Buying?
Here are Some Tips
If you want to optimize your search, let’s connect and I’ll walk you through finding your dream home
Where Do You Start?
Where do you start with anything? Hopefully, the answer that popped into your mind was, “asking questions”.
Here are the preliminary questions you should ask yourself:
How much do I want to spend and what can I realistically afford?
What are my highest priority needs and wants in a property?
Asking these questions will set the parameters of your property search and allows us to “color in the blanks”, as we go.
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If you are going to need a loan, you should immediately start the preapproval process through a local lender.
This will give you an understanding of your price range and monthly payment.
If you are a cash buyer, what you can afford depends on many variables, such as, but not limited to: your savings, future expenses, property tax bill, insurance costs, and home repairs/maintenance.
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Having financial flexibility, via a large cash position, can be a massive advantage in times of uncertainty.
Consider the scenario in which you have an expensive medical procedure on the horizon; you may prefer to keep your cash position untethered and available for unexpected costs.
However, if you have confidence in not needing a portion of your cash, cash offers are usually more competitive than financed offers.
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Typical wants and needs I hear span from gardening space, to good schools, to not-by-freeway, to low crime, etc.
However, some things you may want to consider are; (a) costs & availability of insurance in your target area, (b) the terrain of the property and potential flooding/erosion risks, (c) proposed developments that may later affect your home’s value.
These are only a sampling of things to think about. I’d be happy to talk this over with you, in more detail, if that would be helpful. My number is 831-212-0947
40,000ft View
No path to homeownership is ever the exact same. There are hurtles and unexpected turns that come up throughout the journey, which demand flexibility and endurance. There are also different approaches and strategies to use, depending upon factors such as: cash or financed buyer, current market conditions, the type and location of the property, time of year, etc.. However, roadmap graphic is a good starting place for understanding the flow of the process.
How Long Does Buying a Home Take?
There is no quick and clear answer to this, as every buyer has a different set of circumstances. However, to give you a rough idea, I’ll break down a scenario below, following the flow of the roadmap graphic:
Day 1: “Consultation & Goal Setting” → 30min-1hr meeting, where we build a plan tailored to you. We will discuss your timeline, wants & needs, unique circumstances, and other aspects of real estate. While I have perspectives on tax impacts, county codes, and lending solutions, I will always remind you that I am not an expert in these fields and that you should consult a professional for accuracy.
Day 2-15: “Finding a Lender & Preapproval” → 1-2 weeks. This phase will depend on how organized your financial documentation is and the complexity of your financial situation. The more you have prepared and can explain to your lender, the smoother this process will be. If you are a cash buyer, you can ignore this phase and go straight to the home search.
Day 16 → Entering into Contract: “Home Search” → 0-12+ months. This is the most variable part of the process, because it depends upon the available inventory of homes, how many you want to see before you write an offer, the strength of your offer relative to others, and other factors. Typically, there are three categories of buyers: 0-6 months, 6-12 months, and 12+ months. Each will utilize different approaches to the process. Which do you think you are?
Entering into Contract → Closing: “Navigating the Contract” → 30-45 days. Once we have an accepted offer, the transaction usually takes ~30-45 days to close. During this period and depending on the contingency clauses agreed to, we will conduct our inspection of material facts, which affect the value of the property. It depends upon the market conditions and how we structure our offer, but usually we will write offers with a clause enabling you to walk away if we find material facts that significantly reduce the value of the property. Occasionally, in a sellers market, you may have to give up some protections to get an accepted offer. However, a typical transaction, with proper disclosure and nothing pivotal, will close within 45 days.
In conclusion, from Day 1, it can take anywhere from a few weeks to over a year to find and close on a property. As a general rule, the most common timeline for a motivated buyer is between 3-6 months.
If you want to understand the current, local market conditions and what you realistically buy, call me at (831)-212-0947
Sincerely,
Landon H.
