Appraisal Gap Coverage

Appraisal gap coverage seems to be the theme of getting offers accepted in the 2021 Denver market. So what exactly is it, and why does it make an offer more appealing?

Right now about 85% of homes sell over list price with multiple offers. When a buyer offers over list, there is always a question of if the home will appraise at that price or not. An appraisal is an official valuation of the home and is required by the mortgage lender. A buyer is only able to get a loan for the appraised value that the appraiser determines.

With a financed offer, the appraisal is an important consideration to a seller because if a buyer offers over list, they want to ensure they will get all of their proceeds from that agreed upon purchase price, and not have to renegotiate or lower it if the appraisal comes up short.

Appraisal gap coverage can be written into an offer by a buyer and shifts the risk of a low appraisal from the seller to the buyer. It says 𝗶𝗳 the appraisal comes in lower than the purchase price, then the buyer will cover a set amount or the full amount of a 𝗽𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 gap between the appraised value and the purchase price in 𝗰𝗮𝘀𝗵 𝗮𝘁 𝗰𝗹𝗼𝘀𝗶𝗻𝗴. 

Say for example you have a house listed at 500k and the following offers:

• 525k w/ full 25k gap coverage

• 525k w/ partial (5/10/15/20k) gap coverage

• 525k w/ no gap coverage

Even w/ the same purchase price, the offers go from strongest at the top to least at the bottom in a seller’s eyes.

I’m the first to admit I don’t love gap coverage when representing buyers...but there are a few considerations to make:

• It may be necessary to be competitive and win a home

• Look at the long term investment/projected appreciation of the home + how long it would take to recoup that value

• It is a calculated risk + value isn’t black and white. Even when paying over list, if there is supporting data the home may appraise at the purchase price just fine, making the gap coverage a non-issue 

Sound like a lot? Buying + selling such a big investment definitely can be confusing...which is why you have someone help guide you through the process + your options! Questions? Send me a text or email!

Preparation is Key

It seems to happen fairly often - someone stumbles across a house that is so ✨AMAZING✨ it motivates them to jump into action. I get a text or a DM asking to go check it out. SUPER EXCITING - I love when people reach out wanting to buy a house!

But then the reality check of the Denver market sets in… 

The truth is by the time you stumble across that unicorn listing in your late-night Zillow browsing, handfuls of other buyers have already seen it…their agents have already scheduled showings…and they’re ready to pounce with their pre-approvals in hand + strategies made about the offers they will submit…if there aren’t already multiple offers on the table. You’re behind the curve…and sadly these scenarios almost never work out!

DENVER MOVES QUICK. If you want to successfully find a home with as little stress as possible, you need to be PREPARED so by the time that great house comes up, you're ready to make some moves. I equate Denver’s real estate market to a river with white water rapids - you can’t really dip your toes in and go for a leisurely swim…you’ve gotta have your gear ready, a plan in place, and a pretty good boat if you want to have an enjoyable experience! 

Here's what that looks like:

• MEET WITH A REALTOR SOONER THAN LATER. Get a realistic idea of the market, what the buying process looks like, get all your questions answered + put a plan in place. Get an MLS search set up so you're the first to know when new places list.

• GET FULLY PRE-APPROVED. Know what you can qualify for, how a comfortable monthly payment translates to a purchase price, and have a shiny official pre-approval letter in hand. Homes selling a decent amount over list price is the norm…that means the list price is often just the beginning, and you also have to factor in extra considerations like how much more you’d be willing to pay for the home, appraisal gap coverage + covering seller fees in order to be competitive…and understanding how all that affects your loan, down payment, and cash at closing.

Sound like a lot? It kind of is. And that’s why you have someone to guide you through the process. Have questions, or thinking about getting started…sooner or later…send me a text or email!

Buying in the Current Market - Aug 2021

2021 has been a challenge for home buyers, and anyone who tell you otherwise is prob lying 🙃...It has been a constant evolution of adjusting to new market norms + staying on top of current trends in order to advise clients on writing winning offers. If you’re thinking about getting started on the house hunt (which I still recommend vs waiting bc prices are only going ⬆️)...here a few tips:

SET REALISTIC EXPECTATIONS IN THE CURRENT MARKET • Year over year appreciation is up 15%. To put that simply, you can’t buy the same house as you could last year for the same price. Low interest rates do help with affordability, but get familiar with what inventory in your price range looks like NOW, not what it looked like in the summer, fall, or even winter of 2020.

