Myths and Truths About Millennial Home Buyers

In recent years there has been a lot written about millennials and their impact on the housing market. Because of this, there are also a lot of misconceptions about what this generation wants from a home. To start, it’s important to know that there are more than 71 millennials, which are defined as those aged 22-37. They also represent 34 percent of all home buyers which makes them tremendously important to the real estate market. We were curious if what we’ve read about millennial home buying habits is true and here’s what we found.

Simple, Functional, Minimal Maintenance

Millennials do not appear to be drawn to fixer uppers in the same way as prior generations. They want something that is “move-in” ready with minimal maintenance. They also value simplicity and function over extravagance which means they’re drawn to spaces that serve dual purposes and furniture that doubles as storage. The old adage “less is more” takes on new meaning for millennial buyers.

Location

Similar to older generations, millennials place a great deal of importance on location. The convenience to their job, friends, family, entertainment, and shopping is a must. But the rumor out there that they only want to live in city dwellings is a myth. Millennials are getting older and starting to have families, so like prior generations, many of them are moving away from the hustle and bustle of the city and into nearby neighborhoods with good schools and family-friendly amenities.

Digitally Engaged

Millennials have grown up surrounded by technology, so smart home technology is a high priority for these buyers. And they’re willing to pay more for it: a survey conducted by Wakefield Research states that millennials are willing to pay a 20 percent premium for smart home technology, such as voice assisted devices, smart phone-controlled security systems, electronic door locks, and doorbell cameras.

Experience over Luxuries

One of the main things we’ve learned about millennials is that they are not prone to conformity. They’re a practical bunch who places a very high priority on experiences and quality of life. Studies show that millennials would rather have discretionary income to pay for things like healthy food, gym memberships, and international travel than blowing their budget on an expensive home. In other words, they’re happy with a modest space so they have money left to spend on their quality of life.

In the end, millennial buyers aren’t that different from prior generations. They’re clearly a pragmatic group that sees their home more as a functional space than a symbol of their success. Technology definitely plays a far greater role for them than their baby boomer parents, but ultimately they still want a home in a nice neighborhood with good schools and access to friends, family, and nearby amenities.

Posted on June 13, 2019 at 8:00 am
Jon Holsten | Category: Buying, Housing Trends | Tagged , , , , , ,

12 Tips for Making Your Bedroom Cozier

 

At the end of a long day, your bedroom should be a sanctuary of comfort that welcomes you in. But, as a room that guests rarely see and in which homeowners spend most of their time with their eyes closed, its upkeep frequently gets pushed to the bottom of the to-do list. Thankfully, there are some little design tricks that can make a big difference. Turn your bedroom into a restful retreat when you up its coziness factor with a few of these easy ideas.

