For Buyers • For Sellers • Rental • November 18, 2019

So you bought an investment property, now what?

by Windermere Windsor

content_Windermere_Real_Estate_Blog__-_Investment_Property.png

Investing in a home is a great way to build passive income but earning from your investment will take a little groundwork to become a well-oiled machine. This is your beginner’s guide to owning an investment property so you can set up that foundation properly to avoid future headaches.

Make sure it’s livable

It’s important to start with your home inspection before you start making plans. Use the inspection report to prioritize the maintenance issues.

Before a tenant moves in, make sure the home is livable. Handle the important items that affect the livability of the property, either now or in the near future. If the inspector noticed a leak in the roof or holes that could lead to infestation, take care of those first. Other maintenance issues to prioritize are the fuel and the hot water source.

If your city has inspection and registration requirements, be sure to cross check those inspection checklists with your current property. If the property wouldn’t pass now, make sure it will pass by the time the city sees it.

Upgrade the space

Once your property is in livable condition, it’s time to upgrade. If you have any left-over budget after the necessities are handled, consider adding a bedroom or a bathroom where you can find the space. These rooms heavily impact the rental price, and the more you have the higher the price. If there’s no space for another bed or bath, think about finishing the basement or upgrading some of the appliances to make the property more attractive to potential tenants.

Use similar properties in your neighborhood as your inspiration. These units are your competition, think about what you can add, or even take away, that would help you compete. Ask yourself what about your home is unique and in what ways does that affect your rentability? If every unit in your area has hardwoods, how can you make your carpeted home appealing? Maybe new carpet? Or is switching to hardwoods, or vinyl laminate that looks like wood, worth it?

Market it to future tenants

You need two things in your listing: 1) Great Photos 2) An Amazing Description

After you’ve perfected the property, it’s time to tell potential tenants that it’s available. Creating the listing is essential in drawing eyes on the unit so you can show it to as many people as possible.

Renters looking to move are quick to make their first impression of a property with thumbnail photos on a map. So, take lots of great, bright, photos of the entire place to showcase the amenities and show potential tenants what it looks like, then choose the best photo to be the first in the lineup. Remember to get the lighting is just right to show every corner of the listing. Dark photos scare tenants away, making them think the unit is dingy and dirty. Light and bright photos show a clean home that’s move-in ready. They can imagine themselves living there a lot easier than in dark and cramped looking units.

Next, they’ll read the description. This is again where other listings in your area can help you.

Read other listings to structure your description and to draw inspiration on what tenants might think is important. Find the selling points and emphasize those above the unique features, especially if those unique features are obvious in the photos.

Blog • For Buyers • November 15, 2019

Is the Condominium Lifestyle Right for You?

by Windermere Windsor

Image Source: Grand Warszawski via Shutterstock

Condominium homes are a great, low-maintenance choice for a primary residence, second home, or investment property. This alternative to the traditional single-family home has unique issues to consider before buying, as well as unique benefits.

Increasingly, condos are not just for first-time homebuyers looking for a less expensive entry into the housing market. Empty-nesters and retirees are happy to give up mowing the lawn and painting the house. Busy professionals can experience luxury living knowing their home is safe and well-maintained while they are away on business.

If you are considering buying a condominium for a home, here are a few things you should know:

Condominium basics:

With condominiums, you own everything in your unit on your side of the walls. Individual owners hold title to the condominium unit only, not the land beneath the unit. All owners share title to the common areas: the grounds, lobby, halls, parking areas and other amenities. A homeowners’ association (HOA) usually manages the complex and collects a monthly fee from all condominium owners to pay for the operation and maintenance of the property. These fees may include such items as insurance, landscape, and grounds up-keep, pool maintenance, security, and administrative costs.

The owners of the units in a condominium are all automatic members of the condo association. The association is run by a volunteer Board of Directors, who manage the operations and upkeep of the property. A professional management company may also be involved in assisting the board in their decisions. The condo association also administers rules and regulations designed to ensure safety and maintain the value of your investment. Examples include whether or not pets are allowed and the hours of use for condominium facilities, such as pools and work-out rooms. Should a major expense occur, all owners are responsible for paying their fair share of the expense.

