Buying and Selling a Home at the Same Time

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Successfully selling a home and buying a home are significant accomplishments on their own, but when their timelines cross it can be difficult to manage both. If you’re thinking about doing both simultaneously, it’s equally important to understand the steps you can take to make the process go smoothly as it is to have a backup plan in case it doesn’t. Above all, the balancing act required to pull off both deals highlights the importance of working closely with a trusted and experienced real estate agent.

Do I buy or sell first?

One can imagine a perfect world in which the two transactions go through one right after the other. However, this is not usually the case. So, should you list your current home first or start by putting in offers on a new one? There are pros and cons to both.

Selling your current home first allows you to make offers on a new home with cash in your pocket, increases your buying power, and avoids having to juggle two mortgages simultaneously. On the other hand, it creates a gap of residence, often leaving homeowners wondering where they’ll stay until they move into their new home or whether they may need to rent before they can buy again. Sellers may also negotiate a rent-back agreement with the buyers, allowing them to rent the house from the new owners before they move in.

Buying before selling solves the need for any temporary housing and makes the overall moving process much easier. Having a residence established ahead of time means you’ll only have to move once, which can save you some serious stress during this time of transition. Oppositely, buying a new home before you sell your current one will put an added strain on your finances. Having two concurrent mortgages equates to taking on more debt, which could result in less-than-favorable loan terms for purchasing your new home. Without the lump sum generated by a home sale in your pocket, coming up with enough money for a down payment may be a challenge and obtaining private mortgage insurance (PMI) may be in the cards. Finally, buying before selling comes with an obvious assumption—that your current house will sell.

Ultimately, the order of operations depends on your situation. Perhaps you’re moving due to a change of employment, and you need to direct all your energy toward buying a new home by a certain date before you can even think about selling your current one. No matter which route you take, it’s important to communicate your timeline to your listing agent or your buyer’s agent so they can strategize accordingly.

Buying and Selling a Home at the Same Time 

Local Market Conditions

Buying and selling at the same time will come with a certain duality: at each step in the process, you’ll have to balance your responsibilities as both a buyer and a seller. For example, when assessing your local market conditions, you’ll be looking at not one, but two housing markets.

  • Seller’s Market: Selling in a seller’s market means that that you’ll need to be prepared to move once you list, since you could be looking at a short selling timeline. However, relying too heavily on the assumption that your house will sell quickly could make things dicey down the road. If you’re buying in a seller’s market, finding a new home may take longer than expected. You could potentially be waiting weeks or months for an offer to get accepted.
  • Buyer’s Market: Selling in a buyer’s market typically means that homes stay on the market longer. If you proceed with a new home purchase just after you’ve listed your current house, know that it may take a while to sell. If you’re buying in a buyer’s market you can afford to be picky, knowing that time is on your side. With fewer people buying homes, sellers will be more flexible, giving you leverage to negotiate your contingencies.

Having a Backup Plan

If only you could wave a magic wand and make both transactions go through as planned. That’s why it’s important to have a backup plan in place to right the ship should things go sideways at any point in the buying or selling process. Talk to your agent about which options may be right for you. Here are a few:

  • Sales Contingency: Buying your new home with a sales contingency allows you to opt out of the purchase contract if your home doesn’t sell by a specified date. Purchasing contingent on the sale is rare in highly competitive markets.
  • Bridge Loan: If your current home hasn’t sold yet and you’re not able to afford the down payment on a new home, a bridge loan may be a fitting solution. Bridge loans can be used to cover the down payment on a new house and are repaid once your existing home has sold.
  • Rent-Back Agreement: A rent-back agreement is a clause in the sales contract that allows the seller to rent their old home from the buyer for an agreed-upon period of time before the buyer moves in. This can be especially helpful in situations when the seller is having trouble finding a new home.

For more information on buying and selling a home at the same time, give your local Windermere office a call to get connected with an experienced agent!

The post Buying and Selling a Home at the Same Time appeared first on Windermere Colorado REALTORS.

How to Rent Out Your Vacation Home this Summer

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A second home can be more than an escape from daily living, it can be a source of income. For those who own a vacation home, summer is full of opportunities to open your doors to renters while still enjoying the benefits of having your own personal getaway. This approach to home ownership can be a balancing act, but with the right preparation and know-how, you can turn your vacation property into an income-producing investment.

