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Real Estate Market 2020 Recap & 2021 Forecast Denver, CO

Everyone knows that the real estate market fluctuates throughout the year, and some years are more extreme than others. The biggest question on the minds of everyone in 2020 and for the upcoming year is all about knowing when the time is right.

Should I buy or sell a home in Denver right now?

Our expert local agents have your back when it comes to market trends, but here’s a quick guide on understanding how and why the market changes.

Supply & Demand

The real estate market is often used as the number one example of a supply and demand industry. However, it’s important to understand what makes the demand or supply change. You’ve probably heard of a buyer’s or seller’s market before; what are they and how do they come about?

Seller’s market: People use this term when there are eager buyers but few sellers. This means that the homeowners who put their humble abodes up for sale are more likely to get multiple offers. This typically results in higher prices for homes.

Buyer’s market: This term is used when there is a high number of homes on the market and fewer buyers. Sellers often will wait longer for their home to sell and the sale price may be a bit lower than the listing price because buyers have more leverage to work with; when homes aren’t flying off the market, sellers are more willing to negotiate to get their sale underway.

The swing from buyer’s to seller’s market is influenced by several factors. Here are just a few.

Interest Rates

Interest rates play a big role in the ability for many buyers to afford a home. Locking into an interest rate is a long-term decision that spans the life of your mortgage in most cases. Therefore, many buyers are hyper-aware of rates and what that means for their payments over time. When interest rates are low, it gives more buyers the opportunity to make homeownership a reality.

If you’re looking to take advantage of low rates as a buyer, we recommend finding a mortgage lender or broker who can find you the best rates in your area and for your circumstances. Not all lenders are created equal, and a loan officer can help you make the best decision. Homie Loans™ guarantees that they will beat any competitor’s locked loan estimate, or they’ll pay you $500.*

As a seller, it’s still important to be aware of the rates. If you’re selling during a time when rates are high, there’s a good chance there will be fewer buyers.

World Events

Many world and national occurrences, like major storms and weather events, election years, and employment rates, impact the health of the real estate market. Be aware of what’s happening in your local market and keep an eye on the news.

Time of Year

If you’re looking to sell or buy during winter, be aware of how weather will impact you. Snow makes for undesirable moving conditions. This can mean fewer buyers in the market, which sellers may find extends their timeline for selling but buyers may see less competition.

While spring and summer may seem like the best time of year to sell a home, so will everyone else. Be aware of how the warmer months impact competition.

The Role of Real Estate Experts

Real estate agents are key players when buying or selling a home. Agents, like the pros at Homie, live and breathe the market. Whether it’s a buyer’s or seller’s market, your agent can help you make the right decision to sell your home fast and for top dollar or help you find and win your dream home within your budget.

You won’t want to enter the competitive real estate market in Denver without one!

Let Homie Help You Make Your Next Move

If you’re ready to take advantage of the hot market to come in 2021, click here to start your listing.

If your dream home is in your 2021 plans, let one of our buyer’s agents help you find and tour the perfect home, and then build a compelling offer. Click here to get in touch.

Want to learn more about buying or selling? Sign up to get more info directly to your inbox!

What are you interested in?

The post Real Estate Market 2020 Recap & 2021 Forecast Denver, CO appeared first on Homie Blog.

Source: homie.com



Why 2 Finance Experts Still Struggled To Buy This House

home buyerTony Matheson

Think two seasoned certified financial planners would have an easy time buying a house? Tony and Barbara Matheson would beg to differ.

In fall 2019, these empty nesters found themselves itching to downsize from their large rental in the uaexpensive San Francisco Bay Area. Hoping to buy a reasonably priced house within walking distance of restaurants and other amenities, they set their sights on Sacramento, CA. Armed with a healthy income, solid credit history, and a deep knowledge of personal finances—plus they’d owned property before—they figured they would sail through the home-buying process.

Six months and three lost bidding wars later, they realized that Sacramento’s real estate market was far more cutthroat than they’d imagined.

In March, the Mathesons finally purchased a three-bedroom, one-bathroom 1926 Tudor on a tree-lined street. With the closing papers signed, they figured they were home-free—but COVID-19 was about to throw another curveball into the picture.

Here Tony shares their story, and his hard-won lessons for aspiring first-time home buyers and others who want to learn what buying real estate is really like today.

Tony Matheson House
Tony and Barbara Matheson’s new home in Sacramento, CA

Tony Matheson

Location: Sacramento, CA
House specs: 1,225 square feet, 3 bedrooms, 3 bathrooms
List price: $550,000
Price paid: $580,000

Why did you decide to move?

We’d been living in the Bay Area and were looking to downsize since both of our kids had moved out. We wanted to be near downtown Sacramento, close to restaurants, bars, museums, and coffee shops.

I’d think home buying would be a breeze for two finance pros. How did it go?

I was really surprised by how tough the market was. After five months touring homes, we made an offer on our first house. This house went into a bidding war; we had to raise our bid five times before tapping out.

Next, we fell in love with a second home. This time, we offered the sellers $30,000 over the asking price. The sellers had so many other bids, they never even bothered to counter our offer.

