Either way, whether you’re going to buy a Fort Collins or Loveland home or you’re refinancing or even thinking of either, you’re going to face the decision about not just which loan program is best but also which rate works better for you. One step further? When you’ve made those decisions, the final one is when to lock that rate in. Your loan officer won’t make that decision for you, or at least shouldn’t. Your loan officer can give suggestions and tell you where the market has been, where it is and where it might be. But your loan officer can only go too far. The ultimate decision will and should always be yours.
Loan officers, good ones, might close 20-30-40 loans per month, some even more. There’s literally not enough time for a loan officer to inform each and every applicant about rates on a daily basis. Even if the loan officer could, there are so many variables when quoting rates from credit scores to loan amounts to equity to occupancy…it’s a Herculean task. Again, the timing for a rate lock is up to you. Should you lock in now while you know exactly where rates are or should you exercise a little patience and wait to see where rates will move over the next few days or weeks?
That timetable of course must adhere to your sales contract. You don’t really have much of an option when buying a home as you must close on the specified date. Lenders need some time to prepare closing papers as well as get your final numbers in front of you three days before you sign. Refinancing on the other hand provides a little more flexibility. If you’re refinancing because of a balloon note coming due, again, time isn’t on your side. But if you’re wanting to get a lower rate or switch loan terms, the decision is entirely up to you.
The prudent decision would be to lock in a rate now if the numbers make sense. Loan officers will tell you that it takes a long time to move downward on the heels of negative economic data or Fed intervention. But it can take just a sneeze by some obscure economic report or offhand comment from a Fed Board Governor to make rates jump. The prudent approach might be something like asking yourself that if you made the decision to lock, you made the wrong one. If rates stay where they are or start moving back up, you decided well. If on the other hand if you locked in your rate and in the future rates continued to move down, you can always consider refinancing. Okay, which of these two would you rather be on the wrong end?
That’s where patience comes into play. But with interest rates, patience really means trying to time the markets. Even the best of economic wizards can’t do that. What’s that old saying, “Two economists can come up with a different projection using the very same data?” Trying to time the markets by being glued to business sites, hoping to glean some tidbit that provides some insight on where rates are headed, the odds are against you.
Prudence or patience? I’ll take prudence. But again, the final decision is in your hands.
Message me if your thinking about buying a Fort Collins or Loveland home at m.me/EdPowersRealEstate
Ed Powers Real Estate 970-690-3113 ed@EdPowersRealEstate.com www.EdPowersRealEstate.com
The pandemic has put the world on pause. Should you put your Fort Collins or Loveland real estate plans on pause, too?
This article reaches a sizable online audience, so there’s not just one answer to this question. In direct conversation with you—one-on-one—this question could be answered with specific reference to your location, property, finances, and desired outcomes, but there would still not only be one answer to this question.
Real estate, by its nature and its tremendous location-driven diversity, makes that question open-ended, with many possible answers:
• Each option has many perspectives. • Each property is unique. • The reasons homeowners love, or are ready to leave, their real estate are unique, too.
The greatest challenge can be uncovering and understanding the full range of options open to homeowners, not just during these bizarre times, but in any market—before making the decision to sell or not.
The seemingly-simple “sell or not” question can only be answered after tackling a series of other questions. Even without the pandemic, making the decision to sell your home is complex and usually involves significant emotional elements:
• If you had planned to list your property this spring, before you abandon that project, take a fresh look at that decision to sell. Identify your crucial criteria and how they may have changed during the pandemic. • If you are now asking yourself whether you should sell because of the pandemic, the first step is deciding which are the crucial criteria involved in making a good decision to sell now or not to.
Don’t just let conflicting thoughts rattle around in your head. Jot down ideas to get your brain going. Identify issues and goals. Mind mapping may be helpful here. Keep track of what you discover.
What’s driving you?
1. The Heart: Why do you want to move from this home right now?
Is the motivation based on location, family changes, finances, work, or other issues important to you and your family? Prioritize these criteria. For instance, do record-low interest rates provide an exciting opportunity to buy your “dream home?” Has your work shifted permanently online, so where you live is no longer a work-related issue? Has your family situation changed, so that this home is no longer an ideal fit? How is the pandemic affecting your thinking? Will your decision be valid after the pandemic is resolved?
2. The Head: Why do you consider this the right time to cash in your main financial asset?
Pre-pandemic real estate values made many homeowners feel “house rich.” The pandemic has created stock market volatility and unexpected financial pressures that have devastated savings, investments, business assets, job security, financial prospects, and lives. Will real estate values in your area remain at, or return to, pre-pandemic levels? This financial pressure or its related uncertainty may be a driving force in your decision to sell. Does that make it the right decision?
