MISTAKE #10 – Not purchasing a home warranty plan for your San Carlos or Mountain View Home
A home warranty is a one-year insurance policy against basic repairs that come up during the first year in your new home, and covers things like a broken furnace or refrigerator. The policy will cover the repair or replacement for a nominal fee, and is always a good idea when buying a home. I like to buy a home warranty policy as a goodwill gesture for my clients.
Josh Hohman works with home sellers and buyers all over the Bay Area, and I’m happy to help with any and all questions! Email Me, or call 925-683-1642 and I’ll get back to you just as soon as I can. Your request goes directly to my personal email.
Tagged as:
Mountain View Homes,
San Carlos Homes
MISTAKE #9 – Not having a home inspection for the purchase of your Mountain View or San Carlos Home
Many buyers make the mistake of trying to save a few hundred dollars by not hiring a home inspector. A good home inspector will walk you through all aspects of your potential home, and tell you where there is potential mold, poor insulation, code violations, or structural defects – all important issues that may not be disclosed (or even known) by the seller.
Always, always, always meet with the inspector during the inspection. The inspector will take the time to show you everything that is going to appear on the report, and more importantly, tell you a multitude of issues that, for legal reasons, he may not include in the written report. If nothing else, you will get to know your new home inside and out, and will get a comfort level that you are purchasing a solid home. Trust me, this is the best $400 you will ever spend in terms of peace of mind.
Josh Hohman works with home sellers and buyers all over the Bay Area, and I’m happy to help with any and all questions! Email Me, or call 925-683-1642 and I’ll get back to you just as soon as I can. Your request goes directly to my personal email.
Tagged as:
Mountain View Homes,
San Carlos Homes
MISTAKE #8 – Not being diligent with your due diligence
Make a list of what you want in your dream home before you start looking. Thinking of starting a family? Then maybe schools are at the top of the list. Do you want to be close to downtown shopping, dining, and public transportation? Do you want your home to be in perfect condition, or are you willing to make cosmetic improvements? You should discuss all of your concerns with your agent before you start looking at homes.
Your list of criteria may change once you start looking at homes, but do not fall in love with the wrong house and rationalize away all the important concerns you had when you started the process. Having a list of priorities will help you stay focused and rational as you start looking at homes. In reality, you may not find a home that is absolutely perfect in every category, but you need a logical way to consider the trade-offs you are making when writing an offer.
Josh Hohman works with home sellers and buyers all over the Bay Area, and I’m happy to help with any and all questions! Email Me, or call 925-683-1642 and I’ll get back to you just as soon as I can. Your request goes directly to my personal email.
Tagged as:
Mountain View Homes,
San Carlos Homes
MISTAKE #7 – Assuming foreclosures in San Carlos and Mountain View are great deals
It is worth taking a few minutes to research the differences between short sales, pre-foreclosures, foreclosed homes, and bank-owned (or “REO”) homes. The short version goes like this: a homeowner owes more on their home than it is worth, they may decide to try to sell it for less than they owe and negotiate a settlement with the lender – this is a short sale. If the homeowner stops making mortgage payments, then the lender eventually initiates foreclosure proceedings, and the home is considered a pre-foreclosure. If the homeowner does nothing to stop the foreclosure, then the home goes to auction at the county courthouse steps (literally in most cases) 3 months later for a cash-only foreclosure sale. If no one buys the foreclosed home, then the take owns it. The bank hires a real estate agency that handles bank-owned properties to make sure the property is vacated, and then markets the home for sale as an REO, or bank-owned property.
Short sales are sellers that owe more on their mortgage than the home is worth. The seller is hoping to get an offer from a buyer, and then take that offer to their mortgage holder and try to negotiate a sale for less than the seller owes. The process can take a few months (though it is getting better), and the seller’s mortgage holder may insist that the buyer uses their mortgage company for the new mortgage. The market is getting more efficient in terms of pricing short-sales, so do not expect to get a huge discount on the purchase price. You are being compensated for the hassle of the increased difficulty in making the purchase.
If the short-seller is also behind on their mortgage, the lender may have initiated foreclosure proceedings on the seller. In this case, the home is a pre-foreclosure. I would find another home in this case, since it can turn into a legal mess. If you do pursue a short-sale, it is imperative that you call the seller’s lender and make sure the seller is current on their mortgage payments.
Bank owned homes are foreclosed homes that went to auction, did not sell, and are now held by the bank. Bank-owned homes are much, much easier transactions than foreclosures since the home is vacant — as opposed to a foreclosure, where the former home-owner may still be living in the home.
Bank-owned homes are essentially the same as any other home on the MLS, with the exception that the home may have been neglected for the past several months after being vacant. The bank has given a real estate agent the authority to sell the home. Bank-owned homes are relatively low risk purchases, so do not expect much, if any, price discount.
Josh Hohman works with home sellers and buyers all over the Bay Area, and I’m happy to help with any and all questions! Email Me, or call 925-683-1642 and I’ll get back to you just as soon as I can. Your request goes directly to my personal email.