  1. Layer textures. Sheepskin rugs, a down comforter, plush pillows and knit blankets can add a softness to the room that will make you want to sink right in. Lift these textures upward, with a canopy, tufted headboard, billowy curtains and hanging textiles (like a weaving) so even the walls and ceiling feel snuggly.
  2. Pick the right paint. Dark, saturated colors make a room feel like it’s embracing you, which is ideal for setting a sleepy environment. But if you’re nervous to commit to a dark color on the wall, choose a pale dusty blue, sage green or another light natural color for a soothing tone (just steer clear of energetic hues). Have you ever wanted to sleep on a cloud? Go with all-white paint and decor which makes even a basic bedroom feel soft and spa-like.
  3. Personalize it with reminders of the places and things that make you feel at home. Do you have a fondness for flowers? Bring floral patterns in on your textiles. Do you dream of vacation at the lake? Frame a photo of your favorite spot! Photos or paintings of uncluttered natural landscapes—like a sunset reflecting on water or a hammock under the shade of an oak—can rekindle memories of relaxation and are perfect for creating a sense of calm.
  4. Add mood lighting. Soften the light to mimic dusk for an intimate mood with dimmer switches, lamps, lanterns or even string lights. Just make sure you can reach the switch from bed, so you don’t have to disturb your peace to get up and turn it off when you’re ready to roll over and fall asleep.
  5. Skip metallic finishes. Choose warm natural decor options like wood and fabric instead of cold, manufactured metallics. This goes for everything from your bedroom furniture to window treatments. Faux wood blinds, especially when paired with floating curtains, fit with a cozy aesthetic and let you filter out harsh sunlight and maintain privacy for a truly sheltered slumber.
  6. Bring on the books! Stacks of good reads invite you to snuggle in and get lost in another world. A true retreat is a room with plenty of books that begs you to stay.
  7. Fix up—or fake—a fireplace. If your bed sits hearthside, embrace this romantic accent with styled logs and a decorated mantle. If you don’t have such a luxury, create a faux fireplace to add comfort and warmth through your décor: Arrange oversized candles and lanterns safely within a homemade hearth to bring in that cozy fireside feeling without changing the structure of your home.
  8. Keep the room uncluttered. When you want to settle in, a mess distracts you from finding comfort, so minimize the amount of stuff that makes it to your bedroom. Watch your nightstand, which often becomes a catch-all, by making a point to rehome any wandering wares now, and put things away as soon as they enter the room in the future. If you’re apt to let laundry pile up, keep it behind the closed doors of your closet so it doesn’t crowd your peace.
  9. Create a sense of timelessness. Tuck clocks and electronics away so they’re nearby if you need them, but their wires and harsh silhouettes aren’t reminding you of life outside your sanctuary. The hush that falls in a room devoid of gadgets will allow you to easily disengage from the stresses of reality.
  10. Rethink your bedding. Add a pillow-top pad to your mattress so it feels like your bed is hugging you when you climb in. Or, bring in a contoured body pillow which actually can hug you! Linen sheets feel luxe compared to cotton and are a simple swap to boost your bower. Many people also swear by skipping the top sheet while dressing their beds, which allows them to burrow directly into a fluffy comforter.
  11. Appeal to your sense of smell. Aromatherapy can have a huge impact on your perception of a space, so find some soothing essential oils or a sweet candle to blanket the room with an ambiance you adore. As soon as you open the door, you’ll be eager to plunge into your little oasis.
  12. Nestle into nooks. A window seat, a reading nook or an upholstered seating area are all inviting spaces that can draw you in from the doorway. The more intimate alcoves you can create, the cozier your bedroom will feel!

Flooded with soft lighting, plush textures and other comfy touches, your bedroom environment will envelope you at day’s end. And, perhaps even better than the idea of your bedroom refresh itself, is knowing that none of these tips take longer than a weekend to complete! So, slide into your slippers as you settle on which cozy updates you’ll select for your new favorite room of the house.

Posted on June 12, 2019 at 8:00 am
Jon Holsten | Category: Home Maintenance, Housing Trends | Tagged , , , , ,

83 Miles Per Hour

Pretend you have been driving on the Interstate at 100 miles per hour.

Also, pretend you have been doing that for a long time.

Now pretend you slow down to 83 miles per hour.

How would that feel?

It would probably feel slow, right?

83 miles per hour is a 17% decrease from 100. It may feel slow, but it’s still pretty fast.

How does this relate to real estate?

Well, the market has been moving fast for a long time.

It’s been going 100 miles per hour for at least two years (some would argue even longer).

We’ve recently seen a 17% change in terms of number of transactions that are occurring.

There were 17% fewer sales in October 2018 versus October 2017 in Metro Denver.

It feels slow because we’ve been driving so fast for so long. But, our market is still moving.

For example, prices are still up. So, remember, that it’s all relative.

Posted on June 11, 2019 at 8:00 am
Jon Holsten | Category: Buying, Fort Collins Real Estate, Housing Trends, Northern Colorado Real Estate, Selling | Tagged , , , , ,

5 Dangers of Overpricing a Home

It is still a great time to be a seller, but in much of the Western U.S., the local real estate market has begun to soften. With significant increases in inventory, buyers now have more choices and less sense of urgency. If you are thinking about selling your home, pricing it correctly the first time is critical. Here’s why:

  1. If you overprice your home, it won’t show up in some search results.

    Buyers search for homes using the parameters they desire. Price range is one of the most critical. If you set an unrealistic price of $850,000 for your home, all the buyers searching for homes up to $825,000 will fail to see your property in their search results.

