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When it comes to real estate, one of the most useful tools for understanding market conditions is something called the absorption rate. Simply put, the absorption rate measures how quickly homes are selling in a specific market. It’s calculated by dividing the number of homes sold in a given period by the number of homes currently on the market. This figure gives us a “speedometer” for the market—how fast or slow homes are moving.
In a balanced market, the absorption rate usually reflects about five to six months of inventory. That means if no new homes were listed, it would take five to six months to sell all the homes currently available at the existing sales pace. When the absorption rate dips below five months, we enter seller’s market conditions. This signals high demand and low inventory, which often leads to faster sales, competitive bidding, and multiple offers. On the other hand, when the absorption rate climbs above six months, it indicates a buyer’s market. Homes take longer to sell, inventory grows, and buyers often gain leverage in negotiations.
The absorption rate also plays a big role in setting strategy. In a high-absorption market, where demand is strong, pricing a home aggressively and preparing for a fast sale can make sense. In a low-absorption market, pricing more competitively and offering buyer incentives may be the best way to attract attention. Sellers benefit from knowing these dynamics upfront, because it helps them set realistic expectations about how long their home might take to sell and whether adjustments to price or presentation may be necessary.
It’s also important to remember that real estate is local. While you may hear national statistics on the housing market, the absorption rate is most useful when applied to your local area—even down to specific neighborhoods or price ranges. That’s because each market has its own rhythm, and broad averages rarely capture the nuances of your community.
Think of absorption rate as a snapshot of market velocity. Just like traffic speed tells you whether the road is clear or congested, absorption rate tells buyers and sellers whether the market is moving quickly or slowly. Armed with this knowledge, you can make more informed decisions, whether you’re preparing to buy, sell, or simply stay up to date with your neighborhood’s market activity.
If you have questions, or if I can help, please give me a call at 719.464.5839.

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If you’ve been wondering what’s going on with the real estate market lately, you’re not alone. After several years of intense competition and bidding wars, the tide is shifting and today’s buyers are seeing more negotiating power than they’ve had in a while.

According to data from the real estate analytics firm Cotality, around 56% of homes nationwide sold below their asking price as of late 2025. This trend marks a notable change from the red-hot market we’ve become accustomed to. What’s driving the shift? Several factors are at play:

• Inventory is rising. More homes are staying on the market longer, giving buyers more choices. At the same time, some sellers are choosing to pull their listings, up 48% compared to last year, often because their pricing expectations aren’t being met.
• Buyers have more leverage. With less competition, buyers are successfully negotiating on price and requesting concessions like help with closing costs or mortgage rate buydowns.
• Affordability is still a challenge. Even with more flexibility in negotiations, high interest rates and increased insurance costs are still hurdles for many would-be buyers.
• The market isn’t the same everywhere. Some areas, particularly parts of Texas and Florida, are seeing much higher inventory levels than others, making it even more important to understand local trends.

While it might feel like the market is cooling, that doesn’t mean it’s stopped. In fact, almost half of homes are still selling at or above list price but here’s the key: they’re priced right from the start.

If you’re thinking of selling, the first two weeks on the market are critical. Homes that are accurately priced in line with current conditions tend to attract more attention and stronger offers, often right out of the gate. Pricing it right helps you make the best possible impression and potentially avoid price cuts down the line.

There are specific market areas that are not experiencing these conditions but it requires a local market expert to identify them.

If you’re curious about your local market or considering a move, I’d be happy to share insights and walk you through your options. Whether buying or selling, timing and strategy make all the difference. Download our Sellers Guide.

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Many homeowners are surprised to learn that the unpaid balance on their mortgage isn’t the same as the payoff amount. While the unpaid balance represents the remaining principal owed on the loan, the actual payoff is often higher. That’s because the payoff amount includes not just the principal, but also any accrued interest and other fees owed up to the day the loan is fully satisfied.

Mortgage interest is typically calculated on a daily basis, so if you’re paying off your loan between regular payment dates, additional interest will be included in the payoff amount. This daily interest accrues from the date of your last payment until the date your lender receives the full payoff.