BE WILLING TO SACRIFICE SOME WANTS + SEE THE POTENTIAL IN SPACES • Its better to start somewhere than wait forever for a perfect unicorn house. Do some deep digging into what your absolute NEEDS are, and let the long wish lists go. Be open to adding your own changes too - updating a bathroom or kitchen is a heck of a lot cheaper than paying tens of thousands over list price on a house. 

BE AGGRESSIVE FOR A HOME YOU REALLY WANT • Unfortunately you’re probably not going to feel like you’re getting a deal. You’re likely going to have to concede a lot to a seller + look at the long-term investment aspect of things. Stay within your comfort zone, but don’t have regrets about losing a great house over a couple thousand dollars.

LET GO OF THE BIDDING WAR HOMES • You know the ones...they look like they could have their own Pinterest page, hundreds of showings booked solid through the weekend, offers 100k+ over list price...Unless you HAVE.TO.HAVE.IT and are willing to overpay a bit + waive basically all of your buyer rights, most of the time it’s just not worth it.

KEEP A POSITIVE ATTITUDE • It is tough at times, can be so disappointing when a offers don’t get accepted, and overall it’s a very emotional process. But, with some perseverance, it always works out in the end!

Questions or want to get started? Send me a text or email!

Thinking About Selling Your Home? Aug 2021

SHORT VERSION • If you’re considering selling your home, there’s never been a better time + we NEED more inventory

LONG VERSION • In case you haven’t heard, the Denver real estate market is 🔥 and 2021 is off to a raging start. The main reasons...changing needs in where people call home + the space they need, low interest rates, and most importantly...extremely low inventory. Mix all that together with an early spring market with buyers coming out in force and it’s the perfect storm. The low inventory and high demand has created a ton of buyer competition, which mean multiple offers and homes selling for well over list price is the new norm.

If you already own a home, that’s great news as you’ve likely seen some great value increases recently...and if you’re considering selling your home, that’s fantastic news because there has probably never been a better time to capitalize on your investment. 

If you’ve been thinking about making a move, getting a bigger place or downsizing, or are just curious what your home is worth these days...let me know! Would be happy to run some numbers or share some stories about what I’ve been seeing in the market lately!

Buying a Home in a Tough Seller's Market

Well, secret’s out - Denver is a great place to live! Combine significant population growth in recent years, millennials entering the housing market, COVID making people realize home is more important than ever + historically low interest rates...and we’ve got lots of buyers with not enough houses to go around. Here are a few tips to consider to help you get under contract on a place you love:

GET A THOROUGH PRE-APPROVAL WITH A LOCAL LENDER • The solidity of your financing is going to be a huge consideration of sellers. Local lenders have the best reputation and listing agents also want someone they can contact directly (usually on weekends/evenings) to advocate for you, so availability is key

BE FLEXIBLE ON PRICING • It’s super common right now for homes to go under contract within just a few days, with multiple offers, for over list price. Focus your search about 10-30k under your max budget so you have some wiggle room if you need to be competitive

OFFER THE SELLER CONVENIENCE WITH TIMING • Be open to closing quick...or possibly offering the seller a post-closing occupancy agreement in case they want to stay in the home a little longer after closing 

ADD SOME COMPELLING TERMS TO YOUR OFFER • Limit post-inspection requests to major issues...give the seller reassurance you’ll cover all or part of an appraisal gap if there ends up being one...escalate your offer price if competing offers are on the table

GET A REALTOR WHO WILL WORK HARD FOR YOU • Setting you up on a home search and opening doors for showings are the bare minimum of what your agent should do for you. They should establish consistent communication with the listing agent on the home you’re interested in, gather info + give advice and strategy on crafting a winning offer, and be your #1 advocate conveying that you’re the best buyer for the home!

Have questions? Send me a text or email!

What to Do Now if You Want to Buy or Sell Soon

𝗜𝘀 𝗺𝗮𝗸𝗶𝗻𝗴 𝗮 𝗺𝗼𝘃𝗲 𝗼𝗻𝗲 𝗼𝗳 𝘆𝗼𝘂𝗿 𝗡𝗲𝘄 𝗬𝗲𝗮𝗿𝘀 𝗿𝗲𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝘀? Well, 2021 is just a few days away...so here are a few things you can do to make your goal a reality!

