First-Time Buyers in a Hot Market

August 08, 2016 / Posted in Denver, Downtown, Real Estate

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At Treehouse Brokerage and Development, we understand that purchasing a new home can be intimidating, especially for first-time homebuyers and particularly with the booming real estate market in Denver. With careful consideration, however, you can determine if a home purchase is right for you. Here are a few questions Treehouse real estate professionals recommend you ask yourself before you make this important decision.

“Can I save money by buying a home?”
In a recent article on the Denverpost.com, Danika Worthington stated that, “Rent is going up in Denver, with the average one-bedroom apartment costing $1,330,” as of July 2016. Home prices are likewise on the rise. A fixed-rate mortgage provides predictable monthly payments to hedge against increasing rent and property costs. Mortgages also provide tax savings that renters don’t enjoy.

“What am I looking for in a home?”
At Treehouse, we recommend our clients come prepared with a list of what you need and what you want from your house. Do you need or want to live in a certain neighborhood? What are your dream features? Decide what you must have and what is open to compromise.

“Do I want to customize my space?”
Most rental properties have stringent restrictions on what you can do with the interior of your home. Often, landlords prohibit tenants from even painting the walls, let alone installing a new shower head or chandelier. When you own your space, you generally don’t have to ask permission to paint, change fixtures, or even remodel. Some homes allow you to customize your outside space. If the property has a homeowner’s association, read the Covenants, Conditions & Restrictions (CC&Rs) to make sure there are no restrictions on remodeling.

“Am I ready for the responsibility of a home?”
When you rent a property, the landlord is generally responsible when a fixture breaks. Your landlord also may take care of pest control and yard maintenance. Homeowners generally bear responsibility for their property.

“Will owning a home mean a lot of work?’
Many people relish the opportunity to maintain their home, but others may find the idea to be intimidating. There are many options for less hands-on homeowners. Urban properties, like S*Park, an ultra-green residential development in Downtown Denver, often require little or no exterior maintenance or yard work. It’s no wonder it has been deemed one of the cities “hottest urban areas.” Many condos have homeowner’s associations to cover maintenance and repairs to the exterior of the property. Home warranties, available separately, can pay for problems with appliances and fixtures. Homeowners insurance will protect your property in case of natural disasters.

“Am I planning to stay in town for a while?”
Buying a home is often considered a commitment to the community. If you are planning to stay in the same place for a few years, owning a home is more secure than renting, since you aren’t subject to a landlord’s whim. But if you decide to move, it’s easier to leave a rented property at the end of a lease term than it is to sell a property. Of course, you can always sell your home if you need to move and in a hot market like Denver, it’s never been easier. The longer you stay, the better your odds are of turning a profit when you choose to sell.

“Do I want to own a house?”
Only you can determine if buying a house is the right choice for you. At Treehouse it is our number one priority to assist you with the questions we all ask ourselves before becoming a home-owner. While homeownership is a big responsibility, it comes with many advantages over renting. With careful consideration, you can determine if you’re ready to enjoy the benefits of buying your first home.

The Denver real estate market is hot and has plenty of options to offer. Whether you are seeking a home or a condo, contact Treehouse Brokerage and Development. We are here for you and excited to be a part of your journey home. Did we miss something? LET US KNOW!! If you have any additional first time home buyer questions or concerns, share it with us below.