Expert Tips for Buying a House in Boulder, CO
By Alex Mikoulianitch on July 01, 2024
One of the standout perks home buyers can look forward to when exploring places to live in Colorado is a diverse selection of cities and towns to call home.
Denver may be the heart of it all, but the Mile High City isn’t the only place to steal all the thunder when it comes to some of Colorado's best places to live. Boulder has established itself comfortably among the best Colorado offers, and buyers trek to explore its lush outdoor offerings and laid-back lifestyle.
You shouldn’t have much trouble falling in love with the Boulder area, but buying a house always presents a challenge, no matter how much you enjoy the city you’ll soon call home.
Below, the Prevu Real Estate team will guide you through all the essential steps to help you organize yourself and put together a plan that will make buying a home in Boulder much easier, including choosing the right neighborhood and saving money when you buy.
Tips for buying a house in Boulder
- Get pre-approved for a mortgage
- Set up an organized budget
- Work with an experienced buyer’s agent
- Take advantage of commission rebates
- Decide on a neighborhood
- Move quickly to make an offer
- Take care of due diligence
- Final steps and closing
Get pre-approved for a mortgage
Getting pre-approved for a mortgage – unless you’re choosing to make an all-cash offer – should be the first thing you do before house hunting in Boulder. This crucial step helps you understand your budget and signals to sellers that you’re a serious buyer ready to move forward with the transaction.
First, explore different kinds of lenders, as each offers different rates and terms. If you have time to spare, use it accordingly during this step, as you want to be sure you’re getting the best rate possible. As you do so, get organized by preparing all your financial documents. This will help speed up the process once you’re ready to choose a lender.
The pre-approval process begins with a lender reviewing your financial background, including your credit score, income, and debt-to-income ratio. The result of the review will give you a solid idea of the loan amount you will be able to finance - as well as estimated monthly payments for a fixed rate mortgage or adjustable rate mortgage, depending on your needs.
You can also take your pre-approval to an even more secure level by getting it fully underwritten.
Your lender will be even more thorough when verifying all your financial documents, and the process can be lengthier. But you will be underwritten for a loan amount before making an offer. Sellers will be relieved to see this level of financial preparedness as it means there’s a very small chance of any financing issues down the line, and you can close quicker once you select a property.
Set up an organized budget
Your immediate next step after getting pre-approved should be setting up a clear financial plan.
You can use your mortgage pre-approval amount as a framework for your house-hunting budget. A good idea is to set it slightly below this amount, as this will give you a financial cushion for unexpected costs.
From there, you can start outlining how much you can set aside for a down payment - which typically ranges from 10% to 20% of the purchase price - depending on the type of loan and your lender’s requirements.
It’s easy to loosen up when you have the down payment ready, but this is when you want to go even further with structuring your budget. The extra effort will be your saving grace if unexpected expenses arise later.
Do your math on closing costs, which can include appraisal fees, inspection fees, title insurance, attorney fees, and mortgage origination fees. Buyer closing costs in Colorado often range from 2% to 5% of the sale price. For a $900,000 home, you might need an additional $18,000 to $45,000.
The competitive market for Boulder County real estate means bidding wars are common, so having a financial cushion for these situations is wise. Setting aside extra funds can allow you to increase your offer if you find yourself in a bidding war, potentially securing your dream home over a higher bid.
Work with an experienced buyer’s agent
Navigating Boulder real estate can feel like scaling one of its famous Flatirons—daunting, to say the least. This is where an experienced buyer’s agent becomes your best ally, guiding you through every twist and turn with local knowledge.
An experienced buyer’s agent will know Boulder’s market intimately. They can provide invaluable insights into the best neighborhoods, market trends, listing information, and property values. Whether you’re seeking a cozy bungalow in Mapleton Hill or a modern condo in Central Boulder, your agent can help you find a home that fits your lifestyle and budget.
One of the biggest advantages of working with a seasoned agent is their access to exclusive listings. They often know about properties that haven’t yet hit the market, giving you a competitive edge.
They’ll also be an invaluable tool during one of the most critical parts of the transaction: negotiations. When making an offer, they’ll use their market knowledge to help you craft a competitive bid while guiding you on the offer price, contingencies, and terms, ensuring you get the best possible deal while protecting your interests.
Lastly, your buyer’s agent can provide you with one of the easiest ways to save money when you buy a house in Boulder: commission rebates.
Take advantage of a commission rebate
Boulder may be a bit farther from Denver’s hectic pace, but the real estate action can still challenge affordability. That’s where commission rebates come in.
In simple terms, a commission rebate – or homebuyer rebate – is a portion of your buyer’s agent’s commission fee returned to you in the form of extra savings once you successfully close on a home. You’ll need to work with a brokerage specializing in rebates to take advantage of these savings.
Prevu currently offers the largest rebate in Colorado, providing buyers with a chance to secure up to 1% of their home’s final purchase price via the brokerage’s Smart Buyer Rebate. The firm leverages investment in its digital home buying platform and expert salaried agents to unlock significant rebates for buyers, helping them achieve that elusive affordability in Boulder’s housing market.
