Ahhh . . . now the real fun begins! But hitting the road and viewing houses can be time-consuming with so many out there. So let's break it down.
First, prowl the internet!
It's said that 90% of all home buyers start their search on the internet. Search sites are more than abundant, but with most you have to input your search options every time you get online. And any number of real estate agents get your contact info, possibly creating gridlock in your inbox or answering machine. I have a great site where you can avoid all that -
Allow me to introduce you to the free Home Buyer's Scouting Report. My clients love it, whether they're months away from getting serious or wanting to move asap. It's actually your own password-protected web site, where you can set up one search or several. You're notified daily of new listings, and you can save favorites to a notebook. The system notifies you of changes to the ones in the notebook, such as a price drop or going under contract. That way, you can keep an eye on the market, and see which houses are going fast, and which seem to hang out longer. You'd have a great feel for the market before you even burn a drop of gas! With this site, you'll get all the info you could possibly want, without having to contact several real estate agents. You can easily write yourself or anyone else a note, and the system tracks it all. You can click a button to ask me questions if you ever want to.
It's easy to get started and you'll receive some listings right away, and some tutorial emails. You'll also be contacted by my partner, Christine Jensen, who'll give you your password and even walk you through the site. And it's all free! Just click here: Start prowling the internet now with the most user-friendly site I’ve found.
It's true that I'll probably contact you, because I just can't help but believe that everyone who's even just thinking about buying a house wants the best help any real estate agent can give. But if you don't want any calls or emails just let me know and I'll respect your wishes.
Other sites include www.Realtor.com and www.REColorado.com. All real estate agents' listings get downloaded to these sites automatically. They might be a couple of days behind, but they're a good anonymous way to get your toes wet.
Then prowl the neighborhoods - For some people, the neighborhood is the most important thing. Some like a 'hip, trendy' feel, some want the best schools, some are interested in being able to walk to stores and parks. So drive around, *visit open houses, talk to neighbors, check it out at different times of day. Research crime, traffic accidents, schools. Do you like homeowner associations (HOAs), or hate them? If there is an HOA, get on their website. Their newsletters and calendar of events can tell you a lot about life in the neighborhood. If you're looking for investment property, check out how much others are getting for rent.
Or, find a real estate agent who's familiar with the area and tell them what's most important to you. Let them do the leg work.
*Don't forget that the agents at open houses are working for the seller, not you. Be careful what you tell them.Either way, if you narrow your search to a few neighborhoods you'll save a lot of time. After all, how great is any deal if you end up too far from work, or your kids have to change schools, or your ex-spouse lives next door?
Finally, prowl the houses.
It won't take long to come with a list of houses to go see. Keep good records. It's easy to get them all mixed up in your head. Rate each house, and take notes. Most you'll be able to eliminate immediately. Try to keep only two or three contenders at a time. If you add a new favorite, eliminate one of the others.
When you're ready to make an offer you'll need to consider current and historical absorption rate, days on market, percent of distressed sales, and how long the particular house has been listed. Make an aggressive offer, but not one that's so low the seller will find it ridiculous and offensive. The lower your offer is, the more important it is to sweeten it in some other way. (Read my previous post for more on that.)
In my area, most sales close at about 97% of the price they were listed at. That means, most don't sell if they're listed too high, only when the price is lowered to where it should be. So if you find one that's simply listed too high, and you want to be the first offer on the table when the seller realizes he needs to come down, write an offer. Stipulate that the offer is good until you rescind it. Get it in front of the seller, with a condition that allows you to keep looking and make other offers, of course.
To see this entire series,start here.
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(If you haven't read my article on how to create your shopping list, click here.)
For most people, getting the best deal means getting the house they want at the best price possible, with the smoothest transaction possible. If it means something more than that to you, take the time to write out exactly what your goals are. Then share that information with your real estate agent, if you're working with one.
There are lots of great deals out there – here's how to make sure you're getting yours at the best price possible.
I'll bet you thought #3 was the only thing, right?
I'm going to move quickly through each step. If you have questions or want more details or examples, please feel to email or call me.
Step 1 was covered in previous posts.
Step 2 -Whether you're planning to 'fix & flip' or to live in the house a number of years, the question of future value is very important. No one can tell the future, but there are ways to tell what the trend is currently.
