Buying a home can be a stressful experience … unless you have a strategic, knowledgeable real estate professional by your side. Then, when you approach all phases of the buying process—from home search to “welcome home”—you can feel confident in every decision you make along the way. For those contemplating a property purchase, here are a few tips for avoiding headaches and finding happiness as your agent helps bring you home:
Get pre-qualified. For buyers looking all price ranges, the most important home-buying step is to get pre-qualified. A lot of people just assume that they’re looking for a house and they know what they can afford but there’s a difference between your ability to afford a house and what you actually want to spend. That’s an entirely different ball game. Of course, this is incredibly applicable to first-time home buyers but even some experienced buyers aren’t aware of just how many loan programs there are between fixed, adjustable, fluctuating rates of downpayment and the like. Figuring out the scoop entails analyzing the best options for you. Although rates are still hovering in the 7% range as of this writing, there are still some very flexible options out there, for instance with seven- and 10-year adjustable rates and interest only, which can greatly influence your payment.
Remember you’re not just paying a mortgage. A lot of first-time home buyers calculate affordability based on their expected mortgage payment but you’re not just paying a mortgage in that monthly bill. There are property taxes and insurance to consider, and homeowners insurance these days is one of the big quagmires to wade through in the home-buying process. In Southern California, we have many fire-prone areas and Fair Plan Insurance only covers a maximum of $3 million, and it’s not ideal for high-end homes. (Check out this blog post for an overview of what home buyers should know about insurance.) Insurance plays such a big part in the home-buying consideration. A home itself might be affordable or within what you’re willing to spend, but when you add in six-figures of home insurance yearly, you might be over budget. First-time or newer home-buyers should always calculate these costs (and closing costs) into their decision, and remember that there are creative programs available. Since the market has become more balanced, many sellers today are willing to participate in buy-downs of interest rates and other creative strategies for the buyer to get the house at a more reasonable price and decrease monthly payments. An experienced agent will walk you through these strategies, and more times than not, they’re successful because it’s a win-win for everyone. In a buy-down, a seller gets close to what they want and the buyer gets the home.
Work closely with your agent to determine the benefits and potential pitfalls of every property. An experienced agent can help guide you through your home search because they’re familiar with the neighborhoods and can point out the pluses and minuses of a home beyond what you’ll find in an online description. For instance, there could be a massive proposed construction project next door or some positive or negative element to a neighborhood. A good agent will know the house on the main street behind you is getting turned into an apartment building and help you feel confident before you make any commitment.
Inspections, inspections, inspections. Once you find the right property, a good agent will explain all the necessary inspections that should take place. Gone are the days when an inspector is coming in and kicking the tires, turning faucets in a bathroom and shower and saying, “Good to go.” Today, an average buyer represented by a good agent will have a minimum of four or five separate inspections on the property. Usually, we’ll book a general inspection, fireplace inspection, sewer, a separate pool inspection if there’s a pool and may take it as far as a separate roof, plumping electrical, HVAC inspection. A general inspector is fine but everyone will defer to an expert in their individual field. If there’s a problem with the heater, a general home inspection would recommend an evaluation by a qualified specialist. Then, an experienced agent will explain what’s realistic and what your options are to move foward. They will also likely have referrals so you can get bids on these items for repairs. Sometimes, a fix that seems upsetting and crazy can be quite simple and other times, buyers will say, “Oh, we’ll worry about that later,” and it turns into a $10,000 problem down the road. We learned this the hard way! When we bought our house 24 years ago, it wasn’t popular to complete sewer inspections and we figured the sewage will just flow downhill. What difference would an inspection make? Of course that turned into a $20,000 problem for us over many years. We’ve learned an expensive lesson and insist our buyers thoroughly inspect the property with multiple inspections.
Lean on your agent’s network of trusted resources. After the sale, a good agent will be able to call on experienced tradespeople they have good relationships with to help you solve a variety of potential home-buying issues or next steps. It’s not always saving money to use the least expensive contractor to remodel your bathrooms if everything goes awry and you need to remodel twice because you picked the wrong professional the first time. As a real estate agent in the business of all things home, I have preferred vendors I always recommend. And often, I won’t just provide a buyer with one inspector, I’ll send them two or three options for each category, so they can interview and choose the inspector they’re most comfortable working with. Some buyers are very hands on and want to vet their inspectors and others are comfortable saying, “Hey, you pick the inspector you trust.” I’ll select professionals for our clients or give them the option of investigating themselves, the choice is theirs. I also welcome good referrals from family and friends who had positive experiences working with a home services professional.
Ultimately, I’ve learned over decades of working in this business that real estate is about relationship-building. As an agent, I’m not just a hit-and-run broker who sells something then never talks to my client again. This year alone three clients came back from the ’90s to sell houses because they’re retiring or moving. We’ve stayed in touch all these years and helped over the years with various contractors, pool professionals and services they needed. People know I am a trusted source for anything and if I don’t have someone for the job I will ask around and find someone for them, which adds another solid professional to my list. So, if you really want to avoid the headaches of home-buying, the key is to work with an agent who supports you before, during and far after the transaction is through, a Forever Agent who is there for you, for life.
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Andrew Manning • REALTOR® • Berkshire Hathaway HomeServices California Properties • DRE: 00941825 • 818-380-2147 • andrew@andrewmanning.com