Common Real Estate Questions

Real Estate Questions Answered

In this post we cover a few of the common real estate questions that we get asked!

Real Estate Questions
Staged Home

Buyer’s Market or Seller’s Market – You’ve probably heard the terms “buyer’s market” and “sellers market” at least once when discussing real estate. While these may sound confusing, they are actually pretty basic terms! A Buyer’s Market is when the inventory of property exceeds the demand for property. This puts the buyer at an advantage because there are a lot of properties to choose from at competitive prices. A Seller’s Market is when the inventory of properties is low but the demand is up. This puts sellers at an advantage because there is less competition, so they can ask more for their property!

Build vs Buy – This question is a common one, especially in areas with many lots for sale, such as Pagosa Springs. Building a home can be a great option for a few reasons. You can choose where you want to build, how big you want your home, and exactly how you want it to look and function! New builds may have unexpected costs or complications that you must consider in the initial build cost. Buying a home already built may be a better route for many buyers. These homes are usually ready to move in much sooner, the prices are typically negotiable, and you don’t have the same upfront costs that come with a new build. The cons of buying a built home include older appliances and other things that may need maintenance sooner. You are also more likely to compromise on features you may want when purchasing a pre-built home. There are many pros and cons between building and buying a home; it really comes down to what you think will work best for you and your lifestyle!

Buying a Foreclosure – A foreclosure is a home that’s seized and put up for sale by the bank that gave the original owner a loan. When you see a home listed as “foreclosed,” it means that it’s owned by the bank. Foreclosures are usually less expensive, have fewer title concerns, and often have a great renovation potential. Foreclosures are usually sold “as-is” so there are maintenance concerns that you as the buyer would be responsible for fixing. There are many ways to get a loan for a foreclosure, and if you have a licensed agent helping you throughout the process, a foreclosure can be a great investment!

Should I Get Pre-Approved First? – The answer is YES! Pre-Approval should be the first step you take when preparing to buy a home. This is how you know how much you can afford, if you can afford a home. You don’t want to shop until you find the perfect home, only to realize you can’t quite afford it! If you have any questions on how to start this process, give us a call at (970) 507-8655.

Who Pays The Realtor Fees? – This question is pretty easy to answer! Typically in a home sale, the seller pays the realtor fees, as they are the ones making money on the transaction. The amount the seller pays is negotiable and may vary from deal to deal.

Common Closing Expenses – Typically, the home buyer will pay 2-5% of the purchase price of the home in closing fees. These fees will cover the cost of things like insurance, inspections, taxes, attorney fees if applicable, credit checks, etc. The average total closing cost in the United States is $3,700.

How To Prepare For Showings – Showing your home to strangers can be strange, especially when you are only getting little notice beforehand. You should be ready to show at all times; staying flexible is important as everyone has different schedules. That last minute-showing could be the one that sells your home! It is best to leave the property for showings as prospective buyers will be more comfortable talking about the property. If you have pets, be sure they are picked up after and make a plan of where to take them during showings! To see our post on home staging, click here!

If you have any further real estate questions, please feel free to give us a call at (970) 507-8655. You can see the homes we currently have listed for sale on our featured page. Let us help you find your Next Home!

Renovations – Return On Investment

Renovations With The Highest Return On Investment

Whether you are trying to sell your home or not, paying attention to the renovations you do and how they affect your home’s value can be important. Some home improvement projects can yield a much higher return on investment than others.  We’ve compiled a list below of the best renovations you can do for your money. Enjoy!

Return On Investment
Photo Courtesy: mountainvillageestespark.com
  1. Minor Bathroom Remodel – There are two rooms that sell homes more than any others; the kitchen, and the bathrooms. Bathroom remodels actually provide the highest return on investment, averaging 102%. You don’t need to fully gut the room however, adding a good coat of paint and new fixtures is a great way to elevate the value of your home.
  2. Landscaping – Curb appeal is a very important aspect when listing a home. Fresh landscaping and a picked up exterior can make your home appear fresh and clean, which buyers want. Basic landscaping averages a 100% return on interest, even adding a few potted plants to your front porch can make a huge difference!
  3. Minor Kitchen Remodel – A minor kitchen remodel can really bump your home’s value up without much work. Start by upgrading outdated appliances with newer ones; prospective buyers will notice these additions. Painting or staining your existing cabinets can substantially increase your kitchens appeal. Modern hardware on all of your drawers and doors will help a lot too!
  4. Attic Bedroom Conversion – One of the best ways to increase the value of a home is by adding to the number of rooms it has. If you have an attic that can be converted to a bedroom, and you have the budget to do so, this addition can add a lot of value to your home while also adding to it’s usability! While not necessary, this is an option everyone should consider. The average return on investment for an addition like this is about 93.5%.
  5. Entry Door Replacement – While it may seem simple, replacing your front entry door is one of the most impactful renovations you can do to your home. If your home’s style can support it, a door painted a bright, primary color can really draw prospective buyers into a home. It makes the home more approachable and inviting! Even a fresh coat of paint can make a huge difference.
  6. Deck Addition – If you have the room to do so, adding a deck or porch is a great way to add perceived value to your property. If you already have a deck, make sure it has been painted or stained and is structurally sound. A deck increases usable living space and can be a deciding factor for some buyers! Outdoor living spaces have become especially desirable since the covid-19 pandemic.
  7. Basement Remodel – Although not all homes have a basement, the ones that do can sell for significantly more than homes that don’t! Converting your dark and dingy basement into a usable living space can bring your home value up quite a bit. Return on investment for this renovation sits around 90% on average and can draw in prospective buyers!
  8. Window Upgrade – Fresh, new windows can have a huge impact on the exterior image of your home! They will make the outside look newer and the interior brighter! In addition to the added curb appeal, new windows are typically more efficient and you may be eligible for a tax break when purchasing energy efficient windows. Although many may not notice, new windows will slide more easily too!

