What to Ask When Buying a House in Denver
By Alex Mikoulianitch on November 16, 2024
If you’re considering buying a home in Denver, you’ve probably got visions of proximity to the mountains, craft breweries, or gorgeous sunsets on the horizon.
But before you dive in, it’s essential to get a handle on Denver’s unique real estate market, neighborhoods, and the ins and outs of homeownership here. Asking the right questions will guide you through this competitive market and help ensure you find the perfect home that fits your lifestyle and budget.
After all, buying a home is a significant decision, and a little preparation can go a long way.
So, what should you be asking as you embark on this journey? Below, we’ll review the key questions every Denver homebuyer should consider to make an informed, confident choice in the Mile High City.
Questions to ask when buying a house in Denver
- What is the current state of the Denver market?
- Which neighborhood fits me best?
- Should I work with a buyer’s agent?
- How do I save when buying a home in Denver?
- Can I get a fully underwritten pre-approval?
- What is the home’s age and condition?
- Are there any environmental factors to consider?
- What will my commute options look like?
- Why is the seller listing the home?
What is the current state of the Denver market?
Well, first things first — understanding whether it’s a buyer’s market or seller’s market will make a world of difference. In a seller’s market, you can expect more competition, higher prices, and less room for negotiation. In a buyer’s market, on the other hand, you might have a bit more leverage when making offers amid a larger inventory of homes for sale.
Another factor to consider is the speed of the market. Homes in Denver tend to sell fast, often within days or weeks of being listed. So, knowing the average listing-to-sale timeline and how long you might have to decide is crucial. A quick strategy and pre-approval can be incredibly beneficial, so you’re ready to jump on the right property as soon as it hits the market.
Lastly, understand recent price trends. Denver’s market can fluctuate, especially in popular areas, so check if prices are trending up, holding steady, or cooling slightly. This will give you insight into the best time to buy and help you budget accordingly.
Which neighborhood fits me best?
Denver isn’t just a city; it’s a collection of diverse neighborhoods with unique character, charm, and vibe. Do you dream of being in the heart of it all, surrounded by bustling breweries, art galleries, and eateries? Then LoDo (Lower Downtown) or Capitol Hill might be calling your name. These neighborhoods are brimming with urban appeal and are perfect for those who thrive in a lively setting.
Or maybe you’re after a quieter atmosphere with green spaces galore. If that’s the case, consider neighborhoods like the Highlands or Washington Park. Both offer easy access to parks, local coffee shops, and a community feel, all within a short commute to downtown Denver.
And don’t forget to ask about any upcoming development projects or new amenities in your chosen neighborhood. The area may feel perfect now, but a planned high-rise or new highway could change things. A quick chat with a local realtor or a visit to Denver’s city planning office could offer valuable insights into the future of your potential new neighborhood.
Should I work with a buyer’s agent?
A buyer’s agent brings valuable expertise and can help you find the right home, negotiate better terms, and even discover listings that haven’t yet hit the market. Since they’re familiar with local trends and know how to navigate Denver’s neighborhoods, they’re well-equipped to steer you in the right direction and avoid potential pitfalls.
One of the major perks of having a buyer’s agent is that they’re skilled negotiators. In a fierce market competition, they’ll advocate for your best interests, helping you navigate counteroffers, appraisal contingencies, and any sticky points in the process. They’ll also help you craft a competitive and appealing offer to the seller, giving you a leg up in a multiple-offer situation.
And here’s another reason to consider working with an agent: the right broker can offer you a commission rebate in a scenario where the seller offers a concession to pay the buyer’s agent fee.
How do I save when buying a home in Denver?
Affordability in real estate can be a never-ending hurdle for buyers. Working with brokerages that offer commission rebates or a lower buyer agent commission rate can be a game-changer for buyers looking for extra savings when buying a home.
For instance, Prevu offers the largest commission rebate for Denver homebuyers, allowing aspiring homeowners to potentially receive up to 1% of a home’s purchase price cash back if a seller offers to pay the buyer’s agent commission.