No one knows the future, but a lot of people talk like they do. Be skeptical.
Real estate professionals are excellent resources and are experts at decision making. Real estate markets are local. Locate knowledgeable local professionals who understand the type of real estate you are interested in. Ask them what all your options are since their broad experience has taught them a degree of creativity that will amaze you.
Stick to the original sell decision?
Once you’ve re-examined your original decision to sell this spring, talk to at least one or two local experienced professionals to add a broader real estate perspective. Ask a lot of questions to understand exactly what has changed or improved in your local real estate market:
• Are current buyers intent on significant price declines which may conflict with your selling goals? • How much could selling in this market net you? • Are lenders receptive to mortgage lending in your area? Will deals close? • In uncertain times, planning to close the deal months down the road can be risky. Would it be possible for you to close relatively quickly? How important is that for you?
Real estate professionals can help you separate fact from fiction.
Cash-in in the current market?
If you hadn’t planned to sell this spring, but now feel you should, what’s behind this dramatic change? With so much rumor, unsubstantiated opinion, and fraud out there, take care you don’t fall prey to flawed thinking or fraudulent scams that can take your property from you. Real estate decisions are not easily reversed.
Local real estate professionals can bring you up-to-date with what’s really going on in your area. They can share analysis of local sales and listings to provide solid information on what you could expect from the sale of your home and how quickly. They can explain the “nuts and bolts” of safely showing and selling in this altered “social-distance” market. They’ll also reveal risks that should be considered, including:
• What benefits to selling now do you want to cash-in on? Perhaps, you are concerned real estate values will drop and you’ll lose out on pre-pandemic values. Or, do you see advantages in what you could buy as your next home because of price depression in other markets? • If you haven’t had time to renovate or modernize the most dated areas of your home, would low listing inventories cause buyers to overlook these failings just so they can now buy a home in their price range?
Real estate professionals can help you separate fact from fiction.
What’s the next step?
Before you get too involved in selling, take time to evaluate what your choices will be once your home is sold and you must move:
• Are you intent on taking cash out of the sale to invest or save? Is this the right time to take advantage of these financial strategies? Be cautious of a financial advisor who encourages the sale or mortgaging of your home to “make a killing” from stock market volatility. Be skeptical. If you lose everything, that advisor would still have made commission on the trades. What will you be left with? • If you intend to rent once you sell, investigate your preferred rental market to be sure you can find what you want at the price you can afford. The pandemic has had devastating impact on many communities with no end in sight. • Investigate the market you intend to buy into. What if inventories are so low that your choices are limited? This scarcity may inflate prices. On the other hand, low interest rates should enhance your purchasing power. Less competition from other buyers may give you a chance at property that might otherwise have been out of reach.
Should you sell now? Your decision should be based on research and thoughtful consideration, not fear. Relax into the decision. You’ll only be 100% sure in hindsight. Choose the answer that you can live with and thrive on.
Message me if your thinking about selling your Fort Collins or Loveland home at m.me/EdPowersRealEstate
Ed Powers Real Estate 970-690-3113 ed@EdPowersRealEstate.com www.EdPowersRealEstate.com
As the weather warms up, more families are starting to look forward to getting outside of the home to have some fun or just relax in the sun. And while a vacation may seem like the ultimate goal, most people find that by creating a better outdoor living area, they can have even more fun “homecationing” in their own yards.
There are numerous projects that you can do to add some fun and recreation to your Fort Collins or Loveland home’s yard. The following 5 projects can help you maximize your space, improve your property, and increase your enjoyment of your space with the good weather.
Patio: Affordable and Versatile
When you think about your outdoor living area, your patio should be home base. Patios are one of the most versatile things to add to your yard in terms of enjoyment and use, as well as style and appearance.
Your patio can be covered or open, have a fire pit or fireplace for gathering around in the evenings, host a grill and table, or be the base for a pool deck. You can even add bigger projects to the patio itself, like a hot tub, pergola, or outdoor kitchen. Basically, adding a patio adds a blank slate to your yard that can give you endless ways to customize it to your needs. Start with leveling and adding some pavers, then add furniture, lights, and a gathering place such as a fire pit or picnic table to start using the area right away.
Project cost: Most homeowners spend around $4,000 for a living room-sized patio of 12 x 18 feet made of stamped pavers.
