We have talked a great deal about seller successes this summer (and celebrated some great wins!), but we all know that there are two sides to every story. Today’s blog is dedicated to the other featured role in every transaction – the buyer. Silicon Valley buyers have to be fully financially equipped and emotionally prepared for not only making the largest investment of their lives, but for doing so in one of the nation’s most competitive markets.
Here are three tips from our team here at Homes of Silicon Valley; feel free to share with anyone you know who is considering a home purchase – and as always – let us know if we can help!
Buyers Basics & Beyond
1. Firm Up Your Financing. This one may seem obvious, and most buyers know the importance of meeting with a lender to get an idea of what they can afford. BUT, keep in mind that there is a difference between a pre-qualification and a pre-approval. Don’t let this difference cost you the home of your dreams; be sure to ask your lender for a fully submitted pre-approval whenever possible – in which an actual underwriter verifies your eligibility using income, asset & credit analysis. A pre-qualification is deemed more of an initial assessment, but may not demonstrate your commitment and strength as a borrower as well as credibly as a true pre-approval.
2. Don’t Let Desperation Drive You. The home buyer you are when you start your search can evolve greatly by the time your search is well underway. You likely started your search slowly and steadily, choosing an agent, defining your goals, dialing in a location and setting a firm budget. Fast forward 60 days and you are glued to the MLS listings on Thursday nights, opening your criteria to any property still standing within a 20-mile radius of your originally desired location.
This is where the relationship and trust with your real estate agent can be a grounding and (much-needed) affirming force. This is a highly emotional process, and we always understand when our clients feel frustrated, exhausted or anxious. But we are also committed to making sure they achieve the home they need, not the one they are willing to settle for. We also have some great strategies and methods that actualize outcomes for our buyers – in any market, any time of year.
3. Take Into Account Total Costs. The purchase price is only one aspect of the home’s complete costs. Be sure your budget allows for property taxes and homeowner's insurance, as well as your new residence's utility bills. An ideal analysis should layout your home’s monthly costs, annual expenses, plus 5 and 10 year projected needs (roofs, windows, paint, flooring) with a little wiggle room for the unexpected (a fallen fence, a busted garage door?). Other considerations may be commute time and gas expenditures, use of the local school district vs. private school price tags and community features (pool, common areas, HOA dues).
Thanks for taking the time to review ‘Buyer Basics & Beyond’ from Homes of Silicon Valley. If you have additional questions about the offer process in a seller’s market, the buyer’s negotiating power and ultimately, how to win…let us know! We’d love to hear your goals and chat about your path to home ownership.
Warm regards,
Mark & Jason