𝗕𝗨𝗬𝗘𝗥𝗦

𝗟𝗲𝗮𝗿𝗻 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 + 𝘁𝗵𝗲 𝗯𝘂𝘆𝗶𝗻𝗴 𝗽𝗿𝗼𝗰𝗲𝘀𝘀. Denver moves fast + is competitive. In order to set yourself up for success, you have to PREPARE + be ready to go when a home you love comes up. If you wait til after you find the perfect house, you’re already behind the game + another buyer will probably swoop on it before you can get things lined up! Let’s jump on Zoom call so I can walk you through the steps in the process + get you a buyers packet so you can be fully informed!

𝗙𝗶𝗴𝘂𝗿𝗲 𝗼𝘂𝘁 𝘆𝗼𝘂𝗿 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗼𝗽𝘁𝗶𝗼𝗻𝘀. You need to know what you qualify for so you can search in the right price range + you definitely can’t make offers until you’re fully pre-approved. If you do this early, a lender can advise if there’s any way you can improve your credit and let you know what you need to save.

𝗦𝗰𝗼𝗽𝗲 𝗼𝘂𝘁 𝗻𝗲𝗶𝗴𝗵𝗯𝗼𝗿𝗵𝗼𝗼𝗱𝘀. Browse online, but also drive around and get a feel for areas you like + may want to live in. This will help you narrow things down when you’re ready to start house-hunting! 

𝗦𝗘𝗟𝗟𝗘𝗥𝗦

𝗖𝗵𝗲𝗰𝗸 𝗼𝘂𝘁 𝘁𝗵𝗲 𝗻𝘂𝗺𝗯𝗲𝗿𝘀. Have a Realtor prep a CMA so you know what your home is worth (don’t trust online estimates!) and a Net Sheet to show you what your proceeds could be. If you’re planning to sell + buy, chat with a lender to see what your financing options are in regards to having a contingency, securing a bridge loan, or buying first then selling.

𝗚𝗲𝘁 𝗮 𝗷𝘂𝗺𝗽 𝗼𝗻 𝘀𝗽𝗿𝗶𝗻𝗴 𝗰𝗹𝗲𝗮𝗻𝗶𝗻𝗴: 𝗱𝗲𝗰𝗹𝘂𝘁𝘁𝗲𝗿, 𝗽𝗮𝗰𝗸, 𝗮𝗻𝗱 𝗱𝗼𝗻𝗮𝘁𝗲. Store items you won’t need anytime soon + get rid of anything you wouldn’t take with you in a move. Organize closets and “catch all” spaces too.

𝗗𝗲𝗲𝗽 𝗰𝗹𝗲𝗮𝗻. This is a must. Buyers don’t like funky smells, dusty corners, and dirty walls/baseboards that you probably don’t even notice. If you’re not up for it, it’s worth hiring a professional!

Have questions or want to get started? Send me a text or email!

Paying Over List Price

Alright, it’s no secret that Denver’s real estate market is 🔥

When you’re buying a house, it would be fantastic if you can negotiate a great deal on purchase price...or even if you can just write a straightforward clean list-price offer. However, in a market where inventory is extremely low and demand is crazy high, the result is buyer competition, and subsequently often offers over list price.

We have just over 5,000 active listings in all of the Denver area. This is about 1/6th of the amount we’d need to have a balanced market (🤯). Colorado is a great place to live...and a lot of people want to put down roots here. Here are a few reasons that it may make sense to pay over list price in order to stake your claim on Denver real estate:

LIST PRICES AREN’T BLACK AND WHITE • They’re based on the listing agent and the seller’s opinion of the value. Ultimately a home is worth what a buyer is willing to pay for it. If there’s market demand that says a home is valued higher than perhaps it is.

YOU MIGHT HAVE TO • If a home is popular and has multiple offers, it may be necessary in order to have a fighting chance of a seller accepting your offer over another.

THE COST OF WAITING OUTWEIGHS THE HIGHER PRICE TAG • Historically in Denver, homes appreciate in value (typically it’s in the range of 2-5% a year, but this year it’s been upwards of 7%). That means the cost of the exact same home today will likely be thousands more next spring/summer. If you pay over list for a home now, it will likely recoup that value in the upcoming months anyway. If you’re planning on owning for a few years, the investment can make sense.

INTEREST RATES ARE SUPER LOW • Like crazy low. That can make the difference of tens of thousands of dollars in purchasing power. They’re not expected to last forever, which is why so many people are taking advantage of them. A lower rate can offset a higher price and keep your monthly payment the same.

