Blog • Johnstown Real Estate • Virtual Tour • March 31, 2021

Johnstown Beauty!

by Suzanne Ekeler

Welcome home to this beautiful, well-maintained, updated home in Johnstown area. 2224 Black Duck Avenue backs to an open field, so no worries about someone building behind you. Your new home gives you hardwood floors throughout the whole main level, updated kitchen and bathrooms, gas stove, double ovens, formal dining and living room, 5 total bedrooms; one junior en-suite bedroom, one on main level that could be used as an office, 4 total bathrooms: 5piece master, a gas fireplace, loft plus another bonus room above the garage, 2 A/C’s, shed with electricity, 2021 roof, exterior paint 2018, washer/dryer stay, and so much more. This is a must-see home and will not last. Call for your private showing at (970) 590-4841 for more information or click the link below for more details.

http://windermerewindsor.com/listing/129645907

Buyers • Buyers & Sellers • Economics 101 • Friday Fun Facts • March 26, 2021

96 Weeks

by Suzanne Ekeler

Mortgage rates have been below 4% for 96 weeks in a row.

Today, the average 30-year fixed mortgage rate sits at 3.17%.

This is 0.5% lower than January and exactly 1.0% lower than March 2020.

Rates recently ended a 31-week streak of being under 3%.

Over the last 5 years, rates have averaged 3.8%.

Most experts believe that rates will continue to creep higher as the year goes on.

Buyers • Buyers & Sellers • March 25, 2021

Working with a Buyer’s Agent

by Suzanne Ekeler

What is a Buyer’s Agent?

A typical real estate transaction involves a buyer’s agent representing the buyer and a listing agent representing the seller. A buyer’s agent helps the buyer identify potential homes to pursue, advises them on negotiations, and helps navigate any hurdles during the buying process. Once they are under contract, the buyer’s agent will work to close the sale, monitoring all the key dates and deadlines along the way. Once the transaction is complete, buyer’s agents split the commission of the sale with the listing agent.

Advantages of Working with a Buyer’s Agent

Find the right home

A buyer’s agent not only possesses expert knowledge of local market conditions, but they also have access to tools that will help their clients see the widest array of available homes, and eventually, find the right home. By exploring the Multiple Listing Service (MLS), they can access the vastest network of available listings, and receive up-to-date alerts on open houses. They are usually the first to know when a home hits the market and are sometimes aware of homes that are scheduled to list in the near term. Buyer’s agents can advise their clients on how a home’s outstanding repairs and improvements could affect their decision to purchase, whether the home is in need of an inspection, and discuss the necessity of a home warranty.

Save time

Buying a home takes time, but a buyer’s agent will help streamline the buying process. This includes paying close attention to their client’s budget and preferences in order to focus their home search to only those listings that match their needs. Buyers can then decide which homes they would like to view in-person and their agent will contact the corresponding listing agent to set up showings. Buyer’s agents are founts of knowledge, able to provide or track down information a buyer may not be able to readily access on their own. Additionally, they are connected to a network of professionals and can produce references for mortgage brokers, real estate attorneys, inspectors, and more as needed.

Making an Offer

Once you’re ready to make an offer on a home, the importance of working with a buyer’s agent kicks into high gear. There are many different elements that impact an offer’s success, and this is where a good buyer’s agent’s specialty lies. Through their expertise, they can help their clients craft a more competitive offer and negotiate as needed. Sometimes the most competitive offers are not just about the price. Offers can win when a buyer’s agent has researched the seller’s needs and pulled together an offer that speaks to those needs. Any advantage buyers can gain to make their offer stand out will strengthen their case. This is especially important in competitive markets when multiple competing offers are on the table.

Throughout the process of making an offer on a home, a buyer’s agent is there to answer any questions that may arise and pore over the details so that nothing goes unnoticed. This is critical since sellers will likely toss aside any offers that come in with missing documents, errors in the contract, and other inconsistencies. When buying a home, buyers often fear that they will miss something during the buying process, that they are going to pay too much, that there will be something wrong with the house after they buy it, or that they’ll lose the home to another buyer. Buyer’s agents help to alleviate these stresses and make sure the buying process runs smoothly.

When determining which agent to work with, it’s important to ask questions to gain an understanding of their expertise, see their personality, and get a gauge of how well they understand what you’re looking for in a home. If you would like some help connecting with an agent, you can get started here: Connect with An Agent

Buyers • Buyers & Sellers • Economics 101 • Friday Fun Facts • March 13, 2021

Enormous Equity

by Suzanne Ekeler

Hot off the press is the Core Logic Homeowner Equity Report. This is their quarterly look at what is happening with homeowners’ equity across the country.

