Home-Buying: How To Find The Right Seller

The best seller is one who is highly motivated. A highly motivated seller is more likely to sell at a price that is less than his or her house is actually worth. And it matters that you find out why. Learning the reason why can help you get the price you want and help the seller get what they want: a timely sale.

When given the opportunity to meet with sellers, ask them why they are selling. The reason could be anything, such as a job change that causes them to move to a new location or financial problems. If you can solve their problem, whether it is cash related or time related, do so. For example, if the sellers are highly motivated because they need to move quickly, give them a fast sale – and a lower price. If you can make an offer, even a low one, that gives them cash in a short time, they are more likely to accept.

There are also some sellers that you should avoid. Not every seller is as genuinely motivated as they make themselves to be. Some possible hints:

• they stall on having the home appraised or inspected
• they are unable to clear up liens against their property
• they do not own 100% of their property
• they push back the move-out date
• they do not have a replacement property or back up plan
• etc.

It is impossible to find the perfect seller. But it is possible to find out which sellers are legit and which ones aren’t.

Tips for Buying a Vacation Home in San Diego

If you have ever thought about purchasing a vacation home in San Diego (who hasn’t?) there are many things to take into consideration before pulling the trigger. For those who don’t know where to start, or are just looking for some extra pointers, here are a couple very important tips to help guide you through the process and make it as easy as possible!

Google: Using Google search and/or Google Maps, look around and get to know the different areas of San Diego. Think of all the reasons why you want to buy a home here, and make a list of all the areas that offer you exactly what you want out of your vacation home.

Market Research: Now that you have your short list, research what the markets are like in each of the areas you have selected. Some examples of things to look at are:

Short-term rental demands and occupancy rates

Tourism demographics (i.e. is it growing? declining?)

Average sales price for vacation homes (also research how the market has grown over time)

Number of vacation homes for sale

If there are any new housing developments

What people say about the community (using websites such as TripAdvisor)

Becoming A Homeowner As A Millennial

If you are stuck with student debt you may feel like you have a ball and chain attached to your foot and think you may never be able to afford a home.  A study showed that close to 70% of millennials are waiting to become homeowners due to their student debt.

A student loan is only part of your overall financial profile so it is unlikely that will affect your ability to get a mortgage.

You will want to have a handle on the debt you already have so you can see how much more you can reasonably take on.

The biggest impact on your monthly payments will be how much you put up for a down payment and the interest rate on the mortgage.  There are calculators offered by Zillow, Bankrate, and others to calculate mortgage payments and affordability.

Downsizing: What you need to know

It probably feels like it was just yesterday that you moved into your new home, ready to start a life, a family. We all know how quickly time flies, and by now your youngest kid is off to college, or maybe starting their first job in the “real world.” And once you realize that they are really gone, that is when you start to think about what to do with all that space.

Some couples enjoy finally being alone in their homes, but for others, it’s just way too much space. In the past and even to an extent in the present, societal constructs have dictated that the home is as much of a status symbol as it is a place of dwelling, and because of this many people don’t want to downsize. However, a lot of people these days view downsizing as a step forward, rather than a step back. There are many benefits to downsizing, and this article will help explore whether or not this may be something for you.

How to know when to downsize

Many people choose to downsize simply because their home is just too big for them anymore. This happens most often when when children grow up and move out. But other factors can play in, such as wanting a home that is easier to maintain, or closer to a more urban area with lots of fun things to do. Sometimes downsizing isn’t even a choice, due to things like an unexpected financial setback.

A couple of questions to ask yourself

Will you miss your more spacious home?

You really have to ask yourself and visualize how your life would change were you to move into a smaller home. For instance, some people like having more spacious rooms, or higher ceilings. They like having a large yard, pool, spa, etc. If you move into a smaller home, you wont have many of these things, but you also don’t have to do any of the maintenance work required with having them either. For example, those who might have spent 8-10 hours or more of work each week cleaning the home or the yard in their larger house now only spend about an hour or two, maybe even less.

