If you’re buying a Denver home, be forewarned: this is not last year’s housing market and the rules for buyers are shifting with the housing turnaround.
Here are five new tenets that all serious buyers should heed.
Skip the Lowball Offer – In this improving market, you’ll do better asking the seller for concessions such as help with closing costs or paying for needed repairs. Making an offer far below asking price can at best prevent price negotiation and at worst kill the deal altogether. Savvy Denver home sellers will just move to the next buyer in line.
Pre-Approval is a Must – If you’re truly serious about buying, then check your credit and get pre-approved before you look at even one house. You’ll know how much house you can afford and potential sellers will have more confidence in your ability to buy in a tightened lending environment.
Know Your Market – Let your real estate agent educate you on conditions in your area including how long homes are staying on the market. Focus on transactions from the last three months to get a clear idea of how things are and what to expect.
Plan to Compete for Your Home - It’s Economics 101: the supply of Denver homes is shrinking while demand is growing, so lots of buyers could be bidding on the same home. This is especially true for short sales and foreclosures where many buyers will have cash in hand. Increased competition is another great reason for loan pre-approval.
Do Your Research – Specifically, hire a title company to find out about any liens or arrears on your desired home, have your own home inspector go through the house, and verify property lines by reviewing a recent survey or having your own done. It’s also critical to make sure that all required state disclosures have been made regarding the property.
There are still great bargains out there for Denver real estate, and following these new rules will help you be the buyer who wins the prize.
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 Castle Rock, we can show you some terrific properties in Castle Pines, homes in The Meadows, town homes in Founders Village, and real estate in Castlewood Ranch.