Here are the staggering numbers coming out of their research:

Collectively, U.S. homeowners with mortgages have realized a $1.5 Trillion gain in equity over the last 12 months.
Only 2.8% of all mortgaged properties have negative equity meaning the home is worth less than the loan amount.
In Colorado, just 2.5% of homeowners have negative equity. For comparison, the percentage in Louisiana is 10.7%.

This research is one of many reasons why we don’t see any sort of impending housing crisis like we experienced in 2009. In the fourth quarter of 2009 for instance, 26% of all homeowners had negative equity.

Buyers • March 9, 2021

Relocating for Remote Work

by Suzanne Ekeler

A woman works from her home office, talking to her co-workers via video conference.

As the ubiquity of working from home continues, many homeowners are making the decision to move. Whether the motivation for relocating is to lower the cost of living, to be closer to family, or simply a fresh start, there are various factors to keep in mind when relocating for remote work.

Before You Relocate

Before you make the jump to a new life in a new place, making time for some strategic planning will help ensure your relocation goes as smoothly as possible. A logical first step is to consider the financial impact of your move. Depending on your company’s policy, there may be adjustments to your pay when you relocate. If this is the case, factor in your pay change as you form your relocation budget. Research the cost of living in your new hometown to understand how a compensation adjustment may affect your home search and your lifestyle once you move.

If you are moving out of state, relocating could affect your benefits and your taxes as well. There’s a chance that your employer’s health insurance plan does not offer coverage in the state you’re moving to. Talk to your employer to discuss your options. Before moving out-of-state, find out whether the two states have a reciprocal tax agreement, especially if you’re moving between states that have differing income tax regulations.

Your New Home for Remote Work

Working remote has given homeowners the freedom to choose their desired location, unbound by a work commute, especially if their company has indicated that there are no clear signs of returning to in-person work anytime soon. Knowing your desired work environment will help to tailor your home search. If you’re looking for peace and quiet while you work, explore listings in rural areas. If the hubbub of city life is your idea of a comforting backdrop, direct your attention to metropolitan areas.

For the remote worker, it’s more important than ever that your home accommodates your working needs. As many homeowners have experienced throughout the pandemic, you spend a great deal of time in your home office, so finding the home with the best workspace for you should be a priority. If you desire a private area where you can focus, a home with an open floor plan may not be the best choice. Instead, you may want to look for homes with a separate bonus room or extra bedroom.

Once you’ve moved into your new home, it’s time to put together your home office. Whether your previous home office was a professionally curated environment or a makeshift workspace in the corner of a room, a new home means a fresh start for your remote work. Like many homeowners, by now you’ve likely got a solid grasp on what your ideal home office looks like. Keep those elements alive when you relocate and enjoy productive workdays in your new home.

Buyers • Friday Fun Facts • Housing Trends • March 5, 2021

Homebuilder Headaches

by Suzanne Ekeler

The National Association of Home Builders recently surveyed their members to ask them about the challenges they currently face and the challenges they expect to face.

Far and away, the biggest headache for homebuilders right now is the rising cost of building materials.

96% of the survey respondents cited this as a significant problem they faced in 2020 and 89% believe it will be a significant problem this year.

It turns out that builders are not only concerned about building material costs, but also the availability of those materials.

78% said availability was a significant problem last year and 80% said that it will be a significant problem in 2021.

Due to increasing materials costs, we notice builders locally having to raise their base prices significantly in order to keep up with rising costs.

Buyers • Buyers & Sellers • March 3, 2021

The Importance of Pre-Approval

by Suzanne Ekeler

To set yourself up for a smooth and successful home purchase, getting pre-approved is perhaps the most productive first step you can take. It strengthens your buying credibility, informs your home search, and speeds up the closing process.

The Pre-Approval Process

There is an important distinction to made between two important steps of your mortgage application process: pre-qualification and pre-approval. They are similar in that they both help to inform your financial standing, but there are key differences between the two.

Pre-qualification

Pre-qualification is the first step in your mortgage application process. It will help you to understand the approximate loan amount you can expect to qualify for. You’ll begin by sharing your financial information—debt, income, assets, etc.—with you bank or lender. After reviewing the information, the bank or lender will give a loan estimate. The process is relatively simple, only taking a few business days to process.

Pre-approval

The pre-approval process is more involved than pre-qualification. After submitting a mortgage application, your lender will require all the necessary info to conduct a thorough credit history check and review of your financial health. Getting pre-approved will give you a better idea of how much you can borrow, estimated monthly costs, and what interest rates you can expect on your loans. Mortgage pre-approvals are typically valid for 60 to 90 days.

Benefits of Pre-Approval

Credibility

The truth is, each home on the market can only go to one buyer. To maximize the chance that your offer is accepted, sellers need to know that your offer is serious. Getting pre-approved shows that you are financially prepared and, in the event that your offer is accepted, there will be no hold ups in obtaining your mortgage. This assurance is what sellers want to know about their potential buyers, especially in a seller’s market.