How will unexpected life events affect your smaller home?

One of the more common issues that can happen after you downsize is adult children moving back into your home. One way to prevent this from happening is to make sure they are comfortably settled into their new life before pulling the trigger on downsizing a little too soon. With the job market as terrible as it is, especially for young college graduates, you shouldn’t assume that your child will have an easy time finding, and keeping, a job after they graduate. Having an extra bedroom at your new place just in case, either for kids, relatives, or guests, is never a bad idea.

Hidden costs

It may seem very cut and dry, moving to a smaller, less expensive home means more money for you. Sometimes this is true, however there are a few factors to consider that you may not be thinking about.

A major component of downsizing that many people don’t think about is what to do with all of your belongings.

Deadly Homebuying Pitfalls

Buying a home is a huge deal for everyone. Unfortunately, there are many big mistakes and pitfalls that buyers often make. These mistakes complicate the home buying process and can cost you tons of money and time correcting the mistakes.

Many buyers get caught up in the excitement of purchasing a home and let their emotions make decisions, only to find out they missed an important step. This post will explore some of the biggest pitfalls buyers make when looking to purchase a home.

Deadly home buying pitfalls:

1 – Not Getting Proper and Professional Help

It’s important to remember that while you may be able to learn a lot about purchasing a home on the internet, it is impossible to learn everything. Real estate is a constantly evolving market and something you read just last year could now be useless.

There are many aspects of purchasing a house that buyers don’t even know exist. From the buyers and sellers agent, to appraisers,to inspectors, to attorneys and mortgage bankers. Each one of those jobs have professionals that perform those tasks 8 hours a day, every day of the year, and have perfected the profession. Trying to save a few hundred dollars by skipping out on an inspection or attorneys is foolish and almost always returns to haunt you.

2 – Not Getting Pre-Qualified Before Looking at Homes

Most people enjoy looking at new homes, but do not enjoy talking about the money aspect. Obtaining a proper pre-approval will save you tons of stress later in the process.

Getting a proper pre-approval allows you to know exactly how much money you are capable of spending on a house and helps you narrow down the market to what you can afford. Additionally, some buyers are able to use their pre-approval as a negotiating tool to help get the price down.

3 – Thinking Too Short Term And Ignoring The Long Term

When looking to purchase a home people tend to think about the next 4-5 years of their life, instead of the next 8-10, which is where they should be thinking. Yes, 5 years is a long time and a lot can change from job and marital status to children, but selling your home does have a cost. If the market does not appreciate quick enough you can stand to not get your moneys worth from the original purchase.

Obviously there are many circumstances that no body is able to predict, but spending time thinking through just some of the basic scenarios can save you a lot of trouble in the long run.

4 – Not Understanding The Full Costs Involved

There are many costs involved with purchasing a home that many buyers don’t realize. It is not just pay the listing price and it is yours. There is inspection costs, moving costs, closing costs, escrows, and more. Professionals can explain and walk you through all these extra costs, ensuring there are no surprises at the very end.

5 – Not Understanding Fair Market Value

One of the biggest issues when buying a house is buyers not understanding the market price of a home. People get caught up with what their parents think it should cost, or what you can afford in total, or with personal opinions about the price of a home which often is far different than the market value. There is a very organized process to determine the market price of a home that involves reviewing similar comparable homes that sold within the nearby vicinity.

It is important to know what the market value is because a house can be listed over, under, or exactly at market price. Being able to recognize the difference between the listing price and the market price can save you lots of stress and money and help you formulate a concrete offer.

 

 

 

What Dog Owners Should Know When Buying or Selling a Home

(Guest Blog By Medina James at DogEtiquette)

 

Image via Pixabay

 

Whether you’re buying or selling a home, if you’re a dog owner, there are some special preparations and precautions you must take. It may be one of the last things on your mind during this busy and stressful time, but real estate dog etiquette is extremely important. Here are some tips for both buyers and sellers who have to deal with canine friends throughout the process.