Ultimately, as much as competition breaking into the market might not be ideal for a buyer...it’s a great thing to own property in a place like Denver that’s a desirable place to live with stable home values + consistent appreciation!

Q’s? 👇

Starter Homes

So I’ll be the first to admit, most of the listings I share are Pinterest-worthy dream homes...why? Simply because I love some good home inspo and they’re fun to look at!

However, then it comes to real estate as an investment, and especially first-time homebuyers, I am a HUGE fan of starter homes! Check out why below ⇩

YOU’LL GET A BETTER DEAL • Homes that need a little bit of work or cosmetic updates are going to be priced much more affordably than something super updated

LESS COMPETITION • If a house has a gorgeous updated kitchen or some trendy finishes, it’s going to get a ton of interest. Lots of interest means it’s likely to get multiple offers and have several buyers competing to get it...which in turn drives the price up

YOU CAN MAKE IT YOUR OWN • Cosmetic updates are inexpensive + often easy to DIY. Painting walls or cabinets, updating fans + light fixtures, getting new hardware or doorknobs, or replacing old trim is SO easy...and you can choose everything to fit your own style. If you need to bring in a professional to add some trendy subway tile, or another more skilled project, you can still do that on a budget

YOU’LL GET MORE RETURN ON YOUR INVESTMENT • If you do a little work on your own you’ll build some “sweat equity,” and any updating you do in general will add value to your home. At the same time, you’ll be paying down your mortgage principal and your home will likely be appreciating in value. All of this builds wealth, and when it comes time to sell, you’ll see bigger proceeds

IT’S NOT FOREVER AND IT DOESN’T HAVE TO BE PERFECT • Most people live in their first home for 3-7 years...then they capitalize on their investment by selling and “moving up” into a bigger home or their forever home. Even if you start in a condo or townhome, you will be investing in yourself and building equity. When it comes time to sell, many people then have tens (or hundreds) of thousands of dollars to use towards a new down payment and can easier afford that “dream home!”

Thoughts or questions? Share in comments!

Marketing Your Home

So...it’s time to sell your house! In a hot market like Denver where half of new listings go under contract within days with multiple offers, it can be easy to think that homes basically sell themselves and there’s not much else to it besides throwing it up online.

Wrong! Your home is one of the biggest investments you’ll ever own, and if you want the most return (💸) on your investment you need to work with a Realtor who has a solid marketing plan...see some of my thoughts below:

MAKE SURE YOU’RE BACKED BY A GREAT BROKERAGE @westandmainhomes sets themselves apart by having a professional in-house marketing team and the marketing materials are gorgeous. Flyers, postcards, social media graphics, custom collateral...no problem!

USE A PROFESSIONAL PHOTOGRAPHER For the love of God, please don’t try to sell a home worth hundreds of thousands of dollars with iPhone photos your Realtor took in the dim evening light with their reflection flashing in the bathroom mirrors. Your Realtor should be invested enough to hire a professional photographer.

HIGHLIGHT YOUR HOME’S UPGRADES + LOCATION Feature cards (notes posted throughout the home) are such a good way to highlight key features and upgrades that make it super easy for buyers + their agents to see the things that add value to your home. I also love pointing out how great a home’s location is - down the street from the neighborhood park, walkable to the great local coffee shop, or super close to main thoroughfares for easy commutes...make sure buyers know that!

GO THE EXTRA MILE There are so many other options to help a home stand out online...Interactive 3D tours, 2D floor plans, walk-through videos, twilight/sunset photos, neighborhood photos, social media ads...All of these are great options to grab buyers attention before they even walk through the door.

Also...All marketing costs should be at the expense of your Realtor, paid for from the commission you pay them. So make sure you choose to work with someone who is willing to invest in your listing and make marketing a priority!

Searching for Homes

The home search process looks different for everyone depending on their time frame, level of motivation, and how particular they are about what they’re looking for. Here are some tips that can help you to prepare, as well as for along the way!

SET A BUDGET | Work with a reputable local lender to get fully pre-approved and feel confident in your price range and potential monthly payment. Homes in Denver can sell fast, and if you wait til you find one you love, you’re probably going to miss out on it!

MAKE A LIST OF NEEDS + WANTS | Needs are absolute must-haves and wants have a little more flexibility. 3-5 things in each category will be a good place to start.

PICK A LOCATION | Do you want to cast a wide net or focus on a specific neighborhood? What type of home do you want - Historic, mid-century, or a newer build? Walkable to shops/restaurants or near trails/open space? More of an urban or suburban feel? Also take into consideration a potential work commute because Denver traffic can be rough!

