What’s Your Home Actually Worth?

Posted on April 13, 2021 by johanna wells

It’s easy to know how much money you have in your savings account or the real-time value of your stock investments. But, determining what your home is actually worth is trickier.

As a seller, knowing what’s your home actually worth, helps you price it correctly when you put it up for sale. If you price it too high, it may sit on the market. But price it too low and you may be losing out on a good chunk of money (nobody wants that!). For buyers, it’s important to know a home’s worth before you make an offer. You want your offer to be competitive, but you don’t want to overpay for the property.

As a current homeowner you might just be curious about the value of your home. Keeping track of what’s your home is actually worth year over year helps you understand the trends in your market. So when you are ready to sell, you can take advantage of a good window of opportunity.

A trained real estate agent, who understands your particular neighborhood—can determine the true market value of your property … and at no cost to you!

THE THREE TYPES OF HOME VALUES

When buying or selling a home, you’ll frequently hear the words appraised value, assessed value, and true market value. It’s important to know the difference between each one so you can make better, informed decisions.

Appraised Value

A professional appraiser is in charge of determining the appraised value of a home. Lenders require appraisals when a buyer finances a property. And while the lender is the one requiring this information, the appraiser does not work for the lender.¹ An appraiser is a licensed professional who is impartial to the buyer, seller, or lender—no matter who pays.

An appraised value assures the lender that the buyer is not overpaying for the property. For example, imagine a seller lists a home for $400,000. They reach a deal with the buyer to sell the home for $375,000. Should the appraised value come in at $325,000, the lender will not lend higher than the appraised value of $325,000.²

Appraisers will compare similar homes in your neighborhood. Evaluating, location, square footage, appliances, upgrades, improvements, and the interior and exterior of the home.

Assessed Value

Your local municipal property assessor determines the assessed value of your home. This value matters when your county calculates property taxes each year. The lower your assessed value, the less property tax you’ll pay.³

An assessor evaluates neighborhood homes sold, similar to the size of your home, age, overall condition, and improvements made. Assessors have limited information as they don’t have full access to your home.

Annual assessments determine how much property tax you owe. Many counties use a multiplier (typically between 60%-80%) to calculate the final assessed value. When the assessor determines the value of the home is $300,000, and the county uses a 70% multiplier, the assessed value of the home would be $210,000 for tax purposes.⁴

If your assessed value isn’t as high as you envisioned, don’t sweat it. Many homeowners appeal their assessment in favor of a lower valuation so that they can save money on property taxes. Let us know if you want to appeal your property tax assessment. We offer complimentary assistance and would be happy to help you build your case.

True Market Value

Real Estate agents establish true market value. It basically refers to the value that a buyer is willing to pay for the property. A expert real estate agent determines true market value because they have hands-on experience buying and selling properties. They understand what buyers want in your market and know what they’ll pay for a desirable house, townhouse, or condo.

For sellers knowing the true market value importance helps you choose how much to list your property for. It also helps you know any improvements needed to your home before putting it on the market. Your agent can help determine which updates and upgrades will have the biggest impact on your true market value.

WHAT’S THE DEAL WITH ONLINE CALCULATORS?

You may be looking for answers from Zillow, Redfin, and Trulia to learn what your home is actually worth? When you use an online calculator to determine your home’s value on these sites, it is just an estimate. These sites use their own algorithms for coming up with their estimates. Zillow comes up with “Zestimates” by calculating “public and user submitted data, calculating special features, location, and market conditions.” ⁵

Online estimates can be a great starting point to a conversation with your real estate agent about your home’s worth. Zillow recommends that you use a real estate agent for coming up with the actual market value of your home. The site that after you get a “Zestimate,” you should get “a comparative market analysis from a real estate agent.”

It’s essential to have an agent involved in the process because they understand the market better than a computer ever could. They show properties in your city daily, and they know the particular preferences of buyers and sellers in the area. Young professionals, large families, empty nesters, and other groups are all looking for different things in a home. A local agent has buyers, they understand what every buyer segment in your market is specifically looking for.

HOW AN AGENT FINDS YOUR HOME’S TRUE MARKET VALUE

So, how does an actual real estate agent determine true market value to determine what your home is actually worth? They’ll start by doing a comparative market analysis (CMA). This means they’ll compare your home’s features to similar properties in your area. For the CMA, the agent looks at the below factors to influence their assessment of your home’s worth:⁶

Neighborhood sales – Your agent factor recently sold homes prices and what they have in common with your house.
The exterior – How does the house look when walking or driving?
The interior – This is everything inside the walls of the house. Square footage, number of bedrooms and bathrooms, appliances, and more all influence the overall market value.
Age of the home – A newer or older home affects the list price as part of their assessment.
Style of the home – The style of your home is important because buyers in different markets have different tastes. If buyers prefer ranch-style homes and you have one, then your home may sell for a premium (aka more money!).
Market trends – An experienced agent knows your area’s trends and what buyers are willing to pay for a similar home.
Location, location, location – This one’s probably the most obvious. Your agent will think about how popular the area is, how safe it is, and what schools are like.

A computer algorithm simply can’t take all of these factors into account when calculating the value of your home. Nothing beats having a real estate agent or professional appraiser when it comes to determining a home’s true market value.

YOUR AGENT IS THERE EVERY STEP OF THE WAY

Determining a home’s true market value is a real estate agent’s forte. For seller’s, your agent will help determine your home’s market value so you can list it at the right price.

For buyers, your agent will help you determine the value for a fair offer and you don’t pay too much. They will set you up with an email search from the Multiple Listing Service of homes that meet your criteria. It will show what homes are available within your criteria and their pricing.

Get a Complimentary Report With Your Home’s True Market Value

Curious about your home’s true market value? Call us or fill out the form below to request a free, no-obligation Comparative Market Analysis to find out exactly how much your home is worth!

