What is a Seller’s Market?

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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?

/in , , , , , , , , /by

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.

Want a house in Fort Collins? Grab $500,000, get in line and join the housing Hunger Games

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“Buying a house in Fort Collins these days can feel like a combat sport. Maybe more like the

‘Hunger Games.’ Or Charlie Brown and the football — every time you get close to the ball,

Lucy whisks it away…”

 

Pat Ferrier at the Fort Collins Coloradoan breaks down the housing market in Northern Colorado with the help real estate professionals across the front range. Click the link below to read on!

 

Fort Collins real estate_ Average home price near $500K in market

The post Want a house in Fort Collins? Grab $500,000, get in line and join the housing Hunger Games appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Colorado Bound

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The 2020 Census confirms what we already know – Colorado is popular!

It turns out that many people have been Colorado-bound over the last 10 years.

Our state has grown by the equivalent of one Mile High Stadium’s-worth of people each year over the last 10 years.

Here are the numbers:

  • 2020 population is 5.77 million
  • 10-year population increase is 744,000
  • 10-year percentage increase is 14.8%
  • Colorado ranks 21st among all states for population
  • Only 5 states had a larger percentage increase over the last 10 years (Idaho, North Dakota, Nevada, Texas & Utah)

Only 8 states had a larger increase in population over the last 10 years (Arizona, California, Florida, Georgia, New York, North Carolina, Texas & Washington

The post Colorado Bound appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Colorado Bound

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The 2020 Census confirms what we already know – Colorado is popular!

It turns out that many people have been Colorado-bound over the last 10 years.

Our state has grown by the equivalent of one Mile High Stadium’s-worth of people each year over the last 10 years.

Here are the numbers:

  • 2020 population is 5.77 million
  • 10-year population increase is 744,000
  • 10-year percentage increase is 14.8%
  • Colorado ranks 21st among all states for population
  • Only 5 states had a larger percentage increase over the last 10 years (Idaho, North Dakota, Nevada, Texas & Utah)

Only 8 states had a larger increase in population over the last 10 years (Arizona, California, Florida, Georgia, New York, North Carolina, Texas & Washington

The post Colorado Bound appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

7 Costly Mistakes in the Selling Process

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Sellers dream of a flawlessly executed home sale where everything goes smoothly, and they end up with a satisfied buyer. To achieve this ideal end goal, it’s important to be aware of the mistakes along the way that could potentially derail the sale. Mistakes in the selling process come in all sizes, but some can be more costly than others.

 

1. Incorrect Pricing

Simply put, sellers want to get the most value for their home. Inaccurately priced homes create complications in the selling process and can be costly. Overpriced homes are unable to compete with other homes in a more expensive bracket, reducing its appeal to buyers. The longer a home stays on the market, the more likely the seller will have to lower the price, and this could result in a final asking price that is well below what the home is worth. Underpricing can be used as a strategy to generate added interest among buyers and thereby drive up the home’s market value, but it requires that a bidding war take place among buyers.

 

2. Underestimating Selling Costs

There are many costs associated with selling a home that can easily pile up if not planned for. Commission fees take up a significant portion of selling costs, typically between five to six percent of the sale price. Sellers must budget for home inspections, making repairs, and staging the home to get it market-ready. During closing, sellers need to prepare for various costs including sales tax, attorney fees, and any fees related to the transfer of the title, and more. Not accounting for any of these costs can come as an unpleasant surprise.

 

3. Selling When Underwater

It may be tempting to think of selling a home solely as a revenue-generating event. However, if a seller still owes more on their mortgage than what their home is worth, or if the property has gone down in value, they still may not make enough money on the sale to pay off the mortgage. Any homeowner who finds themselves underwater on their mortgage should consider building more equity before they sell.

 

4. Selling FSBO

Selling a home “For Sale By Owner” (FSBO) presents sellers with the opportunity to save on commission fees but is a complex and risky process that can easily lead to serious costs. Not only does selling FSBO mean that the seller will incur all costs an agent would have taken on to market the home, but they are accepting added liability as well. If any mistake occurs during the offer process, negotiations, or closing, the seller finds themselves without the representation of an experienced professional. This leaves a great opportunity for costly mistakes that could potentially jeopardize the sale.

