Read the latest newsletter from Berkshire Hathaway HomeServices Rocky Mountain Realtors in Colorado Springs. BHHSRMR keeps you updated on market stats, Downtown news and events, plus helpful homebuyer and home seller tips. In this edition, you’ll find an invite to our Downtown Holiday Party, plus understanding your home warranty.
Colorado Springs Real Estate Market
If you’re on the way to purchasing a home and debating your financial situation, let’s look at some of the costs you should expect once you get under contract. This may help you determine if it’s the right time for you to buy or find other sources to help pay for the upfront costs associated with purchasing a house.
Earnest Money Deposit: Your First Out-of-Pocket Cost
Once you start the process of submitting an offer on a home, there are out-of-pocket expenses that you’ll have to be ready for immediately. The earnest money deposit is typically about 1% of the purchase price in the Colorado real estate market, so on a $400,000 home you should expect needing $4,000 in a bank account with immediate access to the money (check, wire, cashier’s check, etc). Although the contract allows for this deposit to be made after the offer is accepted, it’s typical that the seller will want your funds in an account within a few days of a signed contract (usually held at a title company or real estate office in an escrow account). The good news is, this money is truly a deposit and as long as you meet your deadlines and eventually close, you can apply these funds towards your downpayment or other closing costs. In other words, you’ll potentially get the money back but you’ll need the funds available to deposit at the time of your accepted contract.
Home Inspection: It’s More than Just a One Day Event
Your due diligence and inspection period allows for you to do inspections of any kind on the property as long as you’re not negatively altering or damaging the property. This means not only can you do a typical home inspection (in which you hired a home inspector to do an inspection of systems, mechanicals, exterior and interior condition, etc), you can hire contractors for specific issues and inspections. For instance, you may want to have the sewer line scoped, engineering reports of the structural integrity, or substance testing for things like mold or presence of drug residue. Depending on the home inspection company, they can often do testing for things like radon gas levels but there is usually an additional charge. Currently, rates for a home inspection vary depending on the size, age, and other factors of the house, but expect about $400-$500 and then additional items like radon gas and sewer line scoping will run another $150+ each. So, this “inspection amount” can change dramatically based on your concerns and curiosities as a buyer, but it’s not hard to reach nearly $1,000 just for basic inspections. And keep in mind, these contractors and inspectors are paid when the service is rendered so it is a direct out-of-pocket cost while you’re under contract. Also, there are other things that won’t necessarily cost you money but you should definitely consider researching as part of your home inspection period.
Property Survey or Improvement Location Certificate (ILC)
It’s possible that either the lender or title company may require a land survey or ILC. Typically, these are due at time of service and estimated starting cost would be $800+ for this type of service. Usually if the home is in a neighborhood with lot and block, this won’t be a required item. However, during your contract period, you can certainly choose to do this yourself so you are aware of the property boundaries, especially if you’re considering building a new structure, putting up fencing, or expanding the current home.
Downpayment on Your Loan
When you first start the process of searching for a home, you’ll talk with a lender about getting a loan to help pay for the purchase (unless you’re buying with cash). The lender will help find the best type of loan for your situation and qualifications (VA, FHA, Conventional, Jumbo, USDA, etc) and unless you have VA benefits from the military, your loan will probably have a minimum of 3.5% down (FHA) but probably more like 5% down (or more). Based on the type of loan, intended use of property, and other factors this can be 20-25% down. So, with a purchase price of $400,000 you could be looking at $100,000 as a down payment for the loan, and you’ll still have closing costs in addition to that amount. More money down can also reduce your monthly payments, decrease your interest rate, and waive the need for mortgage insurance. Make sure you talk with an experienced real estate agent and your mortgage lender to make sure you understand the entire package and what your monthly payment will be with principle, interest, taxes and insurance (PITI).
Depending on your offer, a portion or all of your closing costs can be paid for by the seller. However, it’s not as typical in a seller’s market as it directly affects their bottom line. So, assuming your paying your own closing costs this will be a collection of fees at closing in addition to your purchase price and loan downpayment, minus any credits you’re receiving. Closing costs include a variety of processing and document fees, lender escrowing funds for things like homeowners insurance and property taxes, appraisal fees, title company fees, recording and document fees, and any administrative fees charged from the real estate company.
