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Leap Year
The statistic that is leaping so far in 2024 is inventory.
Northern Colorado is seeing a big uptick in number of homes for sale.
However, it is not an alarming amount and is still a ‘Seller’s Market’ by definition.
Larimer County inventory is up 39% and Weld County is up 48%.
Months of inventory is up to 2.3 in Larimer County from 1.7 months a year ago.
Weld County is also at 2.3 months today and was only 1.2 months a year ago.
With higher inventory comes more selection for buyers and more importance for sellers to price right.
Should I Remodel or Sell My Home As Is?
Homeowners who are preparing to sell are often faced with a dilemma about whether to remodel or sell their home in its current state. Each approach has its respective advantages and disadvantages. If you decide to remodel your home, it will likely sell for more; but the increased selling price will come at the cost of financing the remodeling projects. If you decide to sell without remodeling, you won’t spend as much money putting your home on the market, but the concern is whether you’re leaving money on the table.
Should I Remodel or Sell My Home As Is?
To answer this question, it’s important to understand the factors that could influence your decision and to work closely with your agent throughout the process.
Cost Analysis: Home Remodel vs. Selling Your Home As Is
Home Remodel
When you remodel your home before selling, you’re basically making a commitment to spend money to make money. So, it’s important to consider the kind of ROI you can expect from different remodeling projects and how much money you’re willing to spend. Start by discussing these questions with your agent. They can provide you with information on what kinds of remodels other sellers in your area are making and the returns they’re seeing as a result of those upgrades. This will help you determine the price of your home once your remodel is complete.
Then, there’s the question of whether you can complete you remodeling projects DIY or if you’ll need to hire a contractor. If hiring a contractor seems expensive, know that those costs come with the assurance that they will perform quality work and that they have the skill required to complete highly technical projects.
According to the Remodeling 2021 Cost vs. Value Report (www.costvsvalue.com1), on average, homeowners paid roughly $24,000 for a midrange bathroom remodel and about $26,000 for a minor kitchen remodel nationwide, with a 60.1% and 72.2% ROI respectively. This data shows that, for these projects, you can recoup a chunk of your costs, but they may not be the most cost-effective for you. A more budget-friendly approach to upgrading these spaces may look like repainting your kitchen cabinets, swapping out your old kitchen backsplash for a new one, refinishing your bathroom tub, or installing a new showerhead. Other high-ROI remodeling projects may allow you to get more bang for your buck, such as a garage door replacement or installing stone veneer. To appeal to sustainable-minded buyers, consider these 5 Green Upgrades that Increase Your Home Value.
Image Source: Getty Images – Image Source: stevecoleimages
Selling Your Home As Is
Deciding not to remodel your home will come with its own pros and cons. By selling as is, you may sell your home for less, but you also won’t incur the cost and headache of dealing with a remodel. And since you’ve decided to sell, you won’t be able to enjoy the fruits of the remodel, anyway. If you sell your home without remodeling, you may forego the ability to pay down the costs of buying a new home with the extra money you would have made from making those upgrades.
Market Conditions: Home Remodel vs. Selling Your Home As Is
Local market conditions may influence your decision of whether to remodel before selling your home. If you live in a seller’s market, there will be high competition amongst buyers due to a lack of inventory. You may want to capitalize on the status of the market by selling before investing time in a remodel since prices are being driven up, anyway. If you take this approach, you’ll want to strategize with your agent, since your home may lack certain features that buyers can find in comparable listings. In a seller’s market, it is still important to make necessary repairs and to stage your home.
In a buyer’s market, there are more homes on the market than active buyers. If you live in a buyer’s market, you may be more inclined to remodel your home before selling to help it stand out amongst the competition.
Timing: Home Remodel vs. Selling Your Home As Is
Don’t forget that there is a third option: to wait. For all the number crunching and market analysis, it simply may not be the right time to sell your home. Knowing that you’ll sell your home at some point in the future—but not right now—will allow you to plan your remodeling projects with more time on your hands which could make it more financially feasible to complete them.
For more information on how you can prepare to sell your home, connect with a local Windermere Real Estate agent below:
- “© 2021 Hanley Wood, Complete data from the Remodeling 2021 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.”
Why List Now
Why does it make sense to list a home now? Shouldn’t I wait until the Spring?
These are legitimate questions we hear occasionally from our clients.
It turns out there are several good reasons to list a home in December or January instead of waiting for April or May.
The first reason is low competition. Today there are only:
- 279 homes for sale in Larimer County
- 263 homes for sale in Weld County
- 2,151 homes for sale in Metro Denver
So, a home on the market today has high odds of standing out in the market versus the higher-inventory market in the Spring.
