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5 Myths about Buying A Home In Denver
Video Transcript Below
With so much information available about residential real estate, I’m surprised that I keep hearing some of the same misinformation over and again. Hi, I’m Tristan Colborg with The Denver Real Estate Agent and eXp Realty in Denver, CO. Today, I wanted to share the top 5 myths about residential real estate.
Top 5 Myths about Buying A Home In Denver
Myth # 1:
I need 20% down to buy a home. I’m always surprised to hear people still think they have to have 20% down to buy. Today, there are loan programs available from zero down. Most FHA loans require only three and a half percent, and conventional loans as little as 3 or 5 %. Some banks even have loan programs with 0% down and no mortgage insurance. 20% down is excellent if you can do it, but if you can’t, that DOES NOT mean you can’t buy a home right now.
I’ll never qualify to buy a home. The question is: how do you know? People are often shocked they can qualify to buy a home NOW. You don’t need to have over 800 as your credit score to qualify for a home mortgage. In fact, your credit score is only a portion of what lenders consider. In general, waiting increases the cost of homeownership. And, since over 70% of homes sold in the Denver Metro area in the last six months were under $460,000, there are many affordable options to choose from. You can get a good idea about your ability to purchase by speaking with a good lender. One who can help find the best loan program for you. And if you can’t qualify, they can help you create a plan to do so in the shortest possible time. My number 1 reason for telling people to talk to a lender is to find out what you can qualify for, sometimes it’s more than you think. I’m happy to make a recommendation to a few good lenders if you need it.
Sellers often believe – “I need to price my house with enough room to negotiate.” This belief can cost sellers money. A new home on the market gets the most activity in the first 30 days. If the home is overpriced, it will sit. The longer it sits, the less money sellers make. The right agent knows how to price a home and stage it & aggressively. Plus, they should have a solid marketing plan, helping you get top dollar in the shortest time possible and negotiate on your behalf to get that price.
The less commission I pay, the more I’ll make. We’ve been in a seller’s market in Denver for the last five years. A good seller’s market always brings out low-cost real estate brokerages. And these discount brokers like to propel this myth. The truth is, agents who excel in this business do not discount services because they don’t have to. We know how to price your home and aggressively market it, which helps put more money into the sellers’ pockets. It all boils down to you get what you pay for.
All agents are the same. This statement could not be further from the truth. As in every profession or organization, some are committed to excellence and devote time and energy to become highly skilled problem solvers and dedicated professionals. Others do the minimum to get by. Plus, of all the licensed agents in the Denver metro area, more than half do less than 3 deals per year. Working with a full-time agent with an extensive marketing plan and strong negotiating skills will ultimately put more money in your pocket in less time.
As always, feel free to reach out to me for anything community or Real Estate related. I’m Tristan Colborg with eXp Realty and The Denver Real Estate Agent.com, and remember, “you deserve an elevated real estate experience.”