Buying a Home Archives | Fort Collins Homes

6 Tips for Buyers in a Seller’s Market

Inventory is bleak, but there are still ways you can find the right home.

The seller’s market is only getting stronger in 2021 as home prices continue to rise and inventories hit record lows across the country. While mortgage rates have inched up slightly, they remain low. Here are ways you can navigate the current seller’s market as a buyer.

1. Stay on top of your game.
Be clear about exactly what features you want in a home. There is no time to waste seeing homes that don’t fit the bill. Look at new
listings asap, and jump on opportunities as quickly as you can to stay competitive. Responsiveness and communication are key.
2. Have realistic expectations.
A lowinventory market is not a great time to wait for the perfect home to come along. Adjust your expectations about nonnegotiables. Paint colors can be changed, and additions can even be made in time, but things like location and lot size are permanent. Be prepared to accommodate the seller’s needs in many cases.
3. Avoid seeing houses at the top of your budget.
Inventory is low and competition is high. Homes are selling for more than list price, and bidding wars are common. If you’re already at the top of your budget and being asked to go even higher, it’s probably not a good use of your time to see homes at the maximum price range for which you are qualified. Consider homes at the lower or middle tier of your budget and leave room to bid a little higher than asking if necessary.
4. Consider alternative neighborhoods.
You may increase your buying opportunities by exploring neighborhoods that you may have not previously considered. Be open to seeing homes that fit your preferences but are located in areas that may not be your first choice.
5. What can you do to sweeten the deal?
Homes are frequently selling within a few days of being listed for sale, and multiple offers are common. When sellers are receiving multiple competitive offers in a short amount of time, anything you can do to help your offer stand out will put your offer ahead. Accommodating the seller’s specific needs and requests, and limiting contingencies, will improve your chances of having your offer accepted.

Life as we know it has changed, and for how long no one can be certain.

My service to you includes staying up to date on the latest market trends, predictions, data, and strategies. Give me a call to discuss your housing goals and how we can accomplish them together!

Source: Realtor magazine

Common Springtime Plumbing Issues

Spring brings warm weather, sunshine and an abundance of flowers, but it can also bring unique plumbing problems. As the weather warms up, be on the lookout for these four springtime plumbing issues.

Leaky Plumbing
Cold winter temperatures can cause pipes to contract or freeze, causing tiny cracks. Warmer weather causes pipes and these tiny cracks to expand. Dripping pipes, standing water, a musty odor or a mysterious increase on your water bill all suggest plumbing leaks. Fix leaking pipes right away to prevent water damage and mold growth.

Low Water Pressure
Poor water pressure can be caused by plumbing leaks inside your home or from outside pipes that lead into the house. Because plumbing leaks can be hard to locate, contact a plumber to find them and make needed repairs.

Slow Draining Sinks and Backed Up Pipes
Soil soaked by spring rains can put pressure on old or weak sewer pipes, causing backed-up sinks and toilets, as well as sewer water flooding your yard. The warmer weather also spurs plant growth, and tree roots can grow through a small crack in a drain line, causing a blockage. Backed up pipes area serious problem that need immediate
attention from a qualified plumber.

Sump Pump Failure
Early in the spring, have your sump pump checked to make sure it’s working properly. That way, you can easily avoid a flooded basement. Spring is just around the corner and
now is the time to make sure your plumbing survived the winter and will give you consistent support through the warmer months to come!

http://blog.rismedia.com/2021/springtimeplumbing-issues/

Where Have All The Houses Gone?

Where Have All The Houses Gone? In today’s housing market, it seems harder than ever to find a home to buy. Before the health crisis hit a year ago, there was already a shortage of homes for sale.

When many homeowners delayed their plans to sell at the same time that more buyers decided to take advantage of record-low mortgage rates and purchase a home, housing inventory dropped even further.

Danielle Hale, Chief Economist at realtor.com, explains:
“With buyers active in the market and seller participation lagging, homes are selling quickly and the total number available for sale at any point in time continues to
drop lower. In January as a whole, the number of homes for sale dropped below 600,000.”

As you can see on the map, nationwide inventory is 42.6% lower than it was as of early last year:

There are fewer existing homes being listed right now, and many homes are simply selling faster!

It’s like last year’s spring frenzy to buy toilet paper as it was flying off the shelves faster than it could be stocked in the stores. That’s what’s happening in the housing market: homes are being listed for sale, but not at a rate that can keep up with heavy demand from competitive buyers.

The Good News for Homeowners
As vaccines become more widely available, homeowners are expected to start making their moves. While some sellers are expected to feel comfortable listing their home during the first half of 2021, others will wait until the vaccines are more widely distributed.

