Simple Steps to Saving for a Down Payment

by Suzanne Ekeler

Heterosexual couple looks over documents printed in her hands and on his tablet. They’re smiling together on their couch in their rental home as they see that their savings have built up enough over time to afford a down payment for their first home.

Whether your dream home just came onto the market or you’re thinking ahead for a purchase down the road, coming up with the money for a down payment can feel daunting. Don’t fret! There are steps you can take now—both large and small—that will add up over time to help you secure the funds you need to make that offer.

Determine how much you need

First things first, set your goal. The answers to these questions will help you determine what you’ll need to budget for the down payment:

What do homes cost in the area you where want to live?
How soon are you looking to buy?
Do you qualify for buyer-assistance programs in your area? Where have interest rates been going (up or down) lately?

Don’t forget about closing costs when calculating how much you’ll need!

Start a high-yield savings account

It’s difficult to keep track of how much you’re saving if you’re putting all your money in the same account you pay for living expenses with. Your down payment fund deserves its own savings account.

Look for high-yield savings account options at your current bank or find a new bank that offers one. Many banks today offer a 3-5% annual yield that will compound quickly.

Eliminate unnecessary expenses

No, you don’t need to stop eating avocado toast or give up your hobbies. Even simple changes can quickly add up.

Go thrifting instead of buying new clothes.
Get your library card rather than buying new books.
Cancel subscriptions to publications or services you rarely use.
Prepare meals at home a few times a week instead of dining out.

Though cutting back can sometimes feel like an inconvenience, these adjustments are temporary and don’t have to change how you live too drastically. Even while you’re re-prioritizing your spending, you can still simultaneously save for things like travel, and all the provisional adjustments will feel worth it when you’re enjoying your new home.

Don’t dip into emergency funds

Though it can be tempting to look at your retirement account balances or emergency savings account and daydream about barbeques in your new back yard, don’t give in. The tax implications of cashing out a 401K or IRA almost always outweigh the benefits of the quick money, and many retirement accounts require paying them back relatively quickly, likely before you’ll have built equity in your home. And your emergency fund is there for just that: emergencies. Life can be unpredictable and having at least six months’ living expenses stored away offers peace of mind is priceless.

Automate your savings

If you haven’t already, arrange to have your paycheck automatically deposited into your bank account, and then designate a percentage of it to go directly into savings rather than checking. This helps ensure that you’re putting the cash away before you use it on other expenses. By depositing directly into your savings account you’re less likely to think about it when making a purchase.

Other ways to automate savings include taking advantage of programs that will round up any purchases you make from checking and put the difference directly into your savings account. Check to see if your bank offers this or look into available applications in your app store. You can also use a credit card that offers cash back on a percentage of what you spend and save those rewards in your separate savings account. Just be sure to pay the bill completely each month!

Take advantage of windfalls

If you get a raise, bonus, or inheritance, put the extra money right into your high-yield savings account and stick to the budget you had before the windfall. You won’t feel a difference in your lifestyle, but even an incremental increase will help chip away at your goal.

Ask for help

Weddings, graduations, new babies, and other major life events are great opportunities to ask for cash in lieu of gifts. Be sure to document any gifts appropriately, and as long as it is a gift and not a loan, money from family and friends can help put you in a home you’ll all be able to enjoy together soon.

Buying a home is likely to be the largest financial transaction you’ll make in your life, and saving enough for a down payment can feel overwhelming. But with some dedication and smart money choices, you could be ready sooner than you think. Good luck, and happy saving!

Virtual Tour • Windsor Real Estate • July 12, 2024

Charming Centrally Located Ranch

by Suzanne Ekeler

Welcome to 216 10th Street, a charming ranch-style home centrally located in Windsor. Boasting over 1800 sq ft all on a single level, this residence features 3 bedrooms and 2.5 bathrooms. Inside, you’ll find a spacious living room, a kitchen equipped with cherry cabinets and silestone countertops, and elegant hardwood floors throughout. An inviting sunroom with tile floors extends from the kitchen, offering a tranquil space to relax. Outside, a fenced yard is complemented by a convenient 2-car attached garage. Situated within walking distance to downtown Windsor and the lake, this home offers both comfort and convenience. Call (970) 590-4841 today for a private showing or click here for more information.

