Tag: buying a home

Should you rent or buy?Should you rent or buy?

March 22, 2023March 22, 2023| Carrie SummersShould you rent or buy?| 0 Comment| 3:13 pm


Homeownership is often said to be the better choice when compared to renting. However for certain people, this isn’t always true. Here are 6 types of people that are better off renting than owning a home. 

  1. People with high credit card debt. If you have trouble doing things like saving for a vacation or paying for a car repair, these are signs that you are not ready for home ownership yet. If something super expensive happened related to your home, how would you afford to pay for it? 
  2. You prefer to have predictability in your monthly expenses. You can’t always plan for things that come up suddenly such as a leaky roof or emergency plumbing repair. Renting a home guarantees a fixed expense each month. You don’t have to budget for emergency repairs, increased HOA fees, property taxes, home insurance, etc. 
  3. You don’t have an emergency savings fund. An emergency savings fund is typically 3 to 6 months worth of living expenses. If you don’t have this kind of savings account yet, you may not be financially ready to buy a home.
  4. You love living in big cities. If you prefer living in a big city, you shouldn’t sacrifice that to live in a suburb you don’t like. Rent is usually cheaper than buying a home with a million dollar mortgage in the same area. 
  5. You see homeownership as controlling. Most people choose to buy a home so they can make changes such as paint color, adding additions, and having a sense of control to do what they want with their space. However most of these things require approval and permits. And if you live in a HOA you can’t just paint the door red, there are rules you must follow. 
  6. You’re buying a home to increase your net worth. It can seem appealing to buy a home to build equity and increase your net worth. A mortgage amortization schedule shows how much of your mortgage payments go towards the principal balance versus the interest paid to the lender. If you are paying $3,000 a month, maybe $300 of that is going towards the principal, which goes towards equity. The other $2,700 is going to interest at the bank, the bank basically owns the house more than you do. However if you can buy a home and rent out part of it, which would help pay the mortgage that would be sweet!

Homeowners Insurance – The BasicsHomeowners Insurance – The Basics

June 13, 2022June 13, 2022| Carrie SummersHomeowners Insurance – The Basics| 0 Comment| 5:23 pm

Homeowners insurance policies pay to repair or replace your home and belongings should they be damaged in an unexpected event, such as an accident, fire, storm or other disaster.

How Much Coverage Do You Need?

Start with the coverage limit. Consider the cost of completely rebuilding your home and replacing all the belongings inside it.

Your lender may require you to carry a certain amount of homeowners insurance — often equal to or greater than the amount of your mortgage. At this stage, you should also consider whether you’d like to insure your belongings according to their actual cash value or replacement value.

Understand What is Covered

It typically covers damage from fire, windstorm, hail, water damage (excluding flooding), riots, explosion, as well as other sudden and unexpected losses., i.e. theft, and the extra cost of living elsewhere while your home is repaired or rebuilt. Make sure you understand the policy so that you are able to cover the cost of repairs/ belongings replacement.

Shop Around

Not all insurance policies or companies are the same so it’s important to make sure you are comparing apples to apples.  With home prices soaring, be sure your insurance covers what your home is worth now, not when you bought the home.

For more tips give Carrie Summers with Colorado Ranch & Home Realty a call 970-759-2540.

Why Zillow Home Values Should Not Be TrustedWhy Zillow Home Values Should Not Be Trusted

May 5, 2022May 5, 2022| Carrie SummersWhy Zillow Home Values Should Not Be Trusted| 0 Comment| 9:12 pm

One of the most common questions I get is, “how accurate are Zillow home value estimates?”

The majority of the time, these Zillow home values a.k.a. “Zestimates” are NOT accurate. Zestimates are created by an automated system that cannot think for itself, or account for variations or unique characteristics that can alter the price.

One of the factors impacting the Zillow Zestimate is the property’s assessed value from tax records. Rarely does assessed home value have a correlation to market value. Assessed values are used by the county to collect taxes.

Another data point that Zillow uses is the most recent selling price of a property. The market is changing so quickly and a sale price that is years old is no way to estimate the current value of a home.