PARTNER WITH YOUR AGENT | I set all my buyers up on an official MLS search and filter potential matches to send them as soon as they hit the market. But I also connect them with a great app and encourage them to browse listings on their own as well!

HAVE SOME FLEXIBILITY | Some might not agree, but I don’t believe the *perfect* home exists (😳?!). Every house has pros and cons, and you have to decide what’s most important to you. The great thing about owning a home is you can always make changes/updates and make it exactly what you want...and that in turn adds to your home’s value!

KEEP A GOOD ATTITUDE | Denver’s market can be competitive and tough for buyers. Sometimes people will make offers on several homes before getting one accepted. In my experience, everything always works out in the end...and even though it can be challenging, it’s definitely worth it!

How to Prepare Now

Is buying a home this year one of your goals? Or maybe you had plans to jump into house hunting this spring but COVID put that on hold? I’ve had several buyers reach out to me recently asking what they could do to prepare now while they have a little extra time at home on their hands, so I’m sharing my answers with here with everyone!

START THE PRE-APPROVAL PROCESS | This can be done completely remove via internet, phone + Zoom meetings. A lender will help you determine what you qualify for, show you how purchase prices translate to monthly payments, set expectations on what you need to save for down payment and closing costs, and can give you pointers on anything else you can do now to put yourself in the best position when the time comes. You HAVE to be fully pre-approved before you can go shopping, so if you get this out of the way now, you can hit the ground running whenever the timing is right for you!

BROWSE HOMES ONLINE | Get your feet wet checking out different houses and neighborhoods. It’s always good to get a feel for what is out there at different price points in different areas. Right now most agents are adding 3D interactive tours and videos to their listings too, so you’ll be able to get as close to being inside the home as possible!

MAKE A LIST OF NEEDS AND WANTS | These can vary so much, and are really about what is most important to you. These lists don’t have to be crazy long and it’s best to have a little flexibility when you start searching. About five or so in each category is a great place to start!

MEET WITH ME ON FACETIME OR ZOOM | Of course I prefer to meet with people in person, but given the current circumstances, we have to adapt. I can listen to what your goals are, fill you in on the market, walk you through what the buying process looks like, answer any questions you have...then will mail you a buyers packet with a bunch of helpful information!

If you’re thinking about buying soon or down the road, send me a message! Would be happy to chat more or get you a local lender rec! 👋🏼

Home Updates that Make a Big Impact

Like many other people, I've spent some of my extra time at home tackling some long overdue house projects (in between trying to survive 24/7 with a toddler and binge watching bad TV, let's be honest).

I spend a lot of time looking at houses and talking with buyers about what they like and don't like, and what features or upgrades catch their eye. Whether you're going to be prepping your house for sale sometime soon or just looking to spruce up your current home, here are some easy DIY projects that can make a big impact on your space!

Paint! This is such a good way to get a refresh and it's always worth the investment. If you may sell soon, I'd recommend neutral colors like whites and grays that will make the home look light and bright. If you're staying for a while, add a fun accent wall with a color you love.

Swap out some dated light fixtures or ceiling fans with something a little more modern (like this gorgeous dining room light above!). There are a lot of affordable options out there, install is not as hard as you think, and it can really update the space.

Work on the home's exterior curb appeal! The weather is starting to warm up and sunshine is good for your soul. Paint your front door a fun color, trim back overgrowth, and clean up debris to prep for some flowers and fresh mulch when we get past our last frost.

Add a fun trendy cosmetic upgrade! Wallpaper in a bathroom, a fresh kitchen backsplash, or some open wood shelving are all easy projects that add a lot of character.

My to-do list currently includes replacing some old carpet with easy to install laminate flooring, upgrading our interior doors + painting our front door! What are you working on?

Thought on the Current Market - Mar 2020

Well Denver, this spring sure took a turn for the...interesting. We’re under official “stay at home” orders and there is a lot of uncertainty going on right now. As with many other industries, the real estate world has changed drastically in the past few weeks, and even days.

In order to continue to operate safely, the industry has adapted A LOT...utilizing technology to meet with clients + market listings, using an abundance of caution at showings, facilitating almost the entire transaction remotely, and having no-contact inspections, appraisals and closings.

Right now, real estate has been deemed “essential” under the state’s new orders. I’m so thankful my buyers and sellers who are currently under contract will still have somewhere to move into and actually have a place to “stay home” at.

