WHAT'S HAPPENING IN THE DENVER REAL ESTATE MARKET

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Hi guys, it's your realtor Milena Joy. And I just wanted to give you a quick update on the state of the real estate market here in Denver, Colorado.

We are seeing a lot of price reductions. We're heading into the fall, and that's pretty typical. The market does tend to slow, however, part of those price reductions can be simply due to sellers overshooting it. We've been in a constant seller’s market and so mentally some sellers are saying, let's see how high we can sell our house for. But that’s always a bad strategy and it ultimately leads to price reductions.

The other thing that we're seeing is that there's an increase in inventory.

An increase in inventory is not really typical in fall, but that increase in inventory could be partly due to sellers overshooting and pricing high, so they're staying on the market longer. We also have a lot of new development in Denver. If you look up in the sky at any time, you're going to see tons of cranes and new buildings and projects going up at a really rapid rate. That also helps push that inventory level.

The other thing we've seen is an increase in interest rates.

The federal reserve has promised to increase the federal reserve rate in December, and then at least another two times in 2019, which ultimately leads to higher interest rates. So what this means for buyers and sellers is that sellers are going to want to really pay attention, making sure they've done all the research, talked to a Realtor® that knows how to market your home correctly, price it correctly, and get your home in front of as many buyers as possible.

The other thing to note is that now is actually the best time to list.

Because what we're going to see with interest rates increasing, if you're in that under a million price point, fewer buyers are going to be able to afford [your home], especially the first-time home buyers, it's really going to affect their buying power.

We still have a really healthy real estate market. It's still a sellers market.

But we're going to see appreciation go from nine and 10 percent to more, five to seven percent. Keep in mind all of that is dictated by the neighborhood you're in, your particular property. There are still properties that are going just like that, as long as they're priced right and marketed well.

If you have any further detailed questions let me know. You can always download the reports on my website at milenajoy.com just click on market reports.

I'm happy to answer your questions anytime, give me a call, follow me on Facebook and Instagram and let me know how I can help.

Thank you for listening, I'm your Realtor Milena Joy, I know changing where you live can change how you live.

Home Renovation: Should You Love It or List It?

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They say that home is where the heart is, but there can come a time when a home stops giving us those butterflies we once had, and we admittedly find ourselves scrolling through Pinterest and Houzz, fantasizing about other homes.

So, do you work to rekindle the love for your home and remodel it? Or do you just give it the it's not you, it's me and List it?

Giving your home a second chance at love might seem like the easiest option, mainly because you already live there. However, these surface-level changes may not fix the real underlying issues and could leave you feeling like you wasted your best years in a loveless home.

Ask yourself these three questions and your answers will guide your heart to either love it or list it.

#1. Do You Love Where You Live?

The location of your home can have serious implications on your overall quality of life and happiness. Your location determines your neighborhood, who your neighbors are, the length of your commute to work, and your kid's school district. Your location can give convenient access to restaurants and shopping, grocery stores, your gym or yoga studio, your kid's school, parks, trails, and keep you connected to family and friends nearby.

There is no renovation in the world that can change the location of your home, so if any of these are a pain point for you, the best choice would be to list it.

However, if you love where you live and these are things that are keeping you there, then improving your home might make more sense.

#2. Do You Have What It Takes to Renovate?

There are an endless number of HGTV shows proving that adding a pop of color to a wall, re-tiling a bathroom, knocking out a wall, or totally gutting your kitchen can completely transform your home. But before diving into a renovation or remodel, enlist a contractor to walk through the home and your ideas to make sure that they're feasible.

Your home's zoning code, existing wiring and plumbing may limit your options or give you additional costs to consider. Make sure you have a detailed plan and budget to do the full extent of the work.

A renovation or a remodel can bring new life to an old home, just be sure you that your home's a good candidate and you've got the budget and mindset to come out on the other side, madly in love again.

#3. Have You Changed?

Even though it may have been love at first sight, the person that you were when you first laid eyes on your home is likely a much different person with different needs than the one you are today. Maybe you were living the single life and now you've settled down with a family, so you need more bedrooms and a yard. Maybe you've been in the same home for decades and you're just itching for a change of scenery and less maintenance. Or maybe at the time you were new to Denver and now you've found your tribe and want to be closer to them.

