If you want to buy a home, but aren’t sure if your budget can handle soaring real estate prices of the number one real estate market in the country (*Ahem* Denver)

1. 10 Tips to Buy Real Estate Without Breaking Your Budget
If you want to buy a home, but aren’t sure if your budget can handle soaring real
estate prices of the number one real estate market in the country (*Ahem* Denver),
there is some hope. There are things you can do to stretch your buying power and
some creative ways you can get in your ideal home. With the help of your real estate
agent and these 10 tips you can become a savvy homebuyer without breaking your
budget.
1. Get pre-approved for your home loan.
Unless you are a cash buyer you will need to determine exactly how much
you can afford to spend on a home. Getting pre-approved will help you
define your search parameters, the most important of which is price range.
You will also get a good indication of your down payment requirements and
interest rate options. You may be able to afford more than you think!
Fortunately, getting pre-
approved is not as scary as it
sounds and there are ways to
choose the best home loan for
you. The pre-approval process
is typically a quick and easy
activity. Simply put, fill out a
loan application with a trusted
Lender and go through the
process of pre-approval to
obtain your “Lender Letter”.
Most lenders even have an online application that can get you pre-approved
and on your way to house-hunting in minutes!
In fact, you can apply online right now with our amazingly fantastic
preferred Lender, Miguel Sandoval, of Eagle Home Mortgage:
apply.eaglehm.com/miguelsandoval
Besides the benefit of knowing
what you can afford, having a
Lender Letter is pretty much
required these days. The Denver
market is so hot that sellers
have their pick of strong offers
so if you wait to find the home of
your dreams before talking to a
lender, you may find yourself
scrambling to get pre-approved

2. while someone else’s offer is being accepted!
2. Explore creative financing options. There are more than you think!
During the home loan pre-approval process, ask about ways to get creative
with your financing. For instance, did you know there are down payment
assistance programs that offer GRANTS to homebuyers? And, in case you
are unaware, grants do not need to be paid back,
which equates to….FREE MONEY. For instance, you
may have heard of the most well-known program,
CHFA (http://www.chfainfo.com), but there are some
far lesser known programs that may be an even
better fit for some.
There are also some common options like first and second mortgage
combinations and additional help for first-time homebuyers that might help
you afford more
funding. For some,
interest-only home
mortgages make
sense. I could go on
and on but your
Lender can fill you in
on all the fine details
and help you
determine the best
option for you.
There are plenty of
opportunities aside
from the few I’ve mentioned so don’t give up.
And remember, if you have a good Lender you won’t have to ask them to get
creative, they just will.
3. Consider selling your existing home first, if possible.
I wouldn’t suggest this in a slow market
but right now in Denver, most homes
will be Under Contract in a matter of
days (even hours) after being entered
into the MLS. With this being the status
quo, having the ability to make a cash
offer is a great advantage.
Although selling your existing home
before finding new real estate to buy
can be a little nerve wracking, any

3. inconvenience will be offset by your ability to make an offer with cash-in-
hand. As I’ve mentioned already, sellers have their pick of strong offers so
your best chance at getting an offer to buy accepted is to come forward with
cash. Cash deals are more appealing to sellers because in general they close
faster and are far less risky because there is no chance of the contract falling
through due to financing contingencies put in place by a Lender.
Try to avoid asking for a contingency to sell your existing home.
Contingencies are great options, in some markets but these kinds of requests
do not tend to put you ahead
of competing offers when
negotiating so this is not
recommended unless
absolutely necessary. This
tactic should only be applied
in cooler markets, and for
those few Denver homes that
sit on the MLS for some
reason or another (there are
some, believe it or not). A lot
of times because of the lack of
high quality photographs.
Overall, having your financing in order and your bags packed will give you
the advantage in this fiercely competitive market.
4. Look for vacant real estate.
The days of rampant foreclosures and short sales are long gone. However,
there will always be circumstances when sellers are forced to move out of
their home, leaving it vacant
before it’s sold. Job
relocations, family
obligations, and other
random events often force
families to set out
prematurely. In fact, I see
homes come on the MLS
every single day that have
been left vacant for one
reason or another.
Whatever the reason, vacancy is a motivating factor for sellers. They are
often paying a mortgage on the home, and may be paying a mortgage on a
new home as well. In any case, a vacant home could be just the deal for a
savvy homebuyer.

