In our 8-part series, How to Find the Perfect Home for You and Your Budget, you will learn the blueprint for finding a home that matches your lifestyle and, most importantly, your financial boundaries. We take you through every single step to ensure you avoid “buyer’s remorse”—a common pitfall in a high-velocity market. In the Centennial State, your first home is often the “stepping stone” to your next, so you want to do it right and set yourself up with the equity needed to move up later.
We all do it. We feel ready, we’ve checked the current mortgage rates, and we assume the next logical step is to dive into Colorado real estate listings.
Resist that urge.
We tell our clients NOT to start house hunting immediately. Why? Because we want you to look “under your hood” first. Most agents don’t approach the Denver housing market this way, but we do. This self-analysis digs deeper than “how much square footage do you want?” Your honest answers will lead you to the right purchase for your lifestyle and your long-term wealth.
1. How long do you plan to live in this next home?
This is THE most important question that MUST be answered. With a situation such as you might have in a state like Colorado where closing costs are rather high as well as real estate property taxes that vary depending on legislative enactment of a local nature, your respective timeline helps set the tone. Are you considering a starter residence that will help you for three years or a ten-year family foundation? Moreover, what kind of tenure are you looking to establish when you know you are looking to rent out the place?
2. What will your life look like during that timeframe?
In this way, you will be able to determine what you can use the home for. Will the home be to work from home with your home office or will you have to commute to the tech hub? Knowing what your #1 reason for purchasing the home is, whether it be home equity or an additional space outside, is imperative to having a successful search through the homes for sale located within the state of Colorado.
3. What about your current daily life are you not willing to give up?
The Colorado lifestyle is all about the idea of a “daily win,” that the small pleasures in life in Colorado offer the balance. Do you love being able to walk downtown to the coffee shop in the Highlands to start your day off without having to start up the car? Do you have to live within ten minutes of a given trail head so that you can track down a path to run that day that intersects perfectly with your daily life?
The small pleasures will mean far more to your lifestyle than most people give a passing thought. They should not sell off what their daily lifestyle looks like in favor of a “dream home” that finds itself in the middle of nowhere in relation to the lifestyle that they enjoy.
4. Are you a “homebody” or a “night-out-on-the-town” person?
Understanding this allows you to gauge how much space you truly require, and what square footage really contributes to your lifestyle. Maybe you don’t throw many parties or have friends over to dine with, and this massive dining room would really be attractive to potential homebuyers, but really it would be a massive waste of money each month, which you’d shell out along with the rest of the expenses. Then again, maybe you’d much prefer to stay home with the pals to have game night over heading down to the bars in RiNo. In any case, don’t skimp out on the square footage to allow you to do what you love with the people closest to you.
5. Do you need a quick, easy commute to the office?
If this is the case, then this question is a significant consideration in deciding not only where you will live but also the qualities your dwelling must possess in order to facilitate this. The importance of commute time will often regulate this decision. In the Denver real estate market in particular, getting a good parking spot is hard come by, and this is often a determining factor in the quality of life you will enjoy.
If you bike to work, you will now have other concerns. Instead of being concerned about parking, now you will want to look at those listings that provide bike storage or bike rooms. This way, no matter what bike you own, from a costly bike to ride through the trails to the bike you use to go to work, it will remain safe and not clutter any areas of your home or dining spaces. Bike storage needs should be considered when conducting home searches to identify the right home for you.
6. What are your personal and financial goals during this timeframe?
This is a question you want to ask yourself prior to finalizing your home purchase. Are you looking to switch careers, industries, or merely wanting to have a different work-life balance? If so, you wouldn’t want to have a loan to reflect the job—you hope to have and/or need.
Whether you’re striving to earn a higher salary, looking to switch to a position that doesn’t cause you as much stress, or simply seeking the option to have more flexibility, your home should play a supportive role in reaching your financial goals, not hold you back. Having a harmonized home investment means you have the freedom to develop, adjust, and improve without an anchor weighing you down financially.
