Tips for Successful Home Buying
Buying a home in San Mateo County can be complex and confusing, especially for first-time home buyers. The following steps will help you better understand the process and keep you on the road to success.
1. Find a Good Agent
Working with a San Mateo real estate agent has many advantages. Realtors have access to numerous resources that you as an individual do not. You can also benefit from their past experiences of helping people buy and sell homes. Here are just some of the ways a real estate agent can help you buy a home: |
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- Work with you to determine how much of a home you can afford and refer you to lenders
- Provide you with resources to aid in your home search
- Select the homes that best suit your desires: size, location, features, school district, style, neighborhood and other features
- Provide you with objective information about the property, neighborhood, schools, utilities, zoning
- Help you negotiate price, financing, closing date, repairs and other contingencies
- Guide you through the closing process, including financing, termite inspection, home inspection, title insurance and other requirements
You don't want to be at a disadvantage when negotiating a contract. The seller has an agent representing them, looking out for their best interests. You too can benefit from the services of a professional real estate agent who will help you buy the house you want at the best price.
2. Sell Your Home First
Buying a home on a contingency basis can end up costing you money. By agreeing to a contingency offer, the seller is giving up the ability to consider other offers that may come along and is potentially leaving money on the table. This gives them bargaining power and lessens your chance to negotiate a lower price. It may also cause you to accept a lower price in order to expedite the sale of your house and, as a result, lose even more money.
There is nothing wrong with casually looking to see what is available in your price range and the area you like. You will then be prepared when your house does sell. Just be careful you don't get attached to anything.
3. Get Pre-Approved
Pre-approval can give you negotiating strength. But don't confuse it with pre-qualification. Getting pre-qualified gives you an idea of how much you will likely be able to borrow. However, it is not a guarantee. Your income, assets, debts, other liabilities and credit report are analyzed but none of the time consuming verification is done. You will still need to apply for a mortgage.
Pre-approval is much more involved, requiring you to actually apply for a loan. This process can take anywhere from a few days to a few weeks. Some lenders will also charge an up-front application fee to cover the credit check. Once completed, any worry about last minute financial problems will be eliminated. It will also give you an advantage when negotiating, especially if the seller is considering other offers. Pre-approval assures the seller of your exact buying power.
4. Focus on the Facts
Buying a home can be an emotional rollercoaster. Knowing what factors are important to you before you find your potential dream home can help you stay objective. Remember, a house is an investment, one of the most expensive investments you will make in your life.
When considering a purchase, stay focused on the facts. Keep in mind that some features are easily changed, like paint, carpet and window treatments, and shouldn't deter you no matter how outdated or distasteful they are. Instead, focus on the more permanent elements that are fixed or changeable only with much effort or expense, such as location, structural integrity, floor plan, lot size and school district. Here is a list of questions and considerations to help you determine what you want in a house. Keep your answers in mind when analyzing a purchase to make sure you are being logical about your decision.
- Price: Your lender many have pre-approved you for a certain amount, but are you comfortable with the monthly payments? Will you have enough money for closing costs, moving expenses and any immediate repairs or upgrades that are necessary?
- Condition: Is the house in move-in condition or is it a fixer-upper? Can you meet the financial challenges of any major work and are you prepared to withstand the mess and inconvenience? What imperfections can you live with and what can you not?
- Location: Is the house in a good school district? What is its proximity to schools, work, grocery stores, leisure activities, freeways, public transportation, parks? What is traffic like? Crime rate?
- Size and Layout: Does the house meet your size requirement both in number and type of rooms? Is the room arrangement convenient to your lifestyle? Does your furniture fit? Are there enough windows? Is the garage wide enough for your vehicles? Does the lot size meet your requirement?
- Style: Do you prefer a ranch or a two-story? Are you more traditional or modern?
- Features: Does it have the features you like: appliances, hardware, hardwood floors, fireplace? Features you don't like: swimming pool, high maintenance landscaping? What features can you live without? What features might be a burden?
- Resale Potential: Do you love the house but think it would be difficult to sell? Do you plan to stay in the house only until you can afford something bigger?
Don't be pressured by anyone (or your emotions) into making a decision until you've seen enough houses. Such a significant investment shouldn't be rushed. Also, be prepared to reassess your priorities if you are having difficulty finding a home that fits your parameters and your price range. A good agent will help you analyze the tradeoffs that sometimes have to be made. They can also serve as a good resource when seeking pre-approval.
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