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Prepaying Your Mortgage

by Allison Simson

Happy Tuesday to YOU


Having debt, no matter which kind, can be a huge stressor.

Even “good debt” like a mortgage can become frustrating when you see how much you are paying in interest instead of paying down the principle cost of the home.

In the end, you could end up paying double the price of the home by the time you pay it off completely.

By prepaying your mortgage, you can cut down on the interest you owe, while also paying your home off sooner and building equity faster. I recently read an article on Realtor.com about prepaying for a mortgage, and I wanted to lay the options out for you today.

Here is a link to the full article, but to keep things short and sweet, here’s what you need to know about prepaying your mortgage:

  • The first thing you need to do is figure out your interest rate and the balance on your mortgage. Then you can decide how much you want to, or are able to, prepay.
  • Prepaying and refinancing are not the same thing. The point of refinancing is to get a lower interest rate, and it requires you to get an all-new mortgage with new terms.
  • Prepayment is an investment decision. You need to consider your risk, and also your reward.
  • Depending on your tax situation, prepaying may not be a wise investment decision. Prepaying reduces mortgage interest, which is tax deductible.

Getting rid of other debt, such as credit card and student loan payments, may be a smarter decision for you than prepaying your mortgage, but each situation is different.

A lot of home buyers in Colorado are considering prepaying their mortgages, so I wanted to keep you informed on exactly what is going on.

If you are interested in taking a look at any Summit County homes for sale, click here to get full access to the MLS.

If you’re considering selling your home, I invite you to click this link to get an accurate valuation of what your Summit County property could sell for in our market.

If you have any questions in the meantime, feel free to give me a call or shoot me an email. I look forward to hearing from you!

Check out this new listing...it's just lovely and would make a fun, Keystone getaway! 

It's less than two months 'til A-Basin and Loveland open!  

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91 RIVER RUN RD

Price: $468,000

Beds: 2

Baths: 2

Sq Ft: 1103

Like great art, a lovely place that is utterly compelling from every angle. Furnished w/ charm & class, the huge vaulted ceilings throughout open the light and look of this special place. Overlooking the heart of River Run Village & a short walk to ...

View this property >>

Dog-Daze of Summer

by Allison Simson

Good Morning to YOU

Summer is fleeting in Summit County in so many ways...besides the spectacular (albeit short) summer weather, their are enough festivals and fairs to keep you busy non-stop!  Besides the fun events, here is some info on fun facts for the county!

They are planning on sprucing up the Dillon Ampitheater.  After 25 years, here's the early scoop...Dillon Ampitheater update

The pine beetles have mostly run their course, but High Country foresters report rising infestation of pine needle scale 

Are you a mountain bike enthusiast? Summit County Bike Guide: Spruce Creek Road

A toll on I-70?  Also, boating rules for the lake!

Enjoy these dog-daze of summer! And if the heat is melting your brain, this mountain getaway could be the ticket....

See you on the trails!

Tuesday Morning Coffee-Strong June Pending Home Sales

by Allison Simson

Happy Tuesday to YOU!  

Here is some interesting information regarding summer sales and how they affect us here in Summit County.

Pending Home Sales Remain Strong In June

The National Association of REALTORSPending Home Sales Index is “a forward-looking indicator based on contract signings”. The higher the Pending Home Sales Index number, the more contracts have been signed by buyers that will soon translate to sales. The latest index was released last week, with the headline:

Pending Home Sales Dip in June

May’s Index levels were the highest recorded in the last 9 years. The small 1.8% decline from May remains 8.2% over last June and the third highest reading in two years. The NAR headline, while accurate, isn’t the best representation of what really happened. NAR’s Chief Economist Lawrence Yun points towards “low inventory levels in many markets” leading to “reduced choices” at higher price points for the small decline in National Pending Home Sales. In every major region of the country, pending sales are up year-over-year as shown by the graph below: Pending Home Sales By Region | Keeping Current MattersYun goes on to say that there needs to be a significant influx of inventory into the market before anything will change.

"Unfortunately, because nearly all of these sellers are likely buying another home, there isn't a net increase in inventory. A combination of home builders ramping up construction and even more homeowners listing their properties on the market is needed to tame price growth and give all buyers more options." 