These are some of the best renovations you can do to add value to your home before selling! If you have any questions, or would like to talk with one of our brokers, give us a call at (970) 507-8655. To see the homes we currently have listed, click here!

Investment Property

What To Look For In Your Next Investment Property!

Have you been thinking about purchasing an investment property? Real estate can be a great investment if you know what you’re doing, but there are some risks involved. Below, we’ve compiled some things to look for when considering a rental property.

Investment Property
Photo By: Gavin Kiker
  1. Location – This first tip is an important one. When searching for a rental, location is the top thing tenants are interested in. Choosing an area that is close to schools, shopping, and healthcare is a good way to draw tenants in. Rentals in college towns or ski towns can be very profitable, but it can be difficult to lease one of these properties in the summer months, so that is something to keep in mind.
  2. Safety – Safety is very important to most people. Choosing a location with low crime rates is always smart when shopping for real estate to rent out. Installing quality locks and even a good security system can increase the appeal of your property!
  3. Parking – While not as crucial in rural areas, reserved parking for tenants in cities and more populated areas is a must. Rental properties with off-street parking or even a garage or carport can be a huge selling point to prospective tenants.
  4. Fresh Property – New builds or freshly renovated properties are usually more attractive to tenants searching for a rental. Moving into a new space is a fresh start for tenants, the rental should be as fresh as they feel!
  5. Open Space – An open floor plan with plenty of natural lighting feels a lot larger than a closed off space with no windows of the same size! Potential tenants will subconsciously lean towards a bright space over a darker one, so properties with lots of windows and lighting are preferable.
  6. Appliances Included – No one wants to buy appliances for a house they don’t own! Including essential appliances will add value to your rental property and will most likely get it rented sooner!
  7. Outdoor Space – Connecting with the outdoors is important to a lot of people; Especially in Colorado! An outdoor space like a backyard, deck, or even a small balcony to enjoy the mountain views can add a lot of value to your property. This is one feature that is typically more important in rural areas than it is in more urban environments.
  8. Pet Friendly – Pets are family to a lot of people, and no one wants to give up their family to move into a rental! Consider looking at more pet-friendly properties, as they will be more desirable to a lot of tenants. A house with a decent backyard and hard floors is ideal for a pet friendly rental.
  9. Job Market – Locations with a growing job market, or a strong established industry will draw more tenants. Job security is an important factor to consider when renting, so choosing a location with a strong job market is a good idea when looking for investment property.
  10. Trustworthiness – Tenants looking to rent a house want a landlord or property manager they can trust completely. Being honest with potential tenants and disclosing any negative aspects of the property that you are aware of is a good way to build trust as a rental owner. These people are depending on you to provide them with a safe and functional living space for months or even years at a time!

These are just a few tips to help you in your search for the perfect investment property! To speak with a NextHome RMR agent about purchasing your investment property, give us a call at (970) 507-8655. If you want to view our current inventory, visit our featured rentals page here!

 

JUST LISTED! 318 Grenadier

SPACIOUS 4 BEDROOM HOME IN LAKE HATCHER AREA WITH MOUNTAIN VIEWS! This home has great mountain views and plenty of yard for all activities or just to sit on the deck and enjoy the peacefulness. Lake Hatcher subdivision has so much to offer if you prefer to not be in the heart of tourism and traffic. Only 6 miles to the grocery store and access to the 5 stocked lakes and the Rec center which houses the indoor salt water pool, Jacuzzi, weight room and more. Hatcher lake being a trophy lake, this home would be a dream for the family fisherman. Views of Pagosa Peak. The upstairs is like a huge master suite with its own deck and family room. Downstairs are the other 3 bedrooms including the original master. Dual Masters! Both levels of the home have their own free standing stoves. Sellers are motivated to sell and are looking for a new family to enjoy their mountain home Pagosa.

 

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LOGO  HUMANS

It is always nice to hear from owners – it is especially nice to hear that they are happy with our services.

Britney,  I want to thank you and your staff for your professional service, your prompt replies to questions, you work late hours, you are reliable, and you get things done.  It is a pleasure to have a professional working relationship with you, and looking forward to many more years.
Wishing you a Merry Christmas.
God Bless
Samuel Selters

 

Congratulations to Bennie & Elizabeth Garcia!

We are pleased our agent, Terrence Limebrook, was able to help Bennie & Elizabeth find and purchase 240 Glade Dr. Bennie and Elizabeth have also chosen Terrence to list their home at 22 Brassie Ct, and we greatly appreciate their continued loyalty to NextHome Rocky Mountain Realty!

Lot at 240 Glade Dr.
Lot at 240 Glade Dr.

 

**Attention Pagosa Springs Homeowners**

Looking to buy, sell, or rent your home?

From Real Estate to Rentals, we do it all! Check out everything NextHome has to offer:

۞ Reduced Commissions

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۞ Long Waiting List for Rentals

Let us do the work for you! Stop by our office today to discuss buying, selling, or renting your home, and pick up some NextHome goodies while you’re in!

Click on the above image of Luke to meet our agents!
Click on the above image of Luke to meet our agents!

Featured Listing: 33 Bienvenido Cir

RARE OPPORTUNITY TO PURCHASE ONE OF THE FEW 4 PLEX’S IN PAGOSA LOCATED IN DESIRABLE DOWNTOWN. 4 Units all occupied with leases. Potential for higher rent as they expire. All one level. Listed for $500,000. Great investment property!

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Click on the picture above to view the full listing and our other properties for sale!
Click on the picture above to view the full listing and our other properties for sale!