Ready to Buy? Top Ten Tips for Preparing to Purchase (Part 2)

Thank you for joining me for the second half of our series featuring my

Top Ten Tips for Preparing to Purchase. Read on for tips 6-10.

6. Think long term.

If you are planning to move in less than three years, owning right now may not be for you. If you are staying put for the foreseeable future and ready to commit to a long term investment, go for it. Unless you are operating as a flipper and planning for a quick turnaround, the transaction costs of buying and selling a property may not be worth a short time in a purchased property, even in a market on the upswing. Not sure what to do next? Your timeline and any future moves are valid points of discussion with your Realtor.

7.Good schools will always make the grade.

Maybe you are an Empty Nester, or maybe you are a swingin’ single. Maybe your kids come with collars and fur. Or maybe you’ve got 3 bundles of joy and another one on the way. Regardless of your status as a parent, buying your property in a good school district just makes sense. Property will hold its value better in a good school district, and when it is time to sell, your choice will pay off.

8. Plan your bidding strategy in advance – and be informed.

Information = Power = Money in the bidding game. If homes in your target neighborhood and similar to your property of interest (ie. Comps) are selling below market value, offer accordingly. If the home you desire is listed below what the market will bear, be aware of it, and come in with a strong offer. Making a serious Real Estate offer is not about what you feel like spending or your “gut” on what to offer. Do your research and listen to your Realtor.

9. Hire an Experienced Home Inspector.

How do you feel about surprises? The prize at the bottom of the cereal box, a bigger tax return than you expected, the ultimate Happy Birthday from a crowd of friends and family. Surprises can be swell! Surprises in a new-to-you home? Not so much. You wouldn’t buy a car without a test drive, hire a professional Home Inspector to make sure the plumbing, electric, etc. are in order before you finalize the purchase of what is probably your biggest investment. Just do it.

10. Seek help. Professional help.

There is a lot you can do online to aid in the search for your home, and I encourage you to be an active participant in the process. Market trends? You can seek out current statistics. Drive-bys? You can do that, too. Go for it! When it comes to submitting your offer, negotiating your contract and weeding through any issues that arise during your personal Real Estate transaction, you want an experienced professional by your side. Put the odds in your favor and don’t go it alone. If you enter a transaction without professional counsel, you may end up stuck – and sorry. Chances are though, you’ll never regret working with an experienced Real Estate professional.Plan your bidding strategy in advance – and be informed.

Are you ready to Buy? Ready to Sell? Ready to chat about your options in the Denver Real Estate Market? Drop me a line – I’m happy to help in any way I can.

Jack Meyers
jackestate@aol.com
303.263.3050
Twitter: @jackestate 

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Ready to Buy? Top Ten Tips for Preparing to Purchase (Part 1)

So you think you’re ready to buy a house? Fantastic! This is an exciting time, and there are things you can do to prepare for your purchase, and to make sure buying a home in the near future is in your very best interest. Read on for my Top 10 Tips for prospective buyers.

1. Know your Credit Score

If you have no idea what your credit score is, you aren’t ready to buy a house today. A few months before you begin your search, obtain a copy of your credit score (for both of you if you are part of a couple.) Make sure your credit report is accurate, fix any errors you find, and if there are issues, talk to a mortgage or credit professional about what you can do to fix or improve questionable items. Unless you are able to purchase a home in cash, you’ll most likely need a mortgage on your new home. In order to qualify, and to secure the best interest rate possible, you’ll want your credit to be the best it can be.

2. Consider your Down Payment

Shop around to determine what your list of potential lenders requires in the form of a down payment. Not all lenders require a full 20% down. Depending on your credit score, income and other factors, you may be able to secure a mortgage with a smaller down payment.

3. Understand Mortgage Terms

Before you prepare to make one of your biggest financial investments, educate yourself on mortgage terms such as points, variable and fixed interest rates, debt to income ration and any other new vocabulary a mortgage professional may throw your way.

4. Know How Much House you can Afford

Before you fall in love with the country manner or city highrise of your dreams, know what you can really afford to pay for a home. Most Mortgage Calculators base “how much home you can afford” on the assumption that you are safe to spend 30% of your income on housing expenses. That may be true for a two income household with no children, but once you add kids, student loans, travel plans or the cost of a lengthy commute into the mix, 30% may not be realistic. You can calculate how much house you can afford here, but remember that these calculations are likely based on the notion that you are safe to spend 30% of your income on housing. You should spend at least as much time understanding how your finances will work once you own a home as you do shopping for one – and you’ll enjoy your home more in the long run when you ensure on the front end that you are investing in a home you can truly afford.

5. Get Pre-Approved for a Mortgage – BEFORE you Begin the House Hunt

Before you start shopping and fall in love with a home, you need to know how much mortgage you qualify for. Don’t confuse “Pre-Approval” for a mortgage with “Pre-Qualification.” Pre-Qualification means the lender has given your income and credit a quick glance and believes you are likely to qualify for a home loan. Pre-Approval is the official stamp on your application that says precisely how much mortgage you qualify for. If you want Sellers to take your offer seriously, you’ll need to send your Pre-Approval Letter along with your offer. Particularly in a Seller’s market, an offer without a Pre-Approval Letter lacks credibility and may not be taken seriously.

 

Stay tuned for 5 more Top Tips for Buyers, and if you are ready to make a move in the Denver-area Real Estate market, give me a buzz.

Jack Meyers
jackestate@aol.com
303.263.3050
Twitter: @jackestate 

HOT – HOT – HOT! Record Setting December

According to REcolorado (formerly Metrolist),

the Metro Denver Real Estate market did not cool off over the holiday season. 

It’s been a bountiful season for the local Real Estate industry, and a delight for Sellers. No quiet snowscape here – Sellers Sold, Buyers Bought, and it was a very Merry Christmas indeed for Denver area Realtors.

Single-family sales rose 4 percent in December from November to 3,983 homes. The average sales price rose 3 percent to $339,636, a new record, and the median sales price was up 2 percent to $285,250 from November. [The Denver Post Business, 1.7.2015]

Visions of sugar plums were dancing in the heads of Sellers this past month, and as winter melts into spring (it’s happened every year since I’ve lived in Colorado, anyway), we can likely expect the positive trend to continue.

“I anticipate buyers will see more selection in inventory as the first quarter gets into full swing,” says REcolorado Chairman Mark Trenka.

Good times for Sellers, more inventory likely on the way for Buyers. This is a great time to list and a great time to start looking. I’d be happy to guide you through the buying or selling process, or help you take a closer look at all of your options in the Denver Metro Real Estate market.

Happy New Year!

Jack Meyers
jackestate@aol.com
303.263.3050
Twitter: @jackestate