In addition to lower competition:
- Buyers looking in the winter tend to be more serious and motivated by tighter timelines
- Interest rates will likely be higher in the Spring which will impact the purchasing power of Buyers, and consequently, the selling power of Sellers.
New Listings Week of November 14th
2576 Trio Falls Drive, Loveland, CO 80538
Listing Agent: Kelly Swift
MLS 955106
You can be in by Christmas! This move-in ready 2 bed/2 bath ranch style home features an open, bright floor plan. Enjoy the fully upgraded kitchen w/granite, SS appliances, 42″ cabinets, soft close drawers & pull outs throughout. Fantastic cork floors, newer lighter fixtures, custom shades and upgraded baths (primary w/heated floor!). Wonderful community with a pool, modern clubhouse, park, lakes for fishing and kayaking and a 4- mile trail! Easy access to I-25, HWY 34, hospital, restaurants, schools, & shopping. With main level living, and a 2 car attached garage this home was built for both comfort and entertainment. The HOA covers all exterior maintenance, snow removal, landscaping, paint, roof and lawn maintenance. Beautiful and bright home w/loads of natural light that would fit well as a primary home, vacation home or investment property! Call (970) 310-4876 to schedule your private showing or click here for more information.
7011 W 11th Street Road, Greeley, CO 80634
Listing Agent: Rondi duPont
MLS 955102
Looking for a home with some elbow room? This 2 story home is situated on a half an acre with NO HOA in West Greeley. The 4 bedroom 4 bathroom home boasts an inviting living area with vaulted ceilings and a fireplace, a separate dining room and a kitchen with stainless steel appliances. The walkout basement is finished to give additional space to spread out in the home. But wait, there is more! The property has a 35×24 HEATED Workshop and 8ft garage door. Bring your RV and Camper! The entire property is fenced with a beautiful wood privacy fence. There is a romantic gazebo to enjoy the large back yard and an additional shed and chicken coop. This home has so much to offer. Don’t miss seeing it! Call (970) 401-0123 to schedule your private tour or click here for more information.
880 E State Highway 56, Berthoud
Listing Agent: Katie Robinson
MLS 955058
Spectacular, completely fenced horse property sitting on almost 5 acres. Wonderful views of Longs Peak and Front Range in a quiet location close to downtown Berthoud & I-25. For all those horse lovers: 3-stall Cleary Barn & working horse arena w/ 2 acre grazing pasture. This freshly painted home features hardwood floors, rich wood trim, gourmet kitchen with custom cabinetry, Corian countertops, glass cooktop, wall oven, double sink, SS refrigerator, & large island that opens to comfortable family room with gas fireplace. West side of the home is designed to take in the views from all rooms. Living room & primary bedroom have large bay windows with seating areas. Large veranda to enjoy sunsets & warm evenings. Fully finished basement w/ large game room, wet bar, media room & a guest suite. Great for entertaining indoors or out! Greenhouse & beautiful outdoor living space with brand new pergola to the east. Ditch rights included to lease water with potential of 250 bales of hay per year. Call (970) 430-9630 to schedule a private tour or click here for more information.
881 Village Drive, Milliken, CO 80534
Listing agent: Alexis Foster
MLS 955393
Come see this stunning, better than new, 2-story home. 881 Village Drive, Milliken has so much to offer including its amazing location across the street from the neighborhood school and open space. Recent updates include; water heater, all new interior paint throughout the home, mudroom remodel, additional electrical outlets in the garage including 220-volt wiring for a future garage heater/ac unit, garage insulation, and drywall, new light fixtures throughout the home, main floor bath remodel and new Stainless Fridge and Dishwasher in the kitchen just to name a few. Fully landscaped and fenced yard with a huge patio, perfect for summer BBQs. Full unfinished basement with bathroom roughed-in provides room to expand. This home is conveniently located for commuters, just minutes from I-25, Hwy 257 and Hwy 85. Additional amenities include a community pool, park, and recreational center. Call (970) 310-6999 to schedule a showing for this pristine home or click here for more information.
2708 Stonehaven Drive, Fort Collins, CO 80525
Listing Agent: Jon Holsten
MLS 955451
Fantastic four-bedroom home in the coveted English Ranch neighborhood! Boasting a wide-open floor plan with high vaulted ceilings and tons of natural light, your new home also features a large kitchen with lots of counter space and plenty of storage along with a separate dining area and living room with gas fireplace. Sprawling main level primary suite with 5 pc bath and large walk-in closet. Upstairs, you’ll find a loft, two additional bedrooms and a bath. Enjoy more elbow room in the finished basement with an oversized fourth bedroom, large rec area, bath and ample storage. Relax or entertain on the large outside deck overlooking the low-maintenance back yard. Three-car garage. Excellent location with paved walking trail to nearby schools, shopping and restaurants. Quick access to I-25. An incredible home and terrific value! Call (970) 237-2752 to schedule your private tour or click here for more information.
