Here’s some good news for buyers who have been waiting for more selection…
No need to wait any more because the numbers show that more new listings are hitting the market compared to the recent past.
In Metro Denver, the number of homes for sale is up 14.42% compared to last year.
That equates to 800 more homes to choose from.
Start spreading the news!
However, homes that are priced right and in great condition are selling, and in many cases, selling quickly.
As buyers feel the market cool a bit, it may cause them to want to wait. They sometimes feel like it’s a better choice to ‘wait and see what happens.’
The reality is, there is a real cost to waiting given two specific facts.
1. Interest rates will continue to rise
2. Prices will continue to rise
Interest rates are a little more than 0.5% higher than a year ago and experts predict them to be another 0.5% higher by this time next year.
Prices have been appreciating at roughly 10% per year for the last four years. Based on the numbers, we see that appreciation could be 5% per year for the next two years.
So, let’s look at a house priced at $450,000 today. If prices go up “only” 5% for the next 12 months, that home will cost $22,500 more in a year.
And, if rates go up another half percent, the monthly payment will be $206 higher. That’s an 11% increase!
In an environment of rising prices and rising rates, there is a real cost to “wait and see.”
It’s called “At Least List”
It measures how active the market is by tracking the number of single family homes that sell for at least list price.
Because of the demand in our market, many homes sell for list price or higher.
So here’s the latest based on closings so far in the month of July…
The percentage of single family homes selling for at least list price:
- Fort Collins = 58%
- Loveland = 67%
- Windsor = 55%
- Greeley = 75%
Based on these numbers, homes that are priced right, and positioned right in the market will attain the price the seller wants (or higher).
To see the whole story about our market along with other stats and trends, watch the recording of Tuesday’s Windermere Workshop right here.
If you are buying or selling your home, you will want to find a real estate agent that you like and trust. Windermere agents, Marguerite Giguere and Anne Jones have some great tips on how to find a real estate agent, make sure they will fit your needs and set expectations.
Is this year you make the leap to buy your first home?
A home is a major investment and, for many people, the greatest financial asset they have. With so much at stake, it makes sense to do what you can to protect your financial interest. Getting a home inspection is a smart, simple way to do just that.
When you make a written offer on a home, insist that the offer provide that your contract is contingent on a home inspection conducted by a qualified inspector. You’ll have to pay for the inspection yourself, but an investment of a few hundred dollars could save you thousands of dollars and years of headaches. If you’re satisfied with the results of the inspection and are assured that the home you’re purchasing is in good shape, you can proceed with your transaction, confident that you are making a smart purchase.
Hire a professional
When you are ready to hire a home inspector, be sure they’re licensed in your state. They should be able to provide you with their license number, which you can use to verify their status with the appropriate government agency. The best way to find an inspector is to ask your real estate agent for a recommendation. Even among licensed and qualified home inspectors, there can be a difference in knowledge, performance, and communication skills, so l it’s a good idea to do some research to ensure that you get the type of inspection you need.
What to ask your home inspector
Ask the right questions to make sure you are hiring the right professional for the job.
What does your inspection cover?
Insist that you get this information in writing. Then make sure that it’s in compliance with state requirements and includes the items you want inspected.
How long have you been in the business?
Ask for referrals, especially with newer inspectors.
Are you experienced in residential inspections?
Residential inspection in a unique discipline with specific challenges, so it’s important to make sure the inspector is experienced in this area.
Do you make repairs or make improvements based on inspection?
Some states and/or professional associations allow the inspector to perform repair work on problems uncovered in an inspection. If you’re considering engaging your inspector to do repairs, be sure to get referrals.
How long will the inspection take?
A typical single-family dwelling takes two to three hours.
How much will it cost?
Costs can vary depending upon a variety of things, such as the square footage, age, and foundation of the house.
What type of report will you provide and when will I get it?
Ask to see samples to make sure you understand his or her reporting style. Also make sure the timeline works for you.
Can I be there for the inspection?
This could be a valuable learning opportunity. If your inspector refuses, this should raise a red flag.