For sellers – your house smells more like dog than you think

When we live with certain smells for years, we get used to them. We all know that everyone’s house has a particular scent – and if you’re trying to sell your house you don’t want that scent to be eau de pooch. The natural way to get dog odor out of carpets and furniture involves baking soda and vinegar, but there are also plenty of sprays, shampoos, and other products you can purchase to help. Plug-in air fresheners work for the final touch. Also remember to pick up any dog poop in your yard. Here is a good article about removing pet odors from a house.

For sellers – make arrangements to have your dogs out of the house

This goes for scheduled showings and for open houses. You’ll want to make arrangements to have your dogs out of the house – and not just out of the house and in the backyard. You’ll want your dogs to be completely gone. Either board them for a day or ask a friend or neighbor to watch them for a few hours.

For buyers – ask ahead for dog visits

Some pet owners want to take their dog to a potential new home to see how they interact with it. Older dogs with mobility issues may have trouble with certain design elements of a home, and you may want to see if they can handle stairs, decks, porches, etc. before committing to purchase. If you want to do this, you need to ask. It’s rude to bring a dog into someone’s home without first clearing it. People have allergies, fears, and even other pets you must consider.

For both – think about moving day

Moving day is stressful for your pets, so it may be best to board them (here are some tips on that) or have them stay with a friend. If you can’t arrange this, it’s smart to put them in a “safe room” in your house and instruct the movers to move that room last. This is simply safer for the movers and for your dog.

For both – it’s best to leave your dog out of the process (no matter how cute)

You love your dog. Strangers may also love your dog. Most everyone you meet may love your dog. But somewhere there is someone who just doesn’t like dogs. Maybe they’re afraid or maybe they’re allergic. Whatever the case may be, some people just aren’t dog people. So why take the risk that a potential buyer/seller is in this small minority? Even if your dog is incredibly well-behaved and cute, it’s best to leave them out of the process altogether. Ask a friend to watch your dog, or hire a dog walker if the dog just needs to be out of the home briefly for a single showing.

Even dog lovers don’t really want to deal with other people’s animals during the home buying process. It’s not only considerate of others to leave dogs out of the process, but it’s better for your dogs too. Many dogs are stressed out by tons of strangers and new environments, so it’s best to protect them from the chaos that is buying or selling a home.

7 Need to Know Tips for Millennial Home Buyers

 

“How can I purchase a home?” is the question many millennials are asking themselves. Millennials  have been forced to look at the purchasing of real estate in a very different lens than the generations before them. The recent real estate recession is still all too fresh in everyone’s memory, and when coupled with student loan debt, high unemployment, and much tighter loan requirements, the very idea of owning a home can seem very unnerving, or even impossible.

Well great news — it isn’t. Those in their 20’s and 30’s that have considered buying a home are in a position to capitalize on extremely low interest rates. Historically real estate has been a very safe investment that has benefited many people. And just like every recession before this past one, the market always bounces back to a varying extent.

Owning a home can be a long term investment that will really pay off for you later in life. Take a look at our 7 need to know tips before you start your home search!

1. Seek help from a professional: If you are in your 20’s and are thinking about buying a home, you are already very ahead of the game. To get the most out of your home buying decision, you should hire a professional. A great example of this is that if you buy a home with road noise, it may not disturb you at all, however it will be much harder to resell in the future and might yield less of a profit. While living in an internet-centered world means that also any information you need is right at your fingertips, this is one life decision you don’t want to do alone.

2. Pick an agent who you can trust:  Although most millennials are very knowledgeable about the internet and are used to researching anything they need to know, a good real estate agent is invaluable during the home buying process. While you can certainly research homes you want to see with the click of a mouse, your agent has the industry experience and negotiation skills that will help ensure you get the best price for your dream home and that the transaction is as smooth as possible. Selecting an agent you trust is of the utmost importance and you should interview several agents before deciding on one. This may seem like common sense, but many home buyers go through family, friends, or a google search. While this may provide comfort in the short term, it could end up being a hindrance in the long term. Be sure to read online reviews not only on the agent’s website, but also independent review sites like Zillow or Trulia. Choose wisely!

