Tag: Home Buyer Information

Is Homeownership Really Out of Reach?

If you have been wishing that you could buy your first home, there is a good chance you have been seeing the headlines. Reading those headlines would discourage anyone. But as with most things headlines can be different than reality. To be fair, it is not easy for first time home buyers to buy a home. Prices have gone up. Interest rates are higher. And rent doesn’t make it easy to save money for a down payment. So, even if you are doing pretty well financially, it is easy to assume you are not in a position to buy. So, is homeownership really out of reach?

When you are looking at social media it is easy to feel like you are behind where you should be and not doing as well as others. You may also be listening to your co-workers that purchased a home a few years ago. All of these little things can eat away at your confidence and suggest that buying a home is not realistic now. But, you are still curious. What questions should you be asking to find out if home ownership is possible?

How do I find out?

The first question to ask is: Am I in a position to buy a home? It is a pretty simple, straight forward question. But you may not know how to get that question answered. So, the next question you need to ask is: Who would I need to ask to get a clear answer? The best person to ask this question to is a local lender. Find someone that works with first time home buyers. You want someone that will be patient and answer your questions. The ones you have and the questions you do not know to ask. When you call this person, ask them if you can set up an appointment to meet with them. If that is too scary, make a phone call and ask if they can send you an online loan application. It doesn’t cost anything to find out.

Who do I ask?

The next question, if you are still nervous to make the phone call is to ask yourself, what is the worst thing that can happen if I try to find out? By making the phone call you are not committing to anything. You are working to get answers to your questions. The worst that could happen is you could confirm that you are not quite ready. If you are not quite ready, you can make a plan. The plan may be to save more money for your down payment. You may need to improve your credit. You can find out what is needed to make that happen.

What if the answer to the question is that you are ready to buy a home? This does not mean that you need to rush out and buy something tomorrow. It means that you now know where you stand and that you have options. You can not decide what timing works for you.

If you have been feeling like buying your first home is out of reach you are not alone. Between rising prices, higher interest rates and what the headlines are saying, you may not feel like you can. If you can have a quick conversation with a mortgage lender, you can have a clear picture of where you stand. You may find out you are closer than you think.

What is a home’s sun score?

If you have been shopping for a new place to call home you may have noticed that times have changed. It used to be that you would view a few photos, read the remarks and set up an appointment to see the house in person. Today, as a buyer, you can explore virtual tours, floor plans, flood maps, walkability scores, noise rankings and commute times before you ever set foot inside a home. Well, if that is not enough information, now you can explore how much sunlight a home gets during the day. We have all read the Realtor’s description of the home. They talk about how light and bright it is and how the home is flooded with natural light. Now you can verify that information. You can figure out the sun score and see if you think the home will work for you.

Where do I find sun scores?

When can you get this information? Redfin.com has launched the sun score to learn how much natural light a home received room by room and hour by hour using AI and geospatial data. To be fair, most buyer really do care about this. The amount of sunlight a home gets can impact the feel of a home. Sunlight preferences are subjective. Not everyone wants a light and bright home. Some people want a home with shade, cooler rooms, mature trees and a sense of privacy. The sun score can help these people find their perfect home too.

You can change the score

Some might say that this is going to cause buyers to over think things. You can change a homes sun score by trimming trees, opening blinds, repainting rooms to brighter colors and even improve lighting. All of these things can affect how light and bright a home is. Also, how much sunlight a home gets overall depends on a huge number of factors that have little to do with the home itself. The major factors are the climate, weather patterns, surrounding terrain, time of year and even the direction the home faces.

As a buyer today you have access to more data, rankings and scoring systems than ever before. Tools like this can be very useful, however, they might cause you to over think your decision. Make sure that you keep in mind the bigger priorities like the layout, affordability and overall fit of the home. Everyone will have preferences. The important thing to remember is no home is perfect. You can make it your own once you move in.

Can You Trust AI for Real Estate Advice?