 

5. Failing to Disclose Repairs

If a seller fails to disclose any outstanding repairs and issues inherent in the home, they will likely come to light during the buyer’s inspection and can create a very costly situation for the seller. These losses can be avoided by being transparent about what repairs are needed ahead of time. Sellers can also opt to conduct a pre-listing inspection, which can be especially helpful in competitive markets. Disclosure rules vary by state.

 

6. Neglecting to Stage Your Home

Home staging is a critical element for getting the most value for a home and selling it quickly. By neglecting to stage, sellers are opening the door for lowered offers and reduced sale prices. The staging process is also the perfect time for sellers to inspect their home for any minor or cosmetic repairs that can be addressed quickly.

 

7. Not Choosing the Best Offer

Naturally, the highest offer received on a home may seem like the most enticing. But just because an offer may be higher than another doesn’t mean it’s the best one. It’s critical for sellers to communicate with their agent about the full terms of the offer to understand its contingencies, how it affects their bottom line, and how those components align with their needs and preferences.

 

If you’d like more information on selling your home and how to avoid costly mistakes, an experienced Windermere agent is ready to help. Click here to connect with an agent today.

The post 7 Costly Mistakes in the Selling Process appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

107 Straight

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According to research from the National Association of Realtors, home prices have appreciated for 107 straight months.

 

The median price in the U.S. is now $309,000.

 

The U.S. region with the highest median price is the West at $461,800. The lowest is in the South at $263,300.

 

All regions showed double-digit price appreciation from one year ago.

 

While prices are going up all across the U.S., inventory is going down. The number of properties for sale has declined for 20 straight months.

 

Low inventory and high demand are causing properties to sell quickly. It now takes an average of 21 days for a property to go under contract compared to 43 days one year ago.

 

So, the dynamics we notice locally are also occurring nationally.

The post 107 Straight appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

The Benefits of a Pre-Listing Inspection

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Pre-listing inspections can help sellers better understand the condition of their home before putting it on the market. They can also strengthen a home’s appeal to potential buyers and help to streamline the offer process, which is especially important in competitive markets. However, pre-listing inspections can also open sellers up to added liability. Talk to your Windermere agent to understand if conducting a pre-listing inspection is right for your home.

 

What is a Home Inspection?

Conducted by a licensed home inspector, a home inspection is a detailed review of the condition of a home and property. Inspectors examine everything from a home’s electrical work and sewage to its heating and cooling systems, searching for any evidence of damage or structural issues that may affect its value. By having your home inspected before you sell, you’ll have the chance to discover whether it needs any repairs or upgrades.

 

Pre-Listing Inspections

Pre-listing inspections not only help identify repairs, but they can also make the selling process more efficient. A pre-listing inspection discloses a home’s condition to buyers up front and gives them confidence that the seller is being transparent about any possible issues. This can save significant time for both buyers and sellers, especially in competitive markets where there are multiple offers on the table.

Something for sellers to keep in mind is that if a home in a competitive market does not provide a pre-inspection report, buyers may be hesitant to make an offer knowing the time it takes to perform an inspection and the fact that they are likely competing against several other buyers who are willing to waive this step.

 

The Benefits of a Pre-Listing Inspection

Home inspections give a good baseline of your home’s condition. The information gathered during this process is exactly the kind of in-depth knowledge that buyers want to know when considering placing an offer on a home.

Since buyers will know right away what repairs are needed, they can factor them into their initial offer, as opposed to discovering them during the inspection contingency and getting entangled in negotiations. Being forthcoming about your home also reduces the chances of an offer falling through and the buyer walking away.

An added benefit of a pre-listing inspection is that it helps your real estate agent more accurately price the home and enables them to market it with the knowledge that everything is being presented in the most transparent way possible.

 

If you have any questions about home inspections or any of the steps in the selling process, we’re happy to connect you with a Windermere agent here: Connect with an agent

The post The Benefits of a Pre-Listing Inspection appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Relocating for Remote Work

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As the ubiquity of working from home continues, many homeowners are making the decision to move. Whether the motivation for relocating is to lower the cost of living, to be closer to family, or simply a fresh start, there are various factors to keep in mind when relocating for remote work.