Pool: Perfect for Kids and Hot Climates
If you’re planning on staying home all summer, a swimming pool may be a good investment. Pools can be tricky, as a large, inground pool needs a lot of space while an above ground pool doesn’t add a lot to your home’s value.
However, any pool can add a great way to cool off on a hot summer’s day, and can give you a way to relax and have some fun. Pools come in a wide variety of shapes and sizes. You can add an inflatable pool that’s big enough to cool off in just for the summer or you can go further and add a small inground pool like a plunge pool or an endless pool that will give you the chance to cool off without taking up your whole yard.
Project cost: The cost of building a pool varies greatly depending on the type of pool you choose. Above-ground inflatable pools start at $200, while you would pay around $20,000 for a plunge pool and $29,000 for an endless pool.
Court: for Sports Lovers
If you’re a sports-minded family and you want to use your yard to play regularly, consider adding a sports court to your yard. Many basketball court materials can be used to create a more generic sports court – you can install hoops for a true basketball court, or put up a volleyball net or other game materials to get more use out of the space.
Sports courts don’t require landscaping or a lot of maintenance, which can be attractive for homeowners that want to use their space, but don’t want to spend a lot of time watering, fertilizing, and caring for it in the long term.
Project cost: Installing a full-sized basketball court costs around $30,000. For a more affordable option, you can have a half-court over concrete for $15,000.
Deck: for Enjoyment and Increased Home Value
Decks are a great addition to any home. Decks give you a place to relax, gather, entertain, cook, eat, and more. Decks are also incredibly versatile – they can be a low wooden platform on a one-story home or an elevated backyard oasis on a larger property. Wood decks also have a fairly good ROI, so you’re not only increasing your enjoyment in your property, you’re also increasing its value at the same time.
Think about what things you would do on the deck before building to get the most out of the project. A deck built for entertaining might include a gas fire pit, built in benches, and a bar, while a deck made for the family might include a table, shade, and some built in swings underneath.
Project cost: Homeowners usually spend $17,200 to $19,000 for a 16′ x 20′ composite deck.
Front Porch: for Trendy Curb Appeal
One of the biggest trends of the last few years has been the farmhouse. The modern farmhouse has commanded great prices at time of resale and has everyone clamoring for one. One of the things that every farmhouse needs and that helps make the style is the extra wide front porch. The front porch not only helps create the look of a farmhouse, it’s also practical and highly sought after for its use. The porch enhances your entry to the home, gives you a place to relax and unwind on beautiful spring mornings and long summer evenings, and is often big enough to fit the whole family along with furniture and a porch swing. Adding a front porch will add utility and enjoyment to any home, farmhouse or not.
Project cost: Homeowners spend around $21,440 to build a porch.
Enhance Your Home and Your Enjoyment this Season
These outdoor projects will not only increase your property’s appearance and value, they’ll also increase your enjoyment in being at home. Whatever your family’s idea of a good time is, it’s possible to add things to your home that can help you achieve your goals. Consider tackling one of these 5 projects and get more from your homecation.
Message me if your thinking about selling your Fort Collins or Loveland home at m.me/EdPowersRealEstate
Ed Powers Real Estate 970-690-3113 ed@EdPowersRealEstate.com www.EdPowersRealEstate.com
Once upon a time, less than two or three decades ago, buying a run-down Fort Collins or Loveland home, revamping the building, and reselling the property was a very lucrative business for tens of thousands of individuals across the United States. As more of the less-desirable homes have been purchased and flipped in the past 20 to 30 years, the market has become more restricted, and investors are often forced to buy homes that require significant work, rather than the easy face-lift properties. Here are a few ways home flippers can still make money on their investments.
Buy on a Budget
Any builder can give you an estimate of what it will cost to make the necessary renovations to a property. But they are only estimating what they can see. Within the budget, you must include the marketing costs, repair expenses, standing costs while you repair it, insurance prices, and selling commissions. On top of that, don’t forget to add a buffer for the unseen and unforeseeable, such as discovering mold or bringing wires and pipes up to standard building code.
Buying Without Borrowing
For those investors that can purchase a property without the extra pressure that a mortgage payment can bring, success is much easier. Although your hard-money lender may present you with a short-term loan, it can be a costly partnership – often more than 10 percent. Investors can also find themselves in a bind when a property tear-out discovers costly needed repairs, and an acquisition and repair loan is required. The extra $30,000 to $100,000 in repairs can easily put the investor into the red.
Buying the Right Property
When you purchase a home that is run down, and you expect to put $3,000 into the renovations with just two weeks turn-around time, it probably won’t happen that way. The problem is you never know what the foundation is hiding, what is behind the walls, and if there is hidden water damage.
