7 Tips For Buying Your First Home In A Down Market
Buying your first home, a big decision
Prospective first time home buyers in Temecula, Murrieta and other parts of Southern California have an edge in a down market, but this doesn’t mean they are guaranteed to make money on the properties they buy. When real estate sales are slow and there is a glut of homes for sale, buyers have an opportunity to pick up a house on the cheap. The operative word here is “opportunity”. There are times when you should pounce and times when you should show restraint and avoid an impulse buy. Knowing the difference could save you thousands of dollars.
Here are 7 steps for first time home buyers to keep in mind as they look for their first home.
Tip No.1: Do Your Homework
Learn the market! Home prices vary by neighborhood, so focus on “comps” (comparable sales) in that neighborhood. You can use internet sites like: Zillow Truliafor a starting point, but eventually you will need a Realtor who is a First Time Home Buyer Specialist to get you the latest information from the local MLS.
Tip No.2: Get Your Ducks in a Row
To make sure you’re ready to pounce on a deal when it becomes available, get pre-approved with a first time home buyer specialist you trust. To find out what lenders look for in a loan application Click here
Tip No.3: Watch For Motivated Sellers
In a down real estate market, like Temecula, Murrieta and other parts of Riverside County, finding a motivated seller is not the problem. If they’re selling they’re motivated. Motivated sellers provide additional bargaining power for potential first time home buyers and you may be able to get them to pay all or a portion of your closing costs as well as negotiate on the listing price.
Tip No.4: Negotiate With the Realtor
Many experts believe first time home buyers can get a Realtor to work for less, and some will, but you get what you pay for. Work with a Realtor you trust who is a First Time Home Buyer Specialist and he/she will save you a lot more money and tension than someone who will work for a little less.
Tip No.5: Make Sure You Have Clear Title
Unless you’re a first time home buyer who is paying cash, you will need a loan. As a requirement of that loan you will get a title policy from the lender and there will be an owner’s title policy which will insure there are no known pre-existing liens against the property.
Tip No.6: Avoid a Bidding War
In a real estate market like Temecula, Murrieta and most of Southern California this is easier said than done. There seems to be too many first time home buyers for too few houses. But if you enter in a bidding war remember two things: 1) Don’t exceed the amount for which you are pre-approved 2) Remember Step 1, if you offer too much for the house and it doesn’t appraise it could jeopardize the entire transaction.
Tip No.7: Don’t Be Afraid To Walk Away
If you are not getting the deal you and your Realtor feel you deserve, do not be afraid to walk away, and look at the next home on your list. As inventory increases you will have more opportunities. This is not the easiest of steps but the biggest mistake you can make is to pay too much for your first home.
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Tags: First Time Home Buyers, help for first time homebuyers, Temecula Real Estate Market