Newsletter June 2023

"Strength does not come from winning.  Your struggles develop your strengths.  When you go through hardships and decide not to surrender, that is strength."

Arnold Schwarzeegger

WELCOME June + Rain!

5 DAYS LEFT TO APPEAL YOUR TAX ASSESSMENT!

Are you leaving $$ on the table? 

Let's jump right in!  You've probably received a pretty little piece of mail from the assessors office, letting you ponder the idea that your monthly payment may be increasing to account for, in some cases, significantly higher property taxes.  So, what do you do?  

To begin with, you need to determine whether the assessment is accurate or not.  In some cases, there really isn't a case to appeal.  But, in others, it's worth submitting an appeal.  You have until JUNE 8 to appeal and this can be done online.  There's no charge and it's a fairly simple process.  

If you are considering or haven't yet, filed the appeal, shoot me a quick email/text and I'll walk you through the process.  Include the following: 
Address
Sq Ft. 
Significant Updates
Beds/Baths
Any additional/relevant information about your house

Market Update

If you've heard anybody express 100% confidence in knowing where the market is heading, please forward their information to me!  The reality is; we are dealing with uncertainties and some things simply don't seem to make sense.  While we continue to see higher interest rates, we are seeing housing prices increase.  In the month-over-month statistic that was just released for May 2023, median close prices increased by 2.59%!  Houses also have a median 'days on MLS' of only 6 days, a 14.29% decrease.  

In the two charts above (squint your eyes), we're seeing (left) a deep decline in how long a house sits with a For Sale sign on it.  Looking at the chart on the right, we see the pricing dip from 2022, but now a fairly strong recovery as things are starting to look forward.  Skipping back to tax assessment season, unfortunately, the top of the chart (right) is where your tax assessments are determined.  

Simple Prediction: If we are seeing a recovery underway, which appears clear from these past few months, then it's likely to only gain steam as interest rates take a chill pill in the coming months.  

Now, let me throw a small wrench in this; the Jobs Report.  Yesterday, the Bureau of Labor Statistics released their monthly jobs report.  While estimates predicted the number to be around 195,000, the actual number of new jobs created in May tipped the scales at about 339,000!  A pretty major miss on that expectation.  

Why does this matter?  Well, it's a significant factor when the Fed considers whether to pause interest rates or not.  While we have seen inflation consistently decreasing, other factors (like the jobs report) are wreaking havoc in bringing about a clear picture of an interest rate pivot.  With 3 major bank failures (First Republic, SVB, and Signature) it would appear we aren't far from lower rates, but it may take a little longer than we all had hoped.

Questions from the Audience

Buying?
  
-How do I put together an attractive offer and get under contract? 

Besides the obvious answer of 'Cash is King,' which only a small percentage of people can actually do, let's start by looking at factors that a seller would want to see.  

First off, if you're looking to put an offer on a new home you should determine whether you can get approved for the amount you're offering and get a pre-approved letter.   This reduces risk to the seller that the deal will fall through if you seek funding after your offer. 

Secondly, determine a reasonable offer.  If you're bidding against other buyers, you may feel the need to throw out a significantly higher offer, but keep in mind, your lending is determined by your appraisal, NOT your purchase price.  An offer well above the appraised value, means you're more risky to the seller unless you are also offering appraisal gap coverage (which is out-of-pocket to you). 

Third, depending on the asking price and your personal circumstances, consider budgeting for an appraisal gap.  While I would suggest being modest with this (hoping you don't have to use it), it does make your offer more attractive if a seller sees that you are able to cover the gap if needed. 

Lastly, avoid the traffic!  To state the obvious, the quicker you move on offering for a home you want, the better your chance of getting under contract are.  Remember: Weekends are deal killers!  While it may be somewhat taxing on your schedule to go after work in the middle of the week, you will avoid all the weekend warriors putting multiple offers on a house if it's reasonably priced. 

Of course there are other factors, but these are 4 components if you're purchasing a new home that will help; 1. Get pre-approved, 2. Offer a reasonable price, 3. Consider an appraisal gap, and 4. Be ready to move quickly in order to beat the crowd when the right place becomes available.

Win 2 Free Rockies Tickets! 

As a Thank You for any referrals to my monthly newsletter, you will be entered into a monthly drawing for 2 Free Rockies Tickets. You may email or text your referral names and be entered into the monthly drawing.  This is set to take place on June 30.  For anybody referred, please confirm this with them before sending their names/email addresses.  Each individual referral is another entry. 

I hope you all have a blessed, amazing, and drier June.  Look for my next newsletter the first week in July! 

Travis Carey

Broker Assoc.
M: (607) 435-5113
Travis.Carey@Compass.com

Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.