Home buyers in Sonoma County Ca

buying a home is a sizable personal investment. Having a well thought out plan, and being organized and focus will contribute significantly to getting the best home deal possible with the least stress. It’s important to anticipate and understand the steps required to successfully achieve your housing goal and to build a plan that gets you there.

Before you can build a plan of action, take the time to lay the framework for your decision making process.

Getting Pre-Approved…

First, find out how much home you can afford to pay for. Find a lender and get pre-approved. After getting pre-approved you will know exactly what you qualify for and at what interest rate. You know how large your monthly mortgage payments will be, and how much you will need for a down payment. Once you are pre-approved, you avoid the frustration and let down of finding homes that you think are perfect, but are out of your price range.

Pre-Approved vs. Pre-Qualified

Most lenders can pre-qualify you for a mortgage over the phone. Based on general questions about your income, debt, assets, and credit history, lenders can estimate how much mortgage you qualify for. However, being pre-qualified and pre-approved are different things.

A pre-qualified letter is not verified and in truth, does not count for much if you are competing with other buyers who are pre-approved. When you are pre-approved, you know how much you can afford therefore giving you purchasing power.

Pre-approval means that you have applied for a mortgage; you have filled out the mortgage application, received your credit report, and verified your employment, assets, etc. It gives you credibility as a strong buyer and lets the seller know immediately that you will qualify for a loan to buy their property.
Secondly, determine where you want to live

Things to consider:

• Convenience for family
• Proximity to school, and or work
• The crime rate of the neighborhood

Use a Buyer’s Agent

Find an agent who represents you and not the seller, otherwise known as a buyer’s agent. A buyers agent is extremely beneficial during the negotiation process. Your agent should keep you informed on the process from start to finish, be actively finding you potential homes and negotiating furiously on your behalf.

If you are working with a buyer’s agent, they will be focused on getting you the lowest asking price. Also, when you use a buyer’s agent, you will see more properties. Not only are they plugged into their Multiple Listing Service, but they are also actively finding homes that are listed as For sale by owner, or homes that sellers are thinking about listing as well homes that other agencies have as “pocket listings”, which are homes not publically listed.

Hot Market is also known as a seller’s market…

This is an extremely competitive market and is favorable to sellers. Sometimes, homes will sell as soon as they are listed or even before homes are listed. Typically, during a hot market, multiple offers will be made on each home and more often than not, homes will sell for more than the asking price.

Normal Market

In a normal market, there is a moderate number of homes available and an average number of buyers. This market does not necessarily favor the buyer or the seller. A seller may not have as many offers on their home, but he or she may not be desperate to sell either. During a normal market, the chances to negotiate are higher than in a hot market.

Cold Market

In a cold market, houses may be listed for an extensive period of time and the prices of houses listed may drop substantially. This market is beneficial to the buyer. As a buyer, you have the time to make an offer that works in your best interest. It is not uncommon to go low with offers and to find that sellers are accommodating to meet your needs.

Home Inspections…

As a buyer, you are entitled to know exactly what you are getting. professional home inspections are something you MUST do. An inspection is an opportunity to have an expert look closely at the property you are considering purchasing and getting an expert oral and written opinion as to its condition.

Not only should you always get home inspections, but also you should be present with the inspector during the inspections. This gives you a chance to ask questions about the property and get professional answers.

Finding the Right Seller

It matters that you find out what a seller is selling. The best seller is one who is highly motivated. Learning the reason why can help you get the price you want and help the seller get what they want. A highly motivated seller is more likely to sell at a price that is less than what they are asking.

The reason for selling could be anything, such as a job change to a new location or financial problems, to simply downsizing. If you can solve their problem, whether it is cash related or time related, do so. For example, if the sellers need to move quickly, give them a fast sale – and a lower price. If you can make an offer that works with their timeline, even a low one, that gives them cash in a short time, they are more likely to accept.

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