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Cory Dudley

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Looking to buy a home while in a competitive housing market can be a stressful undertaking, especially in housing markets like the Boulder area, where inventory is scarce.  When inventory is low, sellers typically receive multiple offers for their homes and buyers can feel increasingly frustrated if their offers are rejected.

But getting your offer rejected doesn’t have to mean “The End.”  An option that has been gaining popularity is the back-up offer.  If your offer was close to the one that was accepted by the seller, then yours could potentially become a back-up offer in the event that the first buyer’s offer falls through.

There are a variety of reasons why a real estate contract may fall through: an appraisal can be inaccurate, the buyer is missing crucial parts of their paperwork, the buyer may be too demanding of the seller for repairs or repair credits, problems with loan qualification, or changes in the buyer’s financial life.  Perhaps the buyer changes their mind about this house or finds another house that they like better; any of these could mean a canceled real estate contract.

If you have that back-up offer in place when a deal falls through, you automatically become the new buyer.  This means that the house won’t go back on the market and you avoid any other potential offers or bidding wars on the home.  The seller may feel a little more pressure to make your deal go through, considering their first attempt failed, and they might be more willing to offer repairs or repair credits if a problem is encountered during the home inspection phase.

However, there are also some important things to consider when making a back-up offer.  If the first buyer knows of this back-up plan, they may be more motivated to keep the sale on track because they know that they won’t get a second shot at purchasing the home.  Secondly, consider the reasons why the first sale fell through.  If the problem lay with the buyer, then it shouldn’t be too much of a concern.  But if there were problems with the seller or with the home itself, you may not wish to pursue this purchase after all.

The back-up offer is a legally binding contract.  If the primary deal falls through, you are now obligated to step in and purchase the home.  Of course, there can be language written into the offer that declares it void should you have an accepted offer with another seller.  This is very helpful as you can continue your home search instead of putting everything on hold to see if the primary deal will fall through.  Depending on the arrangement, you may not even need to put any earnest money down when making this back-up offer.  In theory, you could even have multiple back-up offers in place while still searching for a home elsewhere.

Each situation will be different depending on the home and seller in question.  I would love to discuss your back-up offer options and help make your home buying process as painless as possible. Please let me know how I can help.

Economic ups and downs continue to shape mortgage rates and prices of homes. Looking back several decades, you can comparatively see that we are currently are experiencing a strong real estate market and low mortgage costs but no one knows when and how much these rates will change. While these average rates remain low, it makes now a great time to make an investment before rates rise again. Here's an infographic to show you how rates have performed historically. Homeownership is now more affordable than ever.

  

Latino Community Essential in Today’s Real Estate Market

by Cory Dudley

The housing crash of 2007 nearly threw the United States into another depression; its reach and effect on American homeowners was that profound.  The Hispanic community was the hardest hit ethnicity in the 2007 crash, with an estimated 1.3 million either having lost their homes to foreclosure, or were at serious risk of losing their homes.

These Hispanic families are now experiencing opportunities to buy a home again, or are finally seeing equity return in their homes so that they can sell and move up.  The Hispanic community also represents a huge segment of the market today.  The number of Hispanic households has grown to 14.7 million in 2013 and today a Hispanic youth turns 18 every minute of every day,” according to the 2013 State of Hispanic Homeownership Report.  This means that about 4 out of every 10 new households are currently Hispanic.  This large of a group demands real and specialized attention. 

In the below infographic, we can project how the Hispanic community will continue to be an influence in the housing market by examining their school enrollment statistics.


However, despite the increasing home values and the still record-low interest rates, there are still barriers that exist that are keeping the Hispanic community from entering the housing market today.  According to a NAHREP report (National Association of Hispanic Real Estate Professionals) half of all Hispanic home buyers will be first time home buyers, but the FHA is coming under continued financial strain, which could tighten underwriting guidelines—having a profound impact on Hispanic first-time home ownership.

Another large barrier is a single-family home inventory shortage.  In fact, inventory is at its lowest in decades as more and more families are upside down on their mortgages, prohibiting them from being able to sell without substantial losses.

The number of Hispanic households has grown from 9.2 million in 2000 to 14.7 million in 2013, an increase of 5.5 million, representing a growth rate of 60 percent.  It is up to today’s real estate professionals to help the community eliminate these barriers where possible and help these families obtain their dream of homeownership.  

If you have more questions about becoming a first-time homeowner, or how to make the transition from your current home to purchasing a new one, please contact me.  I am an English/Spanish bi-lingual and NAHREP-authorized agent who has extensive experience working with Latinos to solve a multitude of housing needs.  I would love to work with you to solve your needs as well!

