"Motivation is what gets you started. Habit is what keeps you going." - Jim Ryun

Hey Everyone,

Welcome to this week’s edition of The Ridgeline Rundown!

It seems like the holiday season is officially upon us, bringing cozy nights by the fire and plenty of festive cheer! With Thanksgiving just around the corner, I'm feeling extra grateful for wonderful clients like you! I hope you have a chance to relax, recharge, and enjoy some delicious food with loved ones.

As always, I'm here as a no-strings-attached resource for any real estate questions, market insights, or local happenings. Enjoy this week's updates, and reach out anytime!

Mortgage Minute

Mortgage rates held steady for the third day in a row, with top-tier 30-year fixed rates remaining just above 7%. This stability is despite Fed Chair Powell hinting at a slower pace of future rate cuts, which typically puts upward pressure on mortgage rates. While bonds did weaken after Powell's comments, earlier gains helped to offset the impact, preventing an immediate rise in mortgage rates for now.

The Insider’s Guide to Real Estate | Tips

Should You Sell Your House or Rent It Out?

When you’re ready to move, figuring out what to do with your house is a big decision. And today, more homeowners are considering renting their home instead of selling it.

Recent data from Zillow shows about two-thirds (66%) of sellers thought about renting their home before listing, with nearly a third (28%) taking that possibility seriously. Compared to 2021, when fewer than half (47%) of homeowners considered renting before selling, it’s clear this trend is on the rise.

So, should you sell your house and use the money toward your next home or keep it as a rental to build long-term wealth? Let’s walk through some important questions to help you determine the right path for your financial and lifestyle goals.

Is Your House a Good Fit for Renting?

Before you decide what to do, it’s important to think about if it would make a good rental in the first place. For instance, if you’re moving far away, managing ongoing maintenance could become a major hassle. Other factors to consider are if your neighborhood is ideal for rentals and if your house needs significant repairs before it’s ready for tenants.

If any of these situations sound familiar, selling might be a more practical choice.

Are You Ready for the Realities of Being a Landlord?

Managing a rental property involves more than collecting monthly rent. It’s a commitment that can be time-consuming and challenging.

For example, you may get maintenance calls at all hours of the day or discover damage that needs to be repaired before a new tenant moves in. There’s also the risk of tenants missing payments or breaking their lease, which can add unexpected stress and financial strain. As Redfin notes:

“Landlords have to fix things like broken pipes, defunct HVAC systems, and structural damage, among other essential repairs. If you don’t have a few thousand dollars on hand to take care of these repairs, you could end up in a bind.”

Do You Understand the Costs?

If you’re considering renting primarily for passive income, remember, there are additional costs you should anticipate. As an article from Bankrate explains:

Mortgage and Property Taxes: You still need to pay these expenses, even if the rent doesn’t cover all of it.

Insurance: Landlord insurance typically costs about 25% more than regular home insurance, and it’s necessary to cover damages and injuries.

Maintenance and Repairs: Plan to spend at least 1% of the home’s value annually, more if the house is older.

Finding a Tenant: This involves advertising costs and potentially paying for background checks.

Vacancies: If the property sits empty between tenants, you’ll lose rental income and have to cover the cost of the mortgage until you find a new tenant.

Management and HOA Fees: A property manager can ease the burden, but typically charges about 10% of the rent. HOA fees are an additional cost too, if applicable.

Bottom Line

To sum it all up, selling or renting out your home is a personal decision. Make sure to weigh the pros and cons carefully and consult with professionals so you feel supported and informed as you make your decision. A real estate agent can be a great person to go to for advice.

Featured Listing

Colorado Springs Social Scene

Military News and Updates

Colorado Springs Veterans Day Parade marches on despite obstacles

A previous parade cancellation and a week full of heavy snowfall did not stop Colorado Springs from celebrating Veterans Day on Saturday.

The "In Their Honor Veterans Parade" drew hundreds of residents downtown, despite lingering chilly temperatures left over from the snowstorm that wrapped up Saturday morning. The event was pushed back an hour earlier in the week to allow additional time for snowplows to clear the route.

After a shocking cancellation in early October for the originally planned parade, it was revived in less than four days by the same organization that hosts the downtown St. Patrick’s Day Parade — Colorado International Events.

Feel free to reach out with any real estate questions—I’m here to help, no matter the state!

Referrals are the biggest compliment, so send anyone my way. Until next time!