Buying Your First Home When Starter Home Inventory Is Tight

Most first-time buyers don’t expect to live in a luxury LoDo loft with a roof top deck and views of the Rocky Mountains. If you are buying your first home in the Denver area, you should expect to find a move-in ready home in a safe neighborhood. By working with a solid Realtor who knows about the best buying opportunities in Denver’s hip neighborhoods, you can relax and enjoy the home-buying process. Whether you dream of living in a Denver Square or a vintage Craftsman bungalow, find out whether the home is really in your price range or whether you’ll need to invest money for renovation work. Your overall budget should include what you are willing to pay upfront as well as money you’ll need for any repairs or remodeling work.

Competing with investors

According to an article by Real Estate Economy Watch, there’s a shortage of lower priced starter homes. Many investors grab up the entry-level homes because they make stellar rental properties, especially in the booming Denver market. Less expensive home also appeals to retirees who want to downsize. The article pointed out that in Denver there were four times as many upper-end homes priced at about $350,000 and above for sale compared to homes on the lower tier of about $220,000 and below. The way to compete with investors is to work with Realtors with networking skills who can tell you about properties before they are even listed.

Getting pre-qualified for a mortgage

An article by RealtyTimes points out first-time buyers can better compete by getting pre-qualified for a loan. Many home sellers don’t want to waste time with offers or even inquiries from sellers who don’t already have their financing lined up.

Working closely with a Realtor

When inventory is tight, it’s more important than ever to stay in close communication with your Realtor. In a tight market, let your Realtor know when you run across a desirable listing.

Knowing what you want

Because you need to make quick decisions in a seller’s market, be clear about what you want. Make sure everyone in the family is on the same page when it comes to the must-have items on the list. Your Realtor will use a negotiation strategy, but needs to know where you are willing to make concessions. Also, share any information about your ideal scenario. Would you rather have the seller pay closing costs or fix anything discovered by the inspector.

Buying your first home in Denver when inventory is tight is often frustrating, but you have to bid competitively and keep contingencies to a minimum. Many first-time buyers don’t regret buying homes in Denver’s LoHi, LoDo, RiNo and other fun neighborhoods. You won’t need a car to live in some downtown Denver neighborhoods. If you prefer the suburbs, your Realtor can help you house hunt for bargains in Westminster, a great northwest suburb of Denver.

At Peter Hauben Real Estate, we help native first-time buyers and move-up buyers as well as those who relocate to Denver. Ask us about the different programs available for first-time homebuyers as well as the growing inventory of new construction homes. We won’t let you settle on anything other than a house you want to come home to.