Arvada Real Estate • Ault Real Estate • Berthoud Real Estate • Colorado Real Estate • Eaton Real Estate • Evans Real Estate • Greeley Real Estate • Johnstown Real Estate • Loveland Real Estate • Milliken Real Estate • Severance Real Estate • Timnath Real Estate • Westminster Real Estate • Windsor Real Estate • July 11, 2024

Why Buyer Representation Should Matter So Much to Sellers

by Suzanne Ekeler

Real estate agent showing a couple a new house. The house is contemporary. All are happy and smiling and shaking hands. The couple are casually dressed and the agent is in a suit. The house has a brick facade

In today’s rapidly changing real estate landscape, understanding the critical role of buyer representation has never been more essential for home sellers. With the pending NAR settlement on the horizon, many sellers may not fully grasp the significant impact these changes will have on their transactions. The urgency to adapt is real, and overlooking the necessity of paying a buyer agent commission could expose sellers to unforeseen risks.

Currently, home buyers are not allowed to roll their buyer agent compensation into their loan. This means they must bring cash to the table to pay their agent (if the seller is not offering buyer agent compensation).

Unrepresented buyers should be considered more than a minor hiccup—it can lead to a cascade of complications that jeopardize the entire deal. To safeguard your investment and ensure a smooth transaction, it’s crucial to recognize the invaluable support a buyer’s agent provides.

What value does a seller receive if the buyer has professional representation? Let us list the ways:

Lender Connections: Buyer agents connect their buyers with well-vetted (and typically local) lender partners who have proven time and again that they can close a transaction, and on time.

Documentation Management: Buyer agents ensure that buyers have delivered all necessary documentation to the lender to ensure full underwriting.

Market Analysis: Buyer agents provide comparable market analysis reports (CMAs) to help buyers understand the market value of the home and support a reasonable offer price.

Contract Guidance: Buyer agents guide their clients through the purchase and sale agreement, ensuring that they understand the terms and conditions and their ability to fulfill their commitments.

Contingency Explanation: Buyer agents explain all contingencies to buyers, ensuring they understand the risks and rewards, especially when waiving contingencies.

Earnest Money Handling: Buyer agents ensure that earnest money funds are delivered to escrow on time.

Transaction Deadlines: Buyer agents ensure that their client and their lender observe and adhere to all deadlines to keep the transaction flowing smoothly and closing on time.

Inspection Access: Buyer agents provide access to home inspectors and help their buyers understand the reports. This is critical as most MLS associations require an agent to be present whenever a door is opened. If the buyer doesn’t have representation, the listing agent must give access, exposing them to inspection findings and forcing them to disclose on behalf of the seller.

Appraisal Assistance: Buyer agents give access to appraisers and typically provide reports of comparable properties to support the purchase price, ensuring the property appraises at value.

Negotiation Support: If the appraisal report comes in less than the purchase price, the buyer agent will help negotiate and collaborate with the listing agent to ensure a mutual agreement is reached by all parties.

Transaction Coordination: Most importantly, the buyer broker helps keep their client and all parties on track to ensure closing, and crucially, on time.

The value a buyer agent brings to the transaction is indispensable. Their expertise not only facilitates a smoother process but also protects all parties involved from potential pitfalls. By ensuring the buyer has professional representation, sellers can avoid significant risks and secure a successful transaction. In the evolving real estate market, investing in buyer agent compensation is a wise decision that benefits everyone involved.