Zillow estimates the values of over 100 million homes across the country. It would be impossible for them to predict the value of each home accurately. Zillow does not enter properties but relies on their system instead. They have no idea that you spent $50,000 renovating your kitchen and bathrooms. Zillow also doesn’t know if you have a $20,000 structural crack in your foundation, or if your roof needs replacement. They also have not idea if your home is in a desirable area.

Zillow can be a useful tool, but it does not provide adequate accuracy on home prices to be used exclusively.  Want to know the accurate market value of your home? Call Carrie Summers with Colorado Ranch & Home Realty 970-759-2540.

Tax Tips for Homeowners!Tax Tips for Homeowners!

February 6, 2022February 6, 2022| Carrie SummersTax Tips for Homeowners!| 0 Comment| 12:50 am

Hi!  Working on your taxes?  Here’s some great tips for homeowners.

You can get some federal tax breaks for owning a home IF itemizing deductions on your 2021 tax return.
But that’s a bigger “if” than it used to be.
Although tax deductions for homeowners can add up to thousands of dollars, claiming them is worth the trouble only if all your itemized deductions exceed the IRS standard deduction.
The standard deduction for the 2021 tax year is:
  • $25,100 for married couples filing jointly
  • $12,550 for single filers 
  • $18,800 for heads of households
So what’s deductible?
1. Mortgage Interest
2. Home Office Expenses
3. Mortgage Insurance
4. Property Taxes
5. Home Improvements that are medically necessary: ramps, larger doorways, and handrails.
If you have questions, I am here to help and have several great CPA’s to assist you!

Common Problems in Home InspectonsCommon Problems in Home Inspectons

January 15, 2022January 15, 2022| Carrie SummersCommon Problems in Home Inspectons| 0 Comment| 9:09 pm

  1. Water Intrusion

Water damage can be very tricky to deal with. Roofs are often the first spot for water to leak and travel downwards. Inspectors usually start in the attic when looking for water damage. Some of the signs of water damage include:

  • Cracks and holes. – Cracks or holes on the exterior walls are areas water can enter your home
  • Warped floors and damp carpets
  • Stained walls and ceilings – Even if the stain results from an old leak that has been repaired, inspectors will still check for mold buildup.
  • Peeling paint and wallpaper – This issue may be an indicator of a leak behind the walls
  • Musty odors – This can be an indication of mold buildup, often caused by leaks.
  1. Faulty Wiring
  • If you see open junction boxes, mismatched amperage, or extension cords running everywhere when you view a home, these are bad signs.
  • Homes built between 1900 and 1950 often have outdated and inadequate fuse boxes. Unfortunately, that means the entire wiring needs to be replaced as it is not enough to keep up with today’s needs.
  1. Foundation Flaws
  • Foundation problems arise in the form of sloping floors, doors and windows that stick, or even doors that swing in one direction when left ajar. Foundation cracks can be caused by a variety of serious issues.
  1. General Problems
  • Poor home maintenance? How’s the heater, roof, and siding?
  • Is repainting, or new flooring needed, or grout in bathroom is decaying?
  1. Faulty Plumbing
  • Turn on every faucet, and check if drains are working properly.
  • Flush every toilet. Are they loose?
  • At each area look for inadequate water pressure, slow drains and signs of leaks. Open the cabinet under the sinks and check for leaks. If there is a kitchen or bathroom on the second floor, check the ceiling below them for signs of water damage.

All of these problems can be costly to fix.  It is really important to do a thorough inspection!  For a list of trusted inspectors, give Carrie Summers with Colorado Ranch & Home Realty a call, 970-759-2540.

Happy Solstice!Happy Solstice!

December 21, 2021December 21, 2021| Carrie SummersHappy Solstice!| 0 Comment| 9:10 pm

What a glorious morning sunrise!  Yesterday and today it’s a bluebird day with it being around 43 degrees.  On Thursday we will be getting about 8 inches of snow for Christmas!  Homes are still flying off the market!  If you are looking to sell, now is the time!  Interest rates are low for buyers, and I’ve got plenty who are looking for new homes!