Tag: Home Buyer Information

Navigating New Construction: Why You Need a Buyer’s Agent

It is easy to be a casual, potential buyer, looking at new construction. You drive by and are curious about what the builder is building and what the homes are selling for. So, you turn the car around and stop in. You visit with the on-site sales representative. It is very low key. While you are there you do not sign anything. Then, you go home and start thinking about what you saw, if it might work for you and you have questions. You decide to stop in again and get your questions answered. It soon starts to feel very real and you call your agent. Unfortunately when you arrive at the model home, with your agent, you are told that it is too late to get your agent involved. What went wrong?

Builder set the rules

What many buyers do not realize when they visit new construction is that the builder sets the rules for how the rest of the potential transaction will unfold. If a buyer walks into a model home without a realtor, t potentially establishes the buyer as someone working directly with the builder’s sale team. The buyer can be registered to the builder, even though nothing was signed. Once that happens it is difficult, if not impossible to be allowed to bring an outside agent that will represent the buyer. Each situation and builder can be different. Be careful or a casual look may mean you can’t bring your agent to look out for you.

Builders want control

Why does this happen? This happens because builder want to keep control of the process. A builder controls the product, the pricing, the incentives and the timeline. Once a buyer’s agent is introduced that agent adds their voice to the process. That voice is looking out for the buyers interest. It is important to remember that the sales agent’s role is to protect the builder and the builder interest. The agent for the buyer is there to ask the important questions. They are there to advise on contract terms, explain builder add ons, and how incentives may affect the bottomline. Buyer’s agents can help buyers understand where to negotiate, even when things seem fixed.

Negotiations are different

Negotiations on new construction are quite different. An experienced, buyer’s agent knows where those less obvious places are to negotiate and helps the buyers. The role of a buyer’s agent in new construction is to also compare this builder to others nearby. They can help the buyer to evaluate what upgrades pay off at time of resale. In short, new construction may look very straight forward. It is a real estate transaction between buyer and seller. However, the seller has much more experience than the buyer.

If you find yourself wanting to just look at new construction, think before you look and know what the consequences of that “quick look” may be. If you would like to have an agent involved to look out for you best interest, call that agent to go with you before you look. That quick call can preserve options and prevent frustration later.

What to ignore when looking at homes

You are excited and shopping for your first or your next home. What should you ignore when you are looking at homes? One thing to ignore when looking at homes is the staging and decor. Agents know that homes that are staged are likely to sell more quickly and for more money. Staging can both effectively highlight the homes best features. It can also distract you from the home’s shortcomings. The staging can help you imagine yourself living there. Don’t forget these wonderful furnishings to not come with the home. I know you know this, but look past the glamor. Focus on the bones of the home. Take note of the design, square footage, floor plan layout, ceiling heights and views.

Ignore paint colors

Another thing to ignore when viewing homes is the paint color. As a homebuyer you can become obsessed with the wall coverings, floors and things that can be changed. Instead of ruling out a home because of the owners taste in decor, including ugly paint colors, look past it. Imagine the home as a blank canvas. Focus on the home’s physical condition. If the home is in good physical condition, you can focus on personalizing to your taste after closing.

Ignore pricy upgrades

When looking at homes another thing to ignore is pricey upgrades. Real estate agents spend a lot of time carefully listing out all of the properties recent upgrades. The agent may even go as far as to name drop the brands on the appliances and tell you the particular type flooring selected by the seller. But, do not get stars in your eyes. Just because it has that amazing brand of appliances, does not mean that they will work any differently than another brand. It is still a stove, dishwasher and fridge. It is best to instead focus on the home’s major systems. What is the age of the roof, furnace and A/C? It can be enjoyable to personalize a home with new paint and flooring, but not very exciting to have to replace a furnace right after you move in.

The job of the agent and the seller is to impress you with flowery descriptions of the house and make it look its best for your showing. Be sure to focus on the important things when viewing the home. Make sure the home has the space you need and the floor plan that will work. Also make sure that the home has been maintained so you will not have expensive surprises once you make the home yours.

Welcome to 2026

Welcome to 2026. Fall 2025 was an interesting one for real estate in Northern Colorado, well all of 2025 was interesting. Last year brought us one of the strongest buyers markets we have seen in a long time. Many were saying it was the strongest buyers market in over seven years. Sellers wanting or needing to sell in in the market had to do more than price their home right. Often, the only way to get a buyer to write a contract on the home was to price below comparable sales and offer closing costs too. Buyers in the market in the fall of 2025 did not feel the sense of urgency. The buyers looking to buy were showing they wanted to feel like they were getting a deal. If the home was not a deal, they would continue to look.

