Has the new and improved tax credit sparked your interest in buying a home? Between the credit, the interest rates, and the pricing, the Denver home buying scene has been lively these days. Sellers finally have some incentives to put their homes on the market, plus we're seeing renewed buyer demand for the smaller, less expensive type of home often popular among first timers. Sellers are realizing that even if they cannot ask what they would like to ask for their homes, they will benefit from lower pricing on their next home while realizing a $6,500 tax credit themselves. And the interest rates we're seeing now won't last forever.
Knowing that there will be demand, some sellers may put their homes up for sale without proper preparation while others may try to pass along a few problems to the next buyer. You do not want to unknowingly buy a money pit! You should carefully examine any reports from the city before making an offer as well as have the home inspected before you buy, but you should also keep your eyes open for any warning signs of undisclosed trouble. Just because you see a few red flags does not mean you should run from the house, but "forewarned is forearmed" aptly applies to home buying.
Ask yourself:
Does the neighborhood seem stable? If you drive through and see homes and businesses boarded up, that might indicate numerous foreclosures and vandalism? Your realtor is prohibited by law from disclosing certain information that may prejudice you against a neighborhood, but you should look at the figures of comparable sales figures your Realtor® can offer you, check our website for Denver school information (Carol: link to schools report in our website under Local Resources) and Denver neighborhood crime statistics (Carol: link to neighborhood info in our website under Local Resources), and talk to some neighbors to make sure the area is a good match for you and your family.
Does the home seem well maintained? If the current owners are on the brink of foreclosure or living on fixed income, they may have followed the "if it ain't broke, don't fix it " approach to repairs, but you don't want to be hit with unplanned major expenses as you are unpacking your boxes. If the light switches don't turn on smoothly, the toilets don't flush, or the windows are foggy, there might be other issues involved than homeowner neglect.
Does the foundation seem sound? If you see bulges or cracks, the home may have structural damage. If the foundation is damaged or if the yard is graded to slope toward the home, you may have problems with basement flooding or at least dampness. Beware of the telltale water lines on the walls!
Do you see signs of a cover up? Any seller wants to put his property in the best light, but you want to make sure that he isn't hiding a problem. Has only one wall been painted to cover water damage? Is excessive potpourri hiding pet odors? Is there an area that has been locked or blocked with clutter to hide other damage?
Along with all the incentives, you want to make sure you are still getting the best value when you are buying a home. If you are a first time homebuyer in Denver with less experience in evaluating property, make sure that the Bandy Team is by your side as you house hunt in Denver metro area. We can show you beautiful homes in Stapleton, Larkspur, Parker, and other communities, as well as familiarize you with the fine points of the credit for first time homebuyers and repeat homebuyers.
Marianne Bandy
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