January 22’ - Listing Spotlight
A new year in Old Town real estate has begun and the biggest story on most buyers minds will be increasing interest rates. More importantly, though, should be the historic lack of inventory as we move into the new year as there is very little spillover from 2021 into the new year. As I compare what was listed in January of 2021 to January of 2022, there is actually more homes listed this year than last as there were 9 listings that hit the market in Old Town so far in 2022. In 2021, there were 10, but 3 of those were actually non-built new builds that have had a continued presence throughout all of 2021 and don’t quite react to market dynamics the same way that resale properties do. What is important to note in the first month of 2022 is that 70% of the homes listed were under contract in less than 2 weeks, showing spring-like demand right out of the gates this year. Buckle up!
233 Meldrum St B6, Fort Collins, 80521
Listed by Robert Mygatt, The Group Harmony
List Price: $295,000
Sold Price: Pending (4 days to offer)
Difference: TBD
This whole complex of condos is pretty unassuming overall, but offers some good value relative to other options in Old Town. In general, the second floor units sell better and quicker, which would be expected given more light and less overall noise. This particular unit looks to have been really well updated and maintained and was under contract very quickly.
401 S Howes St 701N, Fort Collins, CO 80521
Listed by Mary Miller, Remax Advanced Inc.
List Price: $300,000
Sold Price: $326,000
Difference: $26,000
It seems that there were quite a few of these selling in 2021, so its no surprise to see more coming on the market into 2022. This one took a little bit longer than expected to go under contact (9 days) but in the grand scheme of things, that is no time at all. I wonder if many owners of these condos are cashing in as they see higher than normal HOA fees (over $600/month…some of the highest in town). Either way, there are now plenty of comparable sales in this high rise, so owners looking to cash in might think about striking while their are good comparable sales, and historically low inventory. The fact that this property sold $26K over its listed price shows a very high demand with low inventory levels as we start the year.
617 Park St, Fort Collins, CO 80521
Listed by Bobby Kahn, Integrity Real Estate
List Price: $489,000
Sold Price: Active (As of 02/04/2022)
Difference: TBD
Historically utilized and currently utilized as a rental, at the current moment, the numbers for this property make it a tough sell for both owner occupants or investors. For an owner occupant, they are constrained on their ability to occupy the property until the current lease is up (at the end of July). Lending standards will allow an owner occupant a grace period of 60 days after closing in which they can allow current owners/tenants to live in the property. After this 60 days, lenders will charge a buyer investor interest rates (which are higher). What this means, for an owner occupant, is that if they put the house under contract today, closed in 30 days, and wanted to move in 60 days later, they would still only be in May/June and would need to allow the tenants to fulfill their lease terms.
From an investors standpoint, the current rent amount is lower than what would be expected in the current market. The home is currently rented for $1400/month, which is well below market value at this point (should be closer to $2000). However, an investor purchasing this property with 20% down will not be close to making any money for the duration of the lease, meaning it is a losing investment until they can increase the rental rate. In fact, you would likely have to be putting closer to 50% down before you (as an investor) would make money each month on this investment
I think it would be wiser for the owners to wait to put this on the market until they are much closer to the lease end, which would allow both investors and owner occupants to compete for this property and make a more seamless transition into a new lease or ownership.
1605 Layland Ct, Fort Collins, CO 80521
Listed by Tracie Milton, The Group Centerra
List Price: $525,000
Sold Price: Pending (5 days to offer)
Difference: TBD
Situated at the very edge of what some would consider Old Town, this home still had plenty of architectural design that makes it an attractive option for buyers. At the time of listing, there had been little to no properties listed of this size and price through the holiday season, so seeing it go quickly is not a surprise. It does look like the original contract fell out, so a good reminder to potential buyers (and sellers) out there that backup offers can be a good way to compete in the aggressive market we are in
511 N Shields St, Fort Collins, CO 80521
Listed by Cathy Heckman, Resident Realty
List Price: $554,900
Sold Price: Active (as of 02/04/2022)
Difference: TBD
This property first came across my radar when it was listed as a For Sale By Owner over the holiday season. I was actually a bit surprised to see it come to the open market as I would have expected the lack of inventory to get this one snatched up. However, while everything has been remodeled on this home, the price and location just don’t quite match up at the moment. This home is located on a quieter section of Shields as you are leaving the north part of Old Town where it is down to one lane. However, in order to make this a 3 bed, 2 bath, the garage has been converted, which might pose some issues with offstreet parking, especially if it is used as a rental for 3 unrelated individuals. While there are some comparable sales that might help in the appraisal at this price (specifically a sale on nearby Beech St would help) the location on Shields would warrant some consideration in aggressive pricing in order to get a solid contract on this property.