Lack of urgency

The lack of urgency from buyers explained why homes were sitting on the market longer. This also explained why price reductions across all price ranges were common. Interest rates for mortgages remained stubbornly steady in the 6.25% to the 6.5% range. Some buyer had the mindset that the rate for a mortgage should be below 6%. If they were there, they were going to wait until they did drop to that point. The feds adjusting short term interest rates can have little affect on mortgage rates. However, buyers feel that if he feds reduce rates, it means that mortgage rates should fall too.

Supply and demand

As we start the new year in Larimer and Weld counties, we have approximately 1,200 active, listings on the market, per county. It is important to compare that number to get an understanding of what that number means. In 2022, inventory in Northern Colorado was at an all time low. We were seeing only 350 active, available homes for sale, in each county. As an additional comparison, we were in the financial crisis of 2008, we had double the number of homes for sale that we do now. So we have inventory climbing but still much lower than in the peak of the mortgage crisis. We seem to be sitting right in the middle. The most important things is demand. It does not matter how much is on the market, as much as it matter what the demand is for what is there.

Predictions

Beginning in January or starting in March, we will be moving into what is typically our strongest demand time of year. It will be interesting to see what buyer behavior will be for 2026. Homes in many price ranges were selling at 97 to 98% if asking price in December of 2025. As demand picks up this spring what should we expect? Zillow is projecting just over a one percent increase in median prices nationally, over the next year. The National Association of Realtors is predicting over two percent increase in median prices. These are modest national projections. Northern Colorado does not always follow national trends. We should expect as we move into the new year that prices will start to climb, January through June. Then as demand slows prices have tendency to slow their movement upward. This is based on historical data.

2026 is a new year filled with questions and predictions. We will all have to wait and see what will really happen.

January is the best time to start your home search

Many buyers think that spring is the best time to buy a home. This is something they have heard for years. But January is the best time to start your home search. There are several reasons why this is the case.

Why start in January?

Number one reason to start your home search in January is because there is a lot involved in buying a home. There is more than just finding a home that you would like buy. There is the financial preparation. That involves getting pre-approved for mortgage and understanding what you can truly afford. Then there is learning about the local inventory, touring homes, writing offers, negotiating terms and finally the closing. All of this takes time.

It is a buyer’ market now

Another reason for starting the home search in January is that it is finally a buyer’s market. This means that conditions are favorable for buyers. We are not sure that this will last into the spring. Right now in many areas in the United States there are 37% more sellers than buyers. that is one of the largest gaps since 2013. That gap gives buyers the opportunity to negotiate and even asked for seller concessions. This also means more selection for homes to buy. The buyer’s market also holds true for the real estate market in Northern Colorado. Getting started in January gives you the opportunity to enjoy conditions that may look very different in just a few months.

Talk to an agent first

What is the first thing to do if you are interested in purchasing a home in 2026? It is not to start scrolling listings or heading to open houses. It is time to have a conversation with a real estate agent. Set up an appointment so you can talk about the process of purchasing home. It will be important to have you questions answered and concerns addressed at this appointment. You can discuss your needs and wants in a home. And finally, and very importantly you can learn strategies to make your offer stand out and get accepted. Your agent can help with a timeline based, on your personal situation and the current market conditions. Lastly, they can recommend a lender for you to connect with to help you with the financial preparation. That lender can assist you in getting pre-approved so you are ready to purchase your home.

If you are even thinking of purchasing in 2026, getting the ball rolling in January can put you in a much stronger position. Remember, the first step is not scrolling on Realtor.com or Zillow. It is instead meeting with a real estate agent who can explain the local market and help you set goals. Lestel would love to be your agent. Give her a call.

Purchasing land

The dream of buying a piece of land and building a home is deeply embedded in the American psyche. It is kind of like apple pie and baseball. The idea of owning land has become a symbol of freedom and opportunity. Buying land gives you the opportunity to build your dream home from the ground up. But unlike a standard home purchase, buying land comes with complexities. These complexities include zoning restrictions, utility costs, financing hurdels and possible environmental red tape. Before you buy it is important to understand what can actually be done with the land that you are interested in.

