5 Mistakes First-time Homebuyers Make

1) Not Getting Pre-Qualified/Pre-Approved

Getting pre-approved shows sellers that you’re a serious buyer. Failing to do so before you begin house hunting is a waste of time because you don’t know how much you can afford. Be sure to get at least a couple different quotes to make sure you’re getting the best rate. Our company can help qualify you. It’s better to buy now and refinance later when interest rates drop. As they say,

“Date the rate. Marry the property.”

2) Not Working with a Professional Real Estate Agent

Working with a great Realtor who knows the market will help save you time and stress. Experienced Realtors know how to make their offers stand out and negotiate things including price, repairs, and contingencies to get you the best deal. Our Realtors know the current market trends and how to get your offer accepted amidst the most competitive market in history. If you decide to represent yourself it may be a very long time before you get an accepted offer and move into your dream home.

3) Waiting to Take Action

“Don’t wait to buy real estate. Buy real estate and wait.”

The biggest thing I hear from people is that they wish they had bought real estate sooner. If you look at history, real estate generally appreciates upwards. And considering the state of the current real estate market, it doesn’t look like prices will be coming down in California anytime soon. Get in now while you can. The right time to buy real estate is when you are ready, willing, and able.

4) Being too Picky

With low inventory in today’s market, we are still in a seller’s market. Not being able to see a home beyond its current condition leaves you with little options. Ask yourself, what are you willing to sacrifice? Price, size, location, etc? You can always change cosmetic features in a property, so choose to see the potential of a property. Your first property likely won’t be your dream home, but it’s the quickest way to get into your dream home. We’re always here to help you make improvements later on down the line and add value to your home.

5) Not Saving Enough for a Down-Payment

Purchasing a home is often the biggest purchase of your life. Be sure to have enough reserves saved up not only for the down payment, but also any unexpected maintenance expenses you may incur as a new homeowner. Additionally, be sure to hold back on making any large purchases like cars or other luxuries, as this can greatly impact your purchase power. Remember that what you can qualify for is not only based upon your credit score and income, but also your debt-to-income ratio. Also, a lot of people forget about closing costs and are shocked once closing escrow. We recommend having at least an additional 1-3% saved for closing costs, plus 3 months of reserves for your mortgage.

10 Ways to Add Value to Your Property

In today’s market, these are the biggest features that homebuyers look for and will go a long way in adding value to your home. Of course, you don’t have to include everything on the list but even a few will greatly increase the value and desirability of your home, which will help it sell faster and at top dollar.

1. Interior/Exterior Paint

   This is an easy and low cost upgrade. A simple fresh coat will help your property stand out to potential buyers.

2. Update Kitchen

   As kitchens are the heart of any home, it’s one of the major factors that will add the most value to your property and it makes the property more functional and livable. While it may seem intimidating to do a full remodel, gradually updating it will help give you the most bang for your buck. Remodeling Magazine’s annual Cost vs. Value Report states that you can expect to recoup up to 62.7-81.6% of your investment on a kitchen remodel.

3. Update Bathrooms

   Bathrooms are the other major way to add value to your home. According to the Cost vs. Value Report bathroom remodels will recoup 87.7-93.5% of your investment.

4. New Appliances

   -HVAC, Water heater, fridge, stove, washer, dryer, dishwasher

5. Improve Curb Appeal/Landscaping

   First impressions are everything. Even painting your front door, the exterior and house numbers will make your property visually more attractive. You can also add plants, shrubs, flowers, or mulch to make your property look more inviting. This has a huge effect on buyers psychologically.

6. New Roof

   The average life expectancy of a roof is 10 years. We recommend replacing your roof accordingly as it’s one of the top things inspectors and insurance companies look for. On average, you’ll get roughly 57% of your upfront cost back when selling.

7. New Flooring

   Hardwood floors are one of the most attractive flooring and with so many types available today, it can be a cost effective way to add tons of value to your property. Homeowners can expect about a 147% return on their initial investment once selling.

8. Garage Doors

   Not only will a new garage door replacement add value to your property, but it will also help sell your home faster as it takes up a large portion of your exterior and adds extra security. A garage door replacement has an ROI of about 96.8%.

9. Windows 
   If you don’t already have dual pane windows, consider this upgrade as it can not only reduce outside noise, but also save energy and help with insulation.

10. Misc:

    Electrical Panel, Pex Water Lines, Insulation, Light fixtures, outlets

Before listing your property, also be sure to declutter and clean it out. Doing so will make your property more attractive to potential buyers to ensure that you get the best offer.