  2. An overpriced home attracts the wrong buyer.

    An overpriced home will not compare favorably with the realistically-valued homes in a buyer’s price bracket. If your home is missing the amenities, square footage or other features of homes within the price range you’ve placed it in it won’t sell.

  3. Overpriced homes linger on the market and risk becoming “stale”.

    The interest in a home is always highest when the listing first hits the market. When an overpriced home goes unsold for a long period of time buyers often wonder what is wrong with the property. When a buyer moves on from a listing they rarely come back, even if you drop the price.

  4. You run the risk of getting less for your home than if you priced it correctly the first time.

    A Zillow study showed that homes that linger on the market tend to sell for significantly less than their listing price. When a home sits on the market for an extended period of time, buyers feel they have lots of room to negotiate.

  5. The longer your home remains on the market, the more expenses you incur.

    Every month your home goes unsold you put out money for mortgage payments, utilities and other home expenses that you will never recover.

Setting a realistic price for your home from the start is critical. If you’re thinking of selling, our highly trained experts at Windermere Real Estate can provide you with a comprehensive pricing analysis based on current market conditions.

Posted on June 7, 2019 at 8:00 am
Jon Holsten | Category: Housing Trends, Northern Colorado Real Estate, Selling | Tagged , , , ,

Here’s Your Spring Maintenance Checklist

Posted in Living by Kenady Swan 

 

Now that spring has sprung, let’s clear the cobwebs and get your home ready! Here is our quick guide to spring home maintenance:

 

Inspection top to bottom: Now that the weather is temperate you will want to check on how your home weathered the winter. Check the roof for leaks, the gutters for damage, and the siding for cracks. You will also want to inspect your basement or foundation for any shifts. Make repairs now to prevent further damage.

 

Clean out the gutters: April showers bring May flowers… so clear out the gutters to keep rain from pooling on your roof or near your foundation.

 

Pest control: Spring is mating season for eight-legged critters, so sweep out cobwebs, clear debris, and check the nooks and crannies. If you live in an area prone to dangerous species like brown recluse or black widows, you may want to contact your local pest control, but otherwise, household spiders do help eliminate other bugs.

 

HVAC system: If you have an air conditioner now is the time to check to make sure it is ready before summer gets here and everyone else is clamoring for maintenance. Now is a good time to check your home air filters and replace or upgrade to keep allergens at bay.

 

Clear the clutter: Do a sweep around the house and get rid of junk that you don’t use! Take a little time each week to tackle a room. Closets, playrooms, and basements can be especially daunting, but getting rid of old stuff and refreshing your space will go a long way!

 

Deep clean: On a nice day open the windows, dust, wipe, scrub, and clean. You will get a nice workout and your home will look and feel so fresh after a winter of being cooped up.

 

Update your décor: Add a splash of color to your home with small embellishments. Add a colorful vase, a lighter throw for your sofa, pretty pastel pillows, or spring-time candles, to upgrade your living space.

 

Take it outdoors: Let your throw rugs, curtains, and other tapestries air our outside. Shake off the dust, spot clean what you can and let everything bask in the sun for an afternoon.

 

Don’t forget the back yard: It may not be time to start up the grill, yet, but you can get started on your outdoor entertaining checklist. Check your lawn, and if you have some spare spots start filling in with seed. Check your outdoor plants, prune, plant bulbs, start to replenish the soil for your garden, and mow, so you are ready to start when the season allows.

Speaking of the grill – if you have a gas grill you will want to pull this out and perform a maintenance check. Clean everything up and check to make sure all the gas lines are clear, as these can get clogged after sitting idle all winter. Make sure the grill is clear of spiders too, as they can build webs in the tubes, causing damage to your grill. You can start to bring out your garden furniture too, or clean it up if you left it covered outside all winter. Because before you know it, it’ll be barbeque season!

