Calculated Risk

The economic research blog called “Calculated Risk” just completed a fascinating study on home prices.

Specifically, they looked at the correlation between home price growth and inventory.

They used price data from the Case-Shiller Home Price Index and inventory data from the National Association of Realtors.

No surprise, they found that the lower the inventory the higher the home price growth.  Also no surprise, as inventory goes up, price growth slows down.

This all correlates with simple economic rules of supply and demand.

The interesting part of their research is this:  at a certain level of inventory, prices have the potential to go down.

That level, according to their research, is six months of inventory.

That means, prices don’t have a chance of decreasing in a market until there is at least 6 months of inventory available for sale.

To put that in perspective, today there is two weeks of inventory on the market along the Front Range.

So, there would need to be 12 times the amount of homes for sale on the market for prices to even have a chance to go down.

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Millennium Beauty!

903 Pyxis Dr is a fabulous three-bedroom home backing to open space in Loveland’s coveted Millennium neighborhood! Featuring a great room concept with a high ceiling and fireplace, your new home boasts a large kitchen with granite slap counters, espresso cabinets, wood floors and plenty of storage! On the second level, you’ll find the sprawling primary suite with gorgeous bath, two more bedrooms and a large loft overlooking the great room. Entertain or relax on the fantastic back patio under the pergola; taking in the beautifully manicured back yard with trees galore. Three-car garage and full unfinished basement for future expansion. An amazing home and excellent value! Contact Jon Holsten at (970) 237-2752 for your private showing or click the link below for more details.

http://windermerenoco.com/listing/133437424

The post Millennium Beauty! appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Millennium Beauty!

903 Pyxis Dr is a fabulous three-bedroom home backing to open space in Loveland’s coveted Millennium neighborhood! Featuring a great room concept with a high ceiling and fireplace, your new home boasts a large kitchen with granite slap counters, espresso cabinets, wood floors and plenty of storage! On the second level, you’ll find the sprawling primary suite with gorgeous bath, two more bedrooms and a large loft overlooking the great room. Entertain or relax on the fantastic back patio under the pergola; taking in the beautifully manicured back yard with trees galore. Three-car garage and full unfinished basement for future expansion. An amazing home and excellent value! Contact Jon Holsten at (970) 237-2752 for your private showing or click the link below for more details.

http://windermerenoco.com/listing/133437424

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What is a Seller’s Market?

When the housing market favors sellers, a seller can expect ideal conditions for selling their home. However, that’s not to say that a seller’s market doesn’t come with its own unique set of challenges for parties on both sides of the transaction. That’s why it’s critical for buyers and sellers to work with an agent who not only understands their wants and needs but who can also help them navigate highly competitive market conditions.

What is a Seller’s Market?

A seller’s market occurs when demand exceeds supply. When inventory is limited, competition amongst buyers is fierce. Median sales prices increase, days on market decrease, and homes commonly receive multiple offers, often over their original asking price.

Selling in a Seller’s Market

Though demand is high in a seller’s market, staging and making any necessary repairs are still important steps to take before hitting the market. An agent can help a seller make important decisions about which repairs and updates help add value to the home.

When it comes to offers and negotiations in a seller’s market, sellers have the leverage. It’s common for homes to fetch more than their asking price with multiple offers on the table. Though prices are being driven up by demand, a seller may choose to list their home at or just below fair market value with the hopes of starting a bidding war. Because competition is so high, buyers may be willing to waive an inspection contingency to help make their offer stand out. Agents can help sellers decide whether they should conduct a pre-listing inspection, which sometimes helps the seller get more offers and command a higher price.

With multiple offers on the table, it may be tempting to simply choose the one with the highest figure; however, the best offer is also the one that removes risk and aligns with the seller’s goals. Whether that entails waived contingencies, a shorter closing window, or an all-cash offer, in a seller’s market, the seller has the power to choose. Sellers should fully review each offer with the help of their agent before proceeding.