Are you a member of a professional home inspector association? What other credentials do you hold?
Ask to see their membership ID; it provides some assurance.
Do you keep your skills up to date through continuing education?
An inspector’s interest in continuing education shows a genuine commitment to performing at the highest level. It’s especially important with older homes or homes with unique elements.
What doesn’t a home inspection cover?
For a variety of reasons, some homes will require specialty inspections that are not covered by a typical home inspection. A specialty inspection might include such items as your home’s sewer scope, septic system, geotechnical conditions (for homes perched on steep slopes or where there are concerns regarding soil stability) or underground oil storage tank. If you have any questions about whether or not your home needs a specialty inspection, talk to your real estate agent.
For more than 20 years, the benefits of staging a home have been well documented. Numerous studies show that staging helps sell a home faster and for a higher price. According to the National Association of REALTORS®, 88 percent of homebuyers start their search online, forming impressions within three seconds of viewing a listing. When a home is well staged, it photographs well and makes the kind of first impression that encourages buyers to take the next step.
Studies also indicate that buyers decide if they’re interested within the first 30 seconds of entering a home. Not only does home staging help to remove potential red flags that can turn buyers off, it helps them begin to imagine living there. Homes that are professionally staged look more “move-in ready” and that makes them far more appealing to potential buyers.
According to the Village Voice, staged homes sell in one-third less time than non-staged homes. Staged homes can also command higher prices than non-staged homes. Data compiled by the U.S. Department of Housing and Urban Development indicate that staged homes sell for approximately 17 percent more than non-staged homes.
A measurable difference in time and money
In a study conducted by the Real Estate Staging Association in 2007, a group of vacant homes that had remained unsold for an average of 131 days were taken off the market, staged, and relisted. The newly staged properties sold, on average, in just 42 days, – which is approximately 68 percent less time on the market.
The study was repeated in 2011, in a more challenging market, and the numbers were even more dramatic. Vacant homes that were previously on the market for an average of 156 days as unstaged properties, when listed again as staged properties, sold after an average of 42 days—an average of 73 percent less time on the market.
Small investments, big potential returns
Staging is a powerful advantage when selling your home, but that’s not the only reason to do it. Staging uncovers problems that need to be addressed, repairs that need to be made, and upgrades that should be undertaken. For a relatively small investment of time and money, you can reap big returns. Staged properties are more inviting, and that inspires the kind of peace-of-mind that gets buyers to sign on the dotted line. In the age of social media, a well-staged home is a home that stands out, gets shared, and sticks in people’s minds.
What’s more, the investment in staging can bring a higher price. According to the National Association of REALTORS, the average staging investment is between one percent and three percent of the home’s asking price, and typically generates a return of eight to ten percent.
In short, less time on the market and higher selling prices make the small cost of staging your home a wise investment.
Interested in learning more? Contact your real estate agent for information about the value of staging and referrals for professional home stagers.
If you’re thinking about remodeling or are about to break ground on your first renovation, odds are you probably know a bit about how the project is going to go. After all, you’ve watched a few TV shows, your cousin’s husband is a general contractor and the guy you sit close to at work tells you every detail of how his wet bar is coming together. So you pretty much know all there is to know, right? Not so fast.
Live Remodel 1: JLB Property Developments, original photo on Houzz
As much as you may be able to glean from friends and family, articles and TV, there’s no experience quite like personally getting down into the dirt (more on this later) of a remodel. And what you don’t often hear about are the harsh realities of wading through such a detailed, often stressful project.
We’ve written before about how remodeling a home is the ultimate litmus test for your relationship. And that’s why I think understanding a few of the common negative things that happen during remodel is a vital component of being prepared.
I’ve not only braved a few remodels myself, but I’ve worked on the other end as a general contractor, and while I can’t claim I know everything, I do think I have a lot to share. Here are a few things you should know about what it’s really like to live through a renovation.
Live Remodel 2: Turnbull Griffin Haesloop, original photo on Houzz
It Will Upset Your Daily Schedule
Say, for example, every day before you leave for work you like to brew a cup of tea, settle in with your tablet at your breakfast nook and prepare for the day by going through your emails.
