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Sellers: Now Is the Time to Buy!

by KCM

Falling interest rates coupled with increasing inventory create the ideal market to find the home of your dreams. There's no time like the present to move up! Let's get together to discuss your options.

Preparing to Spring Forward [INFOGRAPHIC]

by KCM

Some Highlights:

  • In the majority of the country, this weekend marks the start of Daylight Savings Time as we set our clocks forward an hour on Sunday at 2:00 AM EST.
  • Whether you plan on buying or selling this spring, these tips could help you ‘spring ahead’ of your competition!
  • Spring brings two things: more buyers & more sellers! Get prepared now to stand out in the crowd!

The Frisco Town Council is considering an overhaul of its short-term rental regulations after receiving estimates that only half of town properties listed on sites like Airbnb and Homeaway are in compliance with current licensing rules.

The most likely change, which could take effect by November, would scrap "umbrella licensing," which allows property management companies to list their entire short-term rental portfolios under a single license. That leaves thousands of revenue dollars on the table and prevents the town from precisely monitoring STR numbers.

A recent third-party analysis found approximately 850 short-term rental listings in Frisco, but only 237 active vacation rental licenses — 25 of which were umbrella licenses. Town staff estimate that even if umbrella licenses account for 200 units, the town has still only achieved a 50 percent compliance rate.

"We've known about this for a couple years, we haven't put the resources into it, but I think now we need to get more staff involved and start looking at it pretty closely," Frisco Mayor Gary Wilkinson said during a council work session on Tuesday.

More stringent measures like capping STRs in town are on the table, but council seemed more inclined to strengthen and better enforce the current licensing system rather than strictly curtails rentals. More public hearings will precede any rule changes, council said.

There are plenty of benefits to short-term rentals, which keep the lights on in town and generate foot traffic on Main Street. And while recent tax revenue data suggest they may be taking a bite out of the hotel business, lodging isn't necessarily a zero-sum game. Renting out a spare room can also help local homeowners stay afloat financially.

Perhaps the most important question for short-term rentals, however, is their impact on housing for locals. While STRs have taken on a sort of symbolism for residents who chafe at the lack of long-term housing options, their actual impact on the rental market is unclear.

"Do we know that, if we limit short-term rentals, those owners are going to turn them into long-term rentals or just sit vacant?" councilman Rick Ihnken asked. "I don't know if we can get that answer, but that's the big unknown for now."

If owners can make more money renting to vacationers day-to-day, the thinking goes, they're less likely to lease their units to locals year round. But testing that theory is almost impossible. Historical data are lacking or incomplete, and there are a slew of factors influencing how owners choose to make money off their properties.

"Impacts on long-term employee housing supply are incredibly difficult to quantify as historical data sets are unavailable as to how many units were once available for long-term rent, how many of those units were actually rented by local employees, and how many of those units may have converted to short-term," Frisco town staff noted in a report to council.

Academic research indicates that short-term rentals can limit local housing. One study by an affordable housing advocacy group found that STRs reduced New York City's housing stock by 10 percent. A paper published in the Harvard Law and Policy Review similarly found that STRs were exacerbating Los Angeles' housing crisis.

Frisco, of course, is no coastal metropolis, and it's unclear how STRs might impact the rental market in a town where roughly 70 percent of properties are second homes.

Breckenridge, like all of Summit County, has a high proportion of second homes as well. In 2016, the town commissioned a study that found STRs had a "significant" impact on local housing, reducing the available stock while increasing the demand for workers. The findings, however, were approximate and limited by data availability.

Nick VanDer Sluis, who lives in Denver but rents two condos in Breckenridge short-term, bought his first unit four years ago to avoid Interstate 70 traffic. Renting it out on Airbnb allowed him to use it whenever he liked while still making money off of it, something he couldn't do with full-time tenants.

Breckenridge is not considering new regulations. However, Sluis said that if he were dis-incentivized to rent short-term — perhaps through a cap system that made licenses expensive — he would probably sell his units rather than rent them long-term.

"It's a two-fold problem," he said. "There's a shortage of affordable housing but there's also a shortage of hotels and rooms to rent to drive the industry there. So that's a tough call. If you start limiting short-terms, you're helping one market and hurting another."

Paty Frost, who also lives in Denver and rents a unit in Breckenridge short-term, also enjoys the flexibility of Airbnb, which allows her to bring in some extra money when she isn't staying at her place.

"We haven't discussed doing long-term, so the economics of it wasn't even really part of the decision," she said. "We just wanted to still be able to use the place."

There are probably many owners like Sluis and Frost, whose units would be empty most of the year if they weren't being rented short-term. And while some units that might otherwise be rented to locals have certainly been converted to short-term, it's an elusive number.

One of the stated goals of the town's STR regulations is to "preserve and build Frisco's sense of community as a place where people live year round." But in a town with so many second homes, short-term renting may actually add life to blocks that might otherwise sit empty.

"Whether it's good or bad for neighborhoods, at least there are lights on in these communities and people going to our businesses," councilman Hunter Mortensen said. "I went for a walk with the dog today and walked by four driveways that had not been plowed all winter. To me, that's more of a concern than short-term rentals."

Home Ownership Matters

by House Logic- Realtors

 

 

 

 

 

 

 

 

 

Home ownership has a significant impact on net worth, educational achievement, civic participation, health, and overall quality of life. And, home ownership helps create jobs—lots of them—right here at home.

Owning your own home is not only beneficial to you; it also helps create jobs and stimulate the economy.
 

Home Ownership matters…to people, to communities, and to America. Why?

For every two homes sold, one job is created in the U.S.

Each purchase generates as much as $60,000 in economic activity over time.

The home ownership debate

Some who care about creating jobs also argue that home ownership may be overrated, and that we might be better off as a nation of renters.

If that’s of concern to you, follow the debate about federal government incentives to home ownership—the outcome of which will determine whether the average American can still get an affordable mortgage and whether home owners can continue to deduct their mortgage interest as a benefit of home ownership. 

Stay in the know on this debate by subscribing to the HouseLogic newsletter and following us on Facebook and Twitter. Sign up in the “Stay Connected” box at the top of this page.

Read about the issues affecting you as a home owner right now:

Home ownership

It Pays to Support Responsible Home Ownership
Protect your home’s value and build stronger communities.

Home Ownership Matters Bus Tour Hits the Road
The Home Ownership Matters bus tour, sponsored by the NATIONAL ASSOCIATION OF REALTORS®, is revving up to celebrate the benefits of home ownership with you.

Home Ownership Matters Ad

Mortgages

How Fannie Mae, Freddie Mac Save You Money
Home owners who use Fannie Mae and Freddie Mac mortgages save thousands of dollars in interest payments each year.

Show Your Support for FHA
FHA supports home values by providing a steady source of mortgage financing for families across the country, but critics worry it has taken on too much risk.

Mortgage deduction

Your Mortgage Deduction: Turn Tax Savings into Home Value
Sock away your mortgage deduction tax savings, and you’ll have a nice cushion for life’s necessities—and a few luxuries. Here’s how a typical household might spend their tax savings at various life stages.

6 Mortgage Interest Deduction Myths
Think losing the mortgage interest deduction would be no big deal? We bust seven myths to show why the cost is bigger than you think.

Deduct Mortgage Interest and Home Equity Loans
Deducting mortgage interest, as well as interest on home equity loans and HELOCs, can save you money on taxes.

MID app
Estimate your tax savings based on the mortgage interest deduction.

Before You Make an Offer, Here Are 4 Tips for Success!

by KCM

So, you’ve been searching for that perfect house to call a ‘home,’ and you finally found it! The price is right, and in such a competitive market, you want to make sure that you make a good offer so that you can guarantee that your dream of making this house yours comes true!

