Seven Ways
to make that home purchase this year
The new year brings fresh ambition and plenty of portending on what the upcoming annual cycle will bring. I always thought as a kid growing up in the 80’s that these 21st century years would bring hovercrafts, electric cars and virtual reality adventures. Shows how much I knew. The shortcomings in our technological advances aside, there is still plenty of opportunity to enjoy 2019. Maybe it’s the year you buy your first home, first investment property, or take the leap and upgrade to the neighborhood you’ve always dreamed of.
Now that you don’t have any more room for your bobblehead collection, or that small bump on your wife’s belly isn’t from holiday overeating, or your landlord has been creeping around your bedroom window “landscaping” for far too long, it might be time to make the leap.
Here are Seven Ways to make that home purchase this year:
Show me the money$$ - Rates are still hanging in there. In fact, interest rates had their best month since June 2016. Though you may have missed the boat on locking in the sub 4% rates of a couple years ago, costs to borrow are certainly still affordable, and paying a mortgage is certainly more astute than lining your landlord’s pockets. For an introduction to a reputed and qualified lender, contact me.
Talk the talk- I’m not tooting my own horn when I stress the importance of talking with a professional, but toot toot, you need to work with a professional. Last year alone, my cultivated relationships with other real estate agents allowed me to close more deals for my clients than had they not worked with someone “in the know”. Choosing to work with a discount online service, a distant uncle with a license, or going it alone may be the difference between you getting the home of your dreams, or buying a lemon that is so inherently flawed, you may never see the other side of continuous costly repairs.
Pinch the pennies - Put the Amazon Prime account on hiatus, see a therapist about your addiction to 1990’s era sneakers, or opt for the house red rather than the Opus One. Not only are you going to need cash for a down payment, but having reserves protects you against unforeseen costs and expenses that can arise. Plus, you’re not in college anymore, so stop buying drinks for everybody at the bar. They’re not your real friends, anyway.
Go nerd - There is nothing wrong with doing a little market research on your own. Your lender and real estate agent can always provide priceless information that you can use in purchasing your home. But, it’s up to you to decide if the location, size or school district is right for you. Drive around the neighborhood at night. Are there crazy parties going on nonstop? Is there litter? What kind of cars are parked there? Does the donut shop sell bear claws? These are the vital things.
Kick the tires - Online platforms and even print media are excellent ways for you to see just how deceiving real estate photos can be. Nothing beats walking a property with your trusted agent to uncover pitfalls and flaws that photos certainly won’t allow you to detect. Get the lay of the land, see about traffic, noise or weirdo neighbors. For some really bad real estate photos, check this out.
Summon your inner cartographer - Once you have found your dream home, it’s time to take action. This is where your agent’s relationships will really come to the fore. In competitive markets that we have here in Southern California, your agent’s ability to maneuver your offer to the top of the pile is invaluable. Come up with a plan of action. Draw a map. Find the treasure.
Invest in yourself - There are no 100% for certain investments. Risk is part and parcel with any financial endeavor, and real estate is no panacea. But, if you’re in it for the long term, there is no better option. Our market here has certainly rebounded (and then some) from the previous crash in ‘07-’08. Know that with our micro economy, weather and amenities, your real estate purchase will continue to grow in value. And, unlike a stock or bond, you can live in a house!
Bonus: Make sure you ain’t workin’ with no dummy.
Powerful stuff from the Power Team