There are certainly several reasons why someone NEEDS to buy or sell at this time – maybe they’ve already bought their next home and need to sell their current one, they’ve already sold their current home and need to buy their next one, their lease is ending, or they have other specific personal circumstances. If this is the case, we can certainly make it happen.

However, in this time of limiting exposure to others it is probably not a great idea to go house hunting for fun, get your feet wet checking out homes, or arranging handfuls of showings. Buyers who are active right now should be serious – fully pre-approved and only seeing a home if they think they may really want to make an offer on it.

It is impossible to predict the future, but we are fortunate Denver has the foundation of a strong housing market. We are nowhere near having the supply to meet the demand. Showings are down, but the number of homes going under contract is near the number of new listings going on the market. We will see what the upcoming weeks bring, and of course I will keep you posted!

Check out this West + Main Homes article about buying and selling at this time.

If you have questions about your specific situation, please send me a message!

Down Payment Options

One of the key components of getting ready to buy a home is saving money for your down payment. There’s a lot of incorrect or misunderstood information floating around out there about what amount of money you actually need to provide for a down payment.

For starters, you don’t need 20% down! It’s been years since that was a requirement. In reality, for the most commonly used loan programs, Conventional and FHA, you only need as little as 3% or 3.5% down respectively. For a VA loan program dedicated to current and former military members, no down payment is required at all. There are also down payment assistance programs out there that may be a good option if you need a little help. A lender will work with you personally to help determine which loan program and what amount of down payment makes the most sense for your situation.

Your down payment can come from a variety of places, so feel free to get creative. The most common sources are personal checking/savings accounts, gift funds from family members, pulling the money from personal investment or retirement accounts, or through equity from the sale of a previous home. Realistically, the down payment usually comes from a combination of these sources.

Cash (like cash in a shoe box or a personal safe at home), cannot be used for down payment at the closing table. Underwriters are required by the loan investors to “source” your down payment, or be able to show a paper trail of where that money came from. If you have cash you’re planning to use, you’ll want to put it into a bank account for at least 60 days to meet requirements. Also, be prepared to verify where any large deposits into your bank accounts came from that cannot be clearly understood from your bank statement transaction history.

Getting your down payment in place is a big step in making your home purchase a reality. Hopefully this helps you to realize that you don’t actually have to save up an exorbitant amount, but rather that with the low minimum percentages required and the various options of sources for down payment, it may not be as overwhelming as it may have seemed!

Information courtesy of my go-to local lenders, The Strive Mortgage Team

Five Biggest Mistakes Buyers Make

NOT GETTING PRE-APPROVED | Everyone wants to jump to the fun part, looking at houses! But that’s like going shopping without a wallet + having no clue how much money is in your account. A lender will help you determine what you qualify for + how a purchase price translates to a monthly payment. In Denver’s market there’s no way you’re getting an offer accepted on a home without a pre-approval, so take care of your financing first!

NOT LEARNING ABOUT THE LOCAL MARKET | If you want to buy soon, start browsing current listings to get a feel for what's out there + price points in different areas. This will give you realistic expectations of the inventory so you’re not looking for a unicorn home that doesn’t exist! It’s also helpful to see how quickly the homes you like tend to sell so when you find one you love you'll be ready to jump on it.

EXPECTING HOMES TO BE PERFECT | Most homes will have some wear and tear or features that could use upgrading. The beauty of owning is that it’s YOURS and you can do whatever you want to it. Cosmetic fixes like paint and fixtures are easy. If you want a trendy backsplash, add one in. If it could use new carpet or windows down the road, don’t let that be a deal breaker. A home is an investment and upgrades will only add to it's value.

WAITING TOO LONG | There's a saying that the best time to buy real estate was five years ago + so many people wish they purchased sooner. When you’re paying a mortgage instead of rent, you’re investing money into your own asset + can capitalize on it down the road. Real estate also historically appreciates, so home values + prices go up year over year. Denver isn't getting any cheaper, so sooner is usually better than later!

ASSUMING ALL REALTORS ARE THE SAME | Realtors can run their businesses in very different ways. Choose an agent who you like, get along with, and has a philosophy you agree with. My approach is to educate from the beginning so people can make informed decisions. I also believe in present/personal service every step of the way – from the first meeting, to showings, contracts + negotiations, inspection + the under contract period, all the way to closing.

Timeline to Purchase

As many buyers are adding a home purchase to their New Year 2020 goals, this topic has come up a lot recently!

