14 Factors that determine a home’s value

In trying to evaluate your home for a listing price that could actually result in a sale, agents and owners should look at the following factors objectively and without emotion.

A buyer may react emotionally to an aspect of the home which is great but most buyers will then ask their agent to do a comparative market analysis to measure the fairness of the asking price.  If a buyer is getting a loan to purchase the home, the home has to appraise according to strict guidelines.  See here for what an appraiser looks at  https://sf.freddiemac.com/content/_assets/resources/pdf/forms/70.pdf

 

Following are 14 Factors that help determine a home’s value.

  1. Age of home and design style – While newer homes are favored by some buyers due to the lack of maintenance requirements, there are many buyers who love the charm of an older home, especially those of the craftsman and victorian style.
  2. Structural materials and systems.  Even in an older home, one that has had updates to systems such as electrical, plumbing, heating and replacements to roof and siding will be seen as more desirable and garner a higher price.
  3. Quality of Renovations and Added Amenities.  Renovations that are properly permitted are most desirable. Beyond that, the quality and workmanship of renovations will garner a larger listing price.  Added Amenities such as hot tub, water feature, etc will also add value.
  4. Floor plan.  Is the floor plan functional for today’s consumer? Needs and tastes change so this can be a moving target.
  5. Number of bedrooms and bathrooms.  Price should be reflective of these numbers and these days, a private master bath is a sought after feature.
  6. Square footage.  Not always the most important element if the home has a great floor plan and makes use of space well.
  7. Curb appeal.  Very important for first impression.
  8. Lot square footage and design.  Not only is the lot important but also what is done with the space. People want to spend more time outside and a backyard oasis where one can entertain and relax is a sought after commodity.
  9. Storage.  More important for some consumers than others but organized storage is generally a plus.
  10. Garage.  In some places, the number of garage spaces can make a huge difference in selling time and price. In Bozeman, 3 garage stalls are very desirable so that people can store their toys on site.
  11. View.  Views can increase the value of property especially if they are unobstructed and protected.
  12.  Location.  Everything factors in here from walkability to shops, coffee, restaurants, ambient noise, convenience to               freeways, airports, perceived demand for the neighborhood.
  13. Neighborhood.  What does the rest of the neighborhood look like? It is most desirable to have like kind or better properties than the subject home in the neighborhood
  14. Comps and the current real estate market.  What have other homes sold for in the past 90 days? And then what is the  momentum of the current market?

If you are curious how your home would be valued, please reach out and let’s schedule a free property analysis.  Montana is a non disclosure state so only a licensed relator or appraiser has access to real sold data which you need for an accurate valuation.  For up to date information on the Bozeman market, read my blog posts at  https://movemetomontana.com/.

 

Posted on July 12, 2020 at 7:13 pm
Liz Nitz | Category: Living in Montana, Real Estate in Montana | Tagged , , ,

How Coronavirus is affecting the Economy and Bozeman Real Estate

We are right now in a unique situation not seen before. I thought it prudent to research how Coronavirus is affecting the economy and Bozeman real estate market

Our lives have changed drastically in the past week; kids are home from school, trips have been cancelled, gathering places closed. We also have anxiety about what is going on out there; not only do we have anxiety about being ill, or perhaps carrying the virus to someone who may be at risk for serious complications from the virus, but we also have anxiety about the fact that our financial world has been turned upside down.  This perhaps brings back bad memories of the 2008 crash and the recession that followed.

 

So let’s try and address some of these anxieties caused by the Coronavirus outbreak:

First of all, you are doing everything right if you are following the steps recommended by the CDC.  https://www.cdc.gov/coronavirus/2019-ncov/index.html  These steps are in your control and should keep you and your household healthy.  Do them and feel good about it!

At Windermere, we are fortunate enough to be backed up by a strong company with many resources.  Some of our financial and economic experts have reached out to us to explain how they see the economic impact of this and the effect on local housing market.

 

Following is a summary of likely effects of the Coronavirus to the US economy as a whole.

These were communicated by Matthew Gardner, Chief Economist for Windermere.