Buying at the Right Price
One of the long-time experts in the field of real estate, Steven Taylor landlord was asked, “What are the most important factors that need to be assessed when becoming a real estate investor?” After a thoughtful pause, he replied, “There are several, but I would say access to deals is critical and access to capital of course, but understanding your market and recognizing opportunities are factors that create successful real estate investors.”
Buying in a Good Neighborhood
It’s no secret that homes in some neighborhoods are highly prized and can sell for thousands of dollars over asking price. Sometimes there may even be a bidding war in a selected neighborhood that brings in $25,000 to $50,000 over market price. If you are lucky enough to locate a home in one of those prized neighborhoods, your chances of having a successful flip are high. Knowing the area is safe, schools are excellent, and values are rising can mean the home is a great deal and will be an easy flip.
Buying When You Have a Great Contractor
It may sound trite, but your contractor can make or break your project. Finding a professional that has a crew of his or her own, takes responsibility for crew reliability, and brings in a project when saying it will be done, is priceless. You will not find many of them in your lifetime, so if you know one, treat them like gold – because they are valuable.
Getting the money you put into the home back out of it quickly is always the main goal of a flipper. Doing so with an eye on quality can give you a reputation that excels. So, do a quality job, get it done quickly, and sell it for a reasonable price. That is the secret to flipping homes and making money – in a nutshell.
Message me if your thinking about selling or buying a Fort Collins or Loveland home at m.me/EdPowersRealEstate
Ed Powers Real Estate 970-690-3113 ed@EdPowersRealEstate.com www.EdPowersRealEstate.com
A detailed property survey is essential to help you find out critical details about a piece of property. Many home buyers of Fort Collins and Loveland homes overlook this step or skip it altogether to save some money. But let’s face it, is a survey necessary when buying a home?
Is a Survey Necessary When Buying a Home – Reasons to Have one Done
In this article, we’ll consider whether a survey is necessary when buying a home. we’ll look at some of the benefits of getting a property survey before purchasing property. Something you should not do when buying a house, is skip out on a step that can potentially cost you more money later on.
It’s important to note that the protection and benefits a property survey offers a home buyer far outweigh the cost. As such, property surveys are critical to the home buying process. They provide a detailed description of the property, the lot size and the boundaries. If you’re planning to buy a plot of land or home, a home buying tip is to have property survey done, as it offers a wide range of benefits.
To Ensure You’re Paying for The Right Property
Buying a home is a big financial move, which is why you’ve likely been preparing to buy a house for some time. You want to be sure that the property described in the contract is the same one you’re paying for. A survey helps you to determine whether you’re purchasing the right home. Both the land and property are mapped out and assessed to eliminate any discrepancies.
Eliminate Disputes Over Boundary Lines and Corners
If you own property, it’s important to have accurate information about the boundaries and demarcations. This information is critical, especially before paving your driveway, add an extra room or build a fence. In cases where disputes may arise regarding boundary lines, a survey can help to provide details of the exact property dimensions.
Zoning Classification
Zoning classifications outline whether the property is zoned for residential or light industrial use. Most property owners are usually aware of their zoning classification, but you may not be aware of the restrictions. As such, you can count on a certified survey for details on any specific restrictions on how to use the property and ensure compliance with zoning requirements.
Whether You Can Subdivide
If you have future plans to subdivide the property, it’s important to familiarize yourself with the regulations first. It’s not uncommon for owners to invest in a property and later subdivide it to be sold for a profit or for family. Different jurisdictions have their own set of rules when it comes to subdividing restrictions. By investing in a property survey, you’ll be able to determine the existence of any of these regulations and their potential to affect your dividing plans.
Report on Underground Cables and Drains
Without a detailed property report, you probably won’t have a clue what’s underneath your property. Knowing what cables, wires, drains, telephone lines, gas and electricity are under your property is crucial for various reasons. For instance, you need to know the location of underground utilities before beginning any construction.
Bottom Line
As you start researching and prepare for home ownership, it’s important to make all boxes are checked before the house is officially yours. So, is a survey necessary when buying a house? The short answer is yes. The biggest benefit of a property survey is that it protects your investment. Ask your realtor about how to get a survey done. Without a qualified and extensive examination of your property, you could easily run into disputes and costly issues down the road.
Message me if your thinking about buying a Fort Collins or Loveland home at m.me/EdPowersRealEstate
Ed Powers Real Estate 970-690-3113 ed@EdPowersRealEstate.com www.EdPowersRealEstate.com