Sources:

Chicago Tribune –https://www.chicagotribune.com/suburbs/chi-ugc-article-what-is-the-difference-between-market-value-a-2013-09-30-story.html

SFGATE – https://homeguides.sfgate.com/market-value-vs-appraised-value-1206.html

ValuePenguin – https://www.valuepenguin.com/mortgages/what-is-the-assessed-value-of-a-house

Movoto – https://www.movoto.com/blog/homeownership/assessed-value-vs-market-value/

Zillow – https://www.zillow.com/how-much-is-my-home-worth/

Realtor.com – https://www.realtor.com/advice/sell/assessed-value-vs-market-value-difference/

Can I Buy or Sell A Home Without a Real Estate Agent?

Posted on April 7, 2021 by johanna wells

Today’s real estate market is one of the fastest-moving in recent history. We witness record-low inventory, multiple offers, and bidding wars in many high-demand neighborhoods. This has led some sellers to ask, can I buy or sell a home without an agent without investing money, if it seems you can simply put a for-sale sign in the yard?

Some buyers believe they would be better off buying a home without an agent. They assume they will get a discount and assume the seller doesn’t pay the buyer agent commission.

We all want to save money. For a large financial asset, it may not always be in your best interest to buy without professional representation. What benefits outweigh the risks (and considerable time and effort) of going alone to get to the closing table confidently.

SELLING YOUR HOME WITHOUT AN AGENT

For Sale By Owner (FSBO)

A “For Sale by Owner” price their home, handles the transaction, shows, and negotiates directly with buyers and their agents. The National Association of Realtors shows approximately 8% of homes sell FSBO.1

One of the biggest problems FSBOs face is the appropriate pricing of the home. Without accurate data on comparable homes, you run the risk of overpriced (which means longer market time) or underpriced homes (leaving money on the table).²

In 2020 the median sales price for an FSBO was 10% less than sold with an agent.¹ 2018 FSBO homes sold for 24% less than agent represented properties.³ By yourself, pricing and marketing a home leads to potentially greater loss than the costs to pay an agent.

FSBO Responsibilities

Without a real estate expert, it’s up to you to get people in the door. You will gather information for the online listing and put together marketing that today’s buyers expect. You will have to a professional photographer. Responsibilities include writing listing copy, designing flyers, and mailers, or hiring someone to do it for you.

Virtual showings and developing a COVID safety protocol must be offered. As well, you’ll schedule showings for each potential buyer. You’ll be on your own to evaluate offers and determine their financial viability. Knowledge of all legal contracts, contingencies, and ability to discuss terms, including those regarding the home inspection and closing process.

After paying the buyer agent commission, be sure to weigh your potential savings against the significant risks and effort.

Choosing a listing agent saves time, effort and minimizes your risk and liability. Increased profits through a more effective marketing and negotiation strategy make up for the cost of your agent’s commission.

iBuyer

IBuyer offers sellers direct purchases from a real estate investment company.⁴ iBuyer companies appreciate their convenience and speed, with a reliable, streamlined process that might be attractive to some sellers.

iBuyer wants homes in good condition, desirable neighborhoods, simple flips and fall within the company’s algorithm.

If focused on speed and convenience, an iBuyer may offer an attractive alternative to a traditional real estate sale. iBuyers evaluate a property quickly and make an upfront offer without requesting repairs or other accommodations.

Focused on speed and convenience, an iBuyer could offer an attractive alternative to a traditional real estate sale. iBuyers quickly evaluate a property and make an offer without requiring repairs or other accommodations.

The convenience comes with lower sales prices and fees that can be up to or exceed an agent’s commission. A MarketWatch study found sellers received 11% less, with lower prices and fees considered.⁵ Studies show 15% more fees and costs are paid than with a real estate commission.⁶

The alternative to using an agent with iBuyer gives the advantage, the comfort of a quick transaction, and the security of a professional negotiating on your behalf.

BUYING YOUR HOME WITHOUT AN AGENT

Statistics show 88% of home buyers use a realtor in a home search.¹ A buyer’s agent is with you every step of the way through the home buying process. Buyer’s agents find the perfect home, submit winning offers, navigate the inspection and closing processes with invaluable expertise and guidance. Buyer agents are no cost to buyers!!

Putting together a winning offer against multiple offers is a challenge. And the buying process can be emotional. A trusted agent can help you avoid overpaying for a property or glossing over “red flags” in your inspection. Buyer agents offer a streamlined, professional process that clients may be more likely to recommend.

Agents will write competitive offers, submit, negotiate, review, prepare documents, communicate with the seller’s agent, lender, inspector, appraiser, title company. They schedule inspections and negotiate repairs. Without an agent, you’re alone.

Sellers pay a buyer’s agent and cost you nothing. You receive fiduciary guidance for an important financial transaction. Alone you play fast and loose with an important financial decision.

IS A REAL ESTATE AGENT RIGHT FOR YOU?

Consider your options if buying or selling a home without a real estate agent. Are you comfortable in real estate transactions, legal contracts, negotiating in high-stakes situations, with plenty of extra time? You may find that an iBuyer or FSBO sale works for you.

Expert advice from a real estate agent in managing the process gives you security and peace of mind.

The diverse services and expert negotiation skills of a real estate agent financially benefit buyers and sellers. The average seller using a real estate agent receives more money than those who go FSBO or iBuyer. ^3,5 buyers pay nothing for expert representation to avoid costly mistakes from contract to closing.

NAR’s profile of most buyers (91%) and sellers (89%) is pleased with the representation of their real estate professional and would recommend them to others.¹ In terms of time, money and expertise, most buyers and sellers find the assistance of a real estate agent invaluable.

QUESTIONS ABOUT BUYING OR SELLING? WE HAVE ANSWERS

The best way to find out if you can buy or sell a home without a real estate agent or broker is to speak to one. We are here to help you and give you the insights you need to make better-informed decisions. Let’s talk about the value-added services we offer to buy or sell in today’s competitive real estate landscape.