3. Identify great locations and neighborhoods: A lot of first time buyers don’t realize just how important location is in real estate. It is the single most important factor that not only affects value, but determines how easy it will be to sell your home at some point down the road if / when you choose to do so. You may love the attributes of a particular home, but not have the foresight required to know that it might not be a smart investment.

4. Understand immediate and long term costs: There are many different costs that factor in to buying a home such as the mortgage application, mortgage insurance, home inspection costs and much more, which can add up quickly. Aside from these short term costs, many first time home buyers don’t budget properly for long term costs and expenses that come with owning a home. With knowledge of all the various costs and fees, you can plan more effectively.

5. Decide on what type of housing makes the most sense / Thinking towards the future: A major decision many face is deciding between buying a condo or a home. This requires planning for both the now and the future, which is what makes this stage rather difficult. You need to weigh your current life with the life you will most likely want to cultivate in the future. What does your 5 or 10 year plan look like? That influences everything from where to buy (good schools or not), what to buy (house with lots of extra rooms), and what kind of mortgage to get (30-year fixed vs ARM). Someone who’s buying a house for their family to grow up in looks different than someone with no immediate plans and different still from someone who is buying now, but is on track to make a lot more money in 5-10 years…they might consider moving up in 5-10 years before those kids ever really factor in the picture. Because San Diego can be expensive, it’s very important to make a good move now to set yourself up well for the future.

6. Choosing a fixer upper or a turn-key home: Another thing home buyers need to think about is what they will want to do with their property. Do you want something that will be just as you like it right when you move in? Or maybe you’ve always had dreams of designing your own home. This is a factor that many first time home buyers don’t consider, and should have some serious thought put into it.

7. Be patient: This may go without saying, but buying a home is a major life decision and needs to be treated appropriately. You should do copious amounts of research and really think about what you want, both now and in the future. Taking your time to familiarize yourself with the home buying process will allow you to make much more knowledgeable decisions. And remember, you can look at as many houses as you want to, and can make offers on ones you are interested without actually committing if you are unhappy with even the slightest detail. You only want a house that you will be truly happy with!

Wherever you are in your home buying process, we are ready to help answer any questions you may have!

How to Know If You’re Ready to Buy Your First Home

Buying your first home is a big endeavor; it’s an exciting and fun time. If buying is something you’re thinking about, think about these next few considerations to determine if you are ready!

Consider your Finances

A home is an important investment. Annual income should be the first consideration in buying a house. Most lenders will recommend a budget between three to five times your annual income if you plan on putting down a 20% down payment. There are also a few other financial factors to consider. Existing loans or debts, as well as poor credit scores, can make the buying process more difficult. If your financial state is stable and can handle the event of purchasing home, you are ready to buy.

 

Consider the Cost

Many consider the price of the monthly mortgage when considering buying a home, but many forget about the other costs involved. Property taxes, insurance, HOA Fees, and utilities will all add to the cost of owning a home. You will also need to make sure you have money leftover after all of that as an “emergency fund” to pay the repair man in case your roof starts leaking, your pipes burst, or your refrigerator breaks down. If you are able to manage those costs as well as the monthly mortgage, you are ready to buy.

 

Consider your Lifestyle

Most experts agree that buying a home makes financial sense if you know you’re going to stay for a minimum of 5 years. A lot of different factors can influence where you call home. Do you have a secure job? Does your company transfer often? Do you have an expanding family? If your employment situation feels secure and you are content with the size and location of the home you would be purchasing, you are ready to buy.

 

The process of buying your first home is more time-consuming than it may seem, but the end result is worth all of the efforts put in!

 

 

What You Actually Need to Buy a Home in San Diego

Have San Diego’s perfect weather, delicious Mexican food, beautiful beaches, and amazing sunsets convinced you to stay? Are you dreaming about buying a home in sunny San Diego? These eight steps will help make that dream a reality!