Posted on June 6, 2019 at 8:00 am
Jon Holsten | Category: Home Maintenance, Housing Trends, Landscape, Northern Colorado Real Estate, Windermere Real Estate | Tagged , , , , , , , , , , ,

The Risks, Rewards, and Benefits of Owning Rental Property

PiggyBankSavings

One area of the real estate market that is thriving right now is rental property. In the first quarter of this year, landlords and property managers across the country rented more apartments and homes than they have during the first quarters of the past ten years. And according to the Wall Street Journal, the amount that renters are willing to pay has also jumped to a nationwide average of $991 per month.

All indications suggest that the rental market will continue to improve because of the combination of low vacancy rates and rising rents. In fact, the demand for rentals is predicted to far exceed supply through 2015, with some 4.5 million new renters expected to enter the market in the next five years.

What to consider before buying a rental
Being a landlord has its challenges. The recession took a toll on rental prices for a few years and any future economic downturns could do the same. Once the job market returns to normal, there’s a strong possibility that more people will choose to move from rentals into homes of their own. And the demand for rental properties could become oversaturated at some point, resulting in an investment bubble of its own.

What’s more, while the income from a rental property can be significant, it can take at least five years before you’re making much more than what you need just to cover the mortgage and expenses. In other words, the return on your investment doesn’t happen overnight.

However, in the long run, if you select the right property, it could turn out to be one of your best investment decisions ever—especially since rental real estate provides more tax benefits than almost any other investment.

Tax deductions for the taking
One of the great things about owning rental properties is the fact that you’re able to deduct so many of the associated expenses—including a sizable portion of your monthly mortgage payment.

The commissions and fees paid to obtain your mortgage are not deductible, but the mortgage interest you pay each month is—including any money you pay into an escrow account to cover taxes and insurance. Whatever your mortgage company reports as interest on your 1098 form at the end of each year can likely be deducted.

For example, you may be eligible to deduct credit card interest “for goods and services used in a rental activity,” repairs made to the building, travel related to your rental, expenses related to a home office or workshop devoted to your rental, the wages of anyone you hire to work on the building, damages to your rental property, associated insurance premiums, and fees you pay for legal and professional services. However, as is the case with any transaction of this type, be sure to consult your attorney or accountant for detailed tax information.

What to look for
As with any real estate investment, the location of the property and its overall condition are both key. But with rental properties, there are some other factors you’ll also want to consider:

 Utilities: Look for a building with separate utilities (water, electric, and gas, etc.) for each rental unit. This will make it far easier to legally charge for the fair use of what can be a very costly monthly expense.

 Competition: If your property is one of the few rentals in the neighborhood, there will be less competition for interested renters.

 Transportation: Rentals that are near popular public transportation options and / or major freeways (without being so close that noise is an issue) are usually easier to rent—and demand more money.

 Landscaping: Properties with small yards and fewer plantings are far easier and less expensive to manage.

 Off-street parking: Not only is off-street parking a desirable feature (people with nice cars usually don’t like to park on the street), it’s also a requirement for rental properties in some communities.

How to start your search
Unlike homes, rental properties do not typically have a visible ‘for-sale’ sign standing out front (as landlords don’t want to irritate, bring attention to their current renters, or turn off any prospective renters). Therefore, if you are interested in a rental property, your best option is to schedule an appointment with your real estate agent/broker to discuss your investment goals and identify what opportunities currently exist in your market place.

Posted on June 4, 2019 at 8:00 am
Jon Holsten | Category: Buying, Fort Collins Real Estate, Housing Trends, Loveland Real Estate, Northern Colorado Real Estate, Timnath Real Estate, Wellington Real Estate, Windermere Real Estate, Windsor Real Estate | Tagged , , , , , , , , , ,

Avoiding the Pitfalls of Home Addition Construction

Posted in Architecture by John Trupin 

When dissatisfaction with your current home strikes, it can be exciting to launch into a plan for a new addition. A new living room, bedroom, or more can add value to your home while improving your quality of life.