With more homeowners getting ready to sell this year, putting your house on the market sooner rather than later is the best way to make sure your listing shines brighter than the rest.

When you’re ready to sell your house, you’ll likely want it to sell as quickly as possible for the best price. If you’re looking for these selling conditions, you’ll find them in today’s market. When demand is high and inventory is low, sellers have the ability to create optimal terms and timelines for the sale, making now an exceptional time to move.

Bottom Line
Today’s housing market is a big win for sellers, but these conditions won’t last forever. If you’re in a position to sell your house now, contact me to discuss how to benefit from today’s high demand and low inventory.

Source: Keeping Current Matters

Buying And Selling In 2021:
What You Need To Know

The housing market frenzy from 2020 is expected to carry over into the new year. If you’re navigating the market in 2021, here are insights to help guide your journey.

Low interest rates can reduce a monthly payment by as much as $100-$200, motivating many renters to transition into homeownership.

The number of buyers entering the market coupled with low interest rates is contributing to record low inventories and high prices across the country.

As a buyer, you need to be emotionally prepared for navigating a competitive market. You will likely compete with multiple offers and may have to look for a longer time period to find the right home.

Homes in many markets are selling for well above the asking price. Buyers should be prepared to make offers on several homes before having an offer accepted. Cash buyers can be at a definite advantage.

If you are a Buyer who can pay a price above the anticipated appraisal value of the home, be sure your offer includes the terms of how an appraisal shortfall will be absorbed.

Strategies that can strengthen your offer include increasing the earnest money above the amount requested by the seller, a flexible timeline that meets the sellers’ needs, and a preapproval letter from a qualified local lender or documentation to support your cash offer.

It’s okay to have a wish list as long as you’re flexible.

After a year of social distancing, buyers are looking for space that allows family members to enjoy privacy, such as home offices and outdoor space. Some buyers are
looking for in-law suites to bring the family under one roof, either now or in the future. The trend for buyers to accommodate aging relatives has grown during the pandemic.

As a seller, you may not be able to control the square footage or floor plan of your home, or provide access to outdoor space, but there’s one thing that will help to make your
home stand out: renovations.

If buyers have a choice between an updated home and one that is not, renovated homes typically have greater appeal. In spite of reduced inventory, homes needing
work can linger on the market.

An experienced agent can help you get the house you want, the most money for a home you’re selling, and help you feel secure and confident throughout the complex process of real estate.

Give me a call to discuss your next home sale or purchase!

Source news.remax.com

Reverse Mortgages: Pros and Cons

A reverse mortgage allows homeowners age 62 and older to convert part of the equity in their home into cash without having to sell their home.

These loans aren’t a cure-all for retirement money problems, though. Consider these risks and benefits.

PRO: Supplemental retirement income
Some people are house-rich and cash-poor. Assuming borrowers can manage the expenses of owning a home, the reverse mortgage provides a way to liquefy a portion of the home equity to cover financial obligations. This could be helpful in the event of an unexpected job loss, health issues or limited savings. Reverse mortgages can also be a funding source to diversify investment portfolios, although loan fees add to the upfront costs.

PRO: Pay off an existing mortgage
With enough equity in the home, a reverse mortgage can be used to pay off the current mortgage, eliminating the monthly mortgage payment, and freeing up money for other
expenses.

PRO: Proceeds are tax-free
The IRS considers proceeds from a reverse mortgage to be a loan, not income, so you won’t pay taxes on it.

CON: Loan Costs
Obtaining a reverse mortgage includes loan fees, possibly mortgage insurance premiums, and interest charges, which are not tax-deductible.

CON: It’s not a good short-term option
Upfront costs for reverse mortgages are higher than other forms of borrowing, in part due to the federal mortgage insurance premiums. Alternative short-term financing options include credit cards, personal loans, and home equity loans.

CON: A default could result in losing the home
A default occurs when the borrower fails to meet the ongoing requirements of a loan, such as not paying property taxes or homeowners insurance, or failing to
certify that the home is their principal residence. This can lead to eviction and foreclosure, if unresolved.

CON: Heirs may not be able to keep the home
With a Home Equity Conversion Mortgage (HECM), which is insured by the US Federal Government, heirs have to pay either the full loan balance or 95% of the home’s appraised value, whichever is less. They can do this by paying cash, getting financing, selling the home or turning the home over to the lender to satisfy the debt.

Is a reverse mortgage worth it?
A reverse mortgage could be a good solution if:
• There is a long-term need for additional income, and benefits such as Medicare and Social Security have already been utilized.
• The need to use the equity in the home for income now outweighs the risk that family heirs may not be able to keep the home in the future.

Give one our agents a call to discuss other options such as moving to a less-expensive home, or to locate a reverse mortgage lender!

Source: NerdWallet