You need to examine the absorption rate, days on market, percent of owner-occupied vs rentals, and price trend. Then, compare those numbers to the history of the area. Don't rely on nation-wide or state-wide statistics or news releases, they may be completely different. (A good real estate agent can help you with all these statistics.)
Step 3 - To determine the right amount to offer, examine recent sales for nearby houses in a similar condition and with similar features. Not all buyer's agents will do this market analysis for their clients, but hopefully you've found one who will.
If the trend is that prices are dropping, make your offer lower than similar homes have sold. How much lower depends on how long the house has been on the market, does it have more or fewer features than most houses in the neighborhood, seller motivation, is it bank-owned or a short sale, has there been a recent price drop, how much interest is there in this property, and how badly do you want it.
If the trend is that prices are increasing, make your offer equal to the lowest price a similar house has recently sold for. (Note: 'similar' includes condition, location, special features such as view, etc., not just size and number of bedrooms.)
In my local market, there's a few areas where prices have started to rise, and there's a large portion of the market that seems to have stabilized. But even in those areas I advise caution.
If you're buying a house as an investment, it's essential you get the best price and agressive technique is paramount. If you're buying a family home that you could stay in for a number of years, how badly you want the house is an important factor that you need to take seriously.
Step 4 - making your offer as appealing as possible takes some finesse, especially if your offer is low or you're asking the seller to pay your closing costs.
Some ways to do it include finding out when the seller wants to close and using that date in the offer, commit to get the inspection out of the way right away, include a letter from a lender stating that you can get the loan*, use the correct forms and fill them out properly and clearly**, eliminating as many of the standard contingencies as possible, finding an agent who'll go to bat for you rather than just faxing it in and waiting for a response.
Often times, there are other creative ways to make your offer appealing which vary from one situation to the next. It just takes some creativity and willingness to work a little harder.
Step 5 - It seems obvious to say 'Make Your Offer,' but I've heard of many buyers who lost out just because they hesitated. Yes, the market is changing - right now, local inventory is down 25%. So it's likely you're not the only party interested in any particular house.
If the house came on the market already priced to get attention, or if you're looking for something unique and found one that fits the bill, make the offer asap.
The point I want you to understand is, get that house under contract. Here in Colorado the commission-approved contract heavily favors the buyer. You have much more control over the situation after you get the house under contract. Until then, you've got nada.
* Some lender letters are better than others. Make sure yours is a strong one.
** If you're working with an agent, they should take the time to go over every line on the offer with you until you understand each one.
Read the first post in this series.
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First, list the features you'll be looking for. Read over your list and decide which features are 'must-haves', which are 'strongly want', and which are 'would be nice'.
This task will be fun, but could also be harder than you think when you get down to priorities. The 'must have' list is what will keep you out of trouble when you start looking at homes. It will help you keep your emotions in check when you see a 'pretty sparkly' that doesn't even meet your most basic needs, but you still find yourself wanting to move into it tomorrow.
There's something called staging, which is setting up a house to look its best for showings, even if it's not the way the owners usually live in it. Staging is not a bad thing - it's simply evidence of a listing agent doing their job and a motivated seller presenting the home in its best light. But staged homes look so much nicer than the rest, you can be tempted to overlook the fact that it doesn't have that one extra bedroom, or the dining room your family needs.
This temptation is even more troublesome if you don't have your own agent helping you. After all, if you're prowling open houses or new construction on your own, it's easy to forget that the agent you meet there is working for the seller, not you.
The 'must haves' list will be different for someone buying their first home than for a move-up buyer. After all, getting out of living in someone else's house and into your own is a huge victory in itself, and you might be more flexible on your 'must have' list. But if you basically like where you live and you're looking for more space or maybe something in a better school district, you might have a longer 'must have' list. In other words, there has to be more motivation for you to leave a home you basically enjoy.
To determine if a feature belongs on the 'must have' list, ask yourself, "If I can't get this feature, would I be just as happy staying where I am?" A 'yes' answer means it belongs on the 'must have' list.
Another question to 'qualify' your features is, "Is it worth all the trouble of getting a loan and moving if I can't have this?" If the answer is 'no', that feature belongs on the 'must have' list.
The 'strongly want' list is where the features go that aren't 'deal breakers', but definitely are things you really look forward to.