In addition to interest, your payoff may include other costs. Lenders often add small administrative or recording fees to cover the cost of processing the final paperwork and releasing the lien on the property. In some cases, prepayment penalties may apply, although they are less common in today’s residential mortgages.

If you have an FHA loan, additional fees may be involved. FHA loans typically require that interest be paid through the end of the month in which the loan is paid off, regardless of the exact payoff date. This means that even if your lender receives the payoff early in the month, you could still be charged interest for the entire month. FHA loans may also include a small mortgage insurance premium refund or final adjustment, depending on how long you’ve held the loan and your payment history.

Understanding the difference between your loan balance and your payoff amount is important when you’re planning to sell your home, refinance, or pay off your mortgage early. Always request a formal payoff statement from your lender before making a final payment, as it will detail the exact amount required to fully close out the loan.
Being aware of these differences can help you avoid surprises at closing and give you a more accurate picture of what to expect when paying off your mortgage.

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Whether you’re planning a move, thinking about renovations, or just want to make smarter financial decisions, knowing your home’s current value is essential. Your house is likely one of your largest assets, and staying informed about its worth gives you more control over your future.

Here are just a few of the reasons homeowners check in on their home’s value regularly:

Knowing your home’s value gives you a more accurate picture of your overall net worth, especially since real estate is often the largest part of a family’s financial portfolio.

If you’ve built up equity, you may be able to access it through a home equity loan, line of credit, or cash-out refinance, giving you funds for upgrades, education, investments, or emergencies.

Understanding your home’s market value helps you make smarter choices when planning renovations, especially if you want to avoid over-improving or ensure a good return on your investment.

If you’re considering selling, an up-to-date home valuation helps you set a realistic price, understand your potential profit, and make timing decisions based on market conditions.

If your home’s assessed value is too high, you could be paying more in property taxes than necessary. A current market value report can help you dispute it and lower your bill.

Tracking your home’s value also helps you plan for major life transitions, such as relocating for a job, helping aging parents, or downsizing after the kids leave the nest.

If you’re nearing retirement, knowing your home’s equity position can help you decide whether to sell, refinance, or convert your home into an income-producing rental.

Finally, markets change and staying in the loop helps you recognize opportunities so you’re not caught off guard by shifting conditions.

If you’re curious about your current home value, whether you’re thinking of selling, refinancing, or just want to stay informed, I’d be happy to prepare a no-cost, no-obligation market evaluation for you.

Just reply to this email or call me at 719.464.5839.

You might be surprised by what your equity is doing for you!

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When it comes to buying or selling a home, most of us expect a familiar process: offer, contract, closing. But starting December 1, 2025, a new federal regulation could change what’s required in certain transactions… and we want you to be informed ahead of time.

The Financial Crimes Enforcement Network (FinCEN) is launching a nationwide rule that targets residential real estate purchases made by companies, LLCs, or trusts, especially when there’s no traditional mortgage involved (i.e., an all-cash purchase or funding from a private lender without anti-money laundering safeguards).

While the goal of the rule is to prevent illegal financial activity like money laundering, it could impact legitimate transactions including those involving estate planning, real estate investments, or business-owned property.

What Does This Mean for Homeowners?

If you’re selling a home to a buyer who is using a trust, LLC, or corporation without a bank loan, new reporting requirements may apply.

Buyers may be asked to disclose who truly owns or controls the buying entity — something that wasn’t previously required in many deals.

These rules apply to residential properties, including vacant land intended for housing, single-family homes, condos, and co-ops.

The rule also affects transactions handled by title companies, attorneys, or escrow officers — who may now be required to file new federal reports.

How This Could Affect Your Next Transaction

This change doesn’t affect most typical home sales, especially those involving conventional financing. But if you’re ever involved in a more complex sale — like a cash deal, an investment property held in an LLC, or an inherited home going into a trust — it’s possible that new disclosures or paperwork may be needed.

