Home Buying in 80202>Question Details

Dave, Home Buyer in 80202

I am a renter looking for a good deal on a condo in the downtown Denver area. Should I be looking at foreclosures, or elsewhere?

Asked by Dave, 80202 Mon Jan 2, 2012

I am in a conservative mindset, with the great amount of uncertainty in the economy. I've heard horror stories about foreclosures, but also have heard of people finding great deals. My understanding is that the Denver housing market is not in bad shape. I'd like to know more about where to look, and what to look for when searching for condos.

Help the community by answering this question:

Answers

22
The right answer is to look at everything in your budget, and choose the best option for you. Foreclosure is a HOT button and doesn't always mean the great deal.
1 vote Thank Flag Link Mon Jan 2, 2012
Egvits,
Start by meeting with an excellent local agent. Focusing strictly on foreclosures will blind you to other deals which may be just as good and less risky. A great local agent will listen to your goals and tell you the truth about what is really out there. Late night infomercials and flip this house type of shows are interesting to watch and contain a grain of truth, but are mostly entertainment and commercials to sell you something.
1 vote Thank Flag Link Mon Jan 2, 2012
Look at everything, There are deals out ther. We have HUD Homes and foreclosures on http://www.kennarealestate.com
1 vote Thank Flag Link Mon Jan 2, 2012
Hello Dave,

Foreclosures could be a good deal or not.
Each particular property needs to be evaluated price-wise and inspected properly.
In addition to that, sometimes, there are liens that are not disclosed, or other title issues that need to be addressed (like title exeptions)...

Find a good realtor who is knowledgable about all types of sales - short sales, foreclosures and normal sales - so that your interests are protected.

Good luck finding a wonderful home,

Irina Karan
CDPE - Certified Distressed Property Expert
IrinaKaran@gmail.com
Beachfront Realty, Inc.
0 votes Thank Flag Link Tue Apr 17, 2012
Hi Dave:

There are a number of well-priced condos out there. Some are foreclosures. Others are short sales and still others are conventional sales where the seller simply wants to get out from under the property. I would look at all possibilities, get a thorough inspection and go from there. However, as Ray mentions below, there are a number of issues unique to condos and other "attached dwellings." Some condos are excluded from low down payment FHA loans. Others that are not currently excluded, may later drop from eligibility, making it hard for you to sell at a fair price when the time comes. Such issues make it very important that you receive good advice before you buy.

Kind regards,
Ron Rovtar
Prudential Real Estate of the Rockies
Days: 303.981.1617
Evenings: 303.473.1926
ron@rovtar.com
http://www.rovtar.com
0 votes Thank Flag Link Tue Jan 10, 2012
Dave - I would include HUD listings in your search. They're often the best 'deals' around and they come in all sizes, locations, and price ranges. I'm a HUD certified Broker if you're interested.

Tim Klein
Broker
Metro Brokers - The Realty Werks
303.973.7600
0 votes Thank Flag Link Tue Jan 3, 2012
For 2 cents from the lending side. And by no means to scare you from condos. However, condos are a bit more tricky than they used to be. Make sure you find one that has solid financials and strength within the community. The last thing you will want is to buy, then if you wanted to or needed to sell, be limited or not able to because of certain facets of the lending world.

Things to look out for include but are not limited to, FHA approval on the building (depending on price point), # of homeowners delinquent on HOA, pending litigation, investor concentration in ownership (especially downtown).... These are just a few things. If you have any lending questions feel free to call at no obligation.

Ray Williams
Branch Manager
Summit Home Mortgage
303.779.0591 x101
0 votes Thank Flag Link Tue Jan 3, 2012
The Denver Market has held it's own in these challenging times. I am working with a buyer currently that is investing in financially distressed properties mostly condos. They are not happy with the rate they receive with traditional money market accounts. Potential upsides to purchasing condos are huge especially rate of return IE cap rate. One piece of advice might be to look at the inventory here in Denver which has shrunk considerably in the past six months.

Happy hunting please call if you have more questions
Kevin Connolly
Verde Denver Real Estate & Property Management
720-334-6181
0 votes Thank Flag Link Tue Jan 3, 2012
The best bet is find yourself an agent that works with foreclosures or short sales. Short sales are good deal as well. What you should be looking for is a low maintenance, with a great price. Start out small and what you can afford if $50,000 is all you can afford then stick with that later on you can always sell when your condo has equity and buy a bigger condo or small house. Remember Donald Trump had to start somewhere so make sure not to get in over your head with payments and you'll be fine! Wish you the Best. Jeannette Batsikas with Lighthouse RE
0 votes Thank Flag Link Mon Jan 2, 2012
Hey Dave,

What is your price range? I'd be happy to look into some options for you. I have helped several sellers find renters in this market so I have a pretty good handle on what's out there!

