Buying a home should be fun, not stressful. I help my clients by taking on much of the behind-the-scenes details, which lowers their stress.  As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.

1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won’t stay on the market long.3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life. 7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live.

I have many great repeat clients and two of them have called me within the past week to help them in locations other than Santa Clara County.  I suggested to each of them that they may want to use a Realtor who is located closer than I am to their property sale or purchase, but both sets of clients insisted on working with me.  And who am I to refuse?!  Not only do I know that I can do a “way beyond expectations” job for them by doing a lot of research up front along with the excellent service I always offer, but I also get to spend time with some wonderful people and help them achieve their real estate goals.

The first call came from some previous clients who asked me to do our sixth transaction together.  They’d like me to sell some investment property they have in Santa Cruz.  I sold this home to them several years ago.

  They now have some very fortunate tenants living there from UCSC who are lucky enough to live in a beautifully remodeled home with a lovely backyard.  This home has a wonderful floorplan with 4 bedrooms and 2 1/2 bathrooms.  The choices in colors and finishes are incredible.  Look for it on MLS sometime early next week.

So yesterday I had lunch at Cafe Sparrow in Aptos (so delicious!) with the Santa Cruz clients.  Life is good.  Then today, I trek off to Los Banos with my investment buying clients.  Life is still good.  I hadn’t been to Los Banos in a while and it has grown into quite a city.  Many new businesses and nice housing developments.

My clients and I both did a lot of research on the city regarding investment property prior to our house tour today.  I talked with several people who gave me first-hand accounts on the excellent rental market in Los Banos.  My clients and I saw 10 homes today that met their criteria:  5 years or newer, 4 bedrooms, and priced under $150,000.  Homes meeting the age and bedroom criteria in 2005 would have been selling in the $400,000s.  We found some homes that may fit the bill for my clients.  We’ll see how the REO negotiations go….

Most of the homes we saw in Los Banos were bank-owned homes and, although this home pictured above was also bank-owned, most of them had dead grass in the front yard, and no landscaping at all in the back yard.  And most appeared to be in good condition, with a few exceptions.

Obviously, I travel far and wide for my clients.  If you need help anywhere in the Bay Area, I can help you with advice, with agent referrals or with my very own expertise!

 

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment?  Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.

When I represent sellers in a transaction, they often ask me what they need to leave with the house.  Unless negotiated otherwise, all fixtures attached to the house must remain, as according to contract.  Most Realtors have a story about the dining room chandelier “accidentally” disappearing or the $1000 custom copper kitchen faucet that is replaced with a shiny new stainless steel faucet from Home Depot just before close of escrow.  Obvious no-nos.

Beyond this, I always hope that the sellers and buyers can briefly meet at the property shortly before close of escrow.  I have attended many of these meetings with my clients and it is very advantageous for the buyers to hear all of the seller’s tips regarding the care of the home and the property.  Sellers like these meetings also because if they have a prize rose bush, for example, that needs special care, this is an opportunity to give the special instructions to the buyers.  Then I recommend that the sellers never return to the property just in case that rose bush is replaced with a built-on barbecue….

I always give my buyers the necessary utility and media numbers they need to get everything up and running right away.  But in addition to this it’s nice if the sellers can leave the following for the buyers of their property:

• Owner’s manuals and warranties for appliances left in the house.
• Garage door opener.
• All sets of house and mailbox keys.
• Code to the security alarm and phone number of the monitoring service if not discontinued.
• Any personal property that the seller and buyer agree on such as paint, spare tiles, etc. that the buyer may need in the future.

Sales are down from the previous week but still much healthier than they were early in 2008.  In the towns of Morgan Hill, San Martin and Gilroy, there were a total of 31 listings that went under contract last week.

 Of these 31 sales, the list price ranges were as follows:

$200,000 - $500,000 = 18 sales

$500,000 - $800,000 = 7 sales

$800,000 - $1,200,000 = 3 sales

$1,200,000 - $2,000,000 = 3 sales

I bet you’ve heard the saying, “Buy low, sell high.”  Well, this is a “buy low” kind of real estate market we are in and now is the time to take advantage of it.  I am working with a few clients looking in the $200,000 to $300,000 range and they are thrilled to have the opportunity to purchase in this “buy low” real estate market.

An interesting quote from President Theodore Roosevelt:                                            

“Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.”

 What was true at the beginning of the last century is still true today.

Several years ago, home buyers:

• were desperate to buy anything that could hold up a roof
• would offer well over list-price, especially when competing with other offers
• would purchase the home in as-is condition
• would have no contingencies in the contract

Fast-forward to 2008.  Buyers are now paralyzed.  It’s ironic because:

• there is a record amount of inventory to choose from
• sellers have dropped their list prices, and in many cases by hundreds of thousands of dollars
• interest rates are still low
• sellers are accepting terms that meet the buyer’s needs

Here in south Santa Clara County, average and median prices are below the average and median prices of single family homes during the fourth quarter of 2004.  Currently for Multiple Listing Service (MLS) Area 1 (Morgan Hill, San Martin and Gilroy), the average price of a single family home is $723,004 and the median is $660,000.  In 2004 Q4, the average was $734,250 and the median was $668,000.  Just for reference, the peak average price for MLS Area 1 was $917,811 in the third quarter of 2006.  And the peak median price for MLS Area 1 was $805,000 in the second quarter of 2006.

If you are contemplating a real estate purchase, now is a great time to buy in south Santa Clara County!

Gretchen Merrick Phone:408-892-9015 gmerrick@interorealestate.com Featured Listings 16830 Edwin Jones Court Morgan Hill, CA 4 BR | 3 BA $749,000 More Details 16868 De Witt Ave Morgan Hill, CA 6 BR | 4.50 BA $849,999 More Details

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