You’re excited! You and your family have saved your money and are ready to buy a home. No problem right? Unfortunately with Colorado’s current housing shortage, your dreams of home ownership might have hit a speed bump. Viewing this experience just like any good adventure, with both ups and downs, will help you survive and flourish in the current Denver Housing Market. Here are 5 tips to help you find a home in a HOT real estate market:
1. Get Informed. As with any big decision, knowing your options is essential. The same is true with home ownership. Become well versed in which loan is right for your goals. How large of a house payment can your budget afford? Do you have enough for a down payment so that you aren’t paying P&I Insurance on your mortgage? In the end, what type of house payment will you be comfortable paying for the next 15 or 30 years.
2. Where do you really want to live? Sometimes assumptions can steer us in the wrong direction. By researching the areas in which you want to live, you will become acquainted with amenities, schools and other community features that best fit your lifestyle and the interests of your family. Effectively communicating this information with your home buying specialist is essential so that they are able to help you find your dream home and neighborhood. Effective communication will also make the best use of your time when searching for a home, helping you find your Colorado home even faster.
3. Sell the Home Owner’s With Your Excitement. You are excited about your new home, but there are several other offers for the same property. How can you stand out from all the others? Including personal letters and pictures of your family can create a connection between you and the seller. Explain how the home is perfect and how excited you are that your children’s schools are in close proximity. Describe how you have always wanted the workshop in the garage to work on your mountain bike, and that this home has the perfect space. Sellers love to know that their home is going to serve a purpose, will be taken care of and that more memories will be made there. Many offers have been won because of preparednessand connecting through a personalized letter.
4. Outline your Must Haves & Wants. By setting clear expectations you create the opportunity to succeed. Providing your real estate professional with specific requirements for your home, you enable them to better search and find your ideal house. If there are qualities you are willing to bend on, for example a carport verses a garage, or acreage versus a small lot size, it is equally important to advise your realtor of these preferences. This will save time and open up as many options to you and your family as possible when house searching.
5. Earnest Money Reality. Having a realistic conversation about the expected down payment on homes in your price range is essential. Because the earnest money check is cashed immediately, it is important to know what type of financial commitment is going to best fit to your budget. These funds instruct the sellers and their real estate agent, that you are serious about purchasing their home. These funds will be held with your contract until closing and then they will be applied to the closing costs for your home.
Buying a home is a great investment of time, energy and emotion. There are few other decisions that will have as large of an impact on your life. Going into the decision well informed, having researched the best location for you and your family will create a smooth process for everyone. Connecting with the seller’s of the home and communicating your wants and needs effectively with your realtor will ultimately bring you to successfully finding and purchasing your dream home. Finally, being well informed and realistic about your earnest money expectations will save you from disappointment, and keep the real estate cycle for your home purchase on time and without surprises. If you have additional questions or need some help, please feel free to contact us anytime to discuss your questions, concerns or needs. Trinity Team is happy to be a resource for all of your real estate questions.