 

 

Step 1: Become Familiar With The Real Estate Market

According to an April 2016 article from Time Magazine, San Diego is predicted to be one of the hottest real estate markets over the next five years. Home prices are expected to increase modestly over the next few years. Low inventory has us in a competitive seller’s market, meaning that buyer’s have to compete for the few available homes, especially in the entry-level price ranges.

 

Step 2: Build Strong Credit

Simply put, the better your credit, the better rate you’ll get on your mortgage. A great credit score is evidence that you are a “good investment” for the bank.

If your credit is less than stellar, you will want to work to improve it.

• Pay your bills on time.
• Don’t take out more credit cards than you need.
• Don’t max out your available credit on the cards you do have each month.
• Pay down credit card debt.
• Check your credit report for inaccuracies and get them corrected.
• Raise your credit line when able. This increases your debt-to-credit-limit ratio.

 

Step 3: Save for a Down Payment

Very few people have enough cash to buy their first home without a mortgage. Most need financing to afford today’s home prices. But there are many different mortgage programs out there. As a first-time home buyer you can buy a home with less than the standard 20% down, sometimes as low as 3.5-4% down, but you may have to pay Private Mortgage Insurance (PMI) to the lender on top of your mortgage. For some people, that will require a budget adjustment or to wait until they can save up for a larger down payment. There are many different affordability calculators online that can help to determine an individual budget more closely. You can take a look at ours here, which will give you a rough idea of what you can afford.

 

Step 4. Choose a Real Estate Agent

Who you work with matters. Not only is it important to select an agent who is knowledgeable in the area(s) you wish to buy in, but you also want to choose someone whom you trust and who makes you feel comfortable. In most cases, your home purchase will be your largest purchase to date. When selecting a real estate agent, you’re also picking someone who will be the custodian of that transaction. You will want to interview a few agents to determine who is your best fit. Ask the agents you’re interviewing if they have reviews from buyers like yourself and/or if they can provide you with a list of their past clients. Nobody knows a real estate agent better than the people who have hired them!

At Coastal Premier Properties, we will hand-pick an agent that will be a great match for you and your real estate needs.

 

Step 5: Research & Get Pre-Approved for a Loan

Your real estate agent can point you in the direction of some great lenders who can look at your finances and determine how much home you can afford. Not every mortgage program is the same, so it’s important to talk to a few different people and look at different programs and loan types before deciding what will be best for you.

Your lender will provide you with a Pre-Approval Letter, which is key to getting a home in a challenging market place. The letter is a note that states how much home you can afford. When sellers are choosing between competing buyers, having that Pre-Approval Letter is an extra assurance that you are a legitimate buyer and if they go into escrow with you, that you have the funds to purchase their home.

 

Step 6: Narrow Down Your Search

Now that you know how much horse your can afford, where do you want to buy? Explore different neighborhoods and find the one that best fits your needs. Explore shops and dining, research commute and traffic information, look up pictures of houses in the area, and see which one feels like your perfect fit! What kind of house do you want? Create a wish list of your wants and needs for your future home. List the amount of bedrooms and bathrooms you want, a preferred house style, ideal yard size, or any specific property features you are looking for.

 

Step 7: Begin Viewing Properties

This is the fun part! Start viewing properties that fit your criteria. See what’s available! Your ideal choice may change during this process, as you explore the different options and see the market up close. Take your time and look at as many options as you want! Buying a house is a big decision, so you want to be well informed on what is available.

 

Step 8: Put Together an Offer and Buy That House!

Once you have decided on your dream home, you will need to put together an offer. Your agent will help you come up with the best offer strategy. Try to look at recently sold houses in the same neighborhood that are comparable to the one you’re looking to purchase for an idea of the price you will need to pay. Once an offer is accepted, the contract will be drawn up, and after the closing date comes, that dream house will be yours!