The cycle of home buying and selling typically follows a flow from your first condo or shared space rental or purchase to your first starter home, then to a larger family home, next to your “dream” home, possibly a luxury space, and finally, downsizing to a patio home or a maintenance-free living space. We can see how the market is shifting based on what type of home is in demand or not. When housing supply and demand are balanced over time, this process flows relatively smoothly. If you can afford a new home right away, that may be a good option for a first-time home buyer or small family needing space and who don’t have the ability or desire to update anything. It’s a happy day when buyers have saved, prepared, and created the opportunity for them to take a step forward. I typically see and think it’s a great idea to find a home that you can get for a little less, that you can put some sweat equity into, learn about being a homeowner (make mistakes and build up your tool box and garden equipment) and after a few years, you have gained equity and can use that to now move up to a bigger home that fits your needs more. These “starter” homes that first-time buyers are looking for come from our aging population. According to the Colorado Sun, “Seniors make up the fastest-growing generation. Today, 1 in 6 Coloradoans are over 65: by 2050, demographers expect 1 in 5 will be.” As we age, stairs, size, upkeep, and costs play a major role in the decision of whether to stay or move. Most seniors want to age in place, according to AARP, “3 in 4 seniors want to stay in their current home.” However, not all homes allow for aging in place, as only about half (and that may be a stretch) of homes built in Colorado are single-story, and the costs to adapt multi-level homes may be prohibitive. Now it may be time to downsize! A good portion of seniors have been in their homes long enough that they may have it paid off, and when you are ready to sell, you may have a good amount to use for the next phase of life. Some people choose to move out of state (closer to family, maybe) to a less expensive area that stretches their money. A reverse mortgage is another fantastic product. I work with some great lenders who rave about reverse mortgages as a product for seniors, as they allow you to downsize and utilize your equity to pay for your living expenses. These reverse mortgages are not like the ones of the past and have evolved into a low-worry product. Others look to get into renting again, maintenance-free, and use the money they made to invest or travel. Speaking of traveling, I have also heard stories of couples booking a year-long (or more!) cruise, in place of a rental, that provides unlimited meals, travel, entertainment, lodging, paid utilities, and more, allowing them to live their best lives! However, some seniors face the reality of still having a mortgage (with potentially a very low interest rate), and if they sell, the money they put down on a new, smaller home may make their payments the same or more. New laws in Colorado aim to increase the construction of condos, townhomes, and other residential properties. As I mentioned in my article a few weeks ago, the market has flipped, and I’m calling it a Buyer’s Market here in Colorado. Don’t sit on the fence and wait any longer. Builders are offering some incredible incentives. Sellers are willing to negotiate on price, closing costs, and rate buydowns, and deals are available. Wherever you are in the cycle of home buying and selling, go with the flow and be ready for the next phase of life!
Benson Verbel is a Realtor at NextHome Foundations, 2025 President of Greeley Area Realtor Association and President of the Colorado Association of Realtors Young Professional Network. Contact Benson at 970.744.0223, benson@nexthomefoundations.com or visit bensonhomesales.com
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