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HomeBuyers Resource Center

Our Home Team combines innovative technology with this exclusive 12-Point Market Intelligence Report to find you a great house in less time and at a more competitive price!

·     We prepare a "12-Point Market Intelligence Report" on any house you want to buy to help you get a better deal.

All real estate agents
are NOT created equal!

Also, be sure to view our Reports section of this website to obtain more valuable insights about vital tips and strategies that will help you maximize your return on investment when you buy a home. You'll be amazed at how some seemingly insignificant nuances about negotiating and conducting home purchase can pay big dividends when you do buy your home.
 

Whether you are buying, selling or owning, you'll want to keep up with real estate price trends and market statistics in metro Denver...click here for Valuable Market Statistics (shown below).

buying a home.     

No. 1 - Not hiring a Buyer's Agent.   The law governing the ways in which real estate agents can work with consumers in Colorado changed again on January 1st, 2003. An agent may act in three different capacities: Seller's Agent, Buyer's agent or Transaction broker. The agent whose name appears on the "For Sale" sign in front of a house is typically a seller's agent (or listing agent) and is obligated to try to get the highest possible price for the seller.

Transaction brokers merely facilitate the transaction and are legally prohibited from acting as an advocate for either party. For example, a transaction broker must remain neutral in price negotiations.

Homebuyers, on occasion, think that it doesn't matter which agent they select to view or show them a house.  Sometimes,  buyers even think that might be more convenient or a better deal if they worked directly through the listing agent to acquire a particular property.  It is very important to recognize that the listing agent was hired by the home seller to obtain the best possible price and terms for the property, and that the listing agent has a duty to do so.  This doesn't suggest, however, that a listing agent won't work with you in a fair and ethical manner, but it does mean that you should have a full understanding of where that agent's loyalties are before you dial the phone number.  

Obviously, informed and smart buyers want what most sellers have - an agent to represent them and to protect their best interests. As a matter of good practice, all buyers should be represented by an agent who has a their best interests at heart, and who will carry out the negotiations with the utmost fiduciary, loyalty and effort, on their behalf.  In addition, buyers can get the benefit of a buyer agent's expertise without directly paying for it.  The seller almost always pays the buyer agent's fee, so using a buyer's agent just makes sense. 

We have been offering buyer brokerage services since 1988 -- long before it was popular in the real estate business.

No. 2 - Choosing a lender just because they advertised the best rate.   While the rate is important, consider the total cost of your loan including the APR, loan fees, discount and origination points.  When receiving a quote from a lender, insist that the discount points (charged by the lender to reduce the interest rate) be distinguished from origination points (charged for services rendered in originating the loan).  The cost of the mortgage shouldn't be your only criterion either.  Be sure to do your homework so you can have confidence that the company you select is reputable and will deliver the loan with the terms and costs they promise. If, in the final hours of the transaction, you determine that the lender has suddenly increased their profit margin at your expense, you won't have time to start again with a different lender.  Also, sit down with your mortgage lender to learn all of the specifics on the mortgage you are considering. There are many alternatives to a 30-year loan. Choose the one which best suits your needs.

In addition, arrange for the financing before you find the house.  Since most purchase agreements are contingent on the buyer being able to obtain loan approval, having this done in advance gives reassurance to the seller that you will be able to complete the purchase. This may cause your offer to be considered over other offers where the buyers have not yet consulted a lender. And, you may end up getting a lower price on the house because the seller has a higher level of confidence that the deal will actually close. 

You can quickly get pre-approved for a mortgage.  We know one very important thing from practicing real estate for years and it is that... most sellers almost always demand more from a buyer who they think is 'less qualified' or has certain "conditions" to work through before they can complete the purchase.  Our approach greatly increases your appeal to a seller. 

No. 3 - Not being the first to know about homes that meet your needs.  Desirable homes will sell quickly in any market. New listings are coming on the market every hour of every day. While most agents have access to the MLS where resale homes are listed, they have to manually enter searches to find the houses that are new to the market.

To make sure that we do not miss out of your dream home, we subscribe to a special service that automatically searches the MLS every night for properties that have come on the market during the day. The system notifies me by email about any new listings that meet your search criteria. In this way, we are one of the first to know about newly listed homes. This minimizes the chances of missing out on a good deal.

Other sources are available for us to consult - sources like the Internet or newspaper and magazine ads. However, none of these sources provides a complete list of available properties. And, since there can be a significant lag time before houses appear in newspaper ads or on the internet, they tend to be less desirable properties that other buyers have already passed up.
 

