Buyers & SellersColorado HousingMarket TrendsWindermere Real Estate July 28, 2023

Higher Better

The higher-end market in Northern Colorado, in terms of number of closings, is faring better than the overall market.

When we look at the number of homes selling today and the price point of those homes, properties priced above $1,000,000 are performing better than the market as a whole.

The number of closings occurring now compared to this same time last year is down 30% overall.  But, the high-end market is only down 19%.

When we look further back in time, the data gets even more interesting.

Compared to 2021, Closings today are down 55% overall, but high-end sales are up 26%.

And compared to 2020, there are 59% fewer closings and 160% more high-end sales.

We believe there are two reasons for this dynamic.

First, because of price increases over the last few years, the stock of inventory today includes more $1,000,000- plus homes than the past.

Second, the high-end buyer is less affected by higher interest rates than the general population.  And, certainly less affected than first-time buyers.

 

BlogColorado HousingSellersWindermere Real Estate July 26, 2023

10 Important People in the Home Selling Process

Good news! Selling a home is not a solo endeavor. Your goal in selling your home is to get the best price in a timeframe that meets your needs. To do that, you’ll enlist a team of professionals. So, who are the parties involved in a real estate transaction? Let’s review ten important people in the home selling process so you can be prepared once you’re ready to sell your home. And to understand the process from the buyer’s side, check out 10 Important People in the Home Buying Process.

10 Important People in the Home Selling Process

  1. Real Estate Agent 

We’re starting this list with your real estate agent for a reason. The agent representing you is known as a listing agent, and they will be your personal MVP of the selling process. Not only will they conduct a Comparative Market Analysis (CMA) to set a competitive price for your home, but they also know how to market it effectively, they’ll negotiate on your behalf, and they’ll guide you through the process of finalizing the transaction. When searching for an agent, find someone whose professionalism you respect, someone who knows the local market, and most importantly, someone who cares about your goals.

  1. Remodeling Contractors

Having your home in tip-top shape when you sell will help you boost its value and get the best price. If you’re thinking about selling, it’s a great time to complete remodeling projects that will help your home stand out amongst the competition. Yes, you have a significant pay day coming when you sell your home, but you want to focus your attention on high ROI remodeling projects that will get you the most bang for your buck. Talk to your agent about which home renovations are drawing buyer interest and strategize accordingly.

  1. Home Inspector

Another important aspect of preparing your home for sale is being aware of what repairs it needs, which is why some sellers conduct a pre-listing inspection. Getting the information in this report before you hit the market will help you schedule repairs quickly and shows buyers a level of transparency that informs their buying process. Even if you don’t get a pre-listing inspection, a home inspector will enter the fold eventually. But hiring your own professional early on will give you a better understanding of your property’s condition.

  1. Home Staging & Real Estate Photographer

We’re combining a couple professionals in real estate marketing here, but both are critical to successfully selling your home. Home staging can boost home value and helps buyers more easily imagine themselves living somewhere new. And in today’s world, it’s more important than ever to represent your home well online. High quality real estate photos maximize your home’s appeal and differentiate it from other listings. Both a professional home stager and real estate photographer will help you attract buyer interest. And for the do-it-yourself crowd, consider our 7 Tips for Staging Your Home Yourself.

  1. The Right Buyer

We’d be remiss if we didn’t mention the party on the other side of the transaction—the buyer! To find the right offer, it’s important that you communicate with your agent regarding your goals. There are multiple layers to a buyer’s offer beyond the price, so the better your agent understands what meets your needs, the quicker they can identify it and the better they can negotiate on your behalf. For more, read How to Negotiate as a Seller.

  1. Mortgage Broker and Mortgage Lender

Whereas a buyer’s agent helps them find and make an offer on your home, their mortgage broker assists them in securing substantial financing to actually purchase it. Once the buyer gets approved for a loan, their mortgage lender takes over the home financing process. Buyers may choose to work directly with a mortgage lender.

  1. Home Appraiser

During the process of selling your home, the buyer’s lender will hire a professional appraiser to evaluate your home’s location, size, and condition along with recent sales of comparable listings to determine its appraised value. This is to ensure that the buyer isn’t overpaying for the property and that you’re not underselling it. Knowing the difference between appraised value and market value will help you understand how a home’s eventual sales price comes to be.

  1. Title Company

A home sale isn’t official until ownership has been transferred from the seller to the buyer. To do this, you’ll meet with a title officer during the closing process to sign paperwork and transfer the deed. The title company will conduct a search of the property’s records to make sure it’s in good legal standing and is fit to sell.

  1. Escrow Company

So, how does the buyer’s money actually make its way to you? That’s where escrow comes in. Escrow in real estate is a third-party company responsible for holding the funds while the deal is in motion and disbursing them once it goes through. Though you may not meet the person responsible for routing the money for your home sale, they’re a key part of the closing process.

  1. Moving Company

Congratulations, you’ve sold your home! Whether it’s arranging utility service or updating your banking information, there are a thousand little things to do during this exciting time. Keep track of your moving timeline with our comprehensive Moving Checklist.

Thinking about selling your home? Start by finding the right agent, one of the most important people in the home selling process. Connect with a local Windermere agent to get answers to all your questions from list to closing.