Sources:

National Association of REALTORS –
https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers
Washington Post –
https://www.washingtonpost.com/business/2020/12/09/factors-consider-when-determining-whether-use-an-agent-buy-or-sell-home/
National Association of REALTORS –
https://www.nar.realtor/blogs/economists-outlook/selling-your-home-solo-to-save-money-you-ll-actually-make-less-than-you-think
Seattle Times –
https://www.seattletimes.com/business/real-estate/redfin-is-first-major-ibuyer-to-sell-in-seattle
MarketWatch –
https://www.marketwatch.com/story/selling-your-home-to-an-ibuyer-could-cost-you-thousands-heres-why-2019-06-11
Forbes –
https://www.forbes.com/sites/nataliakarayaneva/2020/03/19/billion-dollar-real-estate-businesses-ibuyer-suspended/?sh=c7f59f921747

Call In To Win

Posted on March 8, 2021 by johanna wells

Each month on the 10th of the month you can Call In To Win. Denver Metro Only. This month we celebrate entertainment with family and friends.

G I V E A W A Y! Our March giveaway is a Vizio Theater Soundbar System. Denver Metro only. Features:

Low-Profile Design and Brilliant Clarity with 6 Full-range Speakers
Powerful 5″ Wireless Subwoofer and Bluetooth Music Streaming
Complete Immersion with Discreet Volume Adjustable Surround Speakers
Optimized for 4K TVs with Dolby Audio 5.1 and HDMI (Cable Included)
Control with TV Remote using HDMI, Audio Cables Included for Easy Setup

Call 303-217-3821 this Wednesday, March 10th between 9am-5pm for your FREE chance to win!

Is the Real Estate Market Going to Crash?

Posted on March 1, 2021 by johanna wells

While many areas of the economy have contracted, the housing market has stayed remarkably strong. Can the good news last?

COVID-related shutdowns began in March, real estate brokers and clients scrambled to respond to the change. Record-low interest rates led lenders to stop new underwriting, and homeowners debated whether to put their homes on the market. At the end of the year, average home prices were up 13.4% from the previous year, and with 13 fewer days on market .¹

Now, as the spring market approaches, you may wonder whether the reliable times can continue. If you are a homeowner, should you take advantage of this opportunity? If you are a buyer, should you jump in and risk paying too much? Below, we answer some of your pressing questions.

Todays market vs. the 2008 meltdown?

Pandemic fears of an economic recession and a subsequent mortgage meltdown were at the forefront of homeowners. For buyers and sellers the two seemed to go hand in hand, as they did in the 2008 economic crisis.

The conditions of 2008 recession differ from the current downturn, with the housing market the source of good news.² Historical patterns of housing prices remain stable. Homeowners are staying put, and investors are investing money in bricks and mortars to avoid an uncertain the stock market.

Lessons of 2008 show banks better funded, homeowners holding more equity, and economic activity focused on financial factors outside the housing market. As many industries quickly pivoted to work from home, early fears of widespread job-loss foreclosures have failed to occur. The Federal stimulus and the Paycheck Protection Program helped offset some of the worst early effects of the shutdown.

Are we facing a real estate bubble?

A real estate bubble occurs with rapidly rising housing prices and investor spectulation. When the values drop rapidly the real estate bubble pops. This leads to lower equity, or in some cases negative equity conditions.

Low-interest rates and lack of homes are attributed to current rising home prices. The principle of supply and demand works as it should. Experts predict a strong seller’s market for 2021, with increases in new construction.³ Allowing supply to gradually rise to meet demand, slow down rising home values, and offer a gentle correction.

Effects of low interest rates

Freddie Mac states, projected rates to continue at current low levels throughout 2021.⁴ Contributing to home affordability in markets considered overpriced. These low interest rates should keep the market lively and moving forward for the foreseeable future.

Effects of low inventory

Low inventory with high demand attribute to higher average home prices.⁵ Home prices will gradually ease, vaccinations rollout, buyer demand drives homeowners with delayed sales, and new home construction increases to meet demand.⁶

Aren’t some markets and sectors appearing soft?

Stories of young professionals and families fleeing attached dwellings, high-priced urban areas to move to wide-open spaces of suburban and rural markets. Along with reinforced work-from-home policies that became permanent at some of the country’s biggest companies.

The death of the city and the end of the condo market rumors of these two residential sectors were greatly exaggerated.

With vaccine rollouts, renters returned to major urban areas, attracted by the rise in available inventory and discounted rental rates.⁷ Laser-focused buyers looking for a single-family home now take a second look at condos.⁸ Nationwide condo prices lag behind those of detached homes. Observed are significant price increases and days fewer days on the market year over year.

The 2020 migration has spread the economic wealth to suburban and rural enclaves that normally don’t benefit from increases in home values or an influx of new investment. As many of these new residents set up housekeeping in their rural retreats, they’ll revitalize the economies of their adopted communities for years to come.

How has COVID affected the “seasonal” real estate market?

The real estate market is a seasonal phenomenon. The widespread shutdown in March 2020, which came at the beginning of the market’s growth cycle in many areas, has led to a protracted, seemingly endless “hot spring market.”

Fannie Mae’s chief economist Douglas Duncan predicts slower growth from 2020 historic numbers, the outlook is positive as we embark on the 2021 spring selling cycle. Duncan expects an additional boost in the second half of 2021, as buyers return to business as usual and expect to put some of their pandemic savings to work for a down payment. We’re looking at a longer than usual, hot real estate market.

How will a Biden administration affect the real estate market?

A projected housing policy promises to boost the real estate market in many cases.10 Real estate investors bemoan proposed changes to 1031 Exchanges, the Biden plan for a $15,000 first-time homebuyer tax credit aims to increase affordability and bring eager new home buyers into the market. Biden’s policy identifies low inventory as the driving factor of unsustainable home values and geared towards affordability through investments in construction and refurbishment.

According to most indicators, the real estate news will be overwhelmingly positive throughout 2021, and possibly beyond. Pent-up demand, consumer-oriented policies, and a sustained low-interest environment and rising inventory, should help homeowners maintain their increased equity without unbalancing the market. The increase of long-term work from home policies promises to boost many markets now and in the years to come.

HAVE QUESTIONS? WE HAVE ANSWERS

Economic indicators and trends are national, real estate is local. We are here to answer your questions and help you understand what is happening in your neighborhood. Reach out to learn how these larger movements affect our local market and the value of your home.

