Long-empty $1.78M luxury home finding success as nightly rental in Steamboat | SteamboatToday.com

Long-empty $1.78M luxury home finding success as nightly rental in Steamboat

STEAMBOAT SPRINGS — If you've always wondered about the castle turret on the luxury home at 2791 Bronc Buster Loop in Wildhorse Meadows, we can confirm that it houses a large spiral staircase leading to the main level of a custom home that's currently in high demand on the nightly rental market.

The home was completed in 2008 and ran directly into the recession, Realtor Darrin Fryer said this week. Fryer and Ryan Cox, his team member at Steamboat Sotheby's International Realty, brought the buyer to the house, which was listed by Ron Wendler of Colorado Group Realty.

The 4,056-square-foot home sold for the first time Sept. 29 for $1.78 million in a neighborhood where the latest new-construction home sold for $2.4 million to a buyer from Pennsylvania, whose intent is to enjoy the home but defray the expenses with consistent nightly rentals, Fryer said.

Fryer, 15 years into his real estate career here, and Cox, who spent a decade doing demand planning and producing revenue forecasts at SmartWool in Steamboat Springs, are building a specialty in presenting single-family, luxury homes as being a better investment than condominiums at the base of Steamboat Ski Area.

A two-sided fireplace in one of the master bedrooms faces a compact sitting area on one side and adjoins the bath tub on the other side.

"We've been modeling scenarios and building financial models for this profile of investors," Cox said.

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The niche that he and Cox are developing, Fryer said, is indicative of the growing number of high-net-worth buyers coming to Steamboat in the last seven or eight years. Single-family luxury homes, when compared to condos and high-end townhomes, are a relatively scarce product in Steamboat, Fryer explained.

For investors, lower HOA fees than those associated with luxury condos and today's low interest rates make it easier to justify the investment in a luxury home that can be expected to have a greater increase in value over time than condos.

The buyer for 2791 Bronc Buster is a businessman, and the financial models that Cox presented to him, with options plugged in made a business case, instead of just an emotional case, helped influence his purchase of the home.

"He's what I call a sophisticated investor for the East Coast," Fryer said. "He comes from a pure real estate investment (point of view) and has watched rental incomes and price points come down for four or five years. He loves Steamboat, but for him, (purchasing the home) is a very calculated risk. He'll stay here a couple of times a year, and perhaps invite members of his staff to enjoy the home, but he won't be overdoing that."

One of the must-haves for a luxury home on the nightly rental market, Fryer said, is a dining table that comfortably seats at least a dozen people. The house with the turret has a table that seats 12 with two extra dining chairs to squeeze in 14, plus a kitchen bar and stool seating for four, which is slightly removed from the meal preparation area compared to most homes.

The home has four bedrooms and 4.5 baths. But it's one of the four fireplaces in the home that creates the greatest "wow" factor.

A two-sided fireplace in one of the master bedrooms faces a compact sitting area on one side and adjoins the bath tub on the other side.

One of the recommendations Fryer felt strongly about – the desirability of a hot tub in a Steamboat vacation home – was rejected by the buyer.

"We felt strongly enough about it that we convinced Ron (Wendler) to split it with us, and we bought him a hot tub," Fryer said.

Housekeeping at 2791 Bronc Buster is handled by a sole proprietor, rather than a management company.

Another recommendation Fryer has for clients is that even if they promote the availability of their vacation home on a web platform like airbnb, they should create a stand-alone web page for their home as well and give it a name to brand it.

We humbly suggest, "Steamboat Castle Turret House."

To reach Tom Ross, call 970-871-4205, email tross@SteamboatToday.com or follow him on Twitter @ThomasSRoss1.

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