  • The Economy will contract. With the disruption to life, travel etc., we are all spending less money.
  • The Stock market has lost value as a result of the uncertainty of the situation and how long it will continue.
  • Home inventory on market will probably decrease in the next few months as people will not want others in their homes.
  • Buyers will want to take advantage of low interest rates but buying will probably decrease as well as people are uncertain about economy and some may need to wait for stock market to come back up.
  • Economists believe that towards Q3 and Q4, economy and stock market will pick back up.
  • Mortgage interest rates will stay low however.
  • Housing as a sector is well positioned to come out of this positively.
  • Banking rules that were put into place after 2008 have protected housing and made sure that the upside down equity positions held by people then do not exist anymore.
  • Inventory will be tight as households are being created but not enough housing being built overall in US.

 

An analytical look at Coronavirus and Bozeman real estate:

  • Our area is positioned well to weather this kind of storm. We will see some impacts as noted above but we will also rise out quicker than other areas of the country.
  • Why? Our fundamentals are strong.
  • Bozeman area is noted as #1 in economic strength for micropolitan areas in US. https://www.prnewswire.com/news-releases/policoms-2018-economic-strength-rankings-for-933-communities-announced-300585848.html
  • We have had increased demand and not enough supply of homes for many years. This has meant that our median price of a single family home has gone from $329,000 in March of 2015 to $520,000 in February of 2020 and our months of supply has gone from 4.3 months in March of 2015 to 2.2 in February of 2020.
  • Our unemployment rate is very strong most recently being at 2.4% down even from a year ago when it was 3.%. The highest is has been since 2015 is 3.4%.  The interesting thing here is that US Federal Reserve puts natural unemployment at 2.5-3.5% as people move around, change jobs etc.
  • Bozeman is a unique place to live as we all know and why it attracts so many new residents each year. Our quality of life, access to the outdoor activity, ability to earn a living make it truly distinctive.  This will not change.

 

In the immediate future, what will happen?

  • We will have at least two weeks of social distancing to help prevent the spread of this virus.
  • Diagnosed cases will rise because of increased testing.
  • The strategies that the CDC and government have recommended to prevent spread will work.
  • There will be positive news about a vaccine for the future.
  • Discomfort and anxiety will continue in our lives and in the financial markets until things become certain and we have started to see decreasing cases.
  • There is a massive fiscal stimulus coming that is pointed at people and industries most affected by this.
  • Recovery will happen relatively quick as our US economy fundamentals are strong.

 

I will continue to update my blog MoveMeToMontana.com with more information and analysis as I get it.

A disclaimer – I am not an economist but am culling information from economist’s opinions and presenting factual statistics about Montana.  However, one should read this article about how Coronavirus is affecting the economy and Bozeman real estate market as my opinion.   I have curated the information and summarized it in this piece.

Stay healthy and please do what you can to help local businesses!  Shop online with them, order take out, buy gift cards.  They really need our help right now.

 

 

 

Posted on March 19, 2020 at 12:21 am
Liz Nitz | Category: Living in Montana, Real Estate in Montana | Tagged , , , , ,

Bozeman Real Estate Statistics

Bozeman Real Estate Statistics

 

Presenting Bozeman Real Estate Statistics for the first two months of 2020!  And if anyone thought that we were going to have a slow winter in real estate, they would be incorrect.

 

Let’s start off with Median Sales Prices.

As seen below, we can see that all property type prices are off to fast start  with a roughly 8% increase over last year. To put things in greater perspective, the February numbers of 2018 and 2019 for median sales prices were : 418,000 (2018) 456,375 (2019) for Single Family Home, 253,000 (2018) 289,900(2019) for Condos, 305,000 (2018) 334,950 ((2019) for Townhomes.

 

Days on Market

To fill in our view of the real estate market in Bozeman, let’s take a look at how quickly inventory is moving off of the market or being sold.  We typically measure this by the absorption rate which we call Days on Market.

 

Here we see that Single Family DOM is down 16.7% or has gone from 24 days last year to 20 days that year, reflecting healthy demand that builders are not quite keeping pace with.  There is better news with Condos and Townhomes as those Days on Market have actually increased a bit.

