Mortgage rates are now at 6.2%. We have felt a lot more buyers come back into the market since rates have fallen into that range. The number of new listings coming on the market right now is lower than it has ever been. However, the number of homes sitting on the market is 127% higher than last year. Buyers must be patient. Be prepared to search over a time span of multiple months. Longer searches have advantages. It helps buyers learn the market and builds their confidence so they know when the right one comes. We also find that it helps them understand how active the market is and gives them confidence in the stability and resiliency of prices. They get to see homes that they have walked through go under contract and sell at certain prices. Essentially they become market experts in the property type that they’re considering. When buyers sit on the sidelines and read headlines, they get analysis paralysis. But when they actively search and learn, they gain confidence to be decisive and know when they’ve found the right one.
Growing families that need a larger home want certainty when planning their move.
We interviewed our “upsizing” clients and here’s what we learned…
How much are mortgage closing costs? Here’s a good rule of thumb. ⬆️
Remember that your closing costs will change based on the interest rate you choose.
Also remember to shop lenders. Costs can vary wildly between different mortgage providers.
What can be done about the housing shortage in Northern Colorado? Allowing homeowners to legally rent out a carriage house or basement apartment would be a good start. It’s virtually impossible to find a home with zoning that allows this, many owners do it illegally which encourages unsafe living conditions, ie, lack of proper egress. The city and county are concerned about parking and changing the character of neighborhoods, but even if you have a 40 acre property outside of town, Larimer County’s most common rural zoning prohibits you from renting out a second unit unless you are housing agricultural workers. I think it’s time to change this and open up more affordable housing units for our community. What do you think?
I've been fielding this question a lot latley...
Should I buy now or wait to see if rates fall further? The advantage of buying now is negotiating power, I looked at a home with a client this weekend, we agreed that we were getting about a $30,000 discount because we have to pay today's 6.2% interest rate. So, we started to run a scenario. Let's assume rates will drop 1% over the next year. So if you bought this house next year, that $500k mortgage would be $5,000 cheaper per year but the market would likely heat up. So that $30k discount might be gone, but if you locked in the discount today and could refinance next year, even though you had to pay $5,000 more while you wait to refi, you'd come out ahead, assuming that discount disappears. You're also going to pay down your mortgage by a $5k over that year, but you're going to have to pay $5K to refinance. So those things off set. Of course, this is all speculation. You've got to be comfortable with your payment if rates don't come down. But one thing is for sure, high interest rates are not solving the housing shortage. Buyers were getting squeezed when rates were low because a bidding wars, they're getting squeezed now because of high rates. There’s no free lunch. At some point. You have to jump in with the mindset that you are holding this property for 10 years or ideally forever. And regardless if you buy now or next year, things are going to work out. Even if you didn't buy at the bottom and prices fall further, you have the mindset that you're not selling this home. Even if you have to leave town, you rent the house, you don't sell it.
The listing price you choose in combination with the marketing your home receives will have a dramatic impact on the time you spend on the market and the price you ultimately receive. Your realtor should be able to tell you how different prices will affect the amount of time you spend on the market. Also, your home should not only be listed on MLS and Zillow, but also on social media which can easily bring tens of thousands of additional views to your listing in your target market.
Despite 7% mortgage rates and more doomsday headlines than you can count, the market remains active enough to keep prices stable. In August our median price fell about 4%, then ticked back up slightly in September and basically remained unchanged in October.
More than just a home, this is a functional work of art. Rare opportunuity to own a masterpiece of modern architecture on a 1/2 acre in a prime West Fort Collins location. This is the personal residence of renowned designer/builder Rucker Hill. The thought and intention put into each element is staggering. Beautiful job of blurring the line between the indoors and outside. Windows are everywhere, skylights are beveled as far as possible to maximize light. Built ins made from white oak and birch in nearly every room provide the warmth of natural wood while maximizing space. If there ever was a perfect kitchen design this it. Huge island plus a large multi panel window opens to the outdoor living space in seconds. Tharp white oak cabinetry provides incredible organization & storage. Integrated Dacor appliances, espresso maker, dual dishwashers, commercial style cooktop & steam oven. Main floor guest suite also makes a perfect office space w/floating desk made from an oak tree from the owner’s family farm. Covered and uncovered outdoor living areas provide numerous places to gather. Hand welded steel frames the meticulous landscaping throughout the lot. Raised garden beds provide fresh produce just steps from the kitchen. A concrete pad with electrical is ready for a greenhouse or garden shed. Detached 600 sf studio can be additional office space or guest house. Studio has half bath, shop space with overhead door & a carport that doubles as outdoor living or covered parking. Studio is plumbed for a shower, allowing easy conversion to full in-law suite. Upstairs bedrooms and laundry surround this super fun loft space that doubles as a play area & media room. Pocket doors allow the loft to be closed off to minimize sound intrusion between upper & lower levels. Owner’s suite feels like a treehouse with giant windows overlooking the orchard and foothills. Stunning walk in shower bathed in natural light. Hand crafted built-ins organize the walk in closet. Quick access to the foothills and a huge number of natural areas and trail systems. If you love the mountains, and also love being downtown, there is no better location to own one of the most beautiful & architecturally significant homes ever to be built in Fort Collins
Something that I hear from virtually every client that's buying a home that we've ever worked with: At the beginning they say, “we're going to be really, really picky.” And then about 10 or 15 showings in, they start to feel this pressure because they've looked at a few homes and they haven't made a decision and they start to say, “we must be your worst clients ever!” It's very common. There's a lot of psychological stress and trauma that happens during the home buying process. Lot of people say, “oh, we’ll make the home buying process easy for you!” It's not easy. It's really hard. But the result at the end is worth it. A couple weeks ago I had a client that had just started their search, found a home that they liked and they said, “do you think we should make an offer?” And I said, “well I think this home works for you on a lot of levels but I also don't think you've seen very many homes yet.” They were coming from out of state and the home that they ended up buying was very different and I thought was a better fit for them and so you need to understand that’s what you're going to go through. Your real estate agent needs to create a safe space for you to feel like you can look at a lot of homes. And if you put a property under contract and the inspection is not right, and you just get the wrong feeling, there needs to be a safe place to say, “it's okay to walk away from this home.” You only want to do this once, you want to make it the right fit for you, so just understand, have that relationship with your realtor, set that expectation. A lot of our clients look at 30 plus homes. A lot of times, it's six months between the time that they first contact us and they close on their house.