I Found the Home of my Dreams…!

You really can buy your dream home!
You really can buy your dream home!

You have finally found the home of your dreams, but how much should you offer? Without a doubt this is the question I am asked most frequently when working with buyers, especially first-time home buyers. It isn’t always an easy question to answer but there are a few tips to help you make that decision:

1. Ask your agent how much comparable properties in the neighborhood have sold for.  The best indicator of value is the selling price of homes that are similar to the one you are hoping to purchase. Your Realtor can run a search and show you exactly which homes have sold, when, for how much, and generally show you pictures so you can compare condition, location and amenities.
2.  Ask yourself how badly you want this home. For some people, it is just a house, for others it is THE house. If this home is the only one that you believe will meet your needs in the next 5-10 years, you will probably want to make an offer higher than if it is just one of several that will work.
3.  Are you going to ask for the seller to contribute toward your closing costs? If you are, you should factor that into your offer. The more you ask for in the form of seller credits or seller-paid inspections, the more appealing that offer should be. Anytime a buyer is asking for concessions, the offer becomes less and less appealing to the seller. You can compensate for that in your offer price. Ask your Realtor what costs are typically paid by the seller and which are paid by the buyer. This can help you structure your offer to be more enticing to the seller.
4.  Can you afford it? Just because a lender tells you that you can borrow a certain amount doesn’t  mean that you are comfortable at that payment. Look at your budget and decide how much you can manage each month and still put a little into savings for the future. If you have to offer more than that amount, it might be wise to keep looking. Buying a home is probably the largest financial investment most of us will ever make. It is important to do your homework and seek the advice of a licensed real estate professional. Working together with your lender and your Realtor, buying the home of your dreams can be a reality. Happy house hunting!
You really can buy your dream home!

Making Smart Choices as a First-Time Home Buyer, Part 2

In my last post I talked about finding out how much you can afford, what types of loans are available and a little bit about reality in the real estate market.  This post will give you some insight on whether to buy a new home or an existing home, as well as information on home inspections and disclosure laws.

Do I buy a new or an existing home?
Do I buy a new or an existing home?

Buying a new home is similar to buying a new car.  It has that special smell and no one else has ever driven/lived in it.  It comes as a clean slate with everything shiny and new.  Just as you pay a premium for that new car, you will usually pay a premium for a new home.  For some it is worth it, for others it isn’t.  If you decide you can’t or choose not to afford to pay that premium, there are some things to investigate on an existing home.  How old is the roof?  When was the heating and air conditioning system last replaced?  Has the home been re-wired or had the plumbing updated?  When were the appliances last replaced?  Have there been any inspections performed recently?  There is a long list of questions and one of the best places to start in getting those answers is with a home inspection.

Home inspectors come in all shapes, sizes, and costs.  There is no licensing body, at least in California, although

A home inspection is a step you should not skip.
A home inspection is a step you should not skip.

there are associations they can join.  How easy it it to become a home inspector?  It could be as easy as creating a website. With no test, no licensing body and no experience required, you should take extra care in finding a qualified home inspector to inspect the home you plan to purchase.  One of my favorite inspectors is a member of a home inspection trade group and has taken a test to prove competence to their certification standards.  He also holds a current California Contractor’s license.  When you are looking for a home inspector, ask around.  Your Realtor can help you find a competent home inspector , and if you have had friends or family who recently purchased a home, you can ask for their advice.  Whatever you do, don’t select a home inspector based on their fee.  The worst home inspection I ever saw cost next to nothing.  You literally can get what you pay for.  But don’t skip this step.  Getting a home inspection can help you understand the true condition of the home you are buying.  The report can suggest issues that should be addressed due to health and safety, and it can put your mind at ease about other potential issues.  If the inspector suggests you get another trade in for further inspection, it is wise to follow their advice.  Once you know everything you can about the property, you are in a position to make an informed decision about whether to proceed with the purchase.  I cannot emphasize enough how important a home inspection is.  And I am talking about an inspection by a qualified inspector, not just your contractor friend.

Disclosure.  What exactly is it and who does it?  California law requires that sellers of residential property of 1-4 units must disclose any known issues regarding a home’s plumbing, electric system, foundation, roof, interior and exterior walls, appliances and many other areas.  There is a questionnaire for a seller to complete that discloses if the home has had repairs recently, or if it has been painted or there are ongoing services such as pest control, or if there have been pets on the premises.  The seller must disclose if there have been lawsuits and even if someone has died on the property in the last three years.  When you receive copies of these disclosures review them carefully and don’t hesitate to ask questions.  Your agent can help you get more details on any area where you need more information. This entire process is designed to give you adequate information to make a decision to purchase the home of your dreams and to feel good about it at the same time.

Buying a home is probably one of the largest financial transactions in which you will engage, and buying your first home can be practically overwhelming.  Find a good Realtor and let them help you through the process.  An experienced Realtor can help to lessen the stress, help you understand the huge amount of paperwork and information that will be presented to you, and they can help you overcome the hurdles that are likely to pop up.  As a first-time home buyer there is no reason to go it alone.  Working with the right Realtor, we really can make real estate simple, well almost!

 

$130,000 for a 3 bedroom home in Yuba City?!

45 Toldeo Street, Yuba City
45 Toldeo Street, Yuba City

Yes, you read that correctly.  This home is over 1400 square feet and has a HUGE master bedroom with a walk in closet and a fireplace.  Located in central Yuba City, you won’t find a better buy.  The home has some hardwood floors, some tile, and some carpet.  There is a large fireplace in the family room and in the master bedroom and the kitchen was redone several years ago.  The backyard has plenty of space for a garden and the RV parking is an added bonus.  There is nothing priced lower with this square footage that offers so much.  Call today for your private showing, but don’t wait because this one won’t last long.  FHA Case#043-810875.  HUD home sold as-is.  Equal housing opportunity.