Ep. 12 Mountain vs Metro Area Homes

Interactive Transcript

spk_0 Hi, I'm RJ Baxter with RealStateTalkDemper.com and I'm here with Doug Pike of Colorado

spk_0 as Home Real Estate in Evergreen and Doug is joining us today to talk a little bit more

spk_0 about mountain properties and what to think about if you're buying a house in a place like

spk_0 Evergreen.

spk_0 But before we get into that, tell us a little bit more about yourself, Doug.

spk_0 I'm the owner of Colorado's Home Real Estate Group.

spk_0 I've opened that brokerage firm about three years ago.

spk_0 I've been in real estate for 14 years total.

spk_0 I specialize in the mountain area I grew up in Evergreen and primarily work in the Evergreen

spk_0 area, High On Hills, High On, Troutdale.

spk_0 Really try to focus on providing consumers with a lot of information about mountain properties

spk_0 because they're so different from metro area properties.

spk_0 And what made you get interested in real estate?

spk_0 I just decided to get into it.

spk_0 I was honestly kind of born into it.

spk_0 My dad was in a form of land conservation in Evergreen for many years and my mom was in

spk_0 real estate for 30 years.

spk_0 So I had a lot of interesting conversations around the dinner table and not really sure

spk_0 I had any other option to do anything else.

spk_0 Yep, sometimes it's that way.

spk_0 Well awesome, we appreciate you being on the show today.

spk_0 Thanks for having me.

spk_0 You have a unique perspective on mountain properties living up there your whole life, doing business

spk_0 up there.

spk_0 So we thought it'd be really valuable that people listen to the show to talk a little

spk_0 bit more about what to expect with properties up there because it is different.

spk_0 It's definitely a different market.

spk_0

spk_0 So I guess to start off, what are some of the differences between homes that you see in

spk_0 the mountains versus in the city, some of the general differences?

spk_0 Well if you make just general comparisons, let's say Highlands Ranch or Lakewood or

spk_0 Arvada, a lot of those homes have all been built by developers that did the same things,

spk_0 same floor plans, same construction type and Evergreen is completely different.

spk_0 A lot of Evergreen was especially from the 60s, 70s and 80s.

spk_0 An individual bought a piece of land and they went and found an architect and they went

spk_0 and found a builder and all things are very, very specific to those homes.

spk_0 So where you can build a general consensus for what you'll find in homes in the metro

spk_0 area, Evergreen it truly is.

spk_0 Each individual home can be completely separate.

spk_0 There are some areas of Evergreen that were built in the late 80s and 90s and 2000s that

spk_0 are a little bit more conforming.

spk_0 But universally people move to the mountains because they're looking for something unique,

spk_0 they're looking for something to make their own and a lot of homes in Evergreen really

spk_0 offer them that.

spk_0 Yeah, it's definitely unique up there.

spk_0 Very unique.

spk_0 We see a lot of interesting things.

spk_0 And from what I've experienced it's very similar in other mountain areas, Conifer, Indian

spk_0 Hills, Pine Junction, Bayley, absolutely.

spk_0 All those areas.

spk_0 And it is.

spk_0 People move up there so they can kind of do their own thing a lot of times and that's

spk_0 what the majority of mountain homes provide is an opportunity for people to kind of make

spk_0 a home their own.

spk_0 And when they were originally built, they were built to make the home their own.

spk_0 Yeah, for sure.

spk_0 So what kinds of things do people have to be aware of in the real estate transaction?

spk_0 Sure.

spk_0 Things like the lot.

spk_0 Yeah, so lot lines are very unusual in Evergreen oftentimes where again where you would

spk_0 see in the metro area, you've got a subdivision in almost all the lot lines are standardized

spk_0 or conforming very unique in Evergreen.

spk_0 You could have one point of your property that's 100 yards away from the house and another

spk_0 point of your property that's 20 yards away from the house and just very unique lot sizes.

spk_0 That comes into play for people who want to do permitting or build garages or additions

spk_0 or things like that.

spk_0 They need to be aware of where all of the lot lines are.

spk_0 A lot of times also there are easements for access and ingress and enress or when a neighbor

spk_0 is going to access your property to get to their home because things are not as developed

spk_0 or not developed in a straightforward way with where the county roads go versus where your

spk_0 driveway is, how utilities are coming into a property both water and sewer or electrical

spk_0 and gas.

