Interest Rates Getting You Down?
Thinking about moving? Need to upgrade to a bigger more functional space?
It’s a tough market!
The Federal Funds rate is currently sitting between 5.25% to 5.5%. This means that banks are selling the public mortgages with rates upwards of 8%! In Denver, the average price of a new home is $610,000 according to Realtor.com. Anyone who’s been shopping for a home in Denver lately knows they can’t buy a shack for $610K, but lets go with it… Given the median price of a home in Denver, and current rates, this stands to put your average monthly payments around $4,400 or more.
Linda P. Jones, of the Be Wealthy & Smart podcast recently discussed 6 Reasons to Remodel Rather than Move. Here she gives us valid points to consider about the costs and implications of selling your existing home and buying a new one. If we assume that $610,000 is the median Denver home price, you need to factor that its going to cost you $61,000 (10%) in fees; between real estate agents, preparing your home for listing, closing costs. Furthermore, consider the time off you’ll need to take with your busy lives and hectic schedules to handle moving logistics, possibly new furnishings, etc. Stressful right?
With this baseline hit off the cost of selling a home, it may be worthwhile to consider putting this towards a remodel or an addition to make your existing home exactly what you want and need. Not only do you already probably have equity into your home, but you may love your neighborhood, and in real estate, its all about location! You may already be in a Denver zip code that will be difficult to buy into equivocally.
Renovating can force new equity as you are in control of the upgrades that are going to give most the bang for your buck.
Before you decide to list your home; Give BONSAI a look and discuss remodel or renovation options. We offer a no commitment consultation virtual meet with our Architects at no cost. Our Concept services are a perfect way to discover the possibilities and implications of a potential project.
