Category: Buyers

5 Tips for anyone Buying or Selling Real Estate in 2015

5. Translating Real Estate Predictions for 2015

Every year experts make predictions on what the future has in store, based on the many predictions I’ve seen, here’s what I see in the crystal ball most likely to affect the Denver Real Estate market. Interest rates on the rise, rates have remained in the low 4’s for the past several years and many experts predict rates will reach 5 by the end of 2015. What this means is affordability will decrease when rates increase, likely causing home values to stabilize. Record high home sales in Denver, with the combination of first time millennial buyers, growing population in Denver, move up buyers who have been waiting for their homes value to provide the equity needed for their next stage in life, empty nesters looking to downsize or move to a warmer climate, and the large number of boomerang buyers who went through a short sale or foreclosure when the market fell approximately 5 years ago – Denver will have extremely high home buyer demand in 2015 and I suspect we will see a record high number of homes sold in 2015. Increase home prices in Denver, values will likely see modest increases this year as values slow from the double digit increases we’ve seen for the past 2 years. We are still in a sellers market with more demand than availability inventory – demand is expected to stay strong in 2015 but when interest rates increase, buyers affordability will counter balance the jumps we’ve been seeing in price. Bottom line, now is a great time to buy or sell property in Colorado. Often times you move because of a life altering event and it’s a necessity, if you’ve been waiting for the right time to move there may not be a better year than 2015!

4. Understanding Market Value vs Appraised Value

As a buyer or seller, it’s important to understand value is driven by a variety of factors in the market. Market value is the amount a buyer is willing to pay for a property, this is sometimes higher and sometimes less than the appraised value. In a perfect world, an appraiser will come up with a value equal or slightly higher than the purchase price. Why might a buyer be willing to pay more than similar homes recently sold for? Perhaps it’s the only house that check’s every box off your list or the house has a unique feature or desirable location that is difficult for an appraiser to justify an adjustment, or perhaps this is your favorite house and you’re up agains fierce competition with other buyers who have offers on the table. We are still in a strong sellers market, exceptional houses in certain price ranges may attract buyers who either offer more or are willing to pay more than the appraised value. This is a complicated matter that as a buyer or seller you may find yourself in and need to have a realistic idea of an estimated “appraised” value before making an offer or countering/accepting an offer.

3. Strategize a Door to Door Move

No one wants to move into temporary housing. With realistic expectations paired with a smooth real estate transaction, more often than not you should be able to move directly from your current property to your desired new home. Here are several things that can assist you with a successful door to door move. 1) Have broad search criteria with a realistic price range, be looking in a several mile radius or in multiple neighborhoods with a price range that is within the “average sales price” for the area. The “average sales price” varies across the Denver Metro in some areas you can find a detached single family for $200,000-$250,000 and other areas you’ll need at least $400,000. 2) Have a realistic timeline, from contract to close you’ll typically need 4-6 weeks. In certain circumstances you can close in 2 weeks but that is not the norm. Even with a 4 week close you should plan a little buffer time to plan and prepare. 3) Work with a team of professionals. On your team it’s imperative you have an experienced REALTOR and lender (unless you’re a cash buyer). This is likely one of the largest purchases of your lifetime, do not underestimate the complexity of details involved and the unexpected turns that could happen. Your lender is just as important as your REALTOR, especially if you’ve had a credit event in recent years such as a short sale, foreclosure, NED or bankruptcy – you may be able to qualify but DO NOT take that risk with anyone other than an trusted expert in purchase loans.

2. How to handle a competitive offer situation

In Denver’s currently strong sellers market, as a buyer or seller you need to be prepared for multiple offers. For a Seller, the highest offer is quite possibly not the best – let your REALTOR advise you on the various factors to evaluate to determine which Buyer is most likely to successfully close on your property. For a Buyer, first and foremost, you need to be pre-approved with a reputable local lender to be competitive. I stress pre-approved as this means your financial background has been seen and verified by your lender and you’ve gone beyond simply completing an online loan application. As mentioned previously, working with a trusted expert in purchase loans will greatly benefit you, a good listing agent will vet your lender before discussing offers with their client and be more comfortable advising the Seller to work with a lender they have a positive track record with. While there are many lenders out there, few have a highly esteemed reputation that will increase your competitiveness. Other considerations as a buyer is having tight deadlines; no contingency if possible; increasing your earnest money; making your offer stick out; and having a clean offer, you’d be surprised at the number of individuals who have a Colorado Real Estate License but do not professionally complete the Contract to Buy and Sell.