Arvada Real Estate • Ault Real Estate • Berthoud Real Estate • Blog • Buyers • Buyers & Sellers • Colorado Real Estate • Eaton Real Estate • Evans Real Estate • Greeley Real Estate • Johnstown Real Estate • Loveland Real Estate • Milliken Real Estate • Severance Real Estate • Timnath Real Estate • Westminster Real Estate • Windsor Real Estate • July 8, 2024

Essential Tips for Building the Grilling Station of Your Dreams

by Suzanne Ekeler

Beautiful backyard with barbeque area and dining table

Summer is the season for outdoor entertaining, which means it’s time to fire up the grill and dust off the patio furniture. But is your yard the grilling paradise you want it to be, or is it more of a fixer-upper? Here are a few tips to get your backyard in prime shape for the searing, savoring, and relaxing to come.

What’s your vision?

Before diving into the details, let’s start with the vision question: What kind of grilling station do you want? Are you aiming for a cozy spot to share meals with friends and family? Or are you looking to transform your yard into the ultimate grilling paradise? Setting clear goals will guide your preparations and upgrades.

Basic grilling setup

If your goal is a simple, functional space where a few friends can share a meal, focus on the essentials:

Choose a less-trafficked location:

Even a small grill station will take up significant space, not to mention the crowd it may attract. With that in mind, avoid situating it in areas of high foot traffic, such as near the stairs of your deck or along a main walking path. Be sure to provide ample room between the barbecue and your backyard seating.

Pick the grill for you:

If you’re looking to buy a new grill, consider your tastes and needs. Do you love imparting a rich, smoky flavor to your grillables? Charcoal may be your jam. If you prefer speed, convenience, and temperature control, gas is the likely choice. Keep in mind that simple charcoal grills are often more convenient for small yards, as you can easily move them aside when you’re done grilling. Most standalone gas grills come on wheels, but their bulk and weight make them less mobile in comparison. Growing in popularity, electric grills may be the safest and most convenient option—you’re always stocked with fuel—but purists may balk at grilling over anything but an open flame. Plus, repairs can be costly.

Create a prep area:

Your grilling area will be greatly enhanced with a prep and serving station. It doesn’t need to be elaborate—even a small table or cart can do the job. Ideally, it’ll have room for your grilled foods, condiments, and utensils. Even better if it can hold items like a cutting board, plates, and serving platters.

Make your guests comfy:

The right combo of seating will add the social touch to your BBQ setup. Bench seating is a popular option for grilling on the deck, while chairs on the grass impart more of a picnic feel. Choose enough seating for your typical group size, with a mix of chairs and perhaps a small table or two. A picnic table is a popular choice if you have the space. Also consider an umbrella or canopy for shade and weather protection.

Build some ambience:

Installing a fire pit will create a fun social space once the sun goes down. Plenty of styles are available, including simple tabletop models, fire pit bowls, metal standalones, and rustic chimineas. In making your choice, consider factors like cost, style, size, and how the fire pit matches your yard’s design. Adding String lights, lanterns, and/or tiki torches can also make your yard more inviting.

Mixed gender and diverse ethnic group of friends gathering by the pool, with string lights and barbecue, enjoying an informal evening party outdoors.

Ultimate grilling Shangri-La

If you’re dreaming of a more elaborate outdoor kitchen and entertainment area, start planning for these features:

Add a high-end grill and smoker:

Some backyard chefs take grilling seriously. If your smoked brisket and grilled stuffed peppers are already a point of pride, consider upgrading to a smoker or high-end grill. Smokers cook at lower temperatures over a longer period, which infuses meats with deep, smoky flavors and results in incredibly tender and juicy textures. High-end gas grills have a host of features that set them apart from basic grills, including more cooking space, better heat distribution, and built-in thermometers for precision cooking. Many also offer innovative side burners for cooking up veggies or boiling water.

Install outdoor countertops:

The most memorable outdoor kitchens mimic indoor kitchens, complete with ample counterspace, underside storage, and often a built-in dishwasher, sink, and/or fridge. Installation can be complicated, especially if you add plumbing or electrical, but the final product can transform your outdoor living space into a culinary haven. Select a durable material that suits the style of your home and your cooking style. Natural stone, concrete, or tile are good choices. Make sure to include plenty of built-in storage for grilling tools, utensils, and outdoor dining essentials.

