With fewer houses for sale in the Metro Denver area, many potential buyers think of ways to make creative offers. When relocating to Colorado, consider what to ask when buying a luxury home so you don’t overpay. When you are moving from another state, it’s easy to feel out-of-touch with the current real estate market in the Denver area. According to a recent personal finance article by usatoday.com, some first-time buyers pay thousands more compared to a veteran or experienced homebuyer even for the same exact house but repeat buyers from other areas also struggle to understand what’s “normal.” Instead of overpaying for a home, know the right questions to ask. Saving money on the purchase price means a lower monthly mortgage payment as well as extra spending money to make home improvements.
Working with a reputable real agent
By working with a reputable real agent, you protect yourself. An important question to ask a real estate agent is, “How much did other people pay for a similar home in the same neighborhood?” If someone paid $250,000 for the exact floor model with similar upgrades just last weekend, ask why a neighboring home is going for $20,000 more. In some cases, there are reasonable explanations such as a swimming pool or spectacular view, but not always. Ask your real estate agent how much certain features are worth. Are you willing to pay more for a home with hardwood flooring, a new roof or a new heating and cooling system? If you are on a tight budget and don’t expect a sudden increase in your income, place a higher value on practical features such as new appliances and extra insulation. Cosmetic issues are not as relevant.
Overcoming the eager beaver syndrome
One of the reasons newcomers pay more for the same homes is because of the eager beaver syndrome. They are so anxious to get settled in a new community that they have a higher willingness to pay. Think more like a long time “native.” Ask your real estate agent how often homes come up for sale in the same area. Why rush to buy a home when the exact same floor plan will likely hit the market in just a few weeks? At the same time, if you see a home you like, make a reasonable offer.
Putting the emotions aside
People who are repeat homebuyers look at a property without blinders on because they have been through the process before. Your real estate agent does not wear emotional blinders. He or she will give you an unemotional perspective about the home and the neighborhood. Ask your real estate agent to outline the positives and negatives about the house you like. When it comes to buying a home in Denver, think with your head instead of your heart. Many of the emotional triggers you feel are related to home staging. Once you find a home within your budget, you can create the ambiance and emotional connections with interior paint, décor and landscaping.
According to usatoday.com, ways to avoid overpaying for a home include hiring a buyer’s agent who works on your behalf, using multiple tools to figure out the home’s value and maintaining your composure by agreeing to walk away if you can’t get a good price. At The Principal Team, we specialize in upscale real estate in the Denver area. For more tips on getting a great luxury home for a fair price, please contact us.