Home search

Not only does pre-approval help to bolster your case as a buyer, but it also Indicates your affordable price range. By knowing your budget, you will be able to hone your home search and start preparing offers, eliminating any potential wasted time looking at houses you can’t afford.

Closing process

Once your offer is accepted, you’ll be counting down the days to move-in. Unfortunately, the closing process can often drag on, leaving buyers feeling like they’re in post-purchase limbo. Pre-approval will speed up the closing process, since the mortgage approvals have already been taken care of, allowing you to focus on next steps like appraisals and inspections.

When to Get Pre-Approved

Being financially prepared for a home purchase is a solid indicator that you’re ready to go about getting pre-approved, but what does that look like? Buying a house means taking on serious debt, so it’s important to either have your remaining debt paid off or have a clear path to becoming debt-free before getting pre-approved. Having adequate savings for a down payment is a sign that you’re ready to make your offer. For any questions about the pre-approval process and to get connected to a mortgage professional, contact your Windermere agent.

Buyers • Buyers & Sellers • Economics 101 • Friday Fun Facts • Housing Trends • Sellers • Windsor Real Estate • February 28, 2021

Days of Inventory

by Suzanne Ekeler

• BUYERS • COLORADO • FUN FACTS • HOUSING TRENDS • LARIMER COUNTY • MARKET NEWS • MARKET UPDATE • NORTHERN COLORADO REAL ESTATE • SELLERS • WINDERMERE REAL ESTATE

In the residential real estate industry, inventory is typically measured in months.

For example, the definition of a “sellers’ market” is when there is less than 4 months of inventory on the market. Meaning, at the current pace of sales, it would take less than four months to sell all the homes currently for sale.

Today it makes more sense to measure inventory in days instead of months.

Here is the number of residential properties currently listed for sale in each market:

Larimer County = 255
Weld County = 261
Metro Denver = 1,645

Here is the current pace of sales in each market:

Larimer County = 10/day
Weld County = 10/day
Metro Denver = 112/day

So, at the current pace of sales, this is how long it would take to sell all the residential properties currently for sale in each market:

Larimer County = 26 days
Weld County = 27 days

Metro Denver = 15 days

At Windermere Real Estate we are taking Safer at Home and Social Distancing very seriously. Our people are following our Safe Showings protocol, staying connected to their clients, and providing help wherever needed.

Buyers & Sellers • Sellers • February 24, 2021

Why Should You Stage Your Home When it’s For Sale?

by Suzanne Ekeler

A large, open living room and kitchen area decorated with modern furniture, house plants, and exposed light fixtures.

In order to sell your home, it must be successfully marketed to potential home buyers. Developing a winning strategy to attract as many buyers as possible to your home is something your real estate agent will work on, and part of that process may include staging.

Staging doesn’t just involve decorating your home; it’s using furniture and décor to reveal the possibilities in the space in order to make it appealing to a wide variety of buyers. It is an important step to helping buyers imagine the space for their own use, and it often leads to a higher dollar value and quicker sale time.

Staging for Buyers

A well-staged home creates stunning photographs that will attract buyers as they search online. In 2020, 97% of home buyers used the internet to search for prospective homes, and about half of them used mobile devices like smart phones and tablets. Because photos on a mobile device can be quite small and easily swipeable, staging has the potential to grab a buyer’s eye and pull them into the listing. Once they visit in person, staging serves to elevate your space while allowing buyers to visualize themselves living in your home.

Investment and ROI

For a relatively low investment, the return on investment (ROI) for a staged listing is worth it for just about any home seller. No matter the size of your home, the average investment on staging is 1% of the sale price of the home. And that 1% investment can lead to amazing gains. According to a 2020 survey by the Real Estate Staging Association, of those who spent 1% on staging, 75% saw a return of 5-15% over the asking price. As this shows, investing in staging can turn into one of the best ways to add value to your home.

In addition to increasing the dollar value of your home, staging is also likely to lead to a quicker sale. In 2020, staged listings sold after an average of 23 days on market. That’s two days faster than the national average of 25 days on market in the same year.

Your real estate agent can connect you with a professional stager who they will work side-by-side with to create a cost-effective strategy for staging your home and getting it sold in the most efficient and effective manner.

Buyers • Buyers & Sellers • Economics 101 • February 19, 2021

Double Lumber

by Suzanne Ekeler

The price of lumber has doubled in three months.

Lumber is just one of several examples of skyrocketing materials costs which are impacting both home builders and home buyers.

The cost of lumber is now at a record-level $1000 per 1000 board feet.

These rising costs not only add to the sales price of a home but also add to the inventory shortage issue. Some large, publicly-traded home building companies are slowing production in hopes of building costs dropping over the next few months.

Many people expected lumber prices to drop, or at least level off, when the tariff on Canadian lumber changed in December.

However, because demand has been so high from both building and remodeling, lumber costs continue to climb.