Kenna Real Estate Group · Colorado buyers
When the house runs out of room, the calendar decides, not the rate. Here is what the bigger home costs at 7 percent, how a seller credit cuts the payment, and how to sell the small one in the same move.
A live person answers. Not a robot, not a phone tree.
The jump from a 3-bedroom to a 4-bedroom in the Denver metro is about $100,000 to $150,000 of price, which is $660 to $1,000 a month at 7 percent with 20 percent down. A seller credit used as a 2-1 buydown takes $600 of that back in year one, and the equity in the home you are leaving covers the down payment for most 2019-and-earlier buyers. The move is a calendar problem: sell and buy in the same window without carrying two payments.
4-bedroom homes
$100K to $150K
About $660 to $1,000 a month at 7% with 20% down.
Seller credit
$10,000
Saves $616 a month in year one on a $480,000 loan.
Days on market
53
Homes past 30 days with a price cut are the ones that give the credit.
Timing
Rent-back
Sell first, stay in the old house while you close on the new one.
| Home | Price | Principal and interest at 7%, 20% down | All in (taxes, insurance) |
|---|---|---|---|
| 3 bed, 2 bath, 1,600 sq ft | $500,000 | $2,661 | about $3,200 |
| 4 bed, 3 bath, 2,400 sq ft | $625,000 | $3,326 | about $3,950 |
| 5 bed, 3 bath, 3,000 sq ft with a finished basement | $725,000 | $3,859 | about $4,550 |
Rates in the table are the note rate. With a $10,000 seller credit as a 2-1 buydown the 4-bedroom payment drops to about $3,330 all in for year one and about $3,640 in year two. Metro districts in newer subdivisions add $250 to $400 a month; check the parcel before comparing.
The fourth bedroom is a finished basement in most 1970s to 1990s Front Range subdivisions, and a basement bedroom costs half what an above-grade one does. Search the basement and finished-basement pages by city, then the 4-bedroom pages.
kennarealestate.com · free guide
What to ask for by loan type, the 2-1 buydown math on your price, the offer wording, and the inspection credit script
Ask for a credit, not a lower price. A $10,000 credit as a 2-1 buydown saves $616 a month in year one; the same $10,000 off the price saves $66. Sixty-three percent of Denver-area sales include a concession.
Prepared by
KENNA REAL ESTATE GROUP
Call or text 303-955-4220 · A live person answers.
Budget the closing costs on the bigger home before you compare payments: closing costs for Colorado buyers.
Text the bedroom count and the city to 303-955-4220. A live person sends the homes and the payment with the credit priced in, and the net on the home you are leaving.
Call or text 303-955-4220What is my home worth?About $100,000 to $150,000 in the same neighborhood, which is $660 to $1,000 a month at 7% with 20% down. A basement bedroom is the cheapest fourth bedroom on the Front Range.
In this market, yes for most people: sell first with a 30-to-60-day rent-back, or buy a home past 30 days on market with a sale contingency. Carrying two payments at 7% is the expensive option.
Yes. Sixty-three percent of Denver-area sales include a credit averaging about $10,000; used as a 2-1 buydown it saves about $616 a month in year one on a $480,000 loan.
The rate on the old loan goes away when you sell no matter what you buy. Compare the new payment with the credit against what the extra room is worth to you over the years you will live there.