The Ultimate Guide to Buying a Home in the Denver Metro Area in 2016

Buying a new home is an exciting and complex process for first-time buyers and even experienced buyers. Due to the lack of homes on the market and Denver's fast appreciating marketing it is more important now than ever that buyers have a game plan in place to make the home buying process enjoyable and a success. 

Step 1  Find an Experienced Realtor

Work with an agent who has a proven track record and answers his/her phone when you need them.  Getting buyers under contract is more challenging now that it has ever been. Some agents are not thinking about their client’s best interests.  I have had agents sent me offers on my listings waving inspection and financing contingencies and I wonder if the buyers truly understand what they are agreeing to. 

To find a good broker ask close friends who recently purchased a home for a referral, I would even recommend interviewing a couple brokers. The Colorado Real Estate is hot right now make sure the broker you would like to work with has time for you and can work with your schedule.    

Check out Barry's Happy Client Testimonials on Zillow

Step 2  Secure financing 

Making sure you are qualified to purchase a home not only saves time but could also be the difference between winning a bidding war and not winning a bidding war. There are so many options out there for home buyers today make sure you review all of your options with qualified lender, see the contact infor below for my preferred lender. 

Phone: 303.800.4595

Step 3  Market education day 

Whether you are looking for a Mid-century Modern in Harvey Park or Arapahoe Acres, a Modern duplex in Central Denver, an updated Bungalow /Victorian or a more traditional home in the suburbs I recommend asking your Realtor what are other areas of town you should consider.  Make sure you communicate your future plans with your Realtor, do you plan to raise a family in this home? Is this a 5 or 10 year home? The answers to these questions will make the world of difference when deciding on a neighborhood. 

Here are some general considerations when evaluating a neighborhood:

• Transportation convenience: What's the proximity of major streets and highway access?  What about public transportation?
• Errand convenience:  Think of basic services you use often. Where is the nearest post office, grocery, and dry cleaners?                  
• Leisure:  Are there parks nearby (a big consideration in metro Denver because we have the largest park system in the country)? Are there good restaurants in the area?
• Schools & Safety:  Even if you don't have kids, the quality of local schools is a good barometer for the health of  the neighborhood.  Is the neighborhood generally considered safe (look at demographics)?  Will you feel at ease taking a walk?
• Popularity:  Look for areas where homes sell quickly (3 months or less).  If homes are selling slowly (6 months or more), this might not be your best choice. Although each Denver neighborhood is different.  

Step 4  Finding your perfect home 

Finding the perfect home can be challenging in this market, I take pride in finding my buyers the right home that fits their needs and will make a great investment.  I think it is very important buyers consisted there future home as an investment not only will this help them build wealth but will ensure they can sale when the market is not as hot as it is now.

Step 5  Write an offer to win a bidding war  

It is possible to find a good home and not be in a bidding war situation. However, limited inventory and strong demand for housing increase the chances that one will be in a bidding war when the time comes to write an offer. 

I do the following to get my buyers under contract 

1. Provide proof if earnest money
2. Provide a lender letter
3. Provide a love letter communicating to the seller why the buyer is a perfect match for the home.
4. Execute Real Estate Jedi move (this is only available to Barry’s clients)
5. Execute Real Estate Ninja warrior move (this is only available to Barry’s clients)
6. Execute Real Estate Ninja Rock Star move (this is only available to Barry’s clients)

Step 6  Find reputable home inspector and negotiate inspection items  

Hiring an experienced inspector can save a buyer thousands of dollars in future repairs, by identifying any areas of possible concerns that aren't immediately visible to the naked eye. Some of the major defects my inspectors have found which saved my buyers thousands of dollars include: 

1. broken sewer line
2. crack in furnace 
3. dead trees
4. 20 year hot water heater 
5. and cracks in the foundation just to name a few. 

Step 7 Getting the home appraised 

When a purchaser   is securing a new loan to buy a home, the new lender will need an independent, licensed appraisal to determine fair   market value of the Seller’s property. The appraiser researches similar properties that have sold in the past 180 days and are similar in size, age, construction and amenities.  An  appraiser sets an appointment to see the  property  and takes about  30 minutes  to  an hour of your  time  in  viewing  the  property for  appraisal. He or she measures your home, draws a representative floor plan, and photographs the house inside and out and notes property condition, specific improvements and amenities. Help  the  appraiser as  well  as  yourself   by providing  a list of improvements/remodeling projects  completed since  your  purchase  with  an approximate dollar amount  for  each.  Remember that remodeling projects rarely bring a full return on investment however the list will ensure the appraiser is aware of improvements made to the property.  Appraisers provide a typed report to the Purchaser’s lender within a few days.

You are notified should the lender require repairs prior to making a loan on the home? If specified in the contract repairs must be made and the appraiser will return to review required repairs and a reinsertion fee. 

Step 8  Final loan approval

All reports and documentations goes back to the underwriter of the mortage lender for a final sign off.  Once the final approval is received from underwriting, your Processor will review any additional items required for signing your final loan documents. These documents are sent to title/escrow office. 

Step 9  Walk through and Closing

Before closing we will walk through the property to make sure the home is in good condition and if any repairs were negotiated in the inspection process confirm the repairs are completed.

Go to closing which typically takes place at the title company; buyer will bring the necessary cash to close in the form of cashier’s check. Bring two forms of ID, and the rep will review all of the necessary documents for closing.

Then the buyer will get keys to their new home

Step 10  Moving day! 

Once you have located your new home, now comes the fun part - moving. Whether you are moving two streets over from your current home, from one side of town to the other side, or clear across the country, you have two options for moving - using professional movers or doing it yourself.

 There are pros and cons of both choices, so first sit down and decide how much you can afford to spend, and what option you feel works best for you. Let's look at what those differences are:

Professional Movers 

Professional movers come in many different forms. There are those on the less expensive end of the system, consisting of two to four people with a truck, all the way up to the executive level of packing and using a huge semi-truck to delivery your belongings. Usually, what you pay for is what you get.

• Most moving companies provide sturdy, reinforced boxes. The cost of these boxes is included in the amount quoted for the move.
• Professional movers use padded blankets to protect your furniture. These blankets are secured with rope or bungee cords to ensure no damage occurs.
• If you are doing the packing, make sure you mark each box. Point out to the movers which boxes contain fragile items.
• In most cases when using professional movers, you don't have to worry about the weight of the boxes for they know how much to pack and how to use dollies. 
• If working with professional movers, one semi-truck may contain several households so your belongings may not be the first on their route. Talk to the movers and determine when they are targeting arrival at your new home. Keep in mind that traffic, construction, weather, can all be factors in delay. For this reason, it's important to have phone numbers and e-mail addresses of the movers and the main office should your belongings not arrive on time. Also, make sure they have phone numbers where you can be reached as well. If the schedule shows arrival for 5:00 p.m., have someone at the house from 4:00 p.m. until the truck arrives.

Self-Moving

• By visiting your local grocery or business dumpster, you can find all the boxes you need. Many businesses throw out boxes in all sizes, which are also industrial strength. Cost - nothing.
• You can use old blankets, pillows, or towels. Some rental companies will rent padded blankets to you for a small fee. Just be sure that you wrap breakable items and don't stack boxes of breakables on top of each other.
• Mark all boxes. Separate your breakable items . Consider moving those in your car instead of loading them into the moving truck with your other items.
• When packing your boxes, keep the weight of the box reasonable. If you can't pick it up, it's too heavy.