So What Does This Mean To Buyers?

There is a lot of competition out there right now for your dream home. Prices are going to continue to climb, act now before you are priced out of your future home.

What Does This Mean to Sellers?

If you are on the fence about listing your home for sale and debating whether now is the time to move on with your plans of relocating… don't wait! There are more buyers that are ready, willing and able to buy their first, second, third, vacation, or investment property now than there has been in years! The supply of homes for sale is not keeping up with the demand of these buyers. Listing your home for sale now will give you the most exposure to buyers and the best sales price.

Bottom Line

Whether you are planning on buying or selling a house this year, waiting to act no longer makes sense. While the Summit County sales trends tend to lag behind the national economy by as much as 24 months, we are currently seeing strong summer numbers.

If you would like more specific information about how this affects your buying or selling decisions here in Summit County, please reply to this email and let us know!

See you on the trails! 

Check out this lovely condo in Dillon...it really is a gem: 

 

 

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168 Buck Ridge RD

Price: $335,000

Beds: 2

Baths: 2

Sq Ft: 975

Full of style and grace, this charming retreat is a perfect getaway. Lovely slate floors, granite counters, solid 4 panel doors, rock fireplace, stainless steel appliances. Sun streams in the windows of this end unit w a storage area for all you Sum...

View this property >>

Price It Right From the Start!

by KCM Blog

Selling Your Home? Price It Right From the Start!

In today’s market, where demand is outpacing supply in many regions of the country, pricing a house is one of the biggest challenges real estate professionals face. Sellers often want to price their home higher than recommended, and many agents go along with the idea to keep their clients happy. However, the best agents realize that telling the homeowner the truth is more important than getting the seller to like them. There is no “later.” Sellers sometimes think, “If the home doesn’t sell for this price, I can always lower it later.” However, research proves that homes that experience a listing price reduction sit on the market longer, ultimately selling for less than similar homes. John Knight, recipient of the University Distinguished Faculty Award from the Eberhardt School of Business at the University of the Pacific, actually did research on the cost (in both time and money) to a seller who priced high at the beginning and then lowered the their price. In his article, Listing Price, Time on Market and Ultimate Selling Price published in Real Estate Economics revealed:

“Homes that underwent a price revision sold for less, and the greater the revision, the lower the selling price. Also, the longer the home remains on the market, the lower its ultimate selling price.”

Additionally, the “I’ll lower the price later” approach can paint a negative image in buyers’ minds. Each time a price reduction occurs, buyers can naturally think, “Something must be wrong with that house.” Then when a buyer does make an offer, they low-ball the price because they see the seller as “highly motivated.” Pricing it right from the start eliminates these challenges. Don’t build “negotiation room” into the price. Many sellers say that they want to price their home high in order to have “negotiation room.” But, what this actually does is lower the number of potential buyers that see the house. And we know that limiting demand like this will negatively impact the sales price of the house. Not sure about this? Think of it this way: when a buyer is looking for a home online (as they are doing more and more often), they put in their desired price range. If your seller is looking to sell their house for $400,000, but lists it at $425,000 to build in “negotiation room,” any potential buyers that search in the $350k-$400k range won’t even know your listing is available, let alone come see it! One great way to see this is with the chart below. The higher you price your home over its market value, the less potential buyers will actually see your home when searching. Price & Visibility | Keeping Current MattersA better strategy would be to price it properly from the beginning and bring in multiple offers. This forces these buyers to compete against each other for the “right” to purchase your house. Look at it this way: if you only receive one offer, you are set up in an adversarial position against the prospective buyer. If, however, you have multiple offers, you have two or more buyers fighting to please you. Which will result in a better selling situation? The Price is Right Great pricing comes down to truly understanding the real estate dynamics in your neighborhood. Look for an agent that will take the time to simply and effectively explain what is happening in the housing market and how it applies to your home. You need an agent that will tell you what you need to know rather than what you want to hear. This will put you in the best possible position.

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Photo of Summit Real Estate Real Estate
Summit Real Estate
The Bright Choice
330 Dillon Ridge Way, Suite 10
Dillon CO 80435
970-468-6800
800-262-8442
Fax: 970-468-2195

Allison Simson, Owner/Broker, is a licensed Colorado Real Estate Broker