Renting Out Your Vacation Home in Summer

Splitting the use of your vacation home with renters can oftentimes result in quick turnaround times between visits, so it’s important to avoid falling behind on your task list to keep each transition and visit as smooth as possible. To help with this process, consider hiring professional cleaners to ensure the home is presentable, clean, and fresh for each guest’s stay. Listing your property on short-term rental sites like AirBnB and VRBO help increase your property’s visibility and can be a useful tool for managing the rental process, especially if you’re having a difficult time attracting renters.

If you’ll be staying at your vacation home between renters, be sure to schedule those dates ahead of time so you can block them off from visitors. A mix-up in scheduling only creates added stress and will negatively impact your guests’ experience, and potentially the online reviews.

 

Pricing Your Vacation Rental

Get the best return on your investment by offering a competitive rate, including on popular weekends. It’s common for homeowners to increase prices for popular summer dates like the Fourth of July and Labor Day weekend. These are the times when people are flocking to vacation getaways and your prices should reflect the increase in demand. Because competition among renters is high during summer, making your home stand out amongst other properties in your area is a worthy investment. Boosting the curb appeal, replacing appliances, upgrading linens, installing high-speed Wi-Fi, and providing a workspace are all ways you can give your vacation home a competitive advantage.

 

Personalize Your Vacation Rental

As a host, it’s a good idea to add personal touches to improve your guests’ experience and make them feel at home. Add décor and treats tailored to your guests’ stay, especially if they’re celebrating a special occasion or life event. Little details like adding a personalized note, flowers, and treats from local hot spots will help make their experience one they won’t soon forget.

 

A beach house living room with colorful decorations.

Image Source: Getty Images

 

Before Renting Out Your Vacation Home

The regulations of the short-term rental market vary by location. Before you rent out your vacation home this summer, understand the rules in your area. For instance, if you belong to a homeowners association, they may have by-laws in place that restrict your ability to rent your property.

Review your homeowners insurance policy to understand whether you are covered while guests are staying in your home. It is likely that you will need to obtain a landlord insurance policy to cover your property while it’s being rented. While some companies offer it as a rider policy that can be added onto your existing homeowners insurance, obtaining a separate policy may be required for adequate coverage. A typical landlord insurance policy will cover property damage, liability, and rental income loss. When shopping around for landlord insurance, find the policy that best fits the needs of your property.

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10 Tips for Sustainable Gardening

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It’s the time of the year that many homeowners start spending more time in the garden. Having a healthy garden is one of the best ways to create a sustainable home and reduce your household’s carbon footprint. Here are some eco-friendly tips that will help to make your garden even more sustainable.

 

1. Compost Your Waste

Composting, which puts your natural waste to good use, is the cornerstone of any sustainable garden. All grass clippings, dead leaves, plants, flowers, and the like are rich in nutrients. By composting, you provide your garden with a natural fertilizer, free of contaminants. Not only will this provide nourishment, but it will also help to produce healthier and tastier food.

 

2. Mulching

If having a sustainable garden is your goal, it’s important to treat your soil with care. Mulching enriches the soil and ensures it’s as healthy as can be. Mulch conserves the moisture in your soil, ensuring it won’t dry out. It also reduces weed growth and naturally moderates the temperature of the soil. Mulching can cover either bare soil or freshly planted food and flowers.

 

3. Garden Design

It’s natural to want to accentuate the beauty of your garden when designing it, but the sustainable gardener will prioritize giving plants what they need. Take into consideration which plants need direct access to sunlight, which need the most space in the garden, and any special requirements a plant may need to inhabit optimal growing conditions.

 

4. Use Natural Weed Killers

One of the pillars of organic gardening is to reduce the use of chemicals whenever and wherever possible. Homemade recipes involving vinegar and corn gluten meal are effective substitutes for harmful, chemical-based weed killers. Whichever method you choose, it’s important to weed by hand often.

 

5. Use Water Efficiently

Substantial watering is critical to keeping your garden healthy, but overwatering is a common practice and leads to an unsustainable garden. Research the amount of water your plants and flowers need to make sure you aren’t overwatering. If you live in a rainy climate, rain barrels are a useful tool as their function is to catch and conserve the water from your downspouts.

 

6. Animal Manure

For a more sustainable garden and even healthier soil, consider adding animal manure. Chicken, sheep, and cow manure are all popular choices. Rich in nutrients, it can be used both as a fertilizer and as a soil conditioner. Make sure the manure you purchase is free of pathogens and ask about the recommended window of time from application to harvest before you begin using it.