­­­­­­Featured Image Source: Getty Images – Image Credit: SolStock

Colorado HousingHousing TrendsSellers July 24, 2023

The Listing Solstice

Research shows us that listings are taking far longer to sell than one year ago.

Specifically, days on market has increased by the following amounts in our market versus exactly one year ago:

 

Larimer County: 210%

Weld County: 100%

Metro Denver: 122%

 

Even though days on market is up significantly over one year ago, properties are selling faster on average than what is considered ‘normal.’

Over the last 10 years, average days on market has been between 50 and 70 days. So, while properties are taking longer to sell versus the market of one year ago, they are still selling much faster than normal.

 

Buyers & SellersFun FactsHome PricingMarket News July 21, 2023

Who Would Have Guessed?

Pretend it is 2013. The real estate market is clearly recovering from the Great Recession. The Broncos are having a great year and will eventually make it to the Super Bowl.

Now, imagine someone makes a prediction that 10 years in the future mortgage interest rates would double over the course of 12 months.

If you were to guess what sort of impact on house prices that would cause, what would you say?

It would be reasonable to guess that prices would decline if mortgage rates doubled.

Here’s what really happened. Prices kept going up.

Some thought prices would crash. Many thought prices would go down.

They keep going up. Not as fast as they were, but they are still up.

Compared to one year ago, prices are up the following amounts:

Larimer County = 2.6%

Weld County = 2.2%

Metro Denver = 1.1%

Why? Supply and demand.

Supply is low and there is still demand in the market.

 

BuyersColorado HousingMarket News July 19, 2023

New Opportunity

One of the many opportunities for buyers today is new construction.

In Northern Colorado, just under 25% of all available homes for sale are brand new homes.

That percentage is roughly 50% more than normal.

Buyers who are looking for a greater selection can consider new homes.

New homes offer obvious advantages like trendy finishes and new appliances.

They also often offer attractive incentives like lower mortgage rates.

So, in a time when it feels like there is less to choose from, new homes are a great option.

 

Market NewsSellersWindermere Real Estate June 18, 2023

High Active

Buyers & SellersFort Collins Real EstateMarket News June 16, 2023

A New Change

There is a new type of change to be prepared for.

One interesting way to track the market is to measure the year-over-year difference in inventory.

Quite simply, this looks at how many homes are available today versus the same time one year ago.

For the past several months in a row, the difference as measured by percentage change, has been significant.

That is because inventory levels between May of 2020 and May of 2022 were rock-bottom low.

For example, inventory in March of this year was up over 120% compared to March 2022.

When measured against historical numbers, inventory in the first half of this year is incredibly low.  But, when measured against the first half of 2022, inventory is significantly higher.

Well, that is about to change because inventory increased in June and July of 2022.

So, now when we look at inventory levels versus a year ago, the percentage change will be more modest.

For example, Northern Colorado inventory today is up only 8% compared to one year ago.

 

Buyers & SellersColorado HousingMarket TrendsWindermere Real Estate April 2, 2023

Picking up Steam

In a market that seems abnormal to a lot of people we notice a very normal trend right now.  As we head into Spring, activity is picking up.

This happens pretty much every Spring and it is happening again.

When we measure the number of properties under contract, which are set to close in the next 30 to 45 days, we see that it is significantly higher than just one month ago.

Bottom line, many more properties went under contract in March than in February.  Specifically:

Larimer County is up 27% month over month.

Weld County is up 16%.

Metro Denver is up 18%.

This increase is noteworthy especially considering interest rates dropped only slightly during the month.

We expect this trend of increased sales activity to continue, as it normally does, through the Spring and into the early Summer.

 

Buyers & SellersFun FactsHome PricingMarket TrendsWindermere Real Estate March 30, 2023

No Middle Class

“The middle class is going away” is an often-used adage when talking about society. It is also a good way to describe today’s real estate market.  When it comes to properties for sale, the middle class has gone away.There is a class of listings which are priced to the market, in great condition, with world-class marketing.Then, there are those that are overpriced, not in good condition, with sub-par marketing.Properties in the first class are selling quickly, sometimes with multiple offers and sometimes even over list price.Properties in the second class are sitting on the market.Sellers, who want a successful result, must be in the first class.Buyers, who want a bargain or who want to ‘wheel and deal,’ can typically only find those opportunities in the second class.Here’s the thing.  Rising interest rates have caused buyers to be more picky.  Yet, low inventory has caused competition for the best properties.Both sellers and buyers need to know there is no middle class when it comes to listings.

Buyers & SellersFort Collins Real EstateHome lifeHousing Trends March 20, 2023

Small is the New Big

The average size of new homes is dropping.  This is after a two-year period that saw size increase significantly.  This is according to the National Association of Home Builders’ Eye on Housing.The COVID-19 pandemic changed how much time people spent in their homes and also how they used their homes. Homeowners discovered a need for more residential space as work-from-home became more prevalent.  This caused a demand for larger space.Now, as housing affordability has become more important, that trend is reversing.  Median single-family square floor area fell to 2,203 square feet during the fourth quarter of 2022, and is now the lowest it has been since 2011.