On the other hand, even a modest addition can turn into a major construction project, with architects and contractors to manage, construction workers traipsing through your home, hammers pounding, and sawdust everywhere. And although new additions can be a very good investment, the cost-per-square-foot is typically more than building a new home, and much more than buying a larger existing home.

 

Define your needs

To determine if an addition makes sense for your particular situation, start by defining exactly what it is you want and need. By focusing on core needs, you won’t get carried away with a wish list that can push the project out of reach financially.

If it’s a matter of needing more space, be specific. For example, instead of just jotting down “more kitchen space,” figure out just how much more space is going to make the difference, e.g., “150 square feet of floor space and six additional feet of counter space.”

If the addition will be for aging parents, consult with their doctors or an age-in-place expert to define exactly what they’ll require for living conditions, both now and over the next five to ten years.

 

Types of additions

Bump-out addition—“Bumping out” one or more walls to make a first-floor room slightly larger is something most homeowners think about at one time or another. However, when you consider the work required, and the limited amount of space created, it often figures to be one of your most expensive approaches.

First-floor addition—Adding a whole new room (or rooms) to the first floor of your home is one of the most common ways to add a family room, apartment or sunroom. But this approach can also take away yard space.

Dormer addition—For homes with steep rooflines, adding an upper floor dormer may be all that’s needed to transform an awkward space with limited headroom. The cost is affordable and, when done well, a dormer can also improve the curb-appeal of your house.

Second-story addition—For homes without an upper floor, adding a second story can double the size of the house without reducing surrounding yard space.

 

Garage addition—Building above the garage is ideal for a space that requires more privacy, such as a rentable apartment, a teen’s bedroom, guest bedroom, guest quarters, or a family bonus room.

 

Permits required

You’ll need a building permit to construct an addition—which will require professional blueprints. Your local building department will not only want to make sure that the addition adheres to the latest building codes, but also ensure it isn’t too tall for the neighborhood or positioned too close to the property line. Some building departments will also want to ask your neighbors for their input before giving you the go-ahead.

 

Requirements for a legal apartment

While the idea of having a renter that provides an additional stream of revenue may be enticing, the realities of building and renting a legal add-on apartment can be sobering. Among the things you’ll need to consider:

  • Special permitting—Some communities don’t like the idea of “mother-in-law” units and therefore have regulations against it or zone-approval requirements.
  • Separate utilities—In many cities, you can’t charge a tenant for heat, electricity, and water unless utilities are separated from the rest of the house (and separately controlled by the tenant).
  • ADU Requirements—When building an “accessory dwelling unit” (the formal name for a second dwelling located on a property where a primary residence already exists), building codes often contain special requirements regarding emergency exists, windows, ceiling height, off-street parking spaces, the location of main entrances, the number of bedrooms, and more.

In addition, renters have special rights while landlords have added responsibilities. You’ll need to learn those rights and responsibilities and be prepared to adhere to them.

 

Average costs

The cost to construct an addition depends on a wide variety of factors, such as the quality of materials used, the laborers doing the work, the type of addition and its size, the age of your house and its current condition. For ballpark purposes, however, you can figure on spending about $200 per square foot if your home is located in a more expensive real estate area or about $100 per foot in a lower-priced market.

You might be wondering how much of that money your efforts might return if you were to sell the home a couple years later? The answer to that question depends on the aforementioned details, but the average “recoup” rate for a family room addition is typically more than 80 percent.

 

The bottom line

While you should certainly research the existing-home marketplace before hiring an architect to map out the plans, building an addition onto your current home can be a great way to expand your living quarters, customize your home, and remain in the same neighborhood.

Posted on June 3, 2019 at 8:00 am
Jon Holsten | Category: Home Maintenance, Housing Trends, Northern Colorado Real Estate, Windermere Real Estate | Tagged , , , , , , , , ,

Get Real

We’ve seen some headlines recently that suggest home prices along the Front Range have peaked and are starting to decline.

When we dig in and do the research, this is what we find…

Home prices are still going up, just not as fast as they have been.

We’ve known that the double-digit appreciation that we’ve seen for the last several years could not be sustained and we expected the pace of appreciation to slow down.