Due diligence

It is important to do your homework. The number one pitfall that can occur is that you can’t use the land for what you wanted to use it for. When looking at land, it is best to work on the idea that the land is completely unbuildable unless your research and due diligence shows otherwise. Don’t assume anything. All this means reviewing local ordinances for setbacks, height limits, ability to obtain affordable utilities to the property. The property should be surveyed. Doing your due diligence is important. It can make the difference between knowing you are purchasing a usable piece of land and making a big mistake. Let’s look into what should be included in yoru due diligence.

Zoning and permitted use

Verify exactly what can and cannot be built on the land. Not all land labeled as residential will allow for single family homes, for example. The land may have set backs that make it impossible to build a home that you are wanting in the building envelop. It is wise to consider using a land-use attorney to review all documents.

Access

The land isn’t worth much if you cannot legally reach it. It is important to verify that you have recorded legal access, through the use of a road or recorded easement. Also, in Colorado, access can mean that you can reach the property given any type of weather. For example, can you get to the property in the winter time when you would like to spend time there. It is is only accessible part of the year, are you still interested in the land?

Utilities

What will it cost to bring utilities to the property? If public water is not available, what will it cost to drill a well? Also can you provide septic on the property or is municipal sewer an available option. If a septic system is required, it will be important to do a percolation test. This will test to see that wastewater can be absorb by the land. If the soil cannot absorb the wastewater, your ability to build on the land could be denied.

Survey and boundaries

Know what you are buying. It will be important to know where the property lines are. Do not depend on the sellers old survey or tax maps. Spend the money to have a new survey completed on the property. Once the survey is completed you should be able to identify encroachments. Additionally the survey should ensure that the legal description matches the land that you are wanting to purchase.

Environmental assessments

The last thing to check can be considered the most important. A Phase I environmental assessment and possibly a Phase II along with geotechnical testing can be use to uncover conditions that can negatively impact building on the land you would like to purchase. These different tests screen for issues like contamination, soil instability or the possibility of subsurface items that could make building on the land unsafe or too expensive.

As you can see, buying land is not like buying a house. There is research that must be done to ensure that you can use the property the way that you intended. Since this is the case, it is important to take your time. Do your due diligence and make sure that you can live your dream on your land.

Is the appraisal important?

Part of the home buying process is the appraisal. Some agents refer to the appraisal as the last hurtle in the under contract process. Is the appraisal important in the real estate transaction? The answer in a word is, YES! The value of the appraisal can mean the difference between the house selling to a particular buyer or not.

What is an appraisal?

Let’s go over what an appraisal is and details about it. An appraisal is one person’s opinion on the value of a property. It is required by the lender most of the time, if the buyer is getting a loan. Sometimes if the buyer is putting a significant amount down, over 40%, the lender may not requiring an appraisal. A buyer that is paying cash for a property, may decide to get an appraisal just to make sure the price they are paying is fair. The appraisal is ordered by the lender or buyer if paying cash. Once the property has been viewed by the appraiser, the appraiser compares the subject property to others. The appraiser prepares a report and offers an opinion of the value of the property. Most of the time that value is the same as the contract price. But, what happens if it isn’t?

Appraisal is high

If the value of the property is higher, it can make the buyer feel like they got a “deal” on the home. Nothing changes. There is no price increase. The buyer does not have to pay more for the home. They purchase the home feeling like they have a little bit of equity already.

Appraisal is low

If the appraisal comes in below the contract price, there are several options. The buyer can bring the difference to closing and go ahead and close. What does that mean? Let’s say the buyer is under contract on a property priced at $500,000 and the appraisal comes in at $490,000. The buyer can pay the difference in the gap between the two numbers. Meaning, the buyer can bring an additional $10,000 that is not being used as their down payment to closing to cover the gap. If that is not possible, what else can happen? Another option is the seller can agree to sell the home for $390,000. Or also the buyer can choose to walk away from the home without penalty.

Contesting the appraisal

There is one final option for the buyer. This option involves contesting the value/opinion of the appraisal and asking that the appraisal be reviewed. This process is called a reconsideration of value. Often times, in order to have this done, the buyer or their agent needs to find errors in the appraisal. Another possibility is to note that the appraiser did not include important information. It is not common that this leads to a change in the appraised price. Remember, it is the opinion of the appraiser. Most people do not change their opinion.