 

How much supply is there?

To finish rounding out our view of Bozeman Real Estate Statistics, let’s look at how many months of supply we have at the moment.  Again here we see a modestly declining inventory of Single Family Homes with increasing inventory of Townhomes and Condos.

 

Coronavirus

One note on the coronavirus.  Currently the coronavirus has not impacted the Bozeman real estate market except to drop home interest rates precipitously so that they are at lowest levels in 50 years!  This certainly will rachet up demand as potential buyers look to take advantage of lower interest rates to afford more house or have a lower mortgage payment.  Keep an eye on my blog as the picture becomes more clear and the medium and longer terms effect come into focus.  For more on interest rates, try this website.  http://www.mortgagenewsdaily.com/

These numbers in this report reflect sold pricing. Remember that Montana is a nondisclosure state so only licensed real estate professionals can access accurate data.  If you would like to dive deeper into market trends or specific price categories, please reach out and let’s have a conversation!

 

I hope you found this helpful – please pass it on and check out my other blog posts at MoveMeToMontana.com.

 

 

Posted on March 10, 2020 at 9:07 pm
Liz Nitz | Category: Real Estate in Montana | Tagged , , ,

First Time Homebuyers – 2020 is YOUR year to purchase your HOME!

First Time Homebuyers – 2020 is YOUR year to purchase your HOME!

Let’s just say that the stars are aligning for first time homebuyers. Market forces are good as we are entering a more balanced market that we have not seen in years.  In addition, there is an abundance of programs to help the first time homebuyer get into that first home in 2020.

Let me explain why:

Low Downpayment Programs

There are VERY generous programs out there to help with qualifying the first time homebuyer for a purchase with a low downpayment.

    1. FHA loan program: A loan insured by the Federal Housing Administration. Good for those with low credit scores and little money saved for a down payment.  https://www.hud.gov/buying/loans
    2. USDA loan program: A loan program 100 percent guaranteed by the U.S. Department of Agriculture for lower-income borrowers in eligible rural areas.  https://www.rd.usda.gov/programs-services/single-family-housing-guaranteed-loan-program
    3. VA loan program: A loan backed by the U.S. Department of Veteran Affairs that allows no down payment for military personnel, veterans and their families.  https://benefits.va.gov/homeloans/
    4. Good Neighbor Next Door buyer aid program: A HUD program that provides housing aid for law enforcement officers, firefighters, emergency medical technicians and teachers.  https://www.hud.gov/program_offices/housing/sfh/reo/goodn/particip
    5. Fannie Mae or Freddie Mac loan program: Conventional loans backed by Fannie Mae or Freddie Mac require 3 percent down. Good for those with strong credit.
    6. HomePath ReadyBuyer Program: A program that provides 3 percent in closing cost assistance to first-time buyers. Must complete an educational course and buy a foreclosed Fannie Mae property.
    7. Energy-efficient mortgage program: Backed by FHA or VA loan programs and allows borrowers to combine the cost of energy-efficient upgrades onto a primary loan upfront.
    8. FHA Section 203(k) loan program: Borrow the funds needed to pay for home improvement projects and roll the costs into one FHA loan with your primary mortgage.

Downpayment Assistance Programs

On top of the low downpayment programs, there are actually programs that will grant the first time homebuyer part of the downpayment!

    1. Montana Neighborhood Lift – Down payment assistance up to $12,500 for service members. https://www.montanalift.org/
    2. Montana Board of Housing deferred or Bond Advantage Program can provide up to $10,000 https://housing.mt.gov/Homeownership/Lenders/Down-Payment-Assistance
    3. HRDC Road to Home offers up to $30,000 .  https://thehrdc.org/how-we-help/housing/down-payment-assistance/
    4. Dream Makers Grants for Veterans – Offers up to $5000 . https://www.penfed.org/learn/mortgage-programs-for-veterans
    5. There are also local and state programs that can help get you into a new home!

