Tag Archives: Denver Realtors

Denver Leads as a Hottest Home Market 

Making the life-changing transition from renting to owning follows major research and decision-making. One of those choices is your home buying location – and what better city to buy a home than Denver, which was ranked the no. 1 hottest real estate market for 2016?

The top home markets across the nation were rated based on Zillow’s Home Value Index (ZHVI) Forecast, recent income growth and low unemployment rates. Denver took the top spot with 5 percent forecasted home value growth throughout the next year and a low 3.1 percent unemployment rate across the entire metro area.

The hottest submarkets include Delmar Parkway, Highline Villages and Centretech in Aurora with Ruby Hill placing high among neighborhoods in the entire metro.

Before packing your bags and relocating to Denver, future home buyers need to crunch the numbers and learn about their buying power. Developing a housing budget helps determine whether it’s best to rent or buy a home in Denver, assisted by the breakeven horizon – or the number of years it takes for buying to become cheaper than renting the same home.

Cost of buying in Denver

The median home value in Denver is $343,800, an impressive 15.3 percent rise from one year ago. If a homebuyer were to put 20 percent down on a median-priced home in Denver, or $68,760, assuming a 30-year fixed loan at a 3.508 percent interest rate, they would pay $1,647 per month. The total mortgage payment includes principal and interest ($1,236), insurance ($67) and taxes ($377).

Cost of renting in Denver

Assuming you’re looking to rent an apartment in Denver at a median value, you would pay $1,959 per month. In the wider Denver metro, renters pay a median $1,977 per month. Compared to the national median of $1,388 per month, rental rates in Denver are costlier, but keep in mind Denver is a buzzing city and U.S. medians include rates from towns across the entire country.

When does buying outpace renting?

While the example mortgage payment of $1,647 per month is lower than the median city rent rate of $1,959 per month, it is still cheaper to rent first when accounting for the down payment of $68,760. In addition, the cost of buying goes beyond monthly mortgage rates to encompass closing costs and the general fees of homeownership, like maintenance.

In Denver, the breakeven horizon as of the last quarter of 2015 was 1.7 years, a 0.09 rise from the year prior. So, if you’re planning to stay in a home longer than 1.7 years it’s more cost-effective to buy.

Overall, if you have the recommended 20 percent down payment ready, buying a home in Denver now could be a great investment opportunity. However, this is assuming you perform the proper home buyer due diligence.

Keep in mind, you typically don’t need 20 percent upfront to buy a home (depending on your lender pre-qualifications), but a heftier down payment ensures a lower interest rate. If you aren’t quite financially prepared to buy, renting below budget to save before those 1.7 years are up is your best bet in the meantime.

By Jennifer Riner, Zillow

 

Denver Real Estate Agents        Colorado Rentals 

Boulder Colorado Housing Helpers

When searching for homes in Colorado, keep your eye on the PRIZE!

If you’re looking to buy a home in Colorado, you’ve likely already realized that the internet is drenched in an overwhelming amount of tips, checklists, real estate websites, and forums full of advice for your situation. For better or worse, this is a recipe for information overload.

This post will attempt to condense, compact, and configure the best advice and present it in a simple format for your sanity.

As it goes with math, information is always more enjoyable if placed within a wider context. On a similar vein, then, this information will be presented in the context of home buying in Colorado.

But first things first. How on earth does one even start the home buying process? Here’s a tip- contact one of our acclaimed Colorado realtors at Housing Helpers. Our incredible team of realtors would be happy to guide you along this exciting journey.

And whatever you do, don’t lose sight of the PRIZE (Perspective, Research, Imagination, Zzz, and Enjoy).

  • Perspective: Know what you want, but prepare to be flexible. Choosing a house, like everything in life, requires a bit of compromise and a lot of vision.   The real estate market is always in flux.  What may have been a “buyers market” last year is in fact a “sellers market” now in many parts of Colorado.  Our Colorado Realtors can give you the background on a neighborhood by neighborhood basis to help you gain a lot of perspective.
  • Research: Don’t step into this life-changing process blindly. Look up specific features that you want in a home and know what your deal-breakers are. Try to narrow it down to a short list of less than ten key features.  Moreover, get to know your realtor and let them get to know you. Our Colorado real estate agents take the time to learn your preferences so that they can assist you with finding the best possible property for you.
  • Imagination: Don’t forget the potential of a home. The color of a wall or the hideous crown molding can always be changed, so try to imagine the raw version of the places you view. Homes with “good bones” can yield a lot of potential through remodeling, painting, and even a simple thorough cleaning.  But you can’t change the location of a home, so if when you find a home with good bones in the neighborhood you want, take a moment to think about the possibilities.  We have seen some amazing transformations on relatively small budgets.  A little bit of new paint can go a long way!
  • Zzzz: The early bird gets the worm! So even if you’re in the early stages of contemplating a house, start getting in contact with mortgage lenders to get pre-qualified for financing. If your not sure where to start, contact Housing Helpers now and we’ll walk you through it.  Being prepared to make an offer on a home in a sellers market is especially important.  There may be five other buyers lined up to submit offers on the same house that you want.  Sometimes the difference in whose offer will get accepted is based on who is pre-qualified to obtain financing for the home.   Be prepared, be ready to act quickly, and you’ll sleep better knowing that you are ready!
  • Enjoy: Once you’ve settled with a realtor that you trust, relax and take in the scenery that house-hunting has to offer. Consider the possibilities and look forward to what opportunities await you as a homeowner! Perhaps you’ll spruce it up, or simply unwind in the comfort of your own home and enjoy the benefits that owning a home in Colorado has to offer.  Maybe someday you’ll even choose to rent it out (another great thing Housing Helpers can help with), and start to build your investment property empire!

Searching for homes in Colorado can be a daunting task with distractions from every angle as friends and coworkers will be more than willing to share their “expert” advice.  We have all heard the “fish stories” from our friends and relatives of the incredible real estate deal on that perfect home in that perfect neighborhood, which sold for thousands below asking price. Try not to let this chatter interfere with your goals. It is important to focus on what is important to you. And remember, keep your eyes on the PRIZE!

We value the trust that our customers place in us each and every day.  If you are looking for honest advice on purchasing a home, selling a home, or simply have questions about the real estate market, we would be honored to talk with you.  Contact our Boulder Realtors and Denver Realtors today for a free consultation.

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