Buying in a Seller’s Market

Buyers in a seller’s market must act fast. Due to the high level of competition, they must be prepared for a frustrating scenario where their offers may not win out. This emphasizes the importance of working with a buyer’s agent. In a seller’s market, it’s more likely that the buying process will include such factors as seller review dates and escalation clauses. A buyer’s agent will help navigate these challenges while working with their client to make their offer stand out. They will formulate a strategy, comparing their client’s wish list and budget against the limited number of homes available and proceeding accordingly. A buyer’s agent will also set the expectation that, due to the competitive nature of the market, finding the right home may take longer than expected.

In a seller’s market, the buyer is at a disadvantage when it comes to negotiations. The chance of getting a contingent offer is minimal and pushing for certain closing dates and specific repairs may do more harm than good to their offer. A cash offer has significant power in a seller’s market. If a buyer can make a cash-heavy or even all-cash offer, it is likely to stand out to the seller. It gives the buyer more buying power and greatly increases their chances of winning a bidding war.

For more information on the conditions of your local market, visit our website for Quarterly Real Estate Market Updates from our Chief Economist, Matthew Gardner. For assistance planning a home sale or purchase, connect with a Windermere Real Estate agent here: Connect With an Agent

The post What is a Seller’s Market? appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

What is a Seller’s Market?

When the housing market favors sellers, a seller can expect ideal conditions for selling their home. However, that’s not to say that a seller’s market doesn’t come with its own unique set of challenges for parties on both sides of the transaction. That’s why it’s critical for buyers and sellers to work with an agent who not only understands their wants and needs but who can also help them navigate highly competitive market conditions.

What is a Seller’s Market?

A seller’s market occurs when demand exceeds supply. When inventory is limited, competition amongst buyers is fierce. Median sales prices increase, days on market decrease, and homes commonly receive multiple offers, often over their original asking price.

Selling in a Seller’s Market

Though demand is high in a seller’s market, staging and making any necessary repairs are still important steps to take before hitting the market. An agent can help a seller make important decisions about which repairs and updates help add value to the home.

When it comes to offers and negotiations in a seller’s market, sellers have the leverage. It’s common for homes to fetch more than their asking price with multiple offers on the table. Though prices are being driven up by demand, a seller may choose to list their home at or just below fair market value with the hopes of starting a bidding war. Because competition is so high, buyers may be willing to waive an inspection contingency to help make their offer stand out. Agents can help sellers decide whether they should conduct a pre-listing inspection, which sometimes helps the seller get more offers and command a higher price.

With multiple offers on the table, it may be tempting to simply choose the one with the highest figure; however, the best offer is also the one that removes risk and aligns with the seller’s goals. Whether that entails waived contingencies, a shorter closing window, or an all-cash offer, in a seller’s market, the seller has the power to choose. Sellers should fully review each offer with the help of their agent before proceeding.

Buying in a Seller’s Market

Buyers in a seller’s market must act fast. Due to the high level of competition, they must be prepared for a frustrating scenario where their offers may not win out. This emphasizes the importance of working with a buyer’s agent. In a seller’s market, it’s more likely that the buying process will include such factors as seller review dates and escalation clauses. A buyer’s agent will help navigate these challenges while working with their client to make their offer stand out. They will formulate a strategy, comparing their client’s wish list and budget against the limited number of homes available and proceeding accordingly. A buyer’s agent will also set the expectation that, due to the competitive nature of the market, finding the right home may take longer than expected.

In a seller’s market, the buyer is at a disadvantage when it comes to negotiations. The chance of getting a contingent offer is minimal and pushing for certain closing dates and specific repairs may do more harm than good to their offer. A cash offer has significant power in a seller’s market. If a buyer can make a cash-heavy or even all-cash offer, it is likely to stand out to the seller. It gives the buyer more buying power and greatly increases their chances of winning a bidding war.

