San Diego RealtorHow to buy a
San Diego Home
The Steps to Buying a
Home in San Diego Ca...
...Enjoy the journey. You will find the destination puts you "at home."
It is exciting to know that one of the homes you look at today will be your
No one buys a fireplace, a deck or a 2 car garage. They buy love, security,
privacy, and romance. Think about why you want to buy and imagine yourself in
your new home.
Unless you are ready to buy today-don't look at homes today. Until you are
ready to buy, watch ads, drive by, go through open houses and keep track of the
sold prices in the areas that interest you.
The journey will be both exciting and stressful.
The purchase of a
San Diego home may be the largest purchase you will ever make. Don't
let anyone "talk you into" a property that doesn't feel right to you. In my 27+
years in the business, I have never sold a home. The home sells itself as it
speaks to its new owner.
You will know that you are home when you walk in. Let your feelings rule. You
shouldn't be buying specifications. You should be buying your motivations:
comfort, independence, security, future profits, self fulfillment, pride, social
acceptance, convenience, and feeling of comfort and love. Get in touch with
why you want to buy before you try to decide what you want to buy.
STEPS TO TAKE BEFORE BUYING YOUR FIRST
SAN DIEGO HOME
When buying a house, many people discover they can't afford as much as they had
hoped and past financial sins come back to haunt them. If you're among those
considering a housing purchase this year, here are some points to consider from
the Fannie Mae buying guide, "Opening the Door to a Home of Your Own";
* If you haven't been working steadily for at least two years, you may have
trouble getting a mortgage unless there's a reasonable explanation, such as
recently finishing school or military service or seasonal work that leaves a gap
in your record. "If you have been fired for cause such as excessive absences,
have long gaps in your employment record or have dips in your income level that
are difficult to explain, you should probably delay buying a home," Fannie Mae
* Lenders are wary of people who don't pay their bills on time. Your record is
right there for all to see on national credit reports. Before you set out to buy
a house, clean up your credit record, that is, establish a two-year record of
paying bills on time. You can get a copy of your credit report from the three
national credit reporting services, The fee is generally $8, but call the
toll-free 800 numbers for details. They are Equifax, (800) 685-1111; Experian,
(800) 682-7654; and Trans Union (800) 916-8800.
* For most mortgages, you'll need a down payment of at least 5% of the purchase
price. On a $120,000 mortgage, that would be $6,000. You also may need several
thousand dollars more for closing costs.
* Before you start house hunting, figure out how much you can afford to pay. As
a rule of thumb, count on spending no more than 28% of your gross (before taxes)
monthly income on housing expenses-principal, interest, insurance and property
taxes. All your monthly debts should come to no more than 36% of your gross
DETERMINE WHEN YOU WANT TO BE IN YOUR NEW
If you buy today, you will probably close in 30-45 days from today. Does
this time line fit your projected moving plans?
Arrange a counseling session with a competent
San Diego REALTOR® or a prequalification
appointment with a lender.
TO CHOOSE A SAN DIEGO LENDER, ask a
San Diego real estate professional for referrals. The
SAN DIEGO REALTOR® will have the names of lenders who have proven themselves
regarding service and commitment.
WHAT WOULD YOU LIKE TO BUY?
A. LOCATION, LOCATION, LOCATION.
The three most important elements of your purchase. You can usually change
anything except location. Consider geographic and social aspects of location.
Consider the size. If its smaller than you had hoped for, can you deal with the
size or can it be expanded within your budget parameters?
Is it sound? Does it need repairs that you can handle? Are the necessary repairs
and upgrades in your budget? Will the necessary changes be good investments in
the event you have to sell later?
Does the property have any or all of the amenities you want? If missing, are
they important. If important and missing, can you fix it?
WORKING WITH A
San Diego REALTOR®
Did you know?
Very few homes sell through Open Houses. 1 in 400 homes sell through classified
ads. Only half of the homes for sale are in the ads and Open Houses.
If you are serious about buying a property, it makes sense to work with a
professional. The professional can make it easier. The first meeting is
important. It is your opportunity to interview and get acquainted with the
REALTOR® and you can help the professional understand your reasons for buying
and the things that are important to you. Be sure to be candid about your
WHAT SHOULD YOU EXPECT FROM A GOOD
San Diego REALTOR®?
1. The REALTOR® will review the properties available and select those that meet
2. The multiple listing service will provide access to most homes on the market.
3. The REALTOR® will arrange the showings.
4. The REALTOR® will provide property and finance information.
professional REALTOR® will provide upon request enough information that will help
you establish market values.
6. The REALTOR® will prepare your sales contract.
7. The REALTOR® will arrange for the presentation and negotiation with the
8. The REALTOR® will assist you with financing.
9. The REALTOR® will help you arrange inspections.
10.The REALTOR® will insure all government forms & sellers disclosures are
11. The REALTOR® will follow through and will help take you through the closing.
HOW MANY REALTORS® SHOULD YOU WORK WITH?
REALTORS® work on commission. The best REALTORS® will only commit to you if you
commit to working with them. The best REALTORS® will "back-off" if you are
working with others. One good REALTOR® will benefit you by reciprocal loyalty.