The platform provides access to a personalized home search tool that makes exploring listings more customizable and precise. Buyers can then connect directly with a dedicated buyer’s agent and explore listings with accurate estimates of potential rebates they can expect.
The savings can help offset those expensive closing costs we mentioned earlier, replenish your funds, or set up a renovation or furniture budget for your new home.
Decide on a neighborhood
Choosing the right neighborhood in Boulder is a bit like picking one of its many perfect hiking trails—each one offers its own unique scenery, vibe, and amenities.
First, consider your lifestyle and priorities. Are you looking for a lively area with many restaurants, shops, and cultural activities? With its vibrant Pearl Street Mall, Central Boulder might be just what you’re looking for. This area is a hub of activity, offering a mix of historic charm and modern conveniences, perfect for those who love to be in the center of the action.
If outdoor activities and a strong sense of community are high on your list, neighborhoods like North Boulder (NoBo) or the idyllic Mapleton Hill could be ideal. NoBo boasts easy access to hiking and biking trails, a thriving arts scene, and local businesses. On the other hand, Mapleton Hill is known for its historic homes, lush greenery, and proximity to the foothills, offering a tranquil retreat with a touch of old-world charm.
For those seeking more space, areas like Chautauqua and South Boulder (SoBo) offer a choice of schools, parks, and family-friendly amenities. These neighborhoods provide a suburban feel while close to Boulder's many attractions. You’ll find spacious single family homes, quiet streets, and a strong sense of community.
When deciding where you want to live in Boulder, it’s also important to consider your daily commute and transportation needs. Boulder's excellent public transportation system and extensive bike paths make getting around without a car easy. Still, proximity to major roads and highways can be a consideration if you need to travel frequently.
Spend some time exploring different sections of town at various times of the day. Visit local parks, dine at neighborhood restaurants, and talk to residents to get a feel for the community. This firsthand experience can be invaluable in helping you decide which area best fits your needs and lifestyle.
Move quickly to make an offer
First, understand that Boulder’s housing market can be competitive. Desirable homes can receive multiple offers within days—or even hours—of being listed. In such a fast-paced environment, hesitation can cost you. Once you’ve found a home that ticks all your boxes, it’s crucial to move swiftly.
Being prepared is half the battle. Before you even start touring homes, ensure you have your mortgage pre-approval in hand. This shows sellers that you’re serious and financially capable of purchasing their property. A pre-approval also streamlines the offer process, allowing you to focus on the deal's details rather than scrambling to get your finances in order.
Work closely with your buyer’s agent. They can provide invaluable insights into the local market, helping you determine a competitive offer price. Your agent will also guide you through the paperwork and legalities, ensuring everything is for a prompt submission. Having an agent who knows the ins and outs of Boulder’s market can give you a significant edge.
Consider including attractive terms to make your bid stand out when crafting your offer. Offering a larger earnest money deposit, proposing a quick closing timeline, or being flexible with the seller’s moving schedule can make your offer more appealing. In some cases, writing a personal letter to the seller about why you love their home can add a human touch that resonates.
Once your offer is ready, submit it as soon as possible. Time is of the essence, and delays can mean losing out to other buyers. Your agent will present your offer promptly and follow up to convey your enthusiasm and seriousness about purchasing the home.
After submitting your offer, be prepared to respond quickly to any counter-offers or requests from the seller. Keep your phone close and be ready to make decisions on the fly. Swift communication can keep the momentum going and prevent other buyers from stepping in.
Take care of due diligence
Adequate due diligence is your best defense against potential issues in the future, so make sure you take advantage of this opportunity.
Start by scheduling a professional home inspection. This step is essential. A qualified home inspector will examine the property from top to bottom, checking for structural issues, electrical and plumbing problems, and roof conditions.
Given Boulder’s unique environmental factors, consider additional inspections if necessary. For instance, a radon inspection is wise, as radon levels can be higher in Colorado. Also, check for signs of water damage or flooding, especially if the property is near a creek or low-lying area.
Review the seller’s property disclosures carefully. These documents provide a history of the property, including past repairs, renovations, and any known issues. While the inspection report offers a snapshot, the disclosure forms can give insights into recurring problems or previous damages that might not be immediately visible.
Final steps and closing
Yes, you can start to enjoy that sense of achievement at this point, but don’t let your foot off the gas pedal just yet. Closing can be a hectic process, so stay sharp.
The final walkthrough is one of the most essential steps here; t’s your last chance to ensure that everything is in the contract's agreed-upon condition. Check that any requested repairs have been completed and that no new issues have arisen since your last visit. Confirm that appliances and fixtures are in working order, and ensure the home is clean and ready for move-in.
Next, review the closing disclosure. This document outlines the final terms of your loan, including the loan amount, interest rate, monthly payments, and a detailed breakdown of closing costs. Compare it with your initial loan estimate to ensure everything matches up.
On closing day, you’ll likely meet with the seller, real estate agents, attorneys, and possibly a closing agent or notary. Documents like the deed of transfer, loan agreements, and other legal forms will be signed.
The property officially changes hands once all the documents are set and recorded, and any necessary funds have been transferred.
