Real Estate News with Terri Taydus, GRI, CNA

Getting Ready to Downsize? Final Chapter in my Three Part Series

July 27th, 2014 5:00 PM by Taydus Taydus



 

What the heck is happening in the world of local Real Estate?!

Many buyers are experiencing frustration over the local market and the lack of available inventory.  I work both Boulder and Broomfield counties and have seen both markets (especially Boulder) hit with low inventory and rising home prices.  There are multiple factors that are contributing to the situation:  
  • Sellers are hesitant to sell for fear that they will not find a replacement home.
  • Low inventory is putting sellers in the driver’s seat, and is encouraging them to list for an inflated price.
  • The market – especially within the City of Boulder – is flooded with sophisticated buyers that can often afford to pay cash for their purchase, thus paying the high prices sellers are demanding. This makes it complicated for a buyer that needs to finance to submit a competitive offer.
  • Each new sale at an inflated price raises the bar for the next listing – each sale continues to build upon the last, causing home prices to keep rising.

For now, this is the nature of the local market.  If you are a buyer / seller thinking about downsizing, this final chapter of my three part series is for you!  Today we will take a look at some solutions as to how to best navigate today's market based upon the unique needs of the seller / buyer looking to downsize :)



You are in a FABULOUS position!  Typically a more savvy buyer (as you have been around the block before), the buyer that is looking to downsize is usually also a seller - and often someone that owes very little to nothing on their existing home.

  •  Speak to your financial advisor and / or lender.
  • You want to have your finances lined up and ready to go. You also want to make sure you are allocating your finances in such a way that you can downsize / retire comfortably by making educated decisions. Your financial advisor along with your lender (should you decide to refinance, or take out a new loan) can be excellent resources.    
  •  In today’s local competitive market, it is not beneficial for you to submit a contingent offer (i.e. an offer that is contingent upon you selling your current home). Your offer will not be as strong as a non-contingent offer and you could be setting yourself up for heartache when you lose out on the home of your dreams to another non-contingent buyer.

 

  • Get your home ready to sell! Years of accumulation has a way of sneaking up on you. Now is the time to start sorting and purging. If you are local, once your home is market ready, with the right marketing and pricing your home should sell quickly (again this is where you need to trust your Realtor). Be realistic about the value of your home, taking into consideration any shortcomings, such as a dated interior etc., and price it accordingly. Also, if you are a smoker you need to be aware that even though you may not be able to smell smoke, your buyers will. Take all of the necessary steps to mitigate your home of any smoke smell (including getting rid of draperies, replacing carpet, and possibly hiring a mitigation company to rid your home of smoke odor). These steps may cost you a couple thousand dollars, but it could save you much more than that is lost sales. If you are selling your home in a different market (i.e. out of the area / state) with plans to move to the Boulder / Broomfield area, make sure you are working with a good and reputable Realtor (listing agent) as they can best advise you about your local market conditions. Don’t know a good Realtor in your area? I am happy to help, as I have a whole network of excellent Realtors nationwide that I can refer to!

 

  •  Start searching for your new home. If you are currently out of the local area, your Realtor can email listings to you based upon your personalized search criteria. Staying realistic and open minded about your options is important. Some things to ask yourself may be: 
  • What is important to me? Do I want a home that is turnkey, where I can pack on a moment’s notice and travel? Do I want a garden or garage to play in? Do I need room for children / grandchildren to visit? Is it important that I be near a college where I can visit and maybe speak? Do I want to be “downtown” where I can walk or bike everywhere? Is public transportation important?
  • Based upon the answers to the above questions, you may want to consider the type of home you are looking for:
    • Condo or Townhome? (pets can be a factor if you are considering a condo)
    • Garden home?
    • Smaller single family home?
    • Also there are new communities cropping up throughout Boulder and Broomfield Counties that cater to the “over 50” crowd. These are active communities typically with lower maintenance homes – often ranch style homes that are more difficult to find elsewhere. Louisville and Broomfield come to mind with some of these wonderful communities.

Make sure you are communicating openly and honestly with your Realtor so they can best assist you with the sale of your home / purchase of your new home.

Keep your priorities in check. If you are selling locally you may be able to get more for your home in the current market, but you are also going to pay more for your new home. Maybe consider another area – for instance if you are selling within the City of Boulder, perhaps consider Louisville, Lafayette, or Longmont where your dollar will stretch a bit farther in the real estate market. If you would like to stay in the same area that you are selling, remember why you are selling (smaller home / yard to care for, a turnkey home where you can travel and not worry about the responsibility that comes with a larger home, etc.) If you stay focused only on cost, you will lose sight of your reasons for downsizing.

Most importantly work with a Realtor! We are the ones that are out here working the market day in and day out. We see the different scenarios and can advise you about market value, and what strategies work best. Remember, your Realtor is on your side and wants to help you J

Even with the challenges of the current market there are steps you can take to achieve your goals if you are willing to be realistic, keep an open mind, and stay open to new possibilities!

Again, it is more important than ever to engage the services of a licensed Realtor that is accustomed to working with buyer / sellers that are looking to downsize, and can assist you with your unique needs.  You will need to be ready to act quickly when the right home comes along.  Your Realtor can help you so you are prepared and don’t miss out on that “just right” home.  

I work with both buyers and sellers and am available to answer any questions you may have!

Posted by Taydus Taydus on July 27th, 2014 5:00 PM

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