With its world-class skiing opportunities, stunning surroundings, and welcoming feel, Telluride Mountain Village ticks all the boxes of the perfect mountain retreat. That’s why owning a mountain home here is one of the best investments that you can make.
However, if you plan on buying a home in Telluride Mountain Village, CO, be prepared for a low inventory market. Also known as a seller’s market, a low inventory market occurs when the demand for homes exceeds the supply. And in Telluride Mountain Village, the real estate market shows no signs of slowing down.
Navigating a low inventory market can be challenging, but it’s not impossible. Read on to see how to go about it.
Overview of Telluride Mountain Village, CO real estate market
The pandemic increased the demand for residential real estate, with people buying homes for socially-distanced housing and to make room for home offices. Those living in densely populated urban neighborhoods and cities started searching for homes in vacation destinations like the mountains or the beach.
Colorado has been one of the many areas experiencing a strong housing market in the wake of the pandemic. The real estate options here are limited due to the high demand and low inventory of homes. The Centennial State also has one of the lowest residential property taxes, which has been attracting many investors.
In Colorado’s San Miguel County, the housing market remains as strong as ever. The Reno Gazette-Journal reports that the number of active listings decreased from 129 in November 2021 to 104 in May 2022. The homes for sale here also spent less time on the market as compared to last year, from 110 days to 97 days.
This scenario is not new to Telluride Mountain Village, one of San Miguel County’s most popular towns. Despite the limited number of available homes for sale, the town continues to attract a high number of homebuyers. According to Zillow, Telluride Mountain Village home values have increased by around 14.5% from the previous year.
The decreasing number of home sellers has also contributed to the low market inventory in neighboring Telluride, where homeowners now hesitate to sell their homes since it may be more difficult to find their way back in.
Aside from Telluride Mountain Village, Telluride, and Colorado, low housing inventory is a national trend as well. According to U.S. News, buyers may have limited housing options due to the declining rate of active listings. In fact, the amount of active listings throughout the country decreased by 22% halfway through April 2022.
The shortage of new construction homes played a significant role in creating a low market inventory. Due to lack of supplies, high lumber prices, and a labor shortage, new homes are taking much longer to build (around 8 months or more) than before. Available housing lots and materials like garage doors and appliances are low in supply too.
How to buy a home in Telluride Mountain Village, CO when inventory is low
Buying in a low inventory market can be quite challenging. Since there are less available homes and more potential buyers, expect to shell out more to get the home you like. It’s not uncommon for properties in a low inventory market to sell way above its asking price. A low inventory market is a competitive one—it’s highly unlikely to get a discount or close a deal in your favor since demand is high and inventory is low.
The key to buying Telluride Mountain Village, CO real estate in a low inventory market is to come prepared. Achieve home buying success with these tips and tricks:
If you want your offer to look more attractive to sellers, work on getting pre-approved before shopping for houses. A mortgage pre-approval is a document that shows your creditworthiness and the lender’s willingness to provide funds. During the pre-approval process, a lender looks at your credit history, including your income, debts, and assets. From there, they will determine the amount you can borrow, the interest rate, and the mortgage term.
A pre-approval letter gives you a leg up on the competition by showing the seller that you are a serious buyer and that you are ready to buy their home.
A strategy that gives you a clear edge in a low inventory market is paying cash. This may even give you more negotiating power because the seller is certain that you have the ability to finance your home purchase.
A cash offer tends to be more exciting for sellers because it speeds up the real estate transaction. When you take out a home loan, there is an extensive underwriting process that has to be completed. During the process, you could run into issues that may delay mortgage approval or even cause the transaction to fall through.
With an all-cash offer, the risk of the seller starting over is reduced because there is no need to take out a home loan.
Give your best offer
First impressions are everything in a low inventory market. That’s why giving your best offer from the get-go can work in your favor. An offer that is above asking price will surely catch the seller’s eye. Just make sure that additional amount is reasonable and manageable with your current finances.
An escalation clause can also sweeten the deal. This type of clause tells the seller that you are willing to raise your offer to exceed a higher offer received by the seller until your price cap is reached. Although an escalation clause can make your offer stand out, make sure you have thought this strategy through and that you’re comfortable you’re your offers.
In real estate, a contingency is a requirement that the seller or the buyer needs to meet before the sale can push through. Real estate contracts can contain several contingencies, such as a mortgage contingency, appraisal contingency, and home inspection contingency. They are meant to protect your and the seller’s interests in case of unexpected events, such as the bank’s appraisal falling short of the agreed sale price, or major issues found during the home inspection.
Some buyers, however, may ask to include other contingencies, such as a settlement contingency, which gives the buyer time to close on their present home before finalizing the purchase of a new one.
Get the seller to consider your offer by keeping the contingencies simple. Buyers who ask the seller for too much, especially during a low inventory market, are more likely to be rejected in favor of buyers whose offers are simpler and more straightforward. If you plan on waiving certain contingencies, only remove the ones you are comfortable without.
Flexibility is also important when navigating a low inventory market. Every buyer has a list of needs and wants when searching for their dream home, including location, size, floor plan, and the number of bedrooms and bathrooms.
