Tag: First Time Home Buyers

There comes a point in every home search where you have to make a decision, once you find a home you like. You can go look at the home a second time. You may even have a friend or relative go and look at it with you. Some folks even say that they want to sleep on it, before they make a decision. But eventually you have to decide. Not just one decision but two decisions. The first decision is whether to write an offer on the home. The second is how much to offer if you decide to write an offer on the home.

What to do

Deciding whether to write an offer can be much easier than how much to offer. After all, if your offer is too low, you might lose the house. If it is too high, you might spend years wondering if you overpaid. How do you decide on the right amount to offer? Part of what makes deciding on an offer price so difficult is that most buyers are trying to avoid buyer’s remorse.

Avoid regret

What is buyers remorse? It is the feeling of doubt, anxiety or regret after making an offer or going under contract on a home. It often boils down to wondering whether you paid too much. You may be asking yourself questions like, “did I over pay.” “Should I have offered less?” “Did I just make a huge mistake.” Guess what. The questions that you are asking yourself are very common questions that many buyers ask. Remember, You are making one of the biggest financial decisions of your life. So when trying to decide what to offer on a home, you are also trying to avoid regret.

Trust your agent

How do you feel confident in your decision? The best way to reduce uncertainty is to rely on the advice and experience of your buyers agent. Trust them. They have the experience of assisting many clients in your exact situation. Your agent is part market expert, part negotiator and sometimes part therapist. Have your agent show you what similar homes have sold for. Understand the current market conditions. Before you have your agent write an offer, decide on the highest price you can pay, while still feeling comfortable with your decision. I often tell buyers, offer what you are comfortable with. The right number is the number if someone else offers more, you are okay with them buying the house. Make sure you stay true to your budget.

There is no way to completely eliminate uncertainty when buying a home. Making informed decisions you can feel good about regardless of how things turn out, is one of the best ways to avoid regret.

If you have been wishing that you could buy your first home, there is a good chance you have been seeing the headlines. Reading those headlines would discourage anyone. But as with most things headlines can be different than reality. To be fair, it is not easy for first time home buyers to buy a home. Prices have gone up. Interest rates are higher. And rent doesn’t make it easy to save money for a down payment. So, even if you are doing pretty well financially, it is easy to assume you are not in a position to buy. So, is homeownership really out of reach?

When you are looking at social media it is easy to feel like you are behind where you should be and not doing as well as others. You may also be listening to your co-workers that purchased a home a few years ago. All of these little things can eat away at your confidence and suggest that buying a home is not realistic now. But, you are still curious. What questions should you be asking to find out if home ownership is possible?

How do I find out?

The first question to ask is: Am I in a position to buy a home? It is a pretty simple, straight forward question. But you may not know how to get that question answered. So, the next question you need to ask is: Who would I need to ask to get a clear answer? The best person to ask this question to is a local lender. Find someone that works with first time home buyers. You want someone that will be patient and answer your questions. The ones you have and the questions you do not know to ask. When you call this person, ask them if you can set up an appointment to meet with them. If that is too scary, make a phone call and ask if they can send you an online loan application. It doesn’t cost anything to find out.

Who do I ask?

The next question, if you are still nervous to make the phone call is to ask yourself, what is the worst thing that can happen if I try to find out? By making the phone call you are not committing to anything. You are working to get answers to your questions. The worst that could happen is you could confirm that you are not quite ready. If you are not quite ready, you can make a plan. The plan may be to save more money for your down payment. You may need to improve your credit. You can find out what is needed to make that happen.

What if the answer to the question is that you are ready to buy a home? This does not mean that you need to rush out and buy something tomorrow. It means that you now know where you stand and that you have options. You can not decide what timing works for you.

If you have been feeling like buying your first home is out of reach you are not alone. Between rising prices, higher interest rates and what the headlines are saying, you may not feel like you can. If you can have a quick conversation with a mortgage lender, you can have a clear picture of where you stand. You may find out you are closer than you think.

If you have been shopping for a new place to call home you may have noticed that times have changed. It used to be that you would view a few photos, read the remarks and set up an appointment to see the house in person. Today, as a buyer, you can explore virtual tours, floor plans, flood maps, walkability scores, noise rankings and commute times before you ever set foot inside a home. Well, if that is not enough information, now you can explore how much sunlight a home gets during the day. We have all read the Realtor’s description of the home. They talk about how light and bright it is and how the home is flooded with natural light. Now you can verify that information. You can figure out the sun score and see if you think the home will work for you.

