How Much Does Buying a House Really Cost

/

Down Payment

-It's a huge misconception that you need 20% down. Obviously there are advantages to a bigger DP like a lower payment or lower/no PMI, but the 3-10% range is much more common!

-Min of 3% with a conventional loan

-Min of 3.5% with FHA loan

-0% with VA loan


Closing Costs

-1-2% of purchase price + comprised of the below elements
-Setting up escrow account (pre-payment of 6-12 months of home owners insurance + taxes)
-Title fees (part of closing fee, loan insurance policy, deed + doc recording, etc)
-Loan fees (loan origination cost, credit check fee, appraisal, etc)


Inspection

-General inspection, $300-$500, depending on square footage
-Sewer Scope or Radon add-on, $125-$150
-Other specialty inspections available on case by case basis (structural, mold, etc)


Misc Costs

-Movers
-Immediate renovations/updates
-New furniture
-Emergency fund. Being a homeowner means being responsible if anything needs repair or replacement. Would recommend at least about 5k (tip: buy a home warranty if you want to mitigate the risk of big surprise costs)

Have questions or ready to get started? Send me a message!

Denver Neighborhoods You Should Know About

/

One of my FAQs during new buyer meetings is for recommendations on additional neighborhoods the buyer should consider in their search...or if there are areas they should know about that have good potential for upcoming growth + appreciation.

Everyone always thinks of the well known neighborhoods, but there are so many other great options that people may not even know about that I love to add on or recommend...and most of them come with friendlier price tags and good potential for growth.

If you like the below neighborhoods, check out these ones too!

Highlands → Edgewater

Berkeley → Regis

Sunnyside → Chaffee Park

Sloans Lake → West Colfax

West Wash Park → Speer + Baker

East Wash Park → Cory-Merrill

Platt Park → Englewood

RiNo → Whittier + Cole

Save this post for your future house hunt, or send me a message if you have q's or are ready to get started.

April 2024 Market Report

/

Spring bulbs have made their colorful return, and trees across Denver are in full bloom, says the Denver Metro Association of Realtors’ Market Trends Committee.

Optimism in the Denver real estate market is as strong as ever due to resilient buyers who continue to place properties under contract quickly when they find the right home, at the right price.

The most apparent change in the market last month was the rise in inventory. While buyers continue to grapple with financing pressures, they finally have more choice thanks to sellers who are back in the market listing their properties. Active listings climbed 19.51 percent month-over-month and 51.32 percent year-over-year to 6,990 listings. This is a notable year-to-date increase of 51.30 percent from 2023 and a 118.16 percent increase from 2022. New listings increased 21.22 percent month-over-month and 25.42 percent year-over-year to 5,980 listings. Pending sales increased marginally with 4,468 properties, an 8.32 percent increase month-over-month and a 5.53 percent increase year-over-year. The most significant metric was closed sale data with 3,739 properties closed, a mere 1.66 percent increase month-over-month and a 4.79 decline year-over-year. While this data point is a lagging indicator of pending sale activity from March, it showcases that buyers are not absorbing the inventory as quickly as they once were.

The increase in inventory is a very welcome turn of events for buyers who have been dealing with historically low inventory for years. Additionally, it's a nice surprise as many sellers have been hesitant to list their homes in favor of maintaining their low two to five percent interest rates. The increase of active listings to 19.51 percent represents a healthy increase as the historical average increase in listings from March to April is 10.32 percent.

As inventory increased, buyers eagerly purchased new properties as days in the MLS dropped 27.27 percent to eight days. The median price rose 1.27 percent to $602,550 while the average price hit a new record of $727,700.

Detached and attached properties experienced a similar increase of over 19 percent for active listings month-over-month: 19.65 for detached and 19.21 percent for attached. Of particular note, active listings for attached properties jumped 66.62 percent year-over-year. New listings in the detached market segment rose 25.46 month-over-month, while the attached segment rose a mere 11.04 percent. Pending sales for detached homes jumped 11.14 percent month-over-month, whereas the attached market saw a minimal rise of 0.37 percent. Attached property inventory is clearly outpacing the detached market, which presents further opportunities for buyers interested in attached condos and townhomes.

Saying that, detached homes are still considered a seller's market with less than three months of inventory. The months of inventory then jump to 4.32 months of inventory when we look at properties priced at $2 million and over. On the other side of the coin, attached homes priced below $750,000 remain a buyer's market. However, properties priced from $750,000 to $2 million are in more of a balanced market with three to six months of inventory. For attached properties priced at $2+ million the month's of inventory substantially increases to 7.75.

Inventory will continue to climb through May, so pricing conservatively has never been more important. Buyers on the hunt for their next property will likely choose the one priced at fair market value, with very little work needed. This is not the time to push the price or to place a home on the market to see if you can obtain the price you hope to achieve.

Read below for a price range breakdown for properties sold between $750,000 and $999,999 from Market Trends Committee Member and West + Main Homes Agent, Nick DiPasquale.

