Common Home Buyer Mistakes
Since the economic downturn, you might think the Marin Real Estate Market would be slow. Even with all the gloom and doom in the news, our market is still relatively busy in some price brackets. One interesting thing is that with the foreclosures and short sales most of them had buyers, especially in the under $1 million range. Even after existing home sales dropped after the government perks expired in April, projections are that 4 million homes will sell in 2010. Along with historically low interest rates, this could be a great opportunity for first time home buyers without a home to sell. But before you rush out and make a decision on buying a home, here are some common buyer mistakes to avoid.
1) Find out what price range you can afford before looking too far.
It is easy to do window shopping with searches like “Marin County Real Estate Listings” and to find price comparables called “Comps” and it is fun. But there is much more to deciding what you can afford than using all the Mortgage calculators online. The banks are using more information to qualify you for a loan than before so you don’t want to be disappointed. Get an appointment with a Mortgage Broker and find out what price range you should be looking for. Together with your Real Estate Agent, they will help you determine total costs of owning a home. This is especially important if you are looking at homes under $1 million in Marin County as sometimes there are multiple offers, even in this market, and you want to have your financing in order. Contact me if you would like any referrals regarding Mortgage Companies.
2) Use a Real Estate Agent
Buying a home is much more involved than most people think. As a buyer, when you hire a Real Estate Agent they are obligated to protect you and look out for your best interest first. The legal aspects of offers, counter offers, addendums, inspections, disclosures, etc. can be confusing and dangerous if not handled by a Realtor. These days with the number of Short Sales, REO’s and Foreclosures the intricacies become daunting.
3) Do not scrimp on thorough inspections
After the initial excitement of finding your dream home, let people with objective, experienced opinions look at every aspect of the home, no matter what its age. This is especially important with older homes that have that “Charm”. It might seem like overkill when your agent suggests you have Mold, structural, geologic, plumbing and other inspections it can save you thousands of dollars and headaches in the future.
4) Learn about the neighborhood you are considering
A house can always be improved but you can’t do much about its location. Talk to neighbors; take walks at different times of the day and week to get to know what it is like. Feel good about the area before making a commitment. If you have young children look at the schools, even if you think this home will be a stepping stone to a different home in a better school district circumstances might force you to stay longer than you anticipate. You don’t want your child’s education to suffer, plus it could help the resale value of your home.
5) Set a high price you are willing and able to pay. When you find the perfect house, you must assume if you like it, then others do also. Listen to your agent for their opinion on what negotiating strategy to use. Some homes that have been on the market for some time have parties waiting to see what happens, hoping the owners will get desparate. Then when you come in with an offer they become aware of it and a bidding war starts with other parties you did not know were interested. This is when you must stick with your high price and again listen to your Agent.
Please don't hesitate to contact me with questions,
Sandi Bowman
