First-time home buying...Experience speaks a thousand words!
When
we started house-hunting early last year,the Californian Bay Area
market was just recovering. Our target area was a neat school district
in Alameda county. Nice city with great history, good schools, convenient
shopping, good commute time and of course a kid friendly neighborhood.
It was a seller’s market undoubtedly, only that very few sellers seemed motivated to sell."Not enough houses to show around", commented our real estate agent.
To make matters worse, there were multiple offers on almost all properties, which was the end result of the scant inventory. We even competed for bids beyond our original budget."Here we are...let's win the race"…. We were in full gusto…. and at one point almost hopelessly desperate to close a deal. We still lost all (except for the last one, of course) for all cash offers.
We felt time and again ..."So many buyers, so few 'quality' houses".
I could see from the majority of potential sellers' perspective. They had seen their properties listed for thousands more than what they were worth currently. So they chose to wait...who knows, history does repeat itself?!
After searching frantically for a year and half, we managed to close on our blessed home a few months ago. Nevertheless, the whole experience has left me happier and certainly much wiser.
It was a seller’s market undoubtedly, only that very few sellers seemed motivated to sell."Not enough houses to show around", commented our real estate agent.
To make matters worse, there were multiple offers on almost all properties, which was the end result of the scant inventory. We even competed for bids beyond our original budget."Here we are...let's win the race"…. We were in full gusto…. and at one point almost hopelessly desperate to close a deal. We still lost all (except for the last one, of course) for all cash offers.
We felt time and again ..."So many buyers, so few 'quality' houses".
I could see from the majority of potential sellers' perspective. They had seen their properties listed for thousands more than what they were worth currently. So they chose to wait...who knows, history does repeat itself?!
After searching frantically for a year and half, we managed to close on our blessed home a few months ago. Nevertheless, the whole experience has left me happier and certainly much wiser.
Tips that may help...
1.
Stay within budget. This is where many of us ( first-time home buyers)
don't see past the initial 20% down payment. In our case, the buyer had
to pay most of the closing costs. Also include the inevitable
inspections, appraisals reports.
Also once in home, there are a few immediate fixes ( changing paints, toilets, carpets etc). Plan with a comfortable buffer amount for what is beyond the mortgage payment.
2. Choose a good school district unless you want to send your kids to private school. Compromising on schools for a better deal may not be a good option, especially since the future price of your house is determined by this very factor. Also a good school district is one less worry in the long run.
3. Check for sex offenders nearby. There are various websites (http://www.meganslaw.ca.gov/) including local police sites. If the vicinity is less than half a block, this may play a role on the price of the house to an extent. Again, different research studies have different things to say on the actual impact of this factor.It's your personal reasoning and choice but worth a consideration.
4. Go around the neighborhood, talk to few people before you place an offer. This is very important and often ignored. Understand that you are going to be part of that community and it's better you understand the dynamics.
5. Visit the local city office to check for the house permit papers and any related documentation available for public viewing. This is another aspect most of us skip. If you find yourself involved with 'unpermitted' work in the property, it is a lot of hassle later on especially if you have signed an 'as is' clause in your contract ( Buying the house in ‘as is’ condition).
6. Just before closing on the house, have a final walk-thru with your real estate agent. This is important if the house was occupied when you put an offer (which is common these days , at least for many of the houses we saw). This is your one final chance to review everything.
7. Ask as many questions as possible. Your real estate agent and also the title company will help you with questions regarding the house and/or the title insurance. Also on previous liens if any. It is always better to know.
Enjoy as you transform the house to your “home sweet home”....A few tips go a long way!!
Also once in home, there are a few immediate fixes ( changing paints, toilets, carpets etc). Plan with a comfortable buffer amount for what is beyond the mortgage payment.
2. Choose a good school district unless you want to send your kids to private school. Compromising on schools for a better deal may not be a good option, especially since the future price of your house is determined by this very factor. Also a good school district is one less worry in the long run.
3. Check for sex offenders nearby. There are various websites (http://www.meganslaw.ca.gov/) including local police sites. If the vicinity is less than half a block, this may play a role on the price of the house to an extent. Again, different research studies have different things to say on the actual impact of this factor.It's your personal reasoning and choice but worth a consideration.
4. Go around the neighborhood, talk to few people before you place an offer. This is very important and often ignored. Understand that you are going to be part of that community and it's better you understand the dynamics.
5. Visit the local city office to check for the house permit papers and any related documentation available for public viewing. This is another aspect most of us skip. If you find yourself involved with 'unpermitted' work in the property, it is a lot of hassle later on especially if you have signed an 'as is' clause in your contract ( Buying the house in ‘as is’ condition).
6. Just before closing on the house, have a final walk-thru with your real estate agent. This is important if the house was occupied when you put an offer (which is common these days , at least for many of the houses we saw). This is your one final chance to review everything.
7. Ask as many questions as possible. Your real estate agent and also the title company will help you with questions regarding the house and/or the title insurance. Also on previous liens if any. It is always better to know.
Enjoy as you transform the house to your “home sweet home”....A few tips go a long way!!
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