Other Positive Factors for First Time Homebuyers

  1. Prices in the SW Montana area are leveling off and slowing their rate of increase. See my blogs for up to date information on real estate trends!  https://movemetomontana.com/montana-blog-real-estate-trends
  2. Inventory is good and days it takes to sell a home has risen.  We are approaching a balanced market where everything is not weighted towards the seller.
  3. Mortgage rates themselves are quite reasonable and are actually down from a year ago.

Free Seminar for First Time Homebuyers

This is a lot of information to digest.  To help, a mortgage broker, Kari Francisco (NMLS #1123666) from First Security Bank and I will be presenting a Seminar with just about everything you need to know to  purchase your home in 2020.  The seminar will take place on February 8 from 10 am – 12 Noon at the Windermere office in Downtown Bozeman – 135 East Main street.  PLEASE RSVP to liz@windermere .com or on my contact form at https://movemetomontana.com/as space is limited.

Pictured home is in Belgrade – check it out on this link. https://www.windermere.com/listing/MT/Belgrade/1308-Fozzie-Lane-C-58714/100542204

Posted on January 15, 2020 at 12:10 am
Liz Nitz | Category: First time home buyer real estate, Real Estate in Montana | Tagged , , , , , , , ,

Belgrade 2019 Real Estate Trends

Belgrade 2019 Real Estate Trends

Belgrade December numbers are in!  Let’s take a look at the Belgrade real estate pricing trends of 2019, compare it to trends of previous years of 2017 and 2018 and  check the crystal ball for 2020.  The following numbers represent all sales in each category for each year and numbers are coming from the Big Sky MLS.

Median Sales Prices

First up are median sales prices.  I have divided these sales into Single family, Townhomes and Condos.  We see a not unexpected increase in median sold prices in all three of these categories BUT we also see a slowing rate of increase which is great news for buyers. This statistic bolsters the thought that the real estate market is becoming more balanced.

 

Median Price Per Square Foot

Second number I checked to confirm the median sales price slow down, was the median price per square foot. And I reached the same conclusion, that prices are indeed slowing their rate of increase.

 

Days On Market

To help round out the picture of the market conditions, I then took a look at days on market.  If days on market is a large number and homes are languishing on the market, then we would have certainly turned the corner to a buyer’s market.  But alas, this is not what I found and in fact, homes in all categories are still moving along at a good pace with a decrease in DOM actually found in the townhome category.

 

Looking Ahead to 2020

So what does this mean for Belgrade real estate pricing in 2020?  All indications currently point to a very similar year in 2020 as in 2019.  Mortgage rates are now very low (under 3.7% for conventional 30 year fixed!) which will make it attractive for people to consider a home purchase.  As seen below, Belgrade remains an attractive alternative to Bozeman and builders are building new homes, especially single family, as fast as they can.

Even with that though, there is still less than 3 months of inventory on the market.

I have attached a great listing that is representative of single family homes in Belgrade.  Thanks to Dina Emmert.  https://www.windermere.com/listing/MT/Belgrade/1547-Powers-59714/103416383

These numbers reflect sold pricing.  Remember that Montana is a non-disclosure state so only licensed realtors can access accurate data.  If you would like to dive deeper into market trends, please reach out and let’s have a conversation! Keep an eye on the blog at https://movemetomontana.com/  for more ongoing analysis. I hope you found this helpful – please pass it on!!

 

Posted on January 10, 2020 at 6:56 pm
Liz Nitz | Category: Real Estate in Montana | Tagged , , ,

Bozeman 2019 Real Estate Pricing Trends

Bozeman 2019 Real Estate Pricing Trends

Bozeman December numbers are in!  Let’s take a look at the Bozeman real estate pricing trends of 2019, compare it to trends of previous years of 2017 and 2018 and  check the crystal ball for 2020.  The following numbers represent all sales in each category for each year and numbers are coming from the Big Sky MLS.

Median Sales Prices

First up are median sales prices – I have divided these sales into Single family, Townhomes and Condos.  We see a not unexpected increase in median sold prices in all three of these categories BUT we also see a slowing rate of increase which is great news for buyers and bolsters the thought that the real estate market is becoming more balanced.

Median Price Per Square Foot

Second number I checked to confirm the median sales price slow down, was the median price per square foot. And I reached the same conclusion, that prices are indeed slowing their rate of increase.

Days On Market

To help round out the picture of the market conditions, I then took a look at days on market.  If days on market is a large number and homes are languishing on the market, then we would have certainly turned the corner to a buyer’s market.  But alas, this is not what I found and in fact, homes in all categories are still moving along at a good pace with a decrease in DOM actually found in the single family home category.

Looking Ahead to 2020

So what does this mean for Bozeman real estate pricing in 2020?  All indications currently point to a very similar year in 2020 as in 2019.  Mortgage rates are now very low (under 3.7% for conventional 30 year fixed!) which will make it attractive for people to consider a home purchase.  Movement to the Bozeman area is expected to continue at similar rates (about 1500 people a year) as in previous years.

 

These numbers reflect sold pricing.  Remember that Montana is a non-disclosure state so only licensed realtors can access accurate data.  If you would like to dive deeper into market trends, please reach out and let’s have a conversation! Keep an eye on the blog at https://movemetomontana.com/  for more ongoing analysis. I hope you found this helpful – please pass it on!!

 

 

 

Posted on January 7, 2020 at 11:00 pm
Liz Nitz | Category: Real Estate in Montana | Tagged , , , , ,

Is it a good idea to own a vacation rental?

 

I suppose the answer to this is complicated and really depends on one’s goals with the vacation rental, how much work one wants to put into the rental process and the cost / benefit analysis of purchase price and rental income.

 

I will use my vacation rental as an example.  We own a vacation rental on the Big Island of Hawaii at the upscale Mauna Lani resort.  We purchased it in 2014 when prices were still somewhat depressed from the great recession.  We put down 30% and have a second home mortgage with rate less than 4% for the rest.  We have large HOA (about 1400 per month)due to the fact that in Hawaii the HOA takes care of all exterior elements including landscaping, exterior paint, roofing, common areas such as fitness center, pool, beach club etc.  But considering we are not on island for 10 months of the year, we are happy to pay someone to manage all of that for us.

We advertise our home on Vrbo and Airbnb.  Those websites have changed a lot over the years and charge the renter more than they used to but people are still using them.  I have seen a huge shift in the past few years away from Vrbo and much more to Airbnb.  A general rule of thumb is that foreigners will use Airbnb as will younger (millennials and younger) Americans but baby boomers and some genX will use Vrbo.    It has been fascinating to watch this evolution.  We also do have quite a few return renters that will just contact me directly after their first year.

 

The big question that one has to answer which will directly affect if you lose money on the vacation rental itself or break even (assuming you have a mortgage), is how involved do you want to be with the management of your rental?  First thing you need to look at is the IRS code – https://www.irs.gov/taxtopics/tc415 and then discuss with your accountant.  You must take the rules of this very seriously.  There are a few more issues to discuss with your accountant as enumerated here: https://www.marketwatch.com/story/own-a-vacation-home-heres-how-the-new-tax-law-affects-you-2018-12-03  How much you can write off on your taxes and the passive activity loss is directly affected by your activity.

 

So what that means is that for the best tax benefit, you need to actively manage your vacation rental – that means taking the bookings, communicating with guests, keeping maintenance log, and doing as much of the work yourself at least to get up to the 750 hours per year.  If you have a booking agency deal with your guests, you are not actively managing your property and while you may have some tax advantage, it is no where near where it would be if you did it yourself.

 

Another large factor is just income vs expenses.   Before purchasing a vacation rental, I would check occupancy rates pretty carefully.  Can the home be rented all year long?   Are there seasonal adjustments in rates and what are the rates?  Does the number of nights rented per year times rate cover your expected expenses? What about the weather?  We picked our location on the Big Island partly because of its very strong rental history and the consistent weather.  It is always in demand as there is no rainy season, no mud season etc.  We are also rarely affected by flight delays as there is no snow coming this way.  As a result, we enjoy high rates of occupancy.

 

But to be in demand as a vacation rental, one has to maintain your home carefully.  Things cannot be broken, everything should be sparkling clean, it should be well equipped.  We regularly upgrade and repair elements in our home so it is pristine.  As someone who manages her own rental, I watch the reviews carefully and strive for perfect reviews every time.  The only way to achieve that is pay attention and make sure you visit your place.  In my opinion, anyone who is self managing needs to visit once a quarter at least.

 

Let’s take money out of the equation though.  What do you get for a vacation rental?  For us, we are happy to meet up with our family members who live apart from us in a place that has years of happy memories.  Even though we enjoy travelling to new places too, there is something special about everyone knowing we are going to favorite place that is stress free – knowing what to expect has a lot to do with the lack of stress.

 

In the end, everyone needs to take a look at the cost benefit analysis and weigh the work against financial impact versus your happiness that you get from enjoying your second home.

Check out this website https://buyvacationrentals.net/ for more vacation rental purchase information!

 

Posted on December 12, 2019 at 2:56 pm
Liz Nitz | Category: Real Estate in Montana | Tagged , , ,

3 Great Brunches in Bozeman – From someone who doesn’t love Brunch

While some people look forward to sleeping in on Sunday and then rolling out to a cushy brunch and imbibing bloody marys, mimosas, and tons of carbs, my family takes a more measured approach to Brunch.  Being self employed, it is hard to ever be completely “off”, but Sunday is a day for us where we usually get in our toughest workout of the week first, then go eat before moving onto the plan for the day or some work.  I know, we are so boring…

So we like the brunch drinks but we also need some decent protein to go along with those yummy carbs.  Following is my family’s list of favorite brunch spots that meets our criteria…

Tanglewood. https://www.tanglewoodmt.com/  We love this place.  It hasn’t really caught on yet as a brunch spot but it will.  We think there is a little something for everyone here – satisfies the traditional brunch person as well as someone looking for something a bit more savory and they even have a healthy option or two. There are fun drinks here if you want to fancy up a mimosa and the bloody mary comes with lots of yummy accoutrements. The atmosphere is inviting and lively but not loud which is lovely.  Our favorite dishes are the Salmon salad ( incredible, always perfectly cooked and a bargain for the price), the Liege waffle, and the duck sausage.

Jam. https://jamonmain.com/  Well Jam is the other end of the spectrum in terms of crowds.  Everyone knows about Jam and that includes people who are just passing through.  So unless you are there before 9 am on Saturday or Sunday, expect a wait.  The good news is that the Jam crew is really good and efficient at what they do so the tables will turn over and you will be seated in the time they tell you.  They provide coffee at the host stand so you can take a cuppa and go stroll Main street while you wait.  Jam only serves the breakfast menu on weekends but there are enough protein oriented and savory dishes to satisfy us.  Our favorite menu items here are the Mia Benedict, the Puerco Verde Crepes, Vegetable omelet and a personal favorite, the gluten free banana pancake.  Also have to give kudos to the daily specials and the bacon!  Fun list of drinks here – my personal favorite being the Pink drink but they also offer kombuchas and a nice selection of Townshends teas.

 

Barley and Vine. http://barleyvinemt.com  Barley and Vine is a cozy brunch spot – more appropriate for small groups than a large one.  Food here is always good and we tend to go here if we are more in the lunch mood than the breakfast mood.  We LOVE their burger, I think the best in Bozeman, complete with a homemade English muffin and served with real frites (skinny , crispy fries).  There are breakfast type items here including fresh made doughnut holes, omelets and a great chicken and waffle dish.  Beverages here include a great wines by the glass offering as well as mimosas and beers.

 

We love to try new places and we are somewhat critical as I was in the restaurant business for 20 years and our daughter is in the restaurant business with hopes of opening her own place here in Bozeman.  Our opinions are our own but we’d love to know what you think!  Reply back with your favorite brunch places and we will check them out.

 

 

 

 

Posted on November 8, 2019 at 10:43 pm
Liz Nitz | Category: Living in Montana, Uncategorized | Tagged , , , , , , ,

Statistics that Matter when Timing your Real Estate Move

I want to start this blog by saying that not everyone has the flexibility to time a move or a real estate transaction.  Sometimes, you just have to move and buy or sell your home; Sometimes you find the house of your dreams without really looking.