We found a third home, and once again bid over the asking price. But after five tries, we lost out again. It was heartbreaking.

How awful! Why do you think these homes sold to other buyers?

We came prepared with what most consider strong financials for making an offer on a single-family home: great credit scores, a significant down payment, pre-approval for a mortgage. We offered good earnest money and 15-day escrow, didn’t include an appraisal contingency, and probably had a few other bonuses to the seller that I’ve forgotten. So we were doing everything “right.”

What we were finding is that we were up against some other buyers who were making all-cash offers, sometimes $50,000 above the asking price. How does anyone compete with that?

So how did you finally get an offer accepted?

We were extremely fortunate that we had a great real estate agent who was able to find a home that hadn’t been listed yet. We could negotiate one on one with the seller without having to compete against multiple offers.

The sellers had planned to invest $30,000 to $40,000 on home improvements before putting it on the market. We offered to buy the house as is, without the improvements. After going back and forth a few times, the sellers took our offer.  

What did you like about this house?

We knew within 5 seconds of walking into the house that this was the one. It was the perfect neighborhood. We were close to everything, within walking distance to plenty of bars and restaurants. The outdoor area is gorgeous. Beautiful trees surround our house, and the house is the perfect size for us.

Living Room
The living room of Tony and Barbara’s Sacramento home

Tony Matheson

So once your offer was accepted, what happened next?

The sellers weren’t prepared to move immediately. They needed time to prepare. So we rented the house back to the sellers for a month after closing. We closed on Valentine’s Day, but we didn’t move in until mid-March.

Little did we know what was about to happen.

Tony's home
Tony and Barbara love this window in their Sacramento home.

Tony Matheson

March is when the coronavirus really hit. What was it like moving during that time?

It was difficult and terrifying in the beginning. We moved in ourselves without hiring movers. Then, after we moved in, it was quite an adjustment. Simple things like calling an electrician or completing other minor home projects were enormously difficult.

Did you make any renovations to your home?

We put $10,000 to $12,000 into the house so far. The major issue after moving in was electricity—it needed to be completely reconfigured. For example, the second bedroom, which became my office, only had two plugs. Between my monitors for work, computers, Peloton, cellphones, and other devices, I needed 12 plugs. We also wanted to put in a tankless water heater for more space, and install a security system.  

Tony working on the house
During the COVID-19 shutdown, Tony and Barbara painted their new home.

Tony Matheson

How did quarantine affect these repairs?

It was horrible. We couldn’t get anyone to come out to do any work for at least three months. For the first month, no one was booking. Then, when we could finally get through, the businesses were overwhelmed with requests.

Tony celebrating new home
Tony and Barbara celebrate finally closing on their dream home in Sacramento.

Tony Matheson

What was it like when you finally settled in?

It was exhilarating, exciting, and weird. Exhilarating because we got the house we wanted. Exciting because we were beginning a new phase in our lives. And weird because we moved in at the beginning of the pandemic. We wanted to have a housewarming party, but of course, we couldn’t.

What is your advice for aspiring home buyers?

Even if your finances are completely buttoned up, be prepared that buying a house may be a difficult and even painful process.

first time home buyer
Tony and his daughter on game night in their new home

Tony Matheson

Emotionally it does get hard. As much as you try not to get attached to a house during the negotiation process, you can’t help it. And there is a competitive drive that kicks in when you are in a bidding war with others. It’s draining.

Still, in the end, knowing that you’ve overcome challenges along the way just makes you more appreciative of the reward at the end. We have a place to call home amidst all this craziness. It’s all worth it.

first time home buyer
Their parrot Kiwi also enjoys the new home’s view.

Tony Matheson

The post Why 2 Finance Experts Still Struggled To Buy This House appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com



Homie’s Utah Housing Market Update November 2020

Utah’s real estate market has been hot nearly the whole year. How did it perform in November? Homie has your update!

Data from Utah MLS from November 1, 2020 to November 30, 2020.

Monthly Sales

According to data from the Utah MLS, Utah had 4,335 sales from November 1, 2020 to November 30, 2020. Of those sales, 75.6% were single-family homes, while 24.4% were multi-family residences.

The sales this month are slightly lower than the 5,602 sales in October of this year, but it’s a +18% increase from November 2019, which is an even larger percentage increase than the year-over-year comparison we saw in October. This means the market is following the usual end-of-year slowdown, but the market is still quite strong compared to a year ago.

Data retrieved from Utah Real Estate .

Sale Price

Even though monthly sales saw the usual end-of-year slow-down, sale prices continued to rise. At $379K, Utah’s median sale price rose +2.4% from October of this year and 16.8% from November 2019.

Monthly Sale Price Graph

Data retrieved from Utah Real Estate .

List Price (Per Square Foot)

List prices in Utah rose during November along with sales prices. November’s median list price per square foot was $175.92, which is up from the previous months’ median of $170.25 per square foot.

November List Price Per Sq. Foot

Data retrieved from Utah Real Estate .

Days on Market (DOM)

Homes in Utah continue to sell quickly. The Average Cumulative Days on Market (DOM) during November was 9. This is a 72% decrease from November of last year. Prospective Utah homeowners will need to act quickly to get the homes they’re interested in.

