Staying Productive While Staying Home – Painting

Have you been looking at that living room wall, that front door or maybe the entire house thinking to yourself, “If only I were home long enough to do these painting projects”? Is your home in need of some minor updating before you put it on the market? Well here is your chance! While we will be spending all our time at home over the next few weeks, potentially months, future sellers now have the time to complete their painting projects. Painting is a great return on investment when it comes to selling your home.

A clean look of fresh, neutral paint can make your house more appealing to a wide range of buyers. A good paint job helps show buyers that you care about your property and that it will serve them well in the years to come.

Home Depot remains open to accommodate those in need of essential items such as hot water heaters, refrigerators, cleaning supplies, electrical and plumbing repairs, and harsh weather items. They have processes in place to mitigate the spread of COVID-19 to its employees and visitors. Don’t want to go into the store? Call your local store and request pickup or options for delivery.

Painting is not only good for the sale of your home but will also lessen the feeling of “cabin fever” while you are staying productive while staying home.


Posted on March 26, 2020 at 3:30 pm
Justine Marx | Posted in Sellers | Tagged , , , , , , ,

COVID-19 – Mondays with Matthew

This Monday’s topics cover: 

– Economy Performance & Predictions by Quarter
– Unemployment Rates
– Need for Economic Stimulation


Posted on March 23, 2020 at 7:36 pm
Justine Marx | Posted in Economics | Tagged , , , ,

Mortgage Interest Rates – What Difference Does It Make

A 1% decrease in Mortgage Interest Rates can provide significant savings to your monthly and annual mortgage payments.

Let’s use an example:

Purchase Price: $300,000

Loan Terms:

  • 30 Year Conventional
  • 20% Down
  • Fixed Rate:
    • 5% – Monthly Principal & Interest = $1,288
    • 4% – Monthly Principal & Interest = $1,145
          •   Est Savings = $143 per month, $1,700 per year

 

Just a 1% increase added about $143 to this buyers monthly P&I and a little over $1,700 to the annual P&I. So there is a difference; a big difference. This example is calculated with a 20% down payment. If we adjust that to a lower down payment, say 5%, there is larger savings to be had per month as the buyer is leveraging more on the loan.

 

Purchase Price: $300,000

Loan Terms:

  • 30 Year Conventional
  • 5% Down
  • Fixed Rate:
    • 5% – Monthly Principal & Interest = $1,530
    • 4% – Monthly Principal & Interest = $1,360

   Est Savings = $170 per month , $2,040 per year

 

Engage or re-engage with a lender to understand how these low interest rates can make home ownership more achievable.


Posted on March 19, 2020 at 8:46 pm
Justine Marx | Posted in Buyers, WHO LOVES STATS, Windsor Real Estate | Tagged , ,

COVID-19 & The National Housing Market

 

How will COVID-19 impact the national housing market? 

Take-aways from Chief Economist, Matthew Gardner

Housing Market

  • Expect a 10% -15% contraction in the number of home sales for 2020 
  • Contraction is anticipated to be brief and pick back up quickly
  • Qualification and financing is going to more achievable than ever
  • Low supply in new construction, but households are still being created which puts upward price pressure on housing stock

Buyers

  • Mortgage Interest Rates continue to remain extremely low and are expected to remain low
  • Buyers are influenced by the economy and with 70% of the US economy being influenced by consumption and the stock market declining, buyers concerns of job security arise and the option to obtain a down payment from selling stocks is limited
  • Take Action: Buyers, look for lending options that offer achievable money down and doesn’t create a risk for leveraging stocks or completely deplete savings during this uncertain time. Leverage the low interest rates while they last and understand how a decline in interest rates can significantly change your monthly mortgage, making home ownership more achievable in the long term.

Sellers

  • Inventory may drop as, depending on market, sellers may be hesitant to list
  • Sellers may be cautious to open their home to potential buyers
  • Take Action: Discuss virtual safe tours with your agent to keep your listings moving and buyers looking.

Recession

  • Will we experience a recession in 2020? Yes, if the economy continues to see a shirk through Q3.
  • How long will it last? Because there is nothing systemically wrong with the market, if a recession occurs, it will be a short term impact.
  • The economy is expected to recover and to be much healthier than in the second half of 2020 than what is experienced in the first half.
  • Note – A recession is two or more quarters during which the economy shrinks.

