A Quick & Dirty Cheat Sheet to Help you Choose The Best Real Estate Investment Opportunities in Park City & Deer Valley
OK, I know what you’re thinking…
You’re tired of hearing your vocab-challenged real estate agent talk about "Location.” However...
Your monthly cash flow prospects and future exit strategy may depend heavily on your Park City area "location," so we sing this same song.
Scarcity Creates Value in Park City & Deer Valley Real Estate
First and foremost, your future re-sale potential increases if you purchase a property that's in limited supply.
It's Supply and Demand 101: You'll love having scarcity on your side. There are only a limited number of properties that have true ski-in/ski-out access, so you'll never have a flood of competition.
Ski-in/ski-out property is Park City's local equivalent of beach-front property for those of you from coastal communities. Stated a little differently, if you can walk out your door and click into your skis, you’re living right on the beach.
Ski Access Drives Rental Demand and Rental Rates in Park City and Deer Valley
For those of you who would consider renting your prospective Park City area property, you'll find that demand for rentals increases as you move closer to the slopes. People vacationing with their families appreciate the convenience of ski-in/ski-out, and they'll typically pay more--sometimes a lot more--for the convenience this type of prime location offers.
Sure, perfect ski-in/ski-out access is convenient, but it’s certainly not cheap. Expect to pay at least $1000 per square foot to purchase a home or condo in Park City or Deer Valley, Utah with true ski-in/ski-out access.
Your Investment Dollars Stretch as You Move Away From The Slopes...
The Next Tier of Ski Access is “Walk To Skiing.” Sellers of this type of property take marketing liberties and often advertise this type of property as ski-in/ski-out, so consider yourself warned!
Don't fall into this marketing trap—we’ll help you clarify specific ski access so you won’t have any surprises.
Even if your ski-in/ski-out access is really "walk-to-skiing," it’s still fantastic to be able to throw your skis over your shoulder and walk a few minutes to a lift or ski run. Think "no traffic jams or parking hassles!"
Lots of properties in Old Town Park City and Deer Valley fall into this category of location. Many of these are great Park City rentals even though they're not ski-in/ski-out.
Of course, if you’re not walking distance to the slopes, you’ll need to ride a bus or take a car skiing, and it doesn’t seem to make much difference if you have to drive 2 minutes or 10 minutes, so...
The "Ski Access" element of location diminishes in importance as you get further from the Park City ski resorts.
If you're a renter, you'll find the least expensive rentals in Park City and Deer Valley area are properties that require that you ride to one of the ski areas. There's a reason for this...
Again, it's simple supply and demand. With many more properties to choose from (ie all the properties that are just too far to walk to one of the resorts), there's more competition. More competition between landlords drives rental rates down.
However, ski access isn't the only element of location worth considering if you're looking at real estate in Park City, Utah.
View is the Second "Location" Key That Drives Property Values in Park City
When you are Vacationing in Park City, Utah...
You’ll want to feel like you’re in the mountains. Needless to say, a "great view" is in the eyes of the beholder.The underlying attributes of a particular property's (home, condo, land) view contributes a great amount to underlying value of real estate in Park City.
You'll want to look out your window and seeing an awe-inspiring natural landscape, whether it’s a mountain peak, a lake, or a scenic forest view.
Rental Rates and Occupancy Increase With A Killer Mountain View
Same goes for rental demand if the prospective guest has the forethough to inquire about the view when they make the reservation. Think "ski area view or a parking lot view from the back of the building?" You'd pay more for the ski run view, right?
Some people like being high on the mountain and looking out in all directions...a "king of the hill" sort of vista. Other people prefer a lower elevation but want to look up at the mountain ridgelines.
It's hard to get excited about paying premium prices for a property that has a great view of the neighbor's garage, or a high-voltage transmission line, or a garbage dump or a freeway that's too close for comfort.
Don't Make This Park City Buyer Mistake Yourself!
I can't recall how many times I have been touring properties with clients who love the interior of a home, but the property is scratched from contention because of poor orientation with respect to neighbor's homes, lack of privacy, or just an inferior lot.
Maybe view isn't important to you, but it will be to your future buyer.
Knowing this, would you take the risk of buying a property with no view?