While each transaction scenario can be different, it’s essential to explore brokerages that offer rebates in case the particular homebuying scenario lines up to take advantage of a rebate. These extra funds can be invaluable in offsetting expensive closing costs, renovating or furnishing your new home, or simply replenishing your savings.
Can I get a fully underwritten pre-approval?
A fully underwritten pre-approval means that a lender has thoroughly reviewed your finances, including verifying income, credit, and assets. Instead of the standard pre-approval letter, this takes things further by essentially pre-approving your loan even before you’ve found a home. This can be a major plus when you’re ready to make an offer because sellers know your financing is rock-solid.
So why consider it? In Denver, where homes can go under contract quickly, being fully underwritten can be a game-changer. Sellers may prefer your offer over others, even in a bidding war, because it reduces the risk of financing falling through. Plus, it can make the closing process faster, which is often attractive to sellers who want to move things along.
Talk to a lender who offers this type of pre-approval, as not all lenders do. Your lender will request documents and information to complete the underwriting upfront, so be prepared for more legwork.
What is the home’s age and condition?
Asking about a home’s age and condition can reveal potential issues or maintenance needs you might not initially consider.
For instance, if you’re looking at an older home in a neighborhood like Capitol Hill, you’ll want to ask if major systems like plumbing, electrical, and HVAC have been updated. Many historic homes have character but can also have quirks that require extra attention. Make sure to get a list of recent upgrades and repairs and ask if any upcoming projects might be needed to keep the home in tip-top shape.
Energy efficiency is another factor, especially with Denver’s temperature swings. Older windows or poor insulation could mean higher energy bills. Check if the home has been updated with energy-efficient windows, insulation, or heating and cooling systems. A well-insulated, energy-efficient home can make a big difference in comfort and cost in a city that can see snow and sunshine on the same day.
Are there any environmental factors to consider?
Denver’s high altitude and sometimes erratic weather create unique environmental challenges, so it’s wise to ask questions addressing these factors. Air quality, for example, can be a concern, especially during wildfire season when smoke from surrounding areas can drift into the city. Homes with sound ventilation systems can help improve indoor air quality and make those days with smoky skies more bearable.
The altitude itself also plays a role. High-altitude living can change for some, especially if you’re moving from lower elevations. Ask if the home has features that help with ventilation and air circulation, as these can make your transition to Denver’s "mile-high" environment more comfortable.
Radon is another consideration in Colorado. Because radon is a naturally occurring gas that can accumulate in homes, especially in basements, it’s wise to ask if the home has been tested and if a radon mitigation system is in place. It’s a common enough issue in the area that many homes are equipped with radon systems, but it’s always better to check and be safe.
What will my commute options look like?
Denver’s traffic may not be as notorious as L.A.’s, but it can still get congested, especially during peak hours. If you commute to work, school, or elsewhere, asking about commute times and transportation options is crucial. Some neighborhoods are more connected than others, and Denver’s light rail system is an excellent resource if you’re close enough to a station.
For those who travel often, ask about the proximity to Denver International Airport. Living closer to major highways like I-25 or I-70 can make a big difference for those who frequently fly in and out.
Biking is also popular in Denver, and many neighborhoods have dedicated bike lanes and access to the city’s bike-sharing program. If an active lifestyle is part of your plan, ask about nearby biking and pedestrian pathways to quickly access work or nearby areas without driving.
Why is the seller listing the home?
Knowing why a seller is listing their home can give you valuable insights that may improve your negotiation power. Are they moving for a new job? Downsizing? Or maybe they’re facing financial pressure? Each scenario can affect the seller’s timeline, flexibility on price, and openness to concessions. If they’re in a hurry to sell, you may have room to negotiate on price or even request repairs and other perks to sweeten the deal.
So, how can you uncover this key information? One way is to ask directly through your buyer’s agent. A skilled agent can engage the seller’s agent in conversation to learn more about their motivations and timelines. The seller's agent may not disclose anything, but it never hurts to ask.
A good buyer's agent will pick up on subtle cues that might reveal the seller’s level of urgency, helping you craft a more appealing offer. Knowing these details could even allow you to adjust your offer terms to align with the seller’s goals, potentially making your offer stand out.