Create a comprehensive seating area:

Outdoor living is a different mindset than backyard grilling, so look for ways to integrate multiple seating areas, including a dining table, lounge chairs, an outdoor sectional, and possibly a bar area (bonus points if it blends seamlessly with your countertops). Not only can you host bigger gatherings, but you can move your party from one area to another as the evening progresses (very sophisticated). You can get more mileage out of your space by adding a pergola or retractable awning for all-weather entertaining.

Enhance your lighting:

Built-in lighting can improve both your space’s functionality and its ambiance. At the minimum, install task lighting for areas where you’ll be doing most of the cooking and prep work and ambient lighting such as string lights or wall-mounted sconces around the seating areas. Consider accent lighting to showcase some of your area’s most elegant features, such as architectural details, plants, or pathways.

Upgrade your sound:

A myriad of sound systems are available to set the mood, from basic weather-resistant speakers that connect to your phone via Bluetooth to integrated sound systems that communicate with your home’s existing audio setup. More advanced setups have different audio zones for different areas, such as louder music near the grill and softer music near the dining or lounging spaces.

By starting with a clear vision and breaking down the process into manageable steps, you can create the ideal grilling station for your wants and needs. And remember, you can always start simple and build toward your dream outdoor kitchen in the future. Happy grilling!

Ault Real Estate • Berthoud Real Estate • Blog • Buyers • Buyers & Sellers • Colorado Real Estate • Eaton Real Estate • Evans Real Estate • Greeley Real Estate • Johnstown Real Estate • Loveland Real Estate • Milliken Real Estate • Severance Real Estate • Timnath Real Estate • Westminster Real Estate • Windsor Real Estate • July 3, 2024

Streamlining Your Life: 7 Tips to Make Downsizing Easier

by Suzanne Ekeler

Generation X African-American Couple Unpacking Memories and Smiling in New Home During Retirement Transition

Whether you’re retiring, moving into a smaller space, or simply want to live more minimally, downsizing can simplify the process. After all, the fewer belongings you have, the less you need to pack, move, and organize in your new place. But for many of us, the mere idea of downsizing can be daunting. How do you decide what to keep and what to let go of after accumulating a lifetime of possessions, mementos, and memories?

The secret, as it so often is, is to plan ahead. Here are some tips to make downsizing easier.

Start early:

Begin the downsizing process several months before your move date if you can. Starting early allows you to pace yourself and avoid last-minute rushes. It also gives you time to work through your emotions, so you’re less likely to keep something you don’t use simply because you’ve owned it for years.

Create a downsizing calendar:

Budget your time by dedicating specific days or weekends to different tasks, such as sorting through possessions, donating items, and dealing with recycling or disposal. Like a to-do list, a calendar can inspire action by giving you a clear agenda for each day or week.

As part of the process, research where to drop off items and their operating hours to improve efficiency. For example, you may need to schedule pickups or drop-offs for local charities or other organizations that accept donations. Also allow extra time if you’re posting items online, as they may take longer to sell.

Sample calendar:

• Week 6: Donate remaining items and arrange for recycling or disposal.

Develop criteria for making decisions:

When planning, factor in your reasons for downsizing, and use these as criteria when faced with difficult choices. For example:

If you’re simplifying:

If you’re cutting costs:

If you’re moving into a smaller space:

Sort items by their intended destination:

Designate specific areas for items you plan to keep, donate, sell, recycle, or dispose of. Use labels or colored markers to clearly mark each pile.

Keep:

Donate:

Sell:

Recycle:

Discard:

No longer useful items that can’t be recycled

Take it room by room:

Treat each room as a separate project. You may want to start with a smaller room that you’re less emotionally attached to, like a home office, to make decisions easier. Once you’ve finished each room, give yourself a pat on the back before moving to the next. Recognizing these smaller accomplishments can provide a mental boost as you work towards achieving your larger goal.

