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!

Real Estate Myths

Debunking Common Real Estate Myths

Real estate is an industry that, while most people will be involved in it at some point, there is a lot of misinformation in the general public. In this post we will be debunking some of the most common real estate myths:

Real Estate Myths

  • Price Higher Than You Expect To Get – Contrary to what many believe, listing your home at too high a price may actually net you less money! Many people are wary of homes that have been on the market more than 3 weeks, so listing your home too high and letting it sit on the market is not the best plan!
  • Renovate Before You Sell – Major renovations are not always the best plan when trying to raise your home value. Prospective buyers may not share your taste, so you’re better off just fixing small things and leaving the big renovations to the next owner! There are many myths about renovating before you sell. To see the renovations that are worth taking on, see our blog post on the topic here!
  • The Market Will Go Up – Home values have been going up recently, and many people have already forgotten the recent recession. They think the market just goes up, without considering how it could plummet again in the future. It happened in the mid-70s, early 80s, early 90s, and again in 2008. This is a good thing to consider when purchasing a home. How will you and your home be affected if this happens again?
  • Get Pre-Approved After Finding Your Home – One of the most common myths in real estate is that buyers don’t need to be pre-approved until the have found their home. This is simply not true and can be a big mistake! Pre-approval should be the first step in your house-hunting adventure. It can be devastating for buyers to find a home, make an offer, and have it accepted, only to find out they aren’t approved for a loan for the home. Get pre-approved first!
  • Open Houses Sell Homes – Many sellers love the idea of having their home open every weekend for people to walk through. A common myth in real estate is that open houses sell a lot of homes. While this can be true in some areas, the National Association Of Realtors tells us that only 2% of all homes are sold are a result of an open house. So while an open house can provide good exposure, it probably won’t sell your home directly!

We hope you were able to learn something new from this blog post! Real estate can be a complicated industry, so we try to break things down wherever we can to inform current and future clients! If you would like to talk to one of the NextHomies in our office, give us a call at (970) 507-8655! To see NextHome Rocky Mountain Rental’s current featured listings, click here! We want to get you into 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!

 

Ranch House For Sale

13750 Highway 151

13750 Highway 151 is a beautiful 45 acre property backing up to the National Forest and Reservation land. There are 3 stick-built dwellings as well as several outbuildings sitting on this wonderful property. The main ranch house is a 2 bedroom with in-floor heating, a woodstove, and an awesome wraparound deck. There are several large living spaces, so adding a 3rd bedroom would be easy!

Ranch House
13750 Highway 151

There is also a guest house and a bungalow just steps from the main house, as well as a barn and a large detached carport! Outside of the buildings, there are many mature fruit trees on the property, as well as enough fenced pasture to let your horses run free. This property is just minutes from Lake Navajo, it backs to National Forest and Reservation Land, and has it’s own water well. This property is not going to last long!

If you are interested in this property, you can view the full listing here. Our other available listings can be viewed here. To talk to a NextHome RMR agent, call (970) 507-8655!

 

Congratulations!

231 Tiffany is SOLD!

Big congratulations to Chris and Mariana on the sale of their home! 231 Tiffany Place sold for $585,000 and features a fully finished basement and incredible views of Squaretop Mountain. The Letchfords have their home at 1551 Cattle Trail listed with us as well. See this beautiful ranch home here!

Sold!
Photo: 231 Tiffany Place
Sold!
Photo: 1551 Cattle Trail Place

Thank you Mariana & Chris for choosing NextHome Rocky Mountain Realty & Rentals to list your Pagosa Springs real estate! We appreciate your business and friendship! If you would also like to work with NextHome RMR, give us a call at (970) 507-8655.

Congratulations!

Congrats to Launie & Teresa Anderson!

NextHome RMR is proud to have sold not 1, but 2 of your properties this past week! The Andersons also got a new property put under contract to purchase. Launie & Teresa have purchased 4 properties through Britney Chaisson and this new one will make #5. They have also used our Property management division to manage their properties as rentals in Pagosa.

Congratulations

Congratulations
Congratulations

Congrats again and thank you for your loyalty to NextHome Rocky Mountain Realty & Rentals!

Home Staging Tips

Staging Your Home

Staging is an important step in preparing your home to sell. It is a method of decorating that highlights your home’s best features to potential buyers. In this post, we’ve put together some of the best tips for staging your home!

