Should You Rent Out or Sell Your House?

 
 

Figuring out what to do with your house when you’re ready to move can be a big decision.

Should you sell it and use the money for your next adventure, or keep it as a rental to build long-term wealth?

It’s a question many homeowners face, and the answer isn’t always straightforward. Whether you’re curious about the potential income from renting or worried about the responsibilities of being a landlord, there’s a lot to consider.

Let’s walk through some key questions to ask to help you make the best decision for your situation.

Is Your House a Good Fit for Renting?

Even if you’re interested in becoming a landlord, your current house might not be ideal for renting. Maybe you’re moving far away, so keeping up with the ongoing maintenance would be a hassle, the neighborhood isn’t great for rentals, or the house needs significant repairs before you could rent it out.

If any of this sounds like it might apply, selling might be your best option.

Are You Ready for the Realities of Being a Landlord?

Managing a rental property isn’t just about collecting rent checks. It’s a time-consuming and sometimes challenging job.

For example, you may get calls from tenants at all hours of the day with maintenance requests. Or you may find a tenant causes damage you have to repair before the next lease starts. You may even have to deal with people falling behind on payments or breaking their lease early. Investopedia highlights:

“It isn’t difficult to find horror stories of landlords troubled with more headaches than profits. Before deciding to rent, consider talking to other landlords and doing a detailed cost analysis. You might find that selling your home is a better financial decision and less stressful.”

Do You Have a Good Understanding of What It’ll Cost?

If you’re thinking about renting out your home primarily to generate extra income, remember that there are additional costs you’ll want to plan for. As an article from Bankrate explains:

  • Mortgage and Property Taxes: You still need to pay these expenses, even if the rent doesn’t cover all of it.

  • Insurance: Landlord insurance costs about 25% more than regular home insurance, and it’s necessary to cover damages and injuries.

  • Maintenance and Repairs: Plan to spend at least 1% of the home’s value annually, more if the home is older.

  • Finding a Tenant: This involves advertising costs and potentially paying for background checks.

  • Vacancies: If the property sits empty between tenants, you’ll lose rental income.

  • Management and HOA Fees: A property manager can ease the burden, but typically charges about 10% of the rent. HOA fees are an additional cost too, if applicable.

Bottom Line

To sum it all up, selling or renting out your home is a personal decision that depends on your circumstances. Whatever you decide, taking the time to evaluate your options will help you make the best choice for your future.

Make sure to weigh the pros and cons carefully and consult with professionals so you feel supported and informed as you make your decision. A real estate agent can be a great person to go to for advice.

Read more at KeepingCurrentMatters.com

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4 Housing Market Myths Hurting Today’s Buyers and Sellers

 
 

The housing market has been decidedly stuck of late.

Sellers with low mortgage rates are holding on to their homes, leaving buyers with scant listings to choose from.

And buyers who do find a house face substantial economic challenges as median home prices and mortgage rates remain high.

With sellers and buyers at an impasse, misconceptions and outright myths are popping up on both sides about the state of the market on social channels and forums.

However, some of the supposed housing issues that are coming up time and again aren’t true. Here are the four biggest myths about the current housing market and why experts say they’re wrong.

1. The housing market is about to crash, just like in 2008

Today’s buy-sell stalemate has some would-be buyers almost hoping that we are in a bubble—that it will burst and lead to plentiful homes available at fire-sale prices.

No one can blame a buyer dealing with the double whammy of higher home prices and interest rates for hoping for a lucky break. But the reality is that the 2008 housing market collapse tripped a recession that caused record job losses. And job loss doesn’t further anyone’s financial dreams.

Even if we are in a bubble right now—and most experts say it’s hard to call it until it’s in the rearview mirror—conditions are not at all like they were in 2008.

Unlike today, there was a glut of new homes being built then, sellers were trying to attract buyers, and homebuyers could qualify for a mortgage with little to no money down.

“That access to credit included a surge in lenders offering loans to buyers with lower credit scores, or subprime borrowers,” says Chris Ragland, principal at Ragland Capital.

