Is this a good time to buy a home?
Well, it can be. If you’re an educated buyer. Real estate is, and has always been, about a buyer and a seller coming to agreement on the fair price for a property, and that hasn’t changed.
So here’s what you need to know to become an educated buyer and to find your new home in this market.
- Determine how much you CAN spend. Meet with your banker: if you haven’t already, form a relationship with that person so that they know a bit about you and so that you can feel comfortable asking questions and really understanding the finances of buying a home. Consider talking with more than one lender, plus a mortgage broker, to find where you feel comfortable and to compare their offerings.
- Ask yourself how much you WANT TO spend. Some of my clients aim to spend their maximum: Said one, “When I get home from work, I want to see what I’ve been working for.” Others are strategically holding back, keeping some savings for emergencies, or a lower monthly mortgage payment to allow for travel. Decide what’s right for you.
- Identify the communities you love. In our current low-inventory housing market, it’s practical to have more than one favorite. Lamorinda and surrounding East Bay towns offer an array of different neighborhoods — each with its own vibe. Find which ones you feel happy in. Weekend open houses care a start, but then explore a bit: find a place to grab a bite; go for a walk on a neighborhood trail; visit the grocery store, the dog park and the schools. These are the little daily tasks that make a community feel like home, and this will give you a feel for the area.
- Find an agent you trust and enjoy, in the community. Talk with many agents first. I’ve met home shoppers who worry about wasting my time, and others who worry that talking with me will commit them to working with me. But it’s never a waste of time, and it's completely commitment-free. This is the only way that you will determine who you’re most comfortable talking, visiting, and texting with. Trust your gut and look for someone who takes the time to listen to you.
- Develop your wishlist for a home. This part is really fun! It’s useful to ask yourself what you love about your current home and previous homes. Identify things you’ve hated in the past, and consider if those would be deal breakers in your next home. Of your wishes, which ones are non-negotiable requirements? Will you consider properties that aren’t updated? Expect to revise and refine your list each week, with each set of houses you see. Just be sure to let your agent know as your preferences develop.
- Visit visit visit. Go see as many houses in your price range as you can, even if it’s not a property you are serious about. It’s not wasting your time or the agent’s time: the more houses you see, the more confident you’re going to be when you find the one that makes your heart sing. The key to buyer success is reaching a point of clarity and decisiveness that comes from knowing the market, understanding homes in your price range, and recognizing what’s special. Then, you are ready to move quickly and craft a fair offer that is likely to succeed -- and to get you this property that feels like a happy place to put down roots.
Buying a new home is nerve-racking. But what I've seen as an agent is that clients who have made themselves educated buyers think the process is exciting as well -- everything is more fun when you know what you're doing and you can do it with confidence. And always keep your end point in mind: there will come that moment when you're turning the key in the door and walking in to your new home, knowing it's yours. With some preparation and a little help, it will happen.
