2025 Key Points for Real Estate Success–Part 1
As I think about the stories in the Link 2024 newsletters, I realize that we have distinct groups of home buyers and sellers that will face change and transition in 2025. The first group that we work with is first-time home buyers, and the second group is folks retiring soon or making a real estate transition. I call these clients Soon to Transition (STT) as we dislike labels such as “Boomers.” Ha ha! This month we are focusing on these groups.
Key 2025 Points for Success for First Time Home Buyers!
For first-time home buyers, we don’t see the return of 2-3 percent interest rates for mortgages in 2025. As prices in the Denver Metro area have not fallen significantly and inventory is still limited, we offer a few suggestions for successfully buying your first home.
-The Power of an Attitude Adjustment. Please realize that your first home may not be the home that meets 100% of your long-term requirements. But your first home is a giant leap from renting to home ownership. Look at the home’s location carefully and buy a home with “good bones.” Sweat equity pays off big time! Learn about foreclosures and short sales. Attend a real estate auction. Talk to me about long term potential revenue gains, and learn how to use your home as leverage for another purchase.
-Spend Frugally with No New Debt. Mortgage lenders rely on the ratio of your total monthly debt to your total monthly income. The smaller the debt percentage, the more desirable you are to mortgage lenders. Current thinking is that the price of a home should not exceed 40% of your gross income.
-Guard Your Credit Score. When you have excellent credit, mortgage lenders will find you the right “mortgage product.” Over the years, I have had several clients step back and work on increasing their credit scores. While it took them some time, the result was a new home! We can suggest lenders that can help you with a plan for improving your credit score.
-Find the Right Real Estate Team. Buying your first home involves realtors, mortgage lenders, insurance brokers, and ethical and competent home improvement vendors. Link is delighted to be a part of your team.
Key 2025 Points for Success for STT Families
With 76 million STTs in the United States, the group has interesting challenges.
-Outliving Resources. For one, you could outlive your resources, so you need financial advisors on your team. Financial advisors wisely guide your investments to ensure you have enough accumulated resources for the rest of your life. There are programs that can help you reduce your monthly mortgage outlays, such as reverse mortgages. Adhering to your monthly budget is the key to outliving your resources. Plan now and for the future!;
-Think Outside the Box for Financial Stability. Is this the time to consider adding an Accessory Dwelling Unit (ADU) that collects rental income to offset the costs of living a longer life? Or consider embracing a multi-generational living situation. We recently closed on a home that three generations of the family will enjoy. And why not add a side hustle, as many of the younger generation do, for added income?
-Fear of Change. STT clients may love their current home, yard, neighborhood, church, corner restaurant, and memories, but they realize that transitioning to an unfamiliar environment or lifestyle may be inevitable. We cannot stress enough the importance of taking the time to investigate potential new directions and new opportunities for a different/modern home. Finding a new realtor who knows the area is key. I am proud to be part of the National Women’s Council of Realtors (WCR), and I can help you find a new realtor in your area of interest. Or if the move you choose is local, I’m happy to help you with your lifestyle change or home. Let me help you reduce your fear of change.
-Living in Place. Many STT clients wish to remain in their homes, which involves you and your family. There are several safety and redesign needs, such as installing safety features and other conveniences. I’m happy to help you find the resources you need to stay in your home. Or check out the Senior’s Council of Douglas County, who offer meetings, town councils, and other services to help citizens remain in their homes. Contact them at citizenconnect@douglas.co.us. Senior Resources are available in local communities for transportation, friendships, learning opportunities, and social excursions. In Castle Rock, the Senior Center offers inexpensive dues ($40 per year) in return for valuable services. Check them out at castlerockseniorcenter.org. We understand that your current home is a special place, and if we can help you with resources to remain there, please reach out.
Stay tuned for Part 2 of Real Estate Success in 2025! Until next time.