Buying • February 17, 2022

What is a Bridge Loan?

by Elizabeth Dolton

With so much in flux during the period between selling a home and buying a new one, short-term financing can provide some calm among the storm. With the fate of two properties up in the air, those who are selling a home will often look to secure a bridge loan to bridge the gap between the sale of their existing home and the purchase of a new one. So, is a bridge loan right for you? The following information is meant to help you decide whether it is a fitting solution.

What is a bridge loan?

Bridge loans have shorter terms—generally up to one year—than mortgages and often come with higher interest rates. Bridge loans allow buyers to borrow a portion of the equity in real estate they already own (usually their current primary residence) to use as a down payment on the purchase of a new residence. Borrowers will commonly package the two loans together, in which they borrow the difference between the amount they owe on their current home and a percentage of the home’s value (often 75% or 80%). Just like a home equity loan, a home equity line of credit (HELOC), or a mortgage, bridge loans are secured by your current home as collateral.

Two colleagues analyze mortgage paperwork.

Image Source: Getty Images – Image Source: Natee Meepian

Bridge Loans: Pros

Once your home sells, you can use the proceeds to pay off the bridge loan, leaving you with only the mortgage for your new home.
Bridge loans can get you cash quickly to expedite the transition from one house to another.
With a bridge loan, you can expect a shorter application and loan-approval process than a typical mortgage.
A bridge loan offers you the opportunity to buy a new house before your current one sells. As a buyer, this allows you to make a contingency-free offer on a new house, meaning you can still make the purchase without having to sell your current home first. This can be a useful resource in a seller’s market, where sellers may view an offer without contingencies as favorable amongst the competition.

Bridge Loans: Cons

If your home doesn’t sell in the allotted term, you’ll be left with making payments on your current home’s mortgage, your new home’s mortgage, and the bridge loan.
Bridge loans usually come with higher interest rates than a typical mortgage and come with their own set of costs, including interest, as well as legal and administrative fees.
Having a low debt-to-income ratio, a solid credit score, and a considerable amount of equity in your current home are all required to secure a bridge loan, so qualifying may be out of reach for some homeowners.

Alternatives to Bridge Loans

Home equity loans, home equity lines of credit (HELOCs), and personal loans are all viable alternatives to bridge loans that can still create a pathway to purchasing your new home. Be sure to compare the costs associated with each line of financing before making your decision.

Living • Remodeling • Selling • February 7, 2022

Should I Remodel or Sell My Home As Is?

by Elizabeth Dolton

Homeowners who are preparing to sell are often faced with a dilemma about whether to remodel or sell their home in its current state. Each approach has its respective advantages and disadvantages. If you decide to remodel your home, it will likely sell for more; but the increased selling price will come at the cost of financing the remodeling projects. If you decide to sell without remodeling, you won’t spend as much money putting your home on the market, but the concern is whether you’re leaving money on the table.

Should I Remodel or Sell My Home As Is?

To answer this question, it’s important to understand the factors that could influence your decision and to work closely with your agent throughout the process.

Cost Analysis: Home Remodel vs. Selling Your Home As Is

Home Remodel

When you remodel your home before selling, you’re basically making a commitment to spend money to make money. So, it’s important to consider the kind of ROI you can expect from different remodeling projects and how much money you’re willing to spend. Start by discussing these questions with your agent. They can provide you with information on what kinds of remodels other sellers in your area are making and the returns they’re seeing as a result of those upgrades. This will help you determine the price of your home once your remodel is complete.

Then, there’s the question of whether you can complete you remodeling projects DIY or if you’ll need to hire a contractor. If hiring a contractor seems expensive, know that those costs come with the assurance that they will perform quality work and that they have the skill required to complete highly technical projects.

According to the Remodeling 2021 Cost vs. Value Report (www.costvsvalue.com¹), on average, homeowners paid roughly $24,000 for a midrange bathroom remodel and about $26,000 for a minor kitchen remodel nationwide, with a 60.1% and 72.2% ROI respectively. This data shows that, for these projects, you can recoup a chunk of your costs, but they may not be the most cost-effective for you. A more budget-friendly approach to upgrading these spaces may look like repainting your kitchen cabinets, swapping out your old kitchen backsplash for a new one, refinishing your bathroom tub, or installing a new showerhead. Other high-ROI remodeling projects may allow you to get more bang for your buck, such as a garage door replacement or installing stone veneer. To appeal to sustainable-minded buyers, consider these 5 Green Upgrades that Increase Your Home Value.