 

7. Go Local

Planting natively is a fast ticket to sustainable gardening. Native plants are innately acclimated to local climate conditions, making them easier to grow and maintain. Native plants often require less water to grow due to their familiarity with the soil and rainfall in your region, which cuts down on your garden’s total water intake.

 

8. Collect Dried Seeds

Believe it or not, you can save your seeds and sow them next year. Wait until the seed is fully ripe before you collect it. It’s important to gather seeds when the weather is dry and to store them in a dry place. To produce healthy plants in the future, the seed must be completely dry.

 

9. Control Garden Slugs

Slugs are known to wreak havoc on gardens, eating through leaves and fruit, leaving a trail of destruction. There are many ways of controlling slugs in your gardens, but some may do more harm than good. If you choose to use slug bait, go organic. Many slug baits contain chemicals that are highly toxic to other animals.

 

10. Replace Your Gas Mower

How else can you reduce your garden’s carbon footprint? Replace your gas mower with a more sustainable alternative. Electric mowers and push mowers are functional and more eco-friendly replacements. For added sustainability, consider replacing your other gas-powered equipment, such as trimmers and leaf blowers.

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Tax Confusion

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Did you know the value of your property according to the County Assessor is not the value of your property today?

Property owners up and down the Front Range recently received a postcard from their local County Assessor’s office with their new valuation.

Colorado properties are reappraised every two years on odd years.  The updated valuations determine how much property tax is paid.

Each County has their own unique processes and models for valuation, however…

All Counties must only consider comparable properties that sold between July 1, 2018 and June 30, 2020.

The value on your postcard is what your County thinks your property was worth almost a year ago.

As you are likely aware, the market today is significantly different than it was 11 months ago.  It’s actually quite different than it was 11 weeks ago!

The postcards with the new valuations tend to prompt very reasonable questions like:

  • What do I do if I don’t agree with the Assessor?
  • What is my property really worth?

We are happy to help you with either of these questions.

Our team is well-versed in the tax protest process, can help you research comparable properties and can also show you what your home is worth today. Just reach out to us if we can help you. The deadline to protest your value is June 1st.

The post Tax Confusion appeared first on Windermere Colorado REALTORS.

Renovating Your Short-Term Rental

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Renovating your short-term rental property will not only keep it in peak condition but will also help it stand out to potential renters. Completing remodeling projects with the goal of increasing the return on your investment is a matter of identifying which renovations make sense for the home, putting together a plan, and taking steps to minimize the risk of the projects going over budget.

 

Start with Repairs

Because rental properties are by nature a source of income, it’s worth your while as the homeowner to reduce maintenance costs wherever possible. This can often mean spending money in the short term on repairs and replacements in order to save money down the road. Furthermore, by upgrading your appliances, fixing leaks, and updating any outdated features, you will provide the most accommodating environment for your renters. Making these improvements can also help set your rental apart from other properties, giving you a competitive advantage in the market. As you go about making repairs, don’t forget to check the working condition of all faucets, electrical outlets, and lights.

 

Renovating Your Rental

Understanding the scope of your renovations and the motivation behind them before you get started will help formulate your plan moving forward. Are you looking to upgrade the home to sell it in the future? Are you renovating to increase rent? Or are you simply looking to be more competitive in the local rental market? Knowing the answers to these questions won’t necessarily change your renovation plans, but it will provide guidance as you enter the remodeling phase. Consider talking to your Windermere agent about how different projects may affect the value of the property.

Even a small-scale renovation can make a big difference in the minds of renters. To create the best first impression from the get-go, consider boosting your home’s curb appeal. Projects like exterior painting, refinishing a deck, and power washing your siding and walkways will help provide an inviting outdoor setting for your renters.

When it comes to interior renovations, kitchens are a great place to start. Thankfully, kitchen makeovers can be simple. Identify the areas of your kitchen that need repair first, then expand your project list from there. Next, consider upgrading the bathroom. Begin by checking your pipes, drains, and p-traps for any signs of wear and tear. Simple things like painting the vanity and updating the bathroom hardware can also make a big impact.

Last but not least, if you decide to hire a professional to renovate your rental property, be sure to gather multiple bids and compare prices before making your final decision.

Learn more about the pros and cons of investing in vacation rentals here: Vacation Home or Income-Producing Investment. You can also read about vacation home renovations by season here: Renovating Your Vacation Home.