The pros and cons of condominium living:

The condominium lifestyle has many benefits, but condominium ownership isn’t for everyone. Whether living in a condominium works for you depends on your current and planned future lifestyle. By necessity, condominium associations have a number of standardized rules. You need to decide whether these regulations work for you or not. Here are some points to keep in mind if you’re considering condominium living.

Convenience: People who love living in condominiums always cite the convenience factor. It’s nice to have someone else take care of landscaping, upkeep, and security. Condominium homes are often located in urban areas where restaurants, groceries, and entertainment are just a short walk away.

Luxury amenities: May condominiums offer an array of amenities that most homeowners couldn’t afford on their own, such as fitness centers, clubhouses, wine cellars, roof-top decks, and swimming pools. Lobbies of upscale condominiums can rival those of four-star hotels, making a great impression on residents.

Privacy: Since you share common walls and floors with other condominium owners, there is less privacy than what you’d expect in a single-family home. While condominiums are built with noise abatement features, you may still occasionally hear your neighbors.

Space: Except for very high-end units, condominiums are generally smaller than single-family homes. That means less storage space and often, smaller rooms. The patios and balconies of individual units are usually much smaller as well.

Autonomy: As a condominium owner, you are required to follow the laws of the associations. That means giving up a certain amount of control and getting involved in the group decision-making process. HOA bylaws vary greatly from property to property, and some people may find certain rules too restrictive.

Things to consider when you decide to buy:

Condominium homes vary from intimate studios to eclectic lofts and luxury penthouses. The right condominium is the one that best fits your lifestyle. Here are a few questions to ask to determine which condominium is right for you.

How will you use it?

Will your condominium be your primary residence? A second home? An investment property? While a studio may be too small for a primary residence, it might be a perfect getaway. Also, consider how your lifestyle may change over the next five to seven years. If you are close to retirement, you may want to have the option of turning a vacation condominium into your permanent home.

What amenities are most important to you?

Amenities vary location to location. Decide what you want, and you can be assured of finding it. Most urban and resort condominiums have an enticing array of extras, from spas to movie screening rooms to tennis courts.

What are your specific needs?

Do you have a pet? Some associations don’t allow them; others have limitations on their size. Most buildings will have a rental cap, so be sure to know what that cap is if you’re buying as an investment. Parking can also be a major issue, especially in dense, urban areas. How many spaces do you get per unit? Do you pay extra if you have more vehicles?

Cost: Condominium homes typically cost less than houses, so they’re a great choice for first-time buyers. However, because condominiums are concentrated in more expensive locations, and sizes are generally smaller than a comparable single-family home, the price per square foot for a condominium is usually higher.

Finally, once you’ve found a property you like, examine the association’s declaration, rules, and bylaws to make sure they fit your needs. The association will provide you with an outline of their monthly fees and exactly what they cover so you can accurately budget your expenses.

Ask to review the association board’s meeting minutes from the past year to get an idea of any issues the association is working on. An analysis of sales demand and property appreciation compared to like units may help ensure that you make the best possible investment.

Fun Facts • Windermere Real Estate • November 15, 2019

Two Tales

by Windermere Windsor

This is a Tale of Two Counties.

When it comes to new home activity, there is a big difference between Larimer and Weld Counties.

Larimer County new home starts are down 10% and new home closings are down 15% compared to last year.

Weld County new home starts are up 18% and new home closings are up 8% compared to last year.

This is all according to the new home research experts and Metrostudy.

So why the difference? It comes down to price and availability.

There is more land available for new home development in Weld County.

Plus, the land tends to be less-expensive than Larimer which means that builders can deliver a lower-priced product and reach a larger pool of buyers.

The average price of a new home in Larimer County is $507,105 while the average new home price in Weld is $411,269.

(more…)

Blog • Fun Facts • November 8, 2019

All Time High

by Windermere Windsor

Home Builder’s confidence in Baby Boomer buyers is at an all time high.

The National Association of Home Builders (NAHB) surveys their members each quarter to discover what they expect of future sales.

The builders base a large part of their answer on how many people are visiting their sales centers and model homes versus the same time last year.

The results in their most recent survey show that builders have never been more confident about buyers who are 55 and older.

The confidence index for this age group is actually double of what it was in 2012. The NAHB sites low interest rates and strong job growth as the reasons for the high confidence.