Consider off-site storage:

If you don’t have as much time as you’d like or have more valuable items than your new space will accommodate, consider renting an off-site storage unit. Some people use storage units for six months to a year after a move, allowing them to sort through their items at a more deliberate pace. This approach lets you gradually incorporate some items into your new living arrangement and decide what to do with the rest. However, be careful not to fall into the “out of sight, out of mind” trap. It’s easy to neglect a storage unit, only to realize years later you’ve made little progress.

Take time to reflect:

For many people, the hardest part of downsizing is letting go of belongings with sentimental value. Give yourself time to process the emotions tied to these items. Think of them as treasured memories rather than losses, and take photos of items you cherish but can’t keep. Shifting your perspective can also be helpful. This can be a liberating transition to a new lifestyle—one that’s more thoughtful about what’s worth holding onto. And remember, there are always new memories to be made!

Ault Real Estate • Berthoud Real Estate • Buyers • Buyers & Sellers • Colorado Real Estate • Eaton Real Estate • Economics 101 • Evans Real Estate • Friday Fun Facts • Greeley Real Estate • Johnstown Real Estate • Loveland Real Estate • Milliken Real Estate • Sellers • Severance Real Estate • Timnath Real Estate • Windsor Real Estate • July 1, 2024

Ninety Eight Percent

by Suzanne Ekeler

Properties in Northern Colorado sell for 98% of their list price on average.

This single statistic communicates two interesting facts about the market.

First, this is not a market full of desperate sellers who are willing to accept low ball offers.

Second, properties that are priced right are the ones that are selling.

So, if a seller has an appropriate price, they can expect to receive an offer very close to the list price.

Arvada Real Estate • Ault Real Estate • Berthoud Real Estate • Buyers • Buyers & Sellers • Colorado Real Estate • Eaton Real Estate • Evans Real Estate • Greeley Real Estate • Johnstown Real Estate • Loveland Real Estate • Milliken Real Estate • Severance Real Estate • Timnath Real Estate • Westminster Real Estate • Windsor Real Estate • June 27, 2024

Should I Rent or Buy a Home?

by Suzanne Ekeler

Some Highlights

While renting may be less expensive in some areas right now, there are two big benefits homeownership provides that renting can’t.
Owning a home means you get to say goodbye to rising rents and hello to stability. It also gives you the chance to gain equity as home values rise over time.
If you’re ready to learn more about the perks of owning a home, connect with me today, EkelerRealEstate.com

How Many Homes Are Investors Actually Buying?

by Suzanne Ekeler

Are big investors really buying up all the homes today?

If you’re trying to find a house to buy, this may be something you’re wondering about. Maybe you’ve read about it or seen reels on social media saying investors buying all the homes is making it even harder to find what the average buyer is looking for. But spoiler alert – there’s a lot of misinformation out there. To clear things up, here’s the scoop on what’s really happening. A lot of the big investor activity is actually in the rearview mirror already.

The Wall Street Journal (WSJ) explains:

“Investors of all sizes spent billions of dollars buying homes during the pandemic. At the 2022 peak, they bought more than one in every four single-family homes sold, though more recently their activity has slowed as interest rates rose and supply became tighter.”

The key here is investor activity has slowed significantly, and even during the peak of investor buying, 3 out of every 4 single-family homes purchased were by regular, everyday buyers – not investors. And of the investors who bought over the past few years, most weren’t the big investors you may be hearing about. The vast majority were small mom-and-pop investors – people like your neighbors who own only a couple of homes, maybe even just their main residence and a vacation home.

But let’s focus on the giant, mega-investor firms since that’s what is being talked about so frequently on social media right now. Mega investors are those who own 1,000+ properties. You may be surprised to see that, according to the Wall Street Journal, they don’t buy all that many homes (see graph below):

This graph tells us two things. First, institutional investors were never buying a large percentage of available homes. During the peak in 2022, they bought about 2% of available single-family homes. Second, that percentage has gotten even smaller recently (so small the number rounds down to 0%).

