Last year, I was trying to convince you, loyal reader, why then was a great time to buy real estate in Denver.

A few of you listened, and I congratulate you. Still, many others decided to wait it out and missed out on some amazing properties selling at the lowest prices this market has seen in ten years.

Of the homes that I sold in the past year, each client got an amazing deal,. These homes often came with built-in equity (purchased under market value), some with the potential for some sweat equity (strap on the tool belt for these homes), but every home is now worth more than it was when it was purchased.

In fact, one home in particular was recently assessed at over double the purchase price. Now, of course that is an extreme example of equity gain, but according to recent statistics, on average, homes in Denver gained over $29,000 in value during the past three years. So, while many of the thirty largest metropolitan areas in the country are still seeing declining home values, the Denver real estate market has recovered and is already gaining value again.

If you had been contemplating a home purchase last year but decided to wait, don't beat yourself up about it. Interest rates are still near the lowest levels on record and, according to many experts in the field, are going to remain low for at least the next 12 to 24 months. So, money is cheap and many of the major national and regional banks have relaxed the grip on their money and have begun to lend again in earnest. In fact, a 620 credit score will open the door to an FHA loan and a score of 740 might let you see a conventional mortgage rate of around 4.25%. (Of course, there are many factors in obtaining a mortgage and you should consult your mortgage professional for all of the details.)

Now, dear reader, you are likely wondering if there are any good deals left out there in the Denver market. To this I can say that there positively are still good deals in the Denver market. Sure, you missed the bottom of the market as a whole, and yes there are neighborhoods which are starting to see significant demand, price increases and even some bidding wars(?!), but there are “bargains” to be had in some great neighborhoods. And, according to the Wall Street Journal and other publications, Denver offers some of the best home values when compared to renting similar properties.

This being said, the number of properties for sale in Denver is hovering around 10,000 which is less than half of the number of properties for sale even three years ago. What this means for a potential homebuyer is that desirable properties listed for sale under $400,000 are often under contract within a few weeks of coming on the market, and in many cases, are receiving multiple offers. There is competition in the market again and the buyer that is pre-qualified for a mortgage, has a down payment ready to go, and is working with a Realtor is at a distinct advantage over those potential buyers who are “just looking around” and aren't prepared to make a strong offer on something they like.

So, if you are considering a home purchase in the next six months, there are a few very important things you should do to prepare. First, speak with a Realtor, then speak with a mortgage professional to get pre-qualified for a mortgage. This will set a price range of homes for you to begin looking at and will save you some possible disappointment if you were to fall in love with a home that you couldn't afford. Once you have become qualified for a mortgage, have your Realtor begin a home search based upon what is available in your price range.

Think about why you are buying the home when you are speaking with your agent, and try to be honest with yourself. If you love to cook, then perhaps a great kitchen is the most important feature in your new home. If you have two cars and a motorcycle, then maybe you need a garage to keep those “toys” safe and out of the weather. Maybe an outdoor space is paramount, or the home's proximity to restaurants or parks or good schools is what you find to be the deciding factor. All of these things will help your Realtor narrow down suitable homes and neighborhoods for you.