Buying a home is one of the biggest investments you’ll ever make! Therefore, it’s important to have a thorough understanding of the home buying process. Before beginning the search for your dream home, sit down with your Realtor to make sure you’re well prepared and equipped for purchasing your next property. Here are the top questions to ask your Realtor before buying a home in Denver, Colorado and the surrounding metro area.
What costs are associated with buying a home?
Before stepping into your first home showing, it’s important to be financially prepared for all of the costs associated with buying a home. The down payment for the loan is the most commonly discussed aspect of the purchase. However, there are several additional charges to be ready for beyond the initial down payment. Denver real estate transactions require your earnest money deposit, inspection fees, survey expenses, and closing costs. Start budgeting at the beginning of the buying process in order to cover these fees.
How’s the market?
Understanding the conditions of the Colorado real estate market when buying a new property will help you maximize the value of your purchase. This information is helpful for identifying available home inventory, the rate at which homes sell, average home premiums, and appreciation rates for specific housing areas. Knowing the market will help you identify properties that are best suited to your needs.
How’s the market in my preferred neighborhood?
Once you find a home that you love and would like to purchase, you should first identify the market conditions of the neighborhood. Find out how the overall Denver real estate market compares to your specific neighborhood of interest. Sometimes neighborhood conditions can vary from other locations around the city. This information will help you negotiate an offer with the sellers.
Where can I find a great lender?
If you plan to finance the purchase of a property, finding a reputable lender is critical to a successful home purchase. Due to the competitive nature of the Denver metro area, the lender you work with can impact the seller’s chances of accepting your offer. Consequently, make sure the lender you choose has a high success rate of closing loans.
How does the home buying process work?
As a home buyer, you should have an in-depth understanding of the transaction process. In Colorado, the stages include obtaining financing pre-approval, establishing your home criteria for the search, visiting properties, writing offers, and conducting inspections. The final step is to make sure all legal requirements have been satisfied for the title, loan, and homeowner association.
What does the contract say?
Before signing the purchase contract, both parties must agree upon the terms. Buying real estate in Denver requires a 17-page purchase agreement to be completed. The contract outlines the entire transaction process from important dates, deadlines, and contingencies to protections for the buyers and sellers. Take time to review this important document with your Realtor.
How do I win in a multiple offer situation?
Finding the perfect home and making an offer does not guarantee you’ll be the next homeowner. In the Denver real estate market, you must approach each offer submission as a competition. You’re often competing with several buyers to win the selection of the seller. Consult with your Realtor to develop a winning strategy.
What inspections do you recommend?
Once under contract, the next step is to conduct a home inspection to make sure the property is safe to live in. The necessary inspections can vary depending on the type of home you are purchasing, but there are a few examinations that should always be conducted. I recommend performing a general home inspection (conducted by a home inspection company), a radon test, and a sewer scope for all Colorado home buyers.
What if there is a problem with the home?
Sometimes the home inspection will reveal a problem that could cause unsafe living conditions for the residents. However, an issue with the inspection report does not mean that the purchase must terminate. Be aware of the contingencies related to the inspection upfront and develop a plan with the seller to address problems that might arise.
If you need help navigating your next home purchase or have questions about the Denver real estate market, give me a call at 303-929-7844. I’d be happy to assist you!
Drew Morris – Realtor, ABR, MCNE
New Era Group | Your Castle Real Estate
U.S. Naval Academy Class of 2006