Don’t worry, we’ll guide you every step of the way. As your trusted real estate professionals, we stay on top of regulatory changes like this so you don’t have to. If these rules apply to your situation, we’ll make sure you understand what’s required and help coordinate with your closing team.

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If you’re planning to buy a home with less than a 20% down payment, there’s a good chance you’ll need to pay for Private Mortgage Insurance, or PMI. While it’s a common requirement, many buyers don’t fully understand what PMI is or how it impacts their monthly payments.

PMI is a form of insurance that protects your lender in case you stop making payments on your loan. It doesn’t protect you, the buyer, but it does make it possible for you to purchase a home without having to wait until you’ve saved a full 20% down payment.

Lenders typically require PMI on conventional loans when your down payment is less than 20% of the home’s purchase price. It’s also important to note that PMI is not required for government-backed loans like FHA, VA, or USDA loans, which have their own forms of mortgage insurance or guaranty fees.

The cost of PMI can vary based on several factors, including your credit score, the size of your down payment, the loan amount, and the loan term. On average, PMI can range from 0.2% to 2% of the original loan amount per year, paid monthly along with your mortgage.

To get a personalized estimate of how much PMI could add to your payment, use Freddie Mac’s PMI Cost Estimator.

PMI isn’t forever. Once you reach 20% equity in your home, either by paying down your loan or through appreciation, you can request that your lender remove PMI. By law, lenders must automatically remove PMI once your equity reaches 22%, assuming you’re current on your payments.

If PMI allows you to get into a home sooner, especially in a rising market, it may be well worth the additional cost. The key is to understand how it affects your monthly budget and have a plan for eventually removing it.

If you’re not sure whether PMI will apply to your next purchase or how much it could impact your payment, let’s connect. I’d be happy to walk you through your options and help you make a well-informed decision.

We also offer a Buyers Guide that has a lot of helpful information.

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Buying your first home is an exciting milestone—but it can also come with a lot of questions. From financing and credit scores to mortgage options and closing steps, understanding the process can help you make informed decisions with confidence.

That’s why we’ve compiled straightforward answers to some of the most common questions first-time homebuyers ask. Whether you’re just starting to explore the idea of homeownership or getting ready to make an offer, this guide will give you a solid foundation.

How much money will I need to buy a house?
You’ll need enough to cover your down payment plus closing costs (typically 2…6% of the loan amount), as well as additional funds for moving and initial home expenses.

How much house can I afford?
Your affordability should consider what you can comfortably pay monthly, not just what your lender approves, using your debt-to-income ratio as a guide.

Do I need a good credit score?
Yes and higher scores help you secure better loan terms; conventional mortgages typically require at least a 620 score, while FHA loans may accept scores as low as 500 with a down payment.

Should I get a 15-year or 30-year mortgage?
It depends on your financial goals. 15-year loans generally cost less in interest over time, while 30-year loans offer lower monthly payments and greater flexibility.

Fixed-rate vs. adjustable-rate mortgage?
Fixed-rate loans offer stable payments, while adjustable-rate mortgages often start with lower rates but can change later.  Choose based on your budget and how long you plan to stay.

Which first-time homebuyer mortgage is best for me?
The best mortgage depends on factors like your down payment, credit, and how long you plan to stay.  Ask lenders to help you compare options, including FHA, conventional, VA, and more.

What documents do I need to qualify for a loan?
Expect to provide ID, pay stubs, tax returns, bank statements, and employment history; lenders need these to verify your financial profile.

Should I get preapproved or prequalified?
Get a preapproval. It’s a stronger, verified estimate of how much you can borrow and shows sellers you’re serious; prequalification is less formal and less reliable.

How do I get the best mortgage rates?
Shop around. Compare offers from multiple lenders to find the most competitive rates and terms. A small difference in rate can mean significant savings over time.

What should I expect during the first-time homebuying process?
Expect steps like financial preparation, home searching, getting preapproved, making offers, inspections, and closing. Having a knowledgeable agent and lender can guide you smoothly.