A man and woman look at blueprint plans with a contractor inside a room that’s being remodeled.

Image Source: Getty Images – Image Source: stevecoleimages

Selling Your Home As Is

Deciding not to remodel your home will come with its own pros and cons. By selling as is, you may sell your home for less, but you also won’t incur the cost and headache of dealing with a remodel. And since you’ve decided to sell, you won’t be able to enjoy the fruits of the remodel, anyway. If you sell your home without remodeling, you may forego the ability to pay down the costs of buying a new home with the extra money you would have made from making those upgrades.

Market Conditions: Home Remodel vs. Selling Your Home As Is

Local market conditions may influence your decision of whether to remodel before selling your home. If you live in a seller’s market, there will be high competition amongst buyers due to a lack of inventory. You may want to capitalize on the status of the market by selling before investing time in a remodel since prices are being driven up, anyway. If you take this approach, you’ll want to strategize with your agent, since your home may lack certain features that buyers can find in comparable listings. In a seller’s market, it is still important to make necessary repairs and to stage your home.

In a buyer’s market, there are more homes on the market than active buyers. If you live in a buyer’s market, you may be more inclined to remodel your home before selling to help it stand out amongst the competition.

Timing: Home Remodel vs. Selling Your Home As Is

Don’t forget that there is a third option: to wait. For all the number crunching and market analysis, it simply may not be the right time to sell your home. Knowing that you’ll sell your home at some point in the future—but not right now—will allow you to plan your remodeling projects with more time on your hands which could make it more financially feasible to complete them.

Buying • February 3, 2022

Working with a Listing Agent

by Elizabeth Dolton

What is a Listing Agent?

Generally, a real estate transaction involves a listing agent representing the seller and a buyer’s agent representing the buyer. Listing agents will conduct a Comparative Market Analysis (CMA)—which uses recent housing market data to compare the seller’s home to other listings in their area—to accurately price the property. The agent will list the home, coordinate showings and open houses, and negotiate with buyers’ agents to find the best offer for their client. Once the transaction is complete, the listing agent and buyer’s agent will split the commission of the sale.

Hiring a listing agent removes the risks of selling your own home by placing the selling process in the hands of an experienced licensed professional. Once you’ve found the right agent, you can begin working together to form your selling strategy.

Advantages of Working with a Listing Agent

Accurately Pricing Your Home

Your listing agent will begin the selling process by finding the value of your home. There are various factors that influence home prices, including seasonality, market conditions, home features, and more. Agents have exclusive access to the data behind these trends, allowing them to conduct a thorough CMA to accurately price your home. Of all the costly mistakes in the selling process, an inaccurately priced home is perhaps the most consequential. An overpriced home will attract the wrong buyers, increase your home’s days on market, and could lead to serious post-sale complications, that, in some cases, could jeopardize the sale. An underpriced home leaves money on the table. With a listing agent’s CMA, you can rest assured that the price of your home is backed by current market data, which will set you and your agent up for successful negotiations.

Marketing Your Home

Listing agents are experienced professionals who possess a wealth of knowledge on how to market your home. Your agent will list your property on the Multiple Listing Service (MLS), an online database to which they have exclusive access. Getting your home listed on the MLS will greatly increase its exposure to interested buyers. Your listing agent will coordinate showings and open houses, opening the door to conversations with buyers and their agents.

Your agent will also make recommendations and help coordinate all marketing efforts, like staging and photography. They’ll also be able to recommend what, if any, repairs need to be made before you go live. Their expertise will streamline the selling process, getting your house ready and on the market quickly.

Offers / Negotiations / Closing

The complexities of the critical stages in the selling process highlight the value of an agent’s expertise. A listing agent will work on your behalf to field and assess incoming offers, communicate with buyers and their agents during negotiations, and ultimately, see the deal through to closing.