Give me a call to discuss more!

Lane Walsh
Dwell Denver Real Estate
720-299-8895
Web Reference: http://dwell-denver.com
0 votes Thank Flag Link Mon Jan 2, 2012
You can find some really good deals in short sales if you are willing to wait. REOs are next on the list than the normal market. I work with a lot of investors and you will be surprised at the good deals out there! Any more questions...call me.

Paul Olthoff
Your Castle Real Estate

303-521-7223
0 votes Thank Flag Link Mon Jan 2, 2012
Dave,

There is a great market for condos in the Denver area. Foreclosures don't have a lot of downside to them other than the fact that many need work and the condo development may have a weak HOA. Also condo financing can be tough if the condo development is not certified and approved by FHA. We do that kind of research for you so you don't get caught up with high HOA fees and assessments. Short Sales are another option depending on your current lease situation and time frame for moving. There also may be good deals on condos that are not foreclosures that could work for you depending on your price point and areas of town that you are interested in.

I am currently looking for condos from $50,000 up to $200,000 for a client relocating to Denver. Let me know if I can help you as well to narrow down the search and find the 'right'' condo or townhome that will work for you. This is a great time to purchase a condo in Denver. We are here to assist you with your real estate needs.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct – 303-669-1246
0 votes Thank Flag Link Mon Jan 2, 2012
You are right, especially the downtown market. The good news is, you didn't see prices drop dramatically downtown but the bad news is, you don't see a lot of foreclosures or short sales in strong complexes. You need to look closer at motivated seller's, this is where you can find some deep discounts but you do need to be emotionally and financially ready to move. My advice is to explore the market with someone very familiar with the downtown market (me) so when the deal shows up you are prepared and hopefully first in line. Timing is critical. If a bank owned property comes on the market you need to have someone who knows just how undervalued the property is and how aggressively to go after it. I specialized in downtown and my satellite office RE/MAX City Living was located at 15th and Wazee for 4 years. I continue to focus on downtown but also would recommend looking at LoHi, Highlands and other strong neighborhoods with like-kind properties.

Juanita Chacon
RE/MAX Alliance Central

7202973005
0 votes Thank Flag Link Mon Jan 2, 2012
Hello Dave,

Thank you for your great question. The answer is that it depends on the price range that you are looking in and what you are looking to buy. I am a specialist in Foreclosures and Short Sales and have several properties available. I can get you a GREAT deal on the perfect property.

Call me at 303-856-8980 so we can discuss the specifics of what you are wanting to do.


Ethan Besser, CDPE, CNE, IMSD
Certified Distressed Property Expert
Broker Associate
Keller Williams - DTC
Cell: 303.856.8980
Fax: 303.539.4809

The Besser Choice in Real Estate!
0 votes Thank Flag Link Mon Jan 2, 2012
Hi Dave, I haven't read the other answers so hope I'm not repeating. But...I think what you should do is hire a real estate broker, preferably me. I'll do the looking for you; all you have to do is pick out the places you want to visit in person. I specialize in central Denver, unlike some of the agents below. If you want to live downtown, an agent working out of Evergreen or Highlands Ranch is not your best bet. What on earth do those suburban Mchouses have in common with downtown living? Agents who sell there usually live there; it's a completely different lifestyle.

I bought my 1st home as a single female during a bad economic time, and because I bought in the city core, the value of my home increased. Then I sold that and bought the home I live in now--again during a stressed economy--and have over $200,000 equity in the house. The people under water are largely those who a) bought more than they could afford and b) bought a cookie cutter house in the suburbs that looks exactly like 1000s of other houses. Those types of homes are not good investments in any economy.

Here's my website: http://www.kwsue.com. Give me a call if you're ready to start looking! 303-895-7775 As you can probably see, I'm passionate about city living.
Web Reference: http://www.kwsue.com
0 votes Thank Flag Link Mon Jan 2, 2012
Dave,

As you've already heard, look at everything and evaluate which home present the best opportunity. However, it has been my experience that there is great competition for any REO properties under $200K. I have worked with many buyers who have lost out on homes because the bank would rather sell the property for less to a cash investor than worry about an owner occupant getting final loan approval.

Depending on your time frame and mindset, this process could be very discouraging.

Another thing I would caution you against is paying for foreclosure lists. Many are inaccurate and often times they are geared toward those interested in purchasing a home at auction. I would suggest finding a nice website that will allow you to search the MLS and alert you to properties that meet your search criteria as they come on the market.