spk_0 They're just sort of a lot of things that are kind of unique.

spk_0 Well, and we see a lot of situations where things are grandfathered in too.

spk_0 Yes, absolutely.

spk_0 Before some of the rules were put into place.

spk_0 And I mentioned the roads oftentimes, especially from a lending standpoint, that can get unique

spk_0 because you may have some private roads that aren't maintained by the county.

spk_0 For sure.

spk_0 Everybody wants to know, well, if there were to be something that went wrong, if we need

spk_0 emergency vehicles or a fire truck to come in here and this is a road that's not maintained

spk_0 by the county and we have a snowstorm, how's that being handled?

spk_0 And a lot of times I know that that lenders are interested in that too.

spk_0 Oh, for sure.

spk_0 And they want to know who's going to maintain the road.

spk_0 All these kinds of things can be issues that come up.

spk_0 And then as you mentioned in the lot lines, I mean, we've had situations where someone

spk_0 has a lot where there's a real skinny part of the lot where the driveway goes down.

spk_0 We had one in particular near Pine where at the very end of the driveway it went across

spk_0 another lot right before it hit the street.

spk_0 And no one had the easement for the driveway and it was quite a process to get that track

spk_0 down.

spk_0 It really, the mountain area is modernizing a lot more, but for a long period of time

spk_0 it was truly the wild west.

spk_0 And if this was the way that we did things, then it was fine.

spk_0 And nobody asked any questions.

spk_0 Well, and that's how it was with this particular one.

spk_0 It was just kind of like, well, we've always driven across there.

spk_0 It's no big deal.

spk_0 And the neighbors like, yeah, it's no big deal.

spk_0 And from a lenders perspective, they want something in right.

spk_0 Yeah, they want to know.

spk_0 Because they want to know that the neighbor's not going to just solve a sudden decide

spk_0 to put up a fence.

spk_0 Yep.

spk_0 And then you can't get to your house.

spk_0 Yeah, you can't get to your house exactly.

spk_0 Definitely.

spk_0 So there's just a lot of pretty unique animals in the mountain area that go beyond just

spk_0 the home itself.

spk_0 For sure.

spk_0 What about, people ask us a lot about well and septic.

spk_0 What should people think about with that?

spk_0 Lot to be aware of.

spk_0 Again, to kind of piggyback from the lending standpoint, you always want to make sure that

spk_0 you have potable water.

spk_0 And a lot of people don't think about that, especially if you're coming from the metro

spk_0 area, there's usually a municipal district that just makes sure your water is potable

spk_0 for you.

spk_0 They do all of them.

spk_0 And the testing, they make sure that the mineral content, etc., is all okay.

spk_0 There's no one to do that when you have a well.

spk_0 You're really responsible for that.

spk_0 So you always want to do well testing to make sure that you don't have any bacterial problems

spk_0 in your well.

spk_0 Some folks are really concerned about radon.

spk_0 You think that radon is something that just appears in your home as radon gas, but it can

spk_0 also appear in your water.

spk_0 So people are well aware of that.

spk_0 Different types of metal contents in your water.

spk_0 So you can do a lot of very exhaustive testing with a well.

spk_0 And a lot of times, lenders are wanting to make sure that there is potable water to the

spk_0 home as well.

spk_0 If you've got a really high bacteria count in your well, something to be concerned about.

spk_0 And there's always different ways you can remediate it.

spk_0 But something that as a new home buyer, you really, really want to be aware of is doing

spk_0 your appropriate well testing.

spk_0 And then septic, septic's just an entirely different animal as well.

spk_0 Septic tanks usually need to be pumped out every couple of years.

spk_0 There are recycling septic tanks, gray water septic tanks, there are leach fields.

spk_0 There are all kinds of different sanitary systems in the mountains that are dependent on the

spk_0 lot again that are dependent on where your neighbors are, where your well is.

spk_0 You have to have a certain distance from your well for septic systems.

spk_0 And that's totally different than the metro area where you just have a sewer.

spk_0 And you don't really worry about it.

spk_0 So, there's a lot more proactive requirements that need to be, that homeowners need to be

spk_0 aware of when they have septic systems and when they have wells to make sure that everything's

spk_0 functioning properly.