 

Most importantly! Order take-out, get coffee to-go, buy gift cards and find every opportunity to continue to support your small businesses and stimulate the overall economy. Action now will lessens the impact when we fully recover from COVID-19.


Posted on March 17, 2020 at 7:15 pm
Justine Marx | Posted in Buyers, Buyers & Sellers, Investors, Sellers | Tagged , , , , , ,

St. Patrick’s Day – Crowds, Solitude and The Coronavirus

Have your annual St. Paddy’s Day celebration plans with friends and family and maybe hundreds or thousands of other people now changed due to the COVID-19? I know mine have. In an effort to slow the spread of this disease and to protect others, most of us have chosen to opt out of celebrating the holiday with large groups of people. Not only has the St. Patrick’s Day parades been canceled, but there has been a complete halt to a lot communal events and activities; such as children’s sports, public sporting events, going out to restaurants, family gatherings, etc. So what are we to do with ourselves in this time of expected solitude. There is so much more than locking ourselves in a house full of toilet paper and Lysol mist.

 

Go for a hike, it might be a chilly one, but nature will not infect you and unless you’re high-fiving or allowing yourself to be sneezed on other hikers you should be able to avoid the risk. Don’t want to brace the chilly weather? Go for a drive through the Rockies! Throw on your favorite St. Paddy’s Day t-shirt, load up a couple of healthy friends, pack a lunch, and spend the day viewing the beautiful Colorado scenery. Invite your friends over to wash their hands for 20 seconds with soap and water, hose them down with antibacterial chemical spray, serve the green beer, and enjoy each other’s company over a game of cards. My point is, don’t torture yourself with locking yourself inside away from others, continue to interact while still being thoughtful to the purpose of trying to control something that may not directly affect you, but may affect your loved ones. Respect the greater cause while still being a happy lad.

 

Wishing you all a HAPPY, SAFE, & HEALTHY St. Patrick’s Day!


Posted on March 13, 2020 at 3:16 pm
Justine Marx | Posted in Uncategorized | Tagged , , , ,

A History Lesson

 

With the stock market on a wild ride and the Dow Jones dropping nearly 1,000 points last week, it makes some people wonder if the local real estate market might also crash or at least “correct.”

A little history lesson on the Front Range real estate market is in order. 

 

  • In the last 40 years average appreciation per year has been 5.5% 
  • Highest appreciation in a single year was 15.9% in 1994
  • Lowest appreciation rate in a single year was -4.0% in 1982
  • In 2008 Wall Street was in turmoil, the stock market plummeted and the Dow Jones dropped 33.8%. Meanwhile real estate along the Front Range dropped only 2.2%.

 

Bottom line, the Front Range market has no history of crashing or even experiencing a major correction.

Why is that?

The answer is fundamentals.

Our local economy has inherent fundamentals that insulate it from big downturns. 

We have an incredibly diverse economy which is not reliant upon a single industry.  We have all the way from health care, to technology, agriculture, oil and gas, major universities, and financial services (just to name a few).

We are a global destination with a major international airport.

Oh, and the quality of life here isn’t too shabby.

Prices of real estate, just like prices of anything, come down to basic economic principles of supply and demand.

Because of our diverse economy and desirable quality of life, there has been strong, consistent demand for housing along the Front Range.

While there may be little bumps along the way, over the long term our market has proven that it performs.


Posted on March 11, 2020 at 3:19 pm
Justine Marx | Posted in Economics, Sellers, WHO LOVES STATS | Tagged , , , ,

Furry Friends Love Colorado!   

Colorado ranks at the top in pet-friendly states alongside Maine, Virginia, Arizona, and Oklahoma. Filled with dog parks and pet-focused businesses, such as doggy daycare, puppy spas, and canine hotels, Colorado really knows how to socialize and spoil our furry friends. As developers build new communities and architects design new homes and businesses, our four-legged family members’ lifestyles are considered and planned for. “Puppers” are included in our everyday lives in Colorado. There isn’t a brewery that doesn’t allow the human and dog duo to enjoy a beer in each other’s company or a new community that doesn’t have a space for dogs to run and exercise.  

Colorado’s outdoor lifestyle is a dog’s dream. As most Coloradans know, there is no better pair than you and a four-legged companion to joyfully lead the way on a Rocky Mountain hike. With endless trails, rivers, and lakes Colorado is heaven on earth for our residents and visitors.  