Before You Relocate

Before you make the jump to a new life in a new place, making time for some strategic planning will help ensure your relocation goes as smoothly as possible. A logical first step is to consider the financial impact of your move. Depending on your company’s policy, there may be adjustments to your pay when you relocate. If this is the case, factor in your pay change as you form your relocation budget. Research the cost of living in your new hometown to understand how a compensation adjustment may affect your home search and your lifestyle once you move.

If you are moving out of state, relocating could affect your benefits and your taxes as well. There’s a chance that your employer’s health insurance plan does not offer coverage in the state you’re moving to. Talk to your employer to discuss your options. Before moving out-of-state, find out whether the two states have a reciprocal tax agreement, especially if you’re moving between states that have differing income tax regulations.

Your New Home for Remote Work

Working remote has given homeowners the freedom to choose their desired location, unbound by a work commute, especially if their company has indicated that there are no clear signs of returning to in-person work anytime soon. Knowing your desired work environment will help to tailor your home search. If you’re looking for peace and quiet while you work, explore listings in rural areas. If the hubbub of city life is your idea of a comforting backdrop, direct your attention to metropolitan areas.

For the remote worker, it’s more important than ever that your home accommodates your working needs. As many homeowners have experienced throughout the pandemic, you spend a great deal of time in your home office, so finding the home with the best workspace for you should be a priority. If you desire a private area where you can focus, a home with an open floor plan may not be the best choice. Instead, you may want to look for homes with a separate bonus room or extra bedroom.

Once you’ve moved into your new home, it’s time to put together your home office. Whether your previous home office was a professionally curated environment or a makeshift workspace in the corner of a room, a new home means a fresh start for your remote work. Like many homeowners, by now you’ve likely got a solid grasp on what your ideal home office looks like. Keep those elements alive when you relocate and enjoy productive workdays in your new home.

The post Relocating for Remote Work appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Relocating for Remote Work

/in , , , , , , , , , , , , , , , /by

As the ubiquity of working from home continues, many homeowners are making the decision to move. Whether the motivation for relocating is to lower the cost of living, to be closer to family, or simply a fresh start, there are various factors to keep in mind when relocating for remote work.

Before You Relocate

Before you make the jump to a new life in a new place, making time for some strategic planning will help ensure your relocation goes as smoothly as possible. A logical first step is to consider the financial impact of your move. Depending on your company’s policy, there may be adjustments to your pay when you relocate. If this is the case, factor in your pay change as you form your relocation budget. Research the cost of living in your new hometown to understand how a compensation adjustment may affect your home search and your lifestyle once you move.

If you are moving out of state, relocating could affect your benefits and your taxes as well. There’s a chance that your employer’s health insurance plan does not offer coverage in the state you’re moving to. Talk to your employer to discuss your options. Before moving out-of-state, find out whether the two states have a reciprocal tax agreement, especially if you’re moving between states that have differing income tax regulations.

Your New Home for Remote Work

Working remote has given homeowners the freedom to choose their desired location, unbound by a work commute, especially if their company has indicated that there are no clear signs of returning to in-person work anytime soon. Knowing your desired work environment will help to tailor your home search. If you’re looking for peace and quiet while you work, explore listings in rural areas. If the hubbub of city life is your idea of a comforting backdrop, direct your attention to metropolitan areas.

For the remote worker, it’s more important than ever that your home accommodates your working needs. As many homeowners have experienced throughout the pandemic, you spend a great deal of time in your home office, so finding the home with the best workspace for you should be a priority. If you desire a private area where you can focus, a home with an open floor plan may not be the best choice. Instead, you may want to look for homes with a separate bonus room or extra bedroom.

Once you’ve moved into your new home, it’s time to put together your home office. Whether your previous home office was a professionally curated environment or a makeshift workspace in the corner of a room, a new home means a fresh start for your remote work. Like many homeowners, by now you’ve likely got a solid grasp on what your ideal home office looks like. Keep those elements alive when you relocate and enjoy productive workdays in your new home.

The post Relocating for Remote Work appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.