No. 4 - Some 'real' expectations about homes offered For-Sale-By-Owner.  Even though most sellers hire an agent, a few sellers decide to go it alone.  We will not overlook these properties, but it will help if you have some realistic expectations about these houses.  First of all, there is no complete list of By Owner houses and no systematic way to find them. So, we generally will not consider them until you have narrowed your search to a very specific area.  Also, understand that sellers who attempt to sell their homes without an agent can be less motivated, and less informed. Consequently, they tend to overprice their homes.  Also important to know is that most of these sellers aren't exactly sure what to do when they get an interested prospect, and they may not be aware of laws that require them to tell a prospective buyer about all material defects and make all of the essential disclosures.
 

Despite these drawbacks, we occasionally find a By Owner property that works well for our clients. We won't overlook them but we will also have realistic expectations -- and we will not necessarily expect them to be "motivated."

No. 5 - Always use an agent when buying a 'New Home'... because you are paying for it anyway!  A large percentage of new homes are sold to buyers who have agents representing them. Since there are many advantages to a builder in having a one-price policy (i.e., the price is not reduced for buyers who are not working with an agent), most new home builders have a cooperative marketing arrangement with the Realtor community. Agents agree to show new homes to their buyer-clients, when appropriate, and builders do not charge a higher price to such buyers and do not offer a lower price to a buyer who is not working with an agent.  Thus, a buyer who buys directly from the builder without the help of an agent actually pays for representation but does not get the benefits of it --he or she could have had the services of an agent at no extra cost!
 

As a buyer's agent, we can provide you with many valuable services including price negotiation strategies, lot selection, advice about options and upgrades to increase resale potential, shopping for financing and so forth. In fact, in our experience, many of the hardest homes to resell are those where the owner bought directly from a builder without the help of an agent and ended up making poor choices about the lot, optional features or decorator items. Don't forgo the use of an agent when buying a new home.
 

Important Note: Most new home builders require you to be accompanied by your agent on your first visit to a new home community or at least require some timely notice that you are working with an agent. To protect your rights to have an agent represent you, talk with us early in your house hunting efforts.

No. 6 - Lack of planning.  Selecting a home with a continuing sales defect:  Will you live in the house for the rest of your life?  Probably not, so you'll want the property to appeal to potential buyers in the future.  A low price isn't a "deal" if it buys a house you'll be stuck with for a very long time.  When viewing your home purchase in the long term, consider lifestyle changes and family dynamics before choosing.  Will you have a home based business?  Do you have kids in your future plans?  Be sure to plan accordingly and buy the right sized home for your near future needs. 

Also, whether you are considering a new build or an older home, no home is going to be perfect.  However, you should avoid homes with obvious weaknesses such as a bad floor plan, a poor location (near a noisy roadway), or lack neighborhood appeal. In most cases, these issues cannot be resolved by the buyer and will still be an issue when the home is sold at a later date. At least consider their impact when determining the price you'll pay for a house like this.  Your Home Team is a good source for the types of weaknesses you'll want to avoid.  Buying a home with good resale potential sometimes takes a little patience and research, but you'll love the payback when it sells quickly and puts extra money in your bank account. 

No. 7 - Waiting for a time to buy, based upon the market and interest rates.  The biggest mistake prospective home buyers make is not buying at all.  In a hot market, waiting too long can result in your losing the house of your dreams, as well as more money in the long run.  In a slow market, waiting for things to change will result in missed deals and opportunities, and further delay your goals.  Over the long term, prices have always risen, and interest rates will drop, allowing for a refinance to a lower rate.  Having done your homework in advance, you will be prepared to make the right decision based on your needs, without being dictated to by market conditions. With so many options available today, in both new construction and existing homes, there is a home out there that will meet your needs.  Owning a home builds equity, provides tax breaks and appreciation, all while giving you a place to call your own.  Take all the time you need to make a sound home buying decision, but don't be indecisive or afraid to commit to a purchase. "Cold feet " are natural, but don't miss out on your dream home. 
 

No. 8 - Failing to negotiate the best 'overall' deal. A typical home purchase contract in Colorado has 129 blanks that must be filled in. All of them are important. Obviously, price is a very important issue. Many sellers initially set their asking price too high while more motivated sellers may price their homes below market value to generate a quick sale. A good buyer's agent can help you sort out the price issue quickly and efficiently so that you do not overpay, or miss out on a good deal.
 

Very important: Do not neglect the other 128 blanks in the contract. Provisions related to possession dates, financing, title insurance and others terms can be structured to save you money or make the transaction more favorable for you.  Even though most real estate deals are done using standard contract forms, every blank in the contract represents a decision that you need to make and many of these decisions can have significant legal implications. Our goal is to make sure that you are as informed as possible about all the decisions you need to make and to make sure that your rights are protected in every way possible.