You will get better service if the REALTOR® knows you are loyal.
San Diego homes: Be sure to look at the property and not the condition.
SAN DIEGO HOUSE HUNTING WITH CHILDREN
* Take special care to talk to your children about the upcoming move. Deal with
their concerns as they come up.
* Leave young children with friends, family or a baby sitter during the initial
house hunt. House hunting is stressful enough and details of individual houses
tend to blur after tours through several. Fidgety children can complicate
matters. Going alone also will eliminate the potential embarrassment of having
to ask the seller for bathroom privileges for your youngster.
* Include your older children in the house-shopping process as much as possible.
Keep them occupied by letting them plan and pack a box or two of their special
things. Seek their input on new décor and room design, and what kinds of
features they would like to see in a new house and in the neighborhood. Make
sure you inform your children that just because they would like an indoor Laser
Tag arena that you may not be able to make good on such a request.
* Investigate the community. Track down the children. Locate things such as
recreation centers, churches, movie theaters, etc.
* Once you have selected your dream home, if possible, bring your children along
for a tour of the house and neighborhood. If this is not possible, take plenty
of pictures of your new place, cool haunts, schools and share them with your
SAN DIEGO REAL
ESTATE SECRETS TO GETTING WHAT YOU WANT
1. GET PRE-APPROVED.
To make the strongest offer possible get "pre-approval." The process takes a few
days to a few weeks. With your pre-approval certificate, it's like taking cash
to the seller. If you are competing against other offers you will have a
2. DAILY SEARCH
When you are serious about buying, find a REALTOR® who is serious about helping
you. Get your agent to do daily MLS searches.
3. SPEED IS IMPORTANT
don't think you can look tomorrow or on the weekend. Look immediately and be
prepared to make you offer on the spot.
4. WRITE A "GOOD" OFFER.
Write your offer to be accepted; not countered. While you are in-counter,
someone else could be buying your home. Negotiation is only important to you
when you get what you want.
5. THE PRICE
Asking price used to be what the seller hoped for. In a "hot" market, there may
be multiple offers. The actual sale price can be more than asking. If you have
done your homework before-hand, you will feel more secure when negotiating your
6. BEST OFFER
If you are the only offer when you write, other offers may come in after you
have written. Even if you end up in a multiple offer scenario, the seller may
choose your offer, because you started better than the rest. It's not
scientific, but it can work!
7. THE BIG PICTURE
If you get what you want, you are the winner. The couple thousand dollars you
might save could cost you what you really want. When you move in-you'll look
back and congratulate yourself.
NOW, LET'S WRITE AN OFFER
Remember: Once you choose, everyone else in the world will want it, too.
* Write your highest and best offer. (Across U.S. & Canada, the average property
sells within 97% of asking.)
* It's a "good deal" if you want it and you get it!
* The offer should be drafted carefully. Some guidelines follow:
* WRITE YOUR BEST OFFER Anytime you play "We will start here" you risk losing
the property to another buyer.
* EARNEST MONEY The more earnest money you offer, the more confidence the seller
will have in your commitment to the transaction.
* INCLUSIONS If you want an item included, it must be stated in the offer.
Whether or not it is shown on an MLS print-out, it isn't included unless it is
stated in the offer.
* TIME IS OF THE ESSENCE This means that the dates are extremely important. The
"next day" isn't good enough! Midnight on the day named is the "drop dead'
deadline. (Watch especially for loan commitment deadlines.
* OCCUPANCY AFTER CLOSING It is a good idea to offer to allow the seller at
least a few days after closing. That way they aren't forced to be "on the truck"
at the closing. The seller usually prefers to have money-in-hand before they
move their large items.
* INSPECTION - It is not required...but, you would be VERY FOOLISH
not to have your future home go through a professional inspection
PRIOR to the transfer of title!
* ADDENDUMS - Many companies use their own. Items are covered that may not be
addressed in the offer, i.e. Asbestos, Lead, Lead Based Paint, Radon, Safe
Water, Well and Septic Inspections, Home Warranties, Code Compliance, Surveys or
Boundary Maps, etc.
Whether the seller or the buyer is dealing with the offer, the choices are
the same: "Accept", "Reject", "Counter".
Upon an accepted offer, upwards of 30 people are part of the transaction.
There are lenders, loan officers, appraisers, credit checkers, inspectors,
processors, and more.
If you work with a REALTOR®, follow the steps, do your homework and provide
the information needed by the lender, you will be comfortable with your decision
and should live "happily ever after!"
It is important that you don't make any changes between the time you make an
offer and the closing.
Don't make job changes without the blessings of your lender - before the fact. A
"new job" could kill your transaction, affecting the "time on the job" criteria.
A divorce can reduce your income. A marriage can change the loan application. If
your new spouse has past credit problems, you will likely have a problem with
credit scoring requirements. As with a contemplated job change, make no marriage
plans without your lenders blessings. Poor timing could jeopardize your
Buying a car or other major item on credit can significantly change your debt
ratios. Again, no major changes while you're buying a home.
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