Then just keep your eye out for something that interests you.

Best of luck,

John Keene
303-547-7578
0 votes Thank Flag Link Mon Jan 2, 2012
Dave,
Denver IS in good shape! Properties are selling quickly when priced right.
Check SPIRE Condos, across from the theatre pavillion and the convention center.
Excellent amenities and condos in all price ranges.
Close to light rail, theatre, shopping, work.
Also, ballpark area is HOT! Close to lightrail and Union Station, which is being transformed.
Lauren Gardiner-Realtor
720-205-6857 text for more info
0 votes Thank Flag Link Mon Jan 2, 2012
Hello Dave!

It's area by area, complex by complex. You are correct some parts of our market are not all that bad and one of the reasons is inventory went down, alot, this past year. That means fewer to choose from. You can find great deals if you have patience and a I'd like to say a good real estate agent to help you focus and watch the new listings among other things. I just posted another reply that also answers one of your questions and here it is:

"Good Deals" can be all of the above or none of the above...it actually just depends. Depends on how much time you have to wait, as some times good deals will take a while to unfold, or be approved (i.e. short sales and bank owned). Sometimes you have to ready to move very quickly as you can't steal in slow motion. All foreclosures are not necessarily good deals as banks price them all over the place, high, low and at market value. Good deals also depends on what you're willing to put up with, i.e.condition of the home, location, and especially for condos, what shape is the Home Owner's Association in/ --- some have been decimated by several years of prior/current owners not paying the monthly HOA fee, and therefore the HOA lacks the proper resources. Also too many renters in the complex may mean that the unit is NOT financial by either FHA or a conventional loan

Hope this help and would love to discuss further on what your needs are and then find the best deal for YOU!
0 votes Thank Flag Link Mon Jan 2, 2012
Hello Egvits! Good question. "Good Deals" can be all of the above or none of the above...it actually just depends. Depends on how much time you have to wait, as some times good deals will take a while to unfold, or be approved (i.e. short sales and bank owned). Sometimes you have to ready to move very quickly as you can't steal in slow motion. All foreclosures are not necessarily good deals as banks price them all over the place, high, low and at market value. Good deals also depends on what you're willing to put up with, i.e.condition of the home, location, and especially for condos, what shape is the Home Owner's Association in/ --- some have been decimated by several years of prior/current owners not paying the monthly HOA fee, and therefore the HOA lacks the proper resources. Also too many renters in the complex may mean that the unit is NOT financial by either FHA or a conventional loan. Love to discuss further on what your needs are and then find the best deal for YOU!
0 votes Thank Flag Link Mon Jan 2, 2012
Hello
It is certainly a great time to buy v renting. Interest rates are so low, and rentals are in demand pushing rents up. I have worked with a lot of Buyers that buy foreclosures. I have not encountered horror tales, you just have to understand what to expect. Foreclosures are typically sold 'as is' meaning the Seller (most of the time) will not do repairs if an inspection finds them. The biggest thing to be aware of is HOA's. If a complex has a lot, then the monthly fees may be higher. You may also have out of pocket costs of having to pay for the financials .. this can be quite high depending on the complex. As long as you are aware, you can still pick up a deal. Check out the link below. Its a great time to become a home owner

Julie
720 226 4168
0 votes Thank Flag Link Mon Jan 2, 2012
Hi Egvits!

Foreclosures are typically priced lower than those homes/condos listed by an individual owner. Buying a bank owned condo can however come with additional expenses. For example often times the properties are winterized and to do a proper inspection you would have to spend some money to de-winterize and then winterize the property. Another thing to keep in mind, is that often times banks won't fix any items found during the inspection, which could affect your ability to obtain FHA financing. Having said all that some bank deal are worth the hassle! If you are in a position to rent on a month-to-month basis, you also might consider looking at some Short Sales. In fact even a regular sale can turn out to be a great deal if you have a pro active agent who is a great negotiator.

Let me know if I can help you with your home search or if you have any neighborhood specific questions, I'd be glad to help!

Marina Jensen
303 908 9117
Web Reference: http://www.MarinaJensen.com
0 votes Thank Flag Link Mon Jan 2, 2012
There are many great deals including foreclosures. The best way to find good deals is to work with a good Realtor who specializes in finding good deals. I personally just purchased a foreclosed townhome that was a really great deal. If you are not already working with a Realtor, I'd love to help you find the best deal you can find. Thank you, J. David Lampe, REALTOR
303.550.8563
0 votes Thank Flag Link Mon Jan 2, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer