June is National Home Ownership Month
Today’s market information is about June being National Home Ownership Month. The question that really arises is, is it better to buy in today’s market or is it better to rent? That’s a great question and one that we get a lot. If you’re in Denver, rental rates are absolutely sky high. The rental rates are competing with Seattle, Dallas, Los Angeles, and Miami. It’s really, really expensive to rent in Denver and in a lot of cases, it’s cheaper to buy.
Now, there are a lot of advantages to buying versus renting, for example, the interest that you pay on your mortgage is still deductible and although lawmakers have been talking about getting rid of it for years, I don’t think that’s going to happen.
Renting does have some advantages as we’ve talked about and I’ll be talking about this more in a blog next month, but you can try a neighborhood if you’re renting and you aren’t tied down. But again, you don’t own it and those payments don’t go to anything but the landlord. If you want more information on buying versus renting, call us and we’ll explain some of the statistics that support your investment.
You’ve heard me say that we’re only producing 1.1 million homes per year that are for sale, this means that we’re in a deficit of about 900,000 and why we’re seeing an inventory shortage in a lot of parts of the country.
“Dear Colorado Dream House Team: We got involved in a builder contract, but did not realize that we could not get our earnest money back when we needed to back out. Is there anything that we can do?”
Most likely not, we advise our sellers very carefully, that when you’re getting involved in a builder contract, it is written up by the builder’s attorney and in most cases, it’s in their favor. In many cases, like the state of Colorado, there are no contingencies built in to get you out of it with your earnest money. You have to know this going in. I suppose there could be some circumstances where you could possibly take the builder to court, but I don’t see the consumer win very often in these cases.
“Dear Colorado Dream House Team: We’re thinking about buying a home with a pool. We are not sure what that will do when we go to resell.”
A pool is 50/50. Half of the buyers that come in will be looking at your house most likely because of the pool. The other half will look at it as a money pit, it’s a liability for them and you may be alienating that half of potential buyers.
“Dear Colorado Dream House Team: How do you determine the value of a home?”
Great question. It is a thoroughly researched, highly educated, scientific guess. We do our homework, look at your location, look at the neighborhood, look at the finishes, look at the layout, we look at all of the comparable sales and drill it down to a fair market price. Do we nail it all the time? No. At the end of the day, you don’t know what the market is going to do and you don’t know what a buyer is going to do when it’s on the table. The purpose of finding the right price is to find the sweet spot, where we didn’t leave money on the table and we didn’t over price it. The value of your home is not determined by what the buyer will pay, it is determined by the market. The sales of homes within a half-mile radius of your home.
That’s it for today, feel free to reach out to us at 720-446-6325 or email us at email@example.com.
Have a great weekend everybody and we’ll see you next time.