Prestige Killington

Appraisals have become one of the biggest obstacles to buying real estate.  While  appraisers were, in previous markets, under pressure to inflate values,  the pendulum has now swung to the other extreme.  For example, Prestige Real Estate recently sold a condominium for $390,000. The exact same style of unit, in the same complex, sold for $470,000 less than a year ago and there have been no other sales since. Despite this perfect “comparable” sale, the new appraisal came in at only $400,000!  If the buyer was not prepared to pay 30% down at closing, we doubt that financing would have been available due to that appraisal. 

Unfortunately appraisers receive a copy of the Purchase and Sale Agreement prior to conducting their appraisal and they are greatly influenced by the sale price listed on the contract.  Appraisers are also noting the small volume of sales to justify their conservative opinion of values. To make matters even worse, lenders are now hiring appraisers who have never been to Killington (some from out of State)  to perform these appraisals.  A good appraisal is in many cases now left to the luck of the draw!

Freddie Mac and Fannie Mae have come out with a new “Market Conditions Addendum to the Appraisal Report” (April 1, 2009). Once an appraisal is complete, it may need to be examined by “appraisal reviewers” who have the authority to call for a complete review of all condo documents and by-laws. Such a review leaves decision making powers to bureaucrats sitting in offices in other parts of the country who have no practical or real experience with Killington real estate market.   

Our National Association of Realtors is lobbying Fannie Mae and Freddie Mac to relax many of these new rules.  This will take time and we do not see resolution of this in the near future.  So even when buyers start to feel more comfortable about buying in Killington and we begin to write contracts, we are a long way from closing on a deal if the purchase is subject to financing.

There have been seven sales in Killington Vermont since January 1, 2009: 3 homes have sold; 3 condominiums have sold and 1 parcel of land has sold.  There are currently seven properties (1 Killington Home and six Killington Condominiums) under contract and scheduled to close in the near future.  There are 51 homes listed for sale, 125 condominiums on the market and 21 parcels of land listed for sale in Killington.

After a meeting of the Killington Planning Commission on May13th, the Commission voted 6-3 to publicly warn a meeting whereby the Commission will review SP Land’s application for a Planned Unit Development (PUD) permit and Conceptual Master Plan Review for the long-awaited Killington Ski Village.  This is the first step in what I expect will be a long application, review, and approval process which will involve both the town of Killington and the state of Vermont.

There were arguments by the Killington Town Planning Manager and Planning Commission members both for and against the public hearing.  The argument against the public hearing was led by Dick Horner, town Planning Manager because he felt that the application was incomplete.  Mr. Horner felt that the application lacked the level of detail necessary to fully evaluate the plan and the town would only get “one opportunity to get it right.”  David Rosenblum, Chairman of the Planning Commission argued for the public hearing by suggesting that a project of the magnitude proposed by SP Land (a 20-25 year phased-in development) could not be expected to have every detail determined upfront.  Mr. Rosenblum felt that the application should be publicly reviewed and discussed.  At that time, the Planning Commission could identify additional information/detail that would be required to approve the plan.  The idea of a “conditional” approval was also discussed and acknowledged as a possibility.

The result of the discussion was the warning of a public meeting at the Killington town offices on Wednesday, May 27th at 7:30pm.  I urge anyone and everyone with an interest in the future of Killington to attend this meeting.

For the Rutland Herald prospective on this meeting…

There have been six sales in Killington since January 1, 2009: 3 homes have sold; 2 condominiums have sold and 1 parcel of land has sold.  There are currently ten properties (five Killington Homes and five Killington Condominiums) under contract and scheduled to close in the near future.  There are 49 homes listed for sale, 131 condominiums on the market and 23 parcels of land listed for sale in Killington.

On May 13^th at 7:30 p.m. the Killington Planning Commission will discuss the Planned Unit Development (PUD) and Conceptual Master Plan Application for the ski village at the base of Killington Ski Resort.  Many believe, as do we at Prestige Real Estate of Killington, that this development with a mix of residential, commercial and skier/rider services is absolutely crucial to Killington’s future

The first phase of the village includes 157 condominium units, replacing Snowshed and Ramshead base lodges with a 75,800 square foot base lodge and the development of approximately 33,000 square feet of commercial space.  An additional 18 single family homes and 24 attached homes are planned for in the Rams Head Brook area.  