In an effort to understand why that percentage is trending down, private lender RCN Capital asked investors about the challenges they’re facing. Here’s what Jeffrey Tesch, CEO of RCN Capital, found out:

“Investors are already facing many challenges in today’s housing market – rising prices, limited inventory, and higher financing costs.”

Understanding these challenges is important because they show big, mega investors aren’t taking over the housing market.

So, don’t fall for everything you hear. They aren’t snatching up all the homes and making it impossible for regular people to buy.

Bottom Line

Big investors aren’t buying all the homes out there. If you’ve got questions about what you’re hearing about the housing market, chat with me today, EkelerrealEstate.com. I can help you understand what’s really going on.

Your Agent Is the Key To Pricing Your House Right

by Suzanne Ekeler

Some Highlights

The asking price for your house can impact your bottom line and how quickly it sells.
Both under- and overpricing have drawbacks. So to find the right price for your house, lean on your agent for their expertise.
Don’t pick just any price for your listing. Trust your real estate professional to help you find the perfect price for your house.

Ault Real Estate • Berthoud Real Estate • Buyers • Buyers & Sellers • Colorado Real Estate • Eaton Real Estate • Evans Real Estate • Greeley Real Estate • Johnstown Real Estate • Loveland Real Estate • Milliken Real Estate • Sellers • Severance Real Estate • Timnath Real Estate • Windsor Real Estate • June 18, 2024

How Do Climate Risks Affect Your Next Home?

by Suzanne Ekeler

For Buyers, Buying Tips

Climate change is impacting where people buy homes. As the experts at the National Association of Realtors (NAR) explain:

“Sixty-three percent of people who have moved since the pandemic began say they believe climate change is—or will be—an issue in the place they currently live.”

If you’re planning to move, climate change is something you might want to consider, no matter where you are. A recent study from Realtor.com helps put the growing impact climate change is having on real estate into perspective (see below):

So, how can you be sure your investment is safe from the elements?

For starters, work with a local real estate agent to understand the likelihood of your future home being exposed to hazards like wind, floods, and wildfires. Your agent will know the area and be able to tell you about the risks you’ll most likely face.

Beyond that, there are two important factors to think about: the quality of the home you want to buy and the insurance you’ll need to protect it.

A Home Built to Last

If you’re planning to be in your home for many years, you want to know it’s going to last. One way to think ahead is to work with your real estate agent to ensure the home you buy can withstand environmental hazards. They’re up to date on the most common building and remodeling techniques—like a secondary water barrier on the roof or noncombustible, fire-resistant exterior walls—used to protect homes from the effects of climate change.

And if the home you’re interested in doesn’t have the features you’re looking for, they can help you determine what you may be able to negotiate in the contract or what work it might require in the future.

Insurance To Protect It

Once you’re confident the home you’re looking at is well built, the next step is finding out what it’s going to take to insure it. As Selma Hepp, Chief Economist at CoreLogic, says:

“. . . homeowners are going to become increasingly more aware of risks of living in some areas as it becomes prohibitively expensive or very difficult to obtain hazard insurance.”

In areas where climate risks are having a bigger impact, the right home insurance can make a big difference. And the price of that insurance is an important factor when thinking about your budget and the true cost of buying and protecting your home. Get an insurance quote early in the process because you may want to compare multiple quotes and it can take several weeks to get them.

While this may feel like a lot to consider, don’t worry. An agent can help. Your real estate agent will be your go-to resource on the homebuying process, what to look for and consider, and how climate change may affect your next home. With the right planning and an agent’s expert advice, you can make this happen. Homeownership is worth it. And with a great agent by your side, you can make sure the home you find is the right fit.

Bottom Line

Climate change is an important factor to think about when buying a home. After all, your home is a huge investment, and you want to be ready for anything that might affect it. Chat with me, EkelerRealEstate.com, so I can help you find the perfect home for you.