Most first-time home buyers are currently renting and have leases to consider, so if you’re planning on buying a home, when should you start preparing?? In my opinion, the answer is the sooner the better! You don’t know what you don’t know, and a quick meeting can educate you on the process, take some of the anxiety out of it, and help you feel comfortable to make some moves when the time is right.

Getting your financing squared away early is one of the best things you can do. You will get a realistic expectation of how much money you need to save for a down payment/closing costs and how a purchase price translates to a monthly payment....which will give you a goal to aim for. If there is anything you can do to put yourself in a better position, you will be able to get some direction and work on it.

In the Denver market, good homes can move fast. If you find an amazing place you want to be able to jump on it...and in order to do that you need to have a mortgage pre-approval.

If you want some hard and fast numbers - the typical under contract period in Denver is about 30 days. Considering inventory is fairly low, I’d recommend allowing at least a couple months of searching before that to find your perfect place.

It may also be a good idea to look into logistics of breaking your current rental lease in case you find a perfect home before the timing is perfect. When you purchase a home, you don’t make your first mortgage payment until the month following the month after you close (Close in June = First payment in August)...so a couple months without a mortgage can certainly negate the cost of breaking a lease.

Of course, this is the preferred plan of action...if your dream house pops up out of blue, I have great lenders who will get you pre-approved fast on an evening or weekend so we can try to get you under contract!

Have any questions or thinking about buying a home in 2020? Send me a text or email and let’s chat more about your goals!

Moving to Denver

I am a Colorado transplant myself and I totally understand why so many people want to call Denver home: beautiful mountains, outdoor activities + lots of sunshine!

Buying a home from out of state can be a little intimidating, but if you have a good Realtor who can educate you on the area, walk you through the buying process and step in for you while you’re remote, it can take the stress out of the process and you can have a home ready for move-in when you relocate! Check out some tips below👇🏼

✖️GET TO KNOW THE AREA | Consider what you’re looking for in a home: Budget? Suburbs or city neighborhood? Historic home or a newer build? Walkable to retail/restaurants or near trails/open space? Proximity to jobs? Good schools? If you tell me what you’re looking for, I can suggest areas that may be a good fit. I also have some fantastic neighborhood guides so you can learn about average home costs, area features + favorite local spots!

✖️LEARN ABOUT DENVER’S MARKET | Denver has a healthy and sometimes competitive real estate market, and can be very different than other regions. The buying process, under contract period, and closing can also vary substantially from state to state. It’s important to know what to expect and to have a Realtor that will ensure you’re informed and comfortable.

✖️MAKE A QUICK TRIP TO VISIT | A ton of research can be done online, but it can also be helpful to see areas and homes in person. I can show you around neighborhoods, point out nearby amenities/parks/schools, and tour some homes so you can get a feel for the styles and prices in different areas. Even if you’re not ready to shop yet, this can give you a feel for the market and give you confidence when the time is right. If you are ready to shop, we can fit several showings into a short period of time if necessary.

✖️UTILIZE TECHNOLOGY | If a great home comes on the market, I’m happy to go check it out for you! FaceTime and video tours can be very helpful if you need to make a purchase remotely or during inspections!

Thinking about moving to Denver? Send me an email or text with any questions you have or to get a neighborhood guide!

Steps in the Homebuying Process

Thinking about buying a home but not sure where to start? Check out the steps below.

FIND A REALTOR · Buying a home is likely going to be the biggest purchase you make in your life. I believe the more informed and prepared people are, the more comfortable they are. I like to start by sitting down over a cup of coffee and chat about your goals, the steps in the process, and answer any questions you may have. If you think we’d be a good fit, we can get started whenever the time is right for you.

GET PRE-APPROVED · In Denver’s market, it is a must to get pre-approved before you go shopping for a home. It is very important for you to know your purchase price range, feel comfortable with a potential monthly payment, and understand your down payment options and closing costs up front.

SEARCH FOR HOMES · I run a comprehensive MLS search and update you with new listings that meet your needs. I also connect you with a great app for browsing and together we will find homes you love. When the time is right, I schedule showings and we will see homes until we find the one that is perfect for you.

MAKE AN OFFER · Together, we will determine the terms and price of an offer on the home you choose. There is likely to be some negotiation, but once both parties agree, you will go under contract.