Learn more about the market from the Denver Metro Association of Realtors.

March 2024 Market Update

/

It was an eventful month with the announcement of the National Association of Realtors® settlement of the on-going litigation in the Sitzer-Burnett case, says the Denver Metro Association of Realtors’ Market Trends Committee.

As we navigate potential changes to our real estate market together, the Denver Metro Association of Realtors® will continue to communicate with its members as more information becomes available.

While we as Realtors® wait for additional updates, the Denver real estate market didn't skip a beat this month as we head into the spring selling season. New listings jumped 16.27 percent month-over-month to 4,932 properties which was a slight dip of 3.28 percent from this time last year. Active listings at month's end also increased by 6.13 percent, while the year-over-year numbers increased by 29.52 percent showcasing that inventory is slowly building. Of note, the active listings at month's end of 5,849 were 1.26 percent above the year-to-date number of a pre-pandemic March 2020.

The median close price rose 3.48 percent to $595,000 as we continue the ascent in prices that historically reach their peak in June and take a downward trajectory through December as shown on page nine. Notably, the price increases both month-over-month and year-over-year represent a more normalized price increase versus the double-digit Covid increases we saw. The median days in MLS fell 52.17 percent from 23 days in February to 11 days. Both the increase in median closed price and days in MLS showcase that buyers are out there and eager for the new inventory as they placed properties under contract twice as quickly as they did in February.

Pending sales increased 31.94 percent to 4,317 properties, a 7.47 percent gain year-over-year. However, closed sales only increased 13.40 percent to 3,512, a fall of 13.37 percent from the 4,054 closed sales from March of last year. Saying that, closed transactions are a lagging indicator, meaning that most closed transactions in March were likely written in February. Given the rise in pending transactions, I expect to see a jump in closings reported next month.

The most active price segment for detached properties continued to be the $500,000 to $749,999 segment with 1.277 closed sales and 1,573 active listings. The most active price segment for attached properties continued to be the $300.000 to $499 999 with 364 closed sales and 765 active listings.

As we head into the warmer months, sellers have resigned themselves to the elevated interest rates and have begun to take the golden handcuffs off. In many cases, these sellers have chosen to downsize. The goal for these sellers is to sell their home and use the equity in their home to either purchase the next with their current equity or to obtain a significantly smaller loan. Regardless of their plans, buyers are very happy to see additional inventory.

Learn more about the market from the Denver Metro Association of Realtors.

February 2024 Market Report

/

As the spring selling season kicks off, the question on everyone's mind is whether the luck of the Irish translates to the Denver real estate market, says the Denver Metro Association of Realtors’ Market Trends Committee.

Some buyers and sellers may appear lucky, but don't let appearances fool you. They had a strategy in place with their Realtor® to ensure the odds were in their favor.

Well-informed and educated sellers know interest rates have ticked up again; however, they also know that many buyers are experiencing spring fever and are sick of sitting on the fence watching home prices increase. So, savvy sellers got their property on the market and knew how to stand out. In fact, new listings increased 29.12 percent month-over-month and 22.63 percent year-over-year. But these sellers also knew they had more to compete with as active listings at month's end rose 13.14 percent to 5,511 homes, an astounding 45.87 percent gain year-over-year.

Serious buyers are discerning and know inventory is growing. Pending sales rose slightly by 12.70 percent month-over-month to 3,514, showcasing that buyers are taking their time to choose the right home for their needs. As a result, sellers who are winning in this market spent time making sure their homes are in show-ready condition. Clutter has been removed, HVAC systems have been serviced, windows have been washed and sewer lines have been cleaned. In short, if sellers executed their plan correctly, they experienced multiple offers and maximized their profit.

Buyers, on the other hand, have a different strategy. While some were swept into multiple offers on their dream home, others understood they may find gold at the end of the rainbow if they broadened their search parameters. These buyers understand that more inventory is coming to the market and that they will have options. They are also aware that they can negotiate on price and terms up-front, as well as negotiate at inspection ... and negotiate is what they are doing. Difficult inspections have been on the rise over the last few months. If buyers feel they are paying top dollar due to increasing mortgage rates, they want their new home to be in move-in-ready condition and are making sure the seller handles deferred maintenance before closing.

Conscious buyers have another new strategy in their playbook. Home insurance availability has become a serious issue across the country for homeowners, Denver included. As such, buyers are considering home insurance concerns before submitting an offer. They are reaching out to their insurance providers to verify they can obtain coverage in their desired area of town. They are then obtaining a CLUE (Comprehensive Loss Underwriting Exchange) Report, which details past claims and uncovers potential hurdles before submitting an offer to help facilitate a smooth transaction. This is invaluable information as some insurance providers are declining coverage, even in Metro Denver, which can easily derail a transaction.

The spring season is heating up, and the best way to find your treasure is through thoughtful strategy. Prepared sellers can curb a second round of negotiations with buyers at inspection, while strategic buyers know what they want before shopping and the options available to them.

Learn more about the market from the Denver Metro Association of Realtors.