What You Need To Know As A First Time Home Buyer Denver
If you’re considering buying a home in the Centennial State, we’re here for you! Today we’re outlining helpful information to get you started on researching and understanding home buying in Denver.
All of us at BWBacon understand that being a first time home buyer in Denver can be quite a challenge. It’s usually overwhelming and intimidating. But with the right advice and tips, you can sail smoothly through the process.
Whatever type of home you’re looking for in the Denver market, it’s important to have a Realtor with experience on your side. Why leave anything to chance when you can be confident about your transaction every step of the way? We recommend having a professional, qualified broker representing your interests and your needs at every turn, and that is why we have partnered with Heather Bacon of Re/Max of Cherry Creek. Heather has been selling Real Estate in the Denver metro area for almost 25 years and has a vast knowledge of our market, she is our partner and go-to for everything real estate.
Overview Of The Denver Housing Market
Over the last ten years, there has been a noticeable surge in our hot Denver market. Overall, buyer demand is remaining active in our market, which is creating more competition for those looking to purchase real estate. From our partners at Re/Max Cherry Creek, there are 4,941 active listings in the Denver area in February with homes staying on the market for an average of 45 days. With prices and number of listings dropping from last month, there is no better time than now to consider starting your search.
In the Denver market, “affordability is key to price growth projections,” Lawrence Yun, National Association of Realtors’ chief economist, told The Denver Post. Formerly hot markets like Denver, Austin, Texas, and Salt Lake City will all see slowdowns, he adds: “Going forward they will lose some momentum, given their strong performance in the past.”
Finding A Home: Things To Consider
Whether a 1st time home buyer or coming to our market having purchased and sold multiple homes, there are some hacks and tips to know about our Denver market before you head out and start shopping.
The Process
- Define your goals, research your options, make your plans
- Get pre-approved for a loan
- Set your budget
- View homes
- Make an offer and negotiate with the seller
- Review Title Commitment
- Schedule a Home Inspection and Appraisal
- Secure your financing
- Close the deal
Neighborhoods
Denver is a growing city with restaurants, trails, bike paths and mountains for days. Do you want to be on the light rail or sit in your backyard and have a view of the mountains? It's important to note that in Denver, the suburbs are truly entwined with the city. All of the neighborhoods have housing and city features, so it genuinely depends on your work commute and preference.
Define your goals and understand your expectations- neighborhoods closer to the city, while more convenient, typically have a higher price tag.
Don’t Skimp Or Try To Save! Get An Inspection!
A professional home inspection is crucial to the buying process. It will give you an evaluation of the overall condition of the home and items that need to be repaired and/or replaced. Once this is complete, you can request that the seller make the needed repairs/replacements in an Inspection Objection, purchase the property “as is”, or terminate the contract.
TIP: Radon Testing, Sewer Scopes and Roof Certifications are common for buyers to have performed on the home they are purchasing.
The Down Payment Myth
And when it comes to that down payment, don’t fret. There is a common myth that one needs a hefty sum of cash when purchasing a home in Denver, but that’s not always the case. We recommend looking into all your options before making a purchase. It has been said that if you can afford to rent, then you can afford to buy- so contact your lender.
Where To Look When Buying A Home In Denver
Likely, a main focus of your search will be where you want to reside, so we’ve compiled a more detailed picture of areas in and around Denver to get you started. There are plenty of great neighborhoods designed to meet your needs in the Denver area.
In the Denver metro area, the rate of home appreciation has ranked among the highest nationwide in the past several years, with eye-popping increases year over year. However, costs vary dramatically based on zip code, according to Megan Aller, Denver real estate statistician and account executive for First American Title.
In numbers crunched several months ago and reported by Westword, Aller discovered the following. We've broken her findings into Denver areas:
- Central and West Denver:
- Prices are generally high close to the urban center.
- Capitol Hill and RiNo sandwich Downtown and are full of charm and Denver culture.
- Edgewater, near Sloan's Lake and west of downtown, is a more quaint and affordable neighborhood that surrounds the city.
- North of Downtown:
- South of Denver county:
- If you want to be directly in the Denver Tech Center hub, check out Greenwood Village. It’s filled with plenty of amenities and puts you right in the center of the most innovative companies in the world.
- Cherry Hills Village, 80111, has the highest prices in the Denver metro area
- In Roxborough Park, Highlands Ranch and Littleton, 80225, price cuts were common over the last several months.
- East of Denver:
- In Gateway and Green Valley Ranch, zip code 80249, homes sold above list price, yet they were some of the most reasonable in the city
- Aurora offers some of the lowest prices, particularly in zip codes 80012, 80014, 80017 and 80247.
- The most affordable homes are generally east, northeast and north of the metro area: Northeast and east of the city, buyers can find houses “just under $300,000.”
- Take a look at an in-depth review of every Denver neighborhood, here.
When you’re buying a home in Denver, it’s essential to start with plenty of research. We hope that these starter tips can help you begin your exciting journey. Happy house hunting!
And if you have questions and want answers…Check out these additional resources or Call our Real Estate partner Heather Bacon
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Here at BWBacon Group, we know and live what you are experiencing as an employer or job seeker in Denver, Boulder, Dallas, San Francisco, New York City or any of the other cities we work in. We believe great recruiting starts and ends with understanding people.
If you have any questions about living, working or playing any of the areas we serve, please contact us. We are happy to help. Seize the day, every day, that’s what we say!