We have heard from many agents Buyers are waiting until after the first of the year to make their purchase.
They are trying to time their purchase when the market is at the bottom. This could backfire greatly.
When the market bottoms out , Buyers will lose some clout. You will not have Sellers willing to pay closing costs and accept low offers.
Interest rates may or may not be where they are today, most likely they will stay low for a bit but if you present your offer to have the seller pay your closings costs and buy down a point you will save greatly. In fact, you would save more on your mortgage vs waiting for the house to drop down another $20,000 or so.
With the inventory so great, Buyers can pretty much pick and choose their location , home and price. Unlike a few years back.
If you are thinking of purchasing keep this in mind:
1-Be sure of your location in regards to commute and proximity of schools etc
2-Plan on living there for at least 5 yrs
3-Get PRE APPROVED before you even start looking
4-Only look at 5 homes at a time....It is exhausting and confusing(make a scale of 1-10 with ten being the most desired and 1 being the least desired. Anything below 7 toss out.)
5-Go back and look at the home again. Do not get caught up on cosmetics. Cosmetics are easily addressed.
Look for functionality , solid foundation, upgrades, good roof, updated plumbing and wiring.
Do not purchase on emotion. This is a business decision. Which brings me to the next IMPORTANT step:
6-Choose a good agent. A good realtor will be a sounding board and will help allay the emotional and bring you down to the reality of the home and its good and bad points. A good realtor will help you negotiate terms that will be of great benefit to you.
7-Once your decision has been made, an offer has been accepted-GET a Home Inspection. If the home you choose has a pool, septic or on a hill make sure you obtain the services of a qualified inspector to ensure the home you are purchasing will be a sound investment.
Some Inspections I suggest but not limited to:
1-Full House Inspection
2-Termite and Pest Inspection
3-Roof Inspection
5-Fireplace and Chimney if applicable
6-Pool or spa if applicable
7-Septic if applicable
8-Sewer
9-Lead base paint
10-Mold
11-Foundation
12-Soils report if applicable
13-Window
You may have certain concerns on other items. Remember you have the right to inspections and a time period to do so. If there are unknown items found on the inspections you can usually renegotiate with the seller either in repair or price or walk away within the time limits specified in the contract and not lose any earnest money. You are responsible to pay for inspections that the buyer is contractually responsible for that were performed.
The costs of some of these inspections can be negotiated up front to either be shared by both buyer and seller and/or have the seller pay for some and the buyer pay the rest.
A good house inspector will also advise you if he/she has items of concerns that requires additional specific professional inspections.
When you look at the scheme of things and the costs associated to have licensed inspectors it is very minimal and will protect your investment.
If you are not represented in your search for a home, call me and lets make an appointment to sit down and discuss your options and see how I can help you achieve your real estate goals.
Serving the Greater Walnut Creek area and surrounding communities.
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