While resources like this are a great starting point, one of the smartest moves you can make is to work with a trusted real estate professional. An experienced agent doesn’t just help you find the right home; they guide you through every step of the process and can connect you with reputable lenders, inspectors, insurance agents, and other professionals you’ll need along the way.

If you’re thinking about buying a home, reach out today. I’d be honored to help you navigate your journey with confidence.  For more information, download our Buyers Guide.

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A lower monthly payment sounds appealing but it may come at a much higher price.

When buyers hear about 40 or 50-year mortgages, it’s easy to see the appeal. The payment is smaller, the budget feels easier, and the dream home seems more within reach. But while stretching out a mortgage can make monthly payments more manageable, it also slows the pace of equity growth and dramatically increases the total interest you’ll pay over time.

To show how this plays out, let’s compare a $350,000 loan on a home purchased for $389,000, assuming an average Freddie Mac 30-year rate of 6.22%, a 40-year loan at 6.72%, and a 50-year loan at 7.22%. The table below shows how much you’d owe after 5, 10, and 15 years and how much equity you’d have if the home appreciated at a steady 3% per year.

Mortgage Comparison: The Long View

(Assumes 3% annual appreciation on a $389,000 purchase price & $350,000 original mortgage.)

At first glance, the longer-term loans appear attractive saving roughly $200 to $300 a month compared to a 30-year mortgage. But that smaller payment comes at a cost.

• Equity builds much more slowly. After 10 years, the 30-year borrower has nearly $228,000 in equity, while the 50-year borrower has only $186,000, a difference of over $40,000 in wealth.
• Interest piles up dramatically. Over the life of the loan, the 50-year mortgage racks up about $925,000 in interest, more than double what you’d pay on a 30-year loan.
• Wealth is delayed, not saved. Because your early payments go mostly to interest, it takes much longer to reach the point where your home is truly building financial security.

While a longer-term loan can make a monthly payment look more affordable, it stretches the payoff horizon, slows your path to equity, and significantly increases your total cost of homeownership. For most buyers, a 30-year mortgage strikes a better balance between affordability and wealth-building.

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If you’ve been sitting on the sidelines, waiting for mortgage rates to drop back below 4% before making a move, it’s time for a reality check. While we all loved the historically low rates of 2020 and 2021, those numbers were driven by extraordinary global circumstances, not typical market trends. And expecting them to return any time soon could lead to missed opportunities that may cost you far more in the long run.

During the height of the pandemic, global economic uncertainty prompted aggressive action from the Federal Reserve, which helped drive mortgage rates to record lows. In January 2021, the 30-year fixed rate bottomed out at 2.65%, the lowest in Freddie Mac’s recorded history, which dates back to 1971. But that wasn’t a normal market. It was a response to an emergency.

Looking at the big picture, the average 30-year mortgage rate over the last 60+ years has hovered around 7.74%. Even today’s rates, currently in the mid 6% range, are below that historical average. In other words, we’re not in a high-rate environment; we’re back in a normal one.

The danger in holding out for rates to drop back to those pandemic lows is that the market isn’t standing still. While you’re waiting, home values continue to rise due to ongoing appreciation, and every mortgage payment you’re not making is equity you’re not building. Between market appreciation and amortization (the reduction of loan principal with each payment), today’s buyers are building thousands of dollars in equity every year.

Let’s say home prices rise by just 5% annually, a fairly conservative estimate based on recent years. A $400,000 home could cost $420,000 or more just a year from now. That extra $20,000 increase easily outweighs any potential savings from a slightly lower mortgage rate. And if rates do dip slightly, competition will likely surge leading to bidding wars and driving prices up even more.

So, whether you’re a first-time buyer or looking to move up, the smarter question isn’t “When will rates drop?” …it’s “What will waiting cost me?”

Today’s market offers opportunities, but they won’t last forever. By acting now, you can start building equity, take advantage of current rates while they’re still below the historical norm, and avoid the risk of rising prices and tighter competition. The bottom line: Don’t let yesterday’s rates stop you from building tomorrow’s wealth.

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