Local market conditions can often dictate how your agent approaches offers and negotiations. In a seller’s market, there’s a good chance you will have multiple competing offers on the table, contingencies are often waived, and all-cash offers may arise. Trying to pin down the best offer in these competitive situations can be overwhelming, but listing agents specialize in understanding the terms of these kinds of offers to identify the one that best aligns with your goals. If you’re selling in a buyer’s market, the buyer will have the leverage. Your listing agent will work with the buyer’s agent to reach an agreement on the buyer’s contingencies and finalize the terms of purchase.

From list to closing, your listing agent is there to answer any questions you may have, allay your fears, and guide you toward a successful sale. When searching for an agent, keep in mind that their ability to connect with you on a human level is just as important as their professional qualities. Selling your home can be an emotional roller coaster, and you’ll want someone by your side who you can trust on the journey ahead.

Virtual Tours • Windsor Real Estate • January 28, 2022

Idyllic Home in the Heart of Windsor

by Elizabeth Dolton

Welcome home to idyllic Mid-Century Modern living! 615 Oak Street is an EXPERTLY RENOVATED home with modern lines and historic charm, this turn-key property has it all- Open Floor Plan, Fireplace, and a Gorgeous Kitchen perfect for entertaining. The OVERSIZED LOT and huge yard provides plenty of space to play! Nestled in the heart of Windsor near schools, parks, library and downtown. Alley access/ NO HOA/Approved for an accessory dwelling in backyard. This gem won’t last long! Come check it out! Call (970) 396-7233 to schedule your private tour or click here for more information.

: Living Room

: Kitchen

: Bedroom

Living • Remodeling • January 24, 2022

Colorful Modern Design Trends for Your Home

by Elizabeth Dolton

Designing your home can feel like trying to put together a puzzle. While neutrals can help create consistency and set a calming tone in your home, color is often the missing puzzle piece that ties everything together and gives your home the life you’re looking for. Certain color combinations can create a sense of timelessness while others can help make your spaces feel modern.

In recent years, sustainability, multifunctionality, and the integration of natural elements into the home have cemented themselves as modern design trends that possess serious staying power. These trends go hand-in-hand with many aspects of modern life and are often the basis of homeowners’ decorations decisions. Here’s how you can you use color to create a modern look in your home.

A colorful kitchen with mint green cabinets and red accents.

Image Source: Getty Images – Image Source: Dreamer Company

Say “So Long!” to Neutrals

A combination of factors—people spending more time at home, remote work becoming more prevalent, the lasting effects on home life throughout the COVID-19 pandemic—have created a shift in how neutrals are viewed. Moving forward, expect to see a different take on the old “less is more” saying when it comes to home décor. Colors are officially back. Instead of minimalist, white-washed backdrops, designers suggest experimenting with more colorful landscapes to create vibrant, lively spaces. Now is the time to consider painting your kitchen cabinets something vibrant, add those multi-colored throw pillows that may have previously seemed too bold, or try out that wild idea you had for a gallery wall.

A colorful bedroom with blue walls, an orange lamp, and multicolored pillows and bedspread.

Image Source: Getty Images – Image Source: Onzeg

Healing Colors

Recent times have raised homeowners’ collective awareness about the meaning of the spaces they live in and how they impact their overall wellbeing. This perspective shift has elevated the importance of earthy tones. Deep greens, organic browns, rust-tinged oranges, calming blues, and illuminating yellows are all colors that bring natural elements to mind—i.e., plants, running water, the sun. Let your imagination run wild with ways that you can incorporate these colors into your home to give it a modern effervescence.

A colorful living room with orange and yellow accents, a houseplant, and a large bookshelf behind the couch.

Image Source: Getty Images – Image Source: onurdongel

Other Colorful Trends for Your Home

Tile and furniture are some other larger surface areas that can greatly benefit from a splash of color. Different tile designs can evoke different aspects of modern design and help to liven up backsplash-heavy spaces like your kitchen or your bathroom where white subway tile may leave something to be desired. Give yourself carte blanche when searching for colorful furniture. Explore bold patterns and different color combinations that complement other items in the spaces they’ll inhabit.

Originally posted by Sandy Dodge

Buying • Selling • January 19, 2022

Housing Inventory

by Elizabeth Dolton

Many of our clients wonder if the current pace of price growth can continue. Some even ask if prices will decline this year.

Based on researching the Case-Shiller Home Price index and the National Association of Realtors home inventory data, there must be at least 6 months of inventory in a market for prices to have any chance of declining. We wrapped up 2021 with about 2 weeks of inventory in both Larimer County, Weld County. This marks a 45%-46% decrease in inventory as compared to December 2020.