Easy credit might sound good in theory, but some loans were adjustable-rate mortgages with a low “introductory teaser” rate. And once the introductory rate ended and the loan adjusted to a higher rate, some buyers could no longer afford their monthly payments.

“Subprime borrowers in particular who suffered a job loss had little to no accumulated equity in their homes,” says Ragland. So when the economic downturn came, they were immediately underwater on their loans and many defaulted.

None of these conditions is true now. Today, almost half of all homeowners have more than 50% equity.

“Laws were passed in 2010 to strengthen verification of a borrower’s ability to repay a loan,” says Ragland.

And the drivers of today’s home prices are entirely different.

“The 2020 to 2022 price increase was driven by an inventory shortage and unusually low interest rates,” says Bruce Ailion, attorney in Atlanta.

2. Owners have such good rates, they will never sell

One of the biggest complaints about today’s housing market is that there just aren’t enough homes for sale. And given the unbeatable interest rates available two years ago, when many bought or refinanced, what would make sellers budge?

“Mortgage rates were forced lower than they should have been, lower than they likely ever will be again,” says Ailion. So when you look at it from the seller’s point of view, it doesn’t make sense to give up a low long-term rate.

But in reality, there are always life events that force homeowners to sell.

People get new jobs and have to relocate. Growing families need more room or want to be in a particular school district. Retirees downsize or move to a better climate. Seniors move to be closer to family or go into assisted living. And their home will go up for sale.

3. As rates rise, home prices will drop

Many would-be homebuyers have hoped that higher interest rates would bring down home prices. But the relationship between interest rates and home prices is complex.

“Interestingly, the increase in interest rates has not resulted in a decline in prices in most markets,” says Ailion.

In fact, home prices have been all over the place this year and vary from city to city. Home prices are still being driven by inventory. And in the most popular locations, an updated home that’s move-in ready might still get multiple offers.

“Some buyers are dating the rate and marrying the house,” Ailion explains. “Today’s high interest rates can be refinanced in the future. And today’s housing prices will likely be higher when those lower interest rates return.”

4. Good-credit buyers are subsidizing buyers with bad credit

This myth blew up over a misunderstanding about government-backed Fannie Mae and Freddie Mac loans and a new fee structure.

Fannie and Freddie are government-sponsored enterprises (GSEs) on a mission to make mortgages more accessible to first-time homebuyers with lower incomes but good credit. They don’t issue loans directly but work with lenders to lower their risk by guaranteeing certain loans should the borrower default.

The organizations also purchase other lenders’ loans on the secondary market and sell them to investors as mortgage-backed securities. This allows lenders to keep lending to new borrowers.

Fannie and Freddie are essential organizations in the mortgage industry. About 70% of all mortgages are GSE-backed. So they can set requirements and establish fees.

The new fee structure eliminated upfront fees for first-time homebuyers. At the same time, it increased fees for other loans that are outside the organizations’ stated mission and borrowers who don’t need a leg up: namely, second-home loans, high-balance loans, and cash-out refinances.

It really had nothing to do with a borrower’s credit score.

“It’s a myth,” says Ailion. “Buyers with poor credit always pay a higher interest rate than buyers with good credit.”

Read more at Realtor.com

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Home Prices Fell in July for the First Time—This Is Good News for Buyers as the ‘Market Is Healing’

 
 

Median home prices fell in July, marking the first-ever seasonal decline in a month that’s typically a peak time for home sales.

The national median list price dipped from $445,000 in June to $439,950 in July, according to a new monthly housing report by Realtor.com®.

This downturn can be attributed to a sluggish summer housing market, with buyers and sellers looking for more economic breaks before making a move.

“As mortgage rates fell in July to their lowest since March on expectations that the Federal Reserve will cut rates as early as September, we suppose some homebuyers may be holding out for lower rates over the next few months,” says Realtor.com senior economist Ralph McLaughlin in his analysis.

With many buyers watching mortgage rates from the sidelines, home sales are now moving at the slowest rate since 2020.

This hesitancy among buyers likely also contributed to prices being slashed on 18.9% of listings in July, up from 15.5% a year ago.