Home Staging in Pagosa Springs

  1. Get Rid Of Clutter: This one is fairly easy. Clutter takes up space, and space is what you are trying to sell! Storing the things you don’t use regularly or that take up a lot of space can make your home appear larger to potential buyers. Remember to clear out closets if possible, as buyers will want to see how much room they have.
  2. Stage Where You Need To: Typically, buyers are most interested in the master bedroom, kitchen, and living room. Staging these areas well is more important than staging additional bedrooms and bathrooms, as they will receive the most attention.
  3. Repairs and Patches: If there are nail holes and scuffed walls in the house, many will assume the home has been neglected. We recommend walking through the house with an eraser pad to get rid of all the marks and scuffs on the walls. You can also fill nail holes and touch up paint as needed. Potential buyers will appreciate the extra effort put in to maintaining the home.
  4. Make a Good Impression: The first thing a buyer sees as they walk up to the house is the front entrance. You want to make the best impression possible here! Remove seasonal decorations, as they can make the listing look dated in photos. If you have a front stoop or porch, consider power-washing it to remove any dirt or stains there may be. You can also add a doormat and some potted plants for curb appeal.
  5. Lighting: People like well-lit rooms, so turn on the lights and open all the blinds! Open windows can make your space seem bigger, but be sure whatever is on the other side of the windows is clean and tidy.
  6. Clean Up: You will want to clean like you’ve never cleaned before! Scrub from floor to ceiling; a clean home suggests you took great care in maintaining your home. Potential buyers will notice this!
  7. De-Personalize Your Space: Potential buyers want to be able to imagine the space as their own. Removing items like family photos, visible personal items (such as toiletries, clothes, etc.,) and refrigerator magnets is recommended. This turns your home into a “blank canvas” for potential buyers!
  8. Rearrange Furniture: Open floor-space and walk-able paths throughout the house can make it seem much larger. They also help potential buyers envision where their furniture can go in the home. If you have furniture that doesn’t match the rest of the room, or doesn’t fit, we recommend storing it.

Home staging is a great way to make your home more appealing to potential buyers. You want to present your home in a way that shows off it’s best features; and allows potential buyers to imagine it as their own.

These tips are just a few ways that you can make your home really stand out from the rest of the crowd! If you need some inspiration, you can view our currently listed homes here!

Buying Homes During Covid-19

Buying a Home During The Coronavirus Pandemic

Coronavirus has made many things uncertain in our lives. From high school graduates trying to leave for college, to world travelers dealing with border restrictions due to the pandemic, to 16 year olds buying their first car, we are all being affected in one way or another.

Buying a home can seem like an impossible task right now, but you may be surprised to learn there are actually several advantages to purchasing property during this pandemic! Below, we’ve listed a few advantages to buying a home during the coronavirus pandemic.

  1. Fewer People Shopping – Most people are nervous to buy during this time of uncertainty. This can work to your advantage as there will be less competition to purchase the house you want!
  2. Low Interest Rates – Interest rates are at an all time low right now, you might as well take advantage of it!
  3. Surplus of Listings – Covid-19 has pushed many people to change the way they are living and to make big decisions… such as listing their homes for sale! This can help you as there are many home options currently on the market, and not many buyers to compete with.
  4. Mountain Towns are Safer! – This one is more specific to Pagosa Springs and surrounding areas.. Where would you rather be during a pandemic? A crowded city? Or a serene mountain town with a population less than some larger neighborhoods? I know what my choice is!

These are just some of the pros of buying a home during these strange times. I hope this article has given you the extra push you need to go out and find your dream home! You can view homes currently for sale in Pagosa Springs here, or give us a call to let us know what you’re looking for!

 

Photo by: Gavin Kiker
Photo by: Gavin Kiker

 

 

 

 

Anniversary!

4 Year Anniversary Of NextHome RMR!

This week marked the 4 year anniversary of NextHome Rocky Mountain Realty & Rentals. Our background spans 50 years in the Real Estate Industry; from buying and selling homes, to mortgage origination and processing, all the way to lending. We are here to help get you the best deal possible! The past four years have been great here in Pagosa Springs, and we are excited for the next four!

Anniversary! - Photo by: Gavin Kiker

Visit our Reviews page to see what some of our previous clients had to say about working with us over the years.

Thank You!