Estimating Costs When Buying a Home in Denver

Avoid Hidden Costs of a Home Purchase

When considering purchasing a home in Denver, it’s crucial to understand that beyond the down payment and closing costs, there are additional expenses involved. These costs include the earnest money deposit, inspections, appraisals, and moving expenses. The total amount can vary based on factors such as the property size and the financing amount. Before making a significant financial commitment, it’s advisable to carefully calculate the various expenses associated with buying a home in Denver.

We do a deep dive into cost associated with buying a home. Take a moment to watch, read on, and then schedule a meeting! That way we can strategize your next move together.

1. Earnest Money Deposit

When placing an offer on a property in Denver, you must be ready to provide an earnest money deposit. This deposit serves as a demonstration of your commitment as a buyer, prompting the seller to cease pursuing other potential offers. Typically ranging from 1% to 5% of the sale price, the specific amount of the earnest money deposit can vary.

2. Inspection

Don’t let the thrill of purchasing a new home in Denver overshadow the importance of budgeting for inspection expenses. When financing through a lender, this cost is non-negotiable. Home inspections usually occur 1 to 5 days after contract approval and can exceed $500. Prioritize this crucial step in your homebuying journey with the help of Just Livin' Realty Group in Denver. Contact us at 720-730-2289 to learn more.

3. Appraisal

When purchasing a property with financing, it’s essential to consider the cost of an appraisal, which is a requirement by your lender. While sellers may sometimes cover part or all of the appraisal fee, it’s not guaranteed. The appraisal cost is commonly included in the closing costs, making it inevitable for the buyer to pay. On average, expect to pay a minimum of $600 for an appraisal.

4. Closing Costs

When considering a real estate purchase in Denver, don’t forget to account for closing costs. While some sellers may agree to cover these expenses to sweeten the deal, it’s more common for buyers to bear the brunt of the costs. These closing costs encompass third-party and lender fees such as wire transfers, surveys, underwriting, credit reports, document preparation, title insurance, and recording fees. Typically, closing costs amount to around 1.5% to 5% of the property’s sale price, a significant sum to factor into your budget.

5. Moving Expenses

When estimating the costs involved in purchasing a property in Denver, it’s crucial to factor in moving expenses, which are often overlooked. Despite not being part of the actual home purchase, these costs are inevitable, especially if you are relocating within the same neighborhood.

If you lack a truck, trailer, or assistance for the move, hiring professional movers may be necessary, particularly for long-distance relocations. For shorter moves, approximately within 20 miles, expect to budget around $1,000. However, if you are moving across the country, expenses could escalate to $5,000 or more.

For interstate moves, consider selling off bulky items to reduce moving costs. In certain scenarios, particularly for extensive relocations, purchasing new furniture for your destination home might be more cost-effective than transporting your current furniture.

It’s essential to broaden your cost estimation perspective beyond the down payment and closing costs when purchasing a property in Denver. Additionally, explore alternative home-buying solutions that could potentially reduce your initial financial outlay significantly.

Let us help you with a fast, easy solution that will allow you to keep more money in your pocket when you move into that new home. To discover how just give us a call at 720-730-2289 or fill out the form.