The dwindling supply and the rising prices have led to a lot of questions about the future of the housing market. Is there a market crash on the horizon? Is there a housing bubble that’s about the burst? The answer is no. Although it is unlikely that the market can continue at this pace indefinitely, all signs point to a healthy housing market in 2022.

Living • Remodeling • November 29, 2021

How to Upgrade Your Dining Room

by Elizabeth Dolton

The dining room is a place of gathering, comfort, and community. Creating the right mood in the space is a matter of choices in décor and design. For example, a traditional dining room creates a heartwarming tone whereas a modern one feels minimalist and light. Homeowners can often feel puzzled when trying to upgrade their dining room, since it typically isn’t as simple as buying new appliances or green-lighting a remodeling project. Here are some simple ideas to help you upgrade your dining room and achieve the atmosphere you’re looking for.

Lighting

A light fixture is often the centerpiece of a dining room. Your choice in lighting can greatly reinforce the dining room theme you’re going for, so look for fixtures that reinforce the other elements of the space. A chandelier will add a formal touch to the room, while more modern fixtures like pendant and warehouse lights can deliver a sense of chic sophistication. If you plan to hang a chandelier, keep in mind that the bottom of the fixture should hang roughly three feet above the dining room table. If you have vaulted ceilings, it should hang even higher.

Flooring

A full dining room upgrade happens from the ground up. If your flooring is outdated or showing signs of wear and tear, it’s the perfect time to add a flooring upgrade to your project list. Choosing the right flooring is a matter of identifying what material will work best in the space, assessing your budget, and forming a plan for installation. Materials like vinyl, ceramic tile, and hardwood are popular options, not only for their durability, but also because they’re easy to clean. Other niche options like cork or concrete can help create a specific ambience but may not be as widely available. Once you’ve decided on your material, talk to local contractors to compare installation quotes. There are pros and cons to installing flooring on your own or hiring a professional; know what they are before making a final decision.

A dining room with hardwood floors, black chairs, and a black table.

Image Source: Shutterstock – Image Credit: Artazum

Table & Chairs

When it comes down to it, the essential function of your dining room is to provide a setting for enjoying a meal. Together with your main lighting fixture, your table and chairs help to form the focal point of the room. Size is a critical component of your dining room table. There’s a Goldilocks dynamic with dining room tables. The larger the table, the more room everyone has, but the more space it takes up. Make sure to take exact measurements before shopping around so you know exactly what size you’re looking for.

Your chairs will reinforce the look and feel of your table. Consider balancing wood grains and matching colors. For example, if your dining room table is designed with intricate wood grain, look at chair sets with simple colors and designs to bring balance to the room. When it comes to the height of the seats, arms, and back, choose dimensions that suit the dining experience you’re looking to create. Generally, high-backed, narrower chairs create a more formal atmosphere than their rounded, modern counterparts. Either way, choose the combination that looks best to you and feels most comfortable.

Image Source: Shutterstock – Image Credit: JR-stock

Color & Décor

A fresh coat of paint can take a dining room from stale to lively in a hurry. If you’re thinking about painting your dining room, think about how the color scheme would complement and/or contrast with the colors elsewhere in your home. A contrasting color will help differentiate the space, while a complimenting color will help to tie things together. New color in the dining room doesn’t have to come exclusively from painting a wall. Colored furniture pieces, decorative throw pillows, placemats, and table décor can help liven the space as well. Curtains and drapes can add a splash of color while softening the room, and when paired together with a decorative rug, can make your colors pop at different eye levels.

Uncategorized • November 5, 2021

Zillow’s Shut Down

by Elizabeth Dolton

On Wednesday Zillow announced the shut down of its iBuying program because of mounting financial losses and increasing complexity in the real estate market.

The goal of this program was to buy properties directly from Sellers and then re-sell them for a profit.

Before looking at the interesting facts and numbers associated with this news, we want to acknowledge the people who are affected by this.

Zillow’s workforce will be reduced by 25%. Many people will be laid off and our heart goes out to them. We certainly wish them only the best.

Within our company we are not surprised by Zillow’s announcement. We observed many cases where they over-paid for a property, re-listed it for an unrealistic price, dropped the price over time to meet the market, and then sold at an amount much less than what they paid.