spk_0 And it's not a scary thing.

spk_0 It's just sort of a maintenance thing.

spk_0 And that's one of the things that you get when you move to mountains.

spk_0 For sure.

spk_0 And laws have changed through the years.

spk_0 And it's again the grandfather thing.

spk_0 We've seen situations where maybe the leach field from the septic is too close to the well.

spk_0 But 50 years ago that was okay.

spk_0 And they make these changes in regulations for a reason because it's not sanitary.

spk_0 Yep.

spk_0 The science tells us a lot.

spk_0 And the most part, the counties, Jefferson County, Park County, a lot of these counties

spk_0 are starting to recognize the importance of these things.

spk_0 So they're also putting some requirements on transactions.

spk_0 Jefferson County has a use permit requirement, which says if you're going to sell a home,

spk_0 you have to get a use permit through them.

spk_0 And through that process, you get a septic inspection, a approved provider comes out and

spk_0 pumps the tank for you and inspects the tank and makes sure there are cracks, things like

spk_0 that.

spk_0 And then that goes to the county and the county says, yeah, you're okay to buy this house

spk_0 because we've inspected it.

spk_0 So there are really starting to be some good checks to the system as well, where as a consumer,

spk_0 you're not just out on your own trying to figure this out and making sure that it's okay.

spk_0 Well, and health and regulations aside, you also don't want a $10,000 problem six months

spk_0 after you've been found.

spk_0 Oh, absolutely not.

spk_0 Well, and again, the mountains are so unique.

spk_0 I've seen $40,000, $50,000 out of the insurance, where the engineering behind it is pretty

spk_0 exhaustive.

spk_0 So yeah, they can be some unwelcome surprises.

spk_0 Always do your home inspections.

spk_0 Be aggressive in your home inspections.

spk_0 Yeah, yeah.

spk_0

spk_0 Anyone that thinks they don't need a home inspections craze, especially in the mountains.

spk_0 Absolutely.

spk_0 Yep, there are professionals there for a reason.

spk_0 Absolutely.

spk_0 So here's a question we get sometimes, and I'm sure you have clients that ask about this.

spk_0 How difficult is it to buy a lot in a mountain area, especially Evergreen, Conifer, and

spk_0 build a house?

spk_0 Well, it's not difficult.

spk_0 It's expensive.

spk_0 So just kind of these numbers always change from a trending standpoint.

spk_0 But lots are reasonably priced depending on what you want.

spk_0 Ladder lots, lots that are located closer to townships or more traveled areas, obviously,

spk_0 are more expensive.

spk_0 The cheaper lots usually have more costs required to them.

spk_0 So you could find a lot that is great acreage and not very expensive, but it's probably

spk_0 on a hill, a steep hill.

spk_0 So that means if you're going to build, there are a lot of costs associated with engineering

spk_0 and earth moving and all of those different components.

spk_0 I have a lot of clients that, especially how Colorado's market is right now with the scarcity

spk_0 of the inventory, we'll say we're just going to buy a lot and we're going to build.

spk_0 What I always have them do is take a look at the numbers.

spk_0 So using North Evergreen, for instance, price per square foot is anywhere between $215 to

spk_0 $250 a square foot.

spk_0 To build, you're probably $315 to $350 a square foot.

spk_0 So you're not necessarily getting a deal if you want to buy a lot and you want to build

spk_0 compared to finding a home that is already a fit for you.

spk_0 And that's just kind of a, there are a lot of different factors that go into that, but

spk_0 it's labor scarcity and it's cost of materials and all of those sorts of things.

spk_0 And all the infrastructure we were just talking about putting well in septic in or running

spk_0 your gas lines.

spk_0 Those are all really, really expensive things that a lot of times buyers don't think about

spk_0 outside of just building a home and getting your walls up.

spk_0 So it's really something to consider as far as cost are concerned.

spk_0 It's great to be able to make it your own, but you certainly pay for it.

spk_0 It's going to have to be someplace that you, just because you want to build a new house

spk_0 that's one that you designed would be probably the primary focus.

spk_0 Yep.

spk_0 And there's just a lot to consider.

spk_0 Like everything else in the mountain area, everything has always been built for the highest

spk_0 and best use.