Home Owner • Living • November 7, 2019

Your November To-Do List

by Windermere Windsor

The month of November brings the end to daylight savings time, for most of us anyway, and the start to the holiday season. Don’t be left in the cold, jumpstart your preparations with this quick checklist.

Check Your Fire Safety System

Test your smoke alarms and CO detectors to make sure they’re in working order. Locate your fire extinguisher and be sure the gauge shows that it has enough pressure. If it isn’t already stored in or near the kitchen, re-locate it closer to the oven for quick action should Thanksgiving dinner go up in flames.

Clean Your Garbage Disposal

Don’t let a stinky garbage disposal ruin your appetite, keep it smelling fresh with a few pieces of lemon rind and some ice cubes. The lemon cleans and deodorizes the odor causing bacteria and the ice scrapes away any debris, as well as sharpen the blades.

Check and Repair Other Plumbing Issues

Run the water in each sink to determine if it’s draining properly.

If your bathroom sink is not draining quickly, a great natural way to clear debris, with ingredients that you likely already have in the house, is to put ½ cup of baking soda down the drain, followed by ½ cup of vinegar, then plug the drain and let it sit for an hour. When you unplug the drain, pour boiling water down until it drains quickly.

Send a snake down your tub drain, then add a hair trap to each drain to prevent future blockage, especially when you have guests over for the holidays.

For a slow kitchen drain, the likely cause is a build up of fat, oil, or grease (FOG drain clog). The best way to clear this kind of clog is with 2 liters of water and a few tablespoons of dish washing detergent. Pour slowing and keep pouring until the drain is cleared.

Pull Out Your Winter Essentials

For those of you in cold climates, get out the shovels and replenish the ice-melt bucket before the snow and ice hit this season. Don’t get caught in the storm, make sure they’re easy to access or easy to pull out when the weather forecast calls for below freezing temperatures.

It’s also a good idea to get out your snow gear and toys. Don’t miss an opportunity to play in the snow because you can’t get to your shed to pull out your snow boots, gloves, or sled!

Check and Replace Floor Protectors

Prevent damage to your floors by checking any pads on your chair legs as well as the rug mat.

Make sure the pads on your chairs, sofas, and tables are intact so when you move them, they won’t rub and scuff or dent flooring. Lift the rug to double check that the rug mat isn’t causing damage to the floor as well. Sometimes, the adhesive can stick to the floors, leaving a residue that’s almost impossible to clean, this is especially important on cement floors.

Prepare the Guest Bedroom

Has it been a while since anyone, besides the dog or cat, has slept in the guest bed? This is a great time of year to wash the sheets and clean the room in preparation for holiday guests. And don’t forget the cobwebs in the corners! Organize and re-stock the closets so your guests can easily access more blankets and towels during their stay.

Once you’ve completed your November checklist, you can sit back with your hot apple cider and know that you’re ready for the holiday season.

Milliken Real Estate • Virtual Tour • November 6, 2019

Charming Ranch Style Home in Milliken!

by Windermere Windsor

This Harris home at 1555 Cattleman Drive in Milliken features vaulted ceilings, wood and tile flooring. Your new home is complete with a privacy fence in the back yard and is conveniently located at the end of a cul-de-sac. Complete with a Tesla solar system, please inquire with the listing agent for more details on the solar system. Contact Stephanie Woodard at (970) 215-2676 for your private showing for more information or click the link below for more details.

https://windermerewindsor.com/listing/101872132

For Buyers & Sellers • November 4, 2019

Buyer Beware: Is That House For Sale Haunted?

by Windermere Windsor

A trope as old as horror movies: a family moves into a beautiful house that they bought for well under market value. They’ve put all their savings into the move, and they’re looking for a fresh start. When they meet the neighbors and other townsfolk, they quickly learn that there’s a history to the home that they weren’t aware of.

When they start to experience the abnormal, it’s easy to brush off as new home jitters. The children who hear noises in the closet, and a husband who starts sleepwalking, are chalked up to stress and anxiety from the move. It’s only when the experiences escalate beyond control that the family finally realizes the extent of the haunting.