Where do I find sun scores?

When can you get this information? Redfin.com has launched the sun score to learn how much natural light a home received room by room and hour by hour using AI and geospatial data. To be fair, most buyer really do care about this. The amount of sunlight a home gets can impact the feel of a home. Sunlight preferences are subjective. Not everyone wants a light and bright home. Some people want a home with shade, cooler rooms, mature trees and a sense of privacy. The sun score can help these people find their perfect home too.

You can change the score

Some might say that this is going to cause buyers to over think things. You can change a homes sun score by trimming trees, opening blinds, repainting rooms to brighter colors and even improve lighting. All of these things can affect how light and bright a home is. Also, how much sunlight a home gets overall depends on a huge number of factors that have little to do with the home itself. The major factors are the climate, weather patterns, surrounding terrain, time of year and even the direction the home faces.

As a buyer today you have access to more data, rankings and scoring systems than ever before. Tools like this can be very useful, however, they might cause you to over think your decision. Make sure that you keep in mind the bigger priorities like the layout, affordability and overall fit of the home. Everyone will have preferences. The important thing to remember is no home is perfect. You can make it your own once you move in.

We have all heard the real estate saying, “location, location, location.” The saying reminds us that the location of a property is one of the most important things to look at when purchasing a property. Location is usually one of the first things, along with budget that a buyer talks about. They may want to live close to family or have a short commute to work or school. But how do you pick a neighborhood to live in?

You are not just buying real estate

Buying a home is not just purchasing real estate. It is also choosing a lifestyle that come with the neighborhood. Each neighborhood has its own vibe and attributes. But how do you find out the pros and cons of a neighborhood? Let your real estate agent be your guide. A good agent should act like a local guide. They can offer honest insight not on just the attributes but also any drawbacks to consider.

Do your research

Another good source of information is chatting with people that provide services in the area that you are interested in. Stop at the local, neighborhood coffee shop. Ask the servers some questions. If you are a god owner, take your dog for a walk through the neighborhood that you are considering. Ask a fellow dog walker some questions. Here are some ideas. “How long have you lived in the neighborhood?” “How has the neighborhood changed over the years?” “Is there anything you wished you had known before you moved into the neighborhood?” “What is your favorite thing about living where you do?” These questions delivered in a lighthearted manner, can give you some great insight into the community. They can also give you a feel for what it might be like to live there.

Take a walk

While you are on your dog walk notice how the homes are maintained. Are the streets lined with trees or graffiti? Stop in some of the neighborhood shops in the neighborhood. Are the stores thriving and well maintained or are many retail spaces vacant. This leisurely walk through the area can give you a feel for the community energy.

Check out social media

Check out the neighborhood that you are considering on social media. This can provide you with some unfiltered insight into the areas character and culture. What does the neighborhood prioritize? What are the complaints on social media? Do their values align with yours? Social media can give you information on day-to-day happenings, special events and local recommendations.

Choose a neighborhood is choosing a lifestyle. Like any big decision it deserves research and some reflection. Remember that no neighborhood is perfect. The goal is not to find perfection but to find a match that feels right to you.

When people talk about why they are renting, rather than buying, the reasons given are not surprising. Interest rates are too high. Prices are too high. But the real reason may be the fear of getting pre-approved for a mortgage. On paper, getting pre-approved seems simple. It doesn’t take long. In the real estate world, it is the first step in the process of buying a home. What isn’t talked about often enough is how emotional this first step can feel for prospective home buyers. It feels like a stranger deciding whether you are worthy of buying a home. If you are worthy, this stranger will tell you how much you can spend. This is only after you provide an incredible amount of personal information. What if you are told no?

Fears are real

First time home buyers fears are real. This process is emotional and that first step can be hard if you have never taken it before. For a real estate agent, asking a buyer if they are pre-approved is routine. To an agent, calling a lender is routine. For the first time home buyer is can feel like walking into a test you did not study for. There is no real way around this first step in the process, unless you have access to a large amount of cash. What are fears and questions about the process?

Questions you may have

Here’s some questions you may have. Is my credit good enough? Do I have enough money saved for a down payment? What do I do if the amount that I am pre-approved for doesn’t match what homes cost in my market? If you are wondering the answers to these questions, you are not alone. These questions can be answered fairly quickly by a lender. The first step is to call a lender. The next step is to submit a loan application. Once the application has been reviewed you will talk with the lender. In some cases you may be told you are not ready yet. If that is the case you will make a plan on how to get to the point that you are pre-approved. The conversation regarding your pre-approval is not a verdict on your worth. It is a point in time look at your situation.