These are a few reasons why Colorado is one of the best places for you and your dog, but there is so much more that goes into a state’s pet-friendly ranking than just dog parks to pet-friendly housing. Safewise sat down and looked at information from the Bureau of Labor, the Animal Legal Defense Fund, and other online pet-related resources. They specifically looked for high-percentages of no-kill shelters, strict anti-cruelty laws, pet-friendly public areas like dog-friendly restaurants and off-leash dog parks, and housing restrictions to compile a list of the top 10 most dog-friendly states in the country. It is an honor to have Colorado be part of such a list. So, if dogs are part of your family or you simply want to be surrounded by them, Colorado is the state for you.  


Posted on March 6, 2020 at 7:25 pm
Justine Marx | Posted in Uncategorized | Tagged , , , ,

March 2020 Market Update

 

Okay, Northern Colorado its time for your monthly March Market Update! There is a HUGE benefit for buyers in today’s market with interest rates being below 4% or even lower in some cases. Take advantage of this insanely low interest rate so you can start taking advantage of this appreciating market.

Average Single Family Home January 2020 Price Breakdown:

Larimer County:

  • Fort Collins: $479,292 +4.6
  • Loveland: $459,397 +11%

Weld Country:

  • Windsor: $438,102 +0.9%
  • Severance: $384,344 +2.4%
  • Greeley: $334,754 +5.7%

Call me today to get updates on your specific neighborhood or city.


Posted on March 4, 2020 at 9:44 pm
Justine Marx | Posted in Buyers & Sellers, Colorado Real Estate Market, WHO LOVES STATS | Tagged , , , , , ,

When To Sell An Investment Property

 

Common and urgent reasons to unload your investment property:

 

If Real Estate Is Too Much of Your Net Worth

Experts recommend holding investments in at least three or four different asset classes, with a roughly equal portion of your value in each class. If real estate is more than half your net worth, you might want to consider diversifying.

If Long Term Tenants Move Out

Long-term tenants don’t always a allow for continual upkeep on your rental. If your tenants move on, and the market looks strong, you might want list your rental in place of exhaustively upgrading.

Increase in Property Taxes

A times, property taxes go up right alongside home values, sometimes even outpacing them. When property taxes increase, landlords have to pay them out of their rental income, so either their profits go down, or they’ll increase rents to make up the lost revenue. In either case, the situation can get complicated; higher rents mean a smaller tenant pool to draw from, and smaller profits means, well, less money. Only a few successive property tax hikes can make an investment property financially unfeasible.

Reset the Depreciation Clock

Depreciation can play a big part in an investor’s financial strategy. When properties no longer offer any potential depreciation, it’s time to sell, and buy newer properties, thus resetting the depreciation clock.

Seller’s Market

If you’re a short-term investor or have reached the financial capacity of your property, leverage a favorable seller’s market to get the highest return. Work with a knowledgeable real estate broker that understands the local market and its trends, so you know when the best time is to sell.

A Bigger, Better Opportunity Presents Itself

If you’re looking to turn your present investment into a larger one, a 1031 exchange is a valuable tool. The 1031 essentially lets you trade one property for another, a more valuable one, while temporarily deferring capital gains taxes.

An investor can exchange a small duplex for a larger six-unit property, using a 1031 exchange, and then flip that six-unit property for a full apartment building with another 1031 exchange, and defer capital gains from all the transactions. Since capital gains taxes can take a huge bite out of your profits when you sell, being able to delay this tax bill, potentially indefinitely, is incredibly valuable.

This article is highlights from Thomas O’Shaughnessy article, How to Know When It’s Time to Sell Your Property and Buy Another.

 

 


Posted on March 2, 2020 at 8:20 pm
Justine Marx | Posted in Investors, Renters, Sellers | Tagged , , , , , , ,

Lovely Stats

  • Prices are up 3.5% compared to last year
  • Inventory is up 10% which means there is more selection for buyers
  • We just had the most active January in terms of closings in over 10 years
  • Well over 13,000 residential properties representing $5.4 Billion of volume has sold in the last 12 months

If you would like to see a video recap of our annual Market Forecast you can watch that HERE.


Posted on February 14, 2020 at 4:47 pm
Justine Marx | Posted in Buyers & Sellers, Colorado Real Estate Market, WHO LOVES STATS, Windsor Real Estate | Tagged , , , , ,