Colorado Real Estate Market: How Important is the Timing?Posted on Jan 03, 2019
Many potential buyers in the Colorado real estate market for the first time wonder if it's a good time to buy rather than rent. Before making the leap, consider some of the best tips related to timing the real estate market. Pose questions to yourself, your partner as well as real estate agent. According to an article by forbes.com, about 63 percent of Americans own their homes compared to 69 percent in 2004. People who sat on the fence waiting to see what happened to interest rates or the overall housing market regret paying a premium for houses. Still, homes in Colorado continue to appreciate in value. If you hope to buy a home within the next several months, get going on an action plan.
Do I have enough money in savings?
The first question getting a pre-approval letter from a lender is whether you have enough money saved up for a down payment. Ideally, plan to pony up at least 10 to 20 percent. If you want to buy a starter home such as a townhouse, there is no shame in first-time homeowner special financing programs. Because homeowners have considerably higher net worth than renters, don't let a small down payment keep you from getting on the "housing ladder." In other words, buy a starter home you can afford sooner rather than holding out for a luxury dream home. By selling the starter home that appreciates in value, you often have money needed or a step-up house.
Do I have commitment issues?
Whether you have commitment issues in relationships don't really come into play unless you depend on a spouse or partner to make monthly housing payments. If you want freedom and flexibility, buying a home could still remain a solid option. Some people decide to move but turn their home into a rental property. Therefore, ask a real estate agent about turning a particular home into a rental home in the future. Does the homeowner's association allow for rentals? Are there any restrictions on renting out the house? Some communities require a homeowner to live in a house for at least a year before converting it into an investment property.
Does the home give me space to grow?
Whether you are buying a starter home or retirement home, it's important to invest in a flexible home. Buyer's regret often stems from a home that is too small. Before going to closing, find out if the local government allows for any renovations or home additions you see in the future. Knowing your current as well as future vision for the home prevents resentments down the road.
Since it's a seller's market in most parts of Colorado, buyers have greater security knowing they can often turn around and sell if a job or family situation changes. If interest rates go down in the future, it's possible to refinance. At Team Lassen, we help buyers find their dream homes. For more tips on finding homes that appreciate in value, please contact us.