Lender recommendation

Not all lenders are alike. Some are better with first time home buyers than others. All are typically capable of helping a buyer through the process. But it is best to find a lender that understand the human side of the process. Ask Lestel for a recommendation. She can connect you with a lender that is patient, educational and supportive. The right lender does not judge where you are starting. They help you understand where you are and how to get to where you want to be. Remember that getting pre-approved isn’t a judgement or final verdict on your ability to buy a home. It is simply a starting point. It is important to connect with a good lender that can make the process feel less intimidating. Someone that answers questions, sets expectations and provide you with a road map to home ownership.

It is easy to be a casual, potential buyer, looking at new construction. You drive by and are curious about what the builder is building and what the homes are selling for. So, you turn the car around and stop in. You visit with the on-site sales representative. It is very low key. While you are there you do not sign anything. Then, you go home and start thinking about what you saw, if it might work for you and you have questions. You decide to stop in again and get your questions answered. It soon starts to feel very real and you call your agent. Unfortunately when you arrive at the model home, with your agent, you are told that it is too late to get your agent involved. What went wrong?

Builder set the rules

What many buyers do not realize when they visit new construction is that the builder sets the rules for how the rest of the potential transaction will unfold. If a buyer walks into a model home without a realtor, t potentially establishes the buyer as someone working directly with the builder’s sale team. The buyer can be registered to the builder, even though nothing was signed. Once that happens it is difficult, if not impossible to be allowed to bring an outside agent that will represent the buyer. Each situation and builder can be different. Be careful or a casual look may mean you can’t bring your agent to look out for you.

Builders want control

Why does this happen? This happens because builder want to keep control of the process. A builder controls the product, the pricing, the incentives and the timeline. Once a buyer’s agent is introduced that agent adds their voice to the process. That voice is looking out for the buyers interest. It is important to remember that the sales agent’s role is to protect the builder and the builder interest. The agent for the buyer is there to ask the important questions. They are there to advise on contract terms, explain builder add ons, and how incentives may affect the bottomline. Buyer’s agents can help buyers understand where to negotiate, even when things seem fixed.

Negotiations are different

Negotiations on new construction are quite different. An experienced, buyer’s agent knows where those less obvious places are to negotiate and helps the buyers. The role of a buyer’s agent in new construction is to also compare this builder to others nearby. They can help the buyer to evaluate what upgrades pay off at time of resale. In short, new construction may look very straight forward. It is a real estate transaction between buyer and seller. However, the seller has much more experience than the buyer.

If you find yourself wanting to just look at new construction, think before you look and know what the consequences of that “quick look” may be. If you would like to have an agent involved to look out for you best interest, call that agent to go with you before you look. That quick call can preserve options and prevent frustration later.

Many buyers think that spring is the best time to buy a home. This is something they have heard for years. But January is the best time to start your home search. There are several reasons why this is the case.

Why start in January?

Number one reason to start your home search in January is because there is a lot involved in buying a home. There is more than just finding a home that you would like buy. There is the financial preparation. That involves getting pre-approved for mortgage and understanding what you can truly afford. Then there is learning about the local inventory, touring homes, writing offers, negotiating terms and finally the closing. All of this takes time.

It is a buyer’ market now

Another reason for starting the home search in January is that it is finally a buyer’s market. This means that conditions are favorable for buyers. We are not sure that this will last into the spring. Right now in many areas in the United States there are 37% more sellers than buyers. that is one of the largest gaps since 2013. That gap gives buyers the opportunity to negotiate and even asked for seller concessions. This also means more selection for homes to buy. The buyer’s market also holds true for the real estate market in Northern Colorado. Getting started in January gives you the opportunity to enjoy conditions that may look very different in just a few months.

Talk to an agent first

What is the first thing to do if you are interested in purchasing a home in 2026? It is not to start scrolling listings or heading to open houses. It is time to have a conversation with a real estate agent. Set up an appointment so you can talk about the process of purchasing home. It will be important to have you questions answered and concerns addressed at this appointment. You can discuss your needs and wants in a home. And finally, and very importantly you can learn strategies to make your offer stand out and get accepted. Your agent can help with a timeline based, on your personal situation and the current market conditions. Lastly, they can recommend a lender for you to connect with to help you with the financial preparation. That lender can assist you in getting pre-approved so you are ready to purchase your home.

