10 Top Tips to keep Buyers Sane and Successful in a Seller's Market:
Here is a First Time HomeBuyer’s Primer, and a handy guide for those who have not purchased recently or in this San Diego/La Mesa seller's market:
1. Acknowledge that it is currently a seller's market because there is an oversupply of qualified buyers, and a very limited number of homes for sale. This situation creates multiple offers on most every reasonably priced home. Most likely you will get outbid on a few homes.
2. You will need to write a clean, uncomplicated offer up front. It will need to be your highest and best offer, because most times you will not get a second chance to change your offer in order to successfully compete
3. You will go into every bidding situation blind-- the seller's agent is not allowed to tell what the other offers are coming in at (or else they would tell the next guy what yours was). Again, one more reason to write your best offer first.
4. This is not like shopping at Target, where you point and buy the perfect (fill-in-the-blank). In the housing resale market, every house in unique and will have some things you like and other things you don't like. Make a list upfront of the things you want, the things you can and will tolerate, and the things which are not acceptable at all.
5. There are no perfect homes. There are no perfect homes. There are no perfect homes.
6. Understand that it is normal to have lots of emotions percolating in the background. Not only is purchasing a home a huge expense, but it is also a long-term commitment. The concept of "home" and what a home means and what it should look like and feel like can bring up deep rooted emotions.Try to keep aware of what your hidden expectations might be.
7. If you're dealing with a bank (bank owned homes and short sales), expect to hear "NO" a lot. No, they won't do repairs, No they don't care about health and safety issues. No, they probably won't tent the home for termites, so don't even ask for it on the contract or else your lender will make it a condition of the loan. No, they won't pay off mechanics liens or past due HOA liens. No, they won't accept your lower counteroffer--- the bank's offer is their final offer. Think of it as "their way or the highway".
8. Location is always king! You can't change an entire neighborhood, but you can change many things about your home, inside and out. It may take you a few years, but you do have control over this aspect. Drive the prospective neighborhoods during different times to check out traffic patterns and activities. Say hi to the neighbors, and you'll really learn a lot about the area.
9. Know your budget. Usually the big things in life require a little bit of stretching to get there.
Plan on doing a few basic repairs or enhancements, especially things like paint and flooring.
10. Know your limits. There are bidding wars out there, so know when to stop and move on. You can't overbid so much that the appraisal won't come in at contract price. You don't want to get in over your head and not have enough money left over to enhance your new home and enjoy your life. You want to own your house, not have it own you.
Enjoy your new home!
© 2013 Barb Fischer San Diego La Mesa
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