As you can see, the appraisal is an important part of the process of purchasing a home. If the appraisal does not come in at the contract price, it can be a stumbling block in the transaction. This may be too significant to overcome and can mean the buyer is not able to purchase the home. There is not much that can be done to avoid problems. Involve your agent in determining the price that you arrive at in your offer. Make sure that your agent has comparable properties that can be provided to the appraiser if needed. Know that problems occur very infrequently. Hold your breath and hope it doesn’t happen to you.

Fall buyers can get some deals

In real estate we know that spring is often the best time to sell. Buyers are often told that it is the best time to buy a home. Buyers love that their kids are about to be on summer break. But what about buying in the fall?

Fall flexibility

Fall can be a quieter season with more flexibility. It can be an advantageous time from for home buyers. Seller who listed their home for sale in the spring and have not yet sold, are getting anxious. Furthermore, the sellers that are not very motivated often pull their homes off the market once fall arrives. This still leaves a good amount of inventory. This fall after a tough summer with sluggish home sales, it is a good time for well-prepared buyer to be in the market.

Less competition

Fall also means lower buyer competition and more negotiating power for buyers. Additionally, there are many sellers that have the mind set that they want to close before the end of the year. That can provide buyers with additional leverage in negotiating. Less competition means fewer bidding wars and more power to negotiate the extras. Extras can include closing cast, home warranties and repairs at time of inspection. Here’s an example. A seller knows that they need to replace the roof on their home. The house that they are selling has been on the market all summer without selling. The seller said they would negotiate the $30,000 cost of the roof. Now, when the seller received and offer, they say they will be happy to replace the roof for the buyer. No negotiation needed. What a difference a few months and fall weather can make in sellers attitudes.

Ask your lender for a deal

In addition to getting deals from sellers, buyers in the fall, may be able to look to their lender for savings. Lenders can offer closing cost incentives too. Many financial institutions set year-end volume goals. These can translate into savings for fall buyers. Many times these deals are not advertised and all a buyer needs to do is ask and close before the end of the year. Some lenders offer seasonal deals like discounts on underwriting fees, rate buy-downs or waiving processing fees. Be sure to ask your lender what deals they might be offering.

Builders are ready to deal

Another way to save money buying a house in the fall is if you purchase new construction. If you are considering a newly built home, fall might be one of the best times to make your move. This time of year, builders are eager to offload standing inventory before the end of the year. In fact, according to the National Association of Home Builders, 66% of home builders reported using incentives like mortgage rate buy-downs and discount in August. This is the highest number reported in five years.

Remember when shopping for a home that purchase price is important, but it only once part of the deal. Concessions, credits and agreed upon repairs can save thousands of dollars. Don’t forget to ask your lender if there are any special offers if you close your loan before the end of the year. Also consider buying or at least looking at new construction. New home builders may prove to provide some of the best options for fall pricing and incentives. All in all, fall is a great time to purchase a home!

You bought a fixer upper

Congratulations, you are the proud owner of a fixer upper. You are looking forward to rolling up your sleeves and getting to work. You are hoping that with some elbow grease the place will be the home of your dreams. Buying a home that needs work can be a great opportunity, as long as you know what you are getting yourself into. But, what should your first project be. There are so many things to do. It is tempting to start with the projects that are visible and bring instant joy. Like a stylish light fixture, fresh paint or a new kitchen. But that great new light fixture will not keep you warm if the furnace is on its last leg.

What is first?

Knowing what jobs to tackle and in what order is very important. Here is a simple breakdown. First start with core systems and safety items. Heating, cooling, electrical and plumbing should be looked at and dealt with before anything else. Another thing to look at is major issues like the roof. Also look at hazards that make the home unsafe. This can include things like broken stairs or holes in a deck. These items should be first on the to do list. What is after that? Keep reading.

Next on the list should be high impact living spaces. These include places that get daily use like the kitchen, bathrooms and main gathering areas. You also should look at practical upgrades like replacing the worn-out garage door. Simple outdoor improvements can also make a big impact. Tidy up the landscape, trim the bushes and edge the lawn.

Save for later

Then there are things that should be saved for later after all of the above items have been tackled. These include the cosmetic touches like fresh paint, flooring and new light fixtures. These are the things that it is so tempting to start with. You can tell from this, that the things that will earn you the biggest compliments are not what you should do first. Your friends are not going to get excited about your new roof, water heater or your shining new furnace. But they will appreciate the hot water and the warm house when they come to visit.