For instance, if you bump heads with someone else every morning when brushing your teeth, a master bath with two sinks might go on this list. These should be items you've brought up in conversations in the past, "I'd really wish we had . . . "
The 'strongly want list' should contain things that would sway you to choose a house that had them over a house that didn't.
The 'would be nice' list contains the things you've seen in your friends' homes and said, "That would be nice!" These things would thrill you if they could be had in your price range, but you still wouldn't hesitate to make an offer on a house that didn't have them.
And now, I think this post is as long as it should be, so I'm going to save step 2 for tomorrow. Besides, you have plenty of 'homework' to get started on!
Read the first article in this series by clicking here.
Read the third article in this series by clicking here.Subscribe to my blog using the button to the right.
Everyone’s heard what a great time it is to buy a house. “It’s a buyer’s market,” the headlines shout. “Banks are desperate to unload foreclosures!”
But you’re a smart person – you know that even in this climate, many things can stand in the way of getting that one home that’s right for you. 
Don’t let that happen. There’s no need to miss out on the joy and satisfaction of moving day, when all the hard work pays off.
I’m here to tell you – you can avoid the pitfalls, find and close on your new home in a matter of weeks. Here’s how . . .
The planning stage is fun – but don’t get bogged down here.
Proper preparation means getting your finances ready. This is not a step to skip, or skimp on.
Prowl the internet, prowl the neighborhoods, prowl each house. This can be time-consuming with so many available homes.
Pounce on it when you find it. Many people, their minds full of stories about how favorable the market is for buyers, are shocked and heartbroken when they delay, and then lose ‘their’ house to someone quicker.
That’s a skimpy little outline, I know. But this is a blog post, not a novel. I’ll detail the planning step in tomorrow’s post, and the preparation step the next day, and … well you get the idea! And I promise to share the secrets I’ve learned along the way.
Be sure to subscribe so you’ll get the whole story.
Read the second article in this series by clicking here.
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'Amazing Arvada' is the name of the souvenir map I picked up while strolling the historic Olde Town Arvada. It's a lot of fun to look at, even for people who've lived here as long as I have. If you're new or considering moving here, you'd probably enjoy having one too. It gives you a real feel for what our small town has to offer.
Situated between Denver and Boulder, Colorado, is our friendly community, packed full of entertainment, restaurants, recreation, and history. People who live here, tend to love it here. Lots of parks, trails, community events, lakes, and history. I'd be surprised if you can't find something new to do right in town.
If you'd like a copy of the souvenir map, pick one up at almost any merchant in Olde Town. If you're not a local (yet!), just shoot me an email or phone call and I'll mail one off to you. Moving into a new community is about more than the house you choose and the the neighborhood and schools it brings into your life. When you move to Arvada you get so much more!
Of course, Arvada welcomes visitors from the nearby communities too. It's just a few minutes' drive from Westminster, Broomfield, Thornton, Northglenn, Golden, Wheat Ridge and Lakewood. Even Denverites might enjoy an afternoon away from the hustle and bustle of the city.
If you're interested in buying a house in Arvada, you can find everything from Victorians near Olde Town to new construction in pocket neighborhoods sprinkled throughout the area. The newest neighborhoods are west and north, there are neighborhoods built in the 50's and 60's nearer the heart, and the 70's in between. See my post on the neighborhoods of Lake Arbor, Pomona Lakes, Five Parks, Wyndham Park, and more to come.
If you're interested in homes between Denver and Boulder, such as the lovely town of Arvada, Golden, Broomfield, Westminster, Lafayette, or Thornton, a general rule is that properties get more expensive as you get closer to Denver or Boulder, and closer to the mountains (west of Denver). You can get a house for less money if you buy further east, which is also nearer the airport. So if you were looking at a similar house in Thornton it would likely cost less than in Arvada, but it would cost more in Golden. Arvada's Olde Town has Victorian-era homes, the neighborhoods get newer as you move away from city center.
Click here to read about Arvada's Old Towne area.
The City of Arvada has an award-winning website.
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I help people buy homes and sell homes in Westminster,Arvada, Golden,Broomfield, Thornton,Longmont,Louisville CO;only 3 buyers and 3 sellers at a time so I can serve you in a relaxed, friendly manner.
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