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Future of Work

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This week we had the opportunity to hear a presentation by Ed McMahon who is the Senior Fellow for Sustainable Development at the Urban Land Institute.

 

He is a leading expert on the future of housing and development in the United States.

 

He sees that Colorado is positioned to massively benefit from the work from home shift taking place across the Country.

 

Ed cited that only 1 in 10 companies expect employees to come back to the office to work full time.  He believes the future of work is a hybrid model where most employees are mixing their work hours between the company office and their home office.

 

What does this mean for housing demand?

 

Smaller cities (like Denver), suburbs and high-amenity small towns will benefit.

 

He sees that those places with a high quality of life will benefit the most.

 

Bottom line, if people are untethered from their corporate office and can live anywhere, they will choose to live in places that are nice to live.

 

Colorado is certainly high on the list of high-amenity and high-quality places.

 

So, the new work from home dynamic is another reason to be bullish on the future of Colorado real estate.

The post Future of Work appeared first on Windermere Colorado REALTORS.

Future of Work

/in , , , , , , , , , , /by

This week we had the opportunity to hear a presentation by Ed McMahon who is the Senior Fellow for Sustainable Development at the Urban Land Institute.

 

He is a leading expert on the future of housing and development in the United States.

 

He sees that Colorado is positioned to massively benefit from the work from home shift taking place across the Country.

 

Ed cited that only 1 in 10 companies expect employees to come back to the office to work full time.  He believes the future of work is a hybrid model where most employees are mixing their work hours between the company office and their home office.

 

What does this mean for housing demand?

 

Smaller cities (like Denver), suburbs and high-amenity small towns will benefit.

 

He sees that those places with a high quality of life will benefit the most.

 

Bottom line, if people are untethered from their corporate office and can live anywhere, they will choose to live in places that are nice to live.

 

Colorado is certainly high on the list of high-amenity and high-quality places.

 

So, the new work from home dynamic is another reason to be bullish on the future of Colorado real estate.

The post Future of Work appeared first on Windermere Colorado REALTORS.

Ideas for Decorating with Plants

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At the mention of interior design, the first things that often come to mind are furniture, wall art, paint colors, and other material components. However, plants are an important décor element that have the power to refresh the look and feel of any indoor space, while making your home eco-friendlier. Keep the following tips in mind when decorating your home with plants.

 

Consider Your Space

Before you make a trip to the nursery, think about which spaces in your home are best suited for plants. It’s also important to research the needs of the plant varieties you’re considering. By knowing how much shade and direct sunlight they need, you’ll be able to identify the best home for each plant type and the care they need to grow.

 

Go Vertical

Empty vertical wall spaces provide the perfect opportunity to incorporate hanging plants. Whether you use planters or install shelving, hanging plants attract the eye and bring an organic, living element to what was previously a blank canvas. Hanging herb gardens are a wonderful addition to the kitchen, allowing you to keep fresh ingredients and flavors out in the open air and within reach at all times.

 

Floor Plants

Floor plants are typically large and require plenty of space. Due to their size, they are often used to balance the proportion of rooms containing large furniture items like couches, desks, and tables. Common floor plants include the fishtail palm, olive trees, the rubber plant, fiddle leaf fig, and bird of paradise.

 

Low Maintenance Plants

For those who don’t consider themselves to be green thumbs, cacti and succulents are the way to go. Most succulents come from hot climates with little humidity and have thick tissue that stores water for long periods. Accordingly, they are lower maintenance than most other plants and require little watering.

 

Decorate with Terrariums

Another creative, relatively low-maintenance option for indoor gardeners is a terrarium. Terrariums are contained indoor gardens, usually in a glass container that can be left either sealed or open. Closed terrariums are self-nourishing, creating their own water cycle. Plants that grow in humid conditions are best suited for this environment. Open terrariums provide a good home for plants that need less water, like cacti and succulents. Terrariums make for eye-catching décor, with styles ranging from minimalistic to intricate.

 

For more information on home design and the latest trends, check out our tips on how to upgrade your bedroom, home office, and kitchen, as well as the 2021 paint color trends and principles of timeless home design.

The post Ideas for Decorating with Plants appeared first on Windermere Colorado REALTORS.

Ideas for Decorating with Plants

/in , , , , , , , , , , /by

At the mention of interior design, the first things that often come to mind are furniture, wall art, paint colors, and other material components. However, plants are an important décor element that have the power to refresh the look and feel of any indoor space, while making your home eco-friendlier. Keep the following tips in mind when decorating your home with plants.

