If It’s Your First Time Buying A Home, Read On

Getting into the real estate market for the first time can be very stressful. It is important to have a general understanding of what you should expect so you don’t encounter any unforeseen challenges. Buying a new home can actually be a fun experience if you have the proper expectations.

1) Talk with a real estate consultant. Most of us call them a buyer’s agent, real estate agent or Realtors, but the best ones are consultants. The biggest difference is that the consultants sit down with you and assess what strategy for buying a home is in your best interest. This may be one of the largest financial decisions you make in your life, so make sure you have a seasoned buyer’s agent looking out for your best interest. Avoid working directly with the listing agent, (the person who has their name on the for sale sign), as they have a legal obligation to do what is in the best interest of the seller, not you the buyer.

2) Speak to a Lender. One big rookie mistake for first time home buyer’s is to start their search withou knowing how much they can spend. Get in touch with a reputable loan officer that has access to a direct underwriter. Make sure they understand what you’re comfortable spending and adjust your purchase price accordingly.

3) Assess your wants and needs. There are certain things we want and there are certain things we need. Your wants and needs are very subjective to you and your personal preferences. Make a list of what you want and what you need and rate each of them on a scale of 1-10. Your list will be invaluable throughout the home buying process and will guide you through what you are willing to compromise for your ideal home. Make sure if there are co-signers that they are involved in this process as well. Just be forewarned that you might want use a pencil. You may find that you’re wants and needs may change throughout the process of looking at homes.

4) Know your market within your price range, criteria and area. This goes out to all of the San Diego first time home buyers. Don’t listen to the national media; you’re not buying into a real estate market that is conforming to the rest of the nation. San Diego is one of the first counties to get in this housing mess, and there are segments of our market that are already among the first to get out. Look at the sales inventory and sold properties within the last 90 days to determine what kind of market you’re in. Luxury home buyers are still in a buyer’s market, while entry level home buyers are in a very aggressive seller’s market. Ask your real estate consultant to provide you with this data.

5) Focus on your location. Location is the most important factor in purchasing a home. You probably knew that already, but remember it next time you are wooed by the granite countertops, the stainless steel and the extra 1,000 square feet. You can upgrade your home but you can’t upgrade the location of your home.

6) Negotiate. Negotiation is an art that depends on circumstance. If you’re in a buyer’s market than you will have many opportunities for a lot of homes that may fit your criteria. The most effective negotiating is done with knowing your market, because knowledge is leverage in the negotiation process. Make an offer according to your motivation to purchase the home your making an offer on.

7) Caveat Emptor, Buyer Beware. Always do your due diligence to make sure you know what you’re buying. Hire a home inspector to do a physical inspection of your property, and follow his recommendations for any further evaluation of the home. Regardless of how handy you may be or how much money you want to save, get a home inspection.
Funding and close of escrow. Once you have signed all of your loan docs, removed your contingencies, and signed and reviewed all disclosures you are ready to close on your new home. If you are not moving on your own, research reputable moving companies and schedule them well in advance. After you have funded and recorded with your county, you are ready to move in.

Interested in a Carlsbad home? Get access to all of the listings available on market updated daily, community info including maps, school info, real estate articles and more by going to Carlsbad real estate