“Sellers are becoming more grounded with patience and price expectations,” McLaughlin adds.

Indeed, the share of listings with price cuts is the highest since 2022.

This all adds up to good news for buyers who have been waiting for home prices to come back down to earth.

Increase in homes for sale

While many homebuyers sat out July, those who did venture into the housing market fray had more listings to choose from than the same time last year.

The total number of homes for sale in July was 36.6% higher than the year prior, marking the ninth consecutive month of growth.

It “now sits at a post-pandemic high,” says McLaughlin. “It’s a welcome sign that the housing market is normalizing, and it tells us the market is healing.”

All four regions of the U.S. saw an increase in active home listings, with the South leading the way at 47.6%, followed by the West at 35.4%, the Midwest at 22.7%, and the Northeast at 14.7%.

Metros that saw the largest increases in the number of homes for sale included Tampa, FL, at 94.9%; Orlando, FL, at 78.7%; and San Diego at 77.7%.

Much like home prices, the jump in inventory is likely the result of one main factor: mortgage rates.

“The decrease in mortgage rates seen in July likely contributed to an increased pace of growth in listing activity,” says McLaughlin.

Where the fresh listings are

Newly listed homes surged 3.6% above last year’s levels, reflecting a notable increase in seller activity.

Buyers looking for the most fresh housing choices should head West, where there are 7.3% more newly listed homes than in July 2023. New listings also grew by 3% in the Northeast and 0.9% in the Midwest.

Only the South saw fresh listings fall, with 0.5% fewer new listings this July than last.

The metros that saw the largest increase in fresh listings compared with last year included Seattle, at 37.3%; San Jose, CA, at 30.8%; and Columbus, OH, at 17.4%.

The home price paradox

Despite the overall decline in the national median list price, it remained stable compared with the same time last year, when it was $440,000.

“However, when a change in the mix of inventory toward smaller homes is accounted for, the typical home listed this year has increased in asking price compared with last year,” says McLaughlin.

This somewhat confusing data is due to the fact that the median price per square foot continues to rise, increasing 3.1% in July compared with the same time last year.

The price per square foot in the 50 largest metros shot up between 24.1% and 81.9% compared with July 2019.

However, the rise in price per square foot has a silver lining for budget-minded buyers.

“This indicates that the inventory of smaller and more affordable homes has grown in share,” McLaughlin explains.

In July, as in the previous five months, the growth in homes priced in the $200,000 to $350,000 range outpaced all other price categories, as the number of homes for sale in this range grew by 47.3% year over year.

Homes are still lingering on the market

The typical home spent 50 days on the market in July, five more days than the same time last year and five more days than last month.

“July marks the fourth month in a row where homes spent more time on the market compared with the previous year as inventory continues to grow and home sales remain sluggish,” says McLaughlin.

However, this trend might change soon.

“We expect selling activity to continue to normalize as rates inch their way down over the next year, with potentially an unusual uptick in September if the Fed decides to cut rates,” McLaughlin predicts.

Read more at Realtor.com

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Free Things to Do in Denver (and Beyond) This Week

 
 

Happy birthday, Colorado!

This state turns 148 today, and Celebrate Colorado runs through August 4, with hundreds of free and discounted activities (find Celebrate Colorado details here). Meanwhile, Denver Days continues through August 3, with plenty of neighborhood festivities on the calendar. And there's a big First Friday coming up!

For more entertainment options, check our roster of events worth the price of admission and our concert calendar. For events running into September, see our Summer Guide. Now keep reading for free things to do in Denver this weekend:

Free things to do in Denver...ongoing

Most museums charge admission, but there are exceptions on SCFD free days. (The next free night at the Denver Museum of Nature & Science, for example, is August 21.)

In the meantime, Civic Center Park is a great place to visit for free, with Civic Center EATS on Wednesdays and Thursdays (although the McNichols Building won't have exhibits again until fall). And the Denver Public Library wrote the book on useful free services and other amenities.

