Real Estate - Jackie Yost - Real Estate Professional

Listing Commissions and Related Issues

Happy New Year

Happy New Year

Hello and Happy New Year, I hope you are keeping warm today. I am writing this on MLK Monday when the temperature in Morrison is -6 degrees but feels like -24. I am so anxious to get up skiing in all this powder, but the roads are closed. If anyone wants to ski the Jane with me later this week, let me know. Even though it’s cold outside, the real estate market is starting to heat up. Interest rates have gone down a bit and the Spring selling season is right around the corner. Actually, this is a great time to list your house because inventory is still low. People are just now preparing their homes to list but if your house is ready, I say pull the plug and list before everyone else does. The Buyers who are serious will be looking. Call me if you need any help getting ready. My staging advice is always complimentary. Every year I enter the HGTV sweepstakes in hopes of of winning something. It only takes a sec to enter each morning, so there’s no harm in trying. Here’s the link in case you don’t have it. I have won lots of things over my lifetime because I enter things. You’ll never win the lottery if you never buy a ticket. Remember the old fishbowls that businesses would set out so you could drop your business card in? I have won many lunches, dinners and even once, a beautiful lamp from a furniture store. If I hadn’t filled out the entry to try out for Wheel of Fortune, I would never have been selected to go on the show. Just in case you missed it, here is the link to my 15 minutes of fame with Vanna White, Pat Sajak and Bill Romanowski. If you have stopped laughing, I’ll share some other real estate news with you. The average priced home in metro Denver in 1971 was $27,000! On average, home prices rise 6% per year, just a bit above inflation. Homes have gone up in price all but 4 years in the past 44 years! So, just because we’re at record high prices DOESN’T mean prices have to fall next year. People who expect that are wrong 90% of the time! If you are planning to buy something – please read this. Question: Do discounts change over a market cycle? Should one ever “low-ball?” Answer: Not in this market! In a very strong market properties tend to sell for close to asking price or even at a slight premium. As inventory increases, discounts will slowly increase. To the surprise of most sellers, buyers usually will not make an offer on an overpriced house. They just move on to the next house. Ideally, a house needs to be priced within 1-3% of final sales price to get any offers. Premiums from the hot seller’s market returned to slight discounts as expected. Discounts for luxury homes have since pulled back below the average Denver home. Over the past 12 months, homes that were priced right at initial listing (e.g., did not require a price reduction) sold in just 11 days on market. Mispriced homes (that required a reduction) needed 55 days on market or FIVE times as long go get under contract. On a more personal note, and because many of you on my email list may have aging parents and are their caretakers as well, I want to share that I have been taking care of my mom for the past several years. She has been living at The Ridge at Pinehurst (Quincy and Wadsworth) but now needs more care and will be living at Balfour in Littleton in their memory care area. It’s beautiful there and I know they will take great care of her, but what a change this will be for her! I’m happy to discuss these challenges further if any of you are encountering something similar or might be in the near future. As always, feel free to contact me with any real estate questions or anything in general. I love hearing from people. I’m off to shovel my driveway now. PLEASE LINK THE WHEEL TO: https://www.dropbox.com/s/jpqu4a3pa38096v/Jackie-compressed.mp4?dl=0 If you have stopped laughing, I’ll share some other real estate news with you. The average priced home in metro Denver in 1971 was $27,000! On average, home prices rise 6% per year, just a bit above inflation. Homes have gone up in price all but 4 years in the past 44 years! So, just because we’re at record high prices DOESN’T mean prices have to fall next year. People who expect that are wrong 90% of the time! If you are planning to buy something – please read this. Question: Do discounts change over a market cycle? Should one ever “low-ball?” Answer: Not in this market! In a very strong market properties tend to sell for close to asking price or even at a slight premium. As inventory increases, discounts will slowly increase. To the surprise of most sellers, buyers usually will not make an offer on an overpriced house. They just move on to the next house. Ideally, a house needs to be priced within 1-3% of final sales price to get any offers. Premiums from the hot seller’s market returned to slight discounts as expected. Discounts for luxury homes have since pulled back below the average Denver home. Over the past 12 months, homes that were priced right at initial listing (e.g., did not require a price reduction) sold in just 11 days on market. Mispriced homes (that required a reduction) needed 55 days on market or FIVE times as long go get under contract. On a more personal note, and because many of you on my email list may have aging parents and are their caretakers as well, I want to share that I have been taking care of my mom for the past several years. She has been living at The Ridge at Pinehurst (Quincy and Wadsworth) but now needs more care and will be living at Balfour in Littleton in their memory care area. It’s beautiful there and I know they will take great care of her, but what a change this will be for her! I’m happy to discuss these challenges further if any of you are encountering something similar or might be in the near future. As always, feel free to contact me with any real estate questions or anything in general. I love hearing from people. I’m off to shovel my driveway now.
Happy December and Happy Holidays

