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Homebuying Tips On The Monterey Peninsula

By
Real Estate Broker/Owner with DeLuca Real Estate CaBRE#01364722

Are you ready to buy a home?  Homeownership means alot more than just a white picket fence, a neighborhood and roof.  It is personal, emotional and something most people dream of.  Most of us were raised to believe that we would one day own a house, create lasting memories, and leave a legacy for our family.  Buying a home is part of The American Dream.  

All of my buyers and "potential buyers" study the market, search for homes dilligently and keep abreast of what homes are selling for in the areas that they are interested in.  But, before you really get serious, there are many questions that one should ask themselves.  

The National Association of Realtors says existing home sales topped an almost four-year high in July. So what do you need to ask yourself before you enter the market? 

What is the right moment to get in?

The purchase of a single family home is not necessarily an investment, but something that you should consider staying in for at least 5 years.  To think of a primary residence as a way of building wealth is not a correct idea.  Apreciation may or may not happen, this is why you want to make sure it is someplace that you will want to stay for awhile and that the payments fit into your budget. The huge appreciation that we saw in the previous market have given some people a false sense that this will happen again.  I am not an economist, but I would caution one not to count on it.

  One should have at least 10% down payment and reserves.

home buyers checklist

Can You Afford To Buy A Home?

Five Costs To Buying A Home You Didn't Consider

Add in  3% of the house's purchase price as annual maintenance.  If you are buying a home tht costs $600,000, you should make sure you have at least $18,000 in savings just in case you need to repair or replace something.  

Don't get overly concerned about interest rates, they are still historically low, and in the big picture one needs to look at the entire loan program before signing.  Make sure that the payments are not going to skyrocket in a few years...this is what got alot of people in trouble in the past few years.  If an interest rate is 6% or under, it is still a good rate.

 

 

 

 

 

Comments (1)

John Pusa
Glendale, CA

Leslie - Thank you for sharing an excellent blog about homebuying tips on the Monterey Peninsula, California.

Aug 30, 2013 07:52 AM