Condo Buying Guide in Denver, Colorado
Buying Guide for Your Dream Condo in Denver, CO
1. Make a wishlist for your ideal condominium unit
- How much are you willing to spend on buying your condo unit?
- How much is your budget for any recurring fees that come with owning a condo unit?
- How much square footage do you require for your home?
- How many bedrooms and bathrooms do you need?
- Do you have a preferred floor plan or layout for your condo unit?
- What kind of condominium building do you prefer
- Do you need a parking space or garage for a vehicle?
- How much time are you willing to allot for your commute to your workplace?
- Do you have plans in the future that may require an additional room or more floor space?
- Which direction do you prefer your condo unit to face?
- Do you prefer a unit with morning sunlight, afternoon sunlight, more shadow with little sunlight, or no sunlight at all?
- Do you have any amenities that you prefer in a condominium?
2. Identify your preferred neighborhoods in Denver
Buying a condo unit is just like buying any other property. Its location affects your convenience in purchasing groceries and other essentials, commute time to work, access to various services and establishments, ease of access to medical services, safety and security, and transportation options. And, some neighborhoods are better in terms of access to parks, community centers, good schools, and entertainment.
In Denver, you have several neighborhoods to choose from for condo living.
The neighborhoods with the most condominium developments include:
- Capitol Hill
- North Capitol Hill (Uptown)
- Cheesman Park
- Cherry Creek
- Congress Park
- Five Points
- Hilltop
- Lincoln Park
- Lower Downtown (Union Station)
- Golden Triangle
- Central Business District
- Montclair
- Washington Park
- West Colfax
3. Get pre-approved for a mortgage loan
You need to know how much you can spend on a new property before looking for potential units and starting the buying process. Doing so ensures you approach your search with a good sense of financial realism. It will not only allow you to focus your search on properties you can afford, but you will also avoid disappointment when you fall in love with a property you can never afford.
The best way to know your buying power is by having your mortgage pre-approved by the lender. The pre-approval letter for your mortgage loan serves as proof to real estate agents and sellers of your capacity to pay. It also tells you how much you can afford and the monthly mortgage payments for your future condo unit in Denver, CO.
4. Seek the assistance of a local real estate agent in Denver
5. Visit condominium properties
Most real estate agents will ask for your wishlist for a condominium unit and property. Within a few days, you will receive a shortlist of Denver condominiums and units that closely match your requirements and desired qualities. Your agent will ask for feedback on which homes you like and schedule appointments for personal visits.
Here are some guidelines for selecting the best listing and choosing a condominium unit in Denver, CO:
Look for FHA-approved condominiums
Lenders will scrutinize the condominium development before finalizing the loan. Choosing a building approved by the Federal Housing Administration (FHA) can help increase your chances of finalizing it.
Research the condo’s property management company
Look into the reputation of the property management and find out how well they maintain the projects they manage. You can also talk to the board members of the building and ask them how satisfied they are with their work.
Review the fees of the property
Association fees are necessary for the upkeep of the building and its amenities. Find out how much the fees are and what they cover.
Ask about the community’s house rules
Look into the community’s house rules, particularly those about noise restrictions, usage of common areas, and cleanliness and maintenance. Find out how they handle issues or complaints, and how fast they respond to the residents (especially during weekends and holidays).
Learn about the association's insurance policy
You need to find out the particulars of the association's insurance policy. This is a crucial step to ensure you are protected and the fees you pay are giving you your money's worth.
Experience the neighborhood
Take a walk around the neighborhood and find out what it has to offer. You may have done your research but nothing beats first-hand experience on what a neighborhood has to offer.
6. Make an offer
Once you have made a decision on which condominium unit you wish to make an offer on, it’s time to decide on the purchase price you will offer, the cash down payment, earnest money deposit, the inspection period, contingencies you will include, and finalizing the terms and conditions of the purchase.
This stage is when a licensed real estate agent will be of immense help to the whole process. Work with them during the negotiations and you are more likely to have a smooth negotiation process with the seller.
7. Do your due diligence
After agreeing on the terms of the purchase, your time starts running for inspecting the property. It is best to have qualified professionals do the inspection for you and provide written reports. The areas you want to have inspected include plumbing and electrical systems, foundation, walls, flooring, and windows.
You also need to have a preliminary report of the property’s title to see if there are any issues with it. Your mortgage lender might also require an independent appraisal before finalizing the purchase.
If you are not comfortable with the results of the inspection, you can negotiate further with the seller or terminate the contract before the deadline of the agreement.