Happy December and Happy Holidays

Happy December and Happy Holidays, It’s never a good time for a furnace to die, but mine did this week while the temperatures were hovering in the 20’s. It actually went out on Friday and my usual HVAC guy won’t work on the weekend. My son has a friend in the industry that was kind enough to come out and try to get it going on Sunday but it wasn’t fixable. Therefore, as of Tuesday, I am out 16k but have a brand-new furnace and air conditioner at my house. I was pretty shocked at the price, but everything is more expensive these days. I should have listened to my instincts as I thought it was making a strange sound and I should have had it checked out before it went kaput. I have so many great neighbors that loaned me their space heaters, so we were okay for a few days in a cold house. Thank you Lori, Gary, Bill, Debbie, Susan, Dave, Kyle and Chelsea. 2023 was a year of legislation changes for the rental industry in Colorado. There are 9 new laws that passed shifting more burdens to property owners while expanding the rights of tenants. HHere they are: Pet ownership reduces a landlord’s ability to restrict certain types of pets in rentals. Portable screening reports requires landlords to accept tenant provided background reports directly from tenants rather than running their own report. Prohibited provisions in rental agreements disallows several lease clauses that had previously been standard in most lease agreements, removing landlord protections. Eviction protections for tenants complicated the legal eviction process landlords must follow. Habitability of residential residences increases the property condition requirements and allows tenants to break their lease without penalty in some instances. Drugs – increases the requirements landlords must follow in properties where drugs were illegally manufactured and creates a state database of those properties. Protections for tenants that prohibits landlords from considering a subsidized applicant’s credit score when processing a rental application, as well as several other restrictions on landlords’ ability to screen applicants. Disclosure of radon in leases now requires landlords to mitigate properties with elevated levels of radon. While I think some of these laws are agreeable, I dislike the ones that give tenants more rights than landlords. I once rented a condo to a man who then invited his girlfriend to live with him. I wasn’t even aware of her until I found out they broke up; he moved out and she stayed. I didn’t even know her name. No one was paying rent and I couldn’t get her out. My attorney said since my tenant had invited her to live there, she had the right to stay. I had to spend a lot of money evicting her and lost a bunch on the damages she did. Lesson learned. It is now addressed in the lease. For those navigating the real estate landscape in the Front Range, December offers a blend of opportunities and considerations that merit thoughtful exploration. Let's delve a bit deeper: Interest Rates in Your Favor: Amidst the festive season, the real estate market is quietly offering a gift in the form of lower interest rates. This December, rates have dipped considerably from a couple months ago, creating an opportune moment for potential buyers to secure a mortgage with more attractive terms. Keeping an eye on this aspect can make a substantial difference in the overall cost of homeownership. Increased Inventory for Thoughtful Choices: With approximately 2.5 months of inventory on the market, December provides a good balance of housing options. This allows prospective buyers to take a methodical approach, exploring various properties and neighborhoods before committing to a purchase. Whether it's the ideal location or specific features you're after, the current market conditions offer the luxury of choice. Seller Concessions Reflecting Market Conditions: Sellers, recognizing the elevated inventory levels and fewer showings, may be more willing to sweeten the deal. Concessions, such as negotiable prices, interest rate buy downs, or paying all of some of buyer closing costs, are becoming more common. This buyer-friendly market dynami not only provides potential savings for buyers but also opens opportunities for negotiation and flexibility in the purchasing process. For Sellers: It might make sense to wait. On the seller's side, adopting a patient approach and considering a post-holiday listing strategy could prove strategic. Here's why: Market Dynamics Shift After the First of the Year: As we transition into late January or early February, the real estate market experiences a notable shift. The environment becomes less favorable for buyers and more conducive to sellers. This period witnesses increased buyer activity and a decline in inventory levels, setting the stage for a potentially more competitive landscape. Capitalizing on Post-Holiday Buyer Surge:By opting to list your property after the holiday season, sellers position themselves to tap into the customary surge in buyer activity that characterizes the early months of the year. This influx of prospective buyers can contribute to faster sales and may attract more competitive offers, providing sellers with an advantageous position. In summary, December in the Front Range real estate market invites both buyers and sellers to navigate the intricacies with a discerning eye. Whether you're looking to capitalize on current buyer-friendly conditions or strategically planning for the new year, a well informed and patient approach can pave the way for a successful real estate journey. Feel free to call me with any of your questions!

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