spk_0 So the really, really attractive lots are usually, really expensive.

spk_0 And the cheaper lots that you find that are a little bit more affordable, that are ones

spk_0 that you can make your own just have more requirements to them.

spk_0 Mm-hmm.

spk_0 Interesting.

spk_0 And it'll be interesting also to see what happens with, this is a whole nother podcast

spk_0 probably with the tariffs.

spk_0 If that continues, what that's going to do are raw materials and building costs.

spk_0 Yes.

spk_0 And actually, just came out briefly that for the first time in 2018, the costs of wood

spk_0 materials dropped third quarter, which was actually nice.

spk_0 They didn't drop a lot because they were way up for 2018.

spk_0 Yes.

spk_0 But it'll be interesting to see if that has any type of impact.

spk_0 Because otherwise, yeah, the tariffs have had a huge impact on cost of construction.

spk_0 And then you compound that with the labor shortage in Colorado.

spk_0 Yeah.

spk_0 And it's really expensive.

spk_0 Well, I know that with some of the natural disasters that were happening like the Florida

spk_0 hurricanes, they were pulling labor from here too and paying people twice what they

spk_0 made here.

spk_0 So then there was even bigger shortage for builders.

spk_0 Yep.

spk_0 There was a builder.

spk_0 I think it was, I can't remember which builder it was, but up in the Candela's area that

spk_0 I was talking to recently.

spk_0 Sure.

spk_0 Well, not recently.

spk_0 This is probably eight months ago.

spk_0 And they had their entire operation practically halted for a month or two because of a natural

spk_0 disaster.

spk_0 Yep.

spk_0 That happened with Houston last year, with the floods in Houston.

spk_0 They just, they came up here and pulled it.

spk_0 That actually might be it.

spk_0 I think it was more like 12 months ago when it was happening.

spk_0 Yeah.

spk_0 And they just took all the labor and pulled them down.

spk_0 And they had to push closings on all these new builds.

spk_0 Yep.

spk_0 Just because they didn't have the labor.

spk_0 Yep.

spk_0 Exactly.

spk_0 Yeah, that's another component is you buy a new build home.

spk_0 You might be scheduled for a three month or a six month closing.

spk_0 But if you read that contract carefully, it's a year closing that they have the right

spk_0 to delay or two year closing that they have the right to delay.

spk_0 So not just evergreen, but read your new build contracts carefully.

spk_0 Yeah.

spk_0 Some builders deliver on it, but it's all too often they delay it.

spk_0 For sure.

spk_0 Yeah, absolutely.

spk_0 Yeah.

spk_0 Well, awesome.

spk_0 Any other thoughts on mountain properties before we wrap it up here?

spk_0 No.

spk_0 Just, it's very important for consumers to make sure that the representation they have in

spk_0 the process is someone who's familiar with mountain properties.

spk_0 This isn't a thing like the metro area where you can kind of jump on Google and get to

spk_0 know a neighborhood in 15 minutes.

spk_0 You really need to make sure that the agent that you're working with in the mountain area

spk_0 understands mountain properties.

spk_0 There's just so much that goes into the process that's beyond what we've talked about.

spk_0 That consumers a lot of times can just kind of, as you said, you don't want any surprises.

spk_0 And consumers can be in their home for a couple of months and go, I sure wish I knew about

spk_0 all that.

spk_0 So just make sure that whomever you're working with, you understand mountain properties

spk_0 and all the complexities to that.

spk_0 Well, and all the professionals evolve, lender, insurance, all this stuff is important

spk_0 with understanding how those processes work so you don't run into problems.

spk_0 Yes, it's all unique.

spk_0 It's absolutely very unique to mountain properties and assembling a team that understands those

spk_0 properties to your point from insurance to inspection to lending to your realtor.

spk_0 They all need to understand what they're getting into.

spk_0 Well, and then just understanding living in those areas and what to expect in different

spk_0 neighborhoods.

spk_0 If you're new to the area, it's so important because really, I mean, evergreen, for example,

spk_0 we got the three-way stoplight downtown.

spk_0 If you're on the south side versus the north side, it could be 25-minute difference driving

spk_0 to Denver.