For more information on the conditions of your local market, visit our website for Quarterly Real Estate Market Updates from our Chief Economist, Matthew Gardner. For assistance planning a home sale or purchase, connect with a Windermere Real Estate agent here: Connect With an Agent

The post What is a Seller’s Market? appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Kensington South Ranch!

1424 Hastings Dr is a fantastic 3-bedroom ranch-style home in central Fort Collins’ popular Kensington South neighborhood! Just steps from a huge community greenspace, your new home boasts a wide-open floor plan with walk-out basement. From the spacious kitchen with granite countertops and plenty of storage — to the separate dining and living rooms with a vaulted ceiling and fireplace, this home in this part of the city is a rare find! Large office and sprawling primary bedroom on the main level, including a renovated bath and walk-in closet. The finished basement adds a large rec room, wet bar, two bedrooms and a bath. Entertain or relax in the sunroom or on the deck and patio in the fully landscaped back yard with large trees. Close to Rocky Mountain High School and CSU, along with shopping, restaurants, and more! Contact Jon Holsten at (970) 237-2752 for your private showing or click the link below for more details.

http://windermerenoco.com/listing/132899341

 

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Midtown Condo!

3400 Stanford Rd A120 is a fantastic 2-bedroom condo in midtown Fort Collins’ popular Windmill community. With brand new carpet and paint throughout, this second-story residence is well-maintained and move-in ready! Classy great room with fireplace and access to the balcony. This home also comes with reserved parking. Super convenient access to restaurants, shopping, entertainment and the MAX transit system. Fantastic private residence or investment property! Awesome unit and excellent value! Contact Jon Holsten at (970) 237-2752 for your private showing for more information or click the link below for more details.

http://windermerenoco.com/listing/132727172

 

 

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Updated Eaton Ranch!

455 Spruce Ave, Eaton is a recently updated ranch with large yard and plenty of storage! This 2 bedroom home recently had a complete kitchen overhaul and has all new appliances, cabinets, counters and backsplash. Extra storage was also built in so you have plenty of space to fill. The large unfinished basement is partially framed in and just needs to be finished out or could be left and used for storage. Close to schools, shopping and just a few minutes to Greeley, Severance or Ault. Contact Anali Roath at (970) 829-8818 for your private showing for more information or click the link below for more details.

http://windermerenoco.com/listing/132788179

 

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Tax Confusion

Did you know the value of your property according to the County Assessor is not the value of your property today?

Property owners up and down the Front Range recently received a postcard from their local County Assessor’s office with their new valuation.

Colorado properties are reappraised every two years on odd years.  The updated valuations determine how much property tax is paid.

Each County has their own unique processes and models for valuation, however…

All Counties must only consider comparable properties that sold between July 1, 2018 and June 30, 2020.

The value on your postcard is what your County thinks your property was worth almost a year ago.

As you are likely aware, the market today is significantly different than it was 11 months ago.  It’s actually quite different than it was 11 weeks ago!

The postcards with the new valuations tend to prompt very reasonable questions like:

  • What do I do if I don’t agree with the Assessor?
  • What is my property really worth?

We are happy to help you with either of these questions.

Our team is well-versed in the tax protest process, can help you research comparable properties and can also show you what your home is worth today. Just reach out to us if we can help you. The deadline to protest your value is June 1st.

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Bright End Unit Condo!

225 E 8th Ave Apt 5 is a  two-story end unit Condo in Longmont! This bright and sunny home has over 1200 square feet, 2 beds, 2 baths. Solid surface flooring throughout. The master loft has additional space for a potential home office or second living area, large walk in closet and a washer and dryer. Relax in the open and inviting living room featuring a wood burning fireplace. Main floor bedroom. All appliances included. Outdoor patio. Neighborhood pool. Oversized Mechanical room for extra storage. Don’t let this one get away. Contact Alexis Foster at (970) 310-6999 for your private showing for more information or click the link below for more details.

http://windermerewindsor.com/listing/132789765

 

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