Monday, June 18, 2018

What 4 Lessons Did We Learn From the 2007 Housing Crisis?



Selling your Colorado Springs home? Get a home value report
Buying a Colorado Springs Home? Click here for full MLS access

Today in Colorado Springs, many of our local communities are seeing home prices that are even higher than what we observed during the 2007 housing crisis.

That period of our market may have been difficult, but it also taught us some important lessons. Today I’d like to share four of the most important things we learned:

1. Don’t buy a home you can’t afford. Many people during, and just prior to, the housing crisis in 2007 bought properties beyond their budget out of fear. They worried that, if they didn’t make a move, they would be priced out of the market and lose out on ever having the opportunity to purchase a home again. In retrospect, we know that this way of thinking is fatally flawed. So don’t buy into the hype. If you cannot afford a home now, it doesn’t mean you never will be. 

2. Don’t always believe your home will go up in value. A lot of people in our market falsely assume that home prices will always increase. Yet this is not the case. The reality is that prices fluctuate. Real estate purchases are best thought of as a long-term commitment.

3. Make sure you have adequate reserves. During the housing crisis, homeowners without sufficient savings found themselves in an extremely difficult position. Experts say that you should have at least six months’ worth of reserves so that you can sustain your lifestyle in the event of major unforeseen expenses. 




If you cannot afford a home now, it doesn’t mean you never will be able to.


4. Submit a big, healthy down payment when buying. Many people today are putting down as little as possible, but this is not the ideal way to proceed. If a downturn in prices pushes homeowners like these to sell, they are sure to encounter financial hardship as a result. Submitting the largest down payment you can afford will make your home more affordable on a monthly basis and will make it easier to hold onto your property during turbulent times.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Tuesday, March 27, 2018

Your Spring Housing Market Update



Selling your Colorado Springs home? Get a home value report
Buying a Colorado Springs Home? Click here for full MLS access

As we get nearer to wrapping up the first quarter, I want to give you a quick update on the market.

We’re just three months into 2018 and the housing market is already setting all kinds of records:

  • The median price of homes jumped 15% higher than last year to just above $292,000.
  • The average price is up 10%, landing at $331,000.
  • In January and February, 1,884 homes sold, which is 10% higher than last year.
  • In February alone, 994 homes sold. This is 18% more than the same month in 2017!

If you’re asking yourself about why all of these numbers are going up, here’s another stat for you: the supply of homes that is available in town has hit an all-time low. Right now in El Paso County, there are only 1,089 homes for sale. Think about that—there are probably 800,000 people living in El Paso County, and there are barely over 1,000 homes for sale. That includes condos, townhomes, and single-family homes in all price ranges and areas.




There are around 800,000 people living in El Paso County, and there are barely over 1,000 homes for sale.


As you drive around town, you’ll notice home builders are building new homes on just about every patch of dirt they can find, and yet, they still can’t build fast enough for the demand.

If you’re thinking about buying a home, don’t wait! Most experts agree that prices and interest rates are going to keep rising. Let us help you through the maze of the current market. We can find you the right house for a lower cost than you’ll get if you wait until later to buy. If you’re thinking about selling your home, I think you’ll be happy to find out what it’s worth today.

In either case, please feel free to reach out to me today. I’d love to help you.

Thursday, February 22, 2018

How to prepare for a home inspection



Selling your Colorado Springs home? Get a home value report
Buying a Colorado Springs Home? Click here for full MLS access

So you’ve decided to sell your home and, before you know it, it goes under contract. Before the deal can close, though, you’ve got to pass a home inspection.

A home inspection contingency is present in most real estate contracts to allow the buyer to back out should any major issues become apparent. It’s at this stage that many deals fall through. So, with so much at stake, it just makes sense to thoroughly prepare your property in advance. Making these preparations will save you a lot of negotiation and repair work down the road. 




Preparing your property before it’s inspected will save you a lot of negotiation and repair work down the road.


The following areas are where unpleasant surprises often arise and, ultimately, either kill the sale or cost the seller a lot of money:

  1. The roof. Repairs to the roof can be very expensive. If you think your home may need a new roof, consider taking care of it before listing your property on the market. With all the hail damage we get in our area, these repairs might be covered by your insurance.
  2. The heating and cooling system. Regardless of the season, a home inspector will want to make sure the heating and cooling systems are in good shape. I highly advise hiring a professional prior to your inspection to uncover any issues beforehand.
  3. Electrical issues. Making sure your electrical systems are up-to-code before the inspection is critical because electrical violations are both common and easy to spot. Also, faulty wiring is a fire hazard. The sooner you address these issues, the safer your home will be.
  4. The plumbing. Plumbing problems can cause your deal to go down the drain. So, never put these issues off.
  5. Water damage. Even if you don’t have an active leak, stains on ceilings are often signs of previous problems. Though this past issue may have been as harmless as an overflowing toilet, buyers will suspect the worst if they see signs of water damage. Always fix any current leaks in your home and cover signs of previous ones.

So, if you plan on selling your home, you may want to consider having a pre-inspection performed. This can help uncover any of the issues we’ve discussed today.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.