Basically, if you've experience any major life change, like a new baby, marriage, divorce, a new job, retirement, you've definitely changed. Your home is at the center point of everything that you do. If it's not allowing you live your best life, then it's time to move on and list your home.

Thank you for listening. I'm your realtor, Milena Joy. If you've fallen out of love with with your home, please give me a call. I know changing where you live, can change how you live.

How to Manage Your Home Equity

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Did you know that by the time the average American reaches 65 years of age, 83% of their personal wealth will come from their home equity?

Wait, what? Yep, you heard me right.

83% of your personal wealth will come from your home equity.

That means managing the equity that you have in your home and looking for ways to maximize that equity will be imperative to increasing your overall net worth and ensuring you have the money you need for retirement.

So how do you maximize your equity?

Well there are a lot of different ways and that's why so many homeowners get overwhelmed and do nothing. That's why I'm gonna give you a simple, yet powerful tool called Homebot. It'll take out the confusion and empower you to manage the largest asset you may ever own.

It will show you exactly what you can do, when you should do it and potentially how much wealth you can build. Homebot tracks your current and historical estimated market value of your home so you can see how it changes month by month. You can see a breakdown of the principal and interest that you've paid so far and your potential savings or loss by refinancing to a 15 or 30 year loan.

Now, I think a really cool part of the Homebot tool is that it will let you see how much interest you could save by paying an extra $100 a month on your mortgage. You can choose any amount and run different scenarios. It's pretty eye-opening once you see how much you can save.

Thinking about buying an investment property or moving up to a bigger home?

The tool will show you exactly how much home you can afford. You can even run income scenarios for renting your home or a room in your home on a service like Airbnb. From there it calculates how much you can save by putting that money towards your mortgage payment. You can also see the cash-out potential for doing things like consolidating high interest debt or increasing your home value through home improvements like a kitchen remodel.

As your Realtor, this tool is my gift to you as I know that your home should not only make time with friends and family more enjoyable, but it should also give you the financial security you need to help you live your best life now and through retirement.

To get started with Homebot just click the link below.

You'll be asked to fill out quick form with your address and you'll receive an email digest with a link to start managing your real estate wealth. There's no login or app to download and it's completely free. I know you're really going to love this tool. In the meantime, feel free to message me with your real estate questions or to buy or sell your next home. Until next time, I'm your Realtor Milena Joy. I know changing where you live, can change how you live.

Home Improvement: What NOT to DIY

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With the rise of social media sharing sites like Pinterest and YouTube, the internet is filled with how-to videos showing DIY life hacks for just about anything. In just a few minutes, you can learn how to knit a scarf, build a bed, build a rocket ship, train your act, turn your hoodie into a popcorn bowl. So when it comes to making home improvements on your home, no doubt, your first thought might be to Google it and DIY the project.

In fact, that's exactly what I did after clogging my disposal with potato peelings. I Googled "clogged potato skins in disposal", and found a YouTube video to fix it myself along with a list of things that you should never put in your disposal, including potato peelings.

Even though, at one point, I removed the wrong section of pipe and had wet potato skins blasting me in the face, there was definitely a lot of pride and satisfaction in doing the job myself. I was lucky to walk away with a disposal that worked like new while saving a little bit of money too. But as you know, that's not always the case when it comes to do-it-yourself projects. Sometimes they end up costing you even more money when they don't turn out and you have to hire a professional to do the job anyway. And if you end up damaging your home more or causing yourself any injuries, the costs can add up really fast.

With this in mind, here are five home improvement projects you should never DIY.

Number one, removing trees.

Believe it or not, trees are heavy, they fall, and they crush things. Gravity is always on their side. You, on the other hand, are working against gravity, high up off the ground in unstable conditions with dangerous tools that could leave you cutting off one of your own limbs in the event of a fall. The cost of having a professional remove a tree depends on the size of the tree. But in general, the bigger the tree, the bigger the cost. But that also means the bigger the risk and all the more reason to leave it to a professional.

Number two, electrical work.