People are turning to AI for just about anything that you can think of. They are using it to help with awkward conversations. People are using AI to figure out strange health symptoms. To decide if it is worth a call to the doctor or a trip to urgent care. If only seems natural that people would also use AI when buying and selling real estate. Can you trust AI for real estate advice? AI can be a very useful tool. It can give you a general idea of how the real estate process works. It can help you understand terminology. But AI has its limitations. AI may not always give you accurate information.

There’s a story circulating on the internet. A well known celebrity used AI for guidance during real estate negotiations of a real estate contract. AI told the seller that he was accepting an offer that was too low. The buyer, in this negotiation also consulted AI. They were told that they were paying too much. Both can not be right! In this situation, the agents involved were able to step in and educate buyer and seller about the local market. That specific information was helpful in bringing the parties back to negotiations. Buyer and seller were able to make a deal. The correct, specific information on the local real estate market made the difference.

Should you trust AI?

Very few people actually trust AI, yet many still follow it’s advice. Fifty eight percent of people admit AI has influenced their opinions. Thirty two percent of people say that hey do not fully understand how AI generates its answers. But even with all of this skepticism many people still rely on the confident sounding answers from AI over a trusted, verified source.

How important is AI information?

This makes for a tricky situation. If you don’t understand how something works, it becomes very hard to recognize when it might be providing wrong information. AI is able to provide an answer in an authoritative manner. This makes AI information very easy to accept at face value. So how do you decide when and whether to use AI? It comes down to, use AI. Ask it questions. Also ask advice from friends and family. But at the end of the day, make sure that you have an agent that you like and trust. That agent can help you weigh the information that you have received. Then you can make confident decisions that work for you specific situation.

Seller’s Concessions in Home Sales

As a home seller you have options when deciding how to market your property. One of the options that you have is offering concessions to make your property more attractive to buyers.

What is a seller’s concession in a home sale and how do concessions work? A seller’s concession is when the seller pays for a certain cost that is typically a buyers cost. When a seller does this it can make their property more attractive to a buyer. Concessions can also help to make home buying more affordable for a buyer. For example, the seller could pay $5,000 for the buyer to buy down the interest rate on the buyers loan. The seller could also agree to pay for the buyers loan closing costs. The seller should be specific on the dollar figure that they will pay towards these costs.

Concessions help buyers

How do seller’s concessions work? Concessions can be advertised upfront or negotiated as a part of the home purchase agreement. In a written offer, the buyer will request a specific amount that will be credited to the buyer at closing. The buyer needs to know they will be receiving a credit on their settlement sheet at closing, not a check. The sellers concession will be a cost to the seller on their settlement sheet.

Not all concessions are helpful

Concessions can make the home more affordable with the buyer using them to buy down the interest rate. The sellers concession can also pay loan closing costs. Another possible concession is to make the home more attractive to a buyer. This can be in the from of a dollar figure towards replacement of carpet, as an example. This concession may not help a seller sell their home. When a buyer sees a credit for carpet replacement in MLS, it gives the buyer a negative impression. This impression is before the buyer has ever even looked at the home. The buyer can wonder what else is wrong with the home. This may lead to fewer showings with buyers ruling out a home they perceive needs work.

Sellers should know there’s a limit to the amount that can be offered as a concession to a buyer getting a loan. When planning a concession credit to a specific buyer, it is wise to speak with the buyers lender first. The lender can address the verbiage to appear in the contract and the total amount that can be provided.

Sellers can use sellers concessions to make their home more affordable and more attractive to buyers. A sellers concession maybe more affect than a price reduction. The concession could make it possible for a buyer to buy a home they might not otherwise to able to afford. Sellers should talk with their agent to weigh options and develop a strategy that can get their home sold.

Neighborhood Selection: Tips for Home Buyers

We have all heard the real estate saying, “location, location, location.” The saying reminds us that the location of a property is one of the most important things to look at when purchasing a property. Location is usually one of the first things, along with budget that a buyer talks about. They may want to live close to family or have a short commute to work or school. But how do you pick a neighborhood to live in?