So far in 2019, this is the case.  Prices still going up, just not as fast.

It’s like running up stairs.  Eventually you will get tired and you will need to start walking (but you’re still going up).

Headlines that suggest that prices have peaked and are falling create unrealistic expectations for buyers and give sellers a skewed perspective on the market.

Here are the numbers…

Average Price:

  • Up 1.53% in Metro Denver
  • Up 6.1% in Larimer County
  • Up 5.1% in Weld County

Months of Inventory:

  • 5 Months in Metro Denver
  • 5 Months in Larimer County
  • 4 Months in Weld County
  • (Remember that 4-6 months of inventory represents a balanced market)

There has been an increase in Days on Market which means that homes are taking longer to sell.  But the increase is measured in days, not months.

Here are those numbers…

Days on Market:

  • Up 4 Days in Metro Denver
  • Up 11 Days in Larimer County
  • Up 3 Days in Weld County

So, be mindful of headlines that can be sensationalized and might suggest that the market is falling.

Bottom line, the market is going up, just not as fast as it was.

Posted on May 31, 2019 at 8:00 am
Jon Holsten | Category: Buying, Homes for Sale, Housing Trends, Northern Colorado Real Estate, Selling | Tagged , , , , , ,

Down Again

Mortgage rates dropped again for the fourth week in a row.

 

The average 30-year rate is now 4.06% which is the lowest it has been all year.

Rates today are actually the lowest they have been since early 2018.

The main factor driving rates down is the trade war with China.

Investors are shifting money from stocks into bonds which causes the yield on the 10-year Treasury to drop.

Mortgage rates are closely aligned with the 10-year Treasury.

At the beginning of the year, most experts believed that 2019 would have a trend of increasing mortgage rates eventually reaching 5.5%.

Instead, the opposite has happened which is good news for real estate.

Posted on May 30, 2019 at 8:00 am
Jon Holsten | Category: Buying, Housing Trends, Northern Colorado Real Estate | Tagged , , , , , , ,

Increase Your Living Space—And Your Home’s Value

Cooking and dining alfresco is arguably the single greatest thing about warm weather in spring and summer, but most backyard barbecues involve a million trips to and from the kitchen. As such, one of the hottest trends in new home construction is outdoor kitchens. Outdoor kitchens typically feature a comfortable eating area with a combination of cabinets, sinks, warming drawers, prep counters, ranges, and refrigerators—all within arm’s reach of the grill. Outdoor kitchens provide a natural gathering spot for friends and family and can add to the value of your home.

How elaborate your outdoor kitchen should be depends on how often you plan to use it. Some people enjoying dining outdoors every evening, while others reserve it for special occasions and social gatherings. Regardless of the frequency of use, you need to use materials that do well in all kinds of weather. Stone sinks, stainless steel cabinets, and slate counter tops will withstand the Seattle rain, as well as the months that pass between barbecue seasons. Many outdoor kitchens also feature pergolas or other roof structures to shield guests from sun and rain. Something else to consider is adding an outdoor gas heater or fireplace, which will extend the amount of time you can use your outdoor kitchen into the fall and winter months.

In addition to the convenience of having all your grilling accoutrements within a handy distance, a well-built outdoor kitchen also adds to the value of your home. And you don’t have to have a new home to reap the benefits. With the right space and backyard layout, owners of existing homes can easily add-on an outdoor kitchen area. When adding an outdoor kitchen to an existing home, power, gas, and water lines often have to be extended from the home, so be sure to hire a qualified contractor to do the work for you. By extending your living space outside, you have essentially increased the square footage of your home. In many cases the increase in your home’s value will equal or even sometimes exceed the cost of the project itself.

The benefits of an outdoor kitchen area and living space are many. And with the convenience of having your drinks, condiments, meat, and cooking space all in one easy-to-reach place, you can spend the precious summer moments right where you should—outside with friends and family.

What features would you include in an outdoor kitchen?

Posted on May 29, 2019 at 8:00 am
Jon Holsten | Category: Home Maintenance, Housing Trends, Landscape, Selling | Tagged , , , , ,