672 Hanna St, Fort Collins, CO 80521
Listed by Bobby Kahn, Integrity Real Estate
List Price: $565,000
Sold Price: Pending Sale (3 Days to offer)
Difference: $TBD
They did it! after laboring on the market since August of 2021 (with 3 different agents), Hanna St finally has a contract! I honestly don’t feel like writing about this property again, I’ve already done it 3 times in the past so I’m just glad it will stop showing up in my feed.
1600 W Mountain Ave, Fort Collins, CO 80521
Listed by Jon Holsten, Winderemere Fort Collins
List Price: $575,000 (Originally $600,000)
Sold Price: Pending (13 days to offer)
Difference: TBD
This isn’t exactly the image that most buyers have in their head when the envision the ideal “Mountain Ave” home, but thats not to say there aren’t some great aspects about this home. Its location is a quieter section of Mountain Ave as you near the Grandview cemetery, which some might actually appreciate. Sections of Mountain Ave further to the East are much more prone to regular foot traffic and frequent parades, which while fun and vibrant, might be a bit of a nuisance to some. 1600 W Mountain is much more of a blank slate property for someone with a vision of creating a nice, ranch style home. There are certainly upgrades that would be needed in this home, and I found it interesting that once the price was reduced from $600-$575K, they had a contract 2 days later. Pricing still does matter even in this market.
1120 Woodford Ave, Fort Collins, CO 80521
Listed by Corey Younie, The Group Centerra
List Price: $580,000
Sold Price: Pending (4 Days to Offer)
Difference: TBD
This is another property that I have written about in the past, and it is a quick turnaround in ownership from the previous sale just 7 months prior. Leaving aside the details of the turnaround, on paper I wondered if 7 months was enough time to warrant a $45K increase (word of note….with many commissions being split 3% to buy side and 3% to seller side, the new pricing of this was likely taking that 6% selling cost into consideration in order to allow the sellers to break even on everything). As I toured the home, it is definitely nice, and struck me as a perfect home as a short term rental (not allowed in this location) but pretty cramped as an everyday residence. The basement space doesn’t really qualify as a 3rd bedroom, so this is really a 2 bed 1 bath, but completely remodeled and just blocks away from city park. It seems that the remodeled nature, coupled with extreme lack of inventory helped the current sellers get out of a quick turnaround pickle and helped them from not loosing a chunk of change.
214 Jackson Ave, Fort Collins, CO 80521
Listed by Joanne DeLeon, The Group Harmony
List Price: $795,000 (Originally $850,000)
Sold Price: Active (As of 02/04/2022
Difference: $TBD
When it comes to desirable lots within Fort Collins, most of the homes on Jackson Ave would fall into this category. This particular property is the type that seems to have tons of potential, but based on its current condition, it may take quite a project to realize that potential. This home originally had an offer within 2 days of being on the market at $850K, after which it came back to the market and was reduced to $795K. From what I can tell, this home is they type that may require a complete overhaul, including potentially changing layout, adding sqft, etc and would not likely be the type of project that one would want to take on while they live there. I would not be surprised to see this one spend a bit of time on the market until its price came in-line with what an astute buyer would consider a good “value” given the money that they may sink into the project to make it their dream home. Once finished, however, remodeled or restored homes on this block have been going well into the millions.