700 Frontier Court, Fort Collins, CO 80526
Listing Agent: Jon Holsten
MLS 955457
Beautiful four-bedroom ranch-style home at the end of a cul-de-sac in central Fort Collins! Your new home sits on a huge lot and boasts updates throughout. From the great kitchen with plenty of counter space and storage — to the family room with fireplace, separate living room and remodeled main bath — this home is move-in ready! Large primary suite with full bath and two additional bedrooms on the main level. In the finished basement, you’ll find a large rec area, additional bedroom with private bath, and an office/non-conforming fifth bedroom. New exterior paint — and new interior paint through most of the home. Relax or entertain on the front deck or in the incredible back yard with mature landscaping and large trees. Tire swing included! Close to schools, shopping, restaurants and everything this great community has to offer. An excellent home and incredible value! NO HOA! Call (970) 237-2752 to schedule your private tour or click here for more information.
Want a house in Fort Collins? Grab $500,000, get in line and join the housing Hunger Games
“Buying a house in Fort Collins these days can feel like a combat sport. Maybe more like the
‘Hunger Games.’ Or Charlie Brown and the football — every time you get close to the ball,
Lucy whisks it away…”
Pat Ferrier at the Fort Collins Coloradoan breaks down the housing market in Northern Colorado with the help real estate professionals across the front range. Click the link below to read on!
Fort Collins real estate_ Average home price near $500K in market
Record Highs
While our temperatures felt like record lows this week, real estate prices have been hitting record highs along the Front Range.
Here is the average price for residential sales so far this year in each of our Front Range markets (includes both single-family and multi-family):
Fort Collins = $567,000
Loveland = $449,000
Windsor = $537,000
Greeley = $376,000
Metro Denver = $544,000
These prices are generally up 10% or more compared to last year.
If you are curious to know what your personal property is worth today, even if you aren’t considering moving any time soon, we are happy to do the research for you. Just let us know!
Bubble Talk
A hot topic of conversation these days is the prospect of another real estate bubble. People wonder if prices can continue at their current pace and some fear a repeat of 2008.
Because we get asked about this topic so often from our clients, we thought it would make sense to ask our in-house expert, Matthew Gardner.
Matthew is our Chief Economist and was our Keynote Speaker at the Windermere Annual Market Forecast.
During the Forecast presentation, he discussed the bubble concerns and laid out his reasons why he sees no potential of prices bursting along the Front Range.
Quite the opposite actually, he sees that prices will continue to go up, but just not as fast as they have been.
His reasons for no bubble bursting are as follows:
- Record-low inventory – prices cannot crash without a glut of supply on the market
- Highly-qualified buyers – lending guidelines are more stringent today than they have been in our lifetime
- Growing jobs – job growth in Colorado is projected to far outpace the national average this coming year
So, we project a healthy real estate market in 2021.
To see a replay of the Forecast presentation, simply reach out to us, we would be happy to send you the recording.
What ‘s My Home Worth? The Downside to Home Valuation Tools
It is a seemingly simple question. However, discovering the worth of your home is more complicated than it might seem. Sites like Zillow, Redfin, Eppraisal, and others have built-in home valuation tools that make it seem easy, but how accurate are they? And if you get three different answers, which one do you believe? Online valuation tools have become a pivotal part of the home buying and selling process, but they’ve proven to be highly unreliable in certain instances. What these valuation tools have made clear is that real estate agents are as vital to the process of pricing a home as they ever were—and maybe even more so now.
Every online valuation tool has its limitations. Most are readily acknowledged by their providers, such as “Zestimate” from Zillow, which clearly states that it offers a median error rate of 4.5%. That may not sound like a lot, but keep in mind that 4.5% amounts to a difference of about $31,500 for a $700,000 home. For Redfin and Trulia, there are similar variances. When you dig deeper into these valuation tools, it’s no wonder that there are discrepancies. They rely on a range of different sources for information, some more reliable than others.
Redfin’s tool pulls information directly from multiple listing services (MLSs) across the country. Others negotiate limited data sharing deals with those same services, relying on public and homeowners’ records alike. This can lead to gaps in coverage. These tools can serve as helpful pieces of the puzzle when buying or selling a home, but the acknowledged error rate is a reminder of how dangerous a heavy reliance on them can be.
