Colorado real estate is a solid investment, with the state’s low property taxes and high traditional rental income. Colorado was ranked number three for its lower rates on residential properties in 2020, and eighth best in terms of Airbnb rentals. With a buyer’s market and home values on the rise, now is an excellent time to be looking for property. Not only can you find something that fits your budget, but there are also benefits of being able to make money off renting or reselling it later down the line when prices go up even higher!
Buying a house in Colorado relies on industry standards, and these are important considerations to factor into your purchasing decisions. Of course, your lender will look at your credit rating and ask about any outstanding loans or debts that you might have. Your credit score should be 620 or higher, and you need to make sure that your debt-to-income ratio is no more than 36%. Have your financial documentation in order and ready for inspection including proof of income, tax returns, bank statements. You will need to obtain a home appraisal to determine the home’s value and have a downpayment ready to pay at closing.
Whether you want to take advantage of a market trend or not, the housing timeline is affected by the weather. For example, in Boulder there are significantly less homes for sale during November than June due to the cold climate. Target the warmer month for the best inventory. This doesn’t mean it’s impossible to buy a home here in winter, but rather that fewer options are available.
Purchasing a home without visiting it is not ideal. Thankfully, technology today makes the job much easier when house hunting in person isn’t an option. When buying out of state, keep in mind what you’ll have to consider when making an offer on a house you haven’t seen. Although pictures may give a clear idea about the property from listing photos and descriptions, they can be deceiving. If you really want to buy that out-of-state house and can’t visit yourself, send a trusted representative, such as a trusted Boulder realtor from Burgess Group, to look at it for you.
Consider a Colorado Housing and Finance Authority (CHFA) loan as an alternate form of financing compared to traditional lending institutions. They have lower interest rates on mortgage insurance policies than those typically found in conventional mortgages, and offer down payment assistance programs or deferred-interest. Keep in mind also that Colorado requires home buyers to receive a “Lender Letter” from your lender proving you’re pre-approved for funding up to a certain amount. The letter is provided at the time of your offer and serves as evidence that you have the money needed, making it easier to purchase Colorado real estate.
Homes for sale in Boulder range through a variety of sizes and styles, from small starter homes to sprawling luxury homes. The majority of homes land squarely in a middle bracket with 1-2 car garages and comfortable lawns. Aside from these highly sought-after Boulder homes for sale, there are apartments for rent and townhouses/condominiums for lease.
As of the summer of 2021, the average price of a Boulder home is $945,432. This value is seasonally adjusted and of course fluctuates. Boulder home values have gone up 18.4% over the past year.
Boulder is an award-winning city with many honors including being #1 on the 10 happiest cities list, #1 on the Brainiest Cities List, and #1 on Forbes America’s Top 25 Towns list. Attractions in Boulder include thousands of acres of parkland, numerous historic sites, and a variety of cultural events and venues. The atmosphere in Boulder is alive with creativity and culture.
Overall Cost vs. National avg is 11% higher. Housing Cost vs. National avg is 10% higher. Entertainment Cost vs. National avg is 9% higher. Utilities Cost vs. National avg is 2% higher. Boulder employs the largest % of the workforce in the area. There are 42,376 households. The average build year for homes is 1972. The population density per square mile is 4,028. The % of adults with a bachelor’s degree is 33%. The average length of household occupancy is 18 years. The % of households with children is 17%.
Don’t get derailed before you even get started, so get pre-approved! This gives you an advantage in Colorado’s sellers market and can also help you gauge your budget realistically. Don’t aim too high in terms of price, and don’t overlook additional monthly costs like HOA fees, maintenance, utilities, etc. Make sure you partner with a Boulder realtor who represents you as the buyer instead of the seller’s agent; We can advocate for you! Don’t skip the home inspection process, and lastly, don’t run up a credit card bill prior to lending approval or go on spending sprees; Your mortgage lender may reconsider your loan approval!
There are different schools of thought. Of course, if you buy your new home before selling your current home, you have a home to move into. If negotiations drag out, you’re not forced to look for other accommodations. Also, if you buy your new home first, it won’t be contingent on the sale of your old home going through. On the flip side, the risk is that you sell your current home before you can close on your new property. This means you may be living somewhere temporarily for a bit!
By all means…Yes!! The best way to have YOUR interests looked out for is by partnering with a Boulder realtor. You want a realtor to represent YOU, not a realtor tied to the seller, because the seller’s agent has different incentives.