What 599k buys in a single-family home in Bayfield, CO

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Here is a 599k home overlooking the Arkansas river in Lamar, AR.

This one would be $1.5 mil or more in my neighborhood. Most folks know what they want vs what they can afford. Nice to have options.
 
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We know Bayfield. We stayed at an RV park there in 2009. In 2013 we rented a house (short term) on the Animus River near there. Great out of the way place. The type of place we like to go. Great scenery & skiing too.

A friend of mine paid for his 4 yrs of college, CSU in Durango, CO, by working in a custom cabinet shop in Bayfield.

In 2014 we paid cash for our getaway 2nd home near Leadville, CO. Its tripled in value.

Supply and demand, go figure?
 
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Having Colorado in an address really seems to add a super premium, even if the location has little to nothing to offer. Checking out homes in Bayfield, CO- quite surprised this town in far southern CO has prices as high as they are. If this location offered great jobs, or something else- and is out West, I can understand the price. But this location appears to offer next to nothing, except bills for propane and a lot of outlay for fuel to go anywhere.

I think the house is worth under half of the listing price- but I will be wrong and likely will sell in the high 500's.


Does the house have a reliable internet connection?
If yes, then it's worth the price in Colorado.

Some random tech person in CA or in NY might suddenly get a wild hair about moving to the middle of nowhere in Colorado, and this house is perfect if it has internet.

So, hence, it's worth $500k, at a minimum.

What YOU think the house is worth is meaningless.
What someone decides to pay for it is all that matters.

Here in Colorado, I've watched house prices just go completely bonkers.
People are moving here from other states for a variety of reasons.
I did. Twice.

I lucked out and timed the housing market pretty nicely when I bought the two houses here that I did.

But the best part is that you don't have to live here.
Just about every state that shares a border with Colorado is cheaper to live in, costs less to buy a house in, and is probably better aligned with someone who wants to retire in peace and quiet, with no one living nearby for at least a mile or so.
And you can drive from that state to Denver in under a day. Such a nice, centrally located city.
Visit the kids whenever you need.

I'm not sure why you're obsessed with house prices being below the price in Jan 2021, but when you finally find a house that you like, you let us know.
 
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What YOU think the house is worth is meaningless.
What someone decides to pay for it is all that matters.
^^^ Bingo🙃
The selling price determines the value

The house value is the selling price and that can be above asking. below asking or at asking.

Good point about the internet, my daughter works remotely and last week was the first time she had to go to her office in months and for just one day, sometimes when she visits us she will stay for a few days from out if state but still works using her laptop. (huge international company)
 
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GON

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Does the house have a reliable internet connection?
If yes, then it's worth the price in Colorado.

Some random tech person in CA or in NY might suddenly get a wild hair about moving to the middle of nowhere in Colorado, and this house is perfect if it has internet.

So, hence, it's worth $500k, at a minimum.

What YOU think the house is worth is meaningless.
What someone decides to pay for it is all that matters.

Here in Colorado, I've watched house prices just go completely bonkers.
People are moving here from other states for a variety of reasons.
I did. Twice.

I lucked out and timed the housing market pretty nicely when I bought the two houses here that I did.

But the best part is that you don't have to live here.
Just about every state that shares a border with Colorado is cheaper to live in, costs less to buy a house in, and is probably better aligned with someone who wants to retire in peace and quiet, with no one living nearby for at least a mile or so.
And you can drive from that state to Denver in under a day. Such a nice, centrally located city.
Visit the kids whenever you need.

I'm not sure why you're obsessed with house prices being below the price in Jan 2021, but when you finally find a house that you like, you let us know.
BC,


You ask some great question and raise relevant issues. Here are some replies:
Does the house have a reliable internet connection?

If yes, then it's worth the price in Colorado.


Fascinating- you assessment is as long as a home has rock-solid high speed internet capability, the home in Bayfield listed for 599k is well in fact worth the listing price. You’re educating me. The house did not have location- and didn't have many other things expected at a 600k price point in a boring, bad weather location in a massive landlocked state




Some random tech person in CA or in NY might suddenly get a wild hair about moving to the middle of nowhere in Colorado, and this house is perfect if it has internet.
I get this. Although my Daughter lives in a Denver suburb of new upper middle class houses, a drive through her development on a Sunday afternoon in the fall one will see San Francisco 49 flags, Chicago Bear flags, KC Chief flags, Green Bay packer flags, NY Giant flags, New England Patriot flags- but not a single Denver Bronco flag. Shows a huge migration to the Denver area- and your post may imply throughout the state.


So, hence, it's worth $500k, at a minimum.
Sure looks that way- baffles my mind, (I am in my late 50’s- I may not understand all the dynamics). For remote work, I can identify a lot of significantly nicer homes in the middle of nowhere for less money. Although places like Silicone Valley, Los Angeles, and San Diego have average home prices multiples of the Bayfield home- the people from California with deep pockets are not likely dumb when it comes to basic standards of build in a home. If this home was in Vail, Colorado Springs- etc.- I get the value. I don’t get it in Bayfield. But I fully understand and acknowledge your point.