You are not just buying real estate

Buying a home is not just purchasing real estate. It is also choosing a lifestyle that come with the neighborhood. Each neighborhood has its own vibe and attributes. But how do you find out the pros and cons of a neighborhood? Let your real estate agent be your guide. A good agent should act like a local guide. They can offer honest insight not on just the attributes but also any drawbacks to consider.

Do your research

Another good source of information is chatting with people that provide services in the area that you are interested in. Stop at the local, neighborhood coffee shop. Ask the servers some questions. If you are a god owner, take your dog for a walk through the neighborhood that you are considering. Ask a fellow dog walker some questions. Here are some ideas. “How long have you lived in the neighborhood?” “How has the neighborhood changed over the years?” “Is there anything you wished you had known before you moved into the neighborhood?” “What is your favorite thing about living where you do?” These questions delivered in a lighthearted manner, can give you some great insight into the community. They can also give you a feel for what it might be like to live there.

Take a walk

While you are on your dog walk notice how the homes are maintained. Are the streets lined with trees or graffiti? Stop in some of the neighborhood shops in the neighborhood. Are the stores thriving and well maintained or are many retail spaces vacant. This leisurely walk through the area can give you a feel for the community energy.

Check out social media

Check out the neighborhood that you are considering on social media. This can provide you with some unfiltered insight into the areas character and culture. What does the neighborhood prioritize? What are the complaints on social media? Do their values align with yours? Social media can give you information on day-to-day happenings, special events and local recommendations.

Choose a neighborhood is choosing a lifestyle. Like any big decision it deserves research and some reflection. Remember that no neighborhood is perfect. The goal is not to find perfection but to find a match that feels right to you.

Overcoming Mortgage Pre-Approval Anxiety

When people talk about why they are renting, rather than buying, the reasons given are not surprising. Interest rates are too high. Prices are too high. But the real reason may be the fear of getting pre-approved for a mortgage. On paper, getting pre-approved seems simple. It doesn’t take long. In the real estate world, it is the first step in the process of buying a home. What isn’t talked about often enough is how emotional this first step can feel for prospective home buyers. It feels like a stranger deciding whether you are worthy of buying a home. If you are worthy, this stranger will tell you how much you can spend. This is only after you provide an incredible amount of personal information. What if you are told no?

Fears are real

First time home buyers fears are real. This process is emotional and that first step can be hard if you have never taken it before. For a real estate agent, asking a buyer if they are pre-approved is routine. To an agent, calling a lender is routine. For the first time home buyer is can feel like walking into a test you did not study for. There is no real way around this first step in the process, unless you have access to a large amount of cash. What are fears and questions about the process?

Questions you may have

Here’s some questions you may have. Is my credit good enough? Do I have enough money saved for a down payment? What do I do if the amount that I am pre-approved for doesn’t match what homes cost in my market? If you are wondering the answers to these questions, you are not alone. These questions can be answered fairly quickly by a lender. The first step is to call a lender. The next step is to submit a loan application. Once the application has been reviewed you will talk with the lender. In some cases you may be told you are not ready yet. If that is the case you will make a plan on how to get to the point that you are pre-approved. The conversation regarding your pre-approval is not a verdict on your worth. It is a point in time look at your situation.

Lender recommendation

Not all lenders are alike. Some are better with first time home buyers than others. All are typically capable of helping a buyer through the process. But it is best to find a lender that understand the human side of the process. Ask Lestel for a recommendation. She can connect you with a lender that is patient, educational and supportive. The right lender does not judge where you are starting. They help you understand where you are and how to get to where you want to be. Remember that getting pre-approved isn’t a judgement or final verdict on your ability to buy a home. It is simply a starting point. It is important to connect with a good lender that can make the process feel less intimidating. Someone that answers questions, sets expectations and provide you with a road map to home ownership.

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.