The most challenging time ever to buy a house.

Buying a home in a mountain town is more than just shelter: you have to have it in order to achieve a certain lifestyle. Small, safe, fun, great access to recreation, healthy life, job opportunities… Small mountain communities offer all of the above.

But for some, the dream can quickly come to an end if they don’t secure housing. The end of a lease is an incredibly stressful time for any tenant in the valley. The supply of housing is scarce compared and demand is large. Meanwhile rents are just set to the very max of what the tenant can afford.

It makes renting a vicious cycle where all your money goes into your rent, and you never seem to get ahead enough to save for a downpayment. In the same time, home prices follow the same trajectory: always higher, to the limit of what buyers are willing and able to pay. For most, sale prices seem so outrageous that “waiting” seems to be the wise thing to do. Unfortunately “waiting” keeps you in a vulnerable position, and the market charges ahead without looking back at you. How do you break this cycle?

Financing

DO: Get on the start line: get in touch with a lender, get prequalified for a loan. Stay in touch with them so you know your financing is ready when you find the right property.

DON’T: Give up on real estate and buy a brand new truck.

The first thing to do is understanding how to make it to the start line. Reaching out to a lender, and understanding what you can qualify for, is the first step. There are a lot of programs to help buyers with little money down.

My recommendation would be to work with somebody local who knows how to be proactive and close deals. Mike Picore is typically who I recommend.

Having the right expectations

DO: Find in what area you can buy within your budget (determined by the lender on step one), and study it: with is the best location within that area? The first home you’'ll buy won’t be the dream, but it’ll be yours, and it’ll take you one step closer to your dream home.

DON’T: Sit on the sideline, talking about how expensive real estate is, while waiting for a unicorn to come up on Zillow.

So many have a clear idea of what the dream property looks like. Acreage, privacy, nice home on the river… I’m all for dreaming big. But most dream are achieved taking relentless little steps forward. If you are waiting for the big market crash that will make it all possible for you to buy the perfect property from one day to the next, you are in for a disappointment.

Going for 0 to 100 is not how real estate works. Most homeowner keep their home on average 13 years. But most first-time buyers keep their first starter home for only two to five years. You need to get that first home, ride with the market, and use it as a step up to your next property.

Renovating

DO: Once you have a solid understand of the area, find the worst house of the best neighborhood, and fix it up! With Youtube, you can learn how to do almost anything.

DON’T: Fall for the shinny object: and brand new house at a bad location.

With $500 worth of the right tools, and your time and energy, you can add tens of thousands worth of value to a home! It’s a lot quicker than saving money!

The first step is to focus on the location: buy the worst house of the best area. An old house in a good neighborhood is unrealized gains waiting to be harvested… By you!

Once the house is renovated, you will find yourself with equity to play with. you can then sell the home and move up to a better location, and repeat the process… Or refinance the house at its new value, and put cash in the bank. It’s a lot quicker than saving money!

Rental space

DO: Find a home where you can create a rental space.

DON’T: Be the guy someone’s tenant for too long.

Finding a house that part of it can be rented is the way to go. This way you will benefit from the appreciation in both prices and rents. But even better is finding a home that can’t be rented in its current state, but that you can modify to create a rental space. You’ll buy it for less than a home that already has one. Split level homes for example, and not as desirable (therefore cheaper to buy), and are usually compatible with the creation of an independent living space.

I know that the task can be daunting, but there is no way around it! The genius is out of the bottle, and everyone knows how awesome it is to live up here. If you want to stay in the valley, you’ll have to deal with expensive real estate. Reach out if you need help, we’ll make it happen!

Matt Dumoulin

(970) 456-5790

MattRealEstateBroker@gmail.com