Owning a House Matters



“Owning a House Matters”
An article on the financial well-being of becoming a homeowner
This is a visual representation of the Median Net Worth of homeowner’s versus their non-homeowner counterparts and is also a great example of how ones equity and wealth can drastically improve during the process of becoming a homeowner.

This shows over a 30-to-1 net-worth advantage in favor of homeowners. Anticipating the sharp readers who will argue that this could be demographics (e.g., older people, more educated people, families, or high-income people are more likely to own houses), I looked further. Households headed by folks under age 35 have a median net worth that’s about double the $5,100 median net worth of non-homeowners. Households headed by folks with no high school diploma have saved more than triple what the non-homeowner has. So have single folks with no children. And, yes, even families in the bottom 20% of income have more net worth than the non-homeowner.

Pretty darn stunning.

We can speculate on why this is. I subscribe to the simple, classic argument in favor of homeownership. Each month, homeowners are automatically squirreling away the principal portion of their mortgage payment — as opposed to the renter, whose whole rent is an expense. People sometimes forget that the alternative to a mortgage is paying rent (not investing in the stock market) when they argue that home prices barely keep up with inflation.

As for the hidden costs of homeownership, I think a greater percentage of us than we’d like to admit end up blowing the money anyway — on fancier vacations, or extra glasses of wine on nights out, or living in a more upscale house or neighborhood, or shoes, or playoff tickets, or whatever it is that keeps our median net worth at just $77,300.

Don’t misunderstand me. This isn’t a call to arms for everyone to jump willy-nilly into one of the biggest, most complicated financial decisions of their lives. The harrowing stories from the housing bubble showed us what happens when we buy when we don’t have enough income or savings, overpay, or don’t do our due diligence. There are also non-financial reasons that buying a house just doesn’t make sense for some people.

And nothing I’ve written should be interpreted as a justification to buy that expensive rug instead of putting a little extra into your 401(k).

This is just a reminder that there are many theories on the other side, but the real-world numbers greatly favor buying versus renting when all else is anywhere close to equal.

What Is My House Worth? Let’s Crunch Numbers



Let us help you out.

So you’ve decided to sell, or maybe just considering selling your Colorado Springs house. Do you have an inherited property that is a vacant house or a rental property? Is it free and clear or is there a mortgage still attached? At Colorado Home Trust, LLC we have seen them all.

You want to know how much you can sell your property for or are asking yourself, “how much is my house worth?” It depends!

If you would like to sell now or sell fast, that generally means you want to cut through the red tape and just sell quickly for cash. Maybe you are the executor or personal representative for an estate and are looking at your options, maybe you are an estate attorney looking for an expedient solution to liquidate an estate property to pay for necessary legal and administrative expenses. For a fast sale, ideally you will be able to sacrifice a bit of equity for the speed and convenience of the sale of the home, but if you want to sell quickly and still get top dollar there are additional strategies that we can discuss that will give your more net dollars, but require additional time and effort on your part.

But first, let’s discuss a cash offer for your home.

When you are considering a quick sale or want to sell your Colorado home fast, you must realize that you will probably be asking a professional home buyer to evaluate your property in order to make a cash offer on your home. The “We Buy Houses” or “We Buy Ugly Houses” crowd will probably be your first choice. Most of these professionals are experienced home buyers and are very familiar with evaluating a house with an eye to purchasing correctly for cash in order to rehabilitate or “rehab” the property and bringing the property back to market as a renovated property.

They are part of a network of real estate professionals which include investors, private lenders, as well as reputable contractors who will eventually help them renovate the property to retail standards. If your property needs extensive repairs because of it’s current condition, the cash buyer will have to take precautions to allow enough room in the “deal” to make a modest profit.

As a rule of thumb, even the most experienced investors will have to account for 10% resale costs, 10% funding costs, as well 20-30% for all repairs needed for getting the property “Ready for Prime Time” or introduction to the retail market place again.

Considering all the variables, it’s easy to understand why a cash offer must include these risks and costs from the beginning. Once the numbers have been crunched, a typical investor can close very quickly, often on a date of your choice. They can do this because of their relationship with a group of professional local private lenders who specialize in originating secured real estate backed loans to investors.

On the other hand, you may want to contact a Realtor to find out how much your home is worth.

Realtors are in the business of representing or listing your property for a fee. Many are quite experienced at evaluating your home from the perspective of a listing agent. They do this by researching the Multiple Listing Service (MLS) in order to evaluate comparable sales to your property. Generally speaking they do not invest anything other than their experience and time in order to sell your home. Many of their clients are first time home buyers who may or may not be qualified to purchase the house even after placing an offer. The most experienced Realtors have been around long enough to have their clients qualified before shopping, but still are NOT the buyer for your property. They must wait for the RIGHT client at the RIGHT time with the RIGHT credentials to purchase your property.

This could take a while. 

Colorado Home Trust can quickly evaluate your property and purchase your property for cash usually on a date of your choice. After a quick inspection and market analysis, we will know how much your home is worth to a professional home buyer.  Consider the value of receiving a guaranteed cash offer for your property and close on a date of your choice. It doesn’t get any easier than that!