Sources:

Realtor.com –
https://www.realtor.com/research/december-2020-data/
New York Magazine –
https://nymag.com/intelligencer/2020/06/why-this-economic-crisis-wont-be-as-bad-as-2008.html
Washington Post –
https://www.washingtonpost.com/business/2021/01/11/2021-housing-market-predictions/
Freddie Mac –
http://www.freddiemac.com/research/forecast/20210114_quarterly_economic_forecast.page?
Wall Street Journal –
https://www.wsj.com/articles/housing-market-stays-tight-as-homeowners-stay-put-11611226802?mod=re_lead_pos1
Marketwatch –
https://www.marketwatch.com/story/new-home-construction-activity-soars-to-highest-level-in-over-a-decade-as-builders-rush-to-produce-single-family-homes-2021-01-21
Forbes –
https://www.forbes.com/sites/noahkirsch/2021/01/14/signs-of-a-rebound-new-york-city-rent-prices-are-climbing-back
Washington Post –https://www.washingtonpost.com/business/2021/01/07/condo-sales-rebound-amid-dwindling-inventory-houses/
Mortgage Professional America –https://www.mpamag.com/news/fannie-mae-chief-economists-forecast-for-us-economy-housing-market-in-2021-244045.aspx
Inman –
https://www.inman.com/2020/11/09/what-a-joe-biden-presidency-means-for-real-estate-and-housing/

$25B in Rental Assistance Is on the Way: Who Will Qualify?

Posted on February 5, 2021 by johanna wells

Credits Realtor Magazine:

As part of last month’s COVID-19 stimulus package, $25 billion in federal assistance funds are expected to be disbursed to states today, Jan. 26.

There could be a rush for funds with an estimated 14 million Americans are behind on their rent. Further, rental arrears in the country may be near $70 billion, CNBC reports.

To qualify for rental assistance, at least one member of a household must have experienced income loss, significant expenses due to the pandemic, or are eligible for unemployment benefits. They will need to show they are or could be at risk of homelessness. The person’s current income level also can’t be higher than 80% of the area’s median income. Several states are prioritizing applicants who are at 50% or lower on the median income level and who’ve been unemployed for 90 days or more, CNBC reports.

Renters could be eligible for up to a total of 12 months of back rent and utility bills. They may also be eligible to get payments to cover future rental payments. The funds are paid directly to the landlord or utility company.

Landlords may also be able to apply on behalf of their tenants, as long as they get approval from the tenant.

Some states are already offering existing rental assistance programs under monies previously provided through the CARES Act. They may add the new funds to their existing rental assistance programs or start a new program.

“Where or how will apply will vary city by city,” Emily Benfer, a visiting law professor at Wake Forest University, told CNBC. “Renters should contact local housing groups, their representatives, or the local 211/311 lines to identify programs and learn how to apply.”

5 Inspiring Home Design and Remodeling Trends for 2021

Posted on February 4, 2021 by johanna wells

5 Inspiring Home Design and Remodeling Trends for 2021

We’ve all spent a lot more time at home over the past year. Our homes have become our office, our classroom, our gym—and most importantly, our haven. It’s no surprise to discover that 5 Inspiring Home Design and Remodeling Trends for 2021 revolve around soothing color palettes, cozy character atmosphere, and quiet retreats.

We advise our clients to take modern design preferences, over-personalized or unpopular renovations can lower your property’s value. And selecting out-of-style fixtures and finishes could cause your home to feel dated quickly.

To help inspire your design projects this year, we’ve rounded up five of the hottest trends. Keep in mind, not all of these will work well in every house. If you plan to buy, list, or renovate your property, give us a call. We can help you realize your vision and maximize the impact of your investment.

1. Uplifting Color Design

Colors are gravitating toward warm and happy shades that convey a sense of coziness, comfort, and wellbeing. This year’s palettes draw from earthy hues, warm neutrals, and soothing blues and greens.¹

White and gray colors are safe options. However, neutrals are increasing in popularity for walls, cabinets, and furnishings in 2021. For a fresh and sophisticated look, try one of these 2021 paint colors of the year:

Aegean Teal (coastal blue) by Benjamin Moore
Urbane Bronze (brownish-gray) by Sherwin-Williams
Soft Candlelight (muted yellow) by Valspar

On the opposite end of the spectrum, indigo, ruby, sapphire and plum are showing up on everything from fireplace mantels and floating shelves to fabrics and home accessories. These classic, rich hues can help bring warmth, depth, and a touch of luxury to your living space.

To incorporate these colors, designers recommend using the “60-30-10 Rule.” Choose a dominant color to cover 60% of your room. First, walls, rugs, and sofa might be varying shades of beige or gray. Layer a secondary color for 30% of the room. This might include draperies and accent furniture. Third an accent color for 10% of your room, showcased with artwork and accessories.²

Photo by Tom Stringer Design Partners – Browse dining room ideas

2. Curated Design Collections

After a decade of minimalism, there’s been a shift towards highly-decorative and personalized interiors that incorporate more color, texture, and character. Clearly defined styles of mid-century modern, industrial, and a curated style replace modern farm homes with furniture, fixtures, and accessories that seem to have been collected over time.³

This trend has extended to the kitchen, where atmosphere has become as important as functionality. The ubiquitous all-white kitchen is fading in popularity as homeowners opt for unique touches that help individualize their space. If you’re planning a kitchen remodel, consider mixing in other neutrals—like gray, black, and light wood—for a more custom, pieced-together look. Replace Moroccan square tiles for a modern alternative with old-world flair.⁴

Photo by M Prevost Design – Search kitchen design ideas

3. Reimagined Remodeling and Design

The pandemic forced many of us to rethink our home design. From multipurpose rooms to converted closets to backyard cottages, we’ve had to find creative ways to manage virtual meetings and school. And designers expect these changes to impact the way we live and work for years to come.

Home builders predict the end of open-concept floor plans as we know them.⁵ Buyers are looking for separation and privacy. Cue the addition of alcoves, pocket doors, and sliding partitions that enable homeowners to section off rooms as needed.⁴

The necessity of a home office space is also here to stay. But what if you don’t have a dedicated room? Alternative workspaces have become increasingly popular. In fact, one of the biggest trends on Pinterest this year is the “cloffice”—essentially a spare closet turned home office. Searches for “home library design” and “bookshelf room divider” are on the rise, as well.⁶

Photo by Butter Lutz Interiors, LLC – Search home office design ideas

Inspiring Staycation

With travel options limited right now, more homeowners are turning their vacation budgets into staycation budgets. Essentially, recreate the resort experience at home—and enjoy it 365 days a year!

