Frequently Asked Questions

By Top Arvada & Denver Metro Realtor Lauryn Dempsey

Buying or selling a home in Colorado brings up a lot of questions. After helping 200+ clients across Arvada and the Denver Metro area, I’ve noticed the same ones come up again and again. This FAQ page is here to give you honest, straightforward answers — no fluff, no pressure. Whether you're buying your first home, relocating to Colorado, using a VA loan, or selling a place you've owned for years, you'll find the info you need right here.

Table of Contents

Top Questions From Homebuyers

1. What's the first step to buying a home in Colorado?

The first step is getting pre-approved with a reputable local lender. Colorado is a competitive market, and sellers expect buyers to be financially ready before touring or making offers. A strong pre-approval sets your budget, clarifies your payment, and improves your negotiating position.


2. How much do I need for a down payment?

Most buyers think they need 20%, but that’s rarely true. Many loans require 3%–5% down, FHA allows 3.5%, and VA loans require $0 down for eligible veterans. Your down payment depends on your financial goals, loan program, and monthly payment comfort — not just a blanket percentage.


3. What are the average closing costs in Colorado?

Buyers typically pay 2%–3% of the purchase price. This includes appraisal, lender fees, title insurance, escrow fees, and prepaid taxes/insurance. Depending on market conditions, you can sometimes negotiate closing cost credits.

Top Questions From Home Sellers


1. When is the best time to sell a home in Colorado?

Spring and early summer have historically been the strongest seasons. However, recent years show strong fall activity due to interest rate dips and buyer urgency. A well-priced, well-prepared home can sell successfully in any season.


2. How long does it take to sell a home in the Denver Metro area?

This depends on condition, pricing, and location. My listings average 12.8 days on the market — significantly faster than the regional average — because I invest heavily in pre-market preparation and strategic pricing.


3. What should I fix before listing my home?

The highest-impact items include:
• Paint
• Carpet replacement or cleaning
• Landscaping refresh
• Minor repairs
• Light fixtures
• Deep cleaning
• Servicing major systems (HVAC, water heater, appliances)
Small improvements can drastically increase buyer perception and offer strength.


4. Should I stage my home

Yes. Staged homes photograph better, show better, and sell faster. Even partial staging or strategic design styling improves perceived value.


5. What is the typical commission in Colorado?

Commissions are negotiable, but average 5%–6% split between both agents. You're paying for pricing strategy, marketing, risk mitigation, negotiation, and transaction management — not just MLS access.


6. Can I sell and buy at the same time?

Yes. Strategies include:

• Rent-back agreements
• Bridge loans
• Extended closings
• Contingent offers
• Buying first and selling after (depending on financing)


7. Do I need to disclose previous issues like water damage or roof repairs?

Yes — Colorado requires full disclosure of all known material defects. Transparency protects you legally and reduces post-closing issues.


8. Should I order a pre-inspection?

In certain cases, yes. Pre-inspections help sellers identify issues early, reduce renegotiation surprises, and strengthen buyer confidence.


9. How much is my home worth?

Your home’s value depends on comparable sales, condition, updates, micro-location, and market conditions. Automated estimates (like Zillow) often miss $20,000–$60,000 in value locally. A full market analysis gives a more accurate number.


10. What makes a home sit on the market in Colorado?

Most often, pricing, presentation, or condition — not the market. Homes that feel dated or overpriced tend to attract lowball offers or no offers.

Veterans: Top Questions About VA Loans & Military Relocation

1. Can I buy a home with $0 down using a VA loan?

Yes — eligible veterans can purchase with no down payment and no mortgage insurance.


2. How does VA loan entitlement work?

VA loan entitlement determines how much you can borrow without a down payment. Many veterans mistakenly believe they can only use it once — but you can often use it multiple times, even after selling or refinancing.


3. Can I buy a condo with a VA loan?

Yes, but the condo must be in a VA-approved development (or qualify via a Single-Unit Approval). Many Denver Metro condos qualify.


4. Are VA loans competitive in multiple offers?

Absolutely — especially with strong terms, appraisal gap coverage, or rate buydowns. I specialize in structuring competitive VA offers that win.


5. What inspections are required for VA loans?

VA does not require additional inspections, but the VA appraisal ensures the property meets minimum standards and is safe, sound, and sanitary.

Funding & Mortgage Questions


1. What loan types are available in Colorado?

Common loan programs include:

  • Conventional
  • FHA
  • VA
  • USDA
  • Jumbo
  • Physician loans
  • Down payment assistance programs


2. What’s the difference between pre-qualification and pre-approval?

A pre-qualification is a verbal estimate. A pre-approval involves document verification and gives sellers confidence.


3. How do interest rates affect buying power?

Every rate change impacts your monthly payment and price range. A 1% rate shift can increase or decrease affordability by up to 10%.


4. What is mortgage insurance?

Mortgage insurance protects the lender when buyers put less than 20% down. FHA loans require it for the life of the loan; conventional mortgage insurance can fall off.


5. Can sellers help buy down my interest rate?

Yes — sellers can offer concessions that permanently reduce your rate or fund a 2-1 buydown.

Living in Arvada Top Questions

Coming soon

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