In Boulder, you can visit "Ascent: A Boulder Soundwalk" in Scott Carpenter Park and check out the free public art installation by Ars Nova Singers that celebrates nature, music and Boulder with the Echoes app.

If you're stuck between planes, or waiting for someone who's stuck in summer travel glitches, head to DEN’s Park on the Plaza at Denver International Airport. The 82,000-square-foot open-air plaza, located pre-security between Jeppesen Terminal and the Westin Hotel, will offer free entertainment options now through September 30, including a Sunday concert series.
Free things to do in Denver (and beyond) this week

Governor's Residence Tours
Thursday, August 1, 11 a.m. to 2 p.m.
400 East Eighth Avenue
On Colorado Day, you can tour the Governor's Residence at Boettcher Mansion! Get the detailshere.

Adams County Fair

Thursday, August 1, through Sunday, August 4
Riverdale Regional Park, 9755 Henderson, Brighton
This year's Adams County Fair has a special attraction: the Mustang Summit. Learn about wild horses and meet representatives from the Wild Animal Refuge and Wild Horse Refuge, including founder Pat Craig; get details on the Mustang Summithere. And yes, you'll find all the other usual county fair attractions. Admission to the fair is free, with add-ons for concerts and other events; find more infohere.

Lincoln County Free Fair and Rodeo
Thursday, August 1; and Saturday, August 3, through Saturday, August 10
Lincoln County Fairgrounds, 33747 County Road 2W, Hugo
Yee-haw! “Country On” is the theme of this year's Lincoln County Fair, which runs for ten days at the start of August. Activities range from a parade to 4H displays to county fair contests to mutton bustin'. And don't miss the traditional Ranch Rodeo on August 6! Admission to everything is free; find complete details here.

Breckenridge Art Festival
Thursday, August 1, through Saturday, August 3, 10 a.m. to 5 p.m.
Main Street Station, 535 South Park Avenue, Breckenridge
The 23rd annual art festival will feature over 100 artists, as well as live acoustic music. Admission is free; learn more here.

This Ordinary Stardust: A Scientist's Path From Grief to Wonder

Thursday, August 1, 7 p.m.
Boulder Book Store, 1107 Pearl Street, Boulder
Dr. Alan Townsend's memoir is an exploration of scientific wonder that offers “a fresh perspective on life, death and the bittersweet consequences of impermanence,” according to Jon Krakauer, illuminated through the tragic dual cancer diagnoses of the author's wife and daughter. Registration to the program is $5, but nets you a $5 discount on a book purchase that day. Learn more here.

Silverthorne First Friday Block Party
Friday, August 2, 4:30 to 8:30 p.m.
Fourth Street Crossing and the Outlets at Silverthorne, Silverthorne
Heading for the hills to beat the heat? Silverthorne will host a two-location block party on First Friday, with local bands on five stages, forty artist booths and free activities at the Family Fun Zone. Get the details here.

Visible Planets: World-Renowned Rappers and Their Visual Art
Friday, August 2, 6 to 9 p.m.
Bitfactory Gallery, 851 Santa Fe Drive
After a big inaugural year, Visible Planets returns with an art show opening on First Friday and a free outdoor jam session Sunday with creatives who carry messages of social justice, peace, respect, self-worth and community. The show includes artwork by Georgia Anne Muldrow, Del the Funky Homosapien, Quelle Chris, Deca, Fresh Daily, Oddisee, Lily Fangz, Kristina Johnson and Mick Burson and Natalie del Villar (Homeboy Sandman’s sister). Admission is free; learn more here.

Celebrate Colorado's 148th Birthday With History Colorado
Saturday, August 3
Around Colorado
While Colorado's birthday is August 1, History Colorado will be celebrating on August 3, when more than fifteen attractions across the state combine to create a free celebration. Visitors can go to the Center for Colorado Women’s History in Denver, El Pueblo History Museum, Healy House Museum & Dexter Cabin in Leadville, Fort Garland Museum and Cultural Center, Trinidad History Museum, or the Ute Indian Museum in Montrose and explore Colorado's history for free. At the History Colorado Center, festivities will include a performance by the Colorado Inter-Tribal Dancers and the Colorado Youth Mariachi Program, as well as a traditional Chinese Lion Dance from Shaolin Hung Mei Kung Fu,face painting and sidewalk chalk stations, gold panning with the Georgetown Loop Railroad, a Colorado Proud produce booth and green chile roaster, a Max Fund pet adoption event, artifact tables displaying objects from History Colorado’s collection, and information and activity booths from partnering organizations such as Pop Culture Classroom and Tesoro Cultural Center. The museum's exhibits will also be open for free. Learn more here.

Horseshoe Summer Market
Saturday, August 3, 10 a.m. to 4 p.m.
Breckenridge Brewery!, 2920 Brewery Lane, Littleton
The Horseshoe will be on the Breckenridge Brewery campus with over 65 local makers and vendors. Family-friendly activities include tarot readings, face painting and live music starting at noon. There will be plenty of food and drink, and admission is free. Learn more here.

Air N Space-A-Palooza
Saturday, August 3, 10 a.m. to 2 p.m.
Wings Over the Rockies, Exploration of Flight, 13005 Wings Way, Englewood
Arapahoe/Douglas Works!, Colorado Space Business Roundtable, City of Centennial and the South Metro Denver Chamber host this family-friendly aerospace and aviation fair, an immersive day of discovery with interactive exhibits, speakers and a chance to try a flight simulator. There will be food trucks on site, and you can also catch the Breakfast Fly In hosted by Wings over the Rockies. Admission is free, but you must register here.

Visionary Village
Saturday, August 3, 11 a.m. to 5 p.m.
Denver Central Market, 2669 Larimer Street
Join Made By Us at Denver Central Market for Visionary Village, a  curated lineup of creative community vendors. Admission is free; learn more here.

Castle Marne Grand Reopening
Saturday, August 3, 2 to 6 p.m.
1572 Race Street
Castle Marne, a landmark 1889 mansion built by renowned architect Wiliam Lang, is reopening as an exclusive Airbnb experience under new owners Nate Jones and Jessica Abegg. It's hosting a grand-reopening event on August 3, complete with tours of the mansions and grounds. Admission is free, but RSVPs are required here.

Tiana Longmire and DJ Malc G

Saturday, August 3, 5 to 7 p.m.
Skyline Beer Garden, 1601 Arapahoe Street
The Downtown Denver Partnership opened Skyline Beer Garden for the summer to activate the city center, and has added some extra attractions to the pop-up with free movies and concerts. Take in R&B from Tiana Longmire and DJ Malc G on Saturday, August 3, or dance along to hits courtesy of DJ M’n'M on Saturday, August 17. The ethereal pop of Grace DeVine will be highlighted on Saturday, August 31, along with DJ DesiredAdmired, while it'll be a hip-hop party on Saturday, September 28, with Ason Yugen and ReSrface. Admission is free; find out more here.

Shakedown Street
Saturday, August 3, 7 p.m.
Levitt Pavilion, 1380 West Florida Avenue
For over thirty years, Shakedown Street has been performing the immense catalogue of the Grateful Dead. The ever-shifting repertoire draws from homegrown idioms steeped in traditional Americana, folk, blues, jazz, and rock and roll, with a healthy dose of the avant-garde. Admission is free; learn more here.

Arts & Community Fair
Sunday, August 4, 2 to 6 p.m.
Mestizo-Curtis Park, 32nd and Arapahoe streets
PlatteForum is hosting this free, family-friendly Arts & Community Fair celebrating the diverse work of Denver's nonprofit community. There will be more than twenty artist vendors, live performances by El Sistema Colorado, games, food and demonstrations by community partners, including Community Strategies for Change and Art Garage. Admission is free; learn more here.

Concerts on the Fly
Sunday, August 4,  2 to 6 p.m.
Park on the Plaza, Denver International Airport
Denver International Airport summer concert series runs Sundays through September 1; the lineup on August 4 is Ambrosia, The Petty Nicks Experience (Tom Petty/Stevie Nicks tribute band) and DJ Lil Joe. Admission is free, but tickets are limited. RSVP here.

City Park Jazz: Jakarta
Sunday, August 4, 6 p.m.
City Park Pavilion
Head to City Park on Sunday for a Denver tradition: City Park Jazz. Admission is free; get info here.

Jurassic Park
Sunday, August 4, 6 p.m.
Skyline Park, 1601 Arapahoe Street
The fun continues at Skyline Park with a screening of Jurassic Park. Admission is free; learn more here.

Plan ahead:

Colorado Parks and Wildlife Free Day
Monday, August 5
Across Colorado
To celebrate Colorado Day, there's no entry fee at any Colorado state park on August 5. Although Colorado Day is technically August 1, the CPW always celebrates the occasion with free admission on the first Monday of August. Learn more here.

High Plains Chautauqua: Game Changers
Monday, August 5, through Friday, August 9
Aims Community College Welcome Center, Greeley
The annual High Plains Chautauqua will focus on Game Changers: individuals who had an enduring impact on society. Evening events start at 5:15 p.m. with live music on the patio, along with an on-site food truck, followed by performances from a Young Chautauquan from Greeley-Evans District 6 and portrayals of two historical characters ranging from Eleanor Roosevelt to Albert Einstein, Rachel Carson, Louis Armstrong and many more. Admission to all events is free; get a complete schedule here.

Washington Park 125th Anniversary Jubilee
Wednesday, August 7, 10 a.m. to 8 p.m.
Washington Park
Denver was a dusty cowtown in 1899 when City Landscape Architect Reinhard Schuetze drew up the plans for Washington Park. Today, 125 years later, this urban forest is filled with greenery and activities, including a big free birthday bash with everything from yoga to a concert capping off the day. Learn more here.

48 Hours Summit: Stories_UnderScored
Friday, August 16, 8:30 a.m. to 9 p.m., and Saturday, August 17, 9 a.m. to 10 p.m.
RedLine Contemporary Art Center: 2350 Arapahoe Street
RedLine's 48-hour Summit returns with programming that includes ten-minute talks, hands-on workshops, performances, socially engaged art projects, a block party, the opening reception for The Other Side of the Tracks exhibition and more. It's all free; find the schedule here.

Global Fest
Saturday, August 17, 11 a.m. to 6 p.m.
Aurora Municipal Center Great Lawn, 15151 East Alameda Parkway, Aurora
Aurora bills itself as “The World in a City,” and it lives up to that billing at Global Fest, the city’s signature event showcasing international cultures. Now in its eleventh year, the family-friendly fest will include two stages of musical and dance performances, a variety of local food trucks, an international marketplace, the Parade of Nations, a fashion show, art displays, creative activities for children, and much more. Admission is free; learn more here.

Read more at Westword.com

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As Featured in West + Main Home Magazine: Historical Home Renovation

 

Adam + Jessica Johnson

When we first moved to Oklahoma, we were on the hunt to find a historical home in a desirable neighborhood to renovate.
— Adam + Jessica Johnson

West + Main agent Jessica Snook's client Adam grew up in a 110 year old craftsman bungalow in a historical district of Orange County, California.

"When we first set eyes on this 1,700 square foot airplane bungalow beauty with classic California architecture, we knew this was the project we were dreaming of," said Jessica. "A true passion project for us, something we could transform back to life, all while preserving the integrity of the home. Our main goal was to bring back the original charm and character of the home which included some personal touches of what we know best, that warm, airy ambiance of California Coastal interior design."

With this particular project, Jessica + Adam went into it with the intention of transforming the old, outdated craftsman house into a charming home they could be proud of and they really feel like we accomplished their goal.

"Some major transformations that really elevated the home were resurfacing the floors, custom paint in the library, wall moulding and wallpaper in the dining room," explained Jessica. "Our favorite part of the house was how we were able to maximize the square footage in the kitchen, especially with adding pocket doors. We were able to create an open and functional space with modern amenities, including room for a walk-in pantry. We have had multiple conversations about how much we loved the way this project turned out and even considered moving in ourselves!"

 

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