Bedrooms should be a soothing sanctuary for rest and relaxation. Minimalist decor and muted colors give way to bolder statement pieces. To create a “boutique hotel” look in your own bedroom, start with a large, upholstered headboard in a rich color or pattern. Layer organic linen bedding, a chunky wool throw, and finish the look with matching wall lights..⁷

Carry those vacation-vibes into your bathroom with some of the top luxury upgrades for 2021. Curbless showers and freestanding tubs continue to be popular choices that offer a modern and spacious feel, and large-format shower tiles with minimal grout lines make clean up a breeze. Add a floating vanity and aromatherapy shower head for the ultimate spa-like experience.⁴

Photo by Coda Construction LLC – More bathroom ideas

5. Outdoor Design Upgrades

Homeowners want to use outdoor their spaces. Backyard swimming pool sales skyrocketed in 2020, with many installers reporting unprecedented demand.⁸New pools aren’t the only way homeowners can increase their outdoor areas this year.

The home design website Houzz recently named 2021 “the year of the pergola.” They’re a relatively quick and affordable option to add shade and ambiance to your backyard.⁴ Decked-out, custom playgrounds for exercising (and occupying) the youngest family members who may be missing out on school and extracurricular activities.⁹

Don’t limit your budgt to the backyard, landscapers are reporting an increase in front yard enhancements, including porch additions and expanded seating options. Social front yards enable neighbors to stay connected and observe social distance guidelines.¹⁰

Photo by Urban Oasis Design & Construction LLC – Look for deck pictures

DESIGNED TO SELL

Learn how upgrades impact a homes value. Buyer preferences vary by neighborhood and price range. We can share our insights and offer tips on how to maximize the return on your investment. And if you’re in the market to sell, we can run a Comparative Market Analysis on your home to find out how it compares to others in the area. Contact us to schedule a free consultation!

Sources 5 Inspiring Home Design and Remodeling Trends for 2021:

Good Housekeeping –
https://www.goodhousekeeping.com/home/decorating-ideas/g34762178/home-decor-trends-2021/
The Spruce – https://www.thespruce.com/timeless-color-rule-797859
Homes & Gardens – https://www.homesandgardens.com/news/interior-design-trends-2021
Houzz –https://www.houzz.com/magazine/36-home-design-trends-ready-for takeoff-in 2021-stsetivw-vs~142229851
Zillow –https://www.prnewswire.com/news-releases/the-end-of-open-floor-plans-how-homes-will-look-different-after-coronavirus-301080662.html
Pinterest –https://business.pinterest.com/content/pinterest-predicts/more-door/
Homes & Gardens –https://www.homesandgardens.com/spaces/decorating/bedroom-trends-224944
Reuters –https://www.reuters.com/article/us-health-coronavirus-pools/pool-sales-skyrocket-as-consumers-splash-out-on-coronavirus-cocoons-idUSKCN2520HW
Realtor.com –https://www.realtor.com/advice/home-improvement/2021-design-trends/
Realtor Magazine –https://magazine.realtor/daily-news/2020/12/09/4-outdoor-home-trends-that-may-gain-steam-in-2021

How to Save Money on Insurance and Other Important Answers To Questions

Posted on January 26, 2021 by johanna wells

Have you ever wondered how to save money on your insurance, is your family growing and changing? Is you’re home based business or home improvement insured to the fullest? In Todays Business spotlight, Rich Seymour Owner of Rich Seymour Agency – Farmers Insurance in Westminster is going to share his expertise answering some important questions you may not have thought of.

1. How long you’ve been in business?

2. Who is the perfect client that you can help with your services?

3. What separates you from other insurance agents?

4. What coverage should families that are growing and changing consider?

5. If I were remodeling or doing an addition to my home what considerations should I be thinking about?

6. What coverage do I need for my home-based business?

7. During these uncertain times how can I save money on my insurance?

If you would like to be in a Business Spotlight, please don’t hesitate to reach out to Johanna-303-217-3821 or johannawells@kw.com.

Looking for insurance help? Please reach out to:

Rich Seymour Agency-Farmers Insurance 9100 W 100th Ave Ste 7, Westminster, CO 80021 Phone: (303) 421-7424 #theguyonthecorner Website: https://agents.farmers.com/co/westminster/richard-seymour?SourceID=AMPALFGMAG&utm_source=GMB&utm_medium=Local

Homeownership Resolutions for 2021

Posted on January 20, 2021 by johanna wells

The start of a new year always compels people to take a fresh look at their goals, from health and career to relationships and finance. But with historically low mortgage rates, increased home sales and price growth, and a tight housing inventory, the time is right to also make some homeownership resolutions for 2021. Check out how to discover key action steps to take to achieve your homeownership goals this year, whether you’re a home buyer, home seller, or a homeowner not yet planning on moving.

The New Normal: A Strong Housing Market Expected to Continue into 2021

Posted on November 17, 2020 by johanna wells

“2020 will be known for a lot of things, and a record-breaking year for real estate will certainly be one of its more unexpected legacies,” prominent economist Daryl Fairweather said.¹ And he’s right: most of us would have expected the housing market to suffer from circumstances like a once-in-a-hundred-years pandemic and historic inventory shortages.

But, rather than a slowdown, we are continuing to experience a surprisingly robust real estate market across the country. And experts estimate that these conditions are likely to last well into the new year. Fannie Mae Senior VP and Chief Economist Doug Duncan predicts that existing home sales will ultimately “be up a percent or more in 2021.” He believes home prices will continue to rise due to limited inventory, but he is confident the Federal Reserve will keep interest rates low into the future, which will be “very good for households.”²

Market conditions like fewer available listings, changing criteria for desired homes, and record-low mortgage rates are changing the way people buy and sell homes, most likely in a lasting way. But this sustained activity, even in the uncertainty that is 2020, proves that our country still views real estate as a sound investment. The only question now is how you can take advantage of the housing market’s “new normal.”