Moving Into Your Home
Keep in mind, these expenses aren’t accounting for the setup of your new home, including things like buying furniture, doing landscaping, basement finishes, interior paint and flooring, or simply maintenance issues that might have come up during your inspection. If you can, start putting money away in a separate bank account as an maintenance fund to pay for large expenses like replacing a roof, driveway, exterior painting, tree removal, flooring updates, etc. Ask your agent first when doing these type of updates to help discover if there are ways to save money and for a list of recommended companies.
Despite the curveball of COVID-19, the real estate market continues to thrive. We’re still experiencing a sellers market, often with multiple offers exceeding list price within a few weeks of listing a home. Prices are up and the number of homes sold is still ahead of where we were at this time last year. However, we’re still dealing with the low inventory challenge: simply not having enough homes on the market for the number of buyers that are ready to buy.
Some things have changed regarding getting qualified to buy a home, but typically if you’re back working again with a regular income, there are programs available. Plus, with the incredibly low interest rates, it’s a great time to take advantage of buying a primary residence or investment property. Now’s the time to make a move to take advantage of quickly increasing prices. Consider this: Five years ago in June 2015, the average sale price was just over $279,000. As of this June, we’ve exceeded $400,000.
When our clients say Sell My House Fast Colorado Springs Realtors at Berkshire Hathaway jump to the opportunity and challenge. Our team of experienced real estate agents engage intentional, direct and effective marketing tactics immediately. The specifics might bore you, but the results are what you’ll talk about for years when your home is sold as quickly as some of these.
320 Childe Dr, Colorado Springs, CO 80906
This was perhaps one of the most impressive homes we’ve had the privileged to market and sell. Granted, the absolutely breathtaking views and updated fixtures and amenities helped sell this custom Broadmoor home. But typically, a home in this price range (this home was listed for $799,000) stays on the market for an average of 9 months. With an average price point just above $350,000 for single family homes, this beautiful home in southwest Colorado Springs would typically be expected to have slower showing activity and longer days on market. However, this home was under contract in less than 24 hours with multiple showings and competitive offers that exceeded list price. Real estate agent Wayne Jennings represented the sellers and was able to provide the marketing exposure and tap into the niche buyer group that had been searching for this type of house. Consequently, when it hit the market in April 2019, it was a quick turnaround and huge celebration for the sellers.
230 E Main St, Florence, CO 81226
Just outside of Colorado Springs to the southwest is the quaint town of Florence, CO. It’s been a tourist destination for years, as the town has rightfully claimed the label, “Antique Capital of Colorado” due to the solid option of antique stores along Main Street. With a lower altitude and warmer climate that Colorado Springs, plus a homey small town community, Colorado natives and out-of-state residents are flocking here to vacation, invest, and live. So, a newly renovated single family home on Main Street within walking distance of Florence restaurants, shopping and entertainment has a strong appeal. In fact, many are waiting to jump on an opportunity like this, especially while home prices are still reasonable. That’s exactly what happened at 230 E Main St the day it went on the market. After years of renovations and hard work, the seller made what was an eyesore along Main into a luxurious residence that anyone would love to call home. Buyers quickly set up private showings and the home was under contract within 24 hours.
4988 Old Fountain Blvd, Colorado Springs, CO 80916
Homes all over Colorado Springs are represented by our agents and selling in 24 hours or less! We sell in every area, every price range. With 76% of the sales in the Colorado Springs area in the $200,000-$400,000 price range, there’s a lot of competition among buyers. It’s definitely a seller’s market in this bracket of sales (meaning the seller has the advantage and more power in negotiations, etc) and we saw that on 4988 Old Fountain Blvd. This ranch-style home has a lot of great curb appeal, plus extras like a spacious sunroom and patio, and RV parking on the side of the home. When a homeowner says Sell My House Fast, Colorado Springs real estate market still has it’s challenges in accomplishing this goal. The real estate agent has to be thoughtful of pricing the home correctly, marketing and promoting the right features, and putting it on buyer’s radar before there’s even a sign in the yard. Realtor Marion Meyer nailed it on this one, making sure that her colleagues, potential buyers and other key industry contacts knew this listing was coming soon. Thanks to her thoughtful and intentional homeselling tactics, it’s another case of 24 hours of showings ending in a solid contract for the seller.
