First-time homebuyer? Step-up homebuyer looking to make more room for your growing family? Or maybe you’re an empty-nester needing to downsize. Right now San Diego is a seller’s market, so, as a buyer, no matter where you find yourself in the home purchasing process, but certainly before you write an offer on a new home, be sure to protect yourself, your family, and your future with these five must-dos. 1. Educate yourself on the home purchasing process. As a homebuyer, you are the only person that can make the best, most informed decision. Some homebuyers put their complete trust in their realtor. Typically, the more buyers know and understand about the process, the better the decisions they make when the time comes to purchase. However, with different homebuyers come different levels of needs. At the very least, I recommend that homebuyers understand how their home purchase decision affects their personal and financial situation within the first year of homeownership and five years down the road. The most important thing I can do as a real estate professional is provide my homebuyers with all of the relevant information they want and need to help them make the decision that is best for them and their family. 2. Find a real estate professional that fits you and your needs. Building a strong relationship with your real estate professional is a critical first step. As you walk down the path towards home ownership, you will invariably have to disclose very personal information such as your budget for a home and how you qualify for and pay for that home. You should have complete confidence in your realtor’s ability to execute; if your gut isn’t saying yes, trust your gut. The home-purchasing process should not be disrupted by realtor error — don’t leave anything to chance. 3. Know and discuss the motivation behind your decision to purchase. You may need to sell your current home before purchasing the next, find a bigger home for your growing family, or maybe a divorce has forced you to downsize. If you and your family make time to discuss the why, the how, and the when of your decision to purchase, you will be able to look back and feel confident in your decision. Making time for the why-how-when discussion can be difficult, but it’s critical for any and all family members to be involved; you probably won’t discuss the financial details with your children, for example, but you should bring them into the discussion in order to better understand what they value and, more importantly, so that they know you value their opinion. 4. Plan and prepare your finances. Oftentimes, people will plan for an entire year before taking a one-week vacation but only a few months before purchasing a home, decidedly, a much larger, longer-term investment. I recommend that you review your financial situation at least six months prior to your purchase. Some of the things you should be reviewing include:
Do I have enough money saved for a down payment?
Is my family situation changing?
Do I need to purchase a new car or other large items?
Is my credit where it needs to be?
Do I know what loan products are out there and which ones are best for me? By properly planning, you’ll save yourself a great deal of stress, and, in the end, your decision will be much better informed. 5. Make the process as stress-free as possible. The process of purchasing a home typically comes with some increased level of stress. Our team loves celebrating a home purchase once we’ve walked alongside our clients during the process. A home purchase is a large financial commitment, a decision that isn’t easily changed, and a decision you will, literally, be living with and in for years to come. Make it fun, control what you have the power to control, and, once you’ve closed the deal, celebrate! In next month’s issue of “Real estate advice,” Brian Gerwe will discuss key issues sellers should consider before selling in a seller’s market. Contact him at (858) 367-9980 or at [email protected].