FEWER LISTINGS EQUALS A SELLER’S MARKET

Inventory, meaning the number of homes for sale, is at a record low across the country. The National Association of Realtors (NAR) reports there are fewer homes on the market today than the association has seen in data going all the way back to 1982.³Currently, the total housing inventory is about 1.47 million units, which is a decline of 19.2% from one year ago.⁴

Experts do predict some relief on the horizon. MarketWatch had previously anticipated housing starts would occur at a pace of 1.45 million and building permits would come in at a pace of 1.52 million.⁵But it turns out that the market exceeded expectations: compared with last year, housing starts are up 11% and permitting for new homes occurred at a seasonally-adjusted annual rate of 1.55 million. That represents a 5% increase from August and an 8% increase from a year ago.

For now, the fact that there are fewer listings creates an advantageous housing market for sellers. There are several reasons why.

For one, buyers have to act fast to snap up available homes. As a result, most properties that come on the market stay for an average of just 21 days before they are sold.⁶ “That is the fastest ever recorded in our monthly series,” says NAR Chief Economist Lawrence Yun.

Another benefit is that sellers are enjoying higher net returns on their listings. This is thanks to the tough competition for homes, which often results in bidding wars between buyers. Nationwide, the median home price in September rose to $311,800. That translates to about $40,000 (15%) more than just a year ago.⁷

This seller’s market is not simply a product of the pandemic. In fact, in the country’s top 100 metro markets, inventory has been dwindling since the first quarter of 2020.⁸ This means that even with increased construction, buyers can’t simply wait for things to go back to normal before reentering the market. Rather, all signs indicate that this is the new normal.

What It Means for Homeowners:

These higher home prices show that buyers are willing to spend more on a home right now than they did last year. So, if there ever were a time to list for top dollar—and expect to receive asking price quickly—that time is now. Ask us for a free consultation of your home’s value today.

What It Means for Homebuyers:

Due to low inventory, buyers could easily find themselves in a bidding war. Time is of the essence in a seller’s market, so you’ll need to get your financing in order and be preapproved for a loan before you begin your home search. We can connect you with a trusted mortgage professional to get you started.

BUYERS BENEFIT FROM LOW MORTGAGE RATES AND A BIGGER PLAYING FIELD

Don’t worry, homebuyers. This “new normal” of real estate has benefits for you too.

For example, people used to base their next home purchase on how far the commute was to work or in which public school district it was. But now, thanks to the pandemic shifting the locus of jobs and work, they are free to consider what they need from a home to make it a place they truly want to be in as they work, teach, exercise, cook, and live.

Often, this equates to needing more space in different types of areas. Realtor.com consumer surveys show that people are desiring quieter neighborhoods, home offices, updated kitchens, and access to the great outdoors.⁹ The search for these criteria is driving residents out of densely populated metropolitan areas and into the suburbs.¹⁰ And this exodus from cities is good news for buyers: it opens up more possibilities for inventory that they could not have considered pre-pandemic.

Another advantage for buyers is the record-low mortgage rates. The average rate for a 30-year fixed-rate mortgage hit a record low in mid-October when rates fell to 2.81%. That’s the lowest since Freddie Mac began conducting the survey in 1971, and well below last year’s 3.69%.¹¹ Similarly, a 15-year fixed-rate mortgage can be had for as low as 2.35% compared to 3.15% a year ago.

Thanks to these rates, buyers are afforded the opportunity to buy nearly $32,000 more home than they could one year ago, while keeping their monthly payment the same.¹² So even though home prices are high now, it is currently more affordable to buy a home now than it was last year.

If you want to take advantage of these rock-bottom mortgage rates, you need to act fast. Though rates are projected to stay low, housing economists predict that the window of opportunity to get the best rate could be closing in the coming months. Mike Fratantoni, chief economist at the Mortgage Bankers Association, said he expects the average rate on a 30-year mortgage to rise to 3.5% by the end of 2021.¹³

What It Means for Homeowners:

Record-low mortgage rates offer you the opportunity to lower your monthly payment—or even take out some equity—with a refinance. With those additional funds, you could even choose to invest in a second home in a new desirable location. Reach out to us for a referral to a trusted mortgage professional or an agent in those markets.

What It Means for Homebuyers:

The time is now to determine how much home you can comfortably afford and make a plan to find it. We can set up a search for you to find homes that best meet your new needs, even if they’re in neighborhoods you wouldn’t have considered before.

A RECORD-SETTING YEAR FOR HOME SALES IS JUST THE BEGINNING

Despite the seemingly adverse buyer conditions, 2020 experienced a 14-year high number of home sales, NAR reports. Existing-home sales, which include single-family homes, townhomes, condominiums and co-ops, rose 9.4% in September to a seasonally adjusted annual rate of 6.54 million.¹⁴ That’s a 21% increase from a year ago!

Every region of the country has seen a surge in sales activity. According to George Ratiu, senior economist for Realtor.com, part of the reason for these continued sales is that the pandemic has created a paradigm shift in the patterns of real estate.¹⁵ For example, housing needs are typically resolved by late summer and early fall to coincide with the commencement of the new school year. With homeschooling and remote work, however, buyers have been freed to continue their home search into the traditionally slow winter months.

Another reason for the robust market is that Millennials are finally putting their money into homeownership. According to the U.S. Census Bureau, the homeownership rate for 25-to-34-year-olds rose to 40.7% by the end of last year.¹⁶This is significant because Millennials, the generation of people in their mid-20s to late-30s, currently surpasses Baby Boomers as the nation’s largest living adult generation. As the remaining percentage of this group starts investing in homes in the near future, demand will persist.

All of these factors indicate that the housing market is poised to remain strong as we head into the new year. And as Jonathan Woloshin, head of U.S. real estate at UBS Global Wealth Management, believes, they could “buoy the housing market for years to come.”¹⁷

What It Means for Homeowners:

It’s tempting to believe that homes will basically sell themselves in a market like this. But we’re still seeing properties that are overpriced and under-marketed sit unsold. We can help you optimize the process of selling your home so you can get the best possible offer.