It actually became difficult to find specific scenarios where they sold the home for more than their acquisition cost. It was not uncommon to see losses of $50,000 per home or more.

Here is a quote from their CEO: “Our observed error rate has been far more volatile than we thought possible. Fundamentally, we have been unable to predict future pricing of homes to a level of accuracy that makes this a safe business to be in.“

In the third quarter of 2021 alone, their iBuying division lost $328 million.

Bottom line, their valuations were off.

It is a reminder that pricing requires a hyper-local scientific approach versus a generic algorithm

Homes are not commodities. Each home is highly unique. Each has its own highly unique location, features, amenities, condition and timing.

Homes can’t be priced like a book or a plane ticket. Every unique feature must be taken into account.

Nationally, Zillow has about 7,000 homes in backlog which it hopes to sell over the next several months.

Other players remain in the iBuying game and we are more than happy to help you understand those options if you are curious.

Market Updates • October 25, 2021

Mortgage Rate Forecast

by Elizabeth Dolton

Click below to read more about the upcoming forecast on 2022 mortgage rates:

10/25/2021 Housing and Economic Update from Matthew Gardner

Living • October 22, 2021

A Guide to Upgrading Your Bedroom

by Elizabeth Dolton

For many homeowners, their ideal bedroom is that of a minimalist sanctuary—a place where you can kick your shoes off, relax, and get some shut eye. For others, making their bedroom as cozy as possible is their idea of perfection. No matter what kind of bedroom you’re dreaming of, keep the following information in mind as you prepare to make your upgrades.

A Guide to Upgrading Your Bedroom

How much does it cost to remodel a bedroom?

The total cost to remodel a bedroom depends on the size of the room and the scope of the remodel. According to a recent nationwide report by Fixr, the national cost range to remodel a bedroom is between $14,000 and $40,000, with the national average cost being roughly $21,000. While this might sound like a lot, it includes everything from hardwood floors and painted walls to new furniture and a custom closet.

Another factor that will dictate your budget is whether you plan on doing the remodel DIY or hiring a professional. Taking a DIY approach to your bedroom upgrades will save on labor costs and allows you to complete the project on your own schedule. However, if you get in over your head on a project and things go sideways, it can be costly to fix, and you may end up having to hire a pro to get things back on track.

Before you begin your remodel, create a list of tasks and all the sub-tasks involved to assess whether they are within your skill level to DIY. Determine whether the project requires a permit and check your local zoning regulations before making any additions or extensions to your bedroom.

Which bedroom projects are best for home value?

Adding a bedroom or converting a space into a bedroom can increase your home’s value. That’s because you increase the livable square footage while also making it more appealing to a wider variety of buyers. If your home has fewer bedrooms than other recently sold homes in your area, a bedroom addition may allow you to list at a more competitive price. Talk with your agent to get an idea of what types of upgrades buyers in your area are paying top-dollar for.

Simple Bedroom Upgrades

With costs for a small bedroom remodel averaging up to $20,000, a full-scale renovation may not be in the cards for every homeowner. Fortunately, there are plenty of budget-friendly ways to rejuvenate your bedroom. Here are a few tips to get you started:

Upgrade your décor: Appealing to the senses will help transform your bedroom in a snap. Add texture by swapping out your bed spread, pillows, and blankets. Go for plush to make it feel like you’re sleeping on a cloud or try vintage elements like knit fabrics for a more traditional comfort. Add natural elements like wood and stone to create an earthy atmosphere. Essential oils and scented candles can bring some added relaxation into the space.
New hardware and lighting: A simple trip to the hardware store can change the look and feel of your bedroom. Switch out your door handles, drawer pulls, shelves, and lighting fixtures to upgrade your bedroom in the span of a few hours. Select pieces that reinforce the theme you’re going for. For an industrial vibe, select rustic metals and materials. For a minimalist look, choose sleek metals like gold and chrome.
Decorate with plants: Not only will decorating your bedroom will plants spruce up the space, but they also help to improve air quality. If you have vaulted ceilings, shop around for vertical plants and hanging gardens that can make the most of your empty wall space. If you consider yourself a beginner gardener, consider low maintenance plants like cacti and succulents.

Originally Posted by Sandy Dodge