Earlier this year, the Denver housing market saw the long-awaited uptick in activity. The question is: how can buyers take advantage of it?
Like in most markets, it's all about keeping a cool head. The home-buying process contains so many steps that some buyers end up rushing it. If you can deal with the chaos, though, the rewards can be great as well.
Need some help with making sense of it all? Here are some time-proven home buying tips for the Denver market!
Get Pre-Approved
Before you start looking at listings, you'll need to know what you can afford. The best way to do that is to talk to a lender and get their pre-approval letter.
On top of letting you know what prices you can afford, this document proves you're a serious buyer. Many sellers try to avoid going through the process of negotiating a sale only for it to fall through due to financing.
Getting pre-approved is also fairly simple. Once you find a lender, all you need to do is provide some financial documents and you'll get the letter within days.
Find the Ideal Price Point
The pre-approval letter tells you the maximum you can spend on a home. Of course, your budgeting purposes may mean you don't want to go that far.
If this is the case, find a price point where you feel comfortable with your monthly payments. This is particularly important if you're adding a mortgage to existing debts such as student loans.
For best results, have your real estate agent give you loan estimates at several price points within your budget. Then, incorporate those figures into your budget to find your ideal price point.
Narrow Down Your Options
Next, start looking at Denver neighborhoods. Market trends and property values can give you an idea of which area is right for your budget.
This is also a good time to consider the non-financial factors. For example, if you have kids, you may want to look at the best Denver school districts. This is why many families are looking to move into suburban areas.
Once you've settled on a specific neighborhood, you can start seeing homes in person. Doing so will allow you to visualize your future in the house and scout the neighborhood from up close.
Don't Waive Contingencies
These days, bidding wars in Denver can be fairly common. As a result, some buyers try to get ahead of the pack by waiving their contingencies.
In general, this isn't a good idea. Opting out of the appraisal contingency, for instance, could see you buying a home for a price far above its value. This is where adding an appraisal gap clause can be very handy.
Similarly, home inspection contingencies are all but essential. If you waive them, you won't be able to identify any major issues the seller would have to rectify.
Follow These Home Buying Tips!
With the Denver market blooming, buying in the area makes a lot of sense. The above home buying tips will help you make that happen!
Looking to hire a real estate agent to help you with this process? At PMI Elevation, we'll give you the best advice and the latest market information! Contact us here to see why we've been in business for 20+ years!
