Market Data • February 28, 2023

A Little Perspective

by Brandon Bidwell

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.

Architecture • Home Design • November 9, 2022

Remodeling Projects to Avoid When Selling!

by Brandon Bidwell

A man and a woman in the midst of remodeling their home discuss whether they should continue with a renovation project

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

Sellers • Troutman Park • November 9, 2022

Should I Remodel or Sell As Is?

by Brandon Bidwell

A young man and woman look at paint swatches against a wall of their home as they remodel.

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.

Loveland Real Estate • Virtual Tour • November 7, 2022

Well-Maintained Home with Acreage

by Brandon Bidwell

42 Tracy Trail Road is a well-maintained home on 2.24 Acres with an oversized, attached 2 car garage and ample opportunity still to build upon. There is plenty of level property to put up a large outbuilding for all your toy storage. Fully fenced back yard with a nicely covered deck to enjoy all the beauty of the Big Thompson Canyon from. Inside there is a fireplace in the living room and a wood stove in the study as well as forced air heating to keep you warm in the winters. This home and property have been very well cared for and it’s just outside the flood plain (according to IRES map’s overlay). The house has not suffered from flood damage. Call (970) 215-1573 to schedule a private tour or click here for more information.

Market Data • September 17, 2022

Local Year over Year Price Increases

by Brandon Bidwell

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

by Brandon Bidwell

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

Market Data • September 15, 2022

Balancing Market?

by Brandon Bidwell

Even though buyer demand has moderated and housing supply has increased in recent months, the market can still be considered a Seller’s Market because inventory is still low. 📉

According to data from NAR, sellers continue to benefit from competitive offers and serious buyers. In July, for example, the average home received 2.8 offers and 39% actually sold above the asking price. 💰

In other words, while the market is in fact cooling off, you certainly haven’t missed your chance to sell your home. Partner with a real estate professional today to get started on your home selling journey! 🏠

Buyers • September 7, 2022

Tips For Homebuyers

by Brandon Bidwell

💡 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.

Economic • Market Data • September 6, 2022

Latest Home Price Index Report

by Brandon Bidwell

The latest Home Price Index report has just been released by the Federal Housing Finance Authority.

They track home price appreciation for the largest metropolitan areas in the U.S. plus state by state appreciation.

Here is the ranking of the top three states for price growth over the last twelve months:

1. Florida = 29%

2. Arizona = 26%

3. North Carolina = 25%

The bottom three states are:

50. North Dakota = 10%

49. Louisiana = 11%

48. Minnesotta = 11%

Colorado came in at #19 with 18% price growth over the last 12 months.

Economic • Market Data • August 28, 2022

New Home Trivia

by Brandon Bidwell

Here’s a trivia question…

The number of new, single-family homes completed in 2022 will most closely resemble which prior year?

If you guessed 1993, you are correct.

Yes, the number of homes built and completed this year is no more than the number from 30 years ago.

In 2022, there will be just over 1 million single family homes constructed in the U.S. which is the same as 1993.

This is much more than the bottom of construction in 2011 which saw just under 500,000 new homes built.

But it is also much less than the top of 2006 which had almost 1.7 million.

Limited new home construction today is preventing anything close to a glut of inventory on the market which, in turn, insulates us from any sort of major price correction.