Just say the words, “Sell My House Fast Colorado Springs!” When you’re ready to move, so are we. Certainly, we can’t guarantee that your home will sell as quickly as these examples, but we do promise to give you and your home our attention and expertise so that we can sell it as quickly as possible.
The PeakDream Group at Berkshire Hathaway HomeServices Rocky Mountain Realtors has been working hard and with summer right around the corner, sellers are pulling the trigger and getting their homes on the market. Check out these 3 new listings, coming soon to the market in the Colorado Springs area.
611 Hilltop Drive, Colorado Springs, CO 80905 $233,000
Cute, ranch style home in Ivywild area (specifically in the Foothills neighborhood) would be a perfect rental property or ideal as a primary residence. The location is stellar, just up from Ivywild School, a hotspot for music and events which includes a brewery, distillery, and bar. This home includes 2 bedrooms, 1 bathroom, a large 2-car attached garage plus a carport, storage shed, RV parking & deck with a relaxing hot tub. Easy care wood laminate flooring in the main living area and carpeted bedrooms. Walking distance to Bear Creek Park for nature hikes, dog walking, or bike riding. Just minutes from Downtown Colorado Springs. For more details contact Southern Colorado Realtor Marion Meyer
320 Childe Drive, Colorado Springs, CO 80906 $799,000
Your castle above the city in Broadmoor Hills Park. This home boasts of amazing views all up and down the Front Range, including breathtaking landmarks like Garden of the Gods. Enjoy the Colorado days and nights on the custom deck, complete with outdoor kitchen and built-in grill. When dinner is over, relax in your warm hot tub and marvel at the starry night. Plus, you’ll be right at home with the stunning interior with high vaulted ceilings, wood floors, and luxurious working, living, and playing spaces. Perfect for a quiet night at home in your personal theater, or reading your favorite book in one of the many rooms spread out over 5,182 square feet. Complete with 4 bedrooms, 4 bathrooms, and plenty of character. For more information, contact a favorite local Realtor, Wayne Jennings
4134 Anitra Cir, Colorado Springs, CO 80918 $300,000
Step out your door and you’re within walking distance from some of Colorado Springs’ Hot Spots, like University of Colorado at Colorado Springs or the outdoor experience of Palmer Park Open Space. Convenient location near parks, schools, golf courses and more in this 2,200+ square foot home in the Garden Ranch neighborhood. Versatile floor plan perfect for primary residence or an investment property in Colorado, with 3 bedrooms, 3 bathrooms and a 2 car garage. For more information, your experienced real estate agent is ready to help
This 1953 built rancher house has a lot going for it! It’s a brand new listing in Central Colorado Springs and checks many of the boxes for a buyer looking for a new home, but the outdoor spaces, interior upgrades and proximity to amenities set this home apart.
Outdoor Spaces Create Peaceful and Relaxing Moments
Sometimes the outdoor space in a home can be overlooked, but when considering a home these thoughtful environments can add value and livable space. Especially when you consider the moderate climate of Colorado Springs, with bragging rights of over 300 days of sunshine throughout the year. Even the winter months in this semi-arid climate, homeowners can enjoy comfortable evenings on the patio, outdoor grilling and al fresco dining.
This home at 1115 Foote Ave captures all the senses, with lush flower gardens lining the yard and a custom stamped concrete patio directly off the back sliding door. Enjoy your favorite streaming music service while you relax, thanks to the included speaker system both inside and outside the home. The large cement patio is versatile, with covered and uncovered portions. Just beyond the patio, the fully landscaped flat yard is very useable and a perfect location for barbecues with friends and family, or a quite afternoon in the sunshine with your favorite book.
Interior Upgrades Provide Peace of Mind and More Money
Besides the large backyard which adds extra living areas to the home, the interior of the house includes 2,468 square feet of interior living space, plus a 1 car garage not included in those figures. Thankfully, this home has been thoughtfully updated and remodeled and leaves a new buyer with few honey-do projects. From granite countertops and stainless steel appliances in the kitchen, to practical and luxurious bathroom updates, the inside of this brick home is nearly move-in ready. You’ll feel some of the upgrades as well, like the air conditioning and 2 cozy fireplaces.