Freddie Mac covered “4 Tips for Making an Offer” in their Executive Perspective. Here are the 4 tips they covered along with some additional information for your consideration:

1. Understand How Much You Can Afford

“While it’s not nearly as fun as house hunting, fully understanding your finances is critical in making an offer.”

This ‘tip’ or ‘step’ should really take place before you start your home search process.

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and will allow you to make your offer with the confidence of knowing that you have already been approved for a mortgage for that amount. You will also need to know if you are prepared to make any repairs that may need to be made to the house (ex: new roof, new furnace).

2. Act Fast

“Even though there are fewer investors, the inventory of homes for sale is also low and competition for housing continues to heat up in many parts of the country.” 

The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.

Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as soon as possible.

3. Make a Solid Offer

Freddie Mac offers this advice to help make your offer the strongest it can be:

“Your strongest offer will be comparable with other sales and listings in the neighborhood. A licensed real estate agent active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer based on their experience and other key considerations such as recent sales of similar homes, the condition of the house and what you can afford.”

Talk with your agent to find out if there are any ways that you can make your offer stand out in this competitive market!

4. Be Prepared to Negotiate

“It’s likely that you’ll get at least one counteroffer from the sellers so be prepared. The two things most likely to be negotiated are the selling price and closing date. Given that, you’ll be glad you did your homework first to understand how much you can afford.

Your agent will also be key in the negotiation process, giving you guidance on the counteroffer and making sure that the agreed-to contract terms are met.”

If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.” If the inspector uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller, or cancel the contract.

Bottom Line 

Whether buying your first home or your fifth, having a local real estate professional who is an expert in their market on your side is your best bet to make sure the process goes smoothly. Let’s talk about how we can make your dreams of homeownership a reality!

Thinkin of Selling? You should act now!

by KCM Blog


If you thought about selling your house this year, now more than ever may be the time to do it! The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned the concept of supply and demand: the best time to sell something is when supply of that item is low and demand for that item is high. That defines today’s real estate market.

Lawrence Yun, Chief Economist at the National Association of Realtors, recently commented:

“Buyer interest is solid, but there is just not enough supply to satisfy demand. Prospective buyers are being sidelined by both limited choices and home prices that are climbing too fast.”

Yun goes on to say:

"Current demand levels indicate sales should be stronger, but it's clear some would-be buyers are having to delay or postpone their home search because low supply is leading to worsening affordability conditions."

In this type of market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction, including the inspection, appraisal and financing contingencies.

Bottom Line

As a potential seller, you are in the driver’s seat right now. It might be time to hit the gas.

Homeownership Is a Good Financial Investment!

by KCM Blog

According to a recent report by Trulia, “buying is cheaper than renting in 100 of the largest metro areas by an average of 33.1%.” The report may have some people thinking about buying a home instead of signing another lease extension, but does that make sense from a financial perspective?

Ralph McLaughlin, Trulia’s Chief Economist explains:

“Owning a home is one of the most common ways households build long-term wealth, as it acts like a forced savings account. Instead of paying your landlord, you can pay yourself in the long run through paying down a mortgage on a house.”

The article listed five reasons why owning a home makes financial sense:

  1. Mortgage payments can be fixed while rents go up.
  2. Equity in your home can be a financial resource later.
  3. You can build wealth without paying capital gains.
  4. A mortgage can act as a forced savings account.
  5. Overall, homeowners can enjoy greater wealth growth than renters.

Bottom Line

Before you sign another lease, let’s get together and discuss all your options.

The Deal of the Century??

by Freddie Mac

The Deal of the Century??

Recently, Freddie Mac published a blog post titled Mortgage Rates: Still the Deal of the Century. They explained that, if you are planning to purchase a home, now may be the time:

“If you are in the market to buy a home, today's average mortgage rates are something to celebrate compared to almost any year since 1971.”

