Parker is a town in Colorado located about 25 miles south of Denver. The town is known for its breathtaking views, gorgeous natural setting, and growing list of amenities. Parker was originally a simple ranching outpost, but it began attracting white-collar workers and families looking to leave the hustle and bustle of Denver’s metropolitan area in the late 1990s. Today, the town has expanded well beyond its outpost roots, with new housing projects and businesses popping up every day. Parker is a great place to live for those who want to enjoy the best of both worlds: a small-town atmosphere with big-city amenities. The town has a charming Main Street lined with shops and restaurants, as well as a number of parks, trails, and open spaces. Parker is also home to a number of schools, making it a great place to raise a family.
Widely considered one of the best places to live in Colorado, relocating to the town of Parker offers plenty of benefits. Whether you’re new to the state or a fellow Coloradan, buying property in Parker is easier than ever, especially for first-time home buyers. Still, learning everything you can about the local market before you move is crucial.
Here are the top six things you should know if you’re a first-time home buyer in Parker, CO.
1. How to stand out from the crowd
Since Parker is such a highly desirable place to live, competition for housing in the area is fierce. Because of this, setting yourself against the competition is incredibly important. Fortunately, you can do this in a number of ways, such as the following:
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Get pre-approved: Before you start your home search, getting pre-approved for a mortgage loan will go a long way in setting you apart from the competition. Your pre-approval letter will show sellers you’re a serious buyer and how much you can actually afford to spend. In many cases, with multiple offers on one house, having a pre-approval letter could push the seller to swing in your favor.
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Waive certain contingencies: When in a position to negotiate, buyers often include certain contingencies along with their offers, such as the inclusion of appliances, remodeling, or a home inspection. In competitive markets, however, waiving those contingencies could help you stand out from the crowd and make your offer more attractive.
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Write a personalized letter: Since most sellers are looking to pass their home off to another family, tailoring your offer letter to your situation could help sway things in your favor. Try connecting with the seller on an emotional level through a handwritten offer letter that explains your situation. Include what you love about the seller’s home; however, keep your letter short and to the point.
2. You don’t have to put down 20%
Ask any real estate agent about down payments; they will likely advise you to put down at least 20 percent of the home’s purchase price. While this advice offers plenty of benefits, it isn’t a rule that must be followed. First-time home buyers can put down as little as 3 percent with a conventional mortgage. Although putting down less than 20 percent often requires buying private mortgage insurance, making a smaller down payment could be a smart move in many cases if you do not have substantial savings.
3. Douglas County has a high median property tax rate
The town of Parker is located in Douglas County, Colorado. The county as a whole has an effective average property tax rate of around 0.69 percent. Therefore, given a median home value of $493,500, homeowners typically spend about $3,427 yearly on property taxes. This rate is pretty high when compared to the rest of the country, and it ranks in the 253rd spot of the 3,143 counties that levy property taxes.
4. First-time home buyer assistance programs and other loans
First-time home buyers in Parker, CO, have several assistance programs available at their disposal. For instance, some home buyers may be eligible for Parker’s down payment assistance program, which offers funds at low-interest rates to help put money down. There are a few requirements with this program, which can all be found here. Buyers also have access to other types of loans in the state, ranging from conventional loans to FHA loans. Spending the time to learn which loan is right for you can go a long way in helping you buy your first house.
5. Consider taking a home buyer education course
Given the complicated nature of homeownership, taking a few educational courses on the subject is not a bad idea. The state of Colorado offers many courses, some of which are designed specifically for first-time home buyers. In fact, some courses are even required before you can gain access to specific assistance programs. You can find a list of the available homebuyer education courses here.
6. Hire an experienced real estate agent
Without a doubt, the smartest move a first-time home buyer can make is to hire an experienced local real estate agent. Your agent should have plenty of experience helping first-time home buyers buy the home of their dreams. They should also know all the available assistance programs and educational courses. Additionally, your agent can guide you during the process and help you secure enough money for the down payment.
Discover more tips for becoming a first-time home buyer in Parker, CO
Parker, Colorado, is rapidly becoming a coveted destination within the real estate landscape. This stunning Colorado town is attracting an increasing number of residents seeking tranquility away from the bustling Denver metropolitan area. The real estate market in Parker is flourishing, presenting abundant opportunities for first-time homebuyers and seasoned investors alike. For those new to the Parker real estate market, there are numerous insights to discover to make the most of this exciting property venture.
Pink Realty is a team of local realtors that have helped numerous clients buy their first house over the years. Utilizing their knowledge of the area and all the available assistance programs, the team has what it takes to help you purchase the home of your dreams. If you’re a first-time home buyer in Parker, CO, contact the Pink Realty team to learn about your options.
*Header photo courtesy of Pink Realty