Tagged as:
Mountain View Homes,
San Carlos Homes
MISTAKE #6 – Limiting your search to open houses, ads or the Internet
Many times a home on a real estate website, or in a newspaper, is sold by the time it appears. A lot of information is out of date by the time it reaches the public. Not all websites use direct feeds from the MLS and even for those that do, the time it takes to appear on the site varies by a lot.
If you are looking for homes in desirable areas of San Carlos, Mountain View, San Mateo, or Burlingame; most two and three bedroom homes under $1million are selling within the first week on the market. This means, if you, as a buyer, are not touring a new listing within the first two days it hits the market, then you are going to have a difficult time making a timely and competitive offer.
Your best course of action is to contact a real estate agent. They have up-to-date information that is unavailable to the general public, and they are the best resource to help you find the home you want.
Josh Hohman works with home sellers and buyers all over the Bay Area, and I’m happy to help with any and all questions! Email Me, or call 925-683-1642 and I’ll get back to you just as soon as I can. Your request goes directly to my personal email.
Tagged as:
Burlingame Homes,
Mountain View Homes,
San Carlos Homes,
San Mateo Homes
MISTAKE #5 – Not knowing the total costs involved with buying a home in Mountain View or San Carlos
On a strictly cash flow basis, renting is cheaper than owning a home in the current market. However, the actual difference is more complicated when you consider that mortgage interest is tax deductible, and capital gains are tax free (up to $250k for a single, or $500k for a married couple) after 2 years of living in the home. Both of these facts are huge advantages of home ownership.
Buying and owning a San Carlos or Mountain View home has many associated costs, including closing costs, property taxes, increased homeowners insurance, and maintenance and upkeep. Keep all these in mind when deciding how much home to purchase, and know your total out-of-pocket costs each month before you make an offer.
Josh Hohman works with home sellers and buyers all over the Bay Area, and I’m happy to help with any and all questions! Email Me, or call 925-683-1642 and I’ll get back to you just as soon as I can. Your request goes directly to my personal email.
Tagged as:
Mountain View Homes,
San Carlos Homes
Your first step as a potential homebuyer is to talk to your bank and get prequalified. Do this even before you start looking at homes. I recommend that you speak with your bank (i.e. the bank that you have a checking account with), and at least one mortgage broker. Your bank can usually give you the best rate and terms if you have good credit and plan on making a 20% down payment. After you get a quote from your bank, speak to a mortgage broker to see if he can beat the rate and terms. The mortgage broker will shop different lenders to find a better rate.
You will need a preapproval (not a prequalification) letter before you submit an offer on a home. This is a must, as your offer will not be credible without an accompanying preapproval letter in the amount of your offer price. This is especially critical in competitive housing markets such as San Carlos and Mountain View.
As a side note, the amount the bank says you can afford is not necessarily what you can afford. I tend to be a bit more conservative, and I am always shocked at how much the bank says I can spend on a home. Things have gotten a bit more conservative at the banks since the housing bubble, but not as much as you might think. Make sure you know the total cost of home ownership, and decide how much money you can comfortably spend each month on your mortgage.
Josh Hohman works with home sellers and buyers all over the Bay Area, and I’m happy to help with any and all questions! Email Me, or call 925-683-1642 and I’ll get back to you just as soon as I can. Your request goes directly to my personal email.
Tagged as:
Burlingame Homes,
Menlo Park Homes,
Mountain View Homes,
Palo Alto Homes,
San Carlos Homes,
San Mateo Homes
MISTAKE #3 – Choosing a real estate agent who is not committed to forming a strong business relationship with you
The seller pays the buyer’s agent, so you are not responsible for any out-of-pocket costs when using an agent to buy a home. So if you have any doubts at all, then I highly recommend working with the best agent you can find for your first transaction. You can always go it alone for future transactions after you have learned the ropes.
Josh Hohman works with home sellers and buyers all over the Bay Area, and I’m happy to help with any and all questions! Email Me, or call 925-683-1642 and I’ll get back to you just as soon as I can. Your request goes directly to my personal email.
Tagged as:
Burlingame Homes,
Menlo Park Homes,
Mountain View Homes,
Palo Alto Homes,
San Carlos Homes,
San Mateo Homes
MISTAKE #2 – Thinking there is only one perfect home out there
New homes come on the market every week, so don’t fall in love with any one house, and try not to get discouraged if you lose out on the first – or second – house you make an offer on. Sometimes it takes an offer or two to get a level of comfort with being aggressive enough to get the home of your dreams.
Buying a home is an emotional process, but the key to getting the best home for the best price is to remain as unemotional as possible until you have negotiated the purchase of your dream home and are “in contract” to purchase the home. This is easier said than done.
Tagged as:
Burlingame Homes,
Menlo Park Homes,
Mountain View Homes,
Palo Alto Homes,
San Carlos Homes,
San Mateo Homes
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.
Tagged as:
Burlingame Homes,
Menlo Park Homes,
Mountain View Homes,
Palo Alto Homes,
San Carlos Homes,
San Mateo Homes
