I work exclusively with young professionals and young families across the San Francisco Bay Area. As such, I have seen several common mistakes that first-time homebuyers make. Over the next few weeks, I’ll highlight some of the more common (and costly) mistakes that first time home buyers make.
MISTAKE #1 – Assuming that it is a “Buyer’s Market” (i.e. assuming your first offer will be accepted)
Yes, we are on the back-end of the worst recession in decades, and the worst housing market on record. This leads to the (incorrect) assumption that the real estate market is universally cold, and that any “low-ball” offer will be eagerly accepted by desperate sellers. For many desirable areas on the peninsula and in the city, this could not be further from the truth.
Yes, housing prices have dropped across the board, but if you are looking for a two or three bedroom home under $1million in Mountain View, Los Altos, Palo Alto, Menlo Park, San Carlos, San Mateo, Burlingame, or any one of several neighborhoods within San Francisco, you can expect to compete against several bidders on every home. Well-marketed homes in desirable areas are getting multiple offers and are often selling after the first open house.
Most of the east bay is a different story, and your offer may be the only offer. The key is knowing if you are in a hot market or not, as the differences are striking from one zip code to another – even within the same town.
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