You’re thinking about buying a Denver home and have questions about what to expect. Here are some frequently asked questions that others have had that may just answer yours.
Should I talk with a bank before looking at homes?
In a word, YES! Being pre-qualified for a mortgage, and knowing exactly what you can afford and can get a mortgage, will help you stick to your budget and find the home. This is especially true if you are a first time home buyer. A bank or mortgage company will have a better idea of programs available for you and help you get the most for your money.
Should I buy?
This is a great question and it will really depend on a lot of factors. Buying a home is the American dream, and is a good investment for anyone. However, some situations may mean that you would be better off renting. Common wisdom is that if you aren’t planning on staying in the property for at least 5 years, rent. That said, the Denver rental market is REALLY tight right now so you may have a hard time finding the home of your dreams on a rental basis.
I own a home, should I buy another before selling my current home?
Can you afford two mortgage payments? Yes, buying before you sell means you know you have a home waiting, or that you can move in so that you can show your current home empty or staged differently. Yes, you can also sign the contract for the new home with a contingency, meaning the sale of the new home is dependent on the sale of the old, but that has risks as well. The seller of the new home can still sell to someone else if they come with a better offer with no contingencies.
Do I really need a Realtor when buying a home?
You absolutely need a Realtor when buying a home. Whether you are working with your own agent or with the listing agent, there are just some things that can fall through the cracks if you are not very careful.
Additionally, there is no reason not to have representation. In most states (Colorado follows this practice) the Realtor expenses are paid by the seller who is under contract with the Realtor for their listing. There are no out of pocket Realtor expenses for most buyers agents (but check before you make a commitment).
How much should I offer the sellers?
This is a great question and one that your Realtor should be able to help you determine. He or she will know things like how long it has been on the market or if it’s priced wrong. Additionally they will know if you should be offering above the asking price for a home. With the tight market, many times a full price offer won’t get you your dream home, there will be negotiating involved and you may need to offer above list.
If you are looking for a great local Realtor who has the pulse of the market, give Tena D a call today! There are no costs for her buyer services and she is knowledgable and experienced in the Denver real estate market 303-452-5853.