But for many people trying to decide whether it is time to move to a bigger home or to downsize into a smaller one, whether it is a good time to move to Bozeman or whether it is time to take advantage of favorable interest rates, some market knowledge is imperative to making an informed decision.

To take a quick temperature of the market, I look at Median home sales price, Days on Market, Inventory and Asking price ratio to Sales Price.  There are lots more numbers out there but I find that watching these particular ones roll from month to month gives a pretty accurate picture of what to expect when listing a home for sale or looking to purchase a home.

Recent statistics about Gallatin County only –

Year to Date though September Single Family Median Sales Prices rose 6.3% over 2018.

(From 414K to 440K)

YTD through September Condo and Townhome Median Sales Price rose 8.5% over 2018

(From 295K to 320K)

YTD Days On Market (DOM) Single Family Home rose 6.9% over 2018 from 58 to 62 Days

YTD DOM Condo and Townhome is 53 days down from 64 days in 2018 or -17.2%

As one might expect, these DOM numbers are very different during the prime selling season of May – August where Single family homes sold in 37 Days and Condo/Townhomes sold in 36.

So one may ask how much negotiating of the prices is going on?  Not much as both Single Family and Condo/Townhome are getting 98.7% of their asking price and Higher!

As we head into winter, Single family home inventory has already decreased by 7.5% but Condo Townhome has increased by 31% due to new developments coming on line in Bozeman and Belgrade.

Typically the next few months see a slow down in sales, median price stabilization but also lower inventory.  After a very rapid fire summer in buying and selling, we are approaching a more balanced market but I would still expect that there is pent up demand because mortgage rates are still below 4% after being above 4% for a long time earlier this year and last year.  We are getting tight on inventory of Single Family homes.

My advice to Buyers and Sellers of Single Family homes would be for Sellers to take advantage of the low choice on the market and for Buyers to take advantage of a slower market and really low interest rates.  I am happy to discuss these statistics with you or dive in a little deeper.

Give me a call or send an email and let’s time your best move!

Posted on November 4, 2019 at 10:59 pm
Liz Nitz | Category: Real Estate in Montana | Tagged , , ,

4 Major Considerations in Buying a Home in Bozeman

 

  1. It has been a seller’s market for quite some time. Bozeman has an average of 5 people moving here per DAY!  So, while home prices are not anything like they are in major coastal cities, they are higher than many expect for close to downtown or view properties.

 

  1. There are fixers and homes that could use some updating available for lower prices. For many people, these are great opportunities to gain equity quickly once the update work is complete.  The real caveat here is that Bozeman has an unemployment rate of less than 3% and there are simply not enough skilled tradespeople to do all the work in this booming economy and housing market.  A great remodel can be done but research, planning and patience are a must and maybe a few extra dollars than expected.

 

  1. Montana is a non-disclosure state. There are only a few of these in the nation, but basically, what that means is that home selling prices are not made public.  So all the Zillow algorithms do not work well here, which may impact the accuracy of the Zestimate.  Real estate agents have very strict rules governing their disclosure of home selling prices and a buyer can only get the accurate selling prices of comparative homes they are shopping for by a licensed real estate agent.  Believe it or not, this has less to do with the real estate lobby than it does with the Montana sense of privacy and avoidance of governmental interference.

 

  1. Moving to Bozeman Montana is a great decision. I do not know anybody who has moved here and after a bit of adjustment, including if it had to do with the surprise of remodel cost or difficulty in finding a home, who hasn’t been happy with their decision.

 

These are the realities of reaching for your dream of moving to a place that has a vibrant community, downtown, culture, and outdoor scene.  Good news is that this can be navigated with a knowledgeable real estate agent.

 

As a local and invested real estate professional, I can help you find potential neighborhoods, advise you on pricing but also help you with referrals if you choose the build/remodel road.  I am also thrilled to share my family’s experience in moving here, networking, meeting people and loving Bozeman and Montana.

 

 

Posted on October 30, 2019 at 3:53 pm
Liz Nitz | Category: Real Estate in Montana | Tagged , , ,