If you are even thinking of purchasing in 2026, getting the ball rolling in January can put you in a much stronger position. Remember, the first step is not scrolling on Realtor.com or Zillow. It is instead meeting with a real estate agent who can explain the local market and help you set goals. Lestel would love to be your agent. Give her a call.

In real estate we know that spring is often the best time to sell. Buyers are often told that it is the best time to buy a home. Buyers love that their kids are about to be on summer break. But what about buying in the fall?

Fall flexibility

Fall can be a quieter season with more flexibility. It can be an advantageous time from for home buyers. Seller who listed their home for sale in the spring and have not yet sold, are getting anxious. Furthermore, the sellers that are not very motivated often pull their homes off the market once fall arrives. This still leaves a good amount of inventory. This fall after a tough summer with sluggish home sales, it is a good time for well-prepared buyer to be in the market.

Less competition

Fall also means lower buyer competition and more negotiating power for buyers. Additionally, there are many sellers that have the mind set that they want to close before the end of the year. That can provide buyers with additional leverage in negotiating. Less competition means fewer bidding wars and more power to negotiate the extras. Extras can include closing cast, home warranties and repairs at time of inspection. Here’s an example. A seller knows that they need to replace the roof on their home. The house that they are selling has been on the market all summer without selling. The seller said they would negotiate the $30,000 cost of the roof. Now, when the seller received and offer, they say they will be happy to replace the roof for the buyer. No negotiation needed. What a difference a few months and fall weather can make in sellers attitudes.

Ask your lender for a deal

In addition to getting deals from sellers, buyers in the fall, may be able to look to their lender for savings. Lenders can offer closing cost incentives too. Many financial institutions set year-end volume goals. These can translate into savings for fall buyers. Many times these deals are not advertised and all a buyer needs to do is ask and close before the end of the year. Some lenders offer seasonal deals like discounts on underwriting fees, rate buy-downs or waiving processing fees. Be sure to ask your lender what deals they might be offering.

Builders are ready to deal

Another way to save money buying a house in the fall is if you purchase new construction. If you are considering a newly built home, fall might be one of the best times to make your move. This time of year, builders are eager to offload standing inventory before the end of the year. In fact, according to the National Association of Home Builders, 66% of home builders reported using incentives like mortgage rate buy-downs and discount in August. This is the highest number reported in five years.

Remember when shopping for a home that purchase price is important, but it only once part of the deal. Concessions, credits and agreed upon repairs can save thousands of dollars. Don’t forget to ask your lender if there are any special offers if you close your loan before the end of the year. Also consider buying or at least looking at new construction. New home builders may prove to provide some of the best options for fall pricing and incentives. All in all, fall is a great time to purchase a home!

You found the perfect home, made an offer and the seller accepted. You are under contract. Congratulations! I am sure that you are excited. However, when you checked the status of the home you have under contract, it is marked “accepting back-up offers.” What does that mean?

Accepted offer

Once a seller has accepted an offer on their home, it is an an important first step, but there is no guarantee that the transaction will close. During the under contract period, many things can go wrong. The buyer will need to get final approval on their loan, there is the home inspection and the appraisal. Any one of these steps might cause a problem. If a significant problem occurs at any one of these steps, the buyer may cancel the contract. Then the seller must start all over. This is why many MLS listings say, “accepting back-up offers.” But the seller is under contract. So, what does this mean for a seller to accept a back-up offer?

Pending or active back-up

After a seller accepts an offer from a buyer they have two choices. They can have their agent mark their home pending, or active back-up. A home with a pending status does not have any more showings. The seller is hoping and betting that the buyer that has their home under contract will be able to close on their home. However, the other option for the sellers is active back-up. The seller in this situation continues to allow showings and would welcome another offer. But how can they do that you ask? If the seller accepts a second offer, that second offer waits for something to go wrong with the offer in first position. Perhaps the buyer is not able to get a loan or the buyer and seller are not able to negotiate the inspection. If the first offer cancels for any reason, the back-up offer moves into first position and is allowed to proceed in purchasing the home.

Just wait

The role of the offer in back up position is to be patient and wait. That buyer needs to stay in close contact with their agent. As a back-up buyer you keep your fingers crossed and hope that something will go wrong with the first offer. The back-up buyers do nothing but wait. They do not proceeds with their loan or inspections. Remember when submitting a back-up offer, the offer is binding. You will not be able to renegotiate the terms of the contract later. Be prepared to buy the home at the agreed upon price and with the agreed upon terms.

Submitting a back-up offer on a home already under contract, that you love, is the best chance of buying that home. Only time will tell if it is possible for the home to be yours.