Nothing compares to the level of detail and knowledge a professional real estate agent offers when pricing a home. An algorithm can’t possibly know about the unique characteristics of neither a home nor its neighborhood. Curious about what improvements you can make to get top dollar or how buyer behaviors are shaping the market? They cannot provide an answer there, either. That can only be delivered by a trusted professional whose number one priority is getting you the best price in a time frame that meets your needs.
If you’re curious about your home’s value, Windermere offers a tool that provides a series of evaluations on your property and the surrounding market. And once you’re ready, we’re happy to connect you with a Windermere agent who can clarify this information and perform a Comparative Market Analysis to get an even more accurate estimate of what your home could fetch in today’s market.
Economist’s Perspective
Our Chief Economist made a video for all of our clients where he shares his perspective on COVID-19’s impact on housing. You can watch it by clicking the image below:
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Mistakes to Avoid When Buying and Selling a Home
There’s nothing more exciting, rewarding, and fulfilling than buying a home. However, it’s a complex transaction; there are a number of steps along the path that can confuse, betwixt, and befuddle even the most seasoned buyers and sellers.
How can you avoid those potential pitfalls and common mistakes? Look to your real estate professional for advice and keep these guidelines in mind:
BUYERS:
#1 Review your credit reports ahead of time
Review your credit report a few months before you begin your house hunt, and you’ll have time to ensure the facts are correct and be able to dispute mistakes before a mortgage lender checks your credit. Get a copy of your credit report from Experian, Equifax, and TransUnion. Why all three? Because, if the scores differ, the bank will typically use the lowest one. Alert the credit bureaus if you see any mistakes, fix any problems you discover, and don’t apply for any new credit until after your home loan closes.
#2 Get pre-approved
Before getting serious about your hunt for a new house, you’ll want to choose a lender and get pre-approved for a mortgage (not just pre-qualified—which is a cursory review of your finances—but pre-approved for a loan of a specific amount). Pre-approval lets sellers know you’re serious. Most importantly, pre-approval will help you determine exactly how much you can comfortably afford to spend.
#3 Know what you want
You and your real estate agent should both be clear about the house you want to buy. Put it in writing. First, make a list of all the features and amenities you really want. Then, number each item and prioritize them. Now, divide the list into must-haves and really-wants.
#4 Account for hidden costs
In addition to the purchase price of the home, there are additional costs you need to take into consideration, such as closing costs, appraisal fees, and escrow fees. Once you find a prospective home, you’ll want to:
- Get estimates for any repairs or remodeling it may need.
- Estimate how much it will cost to maintain (gas, electric, utilities, etc.).
- Determine how much you’ll pay in taxes monthly and/or annually.
- Learn whether there are any homeowner’s or development dues associated with the property.
#5 Get an inspection
Buying a home is emotionally charged—which can make it difficult for buyers to see the house for what it truly is. That’s why you need impartial third parties who can help you logically analyze the condition of the property. Your agent is there to advise you, but you also need a home inspector to assess any hidden flaws, structural damage or faulty systems.
#6 Evaluate the neighborhood and location
When house hunting, it’s easy to become overly focused on the number of bedrooms and bathrooms, the condition of the home and its amenities while overlooking the subtleties of the surrounding neighborhood. Take time to check crime reports, school options, churches and shopping. If schools are a key factor, do more than simply research the statistics; speak with the principal(s) and chat with the parents waiting outside.
SELLERS:
#1 Avoid becoming emotional or sentimental about the sale
Once you decide to sell your house, it’s time to strip out the emotion and look at it as a commodity in a business transaction. If you start reminiscing about all the good times you had and the hard work you invested, it will only make it that much harder to successfully price, prepare, and market the home.
#2 Fix problems (or price accordingly)
Homes with deferred maintenance and repair issues can take far longer to sell and can be subject to last-minute sale-cancellations. These homes also often sell for less than their legitimate market value. If you simply can’t afford to address critical issues, be prepared to work with your agent to price and market your home accordingly.
#3 Don’t overprice your home (and/or refuse to negotiate)
Getting top dollar is the dream of every seller. But it’s essential that you let the market dictate that price, not your emotions or financial situation. Allow your agent to research and prepare a market analysis that factors in the value of similar homes in the area, and trust those results.
#4 Use quality photos
The vast majority of prospective buyers today search for homes online first. In order to make a good first impression, you need a wealth of high-quality photos of your home and surrounding grounds. You may also need to consider professional staging in order to position your home in the best possible light for prospective buyers.
The process of buying or selling a home can have plenty of twists and turns, but with some smart decision making, you can avoid the most common mistakes and pitfalls.
Click here if you would like to connect with an experienced real estate agent.