However, it will be difficult to find a home that checks all the items in your list. Instead, know your must-haves and the features you are willing to compromise on.
A low inventory market is a fast-paced and competitive one. A home for sale in Telluride Mountain Village, CO can get snapped up right after it is listed. If you see a home that you’re interested in, act fast so you don’t miss out on the opportunity.
However, don’t make decisions if you aren’t fully informed or prepared. Since buying a home is one of the biggest financial decisions that you will make, it’s important to learn as much as you can about the property and the market before diving in. Ask your Realtor for advice and consult them at every step of the process.
Work with a local real estate expert
Enlist the help of a qualified real estate agent. Working with the right Realtor can make all the difference when buying in a competitive market. Aside from offering their knowledge and experience, your agent will handle the negotiation process with your best interests in mind.
Having a local expert by your side is a plus as well. With the agent’s extensive local knowledge and expertise, you can have access to inside information that you may not get anywhere else. A local real estate agent knows everything there is to know about the area you plan on buying in, from the best restaurants to the latest housing trends.
Vet a potential Realtor by asking about their real estate specializations, experience, and local market information. Since you are buying in a low inventory market, having a good strategy is crucial. Your agent should have a plan on how to help you reach your real estate goals if the pickings are slim.
In a low inventory market, expect multiple offers, higher home prices, and many interested buyers. To succeed in such a market, the most important tip to remember is to be patient. Don’t feel discouraged if you lose out on a home. Keep in mind that bidding wars and high home prices are a given. The process can be frustrating, but at the end of the day, the outcome will be worth it.
Why it’s worth buying a home in Telluride Mountain Village, CO
A top-notch skiing experience
Colorado is a top destination for skiing and Telluride Mountain Village is undoubtedly one of the best ski towns in the state. It is adjacent to the Telluride Ski Resort, an internationally-recognized, premier mountain resort that offers an incredible skiing and snowboarding experience. Hailed by OnTheSnow as the Best All-Mountain Terrain for 2022, Telluride Ski Resort is most noted for its varied terrain, accommodating skiers of all levels on its 2,000 acres of ski slopes.
Outdoor adventures abound
Telluride Mountain Village is a haven for those who love the outdoors. When you own a home here, the town is your playground. In addition to skiing, residents can enjoy an abundance of activities like hiking, biking, and climbing.
The bike trails in Telluride Mountain Village are categorized into beginner, intermediate, and advanced levels of difficulty. Some trails go for just half a mile while others can reach up to 10 miles.
If you love golf, try out the Telluride Golf Club, one of the highest elevation golf courses in the world. Situated 9,545 feet above sea level, the 18-hole, par 70 course covers 6,546 yards and provides you with spectacular views as you play.
Delectable dining options
When it comes to dining in Telluride Mountain Village, you’re spoilt for choice. Discover a wide variety of restaurants here, serving everything from contemporary American cuisine to classic pizzas. One of Mountain Village’s most notable eateries is Allred’s Restaurant. The unique restaurant features a prix fixe menu and an award-winning wine list.
Privacy and serenity
Nestled in the San Juan Mountains, Telluride Mountain Village offers the privacy and serenity that you need for a true mountain retreat. The beautiful town sits at an elevation of 9,545 feet above sea level, making it the perfect getaway from the hustle and bustle of living in the city. The breathtaking views of the surrounding San Juan Mountains are unlike any other.
Incredible mountain properties
Telluride Mountain Village homes for sale offer the ultimate mountain lifestyle. Expect large windows and wraparound decks that allow you to take advantage of the area’s stunning surroundings. The incredible finishes, wooden sidings, and cozy fireplaces also give the homes a rustic and welcoming feel. Some properties even provide avid skiers with ski-in, ski-out access.
One of the best things about living in Telluride Mountain Village is its prime location. Although the town is surrounded by high mountains, you can still access a variety of shops, restaurants, schools, and medical facilities nearby.
Telluride, its sister town, is just a gondola ride away from Telluride Mountain Village. This unique public transportation system is a 13-minute ride and is free of charge. There’s also plenty to see and do in Telluride. It is home to a lively downtown area, the lush Telluride Town Park, and several hiking trails.
A great investment for the future
If you’re looking for your next real estate investment, a Telluride Mountain Village property is the way to go. Whether you’re searching for a vacation home or thinking about retiring in the San Juan Mountains, investing in Telluride Mountain Village real estate comes with many rewards.
For one, mountain real estate in general is considered as highly-valued property. Since Telluride Mountain Village home values continue to increase year-over-year, you can expect excellent returns on the long-term. Renting out the property when it’s not in use is a great way to earn passive income. You also have the option of renovating and upgrading your mountain property. And when done right, it will increase the value of your home later on.
Buy a home for sale in Telluride Mountain Village, CO today
The best way to navigate a low inventory market is with a group of trusted real estate agents like Team T.D. Smith.
Led by distinguished Telluride Realtor T.D. Smith, the team has over six decades of combined real estate experience and a passion for helping buyers land the perfect home. When you work with Team T.D. Smith, you can expect excellent customer service and constant communication.