While sharing a home with the supernatural can be a selling point for some buyers, it’s quite the opposite for others. In fact, a 2017 survey by Realtor.com found that 33% of people were open to living in a haunted house, 25% would consider it, but 42% said it was a deal-breaker. So how do you make sure you’re fully informed about a home’s history? Knowing the right questions to ask is the first step:

Ask to see the seller disclosure form

In the famous 1991 case Stambovsky v. Ackley, the new homeowner, Jeffrey Stambovsky, won a lawsuit against the previous owner for not disclosing the history of hauntings.

In this case, the previous owner had published stories about the family’s experiences in Reader’s Digest and their local newspaper. In her writings, she explained several interactions with ghostly beings in the home, including finding that her children had been given rings, which would later disappear, bed shaking, and conversations with the floating specters.

The court took this evidence and ruled the “defendant is estopped to deny [the ghost’s] existence and, as a matter of law, the house is haunted.” Setting a new standard, this case created a basis for future seller disclosers. In this instance, they found that the history of the home, and the seller’s experiences in the home, would have influenced the marketability, and therefore, omitting these facts was unfair to the buyer.

Fast forward to 2019, there is not a specific section on seller disclosure forms for hauntings or ghostly sightings, but thanks to Stambovsky v. Ackley, sellers in many states are obligated by law to disclose things that affect a house’s marketability.

Ask Google about the history of the home

In 1991 when Mr. Stambovsky bought his haunted house, search engines didn’t exist. Today, we’re lucky enough to have things like Google which would have found the previous home owner’s stories in mere seconds. Search keywords like the address or town name, and words like “haunted” or “ghosts”, as well as “murder” or “news report” should help you start your dive into the history of the home.

Ask the neighbors and your agent

This is where nosey neighbors come in handy. When you find a place you’re serious about, contact the neighbors to see what they know about the home’s history. The same goes for your real estate agent; he or she can reach out to the listing agent to see if there is anything haunting you should know about prior to buying. While many states don’t require sellers to disclose paranormal activity or deaths in the home, if asked, all real estate agents must, by law, answer truthfully.

Blog • Fun Facts • November 1, 2019

Time for New

by Windermere Windsor

Here is a fact…

If you have ever thought about owning a new home, the last two months of the year are usually the best time to make that happen.

Here’s why…

Many builders have year-end goals and sales quotas to hit. If they have a “standing inventory” of homes that are completed but not sold, they are typically motivated to sell these homes by the end of the year.

This dynamic can be especially true for publicly-traded builders who are even more motivated to hit year-end sales numbers.

Up and down the Front Range there are beautiful new homes in fantastic neighborhoods. The builders of these homes may be happy to make concessions and provide incentives as long as you close by year-end.

We just recently helped a buyer with a very compelling incentive package from a builder which included a lower price, additional landscaping and window coverings.

If you would like more details about these kinds of opportunities, reach out and we can help.

Foundation • Windermere Foundation • October 30, 2019

Windermere Foundation Has Raised Over $1.5 Million This Year!

by Windermere Windsor

Windermere offices throughout the Western U.S. have been busy raising money and making donations to non-profit organizations in their local communities that provide services to low-income and homeless families. And their efforts are paying off; so far this year we’ve raised over $1.5 million, bringing the total raised by the Windermere Foundation to $39.5 million since 1989.

Here are just a few examples of how our offices are giving back to their communities:

Fort Collins, Colorado

The Windermere Real Estate office in Fort Collins held its 5^th Annual Windermere Foundation Tailgate Party on Friday, September 20. The family-friendly event featured food, drinks, a bouncy house obstacle course, corn hole, face painting, and live music. Over $1,800 was raised for the Windermere Foundation during this event. All proceeds from the tailgate “party with a purpose” benefitted Partners Mentoring Youth and Crossroads Safehouse.

Centralia, Washington

The Windermere office in Centralia, WA sponsored the “Down Home: A Toledo Shindig” event held at Bonanza BBQ on September 14 to benefit Toledo School District students in need. Local businesses and residents came together to donate auction items, food, and volunteer their time. Windermere owner Dan Gorton spearheaded the organization of the fundraising event, seeing a need in the community that was not being met. The Gortons provided the venue and the BBQ. Other sponsors provided additional food items, entertainment, and big-ticket items for the auction. The event raised $34,000 for a fund to help provide basic needs for students in the school district, things that low-income families couldn’t otherwise afford.

