3-2-1, Buy a House in Colorado!

3-2-1, Buy a House in Colorado!

  • Victoria Merchant
  • 07/13/23

Friday, I flew back from Florida and took a shuttle service to the airport driven by a man from New Jersey and, oh, the stories. It was incredibly eventful to hear this man discuss the very personal details of his life with me. And, honestly, it’s one of the takeaways from the vacation. 

The rest of the family came home on Tuesday, and I got them from the airport. When I left, friends from Colorado stayed with Tag and the boys. They had a great time at beaches and go-karts. We all enjoyed this little summer vacay a lot.  Although, I did get a pretty significant sunburn that is still wrecking some havoc (another great takeaway). 

We talked about this in another post, but I’m on the events committee for my office, and we’re creating a client appreciation scavenger hunt. My colleague, Jessica, and I went to Idaho Springs and Georgetown on Sunday to talk to the businesses about it, and I’m happy to report that they’re very receptive! 

The deal is this: you build up points by going into stores and making purchases or going to restaurants, museums, and other attractions. The more points you get, the better. And there will be prizes! 

If you go to Mother’s Bar in Georgetown, you can maximize your points, too. More details about all of it to come! But, in the meantime, mark your calendars for September 30th and October 1st. We’ll send reminders to our clients so they can sign up, but anyone can do it; you just need a KW agent (use my name if you invite friends and family to play) to return the card to. 

It’s really cool because I used to live in Georgetown; I had a little women’s clothing and shoe boutique (and coffee shop). So, I went into my old building, and it still looked the same minus a couple minor changes. It was crazy to see. And I ran into kids I used to see in the ‘hood, and now they’re like full-grown adults. What? I met up with a good buddy, and we had a great time hanging out. It was just a wonderful day that ended with dinner in Dillon—loved it. 

We FINALLY got to play our softball game! It was a blast! Our team is full of people who haven’t played for a decade or have never played before at all. So, that’s how our season is gonna go. But I’m here for it. 

16 days away from our trip to Sweden and Greece! In my son's words, “LET’S GO, BRO!”

My Colorado Real Estate Activity

Because inflation numbers came back better and the stock market is improving, I think mortgage interest rates will come down, meaning they’ve peaked and will start to normalize and stabilize. My suggestion: if you’re interested in buying, you can be one of VERY few buyers to take action now before it gets nuts again. 

Here’s how: There’s a 3-2-1 buydown tool where you negotiate in your contract that the seller pre-pays the interest for three years; they pay 3% the first year, 2% the next, and 1% the last year. 

On a $550k mortgage, the seller would be paying $25,000 in interest. If you’ve found a house that’s been on the market for a bit, the seller may be interested in paying out this concession. So, if you lock in at 6.99%, you’ll only be paying 3.99% for the first year, and you can do the math for the rest.

By the fourth year, you’ll be paying the interest rate in full, but the point is you’ll have the time to refinance when the rates come down. 

If buyers start seeing the interest rates trickling down, though, we’ll see a bunch of buyers again. And the lack of supply in the market means house prices will go back up. 

The 3-2-1 option is great to jump on now! Reach out if you have some questions about this; happy to help you understand. 

Current Denver Area Real Estate Market

The market rebounded after the Independence Day Weekend slump, but not to June levels. We are entering into our slower part of the annual real estate cycle where buyers have more power to negotiate.

  • Our average daily active count fell by -2.4% with 5,391 total listings for sale, 1,203 of which were new listings. New listings increased week over week by 47.1% and compared to one year ago new listings are down -25.6% keeping inventory choices tight in 2023. Pending transactions increased from last week by…

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