Average Days on Market Graph

Data retrieved from Utah Real Estate .

Number of Homes Listed With Homie

A total of 182 homies listed their homes with Homie during the month of November. This number is up from 154 during the same time period last year.

182 homes listed with homie

Data retrieved from Utah Real Estate .

Turn to a Homie

Homie’s local real estate agents can help you navigate Utah’s hot housing market and find your ideal home. Work with a Homie to get an amazing deal whether you’re buying or selling. Click the links to get in touch with your dedicated agent.

The post Homie’s Utah Housing Market Update November 2020 appeared first on Homie Blog.

Source: homie.com



My House Failed Its First Real Estate Inspection—Here’s What I Did To Get Through Escrow

Mikolette/Getty Images

When I was buying my first house, everything seemed too good to be true—at least at the start of the process. I found a home within a couple of weeks, the price was fabulously low, it was in a cute lake community with a style I loved, and funding came through quickly and easily. I even received a first-time home buyer’s bonus for tax time. Plus, I didn’t need much of a down payment.

But it turned out too good to be true. My smooth path to homeownership suddenly became rocky when the inspection report came back with a big fat failure on it. I immediately panicked. What did it mean? Was I still able to buy the house? And if I did, was it going to fall apart?

After a few calls with my real estate agent (who, at that point, had become more of a home-buying therapist), I learned that a bad inspection isn’t that rare. In fact, my new home wasn’t in as bad of shape as I initially feared. We were able to make some repairs and, after a second inspection, the house was appraised and the sale was able to go through.

During the process, though, I learned a lot more than I ever expected about home inspections. Whether you’re a first-time or repeat home buyer, here’s my advice for getting the house you want after a shaky home inspection.

Houses don’t really pass or fail

Though my home inspection appeared to be a failure, homes aren’t actually graded on a pass/fail system.

“There is no such thing as a failed inspection,” said Karen Kostiw, an agent with Warburg Realty in New York. “The inspection just points out small and potentially larger issues that you may not be aware of.”

Sure, some houses can sail through the process and others may fare poorly, but it’s not a “You can never buy this” situation if there are problems with the property.

For me, my mortgage hinged on a solid inspection—so the initial results meant I wouldn’t get the loan unless things were fixed. That being said, if I had enough cash on hand or wanted to try a different mortgage lender, I could have continued with the purchase even with a negative inspection report.

So if the house you’re set on buying ends up having issues, don’t panic. You still have options.

Most inspection issues are small

It’s important to remember every home inspection report will come back with something, according to Kate Ziegler, a real estate agent with Arborview Realty in Boston. My inspection report had noted about 40 fixes. But a lot of times, the problems aren’t as bad as you think.

Keep in mind that the inspector’s job is to call out any trouble spot. Also, all issues noted in the report aren’t equal: Some problems flagged by an inspector can wait.

“The inspector will find defects—sometimes many defects—but that does not mean buyers are not purchasing a good home,” Kostiw says. “The small leak might mean a bolt needs to be tightened, or the dishwasher is not working because the waterline was switched off by accident. These are easy fixes. However, when buyers see a laundry list of items, it can seem as if the home is falling down. This is most often not the case.”

Red flags do exist

Ziegler and Kostiw agree that though most repairs are easy fixes, some items should give you pause if you see them on your report.

Structural problems, antique electrical systems, old windows, unexplained water damage, evidence of termites or wood rot, a bad roof, asbestos, mold, radon, and lead paint are all red flags that can show up during a home inspection. If fixing these problems is impossible or way beyond the means your budget, you may want to reconsider your purchase.

“Whether or not inspection items warrant backing out entirely depends quite a bit on any individual buyer’s experience and bandwidth, as well as personal risk tolerances and financial situation,” Ziegler says. “It’s true that houses don’t stay in good repair on their own. They require maintenance and care, just like your houseplants and your sourdough starter!”

Don’t try to fix things yourself

Unless a repair is something truly minor like caulking a bathroom tub or putting a cabinet door back on its hinges, don’t try to fix anything on your own. You could make things worse or even injure yourself. Hire licensed contractors that you’ve vetted to handle any problems. And try not to leave it all up to the seller—they’re not going to be living in the home. You will be.

“Motivations in this case are not aligned,” Ziegler says. “The seller wants to spend as little as possible to meet their contractual obligations, but [a] buyer should be more concerned with the quality of the repair.”

Work the costs into the sale

At first I worried I would have to pay to fix everything that was wrong with my house. But it’s important to know you can work the cost of repairs—and how long it should take to make them—into the sale.

Say you can’t afford to fix the busted water heater but the seller can. You can raise the offer price by that cost, or you can trade off: The seller fixes one thing, and you fix another. In my case, I only had to add a banister to one stairwell. The sellers were particularly motivated to unload the home so they handled everything else.

Hopefully by the end of this process, every issue will be fixed and you’ll be ready to purchase your home. And you’ll be able to move in with a clear head, knowing everything is really as good as it seems.

The post My House Failed Its First Real Estate Inspection—Here’s What I Did To Get Through Escrow appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com




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