The Strategic Way to Lower Your Home’s Price

Need to lower the price of your home? Here’s how to do it.

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If you’ve decided to lower the price of your home, by how much do you reduce it? The answer depends.

If you’re in a non-luxury price range, a drop of about $5,000 is a good place to start. This is significant enough to attract buyers’ attention. Anything less than that won’t make much of a difference. Remember, though, to make sure the price drop lands the new price between the major $25,000 price points ($525,000, $550,000, $575,000, etc.). 
It’s better to be preemptive and make a price reduction now so buyers see the value and don’t come in even lower.
If you’re in a luxury price range (upwards of $1 million and $2 million), your price drop should be  $25,000, $50,000, $75,000, or even $100,000. This may seem like a lot, but the alternative—sitting on the market for even longer, waiting for a buyer who will probably make a lowball offer—is worse. It’s better to be preemptive and make a price reduction now so buyers see the value and don’t come in even lower.

As always, if you have questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to speak with you.

Investment Options: Flipping vs. Long-Term Ownership

Investment property owners: Is it better to flip a house or to own a rental home long-term? Today I’ll discuss.

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If you’re in the market for an investment home, you might have come to a point where you’re struggling to decide whether to flip a home and sell it or to just hold the home and rent it out to tenants.

One of the most important things to consider when deciding between these two options is the return, or cash flow, you could get.

In the Denver market, for example, a good fix-and-flip property could get you between $20,000 and $100,000.

If you rented out a good single-family home you own for $2,500 a month, but your mortgage on the property is only $1,500, you’re cash-flowing $1,000 a month for life. Rents will go up and down over time, but the overall trend will be upward. You also might have repairs to contend with, so keep that in mind. 
Consider the profit margin for both options and how much work you’re prepared to do to make money from the property.
So would you rather make a quick $20,000 to $100,000, or the $12,000 a year for life? Flipping properties is an intensive project upfront that yields a quick return, and you’ll have to go out and find more properties if you want to continue making money that way.

Ultimately, consider the profit margin for both options and how much work you’re prepared to do to make money from the property. Whichever way you decide to go, I’d love to help you figure out the best fit and how to finance your next investment. Give me a call or send an email, and I’d be happy to start that conversation with you. In the meantime, have a great day!

2020 Market Predictions: How Rough Will the Waters Be?

In 2020, will you be holding onto your boat for dear life or will the waters calm? Here’s what we predict.

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The new year is almost here, which means it’s time to announce our predictions for the 2020 real estate market. Today we’ll be equating our market conditions to the danger rating of whitewater rapids. To get a sense of the scale, a 5 is when the water is extremely treacherous and a 0 is when the water is stagnant.

For nearly the last decade, our real estate waters have been close to a 5. We were constantly adjusting, constantly paddling, and constantly in fear of what would happen next. Things were crazy ⁠— I even sold a house for $100,000 over market price at one point! 
We’re no longer in dangerous rapids where buyers and sellers are living in chaos.
Now, however, our waters are more like a 2 or a 3. Costs have come down quite a bit, which means there aren’t as many multiple-offer situations going around anymore. With less dangerous waters, buyers and sellers have more time to think about their strategies and adjust accordingly. Offers are sitting around asking price or slightly below, and appraised values are very reasonable. 

This is how a normal market typically is, and it’s exactly what we’re heading toward. We’re still going down the river and seeing home values appreciate, but we’re no longer in dangerous rapids where buyers and sellers are living in chaos.

Essentially, 2020 looks like a year of stabilization for the market. If you have any questions or would like more information about the market, feel free to reach out to us. We look forward to hearing from you soon.

A Few Ways to Get to Know New Neighbors

What’s the best way to get to know your neighbor? We’ve got a list of a few tips for you to try.

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Getting to know new neighbors isn’t always easy, and a lot of the advice out there doesn’t exactly make it any more simple. Thankfully, there are a few tips we at the Anderson Group like to recommend for new homeowners to try. We know that everyone likes to socialize differently, so we’ve split our list of tips into two categories: practical and non-traditional.

Without further adieu, here’s a quick countdown of our favorite practical tips:

1. Ask for a simple favor. Approaching your new neighbor to ask if you could borrow some hedge clippers, for example, is a great excuse to spark up a conversation.

2. Say hi when you’re out walking your dog. If you happen to catch your neighbor out in their front yard while you’re walking your dog, or (if you don’t have a pet) when you’re just out for a jog, don’t be shy. If you wear a smile, the world will smile back.

3. Get digital. These days, there are a lot of online social platforms available for people to get to know the people in your neighborhood. Finding and joining one where you live is a great way to connect.

4. Throw a block party. Whether you stick to the traditional definition of this kind of event and invite everyone on the block or you just ask a few people on your street to come over and mingle, getting to know everyone in a group setting can take some of the pressure off as you all make your introductions.  
If you wear a smile, the world will smile back.
Now, let’s move on to the remaining seven tips on our list. Each of these, while not traditional (and, in some cases, not advisable) are sure to catch your neighbor’s attention:

5. Throw a rager. If a block party is a little tame for your tastes, why not go a little more extreme? Make sure you’re loud enough for the cops to join the fun.

6. Set off fireworks. What better way to catch the attention of your neighbors than with a literal fireworks display?

7. Start a fire in your back yard. Stacking up logs and pine needles and then setting the whole thing ablaze will surely get your new neighbors to take notice of you.

8. Mow your lawn late at night or early in the morning. Your early-bird neighbors will appreciate the wake-up call, and your night-owl neighbors will be happy to hear that you’re someone they can depend on to keep the neighborhood looking sharp.

9. Let your dog “do its business” on your neighbor’s lawn. Like taking your dog for a walk, letting your dog out to “do its thing” in your neighbor’s yard is a surefire way to start a conversation.

10. Park in their parking spot. There’s no better conversation-starter than one that comes as a necessity. If your neighbor parks in the same place every day, why not mix things up and claim their spot for your own? When they ask you to move it, you’ll have the perfect opening to introduce yourself.

11. Hook up your hose to their hydrant when you water your lawn. After all, if neighbors can borrow a cup of sugar, why not basic utilities, too?

As you probably guessed, these last seven tips were just a bit of tongue-in-cheek humor. While these “non-traditional” tips will definitely make an impression, they probably won’t create the kind of impression you want to leave. We know we don’t have to tell you twice, but please stick to the first four tips on today’s list—that is, unless your idea of a party is an angry mob on your lawn.

If you have any other questions or would like to learn more about our (real) advice on how to get to know your neighbors, feel free to give us a call or send us an email. We look forward to hearing from you soon.

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