Now picture this exact routine while your kitchen and breakfast nook is under construction. The peace and tranquility (and cleanliness!) of your morning retreat is no more.
You may have to alter your daily routine a bit by finding a coffee shop near your house where you can relax, or by relocating to your bedroom for your beloved cup of chai.
Creatures of habit, be warned: You may have to (take a deep breath here) change a couple of your habits while your remodel is going on.
Contractors often like to take up shop (if permitted) in garages, as they are often places where they can make a bit more of a mess and noise while remaining close to the job site. If you want certain parts of your home, yard or garage to remain sacred, talk with your contractor about areas where work can and cannot occur.
Live Remodel 3: Kasper Custom Remodeling, LLC, original photo on Houzz
There Will Be Dust
This one may be a no-brainer to some and a shock to others (again, take a deep breath). Some contractors will give hints that the project will get dusty, such as: “We will take measures to put up dust barriers around the area of the remodel” or “we will keep a broom and dustpan on site at all times.”
But no matter how many protective products are put up, there are certain stages of construction that can get intense (for example, sanding down drywall). Not only does dust get thrown into the air while work is going on, but it stays floating around in the air for a while afterward. And floating dust’s favorite pastime is, regrettably, travel.
It may travel to different areas of the house, settling into your dog’s bed, onto your kitchen counters and even into your lungs. You may be thinking, “So what? I breathe dust all the time. That’s just life.” This is true, but the dust you’re usually inhaling is dirt and dead skin cells and other organic stuff. Remodeling dust can be made of not-so-nice things such as chemicals found in paint, fiberglass insulation or cement.
Have a conversation with your contractor to see whether he or she plans on using an air scrubber during your remodel as well as dust barriers and traditional cleaning. This combined system helps to prevent dust from traveling, and it also takes a lot of the nasty particulate out of the air before it has time to invade other areas of your house.
While most contractors genuinely work to keep your home clean, safe and comfortable during a remodel, sometimes dust control isn’t a top priority. It will quickly become front and center in your home, though, if it isn’t properly managed from the start.
Live Remodel 4: studiovert design, original photo on Houzz
It Can Be an Emotional Roller Coaster
Every person handles stress and emotions differently, but the fact is that having a bunch of unfamiliar faces tear your house apart before your very eyes is stressful. I know that sounds like a bit of hyperbole, but when you’re actually living through a remodel, that’s exactly how it feels.
It can be tough to keep your head on straight when you’re trying to make selections for tile and lighting fixtures that suit your budget while simultaneously worrying about whether the project will end on time. Add family and work life to that? Yikes.
Now that I’ve worked you up, let me provide some peace of mind: Contractors know what they are doing. They will do everything they can to make sure you are happy with your home and the job is completed in a timely manner. Your local YMCA provides yoga classes, which can be very helpful with managing stress. Feeling better?
Accept that you will feel some stress and some emotions, and allow yourself to be OK with that. It’s a part of the process. Freaking out about the fact that you’re freaking out will only make things, well, freakier.
Live Remodel 5: Amanda Armstrong Sava, original photo on Houzz
Now that I’ve shaken up any romanticized beliefs you may have held about remodeling, let me instill a bit of faith by saying that it’s not all bad. Remodeling can actually be quite pain-free, in fact, if you communicate. I know I’ve harped on this before, but I can’t stress the importance of it enough. Talk with your contractor before work starts about things such as scheduling, dust control and communication preferences. It makes a world and a half of difference.
So, yes, there will be dust, and yes, you might get tired of seeing your project manager every day, but there will be days when you come home after work and see new countertops being installed, and it will stop you dead in your tracks because — whoa — those look great!
Other times you might have the house to yourself for a second and you can poke around to “ooh” and “ahh” over all of the new, shiny things filling your beloved home. So not only is it not all bad, some of it is actually pretty good. So good, in fact, that you might even start thinking about your next project before the first one even ends.
By Hannah Kasper, Houzz