What YOU think the house is worth is meaningless.
Yes, I get it. I go hungry in airports, as I am unwilling to spend $6 on a bag of gummi bears, that sell at Wal mart for $1.29. But those gummi bears and the like do sell all day long at the airport. I think the gummi bears are worth $1.29, being at the airport I understand a $1.00 per bag premium. I don’t understand the $6 price. And I find it funny the airport doesn’t even list the price of gummi bears or like snacks- apparently, they have ample buyers at the airport that will purchase the super premium priced product regardless of price.

What someone decides to pay for it is all that matters.
I get it. No argument from me. Doesn’t mean I can’t be shocked at how a home like the Bayfield home is priced. I doubt I am the buyer the broker is looking to market that home to.

Here in Colorado, I've watched house prices just go completely bonkers.
People are moving here from other states for a variety of reasons.
I did. Twice.
I get this trend. I think it started in the 1800s and continues today as strong as ever- go west young man.

But the best part is that you don't have to live here.
Usually when I post about a home price in a state- there is a motivating factor. I am soon to retire from my current job, but plan on working a full-time job post retirement for five to 10 years. A handful of recruiters have my resume and send me positions they think I may match well for. I have been sent about a half dozen positions in Colorado. I have also been sent positions in California, Arizona, Oregon, Texas, Minnesota, and New Mexico (I am also sent positions east of the Mississippi but don’t access those positions).

What I do when I receive a position, is look at available housing, and the salary, and divide the price of a well maintained 2,000 +/- sq foot home, divided by the salary. Colorado is consistently the most expensive housing market- I can’t comprehend the justification for the higher premium of home prices on a macro level in Colorado- but I see the sales figures and you are right, Colorado homes are selling at the super premium- even in locations that I just don’t understand.


I'm not sure why you're obsessed with house prices being below the price in Jan 2021, but when you finally find a house that you like, you let us know.
I use JAN 2021 as a random but understandable price point- to highlight home prices are not falling with the higher interest rates. Home sales are falling, but not the prices of the homes. Why I chose JAN 2021 was for (1) interest rates on or about JAN 2021 were at the lowest point in this century- two to two and a halve percent (I refinanced at 2.25% the last day in NOV 2020). (2) the medical issue identified in MAR 2020 did not end the world- yet new home starts significantly collapsed and a large quantity of new homes being built were not able to be completed on schedule- thus a perfect storm for high home prices, less inventory, record low interest rates, and buyers off the sidelines looking to buy- and motivated. So when people say today’s home prices are collapsing- one has to have a static measuring point. I find no better point to measure if home prices are collapsing that JAN 2021. And as I posted many times, I can’t find a market (on a macro scale) where homes are selling for less today than JAN 2021. And I am now seeing home selling in a few markets, that did not enjoy the massive price increases- having homes sell for more today than in the Spring/ Summer of 2022.
 
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The problem is that Colorado has had a large influx of Californians due to a number of tech companies moving here. When a Californian can sell their home for a million or so paying 550-600k seems like a bargain.
 
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There was zero put down of a community. The post suggests that an area with few opportunities for a high paying job, far from a major airport, etc- can command such a powerful price. If the home was near water, a major metropolitan area, or had a unique quality of life- I can understand how that can impact the price of a home. This area does not offer much of those factors.
"Near high paying job" isn't as much as before a requirement with the work-from-home opportunities since the pandemic.
 
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The problem is that Colorado has had a large influx of Californians due to a number of tech companies moving here. When a Californian can sell their home for a million or so paying 550-600k seems like a bargain.

Don’t forget houses in the NE that are easy $1M+ and those people sell, move to the SE part of the country and buy houses cash.
 
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CKN

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Hey GON,

I know you like fixing up beat up cars, so I think I have the perfect house for you in Colorado:


I think its near your preferred price range, but it definitely needs a whole lot of work.
You get all that mold at no extra cost................
 
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Hey GON,

I know you like fixing up beat up cars, so I think I have the perfect house for you in Colorado:


I think its near your preferred price range, but it definitely needs a whole lot of work.
Dacono isn't too far from me. It used to be in yhe boonies but as everyone in Boulder county moved to weld their prices have skyrocketed
 
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Dacono, CO
You get all that mold at no extra cost................
Well, if you want a house in CO for under 400k, today, you're a bit limited in the choices available.

Plus, we've seen the work that GON puts into the vehicles he buys and rebuilds, so this should be way easier.
It was built in 2008, so we're talking about a modern house, and not something from the 1950's with aluminium wiring, lead paint, and asbestos to worry about.
 
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GON

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Hey GON,

I know you like fixing up beat up cars, so I think I have the perfect house for you in Colorado:


I think its near your preferred price range, but it definitely needs a whole lot of work.
BC,

Thanks for taking the time to post that home. That home is not a match for a handful or reasons- the primary reason is no first-floor master bedroom. Not sure my knees will hold up in my older years to a second-floor bedroom. But the idea of a home that needs a complete gut out for me is not an issue- it just has to be a home worthy of the gut out. As you mention, I rebuild flooded salvage Mercedes as a hobby. I don't rebuild Chevrolet Aveos.... Both a S class or a Aveo that are salavage will require like work- but if I put in the work I want a Mercedes in the end- not a Aveo.
 
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