1. Talking through your real estate needs and expectations

Buying or selling a house is a big decision. It’s important to understand what is motivating you to make the move, set your goals and prioritize your wish list. If you are a current homeowner, be sure your REALTOR provides you with your estimated net proceeds – based on a realistic market value for your home, this will be needed to help determine a realistic budget for your next home. Whether you’re a seasoned homeowner or a first time homebuyer be sure to work with someone who is there to understand your needs and work hard to serve YOU.

If you’ve been thinking of buying or selling a home in the Denver Metro contact me to discuss your situation and develop a plan customized to your needs. Find out the services I offer to assist my sellers earn more money in less time and my buyers increase their odds of having their offer accepted in multiple offer situations.

-Jennifer Blake, Denver REALTOR

As reported by the Wall Street Journal, home values across the country have regained momentum since the market bottomed out in 2011. Looking at the real estate Denver specifically, according to Case-Shiller, the summer of 2014 put us 10 points higher than the July 2006 recession peak. This is excellent news for homeowners who have been patiently waiting to sell their home to move on to the next chapter of their life. Many household’s have been waiting for a strong equity position to either move-up into a larger home or to downsize and use the profits for their retirement nest egg.

The current market is strong for both buyers and sellers. Buyers are able to afford more bang for their buck with historic low interest rates and sellers are able to maximize their profits with record high values.

How long before the market changes or tips in a different direction? No one knows for sure, but homeownership is part of the American Dream and it’s consistently rated as the best investment possible so I’d suggest you consider homeownership as part of a long term strategy. Not satisfied with the bureaucratic answer,  here are a couple of predictions from industry analysts and experts.

1. Interest rates will reach 5% by 2015 and likely reach into the 6%’s in the foreseeable future.

2. Home values will cumulatively appreciate 19.5% by 2018. As reported by Pulsenomics surveys, a nationwide panel of over one hundred economists, real estate experts and investment & market strategists.

3.  The average homeowner has a net worth of $174,500 while the average net worth of a renter is $5,100 (according to a study conducted and published in June of 2012 by the Federal Reserve ).

No matter where you are in the cycle of homeownership, now is a great time to either invest in your future or cash in the gains from your long term investment.

Have you been waiting for the right time to sell your home and move on to the next chapter of your life? Now is an amazing time for you to speak with your REALTOR to determine how much your home has appreciated in value and estimate your net proceeds if you were to sell your home. If you’ve been in  your current home for 5 or more years, odds are you need more space, need a more functional home or perhaps are ready to downsize. No matter your situation, now is an amazing time to sell a home in the Denver market.  With skyrocketing rents, record breaking first time home buyers, historic low interest rates and a growing population in Denver – multiple prospective home buyers are lined up waiting for homes to buy.

Contact Jennifer Blake today to discuss your real estate needs and questions. When speaking with your Denver REALTOR be sure to ask how they will differentiate your home to maximize your profits and the types of tactics and strategies they use to achieve your goals – whether that’s a door to door move, quick close or selecting the best buyer.

Home values rapidly rising

There is no question the Denver Real Estate market is heating up quickly this year. Median sales prices have risen approximately 10% from March 2013 to March 2014 and the number of homes sold month over month compared to last year is pacing nearly 50% higher. At the end of April there were 22,871 home sales in metro Denver compared to 15,542 in 2013! Demand is skyrocketing from first time buyers, relocations to the area, boomerang homeowners who lost their home to foreclosure or short sale several years ago are able to qualify again and existing home owners who have been holding on waiting for values to rise.

It’s an amazing market for sellers but I’m not going to lie, it can be a little scary for buyers. If you’re a current home owner thinking of selling be sure to talk through strategies with your agent for a door to door move, sometimes it works out best to go into temporary housing but it’s not always necessary. If you’re a buyer be sure your agent is utilizing tactics to help your offer stand apart, a strong offer extends far beyond the purchase price.

If you’ve been thinking of buying or selling a home in the Denver area contact me to discuss your situation and develop a plan customized to your needs. Find out the services I offer to assist my sellers earn more money in less time and my buyers increase their odds of having their offer accepted in multiple offer situations.

-Jennifer Blake, Denver REALTOR