Great first time home buying experience
Paul is very knowledgeable about the Denver market in which I ended up purchasing a home. He was able to provide valuable insights into neighborhoods, and the homes we looked at. He was great to work with, and I found a great first home to purchase. The process was all very smooth.
Mortgages
Should I Sell My Denver Home Before it’s Too Late?
Should I Sell My Denver Home Before it’s Too Late?
The U.S. economy has been growing faster over the last few years than any of us would have ever believed. The GDP is climbing at a steady 2-3 percent rate, right were economist say it should. There is really no inflation or deflation, for that matter and unemployment has stabilized at its natural rate of less than 4 percent. Economically it is good time to be an American. This is especially true if you have happen to be a homeowner in the Denver Metro Area.
With its steady growth fueled by higher than average wages in the area’s tech industries and near nonexistent unemployment, Denver has been one of the hottest housing markets in the nation for several years running. Just over the last 10 years, the average sales price of a home, in the area has more than doubled. To say it is a seller’s market is like saying the Rockies are mighty big hills.
With all this good news rolling around you might be wondering why any sane person would pick 2018 as the year to sell their Denver home. After all, the city is sitting on one of the nation’s longest running booms.
There are several reasons why now is the time to take the money and run.
Interest rates are on the rise
The interest rates on home mortgages are now running very low. According to Nerdwallet, the average 30-year fixed-rate mortgage is running around 4.17 percent. But, this isn’t expected to last much longer. One sure sign of a healthy economy, like we are presently seeing, is that the Federal Reserve Bank will start raising interest rates.
While there are no drastic changes expected, it doesn’t take but a shift of a few points to force many potential buyers out of the market. Fewer buyers will naturally lead to lower demand and falling prices.
Tax changes are coming
With the passing of the Tax Cuts and Jobs Act at the end of 2017 major changes in what property taxes and mortgage interest you will be allowed to deduct off your income taxes will undergo major changes. Beginning with the 2018 tax year, mortgage interest will only be allowed on the first $750,000 of your debt. Perhaps more significant to many residents of Metro Denver is that the Property Tax Deduction will now be capped at $10,000.
The possible effects of these changes are twofold. If you live in an area with high city and county property taxes you will very likely feel the crunch when paying your income tax bill in 2019. This makes the idea of collecting the capital gain from your home and reinvesting it in an area with lower tax rates an attractive idea.
The second effect is the flip side of the above. The changes in the tax code will make property in high tax areas less attractive to investors and home buyers alike. Again slowing the market and lowering demand.
The difference between a huge profit from your home and a loss is all in the timing and having the right realtor on your side. Denver has been sitting on a bubble for quite some time now and prices are at their peak. Changes are coming though and they are bound to have an impact on the market. If you have given any thought to selling your Metro Denver property, before they arrive is the time to move.
For more information contact Paul at ‘The Edge Group’. With 20+ years of real estate experience in the Denver area, he is the local expert on property values and market trends you can turn to with confidence. Call 303-886-5991 or email: paul@theedgegroup.net today.
Want Your Offer to Stand Out in a Bidding War? Write a Letter
It is certainly a seller’s market right now, and bidding wars are more common than not. How can you help your offer stand out from the rest? Consider writing a letter.
Writing a letter is the easiest thing a buyer can do to stand out from other buyers. Think about it: When was the last time you wrote a letter? With email, Facebook status updates, tweets, texts, and all those other places to leave a comment in the electronic universe, nobody sends or receives letters anymore. The fact that you took the time to include something personal in your offer will at least get it a closer look from the seller.
Your letter should include something personal. Appeal to the seller’s humanity. Have children? Tell the seller how much your kids would love playing in the backyard, or how the finished basement would make the perfect playroom. Let them know your dog has never had a yard complete with his own doggy door, and how great it would be. Compliment the crown molding. Wax poetic about the wood floors. However, you have to be honest. Nobody likes a canned or empty compliment. Consider thanking the current owners for making time for their house to be available for a showing.
Keep in mind the best letter won’t make up for a low offer in today’s market. If the house in question is the one for you, make sure to put your best offer on the table. A letter to go with your strong offer will help you stand out in the crowd. If you are ready to purchase a home of your very own, give us a call. We will help you find the perfect house to call home.
New Life Coming to Marathon Oil Research Facility
The former Marathon Oil research facility, located in Littleton, has been purchased by WIP Littleton Village LLC. It is destined to become Littleton’s largest mixed-use project. Marathon Oil closed its doors 13 years ago, and the 77 acre property has been vacant since.
The approved plans for the site include retail space, single family homes, multi-family homes, open space, and a central park. The site is located between East Geddes Avenue, and East Dry Creek.
Members of Littleton’s city council are excited for Littleton Village to be built. This will be the first time in years
single family homes have been built in the city center. The mayor is hopeful the development will bring an influx of families.
Employees of Littleton Adventist Hospital are thrilled. Littleton Village is located just south of the hospital, and when the residences are complete, employees who live there will be able to walk or bike to work.
The property has been fenced off and is ready for development to begin.
If you are interested in finding a place to call home in Littleton, give us a call. We will meet all your real estate needs.
Lenders are beginning to offer greater flexibility for mortgages again
Don’t expect the crazy loans that were available a few years ago, but you can expect it to be a bit easier to qualify for a mortgage loan.
Several lending companies are relaxing their credit score caveat if you have a healthy down payment. You also need solid, dependable income to qualify for a lower credit score friendly loan.
Some companies are also bringing back low-down payment loans. Some loans only require as little as three to five percent down. You will need a good credit score, and track record with paying debts. These programs don’t include the FHA loans which only require 3.5 percent down.
Stated-Income loans are making a comeback, mortgage lenders will help perspective borrowers who are self-employed. These loans are not nearly as easy to obtain as they used to be. You will need a big down payment, and the rates are higher than more traditional style mortgage loans. It is believed that climbing rates are driving these relaxed requirements for obtaining a mortgage loan. As the rates slowly climb higher, it’s likely more lenders will relax their requirements for securing a home loan.
Ready to buy a place to call home? Call us! We would love to help all your real estate dreams come true.
The Edge Group LLC 