No. 9 - Attempting to make a shrewd investment on the home you will occupy and enjoy.  A home is a place to live and should be evaluated based on your needs, and budget. If your primary goal is to make a shrewd buy, you are not likely to get the best house or make the best investment.  You see, most sellers of of the best homes know what they have and are unwilling to part with it for a song.  The most most important thing is to choose a home that appeals to you, since it will affect your life in many more ways than simply the nature of the 'deal' you can make on it.  You're likely to live in this home for at least five to seven years, during which time it is nearly impossible to speculate on price appreciation. So, when you are looking for the best home investment, pursue your dreams and leave the hardheadedness on the sidelines.

No. 10 - Not allowing for delays in the purchase transaction.  In a perfect world, all real estate transactions close on time. In the world we live in, transactions are often delayed a week or more. Suppose you asked your landlord to terminate your lease the day your purchase transaction was scheduled to close. A day or two before your scheduled closing date, you discover your transaction is delayed a week. In a perfect world, no one is inconvenienced and your landlord is willing to work with you. More likely, however, your landlord is unwilling to extend your move out date.   Will you have to find interim housing for a week or more?  Where do you store your possessions?  It is wise to have a backup plan even in the most confident of situations.

No. 11 - Failing to consider multiple inspections.  While sellers in Colorado are required to disclose known defects in their homes, most are unaware of the importance of doing a thorough job. Therefore, you should never buy a home without having it fully inspected.  You may want to pay a little more for multiple inspections, too.  A basic whole house inspection may uncover problems that were unknown or undisclosed by the seller.  It may also be very important to complete other investigations about the property that go beyond just evaluating the basics.  Supplementary inspections may be wise and also determine radon gas levels, pests, septic systems, private wells, molds, inadequate ventilation, and other potential problems.  Even if you know the seller will be unwilling to make repairs, multiple inspections to check for defects beyond the "whole house" inspection are very important.  We want you to know them all, and make the best investment possible. 
 

Note:  While the standard real estate contract only gives you the right to basic disclosures, we have special clauses we place in all purchase contracts for our buyer clients.  These special clauses give our clients some very specific rights to help control the real estate transaction.  For example, you could have your purchase contract reviewed by an attorney. Or, you might use your expanded rights to select the title company that will provide you with the broadest protection.  If any of your inspections or investigations turn up problems, you will have the right to cancel the contract without the loss of your earnest money.
 

Bonus Tip No. 12 for Today's Market:  Here is one additional tips for taking advantage of today's great inventory and low interest rates:

Buy more house than you need!   When we meet to discuss your home buying needs, be sure to ask about why this factor is crucial to making a good buy in today's market. 

Conclusion:
Are you thinking about buying a home?  We have many additional ideas and strategies to help you be successful in today's market.  Email us, or call us. We'd love to help you with the purchase of a home.  Want to Know More?  You can find more in-depth information of interest to home buyers.  Just click here to hear more information about how we can help you find the best home using our Automated Home Finder service. 

Also, if you have not already done so, take a minute to detour to read more about other Informative Homebuyer Reports that we can deliver to you immediately via email.  They're free.

In this Home Loan Guide, we want to accomplish two things for you:

1. We want to make the point, as forcefully as possible, that lenders often make claims that sound too good to be true in order to lure you into calling them, and;
 

2. We want to give you some pointers that cut through all the hype to help you shop for a fair deal on your home loan.

For example, when 30-year fixed interest rates were at 7.75% a few years ago, a client called excitedly to tell me about a "special loan program" he had found advertised in the paper. He faxed a copy of the ad that had the following headline "30-Year Loans at Only 7%".

Actually, the rate that they were quoted was very high for the market on that day. As a matter of fact, in conversation with the real estate agent later that day, two other loan officers in different branches of this same large lending institution quoted 7.25% for the same loan.  Over 1/2 point difference (.5%).  And, by checking various internet sources that same day, other local lenders quoted rates in the 7.125% to 7.25%!

In following this large disparity in rate quotes over the next few days (just to make sure the loan officer had not made an innocent mistake), the same pattern became obvious.  Each and every day that week, the same thing occurred - the buyers lender was consistent, and at least 0.5% higher than the real market!

·         Finding a Competitive Interest Rate: Explains how to shop around for the best interest rate for the type of loan you have selected.

One more thing, when you want some quick and easy home loan advice, allow us the opportunity to meet and personally show you all you need to know from our "Insider's Guide To Home Loans."  In about 30 minutes, you'll learn more about how we can make your home financing less stressful, less time consuming, and more profitable than you might have imagined!

MARKET STATISTICS

(Last Updated, January 2008)

            Learn more about the Changing Denver Market...And What Happens Next!

           1)  Click Here - Metro Denver Economic Forecast
         2)  Click Here - Metro Denver Economic Development Corporation
 

Market Summary From Metrolist (Denver MLS)-