First time home buyer: 5 quick tips

Buying a home for the first time may seem like a daunting task but it doesn’t have to be. This quick list will help you understand some of the foundational aspects of looking for and buying a home.

Preparation

Start saving money the second you decide you want to buy a home, even if it seems a long way off. This way you don’t have to tap into your existing savings, and it will allow you to budget more easily. If you don’t have a large budget, you will have to remain flexible with your options.

Loan eligibility and pre-approval

Before you even begin shopping for a home it is a good idea to understand how much money a lender is willing to give you. Considerations like your credit score, income and how long you’ve been at your job are important factors in assessing your eligibility. In a hot market, pre-approval allows you to move more quickly and can make a huge difference when it comes to offer approval.

Down payment

Generally, a down payment starts at about 20% of the purchase price. Having a down payment will help you avoid higher monthly payments and could offer flexibility on terms of the purchase agreement. Having a down payment will also make you more attractive for the seller because it improves your negotiating power.

Priorities

Before you start looking for a home you should take time to consider what it is you really need, what you want, and what you’re willing to compromise on. This information will help you stay focused as you begin the search for your new home. Before you start thinking of improvements or luxuries, focus on the ‘big picture’ aspects you will need now and in the future. For example, are you planning on having kids or getting pets? If so, you may want a larger yard which is something you can’t expand later.

Working with a real estate agent

A good real estate agent will make your search for homes much easier by handling many stress-inducing activities like negotiation and paperwork while helping you avoid potential pitfalls. If you’re new to an area, a realtor partner can give you helpful advice to get you integrated into your new neighborhood more quickly.

---

Looking to buy real estate in the Sacramento, Placerville, or Yolo area? We're here to answer any questions you may have. Drop us a note today!

A few things to consider before listing your home

Are you thinking about selling your house? Whether you're leaving your neighborhood, city or state, moving presents many challenges especially if you need to sell your home first.

There are steps you can take before listing your home that will help make the process smoother for you. Here is a short list of simple things you can do now as you prepare your home for listing.

Preparing your home

As many of us 'get ready' before going out with friends, we must also consider that our house needs to 'be ready' for new people to see it - and hopefully buy it. These three easy steps will go a long way to improving how your house shows for other people:

• Organize - Have your books gone topsy turvy? Arrange them in a consistent manner. Make sure 'families' of things that belong together are grouped together. If it belongs in a drawer, return it to the drawer. Open space will make your home look more open and appealing.

• Clean - Has it been a while since you cleaned the windows? Is dust and pet hair collecting on your floorboards? Does the air smell fresh? When we go to hotels we would be very put off by dingy windows, dust and hair collecting everywhere and stale air. People feel similarly when they enter your home so taking steps to clean goes a long way.

• Declutter - You might be accustomed to the golf clubs in the dining room, but it is a good idea to remove items that don't really belong. It makes the space look larger and really allows it to shine, especially if you have architecturally interesting details that might be obscured by objects.

Market research

Homeowners want to get a fair price for their homes and the first thing they tend to think is, 'Should I sell it myself? Should I go with an agent?' In today's modern era, homeowners can get a wealth of information about the real estate market online. However, due to the dynamic nature of the housing market we recommend seeking professional help. Even if you do a lot of research on your own, there are many nuances that happen day-to-day in real estate that don't make it into online blogs and editorials but could affect the sale of your house. Leveraging the experience of a real estate brokerage could save you time, money, and some serious headaches.

Setting the price

Setting the price of your home is more important than you may think. If you set it too high, you will have trouble attracting buyers, whereas if you set the price too low, home buyers would likely be suspicious and shy away thinking there is something wrong with the home.

A general rule of thumb when it comes to pricing is current market value. If you paid $350,000 for your home and it is valued at $400,000 now, listing it at $400,000 would make sense. However, if the market value is only $300,000 you should list it at $300,000. Tools like zillow.com can help you get a ballpark estimate for the current market value of your home. This isn't a magic bullet however, and many other factors could affect your asking price. Your real estate agent will be better equipped to evaluate details like the condition of the market, comparable homes, neighborhood characteristics and more that will undoubtedly affect your home price.

Got questions about your home's resale value? Ask me now.

Written by Rebecca Parnianchi

---

Looking to sell real estate in the Sacramento, Placerville, or Yolo area? We're here to answer any questions you may have. Drop us a note today!

How a good realtor changed my life

When I came to the United States as a new immigrant in 2001 I wanted only one thing—freedom. Living paycheck to paycheck during a recession with a rent payment of $1,100, the idea of owning a house seemed so out of reach I didn’t dare think about it. It was a colleague who referred me to an agent he knew, despite my deep skepticism. I had no money but I was curious to learn more about home buying in the U.S. so I met with the agent.

This agent walked me through the process of home buying with the highest level of integrity and care. They patiently sought out homes that were “in my range” and presented many options for my consideration. Eventually he found a home that I wanted and I made an offer. When I was going through the loan application process the underwriter flagged that the money I had wasn’t enough to cover the down payment and closing costs. It confirmed my suspicions all along and I thought, “well, I knew this would happen!”

My agent offered to discount his commission to compensate for the shortage I had for closing costs and I was able to proceed with the purchase of my first house. My mortgage payment ended up being almost the same as my rent payment and was affordable to me. By now the value of my house has dramatically increased. The downstream effect of buying my first home has been nothing but positive, resulting in better credit, equity, stability and comfort.

The actions of one agent, having your best interests in mind can change your life—it did mine.

Written by Shehab Parnianchi

---

Looking to buy real estate in the Sacramento, Placerville, or Yolo area? We're here to answer any questions you may have. Drop us a note today!