Is selling to 'your friend' a good thing?

Many homes are getting sold prior to officially going on the market these days.

It can happen for a variety of reasons. Some are outright sinister and unethical. Most are innocent.
As a general rule, you are always likely to get the very highest net price by fully exposing your home to the broadest possible market rather than having it viewed by only a selected buyer that you happen to know.

However, there can be very legitimate reasons why you'd want me to pre-promote your property and show it to some limited number of buyers prior to it officially hitting the market.

For more info on this and to read a sample scenario of this, CLICK HERE

Kindest Regards
Julie Reddington | ABR®, REALTOR ®,  Broker Associate | Colorado Home Realty |

(Mobile)    720-226-4168 |

Website    JulieReddingtonRealEstate.com 

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For Sale By Owner ??

The article, "5 Reasons You Shouldn't For Sale by Owner,"

makes some interesting points about the disadvantages that arise when an owner sells a house without the help of an agent. However, a couple comments are in order.

Like most articles we see on this topic, the author cites studies that show that houses sold directly by an owner typically sell for substantially less money -- exactly 20% less in this case. The study that allegedly shows this is not referenced.

  

While it is true that For-Sale-by-Owner (FSBO) houses sell for less money than those with an agent involved, the differential is not nearly that large. Our own in-house studies show that For Sales By Owner properties in metro Denver typically sell for prices that are 4% to 6% less than the sale prices of houses sold where an agent is involved.

  

This differential is substantial and significant. Most agents charge sellers a fee in that range. Bottom-line: It turns out that most owners that sell without an agent end up doing all the work themselves, but don't put any more money in their pocket for their effort.  They are out their time and don't have any more money to show for it.

  

One of the reasons that By Owner properties sell for less money is because of Items #2 and #3 in the article. Through Multiple Listing Services, networking with other agents and internet agreements, real estate agents get much more exposure for a given property. Increased exposure means greater likelihood of finding a better and more motivated buyer than is found with limited exposure as a For-Sale-by-Owner seller.

Be sure to read Item #1 in the article. It makes an excellent point that many By Owner property owners do not consider.

Buy a home today for maximum purchasing power

Those thinking of buying a home may want to get that done as soon as possible. Rising home prices along with rising interest rates are the two factors that are creating this urgency.According to most recently published statistics for the Metro Denver real estate market, residential mortgage rates have risen by approximately 1% on a 30 year fixed loan in the last 12 months and homes have appreciated in value by approximately 12%.

This means that a buyer purchasing a $300,000 home 12 months ago, would be paying $336,000 for the same home today and the interest rate at closing would be 1% higher.  The corresponding monthly payment will have increased by $146 per month, the buyer would have needed $7,200 extra in down payment and the additional amount of interest paid over the life of the loan is $73,535.

If the same trend continues, 12 months from now the same home will cost $376,320, the monthly payment will have increased $493 per month and the additional interest paid over the life of the loan will have increased to $166,342.

* Based on 12% appreciation rate** Total interest paid over 30 years

Colorado Home Realty (c)

The Myth of the Winter Slump

Here is a piece of conventional wisdom about real estate: It is slow in the winter. The holidays are busy. People are preoccupied with other things. No one is thinking about real estate.

 

Not so fast.

 

The stats tell a different story. If we look at the winter months of late December thru late March, it is not uncommon for 20% of the yearly sales to occur during this season versus the spring, summer and fall periods.

The supposed winter lull in real estate activity turns out to be more myth than reality. The truth is that each season of the year offers both opportunities and challenges. There is no perfect time to buy or sell and there is no time that is horrible either.

 

All of this is good news if you need to sell or buy a home in the next three months. You can be successful at wrapping up a winter real estate deal.

 

Let’s think about the situation for buyers first. While there are a lot of closings that happen during the winter selling season, it is true that there are fewer properties on the market during this time frame. It makes finding the place you want a little more problematic.

 

What can be different and favorable for buyers is that winter sellers tend to be serious and motivated. We don’t have a lot of discretionary sellers during the winter. Some sellers who have been overpriced make price adjustments and get very serious about consummating a sale. All things being equal, you can negotiate more aggressively.

 

The situation for sellers is not all that dissimilar. There are fewer buyers floating around but also fewer sellers with whom you must compete. In addition, the buyers that are active at this time of year are often people with deadlines. Something is driving them to take time during a busy season of the year to get out there and find a home. It is a good time of year for sellers to reevaluate just a bit and make a small price adjustment that will attract the attention of the serious buyers.

 

Myths die hard. The winter IS as good a time for doing real estate as any other time of year.

FHA lowering loan limits in Denver

Starting January 1, 2014, FHA are lowering the loan limits for single family homes in the Denver Metro area. The new loan limit is $391,000. This new loan limit applies to all loan pulled after 01/01/2014. If you are on the threshold of this, this will be a good time to get that house and locked into a loan !!!

Relocating to Denver ??

Considering relocating to Denver? Check out the video for more information

Fixer up properties in Denver

There are still some Fixer up properties to be had in Denver.

This is an example of great property located in the RiNo district in Denver.  Comps that were fixed up in the area were selling for $70k more that the sold price.

check out more here