Figuring what needs to be done and in what order can feel a bit overwhelming. Experts can help you make smart decisions. The inspector that did a thorough inspection of the home before you purchased, probably outlined problems that were urgent. Your inspector may have even outlined the costs involved in the repairs. Lean on professional, set a budget and a realistic timeline for the work to be completed. Take it one step at a time and accomplish things in the order of importance. Following these guidelines will make your fixer-upper more than just a hopeful term. It can become the home you always imagined.

Congratulations!

You found the perfect home, made an offer and the seller accepted. You are under contract. Congratulations! I am sure that you are excited. However, when you checked the status of the home you have under contract, it is marked “accepting back-up offers.” What does that mean?

Accepted offer

Once a seller has accepted an offer on their home, it is an an important first step, but there is no guarantee that the transaction will close. During the under contract period, many things can go wrong. The buyer will need to get final approval on their loan, there is the home inspection and the appraisal. Any one of these steps might cause a problem. If a significant problem occurs at any one of these steps, the buyer may cancel the contract. Then the seller must start all over. This is why many MLS listings say, “accepting back-up offers.” But the seller is under contract. So, what does this mean for a seller to accept a back-up offer?

Pending or active back-up

After a seller accepts an offer from a buyer they have two choices. They can have their agent mark their home pending, or active back-up. A home with a pending status does not have any more showings. The seller is hoping and betting that the buyer that has their home under contract will be able to close on their home. However, the other option for the sellers is active back-up. The seller in this situation continues to allow showings and would welcome another offer. But how can they do that you ask? If the seller accepts a second offer, that second offer waits for something to go wrong with the offer in first position. Perhaps the buyer is not able to get a loan or the buyer and seller are not able to negotiate the inspection. If the first offer cancels for any reason, the back-up offer moves into first position and is allowed to proceed in purchasing the home.

Just wait

The role of the offer in back up position is to be patient and wait. That buyer needs to stay in close contact with their agent. As a back-up buyer you keep your fingers crossed and hope that something will go wrong with the first offer. The back-up buyers do nothing but wait. They do not proceeds with their loan or inspections. Remember when submitting a back-up offer, the offer is binding. You will not be able to renegotiate the terms of the contract later. Be prepared to buy the home at the agreed upon price and with the agreed upon terms.

Submitting a back-up offer on a home already under contract, that you love, is the best chance of buying that home. Only time will tell if it is possible for the home to be yours.

Is it a buyer’s market?

When it is time to buy or sell an important question to answer is who holds the power in the market. Today, after years of a strong sellers market with sellers calling the shots and getting what they want, the tide is turning. Homes for sale are staying on the market longer and price reductions are more common. Sometimes sellers are even offering incentives, like help buying down the interest rate for the buyer on their loan. That would have been unthinkable just a couple of years ago.

Still if you are a buyer or a seller do not expect a full reversal when you step into the market today. Certainly price points are leaning more in favor of the buyers than other price ranges. It is important to talk to your agent about the market in your price range.

What is a buyer’s market?

In simple terms, a buyer’s market occurs when the number of homes for sale exceeds the number of active buyers. It is a simple shift in supply and demand. When supply exceeds demand buyers have more choices, more room to negotiate and more time to make a decision. Another way to describe this is there is a high inventory of homes for sale.

What are other indicators of a buyer’s market?

Another sign of a buyers market is slower sales. The number of days on the market is increasing for sellers. The average days on the market now is a median of 51 days. That is longer than one year ago. This is advantageous for buyers because they have time to look and consider their choices.

Price drops are another indicator of a buyers market. With more competition and slower sales, sellers are starting to cut prices to stay in the game. Nearly one in five homes had a price reduction last month. The highest rate since at least 2016.

More motivated sellers can also provide concessions. These concessions can be for a rate buy down, closing costs or because the seller did not replace the carpet and is offering a carpet allowance. All of these indicators show that sellers are no longer in complete control of the market. Most agents working in today’s market would describe our market in Northern Colorado as a buyer friendly market. Buyers that are patient, strategic and ready to negotiate just might get a deal.

Whether you are a buyer or a seller it is important that you are informed. Do not rely on the headlines. Consult with an experienced agent to educate you on what to expect. Then you will know how to best navigate today’s market.