Now in Colorado, as with many states, electricians are required to have a license. This fact alone should be enough to keep you from attempting to do the work yourself, but if it's not, consider that home electrical fires account for an estimated 51,000 fires each year, nearly 500 deaths, and $1.3 billion in property damage.

Leave your electrical work to a licensed professional to make sure it's done not only to code, but done to ensure the long-term safety of you and your home.

Number three, plumbing.

Now I know I just told you that I fixed my disposal to save myself a few dollars, but I was lucky and the situation was pretty low risk. Tackling a clogged toilet or even fixing a leaky faucet might be worth the DIY road, but anytime you're installing new pipes, sinks, tubs, you have issues with your water heater or septic tank, or you're dealing with new construction where permits might be required, you definitely want to engage a licensed plumber.

Number four, roof repairs.

Now this falls under the just because you can doesn't mean you should category. There's a reason that roofers continue to make the top 10 list of most deadliest jobs in America, and it's not from hammering their fingers or forgetting the sunscreen. Approximately 47 deaths per 100,000 workers occur each year. Chances are, you don't have the right safety equipment to be walking around on your roof anyway. And even if you do, a seemingly repaired roof can hide water leaks and energy loss, which can only compound the problems you initially had and cost you a lot more money in the long run.

Number five, window installation.

New windows can be expensive, but they typically yield at least a 70% or more return on investment. Not only do they update the look of your home, but they can help you conserve energy and maintain temperature in your home too. That is, when they're installed correctly. Installing a window isn't as simple as fitting a square peg in a square box. It requires a lot of special equipment and skill to ensure they're installed properly so no air or water gets through.

Making the decision to improve your home is wise and can ultimately yield a higher return when it comes time to sell your home. If you don't have the right tools or skills, or if there's any chance you could end up in the ER or destroy your house, you might want to leave the DIY projects to the Pinterest and YouTube experts and hire a professional.

Wondering what home improvements yield the biggest return on investment?

Click the link below to download my free guide.

As always, I enjoy hearing from you. Call or text with your real estate questions or to buy or sell your next home. Thank you for listening. I'm your Realtor, Milena Joy. I know changing where you live can change how you live.

Denver Metro Real Estate Market Cooling

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Now unless you've been living under a rock, inside a cave near the center of the earth, you know that the real estate market here in Denver, Colorado is hot, hot, hot! But what you may not know is that most recent home sale reports show a slight cooling off with the average single family home price decreasing by 2.75% from last month to just under $484,000.

This cooling has caused all sorts of chatter especially among those skeptics concerned about a looming real estate bubble.

If we go back and look at 2016 during the same time period from July to August, you will notice a very similar trend. The average home price went from just under $458,000 to $446,000 for a 2.65% decrease. And what's even more noteworthy is that even with the decrease in average home price, prices are still up 8% over last year.

That's still an impressive growth rate.

So it's important to acknowledge that this cooling off that everyone's so hyped about is more likely driven by a very typical seasonal trend. So don't be fooled or mislead by the rumors of a cooling market. I like to think of it as the temperature going from 110 to 105 degrees. That my friends means it's ♪ Hot in, so hot in here ♪ -

So what does this mean for buyers and sellers going into the fall?

For buyers, fall has always been and will remain a great time of the year to get a good deal on a home. Although inventory is lower in the fall compared to spring, which means you have fewer homes to choose from, there are also fewer people competing for those homes.

So if you're one of those people who are getting outbid and burned out on your search this spring, you may just want to relaunch your search this fall. Or if you're hoping to be in a new home by next spring, it would be smart to start your search now as the money you could potentially save on both interest rate and price could far outweigh any early lease termination fees.

So what does this mean for sellers?

It means you should have sold your home months ago like I told you to. No, I'm just kidding. If you're a seller that needs to sell and buy, it's a pretty ideal position to be in because while your home may not sell at the absolute peak of the market, we're still in a high plateau with growth rates between eight and 10% over the last few years. So you'll still be able to get top dollar for your property.

Your home may stay on the market a bit longer, maybe a couple weeks compared to just a few days like we've seen recently, but you'll be grateful to have a bit more time to find the perfect home at a more favorable price.

Bottom line as we head into fall, the real estate market is following trend with a slight cooling. Take advantage of it and call me to make your next move. Thank you for listening. I'm your realtor Milena Joy. I know changing where you live, can change how you live.

