Most Denver home buyers know at least the general aspects of buying real estate. But according to a recent Zillow survey of 1,000 potential home buyers, there are still some areas that can confuse even the more savvy buyers.
Here are five myths to be aware of as you buy your home in Denver.
1. In a normal real estate market, home values appreciate by 2 to 5 percent per year. Over the last 3 to 4 years many markets have depreciated. The Zillow survey showed that 42 percent of buyers believed the yearly increase was 7 percent.
2. You don’t need to buy mortgage insurance if your down payment is more than 20 percent of the home’s purchase price. About 41 percent thought they had to have the mortgage insurance no matter what the down payment.
3. Approximately 56 percent of buyers mixed up home appraisals and home inspections. An appraisal is done to estimate the fair market value of a home, while an inspection determines the overall condition of a home.
4. Your lender will require you to buy homeowner’s insurance. It’s not optional, although 37 percent of buyers thought it was.
5. Signing a purchase and sale agreement does not mean you own your Denver home. It’s only the first step in a long process, but 47 percent of buyers believed otherwise.
Buying a home can be stressful. Knowing fact from myth can help you more easily find a Denver neighborhood to call home.
Let the professionals at the Bandy Team help you buy or sell a Denver home, contact us for a no-obligation consultation. If you’re thinking about buying a home in Denver, we can show you some terrific properties in Denver, including homes in Denver Highlands and real estate in Washington Park (also known as Wash Park). You may also be interested in horse property in Franktown or homes in Parker, including a wide variety of homes in Canterberry and real estate in Stonegate.
Marianne Bandy
Comments (2)Subscribe to CommentsComment