Maybe you’ve got some cash saved up and you’re looking to buy a home while the market has dipped. You’ve got your budget, contacted a realtor, and are ready to go. What’s next? Here are a few simple things you’ve got to know before you take that plunge.
First off, know your limits. Part of the reason why the economy crashed is because people bought homes that they really couldn’t afford. Provisions are being made to prevent that from happening again, but you shouldn’t even tempt fate — stay within your limits of stability, cash flow, and credit. If your credit isn’t where you want it to be, work to build it up before you take the plunge.
Now let’s look at the market. There are a lot of foreclosure homes out there, but they may need severe repair. In addition, the market is flooded with plenty of homes, so you should have your pick, but understand what the upside is based on location, neighborhood, age, etc. School districts are particularly important, even if you don’t have children because that affects your value and resell price. Also, when it comes to financing, there are many different types of loans out there, so it’s an absolute must to educate yourself on the proper terminology.
You may have contacted a Realtor, but is that the right Realtor for you? Ask friends, neighbors, and colleagues; look at reviews online and know what type of person or agency you’re partnering with. Does she specialize in your price range? Has he or she consistently found a diamond in the rough? Track records are extremely critical in real estate and you’ll want to have complete confidence in whom you’re working with.
Finally, after you’ve found a property you like, research its history in public record. The lender may provide you with paperwork about its condition, but go the extra step and get your own proper inspections. You’ll feel better, and if you do find an issue, it can become a negotiating point.
Most importantly, be patient and thorough. Smart communication and research can lead you to the home of your dreams.
The views published here are the opinions of the writer and are not a substitute for legal counsel.
Israel Gonzalez
Real Estate Broker-Hollister CA
831-636-8858
Click here to contact me by email