spk_0 Well, that's that instead of Googling something, I've got clients that'll work in the Denver

spk_0 Texan or downtown and they want to live in the mountains and they said, well, I Googled

spk_0 my drive time.

spk_0 And it was 45 minutes and I can do that.

spk_0 And I said, well, if you Googled size that, but if you have a snowstorm, that drive time

spk_0 doubles and you're going to have plenty of snowstorms.

spk_0 Or, yes, to your point, if you get stuck at that stoplight and there's 15, 20 cars, that

spk_0 adds 25 minutes to your commute.

spk_0 So it is really?

spk_0 Or a herd of elk?

spk_0 Yeah.

spk_0 Or a herd of elk, which we'll see all too often.

spk_0 Yep, plenty of herd of elk.

spk_0

spk_0 Yeah, because if you're just looking at properties online, in Evergreen, for example, there's

spk_0 great deals upbrook forest or south side, but comparatively, they seem like good deals

spk_0 compared to north side, but people pay more for the north side because of that reason.

spk_0 Yep.

spk_0 You're exactly right.

spk_0 So having someone that understands those neighborhoods and how long it's going to take to get down

spk_0 the hill or to different shopping to the grocery store and schools and all that kind of stuff

spk_0 is so important.

spk_0 All important decisions.

spk_0 And again, to your point, you just don't want those surprises after you bought the house.

spk_0 For sure.

spk_0 You want to know ahead of time.

spk_0 Yeah.

spk_0 Well, we'd like to end each podcast with three questions to all of our guests.

spk_0 So I'm just going to ask them to you.

spk_0 Sure.

spk_0 The first one is, what's your favorite place to go in Colorado?

spk_0 There is a pass outside of Boinovista on the way to...

spk_0 It's called Cottonwood Pass.

spk_0 It's sort of you can get to Ganesin in a bunch of different areas out there.

spk_0 It's a lot busier now, but when I was growing up, the place my parents always took us to

spk_0 and there was just never anyone up there and you can't bring trips and fishing trips.

spk_0 That's a pretty neat place.

spk_0 I really like Cottonwood Pass.

spk_0 That is a beautiful area.

spk_0 I love those collegiate peaks down there.

spk_0 Exactly.

spk_0 Yep, it's a beautiful area.

spk_0 Awesome.

spk_0 The next one is, do you have a book that you'd recommend to our audience?

spk_0 You know, since we're talking about Colorado specifically with the differences in areas,

spk_0 John Fielder has a set.

spk_0 He's a photographer.

spk_0 He's a Colorado guy, but he's a photographer that does these really neat series of books

spk_0 that he gets old pictures, 150-year-old pictures, and then he goes to all of those same places

spk_0 currently within Colorado and he does sort of have been in now.

spk_0 It's a big series by John Fielder.

spk_0 They're just really cool to see the transition of Colorado and all of the different areas

spk_0 and what's happening.

spk_0 He'll do rural areas, he'll do metropolitan areas.

spk_0 So it's certainly not a self-help or kind of a novel, but they're really, really cool books for Colorado.

spk_0 That sounds neat.

spk_0 That sounds like a really good coffee table.

spk_0 Yep, cool.

spk_0 We have a couple on our coffee table.

spk_0 Nice.

spk_0 And then the last question is, if you could have any superpower, what would it be?

spk_0 I would probably want to be able to control time.

spk_0 I've got a three-year-old and a five-year-old, and stuff just goes too fast.

spk_0 So that's what I would pick.

spk_0 Yeah, you minor 10 and 12 now.

spk_0 I know what you're talking about.

spk_0 We are already eyeing down high school.

spk_0 Yeah.

spk_0 It's crazy.

spk_0 It seems surreal.

spk_0 OK, well, thank you for being on the show, Doug.

spk_0 That was really interesting information.

spk_0 So once again, my name is RJ Baxter with realstaytalkdenver.com.

spk_0 And this is Doug Pike with Colorado's Home Real Estate.

spk_0 Thanks for joining us today and have a great day.

Ep. 12 Mountain vs Metro Area Homes

Interactive Transcript

Topics Covered

Related Episodes

212: How to manifest your dream home

Jessicas Food Reviews and Phone Check

Zac Young Serves Up Scares and Sweets on Halloween Baking Championship

What is Minecraft's Suspicious Stew?

Share Episode