Tips for Denver home buyers!
Negotiating is one of the most important things to consider when buying a home. Many buyers don't know the right things to say, and it can cost them money. One comment can ruin your negotiating position. This is one of the main reasons it's smarter to hire a Realtor than to go at it alone. Many buyers, especially first time buyers, don't realize that the seller of a home typically pays the real estate agent's commission. In most cases, hiring a Realtor is free, and it will save you money, lot's of money.
Here are a few things to consider when buying a new home.
1. Get pre-approved
I have seen it time and time again. Buyers often spend a lot of time and effort looking for homes without getting their financing in order. How would you feel if you went out and looked at a home, fell in love with it, and someone else put in an offer that was accepted because you didn't prepare. The first step in the home buying process is talking to your real estate agent about getting pre-approved. Any agent that has a clue what they are doing will get you in touch with a mortgage broker to get financed. The problem with not getting pre-approved is that a seller won't take your offer seriously, especially if there are other offers on the table. When a seller accepts an offer, the home is typically taken off the market, which means that they won't be showing it to any new potential buyers. Listing agents will almost always advise their clients not to accept an offer without a pre-approval letter from the buyer's lender.
2. Determine The Features That Are Most Important To You
A lot of buyers waste a lot of time, because they don't sit down and think about what they want in a new home. It's very important to determine your "must have's" and your preferences when buying a new home. When you can convey exactly what it is you are looking for in a home, it will help your real estate professional assist you in finding that. This eliminates a lot of confusion. If you go out and look at too many homes, the process becomes frustrating and unpleasant. Make it a fun experience for yourself, and only look at homes that have the features you want.
3. Consider a fixer-upper
Many homes sit on the market for very long periods of time, because they aren't as updated as most buyers would like. Buyers tend to turn their nose up at homes that aren't perfect. While it is nice to move into a home that is flawless, it will typically cost you a lot more money than buying a home that needs a little TLC. How do you think people who "Flip" homes make a profit? Many sellers that have a home that has been sitting on the market for a while because it isn't updated will drop their price dramatically. They may have to move out of state, or the home could have been an inheritance. You really never know what their situation is. Consider this. If you could buy a home for 300,000 and put 50,000 into it to make it exactly what you want, wouldn't that be better than spending 400,000 on a home that has already been updated? You won't always find these deals, but they are out there. Be aware of the price of homes your are looking at. Don't just look at the pictures!
4. You don't have to have 20% down
Back in the old days, most buyers would save up quite large chunks of money to put 20% or more down on a home. While this is nice, it's a luxury that many of us can't afford. We have very low interest rates these days, and in most areas of the country our real estate markets are really rebounding. What does this mean for you? It means that buying a home is generally a lot better than renting. Not only will your home most likely increase in value over the next few years, you will also pay close to the same amount of money that you would have spent renting. There are many loan programs out there that will allow you to get a home for $1000 down or less. Ask your real estate agent or your mortgage broker about the many programs that are available in your area.
These are just a few of the items to consider when buying a home. There is a lot that goes into the process. If you are in the Denver area and you need some help, give me a call anytime. I'd be happy to assist you! If you would like to see the current homes for sale in the Denver metro click here or in the box below. Thanks for reading my article on tips for Denver home buyers.
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