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The Votes Are In
Real estate buyers made their voices heard last month and made a clear choice for… higher-end properties!
One of the interesting dynamics of our current market is the significantly- increased activity in higher price ranges.
The combination of high equity and low-interest rates is clearly causing people to move up. They are able to purchase the home that has the features they have always wanted whether it be size, finishes, or location.
The considerable equity growth that has occurred for homeowners over the last 7 years is allowing them to have sizable down payments on their ‘move up’ property plus today’s rates keep their monthly payments lower than expected.
Here are the numbers we researched which demonstrate this trend.
Compared to October of 2019, sales of properties priced over $750,000 last month were up:
- 176% in Larimer County
- 375% in Weld County
- 96% in Metro Denver
Properties in the $550,000 to $750,000 range also saw a large jump:
- 57% in Larimer County
- 63% in Weld County
- 83% in Metro Denver
This is a unique time in history for people to move up and own a home they have always dreamed about.
Empty Nesters: Remodel or Sell?
Your kids have moved out and now you’re living in a big house with way more space than you need. You have two choices – remodel your existing home or move. Here are some things to consider about each option.
Choice No. 1: Remodel your existing home to better fit your current needs.
- Remodeling gives you lots of options, but some choices can reduce the value of your home. You can combine two bedrooms into a master suite or change another bedroom into a spa area. But reducing the number of bedrooms can dramatically decrease the value of your house when you go to sell, making it much less desirable to a typical buyer with a family.
- The ROI on remodeling is generally poor. You should remodel because it’s something that makes your home more appealing for you, not because you want to increase the value of your home. According to a recent study, on average you’ll recoup just 64 percent of a remodeling project’s investment when you go to sell.
- Remodeling is stressful. Living in a construction zone is no fun, and an extensive remodel may mean that you have to move out of your home for a while. Staying on budget is also challenging. Remodels often end up taking much more time and much more money than homeowners expect.
Choice No. 2: Sell your existing home and buy your empty nest dream home.
- You can downsize to a single-level residence and upsize your lifestyle. Many people planning for their later years prefer a home that is all on one level and has less square footage. But downsizing doesn’t mean scrimping. You may be able to funnel the proceeds of the sale of your existing home into a great view or high-end amenities.
- A “lock-and-leave” home offers more freedom. As your time becomes more flexible, you may want to travel more. Or maybe you’d like to spend winters in a sunnier climate. You may want to trade your existing home for the security and low maintenance of condominium living.
- There has never been a better time to sell. Our area is one of the top in the country for sellers to get the greatest return on investment. Real estate is cyclical, so the current boom is bound to moderate at some point. If you’re thinking about selling, take advantage of this strong seller’s market and do it now.
Bottom Line
If your current home no longer works for you, consider looking at homes that would meet your lifestyle needs before taking on the cost and hassle of remodeling. Get in touch with a Windermere Real Estate broker to discuss the best option for you.
Love Letters: How to set yourself apart in a seller’s market
Love letters are a lost art form, in romance and home buying. Yes, home buying. If you’re a buyer and you want to set yourself apart from other buyers, you might want to state your intentions clearly by declaring your abiding love for the seller’s home in a letter. Here are a few tips for writing a love letter that works (for love letters of a romantic nature, you’re on your own).
Consider what about the home makes it your dream home. Do you see yourself raising a family there? Do you have a special attraction to the architectural/design style? Does the home evoke a sense of nostalgia? Consider your emotional reaction to the home. Many sellers are emotionally tied to their homes, and they often want others to see value in the things that make the home appealing and unique.
Share your home-buying journey. Whether you’re buying your first home, upgrading to something larger, or seeking a place for retirement, those personal stories can help a seller empathize with you.
Share commonalities. If you have any information about the people selling the house, share what you have in common. This could be anything from children to hobbies.
Show, don’t tell. If you can, paint a picture of what your life will be like when you live there. For example, “I can imagine pancake breakfasts with our two children in the lovely kitchen.” If the seller has had similar experiences, continuing those traditions may be important to them.
Don’t over-compliment the seller. A love letter should be an authentic message about your interest in the home. A seller can tell if you’re genuine, so keep your compliments sparse and real.
Keep it short and simple. Your love letter should be a sonnet, not a novel. Keep to the point and try to remain under 200 words.
Show stability. You might find yourself bidding against all cash buyers or people willing to pay more than you are. Your letter may set you apart from the competition emotionally, but don’t forget to share that you’re a financially viable candidate. Also, if you have unique (and strong) resume attributes, consider including a couple of key points. You never know what might draw the seller to you.
Don’t point out flaws or improvements to be made. Even when you’ve found your dream home, you may still have plans for improvements. This is not what sellers want to hear. Make sure not to point out the household flaws, or renovations you will make once the ink has dried. This could sour the seller to your overture.
Consider a multi-media love letter. Last year, a Windermere agent helped his client purchase the home of her dreams. She was a violinist and the home she desired required a certain acoustic quality. He followed her through the home while she played in different rooms. When she sent this video to the sellers, it helped set her apart from other buyers bidding on the home.
Be professional. While this is a love letter and somewhat emotional, it is also a part of a business transaction. Do not be overly familiar. Remember to format, address, and copy edit your letter as you would with any other business correspondence.
Here are some samples of love letters.
If you are submitting a love letter with your bid, make sure to consult your agent. They may have inside information about the people selling the home through their connections with the selling agent. Your agent can advise you if your letter is appropriate and what information it should contain.
In a competitive seller’s market a love letter will not always work, but as in love, it is always worth a try.
Have you ever written a love letter with a house offer? What was your experience?