There are upgrades around every corner, which leaves you one less thing to worry about. Instead, it leaves more money for customizing the home decor with new furniture, window coverings, and a few pieces of art from your local galleries.
Proximity To Amenities Make This Location Superb
Whether you are working, playing, relaxing or having a night out on the town, the location of 1115 N Foote Ave puts you in the right middle of the action. Amenities within a mile include UC Health Memorial Hospital Central, Patty Jewett Municipal Golf Course, U.S Olympic Training Center and Downtown Colorado Springs. Enjoying some of the excellent locally owned restaurants and great events and entertainment in Colorado Springs are just a short Lyft of Uber ride away. You’ll also enjoy parks and trails within walking distance of your new home, ready for your mountain bike, running shoes, or dog walks. Whether you choose to live in the home, or use it as a income-producing VRBO you’ll find the location meets many needs and provides plenty of convenience with its central location in the Top O The Town neighborhood.
So start the process today of placing yourself where you need to be! Request a showing of this beautifully renovated home and see if it’s right for you. If not, we have plenty more options to show you.
This home is listed by Berkshire Hathaway HomeServices Rocky Mountain Realtors Agent Gary Peacock. For more information and additional photos, see 1115 N Foote Ave, Colorado Springs, CO 80909 MLS#7099365
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1115 N Foote Ave, Colorado Springs CO 80909 Photo Gallery
This real estate market has taken Colorado Springs Realtors on a wild ride, but is this slight change in the market a hint of what’s coming in future months?
We knew the skyrocketing prices and home values were not sustainable for very long and July brought some decreases in average sales price and more listings on the market. For the month of July 2018, our average sale price dropped $14,000 for single family homes to $347,517 which is a more significant month-to-month change than we’ve seen in over 2 years. Many of the past months have been constant increases and made for a highly unbalanced seller’s market. July has been the first we’ve seen buyers starting to feel some relief in our market, as sellers decrease prices and more people are selling. In fact, we exceeded 2,300 active homes on the market – an amount we haven’t seen since July 2017.
Interestingly, we have not seen a significant increase in “Days on Market” which means homes are selling just a quickly, but they are selling for less and there is actually more inventory (homes) to choose from. As of the end of July, our average days on market was 21 days for El Paso County. Keep in mind, various areas of town have different stats, like 45 days in Briargate versus 10 days in Central Colorado Springs.
So should you be worried? No. The market is correcting and finally allowing for a more balanced and fair market, for both buyers and sellers. Now, it should be more about the home and negotiations can become an interaction where both have to give a little. Also, this isn’t yet a verifiable trend – is just one month of changes – and we could see these trends reverse in August as families move before the beginning of school. We often see small ups and downs around this time of year, and then a quick pick up again in the Fall months.
For now, buyers, you should jump on the opportunity of lower prices before interest rates increase anymore. Sellers, most of you are still getting amazing appreciation on your home and full list price, but you may not have 15 offers within the first day…. But there are always exceptions!
Contact your favorite experienced real estate agent for more insights, stats and advice on how to handle your specific life changes and real estate transitions.
As we launch into the summer season, it’s going to be easier to sell a home but tough as a buyer. The May 2018 numbers have been released, and we continue to have more home sales each month and fewer homes being listed. Although our days on market are down even from the previous month (April 2018), our average home price continues to increase.
Keep in mind, these stats are for the entire Pikes Peak MLS, which includes El Paso County as well as other surrounding counties including parts of Teller, Chaffee, Custer, Douglas, Elbert, Fremont, Lincoln, Park and Pueblo.
Average Home Price: $355,927 (Single family homes and patio homes – doesn’t include condos/townhomes)
This has increased from $348,527 only a month earlier in April 2018. As the average home price increases, we see more sales activity in the $300,000-$400,000 price range. Just a few months ago, almost half of the sales activity was in the $200,000-$300,000 price range. As of May 2018, each price range now make up about 30% of sales. That means over 60% of home sales between $200,000-$400,000. If you’re a buyer in this price range, you’re competing in an extremely competitive market, and homes on average are selling for 100.54% of list price (meaning, over the listed price).
