• Patrick Soukup

Buying a Median Priced SFH or Condo/Townhome in Fort Collins

You've decided to buy a home in Fort Collins, CO. Fortunately, we live in a world where you can go on Zillow or RedFin and get an estimate of value of the property that is for sale. It is a neutral 3rd party suggesting value. Not a real estate buyer's agent who makes their living off of selling homes. In reality, so long as the home isn't TOO custom, the ever popular Zestimate, is pretty close usually. If the home is custom or unique (not a subdivision built after 1960), the Zestimate is not that great.


Price of Home: $450,000

Home Buyer: "What do you think the home is worth?"

Agent: "$440,000 to $460,000."


Now, granted, he or she is probably pretty close. Hopefully the listing agent and home owner have really dug into comparable properties and came to a value that makes sense. They probably went through a comparative market analysis (CMA) to come up with the value of their home.


That's great, but what research have you done as a homebuyer to ensure you are buying a home at a good price?


When homes have been increasing 5-10% annually over the last 10 years, you could buy the house and look back and wish you would have bough 5 more. What if prices plateau, or worst, decline?


Here is how the Single Family and Condo/Townhome Appreciation has looked since 2016:



It's important that you take the time to really dig into the numbers and make sure that you are getting a good value. Don't bank on appreciation. Even knowing what the median priced homes are selling for, how much square feet you can expect and accompanying monthly expenses.


Watch this video here:



Here are some of the highlights (these numbers are as of April 2020):


Median Prices

Single Family Detached: Townhome/Condo:

2020: 433,000 299,450

2019: 420,500 305,000

2018: 400,000 280,000

2017: 384,350 265,000

2016: 347,500 226,000


Price Per TOTAL Square Foot

Single Family Detached: Townhome/Condo:

2020: 175 214

2019: 170 212

2018: 164 207

2017: 153 192

2016: 140 166


Now, we know how much per square foot to expect to pay roughly and what price point we will be looking at generally if we are looking to buy in Fort Collins. How much home should each of those price points bring you?


Well if you go +/- 10% and look at the past 45 days here is what you could expect to get at those prices:


Single Family Detached Home: 2,577 Square Feet and 4 Bedrooms

Townhome/Condo: 1,735 Square Feet and 3 Bedrooms


Property Taxes (2019):

Single Family Detached Home: $2,535/Year

Townhome/Condo: $1,820/Year


Insurance Rates per Value Penguin:

Single Family Detached Home: $1,813/Year

Townhome/Condo: $350/Year


HOA:

Single Family Detached Home: $50/Month

Townhome/Condo: $235/Month


These numbers should provide you a baseline. Numbers that guide you through your home buying experience. Questions to ask yourself while looking for your home is, what is the price per square foot? How many bedrooms? Can we afford our property taxes and insurance here? Does this home fit into our budget?

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