4. Keep in mind, the longer a house stays empty, the greater your negotiating
power will be. You can’t always tell which homes are vacant based on the
pictures so you will have to ask your real estate broker to verify. And don’t
be afraid to submit an offer lower offer than the asking price dictates; sellers
who are interested may extend a counteroffer.
5. Consider cosmetic fixers.
Some of my most memorable deals fall into this category. I love the hunt for
the “diamond in the rough” and buyers who are adventurous enough to go on
this journey with me. The quest can be exhausting in a limited inventory
market but the financial benefits usually make it all worthwhile.
Most people shy away from the cosmetically neglected or time-forgotten
dwellings. Don’t get me wrong, it’s definitely nice to walk into a move-in
ready home and start unpacking but in most cases of cosmetic fixes you just
need a little imagination to see past the dingy paint, and the raggedy, stained
carpet.
I know what you’re
thinking, you don’t want
to deal with the hassle of
pre-move-in work and
maybe you’re not handy.
Like, at all. But you don’t
have to be a general
contractor to purchase a
home that needs some
minor TLC. If you know
someone who’s handy
with a paintbrush, a
toolset and gardening
equipment, you can
accomplish a lot.
A property that lacks curb appeal needs minor handiwork or the yard
overhauled could end up being the home of your dreams for a price you can
afford. You just need to look beyond the ho-hum to see the potential of a
cosmetic fixer.
6. Buy a home that’s a major remodel project.
Not everyone wants to (or can) purchase a home that needs a complete
overhaul so if you’re able, you can find some amazing deals in this category.
It’s no secret that fix-and-flip investors snatch up “fixer-uppers” and resell
them a couple months later for considerable profit. Oftentimes, homebuyers

5. find themselves outbid by the
investor base; however, there
are many instances these
homes need too much work for
the investor to make a profit.
Find a fixer-upper on my
website
[www.denverfixeruppers.com]
These homes, although they are not good candidates for flips, still make
financial sense for a homebuyer who intends to live in the home. You can
buy at a discount and make improvements the home over time, as finances
allow. As an added benefit, the improvements you make will certainly
increase your property value and if the time comes when you want to sell,
you will be in great shape! On regular basis you can always check the value of
your home online
7. Don’t discount bank
foreclosures.
I’ve already mentioned that there
are far fewer foreclosures than in
recent years. While that’s great
news for our economy, it’s not
super news for the budget-
conscious or restricted
homebuyer. The good news is
there are still opportunities out

6. there for the [very] patient homebuyer.
Your real estate broker can easily parse listings to find available foreclosures.
The U.S. Department of Housing and Urban Development can also be an
excellent resource for foreclosed properties, or set up an automated search
to have HUD homes emailed directly to you as they become available on most
real estate brokers’ websites. (Ahem….like mine!
www.evolutionhomerealestate.com). Because HUD houses are sold at
market value, your best bet will be homes that need cosmetic work or even
major repair. Repeat numbers 6 & 7…
8. Land with a “tiny” home.
This is probably the most fun option I can think of and I’m dying to find a
buyer who wants to do this. There is land out there and if you’re into the tiny
house movement, you can be living large in no time…see what I did there?
In all seriousness, sometimes, to buy a home on a budget, you need to really
think outside the box. Tiny homes are popping up everywhere (even right
here in our own backyard – talk to Greg at Rocky Mountain Tiny Houses
www.rockymountaintinyhouses.com)
and they are far less expensive than a 3-
bedroom home in the suburbs for
obvious reasons.
You can find a fantastic (relatively
inexpensive) piece of land in an outlying
area (or an infill lot within city limits)

7. where you can make your minimalistic dreams a reality. And this is the part I
really love…as your budget increases, you can add onto these tiny homes,
making a tiny multi-functional compound all your own.
P.S. For the less petite-inclined, this concept also applies to manufactured
and/or mobile homes.
The bottom line is, if you can’t find the perfect opportunity, create it!
9. Buy an older or smaller home.
Older homes that haven’t
been remodeled or
updated are typically
priced less than newer
construction and don’t
tend to create buyer
bidding wars. If you can
enjoy life in an older and
smaller home in a
neighborhood or suburb
off the beaten path, this
could be your ticket to
real estate ownership.
You can secure a reasonable mortgage payment and address the avocado-
colored appliances over time.
It’s always recommended to get a home inspection prior to purchase, but it’s
especially important in an older home. In other words, older homes can be a
bargain but be sure to verify it’s not priced low due to defects.
10. Buy the cheapest house in the best neighborhood.
If you’re like most, you may have
your heart set on a specific (and
expensive) neighborhood. Maybe
it’s the top-notch schools, or
perhaps it’s the close proximity to
downtown, Washington Park, or
superb mountain biking trails.

8. There are plenty of amazing neighborhoods in Denver and the surrounding
cities, so my first suggestion is to give some of these other places a chance.
Don’t eliminate based on neighborhood without going to see the home; a lot
has changed around town, and it’s changing still. In fact, as we speak, luxury
condos are being built where my favorite gas station used to be. Changes. All.
The. Time. Unless you are a UPS driver, you probably don’t get a city-wide
tour as often as you would need to keep up with all the changes.
If you are simply unwilling to
consider an alternative location, a
budget-savvy buyer will look for the
least expensive home for sale in the
neighborhood. If you’re not in a
hurry, you can even play the waiting
game to see what properties come
on the market during the winter
months when real estate is
considerably less expensive (Fall-
Winter).
Buying real estate without breaking your budget will require research and
compromise, persistence, and patience. And patience. Did I mention you will need
patience to find a bargain in this market? And at some point you may need a reality
check. Your real estate broker might need to politely redirect you to more suitable
search criteria for your budget but don’t give up. There are probably options and
if there are no options, create one.