Blog

Fool Proof Plan For Buying A Home

Buying a home in almost any community in San Mateo County is challenging to today’s home buyers. One reason, beside the obvious one being the market, is the home buyer of today doesn’t have a fool-proof plan for buying a home. I know this because several times I’m asked by home buyers the same question, (listed below). The answers to the questions by home buyers are in and of themselves an action plan to help you buy a home with confidence, and know-how during the home buying process

Q: I’ve been looking to purchase a home for a several months. I have found in my price range, there are not many homes for sale. When I started looking, there were more houses to buy.  There were also many other buyers trying to buy them too. Now, it seems like those same old “crappy” houses that no one wanted before are all that is left for me to buy.  When a new house comes on the market it sells quickly and with multiple offers. I’m getting frustrated and angry, and I am beginning to think I should give up my “American Dream” of ever owning a home. Is there a solution for me?

A: You are 100% correct. Today’s home choices are very limited. I can’t say empirically why inventories are stagnant or why many homes are undesirable, but they are!  This is one of those delicate truisms we see which can’t be seen by looking at only data. The reality is homes now for sale are the same houses that have been for sale for a while or of the same quality.  Some homes considered as new inventory are actually homes that have gone through financial problems or are bank owned. Usually that means these houses lack pride of ownership.  On a good note we are seeing less bank owned homes and fewer homeowners who need to sell their homes by a short sale process. We will see homes on the market for sale in better condition in the future.

Other indicators like the number of days on market (DOM) and number of homes on the market doesn’t give you an exact picture of the housing market either. The homes that are desirable and or those that don’t “pop” stay on the market a longer time. The ones everyone loves when they walk through the front door sell right away. Because of these extremities you get a tainted result from normal market trends.

The best advice for home buyers is for them to keep in mind why they concluded to buy a home in the first place. Keeping the why in mind makes the how so much easier and possible.

Here are some hints that may help you. What was your original dream about owning a new home? Did you need more room for your growing family? Did your income change and you could afford a spacious house? One you could entertain you friends? Maybe it was the market? You perceived it would head upwards and you want to be part of that market movement?

If your original reasons to purchase a home inspired you then, they’ll once again guide you through your times of thoughts of giving up. If your reasons don’t inspire you now, deciding to wait and maybe revisit buying a home at a later date may be in your best interest.

If you aren’t highly motivated, and don’t have a strong sense of urgency, it’s likely you probably will not find the home of your dreams. Today’s real estate market requires commitment from the home buyer who is serious and ready to take action. Buying a home is hard work. Wait and see is not an action plan and definitely not a recipe for success when buying a home.

If you do decide to get out of the home buying process, be aware of the consequences. There are all sorts of “Gurus” discussing prices and market trends for the future, however, there’s agreement with almost all of them on certain points. They are interest rates are going to go up and prices will continue to go up on homes in San Mateo County.

If you decide to move forward, it’s important to know exactly what you want in your new home! Remain flexible and listen to all options. For example, you may only want a “move-in” condition home however; you can’t find the right one. Maybe buying a fixer-upper at a discounted price is better if you. Think outside of the box, like plan to use your tax-credit funds or a special loan package, which allows funds for new painting, new carpeting and other cosmetic finishes that will show off your future diamond, which may now be in the rough. Now you have lower property taxes and quicker appreciation because of the discounted price you paid for your new home.

A good number of my clients feel the same as you may be feeling now. They too seem to just be treading water and getting nowhere. They grow more concerned and impatient when they can’t find that special home that they want.  When a house does come on the market for sale they still hesitate before making an offer even if it would fit their criteria for their home. If that’s you, here’s some advice: Quit hesitating!  Or, from an old adage from the world of real estate brokers; “You snooze, you lose!”

When you see a home you can see yourself living in, make an offer — just do it! Do it by being resolute and decisively committed to your decision. Don’t worry about the small stuff like pinching pennies or agonized over spending money for something you want — be forthright and aggressive in your timing and your pricing, and you’ll have a better chance of success. Do not nickel and dime a seller over the small stuff, if you do the stage for negotiations for them becomes to nickel and dime you back. This is not good as all parties have to believe they got the best deal possible.

No one likes to feel being taken advantage of by anyone. Make an acceptable and fair offer that will make the sellers and you have a warm fuzzy feeling in your tummies. If you do that you can be firm with your offer and any counter offer by the seller, because you have given an honest offer. By being fair and forthright you will get your new home with the fewest headaches or hurdles.  In the end all your worries, anger and frustrations will be a thing of the past. And you will be a happy homeowner.

If you want fairness without overpaying for a home, make sure that you and your agent study the MLS statistics in an intelligent way. When you look at the comparable, look at homes that are very similar to the home you want to place an offer on — not just in size or bedrooms and baths count, but look at the exterior curb appeal, the various upgrades, square footage, flow of the home, how many other buyers are submitting offers, and your level of interest. When you analyze these homes, check the list-price-to-sale-price ratio: What was the ratio homes sold for compared to what the listing price?

This can help you understand the particular neighborhood — this in turn helps create a comfort level about what to offer whether it is more than asking or less. Additionally, it helps when to get aggressive and remain fair when making your offer on a home, when it comes on the market for sale.

Fool Proof Plan For Buying A Home:

1. 1.    Regularly revisit your dreams and reasons for buying a new home in the first place. Commit to the home buying process or decide to stop looking for a home, with a full understanding of what you are giving up.
2. 2.    Be fair and decisive and move quickly to make a strong offer, when you find a home, which will meet your needs and criteria for a home.
3. 3.    Be ready to compromise on features you may be able to live without or use a strategy that will still carry out your original goal of owning a home An action  plan to put your tax-credit money or your  income tax return to use for fixing your new home the way you want it.

As always if you need help or have any questions Cliff Keith and Team are always here to help you.  You can reach us at 650-346-7366.  We would love the opportunity to help you with your action plan to buy your home in Redwood City. For a free list of MLS listings of homes in your area click the orange but on the right and get your own Personal Organizer. Maybe a quick search on the top right is more what you would want to buy your home?