Shopping Bay Area Homes? Don’t Make Mistakes!
Buying a house is a huge investment, perhaps the biggest one you will ever have to make. If you are shopping for a new home in the Bay Area, you need to put a few things into perspective before making the final decision.
However, homes in the bay area are selling faster on average than anywhere else in the country. So, pull up your socks, find a realtor®, and get to work before it’s too late!
Let’s start by discussing how to avoid common mistakes before investing in a property. First-time house buyers are bound to make a few mistakes, and these mistakes can be costly. This is why we need to provide a brief list of what to do and what not to do.
Choosing the Right Bay Area Realtor®
It is normal for a human being to make impulsive decisions that often turn out to be wrong. The most common mistake a person could make while buying a house is choosing the wrong realtor®.
But how to choose the right one?
Ideally, instead of looking for the best realtors, focus on someone who is familiar with working with your current situation and circumstances and has deep knowledge about the Bay Area market. Look for a realtor®,as opposed to a real estate agent. This designation means they are a member of the National Association of Realtors®. In fact, we have an entire article devoted to whether your bay area Realtor® is protecting your interests! That’s how important this choice is.
Figure Out Your Budget
Without knowing how much you can afford to spend on a real estate property, you might waste your precious time. You will end up looking at homes in the bay area housing market that you can’t afford or visit homes that are below your optimal price level. To avoid such problems from occurring, create a budget and select the house that will fit right into your parameters; otherwise, you are just looking at options that are useless.
Your goal here should be to buy a house within the amount you have planned to spend because sometimes it is good to look at homes below your budget so you are able to offer more that asking and be competitive with the other offers.
Bonus Tip: use a mortgage affordability calculator to figure out what price range is affordable!
Using a Local Bay Area Lender
Online mortgage lenders promise quick approvals and convenience, which can be appealing to any millennial buyer. However, it would help if you still considered local lenders due to their expertise and relationships with the local market. I have several I work with and can help you find the best one for you.
You need a local mortgage professional who knows the Bay Area home prices and understands the real estate market of the area. Local lenders have relationships with Realtors® and can inspire more confidence in your offer.
When you work with my preferred lenders, we can meet deadlines and get prompt responses to our needs, due to our ongoing working relationship.
In short, local lenders know the market in your area better than anyone else and have a better understanding of the local economy and property values around. Moreover, they also have an incentive to provide you with excellent service so you can become their source of referrals for future business.
Home Inspections in the Bay Area
In the past the trend was to have a home inspection and use the findings to negotiate with the seller. Currently, buyers are waiving their right to inspections and making non contingent offers on appraisals in order to have a competitive offer. It may be a good idea to have an inspection so you know of any issues that may not be apparent to the naked eye, but you may not want to ask for things to be fixed by the sellers, so the transaction stays intact.
The most crucial home buying tip is to check the foundations of the property, including huge cracks in walls or ceilings. As a first-time buyer, you also need to check any areas wallpapered, chipped paint, electrical wiring, etc., that need to be fixed. At least consider the cost to fix these items even if you plan to make the repairs yourself.
Never Get Emotionally Connected
You never want to fall in love with a house without knowing what it has in return for you. Getting emotionally attached will make you do anything to get that property, and you will end up overpaying for it.
Stay level headed, and remember that it is a serious commitment, and you will have to live with it for years. The buying process of a house may already be emotional enough, and that’s why you need to work with a trusted realtor®, to make sure you are making a decision that is best for you. In the current market, consider buying based on things that cannot be changed.
If you are on the fence about a home because of cosmetic issues or things easily changed, you may want to move forward. There are less homes available than there are buyers and finding a property with most of your needs, may be your best option.
Don’t Forget the Closing Costs
You now have scrimped and saved for the down payment, but did you remember to budget for the additional closing costs? Well, it is normal to forget about such minor details, which is why we are here to give you a healthy reminder.
Closing costs, also known as settlement costs, are those expenses associated with the sale and purchase of a house. These costs include title insurance, taxes, lender fees, appraisal, etc. We recommend the Bay Area homebuyers to be ready to pay about 3 percent of the offer price for the closing costs. However, closing costs depend on the property’s value and where it is being sold.
These costs can add up and be beyond your budget, make sure to plan for more than just your down payment.
In Conclusion, Your Bay Area Licensed Realtor® Can Help You Avoid These Common Mistakes
Buying or selling your house or a real estate property is no small feat and requires a lot of work and research. With the help of our list, your work has now been made easy. Buy your dream home in Bay Area and ensure that the process goes as smoothly as possible while making the least amount of mistakes possible.
Let us know in the comments below if our blog was helpful to you! Do remember to leave us your feedback and tell us your thoughts. And don’t forget to check out our other article on this topic which is devoted to whether your bay area Realtor® is protecting your interests!