Blog March 19, 2024

Wire Fraud

A form of cybercrime, wire fraud has led to major losses for homebuyers in recent years. Get to know what it is and what steps you can take to avoid it.

 

What is wire fraud?

Real estate wire fraud is a scam that targets buyers while making payments during the home buying process. Attackers have taken advantage of the fact that there are several people and entities involved in real estate transactions. Between real estate agents title and escrow companies, mortgage lenders and more, there are many steps, some of which involve sharing financial information and transferring money. This gives ample opportunity for scammers to slip through the cracks somewhere along the line.

The timing of wire fraud is typically during closing using a sophisticated phishing scam. Attackers apply the use of fake emails, phone numbers, or websites, often posing as the buyer’s real estate agent and directing them to allocate funds to a fraudulent account. Because the attacker will have scanned, scrubbed, and lifted your personal information in preparation for the scam, their forms of communication can often look familiar and legitimate.

The mission of the cyberattack is to get your funds into an account the attacker owns. To do this, it is common for them to say that you had previously sent funds incorrectly, that they were never received, that there are new instructions for payment, or that there has been a last-minute change in the closing process. These are all major red flags. It is imperative to take extra caution during the final steps of purchasing a home because transfers, once initiated, are difficult to remedy and can delay your closing process.

 

How can I avoid wire fraud?

 

  • Get to know the closing process: Talk with your Windermere agent ahead of time about what to expect throughout the closing process. Discuss payment options with your lender and ask specifically about instructions for wiring funds. It is safer to share this information over the phone than through email, as scammers could accumulate this information to use against you.

 

  • Record contact information: Keep a list of the personnel involved in your closing process. Beyond your real estate agent, keep a record of contacts at your mortgage lender, title company, and attorney’s office. In the event that someone new reaches out to you with a request, confirm their identity with one of your contacts.

 

  • Call to confirm: Call to confirm wiring instructions before sending the transaction through. Talk to a trusted representative and ask them to repeat the information to verify its legitimacy. After sending the funds, make same-day follow-up calls to ensure they were received.

 

  • Trust your gut: If you receive an iffy email or phone call, trust your gut. If something doesn’t feel right, it’s the perfect time to reach out to your contacts, discuss your hesitancy, and get advice before proceeding.

 

The threat of wire fraud emphasizes the importance of working closely with everyone involved in the purchase of your home. If you believe you have been scammed, contact your bank or wire transfer company immediately and request that they issue a recall notice for your wire. Contact the FBI’s Internet Crime Complaint Center and report the activity with as much information as you can gather. For more information about how to protect yourself from wire fraud, visit the National Association of Realtors’ Wire Fraud resources page.

Market Data January 10, 2024

How did interest rates effect CO Real Estate?

The numbers are in and it turns out that not even 8% rates could make prices drop in 2023.

When mortgage rates jumped this last year, many people believed that home values would fall as a result.

The fact that prices stayed flat in 2023 even though interest rates doubled between March 2022 and October 2023, shows that values along the Front Range are incredibly resilient.

Here are the 2023 average prices along the Front Range and their change compared to 2022:

Larimer County:  $621,538 / 1%

Weld County:  $527,600 / 1%

Metro Denver:  $679,710 / 0%

EconomicMarket Data May 11, 2023

NOCO Gardner Report Q1 2023

The following analysis of select counties of the Colorado real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

 

Regional Economic Overview

The pace of employment growth in Colorado continues to slow. Though this is not totally unexpected, I will be keeping an eye on it as annual job growth has now fallen below the long-term trend. Over the past year, the region added 46,700 jobs, which is the slowest annual pace since 2012. Part of the reason job growth has slowed so significantly is that the labor market remains extremely tight; the unemployment rate in February was only 2.9%. Regionally, jobless rates ranged from a low of 2.7% in Fort Collins and Boulder to a high of 3.4% in the Grand Junction metropolitan area.

Colorado Home Sales

❱ In the first quarter of 2023, 6,545 homes sold, representing a fall of 23.9% from the same period in 2022. Sales were down 8.4% from the final quarter of 2022.

❱ Year over year, sales fell across all the markets covered by this report except El Paso. Compared to the fourth quarter of 2022, sales fell in all markets except Douglas County, where they rose 2.7%.

❱ The year-over-year decline in sales is not surprising given that mortgage rates started to rise in early 2022, causing a flood of buyers to lock in historically low rates while they could. The quarter-over-quarter sales decline was likely due to the 38.9% drop in active listings, as well as seasonal factors. The market remains tight.

❱ Pending sales, which are an indicator of future closings, jumped 31.8% from the fourth quarter of 2022, suggesting that sales may improve in the second quarter.

A bar graph showing the annual change in home sales for various counties in Colorado from Q1 2022 to Q1 2023. All counties have a negative percentage year-over-year change, except El Paso County at 5.1%. Here are the totals: Larimer at -10%, Clear Creek at -13.3%, Adams -22%, Jefferson -22.8%, Park -23.8%, Douglas -26.7%, Arapahoe -27%, Boulder -27.2%, Weld -28.9%, Denver -33.9%, Gilpin -52.9%.

Colorado Home Prices

❱ The average home price fell 1.8% from the same period in 2022 to $625,213. Prices were .4% lower than in the fourth quarter of 2022.

❱ Compared to the final quarter of 2022, prices rose in Jefferson, Arapahoe, Boulder, Larimer, Gilpin, and Park counties, but fell in the other market areas.

❱ Year over year, prices rose in four counties, but fell in the rest of the markets. Home prices in Gilpin County rose dramatically, but the small size of this market makes it prone to significant swings.

❱ Median listing prices rose 3% compared to the fourth quarter of 2022, suggesting that sellers are not overly concerned by higher financing costs. The fact that both listing prices and sale prices are not falling tells me that the price correction that followed the jump in mortgage rates is likely coming to an end.

A map showing the real estate home prices percentage changes for various counties in Colorado. Different colors correspond to different tiers of percentage change. Clear Creek County has a percentage change in the -16.5% to -8.1% range, Adams, El Paso, Park, Douglas, and Jefferson are in the -8% to -3.1% change range, Denver, Weld, and Arapahoe are in the -3% to 1.9% change range, Larimer and Boulder are in the 2% to 6.9% change range, and Gilpin is in the 7%+ change range.

A bar graph showing the annual change in home sale prices for various counties in Colorado from Q1 2022 to Q1 2023. Most counties have a negative percentage year-over-year change. Here are the totals: Gilpin at 22.8%, Boulder at 6.6%, Larimer 3.9%, Arapahoe 0.8%, Weld -0.9%, Denver -1.1%, Adams -3.4%, Jefferson and Douglas - 5.5%, Park -5.6%, El Paso -7.6%, and Clear Creek -12.7%.

Mortgage Rates

Rates in the first quarter of 2023 were far less volatile than last year, even with the brief but significant impact of early March’s banking crisis. It appears that buyers are jumping in when rates dip, which was the case in mid-January and again in early February.

Even with the March Consumer Price Index report showing inflation slowing, I still expect the Federal Reserve to raise short-term rates one more time following their May meeting before pausing rate increases. This should be the catalyst that allows mortgage rates to start trending lower at a more consistent pace than we have seen so far this year. My current forecast is that rates will continue to move lower with occasional spikes, and that they will hold below 6% in the second half of this year.

A bar graph showing the mortgage rates from Q1 2021 to the present, as well as Matthew Gardner's forecasted mortgage rates through Q1 2024. After the 6.79% figure in Q4 2022 and 6.37% in Q1 2023, he forecasts mortgage rates dipping to 6.26% in Q2 2023, 5.78% in Q3 2023, 5.43% in Q4 2023, and 5.28% in Q1 2024.

Colorado Days on Market

❱ The average time it took to sell a home in the markets contained in this report rose 27 days compared to the same period in 2022.

❱ The length of time it took to sell a home rose across all markets compared to the fourth quarter of 2022 with the exception of Clear Creek County, where market time fell 13 days.

❱ It took an average of 47 days to sell a home in the region, which is an increase of 9 days compared to the fourth quarter of 2022.

❱ Even with limited choice in the market, buyers are being selective and taking their time. It will be interesting to see if the pace of sales picks up as we move further into the spring buying season.

A bar graph showing the average days on market for homes in various counties in Colorado for Q1 2023. Denver County has the lowest DOM at 39, followed by Gilpin at 40, Jefferson and Arapahoe at 41, Larimer, Weld, and Adams at 42, El Paso at 44, Douglas at 46, Clear Creek at 49, Boulder at 52, and Park at 87.

Conclusions

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Slowing job growth, the potential for a mild recession this year, and higher financing costs are all impediments to the housing market. However, the market appears to be taking things in stride. Regular readers will be aware that I have been forecasting home prices to soften given all the above factors, which has proved to be accurate. There are signs we may be turning the corner, but we will need to see data from the spring market to confirm if this is the case.

A speedometer graph indicating a balanced market in Colorado in Q1 2023, just a shade toward a buyer's market.

As it stands today, inventory levels, listing prices, pending sales, modestly lower interest rates, and the absorption rate all favor home sellers. However, the number of closed sales, prices, and market time are favoring home buyers. Considering all the data, I do not see the market firmly in favor of either buyers or sellers. However, I see a slight bias in favor of home buyers, so I’ve tipped the needle very slightly in their direction.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Home Design May 11, 2023

Eclectic Interior Design

When decorating your home, it can be hard to decide on just one aesthetic. Maybe you’re a fan of mid-century modern interior design but its minimalistic approach leaves you wanting more. Maybe you love the clean look of a farmhouse style interior but wish it had some of that classic Art Deco flair. Fortunately, there’s an approach you can take where you don’t have to limit yourself to the principles of just one line of design thinking. Eclectic interior design is a smorgasbord of home décor styles that allows your imagination to run wild.

What is eclectic interior design?

Eclectic interior design is a blend of different styles, patterns, eras, and all things home décor. By pulling from seemingly contrasting sources of inspiration, it allows homeowners to create an interior that’s uniquely personalized and lively. Eclectic interiors are inherently busy, so it’s important to focus on leveling the dynamic energy among the pieces and artworks you select to create balance, scale, and proportion.

 

A kitchen and hallway decorated with eclectic interior design. There is a patterned rug hanging on the wall, a small gallery in the kitchen, colorful patterned pillows on a bench in the hallway, and modern industrial lights hanging above a breakfast bar in the kitchen.

Image Source: Getty Images – Image Credit: xavierarnau

 

Decorating with Eclectic Interior Design

With so many shapes and colors at play, creating harmony is vital. Choose a color palette for your home and select pieces that reinforce that section of the color wheel. That way, when you decorate with accent pieces throughout your home, you’ll have a solid base to work from. This will also help you select which neutral colors will best help to balance out your interior spaces. For example, if you’ve settled on blues and browns as your foundational colors, beiges and creams will act as complimentary neutrals while creating a comfortable, welcoming atmosphere.

When it comes to textures and patterns, you’ve got far more leeway with eclectic interior design than many other styles. Have you been waiting to extract your patterned vintage furniture from your storage space? Still waiting to find a home for that ornate gold-framed mirror? Eclectic design may be just what the doctor ordered. With this style, vintage design can pair with modern furnishings and vice versa. Textures help to create contrast throughout your spaces, but even with eclectic design, repeating a texture in a few spots helps to create cohesion. Similarly, make sure your textural pieces fit somewhere within your color palette to create consistency throughout your home.

Create a Gallery Wall

 

A living room decorated with eclectic interior design. It has a gallery wall above the couch with a variety of framed photography and hand drawings. The living room carpet is made up of dozens of pastel cubes, there are colorful pillows and houseplants throughout, and the furniture is minimalist.

Image Source: Shutterstock – Image Credit: Ground Picture

 

A gallery wall is naturally eclectic, making it a perfect way to use up empty wall space while reinforcing this unique home décor style. Create a gallery wall at home by selecting the wall space you’d like to use and mapping out your desired gallery pattern. Once you’ve sketched out your plan, pay a visit to your local framing or hardware store so your artwork can hang professionally and evenly. Assemble your tools, hang your pieces, and admire how a gallery wall can really snap a room together visually. Experiment with different frame colors, designs, and textures that reinforce the rest of your interior. Here’s more on how to curate artwork in your home.

For more info on the various interior design styles, home décor tips and more, visit the Design page of our blog:

Windermere Blog – Design

Market Data February 28, 2023

A Little Perspective

Those of us in the real estate industry agree that the years 2020 to 2022 were anomalies.  During that time there were unique factors which drove abnormally high real estate activity. The number of transactions that occurred in those three years were at levels never seen before.It has become customary to compare the market in 2023 to the years 2016 to 2019 when looking at the number of closed transactions.Here’s what is interesting, while the number of closings so far this year is much less than last year, it is very close to what we saw in the more normal market of 2016 to 2019.Last month, 295 properties closed in Larimer County and 296 closed in Weld.The average January during 2016 to 2019 was 334 in Larimer and 303 in Weld.So, this year is only 12% lower than the average in Larimer County and 2% lower in Weld.

ArchitectureHome Design November 9, 2022

Remodeling Projects to Avoid When Selling!

It’s common for homeowners to feel compelled to remodel their homes before they sell. Renovating the spaces in your home can increase its value and help you compete with comparable listings in your area. However, some remodeling projects are more beneficial than others as you prepare to sell your home. Always talk to your agent to determine which projects are most appealing to buyers in your area.

Remodeling Projects to Avoid When Selling Your Home

When preparing to sell your home, you want to strike the right balance of upgrades. Making repairs and executing renovations will attract buyer interest, but you don’t want to dump so much cash into remodeling that you won’t be able to recoup those expenses when your home sells.

So, how do you know where to focus your efforts? Your agent is a vital resource in understanding your specific situation and will offer guidance on your remodeling efforts to sell your home for the best price. Here are a few projects sellers will want to keep off their to-do lists for the best return on investment.

 

A man and woman discuss a renovation project with their real estate agent as construction contractors work in the background

Image Source: Getty Images – Image Credit: skynesher

 

Minor Cosmetic Upgrades

Whether you’ve made small cosmetic upgrades throughout your home typically isn’t a make-or-break proposition for most buyers. Let’s say you’re questioning whether to invest in a new toilet, vanity, and shower for your primary bathroom before selling. Unless these appliances are damaged and you can repair them without spending too much, it’s okay to sell as is.

Major Upgrades with Long Timelines

For any remodeling project, your agent’s analysis will help you determine its risk/reward potential. This dynamic is heightened with major remodeling projects and home upgrades, due to their higher costs. Four of the six lowest ROI remodeling projects found in the Remodeling 2022 Cost vs. Value Report (www.costvsvalue.com)1 are upscale or major upgrades, all with roughly a 50% return on investment.

These projects come with hefty price tags and longer timelines than minor repairs and upgrades, which can complicate factors as you prepare to sell, especially if you have a deadline to get into your new home. They have the potential to temporarily displace you from the property, meaning you and your household may have to find somewhere else to stay until the project is complete.

  • The Bottom Line: To go through with a major home upgrade before you sell, its schedule must fit with your moving timeline. It should also align with buyer interest in your local market. If the project doesn’t meet these criteria, it should be avoided.

Building Code Violations

The rules dictating whether you can sell your home with building code violations vary region to region. It also depends on what the building code violation is and whether neglecting to update it is deemed a safety hazard. The buyer’s mortgage lender may also have stipulations saying that the loan may not be used to purchase a home with certain features that aren’t up to code, which could lead to them backing out of the deal.

If you’re selling an older home, you’re not obligated to update every feature that may be out of code to fit modern standards. These projects are often structural and require a significant investment. If the violation in question was built to code according to the regulations at the time, then a grandfather clause typically applies. However, you’ll need to disclose these features to the buyer.

Trendy Makeovers and Upgrades

Lastly, it’s best to avoid remodeling projects that target a specific trend in home design. Trends come and go. Timeless design is a hallmark of marketable homes because it appeals to the widest possible pool of buyers. Keep this in mind when staging your home as well. Creating an environment that’s universally appealing and depersonalized allows buyers to more easily imagine the home as their own.

Learn more about remodeling your home as you prepare to sell here: https://bidwellrealestate.com/2022/11/09/should-i-remodel-or-sell-as-is

SellersTroutman Park November 9, 2022

Should I Remodel or Sell As Is?

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.

Market Data September 17, 2022

Local Year over Year Price Increases

Here is a peek at average residential prices along the Front Range through the first half of September and how they have changed versus one year ago:

  • Larimer County = $663,000 up 11.6%
  • Weld County = $511,000 up 4.5%
  • Boulder County = $1,165,000 up 17%
  • Metro Denver = $668,000 up 9%
Contracts September 16, 2022

Contract Contingencies

Do YOU know the most common contingencies in the Colorado Real Estate Commission’s Contract? 🤔 If not, here they are. Take a look at some of the most common real estate contingencies below:
 
✅ Home Inspection Contingency
✅ Financing Contingency
✅ Appraisal Contingency
✅ Home Sale Contingency
✅ Title Contingency
Buyers September 7, 2022

Tips For Homebuyers

💡 Strategically planning your home search by understanding current mortgage rates, keeping your options open, and working with a knowledgeable local real estate professional can be the key to finding your dream home.