The price of homes has been steadily increasing in Boulder County and Northern Colorado for years. As prices have risen, it has been more difficult for First Time Buyers to enter the real estate market. In a market like ours, it is important to get into the market as soon as possible.
There is an old saying, “You can’t out save the market”. That means no matter how hard you try; the prices will increase faster than you can save, especially for a down payment to make your first purchase. In 2024, more factors have been tossed into the works.
For instance: increased home values, property tax assessments and thus property taxes have increased significantly. Many properties have seen taxes go beyond 30%. Additionally, there’s an increased need and cost of insurance.
Due to huge fire and hail losses to insurance companies in Colorado, many property owners have seen insurance rates going up over 30%! Combine all three factors and you’ll find it costs much more to buy the same house than it did just a couple of years ago. The question is, “Will it get cheaper to buy a home?” Probably not! It is likely to continue to get more expensive. Therefore, it makes sense to do everything you can to get into the market, as soon as possible.
One option for First Time Buyers is to look for a co-signer. There are many ramifications of being a co-signer, making a close relative the best choice for a potential cosigner. However, even with a close relative, all parties involved need to go in with their eyes wide open before agreeing to the arrangement.
The way to do that is to first meet with a qualified Mortgage Loan Officer to determine what a buyer might qualify on their own versus what they would qualify for with a co-signer. Next it would be wise for both parties to meet with a financial planner to make sure they are on the right track to make the best decisions. The financial planner can help determine if the overall transaction is realistic.
Often the primary borrower will end up borrowing more than they can handle. In which case, the co-signer would be asked to step in to help and that can put a strain on a relationship. It is important for the primary borrower to know what they are asking of a potential co-signer as well as, for the co-signer to understand the potential commitment they are making.
Here are a few of the things to discuss, before an arrangement is made: Other options to consider when helping a First Time Buyer: Your professional Realtor®, lender and financial planner can help you make the right decisions. Duane Duggan graduated with a business degree and a major in real estate from the University of Colorado in 1978. He has been a Realtor® in Boulder since that time.
He joined RE/MAX of Boulder in 1982 and has facilitated over 2,500 transactions over his career. Living the life of a Realtor and being immersed in real estate led to the inception of his book, Realtor for Life. For questions, e-mail duaneduggan@boulderco.
com , call 303.441.5611 or visit boulderco.
com . Stay up to date with area Real Estate and Home & Garden news information with the latest e-edition version of atHome Colorado online This article is brought to you by atHome Colorado , your weekly insight into real estate, design, and community trends, published weekly by the advertising and marketing department in the Boulder Daily Camera, Loveland Reporter-Herald, Greeley Tribune, and Longmont Times-Call.