What It Means for Homebuyers:

Preparation is key to success in a seller’s market like this, but don’t let yourself become paralyzed. We are here to answer your questions and offer sound advice to guide you through all the options that are available to you.

REAL ESTATE IS A SAFE BET

Your other investments might have been on roller coasters this year, but the real estate market has been steady, competitive, and strong throughout. That makes it a good choice for your financial future.

National real estate numbers can give us a pulse on the market, but real estate happens in our own backyard. As your local market experts, we can help you understand the finer points of the market that impact sales and home values in your own neighborhood.

If you’re considering buying or selling a home before the new year or in early 2021, contact us now to schedule a free consultation. We’ll work with you to develop an actionable plan to meet your goals.

Sources:

Redfin –
https://www.redfin.com/news/housing-market-news-september-2020/
Housing Wire –

Fannie Mae’s Duncan offers 2021 housing market forecast

CNBC –

https://www.cnbc.com/2020/10/22/september-existing-home-sales-jump-9point5percent.html

NAHB –

Existing Home Sales Surge Despite Record-Low Supply

MarketWatch –

https://www.marketwatch.com/story/new-home-construction-slows-slightly-in-august-driven-by-pullback-in-multifamily-starts-2020-09-17

National Association of Realtors –

https://www.nar.realtor/newsroom/existing-home-sales-soar-9-4-to-6-5-million-in-september

Business Insider – https://www.businessinsider.com/how-2020-broke-the-housing-market-inventory-could-run-out-2020-9
Forbes –

https://www.forbes.com/sites/petertaylor/2020/10/11/covid-19-has-changed-the-housing-market-forever-heres-where-americans-are-moving-and-why/#74e7355761fe

Realtor.com –
https://www.realtor.com/research/top-consumer-home-features-coronavirus/
Wealth Advisor – https://www.thewealthadvisor.com/article/covid-19-has-changed-housing-market-forever-heres-where-americans-are-moving-and-why
Washington Post –

https://www.washingtonpost.com/business/2020/10/15/30-year-mortgage-rate-drops-record-low/

Forbes –

https://www.forbes.com/advisor/mortgages/buying-a-home-low-mortgage-rates/

BankRate –

https://www.bankrate.com/mortgages/refinance-window-could-close-soon/

National Association of Realtors –

https://www.nar.realtor/newsroom/existing-home-sales-soar-9-4-to-6-5-million-in-september

Forbes –

https://www.forbes.com/sites/petertaylor/2020/10/11/covid-19-has-changed-the-housing-market-forever-heres-where-americans-are-moving-and-why/#74e7355761fe

TD Economics –

https://economics.td.com/us-falling-mortgage#:~:text=The%20homeownership%20rate%20among%20millennials,47.7%25%20at%20a%20comparable%20age.&text=This%20means%20that%201.4%20million,that%20of%20the%20older%20generation

Axios Media –

https://www.axios.com/real-estate-market-819e3c85-3765-4014-91c0-b545be6d5935.html

10 Ways to Give Back to Our Local Community This Holiday Season

Posted on January 17, 2020 by johanna wells

This year has demonstrated, perhaps more than ever, the importance of our family, friends, neighbors, and community. It truly “takes a village” to keep a community functioning effectively, whether that’s by keeping our waterways clean, feeding the hungry, teaching our kids, or supporting small businesses.

With the holidays right around the corner, December offers the perfect opportunity to give back to the place we call home. You might want to focus your efforts near home, expand to our larger community, or even help support the people closest to you. Whether you’re passionate about a particular cause or just want to get more involved in general, let these 10 ways, both big and small, inspire you to do good in your town.

GIVE BACK NEAR HOME

1. Attract local wildlife. By making your neighborhood more wildlife friendly, you’re helping to create a balanced and healthy ecosystem. Plus, many of the animals you can attract help with pest control and pollination.¹

Ideas:

Add a birdbath to your backyard or create a rain garden to attract wildlife (and filter out local pollutants).
Place bird feeders on your property to feed birds all year long.
Tie corncobs to tree branches to feed squirrels.
Hang birdhouses on your property to provide shelter.
Use native plants in your landscaping to provide food and shelter for birds, bees, butterflies, and other critters.

Take action: While you might not be able to “break ground” until spring, start researching native plants now to design a landscaping plan that provides food, shelter, and water for local wildlife.

2. Clean up our community. Besides beautifying the area, picking up trash keeps it out of our local waterways, which means a cleaner water supply for all of us.

Ideas:

Whether you make this a solo effort or join in an organized group event, pick up trash in your neighborhood, at a local park, or elsewhere in our community.
Depending on your community’s regulations, you can recycle many home items such as paper, glass, and aluminum.
And don’t forget to clean the exterior of your home, where water runoff (such as on your driveway and sidewalks) can carry debris into the local sewer system.²

Take action: Check with your local municipality to learn about environmental clean-up efforts in our community, as well as recycling and composting.

3. Organize or join a neighborhood watch. According to a recent report, neighborhoods with Neighborhood Crime Watch programs experience roughly 16 percent less crime.³ Keeping an eye out for each other instills a sense of safety and security in your neighborhood by increasing surveillance, reducing opportunities, and enhancing information sharing among residents. Even if your neighborhood doesn’t have an official program, you can still share crime information via a neighborhood Facebook group or apps like NextDoor.

Ideas:

Make a point of looking out for each other and being observant of what’s going on.
You can even make it official by joining a neighborhood watch program.
Don’t have one? Consider launching a neighborhood watch program with the help of other interested neighbors.

Take action: Some police forces use online mapping tools that provide crime alerts to people in neighborhoods where recent criminal activity occurred.³ Share this information with your neighbors.

HELP OUT LOCAL ORGANIZATIONS

4. Boost your civic engagement. Regardless of your politics, you can get more involved as a citizen to make a positive difference in our community.

