Help!!!! First time home buyer in Cali

[MikeyC]

Originally Posted by fxpose

Don't believe what they tell you. Never offer more than the asking price. In fact, offer less and they will counter.
Of course, this all depends on the region and market conditions.

The part that I bolded is a HUGE caveat. Listen to your realtor. They know the actual market conditions better than your local newspaper, TV news broadcaster, next door neighbor, uncle Fred, or whoever else you may poll. Your realtor will guide you as to the value of the property you are interested in and what the current market conditions are so that you can come up with an appropriate amount to offer that will give you the best chance not only to get the house but also for the least amount of money.

While there is a lot of good advice on here take it all with a grain of salt. Your local market conditions will likely be different than many of the people who offered advice. Also, keep in mind that many of the people who responded in this thread are not real estate professionals. People will learn a lot during the process of buying/selling real estate during their lives. But doing one transaction every 3, 5, or even 10 years does not make you as expert as a professional who goes through 10 or maybe 20 transactions every year.

The best advice I personally can offer you is to find yourself a trustworthy (not all are unfortunately), hard working, and intelligent realtor. While an agent of this type is not always easy to find (and is often NOT the guy who does the most business ironically) if you can find one their services will be invaluable. Plus, if CA is anything like MA, the seller pays all the agents commissions and so it will cost you nothing. Many people will say to you "don't get your own realtor. Go direct and get the listing agent to reduce his commission. This will reduce your expenses." In my experience 9 out of 10 times those people end up overpaying for the property. So, getting the commission reduced in the end saved no money.

[pnoon]

Originally Posted by MikeyC

The part that I bolded is a HUGE caveat. Listen to your realtor. They know the actual market conditions better than your local newspaper, TV news broadcaster, next door neighbor, uncle Fred, or whoever else you may poll. Your realtor will guide you as to the value of the property you are interested in and what the current market conditions are so that you can come up with an appropriate amount to offer that will give you the best chance not only to get the house but also for the least amount of money.

While there is a lot of good advice on here take it all with a grain of salt. Your local market conditions will likely be different than many of the people who offered advice. Also, keep in mind that many of the people who responded in this thread are not real estate professionals. People will learn a lot during the process of buying/selling real estate during their lives. But doing one transaction every 3, 5, or even 10 years does not make you as expert as a professional who goes through 10 or maybe 20 transactions every year.

The best advice I personally can offer you is to find yourself a trustworthy (not all are unfortunately), hard working, and intelligent realtor. While an agent of this type is not always easy to find (and is often NOT the guy who does the most business ironically) if you can find one their services will be invaluable. Plus, if CA is anything like MA, the seller pays all the agents commissions and so it will cost you nothing. Many people will say to you "don't get your own realtor. Go direct and get the listing agent to reduce his commission. This will reduce your expenses." In my experience 9 out of 10 times those people end up overpaying for the property. So, getting the commission reduced in the end saved no money.

By far, the best post in the whole thread.

[MikeyC]

Originally Posted by RGD.

Don't mean to harp on this subject - and I will stop after this - it's just that I see this constantly in my line of work. Make sure the home inspector is certified with "The American Society of Home Inspectors (ASHI)". In most any area all a person has to do is print up a business card and call themselves a home inspector. And once they identify there is a problem - as suggested above - call a contractor. In my line of foundation and structural repairs - most inspectors can say there is a problem but they don't normally know how to fix or the cause or the cost.

Anyway -

Ron

That will differ from state-to-state as well. In MA you have to be licensed by the state. I don't know what the licensing requirement is, but I know they have to be licensed. Extra designations like the ASHI certification never hurts either.

Originally Posted by pnoon

By far, the best post in the whole thread.

Thanks! That's why I'm a real estate professional.

[cbsmokin]

Since this is your first house don't forget the importance of sweat equity. The place you buy (epically your first) does not have to be perfect and actually you can save a lot of money if you are willing to do some simple jobs yourself.

Be wary of the Realtors, a good one is very hard to find. With out having worked with one before it will be more difficult. They should prepare a file for you. It will educate you about area trends (with actual figures of sales in the area), schools, property taxes, grocery stores, emergency services, etc. Also, don't be afraid to overwork them. Make them show you 100 homes if needed.

FWIW FHA rates on a 30yr fixed are about 5% right now so your VA should be the same.

One last thing ... make sure the house has a place for you to smoke your cigars!

[MikeyC]

Originally Posted by cbsmokin

Be wary of the Realtors, a good one is very hard to find. With out having worked with one before it will be more difficult. They should prepare a file for you. It will educate you about area trends (with actual figures of sales in the area), schools, property taxes, grocery stores, emergency services, etc. Also, don't be afraid to overwork them. Make them show you 100 homes if needed.

On behalf of all Realtors . . . THANKS A LOT!



On a serious note, if your Realtor ever gives you the impression that they don't want your business or that you are inconveniencing them with your desire to find a house then you're probably not working with a good Realor. So, find a new one.