Consider Multifamily Investment Properties

by Cory Dudley

Multifamily Housing Properties are an Important Asset in your Real Estate Portfolio.

I personally purchased this 3 unit multifamily property here in Longmont, Colorado only two short years ago. The market was soft, the property was mismanaged, yet the bones and mechanics were in excellent shape.

At the time the value was in the low 200’s and now it would sell in the low 300’s. This is good news, right?

Well the real upside to this transaction is the cash flow that typically comes from well-maintained, well-managed, and well-marketed multifamily units.  I simply invested $5,000.00 of my own funds and financed the remainder. Now it brings me over $700.00 in positive cash flow EVERY month. Realtor magazine recently explained some of the benefits in a nice article you can read here.

If you or someone you know is at a point in life where a steady source of income sounds attractive, I would highly recommend that you consider multifamily units.

Call me today to discuss your options. I have years of experience dealing in multifamily and I can help you too!

Why Now is the Time to Sell

by Cory Dudley

Greetings!

I hope this letter finds you enjoying the wonderful spring weather – I know for us, we love the riot of color with everything in bloom, and being able to get out on the bikes more.

I’m reaching out because we have a new kind of “housing crisis” in Northern Colorado – specifically, not enough inventory for sale to give prospective buyers the options they need to get into a home! If you’ve ever considered selling, or someone you know has mentioned it, please have them – or you – contact me right away so that we can discuss not only current market value, but also the best strategy to get the home sold quickly and for top dollar.

National Market Perspective:

In a recent blog postFreddieMac explained that “housing is stronger today than at any point since the Great Recession began and hit bottom in 2009.” They then gave three reasons which support their position:

  1. Home sales are up 13% since their low point.
  2. Housing starts are up 50% since they bottomed out.
  3. House Prices are up 16% since their trough.

Projections Going Forward

FreddieMac also believes that the market will continue to improve through 2014. They projected:

  1. Home sales to increase about 3% in 2014 as the purchase market continues to evolve
  2. Almost 20% growth for housing starts in 2014, which will begin to help ease tight inventories in many markets
  3. Home value increases to continue their positive momentum in 2014

Frank Nothaft, Freddie Mac Vice President and Chief Economist, further explained what the housing market may look like in the agency’s April 2014 U.S. Economic and Housing Market Outlook:

"Tight inventory may pose a significant challenge for home buyers in many markets across the country, which may result in higher home prices and sales being lower than expected. This is good news for those markets that have room to run on the house price appreciation front, but it's also going to increase the affordability pinch in many markets, especially along the country's east and west coasts. Two indicators that are supporting local housing activity are rising consumer confidence and declining unemployment rates."

Local Perspective:

Days on Market (DOM) is a term we all use to evaluate the health of a market. Generally speaking, a healthy market shows about 90 Days on Market. Anything below 90 and it starts to move into that infamous, but undefined “seller’s market.” Currently Longmont/Boulder County is at an all-time low with 52 DOM. To put this into perspective, for the last 7 years locally we have averaged 100 DOM.

If we read into the numbers we find what’s happening nationally is also being experienced locally. This downward pressure on DOM is a direct reflection of our limited housing inventory and the fact that most sellers lack confidence that they will find a suitable replacement home.

Here’s a Snapshot of April 2014’s Market Highlights:

  • YTD Sales Volume DOWN 16.1% vs 2013
  • All-time LOW Days on Market in Longmont - 52!
  • Average Sale Price OVER $300k for 4 of past 5 months!

So what lies ahead locally? For one… this market condition will not remain the same. Home builders are frantically building inventories that should begin to increase inventory levels by late 3rd quarter; interest rates are predicted to remain consistent throughout 2014, yet could increase .5% by year’s end; and finally, based on a recent poll, 70% of sellers planning on selling in 2014 will enter the market by mid-3rd quarter. This all equates to increase competition for sellers and downward or stabilizing pressure on home prices as this perfect storm comes into play.

Bottom Line

The real estate market is improving every day, and it still is your best bet for long-term security. The biggest current challenge is a lack of inventory in many markets, yet with this perfect storm on the horizon, sellers may not have the upper hand as they currently do.

Therefore, if you are thinking about selling, now may be the time to make the move.

Here's why:

 

 

Here is a guide to everything you need to consider when selling your home, including all the reasons the time is now.

Call me today and let’s evaluate your specific situation.

Warmly,

Cory Dudley

The Winning Team Real Estate Group

You’re Real Estate Advisor for Life

Should I Buy a Home Now?

by Cory Dudley

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall down the road, while others are convinced that home prices will go up.

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have fluctuated, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, a one point rise in interest rates could cost tens of thousands of dollars over the life of your mortgage!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates while they are still available.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.

Displaying blog entries 581-586 of 586

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