6 Things You Must Know before buying new construction

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Buying a new construction home versus a resale home can be quite appealing. It's never been lived in so you don't have to worry about those mysterious stains on the carpet or when that old furnace might stop working. And while there are certainly a lot of benefits to buying new construction, the sales process can be quite different from your typical resale transaction. So here are the six things that you must know before buying a new construction home.

Number one, builders use an escalating pricing model.

Unlike a resale home where the seller will lower the price the longer it sits on the market, a new construction home may actually go up in price. Typically, builders will offer the lowest price and best incentives to those who commit early and sign a contract during the early months of construction or even pre-construction. Then as more units are sold and the project comes closer to completion, they will increase prices on their remaining units to meet the demand. Now this of course is assuming that it's a healthy market and a desirable project.

By planning ahead and starting your search for your new construction home early, even as much as a year or more, you can ensure you will get the lowest price and best incentives.

Number two, a builder's contract is written by the builder to protect the builder.

When it comes times to submit an offer on your new home, rather than signing the standard Colorado approved contracts, which are written to protect the buyer, you'll likely be signing a builder's contract. Now each builder's contract will vary, but you'll find that many of them do not contain an inspection contingency, an appraisal contingency or even a favorable loan contingency. Now without these contingencies in place, getting out of a builder's contract without penalty, which usually means losing your earnest money, can prove to be a bit more difficult. In addition, dates and deadlines including the date of completion are written with very lenient terms because material shortages, bad weather and permits can all cause delays for the builder.

Therefore, you'll not only want to be confident in your decision to go under contract on your new construction home, but also be flexible with your move-in date.

Number three, every thing is negotiable including the sales price.

Just because you're signing a builder's contract, doesn't mean you can't negotiate specific terms of the contract. This is where having a knowledgeable Buyer's Agent on your side to help you, can be a huge advantage. I know this first hand because I started my real estate career working for a new home builder. When buyers were working with a real estate agent, it usually made the entire transaction go more smoothly so the builder and I were more willing to negotiate the terms.

And as your buyers agent, I have the real estate market knowledge to help justify and negotiate a lower price and additional incentives.

Number four, your property taxes may increase after the first year.

In Colorado, property taxes are assessed every two years, so there's a big chance that your new construction home was assessed prior to your home being built. Now depending on the condition of the property prior to construction and when you closed on your home, you may find that your first year or two of taxes are actually quite low. However, when your property taxes are re-assessed, you may see an increase in your property taxes because the value of your property has gone up since the last assessment.

This is simply something that you are going to want to take into consideration when evaluating the cost of home ownership for your new construction home.

Number five, time is of the essence for selecting finishes.

One of the most attractive reasons to buy new construction is the opportunity to select some of the finishes like flooring, tile, lighting and even paint colors to help personalize your home. The builder will likely have deadlines for selecting these finishes, but it's not unheard of for those deadlines to fall within the first couple months of construction. And as the builder gets closer to completion, some options may not be available or already selected by the builder.

You'll want to clarify with the builder which finishes and appliances will be included in your new home and be sure to get in early to make those selections.

Number six, custom changes aren't always possible.

Now while it never hurts to ask and everything is negotiable, many builders will be reluctant to agree to custom changes and this is for good reason. Each change request opens the door to additional risk and opportunity for error. If for any reason you don't close on the home, the builder is stuck with your custom change that may not be appealing to the next buyer. Additionally, with so many hands on the project, a simple request for a custom paint color could ultimately result in the wrong paint color or even the wrong home being painted, which in turn can cause additional project delays and cost to the builder.

Keep in mind that once you've closed on your home, you'll have more liberty to make those changes yourself. However, if you find yourself wanting a lot of changes, especially structural ones, you may want to consider working with a custom builder instead.

So there you have the six things that you must know before buying a new construction home. Now it wasn't my intention to convince you that buying a new construction home is any better or worse than a resale home, but simply to make you aware of the impact of those differences so you can feel more prepared and confident in moving forward in the search for your next home. Thank you for listening. I'm your realtor, Milena Joy. I know changing where you live can change how you live. So give me a call and live your best life in your next home.