7. How will your hobbies impact your life in this home?
It is essential for your interests and your passion to also be involved in deciding what exactly makes a certain home suitable for your lifestyle. Do you have the desire to have an investment property which is relatively inexpensive, giving you the ability to travel all over the world, experiencing new adventures, people, and cultures, or having the accessibility to nature and its many wonders? Or perhaps you need extra space to hold your artwork, your craft, and sports equipment for skiing, hiking, and camping in a room not visible to your living room?
“A lifestyle for many people in Colorado means many hobbies. Hobbies are what you want to do with your time. Hobbies are what you want to do with your space. Hobbies are a part of why you do what you do. It is important that your house provides you with the where.”
8. Are you a “location person” or a “house person”?
This is a critical distinction for anyone browsing Colorado real estate listings.
- Location People: Get excited about local amenities, walkability, and school districts. They often choose a smaller condo to be “where the action is.”
- House People: Prioritize the interior features—a chef’s kitchen, a spa-like master bath, or a massive garage. They are often willing to drive further to get the “perfect” structure.
9. Are schools in the neighborhood a factor for this purchase?
Even if you don’t have children, homes in highly-rated school districts tend to see better property appreciation. Just remember, under Fair Housing Laws, a real estate broker cannot recommend specific school districts. You’ll need to do your own research via resources like GreatSchools.org (DoFollow Link).
10. What do you want to change about your current home?
Think about what aggravates you in your daily life—the things you notice just about every day. Could it be the lack of kitchen counter space which makes the space so small? Could it be the lack of a single-story master suite which makes you so undepressed in a perfectly good home?
It is a good idea to explore what your own “pain points” are to start to form your own deal breakers for what comes next. Knowing what no longer applies to you and your level right now will enable you to look for a residence that can truly elevate your lifestyle.
11. Describe your ideal scenario and dream BIG!
Now take a sheet of paper and list all the things you would like to have in what you consider to be the “perfect” home. Start with no limitations in mind. Let’s not worry whether you can attain these ideas or not at the moment. That’s the last thing you want to consider for the time being. The goal for the time being is clarity.
By giving yourself the gift of brainstorming ideas for yourself, you will unlock the very same ideas that have the most importance to you for the purposes of your wish list. And while the factor may not necessarily make your final list, it will allow you to discern the very foundations you will stand by.
12. What would you be willing to compromise on?
It’s important to take a look at your ‘Dream Big’ list to pick out the three things that you could live without. It’s not always the easiest thing to cut back on the things that you want, especially when in a competitive market such as the state of Colorado. Not everything will be a good fit.
The knowledge of where you have flexibility—“your flex areas”—enables you to adapt easily without compromising what you love the most. In this way, you shall make esteemed decisions, fortify your offers, as well as take the first step when the right time comes.
The Road to a Stress-Free Move
Taking the time to evaluate the “what” and “why” of your move makes the house-hunting part of the process rewarding rather than overwhelming. By understanding your internal drivers, you can navigate Colorado’s state real estate regulations (NoFollow Link) and shifting market conditions with total confidence. Once you’ve done this work, you’ll find that the right Colorado real estate listings start to stand out from the crowd.
Frequently Asked Questions (FAQ)
How do I start searching for Colorado real estate listings?
The best place to start is by getting a custom portal from a licensed real estate broker. This gives you direct access to the MLS listings, which are updated faster than third-party consumer sites.
What are the main costs when buying a home in Colorado?
In addition to the purchase price, you will have to factor in closing fees (usually 2-5% of the amount borrowed), home inspection fees, and possible fees for becoming subject to any homeowner association rules. These differ widely from area to area.
Can I buy a home in Colorado with a low-down payment?
Yes, there are many first-time buyer programs in the Colorado market that qualify for a down payment as little as 3% or 3.5%. You should always check with a lender to see what interest rates you qualify for before you go looking at houses.
Why is property appreciation so high in some Colorado areas?
These factors include the presence of employment opportunities, a lack of land in proximity to the mountains, and the popularity of the Colorado lifestyle. Regions with access to the best possible educational systems and the ability to reach outdoor recreation areas quickly generally provide the greatest rates of increase.
Next Steps: Congratulations on completing this self-analysis! You are now better prepared than 90% of the buyers currently in the market.
Would you like me to create a custom “Buyer Profile” summary for you based on these twelve answers to share with your real estate agent?