 

Consider Your Space

Before you make a trip to the nursery, think about which spaces in your home are best suited for plants. It’s also important to research the needs of the plant varieties you’re considering. By knowing how much shade and direct sunlight they need, you’ll be able to identify the best home for each plant type and the care they need to grow.

 

Go Vertical

Empty vertical wall spaces provide the perfect opportunity to incorporate hanging plants. Whether you use planters or install shelving, hanging plants attract the eye and bring an organic, living element to what was previously a blank canvas. Hanging herb gardens are a wonderful addition to the kitchen, allowing you to keep fresh ingredients and flavors out in the open air and within reach at all times.

 

Floor Plants

Floor plants are typically large and require plenty of space. Due to their size, they are often used to balance the proportion of rooms containing large furniture items like couches, desks, and tables. Common floor plants include the fishtail palm, olive trees, the rubber plant, fiddle leaf fig, and bird of paradise.

 

Low Maintenance Plants

For those who don’t consider themselves to be green thumbs, cacti and succulents are the way to go. Most succulents come from hot climates with little humidity and have thick tissue that stores water for long periods. Accordingly, they are lower maintenance than most other plants and require little watering.

 

Decorate with Terrariums

Another creative, relatively low-maintenance option for indoor gardeners is a terrarium. Terrariums are contained indoor gardens, usually in a glass container that can be left either sealed or open. Closed terrariums are self-nourishing, creating their own water cycle. Plants that grow in humid conditions are best suited for this environment. Open terrariums provide a good home for plants that need less water, like cacti and succulents. Terrariums make for eye-catching décor, with styles ranging from minimalistic to intricate.

 

For more information on home design and the latest trends, check out our tips on how to upgrade your bedroom, home office, and kitchen, as well as the 2021 paint color trends and principles of timeless home design.

The post Ideas for Decorating with Plants appeared first on Windermere Colorado REALTORS.

How to Prevent Water Damage to Your Home

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Water is constantly coursing through your home, flowing in and out of drain pipes, sinks, tubs, and showers. Numerous systems in our homes are dependent upon water, but the minute it runs rampant it begins to cause damage. The consequences of water damage run the gamut, from rotted drywall and mold growth to serious structural issues. The following guide will help you understand what you can do to prevent water damage in your home.

Leaks

Leaks soften wood, which invites all sorts of unwanted activity from termites, while simultaneously creating a perfect habitat for mold and mildew growth. To prevent leaks, keep your drains healthy by frequently cleaning out your drain strainers and refraining from dumping grease down your drains. Check to make sure none of your drains are leaking and if need be, repair or replace your p-traps. Drips, dark stains around your pipes, and discoloration on your ceilings and walls are all strong indicators that a leak has sprung. If you notice an inexplicable spike in your water bill, this is also a sign of a potential leak. By identifying these signs, you can begin repairs right away and stop the water damage in its tracks.

Gutter drainage

A home with weak gutter drainage is an open invitation for water damage to occur. Cleaning your gutters routinely is the best way to prevent them from clogging, which helps to avoid damage to your siding and foundation. Make sure your downspouts expel the gutter water away from your house parallel to the ground. Take a trip to the hardware store for downspout extensions and elbows to make sure that water won’t build up around your home’s foundation, especially if you live in a rainy climate.

Sump pump

Your sump pump can be your saving grace should a water emergency occur. Sump pumps move excess groundwater away from your home, preventing it from infiltrating your basement or crawl space. They are connected to the Ground Fault Circuit Interrupter (GFCI) electrical outlet, which protects it from electrical shorts. There are two ways to test your sump pump. The first is by pouring in enough water to raise the float. If it’s working properly, the pump should activate and begin removing water from its pit. The other method is to unplug the pump’s power and plug it back in. If it does not turn on, it requires repair or replacement.

More

There are some additional steps you can take to prevent water damage to your home. Inspect your roof to identify any damaged shingles or cracks. While you’re up on the roof, take a look at your chimney. Repair any cracked or broken bricks and consider a chimney cap if you don’t already have one in place.

 

Water damage can be harmful to your home and your finances. Even the smallest leak can snowball into larger problems if neglected. By following the steps to prevent water damage, you’ll know if your home needs repairs before it’s too late. For more advice on preventing damage to your home, read our guides to wildfire and winter storm prevention.

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