What is My House Worth? Let’s Crunch Numbers (719) 203-9500

Make Your For Sale Sign Fly Away



The improving Colorado Springs-area housing market showed no signs of slowing last month, as home sales soared and prices jumped to their highest levels in six years and people are selling their homes fast.

Local single-family home sales totaled 1,104 in June, a 30.5 percent increase over the same month last year and the highest number of home sales for any June since 2007, according to a report by the Pikes Peak Association of Realtors.

For the first half of 2013, single-family home sales totaled 5,336, a 25.1 percent increase over the same period last year, the association’s report said. It was the market’s best first-half performance in terms of sales since 2006.

Of homes that sold last month, the median – or mid-point – of all sale prices was $225,000, a 6.5 percent year-over-year increase and the highest median price for any month since $227,000 in July 2007.

Rent to Own Buyer Checklist (Part 2)



 

Stay Focused and Have Fun!

Don’t get me wrong, it can be simpler than you had imagined. Remember, everyone involved – Seller, Mortgage Broker, Credit Counselor, as well as your Rent to Own specialist are ALL pulling for you. When it all works it can really be fun to watch your finances improve and your credit score skyrocket!

When you give Rent to Own a chance to change your life, remember only YOU can make the changes necessary to create a positive impact on your circumstances. A Rent to Own Home could easily be the best decision you’ve ever made.

For starters, you will have a home, you will have equity and you will have a growing investment. You will be happier. But remember, there is no “get of jail free card” in real life and that luck is a combination of hard work and opportunity.

With proper diligence and care you can be well on your way to a very favorable housing investment. So get busy and know that we’re here to help at every point you need!

Stayed tuned on how to protect your new investment in future posts.

Rent to Own Buyer Checklist (Part 1)



Colorado Springs Lease Option / Rent to Own 719-203-9500
Colorado Springs Lease Option / Rent to Own 719-203-9500

 

 

 

 

 

 

 

 

 

 

 

Contemplating making the plunge to a Rent to Own Home ?

Don’t be afraid to GET WET !

If you have decided that landlords, lost wages, and neighbors just 6 inches away has got you bugged, we don’t blame you! Rent to Own has it’s benefits,

but Rent to Own is NOT a get out of jail free card.

With a few basic but not so obvious tips, you should soon be having a great time at the beach without getting sand in your swimsuit.

In a series of articles, Colorado Home Trust would like to explore the insider secrets of the Rent to Own/Lease Option Colorado Springs landscape so you can feel at home with your decision and have the tools to absolutely dominate the process.

Let’s talk about buyers expectations.

GET ORGANIZED !

All Rent to Own programs are essentially short term owner financing.

By that I mean, that the Tenant buyer is given the opportunity to lease the property they intend to buy while possessing an exclusive option to purchase the property at a pre-arranged price.

In the typical situation, the tenant buyer needs to work on some credit issues that are keeping them from obtaining their financing today. Is this you ?

Buying a great home is NOT LUCK, it’s proper preparation.

You may realize by now that there is NO “Get Out of Jail Free” card when it comes to managing your finances in preparation for buying a home. Everyone has had bad luck at one time or another, but the serious buyer knows that’s no excuse.

Get with the program! Let your rent to own specialist know that you are willing to jump through hoops for the opportunity of buying a new home.

It is imperative that you treat the process of repairing your credit as seriously as death! Without a successful program to follow, many buyers simply are not able to purchase within a reasonable time, because they neglected to do what it takes.

Listen to your counselor and make the changes they recommend. You will benefit.

Read more at (Part 2) !

Find Your Colorado Springs Rent-to-Own Home With Us!



Find your Southern Colorado Rent to Own Home Today with us!

| 719-203-9500 | We Buy Houses | Lease Option Colorado Springs

Metro Brokers Real Estate Broker Associate Lori Jones is citing information posted on the Pikes Peak Association of Realtors website.  The association is reporting that homes sales in the Colorado Springs area increased 34-percent as compared to 2012.  Jones says there appears to be several factors fueling the real estate recovery.  “A big thing motivating buyers is that interest rates remain at historically low levels at four-percent and lower.  We also see a number of buyers reentering the market after losing their homes to foreclosure or short sale during the recession.  Many of those folks have waited the two or three year period required to qualify for a mortgage following foreclosure or short sale.  Another dynamic causing homes values to increase is that many sellers seem to be holding onto their homes, possibly hoping that prices will increase even more.”

Meanwhile, Jones says the housing recovery seems to be happening across the state and nation.  “The National Association of Realtors (NAR) reports that Pending Home Sales in a recent month were up seven-percent from the year before.  Pending Home Sales is a leading indicator for the housing sector based on pending sales of existing homes.  Also, all 20 major cities in the recently released S&P Case Shiller Home Price Index are reporting gains in overall home prices.  Cities including Las Vegas, Phoenix and San Francisco have had year-over-year gains of 20-percent and higher.  Those cities are bouncing back faster than others, but they were also among the hardest hit during the housing crisis.  The Case Shiller report shows home prices in March were nearly eleven-percent higher than the year previous and at the highest level in more than six years.”