And they let their readers know that there is no guarantee that rates will remain this low:

“Over the past few years, we've enjoyed a long run of historically low mortgage rates. While no one expects them to change dramatically overnight, they are expected to head up. Most experts agree that mortgage rates will drift up in the coming months to end the year approaching 4.50%... Buying a home is a big investment – perhaps the biggest one you'll make in your life. So, it's important to be sure you are ready to make that purchase. If you are ready, today's rates are not to be missed.”

The article went on to calculate what the principal and interest payment would be based on a $200,000 fully amortizing mortgage at different times in history. Mortgage Payments | Keeping Current Matters

Here is a look at rates over the decades:

Historic Mortgage Rates by Decade | Keeping Current Matters

Here is a look at rates over the last four years and what Freddie Mac projects for next year:

30 Year Fixed Rate Mortgage Rates | Keeping Current Matters

Bottom Line

If you are thinking of buying your first home or looking to move up to your dream home, now may be the time to do it.


   

Desire to Own a Vacation Home Growing

by Allison Simson

Desire to Own a Vacation Home Growing

Posted: 14 Apr 2015 04:00 AM PDT

Desire to Own a Vacation Home Growing | Keeping Current Matters

The National Association of Realtors just released their 2015 Investment and Vacation Home Buyers Survey which revealed that vacation home sales boomed in 2014 to above their most recent peak level in 2006. NAR Chief Economist Lawrence Yun said favorable conditions are driving second-home sales:

“Affluent households have greatly benefited from strong growth in the stock market in recent years, and the steady rise in home prices has likely given them reassurance that real estate remains an attractive long-term investment. Furthermore, last year’s impressive increase also reflects long-term growth in the numbers of baby boomers moving closer to retirement and buying second homes to convert into their primary home in a few years.”

The report shows:

  • Vacation-home sales catapulted to an estimated 1.13 million last year
  • This was the highest amount since NAR began the survey in 2003
  • Vacation sales were up 57.4% from 717,000 in 2013
  • Vacation-home sales accounted for 21 percent of all transactions in 2014, their highest market share since the survey was first conducted

Bottom Line

If you have been considering that waterfront condo in Florida, that ranch in Wyoming or that special getaway you someday will retire to, maybe now is the time to act. Prices are good and mortgage rates are at historic lows. Contact a local real estate professional to help you put your dreams to a plan.

Billionaire Says Real Estate is Best Investment Possible

by Allison Simson

Billionaire money manager John Paulson was interviewed at the Delivering Alpha Conference presented by CNBC and Institutional Investor. During his session he boldly stated:

"I still think, from an individual perspective, the best deal investment you can make is to buy a primary residence that you're the owner-occupier of.”

Who is John Paulson?

Paulson is the person who, back in 2005 & 2006, made a fortune betting that the subprime mortgage mess would cause the real estate market to collapse. He understands how the housing market works and knows when to buy and when to sell. What do others think of Paulson?

According to Forbes, John Paulson is:

“A multibillionaire hedge fund operator and the investment genius.”

According to the Wall Street Journal, Paulson is:

“A hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were.”

Why does he believe homeownership is such a great investment?

Paulson breaks down the math of homeownership as an investment:

"Today financing costs are extraordinarily low.”

The latest numbers from Freddie Mac show us that you can still get a 30-year mortgage for under 4%.

“And if you put down, let's say, 10 percent and the house is up 5 percent,” as many experts predict, “then you would be up 50 percent on your investment."

How many are seeing a 50% return on a cash investment right now?

Paulson goes on to compare the long term financial benefits of owning verses renting:

“And you’ve locked in the cost over the next 30 years. And today the cost of owning is somewhat less than the cost of renting. And if you rent, the rent goes up every year. But if you buy a 30-year mortgage, the cost is fixed.”

Bottom Line

Whenever a billionaire gives investment advice, people usually clamor to hear it. This billionaire gave simple advice – if you don’t yet live in your own home, go buy one.

Displaying blog entries 1-10 of 33

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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