Colorado Real Estate News

Selling Your Home During the Holiday Season

Shh … we have a little secret! Did you know that the last couple months of the year are an underrated time to sell your home? Yes, we know what you’re thinking: it might be a bad time to sell since most everyone will be busy traveling and preparing for the holiday season, but it can actually work to your advantage. If you’re hesitant about selling your home in the winter weather, maybe these arguments will convince you:

1. Buyers are serious. Due to sudden changes in circumstances, like a new job or wanting to be closer to family before the holidays begin, people are willing to put down money for a home ASAP.

2. The real estate inventory is significantly lower. With less competition, your home can be sold for a higher price and quicker than when the housing market is in higher demand in the spring. Your real estate agent may also be more available since there aren’t as many other prospective homebuyers. You can also hold more showing times because buyers are more likely to be on vacation.

3. There’s nothing like walking into a warm and inviting house after coming in from the cold. A welcoming home allows homebuyers to picture themselves in the space. Invoking this emotional response in a buyer will give them that extra push to pull out their pen and sign the closing documents.

4. End-of-year tax breaks are an added benefit for purchasing a home before December 31st. Those buying a home in the winter can deduct mortgage interest, property taxes and interest costs by closing the sale before the year ends.

5. Decorating the interior and exterior of your home can also contribute to successfully selling your home during the winter. But err on the side of caution when decorating; too many baubles and things can distract buyers from the key points of your home. Highlight areas like fireplaces and living rooms to bring warmth to the space.

Though most home sales happen when the weather outside is less … frightful, the fireplaces inside the houses on the winter market are … delightful! You don’t need to wait for the sunshine to sell. For more advice on how to sell or purchase a home this season, contact us today at kentwood.com.

Colorado Real Estate News

Northern Colorado Market Trends

The Frenzy for Attached Homes Slows in October

It’s becoming more and more clear that Northern Coloradans are growing weary of the hectic homebuying scramble, especially for attached properties.

Average Days on Market in October Increased Year-over-Year for All of Northern Colorado’s Attached Housing Markets Except Fort Collins and Timnath
Timnath didn’t have any closed sales while Berthoud’s attached market experienced a 604.65% increase from 43 days in 2020 to 303 days in 2021, and its detached housing market experienced a 3.37% increase from 89 to 92 days. During September 2021, only Boulder’s attached market experienced a year-over-year increase in average days on market.

Home Sales Decline in Northern Colorado

Closed sales were down year-over-year across all of northern Colorado, with Timanth’s attached market taking the lead down 100% from 7 sales to 0, and its detached market was in second place with a decrease of 80.85% from 47 days to 9.

Average Home Sale Price Increases Across Northern Colorado

Despite fewer homes selling, average sales prices have increased year-over-year across all of northern Colorado (with the exception of Timnath’s attached market). Berthoud’s attached market saw the largest year-over-year increase in average sales price of 92.39% from $309,800 to $596,017. Berthoud’s detached housing market experienced the second-largest increase in average sales price of 29.43%, from $544,798 to $705,141. Berthoud’s homes are taking longer to sell, and fewer of them are selling, but they are not going cheaply.

Timnath’s detached market saw the smallest year-over-year increase in average sale price of 7.15% from $695,271 to $744,959. Buyers need to act fast if they want to enjoy the lowest price increase in Timnath, as average days on market for detached homes dropped 48.25% from 91 days in 2020 to 47 in 2021.

Colorado Real Estate News

How to Successfully Navigate a Short Sale

Short Sale | Real EstateSelling a home for less than the amount the current owner owes on the property is called a short sale. Buying a home that is a short sale is different from buying a property that is actually owned by the bank, known as an REO, or real-estate owned property, or a property that is in foreclosure. Everyone shopping for a new home needs to understand how to navigate a short sale in today’s marketplace. Following is some advice from the National Association of Realtors.

Be prepared for a lengthy waiting period. Even if you’re well organized and have all the documents in place, short sales can still be a long process. Waiting for your lender’s review of the short sale package can take several weeks or even months. The length varies by lender and location, but these benchmarks can put your situation in perspective.

  •  If you have only one mortgage, the review takes about two months.
  • If you have a first and second mortgage with the same lender, the review can take about three months.
  • With two or more mortgages with different lenders, it can take four months or longer.

Your real estate professional and attorney, with your authorization, can work with your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along. When the bank does respond, it can approve the short sale, make a counter offer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. Don’t expect a short sale to solve your financial problems. Here are post-short sale conditions to keep in mind:

  • Your lender may ask you to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale.  If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.
  • Any amount of your mortgage that is forgiven by your lender may be considered income, and you may have to pay taxes on that amount.
  • Having a portion of your debt forgiven may have an adverse effect on your credit score.  However, a short sale will generally affect your credit score less severely than foreclosure or bankruptcy.

If you are considering a short sale or buying a short sale property, consult with your Kentwood Real Estate professional.