Planning Commission approval for this is required before SP Land (the developers) can move on to the state land use permit under Act 250.  SP Land has been developing these plans for over 2 years and is hopeful that the result of this meeting will enable them to take this next step. 

Prestige Real Estate of Killington urges the Planning Commission to approve these plans and facilitate the development of this village in all ways possible.

In our newsletter dated April 30, 2009, we reported the “worst period for real estate sales in Killington that we can ever remember.”  Only three properties sold in Killington during the entire 1st quarter of the year. 

Fortunately, I can now report, just a month later, that activity has noticeably picked up.  Since March 31st, 2009, one condo sold and there are five more currently under agreement.  Activity has picked up in the market for Killington homes as well.  Two homes sold in Killington since March 31st, and there are five additional homes under agreement. 

I feel that this is a sign of increased confidence in the economy by prospective buyers.  In addition, I believe this is an indication that buyers feel that market has reached bottom.  I anticipate an even greater increase in activity as we move into the summer buying season. 

Continue to watch this blog for further updates.

Killington Resort announced that it will extend the 2008-09 ski and snowboard season to Saturday May 2, 2009, weather and conditions permitting.

The Town of Killington Economic Development and Tourism Commission announced that on July 4th a Triathlon will be held in Killington.  It will consist of swimming, biking and running. 

Only three properties sold in Killington, VT in the first quarter of 2009.  A small house on Rt 100 South sold for $145,000; a 2 bedroom/2 bath condominium at The Woods sold for $164,000; and a parcel of two 10-acre “failed” lots sold for $35,000.  Although showing activity has picked up since January, it has not yet translated into purchase contracts.  For the full story …

The results are in!  2008 had the lowest number of condominium and  home sales on record.  Only 48 condominiums sold in all of 2008 and only 8 homes sold during this same period.  The lowest priced condominium that sold was a studio at Mountain Green for $50,000 and the highest price paid was a ski in/ski out Topridge duplex town home for $750,000.  The lowest priced paid for a home in Killington was $228,000 for a 2 bedroom/loft home on Terrace Drive and the highest paid was $515,000 for a 6 bedroom (fixer upper) ski in/ski out home located on the Great Eastern Trail.  Land may have been the only bright spot with 5 lots sold ranging in price from $76,000 for a 1 acre parcel to $700,000 for a 6 bedroom permitted ski in/ski out lot at Topridge.  For acccess to the full report

It was opening day for the 1st new lift in 10 years at Killington and mother nature is cooperating in a big way!  We made our way over to Bear Mountain by going up the Superstar chair and skiing over the backside via the new Gateway trail.  It was perfectly groomed and we cruised straight down to Bear Trap and lower Skyeburst (no more crossover trails).  The conditions were great.  We then got onto the new high speed detachable quad chairlift at Skye Peak which opened today and we were bottom to top in a record 4.9 minutes.  It was a great ride and was “all the better” having known what it used to be like! 

After departing the chair, we decided to check out the all new natural terrain park called “The Stash.”    Not being adventurous risk takers, we cruised along side the natural features of the “park” and couldn’t help “oooooh’ing and aaaah’ing”.  It was really cool!  We were also impressed by the size and length of the area.  It has open sections and also offers more gladed areas.  It was truly pretty.  The designers and builders did a great job.

We got on the new lift again and this time when disembarking, we headed down the new Great Eastern trail which utilizes part of the old “Cruise Control” but branches off in new areas with great views to the south and east.  Once again, we were really impressed.

Our hats are off to Killington.  They did a great job and should be commended!  Mother nature seems to be congratulating everyone as well as snow is falling fast and furious with 6-12 inches predicted for tonight and a nor’easter coming in on Sunday.  It is going to be a great holiday week!  Come on up and enjoy.