Average Days on Market: Dropped to 22
If you’re just looking at El Paso County, the average days on market is 21. However, for our entire PPMLS area, it’s 22 days which is the average across all price ranges. This has decreased from April as well, so homes are selling quicker even in the past month. Also, if you’re in that “hot spot” price range of $200K-$400,000 the average days on market for the past 90 days = 6 days on market. Homes in that high demand bracket are selling in less than a week.
Sold Homes and New Listings Both Up
We saw an increase in the number of homes sold in May, jumping from 1,286 in April to 1,568 in May. So, nearly a 22% increase in sales of homes and as mentioned above, they’re selling for an average of $7,000 more than they sold in April.
Also, our total number of new listings in May was 2,080, just about 100 more new listings than we saw in April (1,972). It’s almost exactly what we saw in May 2017 as well, when we had 2,053 new listings so year-over-year there was no significant change.
What to Expect for Summer 2018
We have no reason to believe this market will slow down, even in the next few years. It will remain a seller’s market and prices will likely continue to increase with homeowners seeing drastic appreciation (probably averaging 13-18% per year). Whether you’re looking at statistics for single family homes, or condos and townhomes, all area appreciating very well and at a steady rate. It matters more on the area, rather than the style of home. Contact your favorite agent to find out stats on your specific neighborhood and how it’s appreciating in value.
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Flying Horse rancher coming soon at 12928 Cupcake Hts in The Villages of Siena!
Beautifully maintained patio home in highly desirable Flying Horse will be on the market within a matter of weeks. Your first opportunity to see this 5 bedroom, 4 bathroom, 3 car-garage home will be during the Open House event on Sunday May 27th from 1:00pm – 3:00pm.
This practical and spacious home was built in 2015 by Classic Homes. It’s known as The Landau floor plan and there’s plenty of usable space to spread out in this gorgeous 3,790 square foot ranch-style patio home. The Landau model comes complete with a main level master plus another 4 bedrooms which leave flexibility for an office, art studio, guest bedrooms or hobby room.
The large upgraded kitchen is complete with granite countertops, stainless appliances, and high ceilings. The open concept floor plan allows a great space for entertaining, including a private walk-out patio off the main living area.
Plus, consider the wonderful location of this Classic home, comfortably situated in The Villages of Siena in Academy School District 20. Close to shopping, entertainment, recreation and much more.
For more information, please contact the listing agent: Kym Palomba
First quarter of the calendar year brought nearly a mirror image of where we were at this time last year regarding number of new listings and sales. Those factors are small, single digit percentage changes. However, our average sales price for both single family homes and townhome/condos is up significantly, and 1st quarter brought an increase in interest rates as well.
How much are homes selling for in the Pikes Peak region?
Currently, our average sales price for a single family home is $335,439 (cumulative for January – March 2018). For townhomes and condos, the average cumulative sales price is $213,631. Single family prices are up 12.5% from first quarter last year, and condo/townhome average price is at an amazing 14.5%. That’s some pretty nice appreciation on your investment over a 12 month period!
Home Inventory and Sales Up in March versus February 2018
As we jump into the Spring season, sellers and buyers have been busy in the month of March 2018. The total number of new listings in March was 1,758 single family homes, which is up almost 43% from February 2018 (1,233 new listings in February). It’s even more significant with townhomes and condos: we still saw 270 units listed in March, which was a 86% increase from February. We expect these trends to continue through summer, as it’s typically the busiest season for buying and selling homes. In fact, the trend has already started as the days on market for single family homes dropped from 40 days (February 2018) to 28 days in March 2018.
Interest Rates Are Up As Well
Not only are home prices increasing, increasing interest rates have had an impact on 1st quarter of 2018 as well. Although we’re still spoiled with historically low rates, we did notice a quick jump in the past 3 months of nearly half a point. Interest rates change based on the type of loan and other factors, but currently conventional 30-year loan rates are around 4.375%.
What’s The Future for This Market?
We all wish we had a crystal ball to see into the future and tell you exactly what’s going to happen in the world of real estate. Analyst are predicting this market will most likely continue for the next 4 years or so, meaning home prices will keep increasing and seller’s will have the edge in most price ranges. If you’re thinking of buying a home, now’s the time.