Photo Courtesy of Josie Ray Photography

Spokane, Washington

The Windermere office in Spokane, WA held their annual Windermere Shoes and Socks Event at their local Big 5 sporting goods store on August 24. Windermere agents and family members volunteered their time to help 132 children select a pair of shoes and socks. An additional 250 pairs of socks were also donated by Liberty Lake Rotary. In total, the Windermere office donated over $5,400 to provide shoes and socks to local children in need.

Windermere offices are proud to host events in their communities, like the ones mentioned above. These generous donations to the Windermere Foundation further our mission to support low-income and homeless families in the areas where we live and work. If you’d like to help support programs in your community, please click the Donate button.

To learn more about the Windermere Foundation, visit WindermereFoundation.com.

Blog • Economy • October 28, 2019

How to Cover Unexpected Costs with a Personal Loan

by Windermere Windsor

Owning a home comes with its rewards — it’s an investment, a cozy haven to kick-up your feet after a long day of work, and a welcoming place to bring family and friends together. Although all of this makes homeownership fulfilling, owning a home also opens the door for unexpected (but necessary) expenses.

If you’ve suddenly been hit with a home improvement project that’s pinching your budget, like a roofing issue or heater malfunction, a personal loan might be an option to help cover the cost.

What is a personal loan?

A personal loan is an installment loan that’s typically issued by a bank, credit union or online lender. According to the Federal Reserve, the average interest rate on a two-year personal loan is 10.22% but varies depending on your credit score and other criteria. Some lenders offer repayment terms anywhere from 12 months to five years.

A benefit of using a personal loan for emergency home improvement projects is that the approval process is generally quick so you can address urgent home repairs sooner. Some online lenders can run a credit check, approve your application and send funds your way with a couple of days. The approval process for banks and credit unions, on the other hand, can take anywhere from a couple of days to a couple of weeks, if the lender needs additional information.

How to find a personal loan

If you’ve decided that a personal loan makes sense to fund your next home project, make sure you’re aware of these next steps.

1. Assess your budget

The last thing you need is taking out a personal loan only to realize after the fact that you can’t afford to repay it. Calculate how much you realistically need for your home improvement project, giving yourself a reasonable buffer for unforeseen repair expenses (e.g. permit fees, price changes for a specific material, etc.)

Then, tally your monthly income and financial obligations to ensure you still have enough cash on hand to keep the lights on and make monthly installments toward your loan. Using a spreadsheet or budgeting app can help you track these numbers easily.

2. Know your credit score

Generally, you need a good credit score to get approved for a personal loan. Your credit score is one of the key factors that lenders use to determine whether your application is approved, and a higher credit score results in a lower interest rate offer.

Check your credit score with the three credit bureaus to ensure there isn’t an error or suspicious activity that might inadvertently lower your credit score. For a free credit report, go to AnnualCreditReport.com to see where your credit stands before moving forward in the process.

3. Compare rates and terms

When you’ve confirmed that you have a good credit score that can get you competitive interest rates, it’s tempting to accept a loan from the first lender that approves you. But like other major purchases, it’s important to shop around.

Compare interest rates, annual percentage rates (APR), and term durations available, and read the fine print for any conditions or fees that might offset any benefits.

To start, try reaching out to your existing financial institution first to see what they can offer; sometimes credit unions, in particular, offer rate incentives for loyal members. Also, consider using a personal loan aggregator website to compare offers from multiple online lenders at once (just do your due diligence to ensure the site is legitimate).

4. Submit an application

If you’re ready to submit an application, you can either complete a form online or apply in-person, depending on your lender. Although all lenders require different information to process a loan application, some common information to prepare ahead of time include:

Personal information
Income
Employment information
Reason for the loan
Amount you want to borrow

To minimize any delays on your end, it’s helpful to prepare copies of verification documents, such as a driver’s license, proof of address like a utility statement, information about your home and pay stubs. Your prospective lender will likely reach out to you if they need any other information to make a decision.

Although it’s always best to have emergency savings set aside for a sudden home improvement project, turning to a personal loan is a useful option when you’re pressed for funds and time. As urgent as your project might feel, however, always take the time to do your research to ensure you’re making the right move for your situation.