Ideas:

Sign a petition to make a needed change in our community.
Join a peaceful march, protest, or rally to support a cause dear to your heart.
Attend local school board meetings, town halls, or city council meetings to understand (and have a voice in) local issues.⁴
Watch (and read) a variety of local news sources to get balanced reporting on what’s happening in our community.
If you don’t know your neighbors very well, introduce yourself.
Then make a commitment to check in on those who might need help, such as an elderly neighbor.
Get plugged into the resources and events in our town by visiting local museums, taking historical tours, borrowing materials from our local library, and attending community festivals.

Take action: Do you know who our local leaders are, such as our mayor or city councilwoman? Get to know their names, their policies, and their stand on issues that affect our community. Subscribe to their newsletter and follow them on social media.

5. Support local businesses. Our community has been impacted by the pandemic, with many businesses being forced to limit capacity, instill social distancing efforts, and even shutter entirely in some cases. Help keep money in our local economy by shopping local instead of relying on online shopping from national chains.

Ideas:

From handcrafted soaps and one-of-a-kind apparel to locally produced chocolate and small-batch wines, you’ll find plenty of unique gifts at the small businesses that dot our community.
Consider purchasing tickets to attend live-streamed holiday concerts and shows.
Buy cookies and other baked goods from our local bakery.
Get takeout from our local restaurants.
Support local farmers by purchasing fresh fruits and vegetables at community farmer’s markets.

Take action: If you’re concerned about shopping in person right now, many of these businesses, though small, offer online shopping, with options for in-store pick-up, curbside delivery, and/or mail options.

6. Donate to local charities. Nonprofits could always use your financial support, so consider making a monetary donation to help them carry out their mission in our community. But if money is tight (or you want to support in other ways), think beyond just donating dollars.

Ideas:

Consider donating to a charity in someone else’s name as an altruistic gift on behalf of a friend or relative.
Give blood to our local blood bank.
Donate new or used books to our community library.
Send school supplies to our neighborhood elementary school.
Help struggling neighbors by donating blankets to the homeless.
Pick out toys to give to a charity that caters to families.⁵

Take action: Many collection efforts run by charitable organizations and businesses take place during the holidays. Look to see what’s already taking place in our community and choose one or more to give to this season.

CARE FOR YOUR NEIGHBORS

7. Organize a holiday food drive. This year, in particular, people are struggling to pay their bills and put food on the table. The pandemic has caused many businesses to close or reduce their staff size, putting many people out of work.

Ideas:

If you personally know someone who needs help buying groceries, reach out and offer to help that one family.
If not, partner with a local food bank, soup kitchen, nonprofit or community organization that feeds people in need.
Round up a few friends, family, co-workers, or neighbors to collect food for a few weeks. Then deliver the bounty in time for the holidays.

Take action: Take advantage of your grocery store coupons and buy-one-get-one offers to inexpensively stock up on nonperishable goods.

8. Adopt a family or an individual. The holidays can be a struggle, especially financially, for some families. They might not be able to buy a Christmas tree or presents for their children. Maybe their holiday meal consists of boxed macaroni and cheese because they can’t afford a turkey and fresh vegetables. You can make a difference by “adopting” a particular family (or even just a child) to help make their holiday special.

Ideas:

If you know a needy family, help them directly.
If not, ask a community group for the name of a family or individual in need.
Some businesses even sponsor toy drives or “angel trees” where you can pick the name of a needy family off the tree and buy from their wish lists.

Take action: This works great as a family project. Get the kids in your life involved to help make holiday cards and pick out toys to give to the children in the adopted family.

9. Volunteer. Depending on your schedule and your preferences, you might be able to volunteer in-person or from home, whether it’s a one-time effort or ongoing project. It’s a great way to meet like-minded people in your community as you make a positive impact together for a shared cause.

Ideas:

Give your time to a cause or organization that really matters to you, such as your local school, animal rescue organization, mental health awareness group, or environmental nonprofit.⁶
Tap into a skill you already have, like creating videos, and offer your services.
Or learn a new skill (like fundraising) to benefit your cause of choice.

Take action: Start with your local community to see where its needs are the greatest. Make a point to help this holiday season, perhaps extending your commitment throughout 2021.

10. Perform random acts of kindness. Don’t think you need to “go big or go home” in your give-back efforts. You can make a big difference one small act at a time.

Ideas:

Give a generous tip to a waitress.
Pay for the coffee of the car behind you in the drive-through.
Take care of a neighbor’s pet while they’re out of town.
Send holiday cards to deployed military personnel.
Deliver a plate of homemade holiday cookies to our local fire or police station.
Smile at a stranger.
Rake leaves for an elderly neighbor.
Thank your child’s teacher for all their hard work this year.
Send an uplifting text to a friend.
Compliment someone.
Help a coworker with an unpleasant task.

Take action: Need more ideas? Visit randomactsofkindness.org for hundreds of inspiring ways to make someone’s day a little brighter.

HOW WE CAN HELP YOU?

As real estate experts in our local community, we’re tuned into the unique needs of the place we all call home. Reach out to us today to discuss more ways to make a positive impact in our community—this holiday season and beyond. And we want to make sure you’re taken care of, too. If you’re thinking about buying or selling a home now or in the near future, let us help you!

Sources:

Redfin –
https://www.redfin.com/blog/attract-wildlife-to-your-backyard/#:~:text=Sow%20plants%20that%20provide%20essentials,these%20alternate%20natural%20food%20sources
The Groundwater Foundation –
https://www.groundwater.org/action/home/raingardens.html
The Globe and Mail –
https://www.theglobeandmail.com/life/home-and-garden/how-neighbours-and-online-maps-can-help-deter-break-ins/article34886427/
Parade –
https://parade.com/1083640/stephanieosmanski/what-is-civic-engagement/
MentalFloss –
https://www.mentalfloss.com/article/88663/15-ways-give-back-holiday-season
Together We Rise –
https://www.togetherwerise.org/blog/7-ways-give-back-community/

THE THREE TYPES OF HOME VALUES

Appraised Value

Assessed Value

True Market Value

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HOW AN AGENT FINDS YOUR HOME’S TRUE MARKET VALUE

YOUR AGENT IS THERE EVERY STEP OF THE WAY

Get a Complimentary Report With Your Home’s True Market Value

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How will a Biden administration affect the real estate market?

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