UNDER CONTRACT PERIOD · The typical under contract period in the current Denver market is about thirty days, but this can vary based upon the negotiation and terms of the contract. There are multiple dates and deadlines to meet and it is my job to make sure that you’re informed about every step. We will schedule an inspection, review several documents (title, HOA, due diligence + seller disclosures), order an appraisal, and finalize your loan. If something arises that causes major concern, the Colorado contract allows opportunities to cancel the contract (and get your earnest money back) if something is not right.

CLOSING · This is the final step after all of your hard work has already been completed! A title company will facilitate the transfer of funds and ownership. You will have a lot of documents to sign to make it official, then you will get the keys to your new home!

Buyer Millennial Myths

So, the American Dream may look a little different these days. Millennials spend more time pursuing career endeavors, traveling and waiting longer to settle down with a family and house than people did in past generations. While I’m a big fan of spending money on experiences and not things, I also believe home ownership is such a good financial investment and an important aspect of creating long term wealth.

Here are a few homeownership myths that might be keeping some first time homebuyers from turning their rent into a mortgage.

✖️YOU NEED A 20% DOWN PAYMENT | It has been a long time since this was a requirement. Conventional loan programs only require 3% down, and there are down payment assistance programs that could be an option as well.

✖️YOU WON’T BE ABLE TO QUALIFY FOR A MORTGAGE | You don’t have to have a perfect credit score or be completely debt free to qualify for a mortgage! In fact, most people have some mixture of student loans, car payments or credit card debt. If you’re curious, you can chat with a lender and see what your options are...you might be surprised! If now isn’t the best time, a lender can offer suggestions on what actions to take to put yourself in a better position in the future.

✖️OWNING A HOME WILL TIE YOU DOWN | While it does usually make the most sense to own a home for at least a few years before selling, there are so many options for long-term and short-term rentals (Airbnb!). You can always have someone else pay your mortgage if you want to travel or make a move.

When you are paying a mortgage instead of rent, you’re investing that money into yourself...ultimately you will be paying it either way. If you look back over the last year...or five...and think of how much money you’ve paid in rent you will probably go 😳. It’s also important to consider that historically homes appreciate over time, which increases the equity you have in the home...So when it’s time to move you can cash in on your investment instead of just getting your security deposit back!

Selling + Buying

Selling and buying within the same time frame can seem complicated and overwhelming, but it is a very common situation. When determining the route that is best for you and your family, you need to look at both finances and level of convenience and weigh your options.

• If you are in a position where you do not need proceeds from a sale to use towards the down payment on a new purchase, and are able to qualify for both mortgages, you can take your time on a house hunt and wait to list your current home until after you're under contract on or have purchased your new home. Timing wise, we are usually able to line up both transactions so you don’t end up having any overlap on mortgage payments, but you do need to qualify for both on paper and have to have independent down payment funds available. You can also look into if keeping your current home as an investment property would be a good financial decision for you.

If you’re planning on using money from your sale towards your new down payment, here are a few options you have:

• You can put your current home on the market and as soon as you get an offer that works for you, we can go find your new home. You can also usually request a post-occupancy agreement from a buyer that allows you to stay in your home up to 60-days post-closing to give you a little more time to find a new place that you love. You will close on your current home prior to the new sale, so you are able to use sale proceeds towards your down payment, and only need to qualify for the new mortgage. This is the simplest of choices, but can put pressure on you to find the right house in a short amount of time.

• You can find the right home to buy and make an offer contingent on the sale of your existing home. This can seem ideal, but many sellers in this market don't want to accept a contingent offer, so negotiation position is weak. You may also risk losing the new home if something goes wrong with your sale or if your sellers aren't willing to be flexible on time frame. If you are able to get a contingent offer accepted, you need to have your current home ready to list super quick, usually within a few days, so it is best to do some prep work ahead of time so you can move fast when you find the right place. You will close on your current home prior to the new sale, so you are able to use sale proceeds towards your down payment, and only need to qualify for the new mortgage.

• You can sell your current home and move into temporary housing or stay with family/friends if you don't find the right home while your current home is under contract. This gives you the best negotiation position, but can be inconvenient. You will have all sale proceeds in hand and available whenever you find a new place.

• You can work with a lender to see if you can secure a "bridge loan," which would allow you to buy with convenience and without pressure. However, many of these specialty programs come with significantly higher interest rates or additional fees, and you may have months with multiple mortgage payments if your current home doesn't sell quickly.

If you know anyone who may be looking to sell their current home and upgrade, downsize, or just get a change of scenery, please send them my way, I'd be happy to help them understand all their different options!