Buying a home can be complex and confusing, especially if it’s your first time. If you’re feeling overwhelmed, know you’re not alone! The questions swirling around in your mind are likely similar to questions I’ve helped previous clients solve. This article will answer the questions I get asked the most about buying a home in NoCo, and some you might not have thought about yet!
Q: How do I know the property value will increase in Northern Colorado?
Although there are no guarantees, you can look for trends and historical data to get an idea of future performance. In Northern Colorado, property values are expected to continue to increase. Colorado is the place to be! As the population grows, demand for housing will hike up property values. However, I always tell my clients not to go on hearsay. If the area is growing and changing, look at projects that have gone through the planning, development, and funding stages.
Q: Should I put a deadline on an offer?
The answer to this question depends on the specific situation of the home you are bidding on. Most sellers want to give their homes total market exposure in more competitive neighborhoods to get the highest price possible. That means sellers tend to have their own deadline for offers. If a seller wants a quick sale, moving quickly with an offer and having a deadline for a response can be a helpful strategy.
If you set a deadline, give one that allows enough time for the seller to respond but not long enough for another offer to swoop in. I have found that 8-12 working hours is often a reasonable period for a deadline. Frequently, this strategy could avoid a bidding war. However, you’ll have to make it worth the seller’s while to quickly take the home off the market. Favorable contract terms or an offer above the asking price should do the trick, but we’re seeing all sorts of incentives in this hot market. When you get in the position to make an offer, I’ll help you write a deal that sellers can’t refuse.
Q: Is it worth it to find something faster when interest rates are low?
No! Don’t let interest rates dictate your timeframe for buying a home. In Northern Colorado, we are still in a period of historically low-interest rates. A slight increase in your interest rate will not make the home you want unaffordable. Buy and sell when the time is right for you. Speak with an expert about which month is best, but always act based on your own timeline and schedule. One thing is sure—there will always be homes to buy. Additionally, when interest rates go up, it often leads to a slight cooling of prices.
Q: How do I get a good deal when buying a home in NoCo?
The only way to ensure you are getting a good deal is to look at the neighborhood you are buying in and compare your home to what has sold over the last six months to a year. There will be a range in price depending on the location. For example, a basement unit will sell for less, and a newly renovated unit will sell for more. Compare similar homes, talk to neighbors, and look at market trends. Above all, remember that just because something is “cheap” doesn’t mean it’s a good deal. Do your homework, and trust your agent’s advice.
Q: If the house I want is $20k over my price range, does that mean I can’t afford it?
Maybe, maybe not. I tell my clients to focus on what their monthly payments would be, not just on the purchase price. That big, scary number might actually be affordable when you break it down by month. In other words, determine the price you want to pay by how much you can afford per month, not just the overall asking price. That extra $20,000 price tag equals an additional $100 or so per month. Can you handle the extra cost without making significant changes in your lifestyle?
Keep in mind that if you buy something not as nice for less money. You might spend that extra money on repairs anyway. You’ll need to weigh the pros and cons of each situation when determining what is affordable to you.
Next week I’ll send you one of my favorite articles— Is the “Paradox of Choice” Derailing Your Home Search? You don’t want to miss it! I’ll tell you secrets that can help you focus on making a decision without being overwhelmed by too many choices. And let me know if you have any FAQs I should add about buying a home in NoCo!
I'm Lauren Haug! I'm a teacher-turned-real estate agent, and I teach people how to build wealth through real estate in Northern Colorado.
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