In Colorado, homes go from “for sale” to “sold” in a matter of days. Sometimes hours. With homes moving so fast it can be easy for buyers to overlook the hidden costs that come with landing a new home. You may be ready to go “all in” in Denver’s competitive market but keep the following considerations in mind when deciding to put in an offe

Closing costs -
Closing costs typically include lender fees to originate and underwrite a mortgage, real estate agent commissions, appraisal, property taxes, homeowner’s and title insurance, as well as fees for filing local and state records.

Generally, you should expect to pay somewhere roughly between 3% to 5% of what your mortgage amount is. For a $300,000 mortgage, that means setting aside $9000 to $15,000 for closing costs.

Home Inspection -
While some buyers are forgoing an inspection to compete with multiple buyers, it’s always a good idea to have an independent home inspection just to ensure there are no issues that would be deal breakers for buying a home. Inspection fees typically run around $400.  

Earnest money -
When making an offer, buyers typically submit 1% to 5% of the home’s value “in earnest” so the seller feels comfortable pulling the home off the market, usually that fee is held in escrow and applied to closing costs.

Homeowners Association (HOA) fees -
Make sure you understand what your monthly HOA fee will be, but also any upcoming special assessments. Assessments are usually higher amounts than regular HOA dues and are used for larger-scale repairs or improvements to the community, like a new roof or sprinkler system.

Buying a home is an exciting and sometimes emotional decision. Once you found the right house, it’s important to understand the additional costs that come with becoming a homeowner. If you’re considering buying in the future, give Metrowest a shout – we’d love to help you start the process!