Buying a New Home in Denver
New home sales in Denver have surged in the past few years with the persistent issue of lack of inventory and rapid increase in home prices.
One advantage of buying a new home is the flexibility in timing. Some builder will have new homes in inventory that can close as quickly as 30 days. If you want a future delivery time or want to select your own upgrades, you can have one built. Building a home takes about 8 months. That timing can work well with the end of a lease or maybe a more ideal time to sell your home. Because demand is so high right now, many may not have available inventory.
Timing and Contingent Offers
Any seller in a seller’s market will prefer not to have extra contingencies in the sale of a home. If you are going to write an offer but be able to cancel it if your home does not sell, you are not going to be as competitive as other offers without this contingency.
An extra twist for purchasing a new home is that a seller may offer you 30 or 60 days to sell your existing home. If your new home will not be finished for 8 months, you will need to find intermediate housing such as a short term rental . If this is your path, consider a smaller rental and a pod storage company so you can not move the bulk of your furniture twice.
Pick your cabinets, flooring, counter top and paint
If you are buying a home that has not started construction, you have the ability to pick the colors and upgrades. Typically, the options in a new home are cabinets, flooring, counter to and paint. Some other options can be converting a loft space to an additional bedroom, additional exterior stone, air concision, plumbing fixtures and hardware.
Tips for New Home Purchases
Price shop the options you are considering. Someone else may have a better price on air condition or landscaping. However, consider, what the builder completes can be part of your mortgage payment freeing up cash for furniture or window coverings.
Shop around. For the most part buying a new home in Denver is a good deal. Prices are competitive with existing homes and a newer home will be more efficient and have the latest features. Even if you like the first home builder you meet, look at the other options in the market. It will always help you negotiate or feel great about your purchase decision.
Every builder has a lender they prefer. Often a builder will offer you an incentive to use the builder’s lender. The builder does this for two reasons. The first is that they know the lender well enough to be sure that a deal will close or cant qualify. The second is that they likely have a financial relationship with the lender. Because new homes are for sale by owner, the seller’s are not governed by the same rules as real estate agents and brokerages. Shop this option. Have a great lender compare the cost, the benefit and the rate of the builders loan program and another lender. You are not required to work with a builder’s lender, however they are often sticklers over this issue.
I helped many people buying a new home in Denver long before I became an independent real estate agent. If you need any help shopping properties, lenders or upgrades, please let me know. Always happy to help or point you in the right direction.
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