history
   • Rental history

   To boost your chances of getting the best possible terms out of your mortgage, first-time home buyer guides recommend taking the following steps:

   

   • Make the largest down payment possible. If you can manage a down payment equivalent to 20% of the home’s asking price, you’ll lower your mortgage’s loan-to-value (LTV) ratio and be deemed a good risk in the eyes of a lender. This can help you qualify for lower interest rates.

   • If you have a low credit score, work on improving it. Some of the quickest ways to build good credit is to:

     • Use 30% or less of your available credit
     • Hold off on opening new credit lines
     • Pay off outstanding bills
     • Consolidate high interest debts into one single easy-to-pay loan

   • Set aside a budget for closing costs and fees. When buying a home, the exact amount of closing costs and fees are notoriously difficult to estimate. In Colorado, closing costs typically range from $3,800 to $4,000, but it can be higher, depending on factors such as the real estate location, the final sale price, and your specific mortgage lender.

     Some of the most common closing costs include:

     • Application fee
     • Appraisal fee
     • Recording fees
     • Attorney fees
     • Escrow fee
     • Homeowners association transfer fee
     • Homeowners insuranc
     • Loan origination fee
     • Daily interest charges
     • Property tax

     Some costs are charged by the lender. Some are government requirements. Others are from private entities whose services were procured during the transaction. To be safe, set aside 6% of the purchase price for closing costs. Keep in mind that newer homes tend to have higher closing costs.

5. Be ready for the maintenance costs

   Owning a home means you’ll be responsible for maintaining the entire property. On average, homeowners spend close to $10,000 a year on maintenance. The amount can be significantly higher for luxury homes To give you an idea, a property worth above $1 million can have a monthly maintenance cost of anywhere between $5,000 and $70,000.

   Of course, the expenses will vary depending on the property type, available amenities, and your own personal preferences with regards to maintenance schedules and updates. Some properties need a property manager, contractors, and additional staff for regular and preventive maintenance.

   While looking at a house for sale in Aspen, ask for a complete and detailed breakdown of all the seller’s maintenance expenses before you sign a purchase contract, as they can impact your budget, and ultimately, your buying decision. As a rule of thumb, budget from 1% to 4% of the home’s purchase price to determine your yearly maintenance costs, according to home management experts. The percentage will vary based on the age and size of the house, the climate of the area the house is in, and the materials used to build the house.

6. Take note of Aspen’s climate and seasonal variations

   

   The seasonality of the Aspen real estate market is one of the key factors impacting housing inventory and average price. Like most places, the summer months of June, July, and August are peak seasons for home selling in Colorado’s popular ski town. Sales and prices tend to taper down during the winter months. Therefore to strike a good deal, the colder months might be the best time to buy your home in Aspen.

   Aside from lower home prices, here are some of other winter home-buying advantages you might want to take advantage of:

   • Less competition. Plunging temperatures, icy conditions, and the usual difficulties associated with winter mean that there are fewer people interested in buying a home. Thus, there i less competition from other buyers, making it more likely to have sellers accept your offer.

   • Faster closing. Mortgage brokers have fewer clients during winter, so you could end up closing on the property faster.

   • Movers are more readily available. With fewer people relocating, movers are easier to book during winter. And more often than not, their schedules aren’t set in stone because of the unpredictable weather. You’ll then have the flexibility to reschedule in case a winter storm happens on your planned moving date.

   Keep in mind, however, that sales volume and prices remain high throughout the year because of the tight inventory and the fierce demand for luxury properties in Aspen. Consult your agent whether a winter home purchase is best for your situation.

7. Research resale potential

   While your priority will be to find a property that meets your home buying criteria, you should also plan for the future and consider the home’s resale potential. The shorter your expected occupancy, the more you should think about your home’s resale value.

   Here are home resale factors to review as you move forward with your home buying plans.

   • Current and past sales price. How much did the home previously sell for? Looking at historical price data will tell if the value increased or decreased over time

   • Location and amenities. A property located near schools, grocery stores, transportation hubs, and, in the case of Aspen, resorts and other hotspots, practically guarantees that value will increase in the future. While shopping for a home, drive around the neighborhood and check out amenities that could potentially increase your home’s resale value.

   • Space. The average square footage for new homes sold in the US is 2,559 square feet This means that homes that are about this size have a good chance of retaining its value or increasing it. However, trends can vary from area to area, so an urbanized area like Aspen has a average house size of 2,262 square feet. Your agent can help you with the cost per square foot in your chosen community. You can also check out updates here.

   • Layout. While layout styles and preferences have changed over time, a few trends are considered high value in the modern real estate market: an open floor plan. These trends suggest the following:

     • Bed-to-bath ratio of 2:1 or less (1:1 being optimal)
     • Enhanced energy efficiency of features (windows, doors, HVAC, appliances), and the primary suite

   • Age and condition. Newer homes tend to have higher appraisal value than old homes because their structure and systems are up to current codes. On the other hand, the age of a home can brin down its value, especially if critical features such as roofing, plumbing, and electrical systems are outdated and in poor state.

   If you’re planning to purchase an older home, you’ll have to commit to its maintenance so it can retain its value when you decide to sell later Your agent will be able to furnish you with a home maintenance and repair checklist that identifies key areas of concern in your property before selling.

8. Keep local and global market trends in mind

   

   CONDO SOLD in ASPEN: 2 beds, 2.5 baths, 1,567 square feet. Inquire condos for sale in Aspen

   As a buyer, you’ll want to buy a house in a buyer’s market, as this indicates that the supply of houses for sale is greater than the demand for them. In a buyer’s market, sellers tend to lower their asking prices to gain an advantage over other houses for sale in the area. Likewise, sellers are more willing to negotiate offers to keep buyers interested.

   Luckily for those shopping for homes in Aspen, the ski town is currently in a buyer’s market, with the majority of homes selling for below asking price, albeit only slightly, according to August 2023 data. To make the most of the market, have your Realtor show you as many properties as possible, and have them brief you on comparable properties on the market.

9. Consider security and privacy

   When investing in luxury property, security and privacy rank among the most important purchase considerations. With the higher price tag that such properties are associated with, you want to ensure that your investment is well protected. In addition to security status of the neighborhood here are a few features to look for in an Aspen luxury home:

   • Gates and fences. A physical barrier will discourage unwanted visitors from accessing your property and give you greater control over who enters your home.

   • Security alarms and cameras. Advanced security systems such as smart locks, surveillance cameras, and motion sensors can alert you to security breaches.

   • Landscaping. Trees and shrubs can also play a role in enhancing privacy. Plants can block views from the street or neighboring properties, providing an extra layer of protection from prying eyes.

   • Automated blinds and/or curtains. Motorized window treatments can effectively prevent people from looking into your home, especially at night Moreover, such features can improve the home’s energy efficiency by cooling down the home or retaining its indoor temperature.

NAVIGATE THE HOME-BUYING PROCESS WITH A KNOWLEDGEABLE ASPEN, CO REALTOR

Are you ready to start shopping for a home in Aspen? Allow me, Heather Sinclair, to help you navigate the process so you can move forward with ease and confidence. As a real estate agent for 20 years, I have learned what works and what doesn’t, and will use my experience in dealing with high-end clients to help you find the luxury home of your dreams. Find out how I can make it happen. Call 970.948.8834 or contact me here.