7 Arbor Way, Lafayette CA

1) Rates: Ridiculously low interest rates can help you put more towards the principle every month.
2) Values: Lower values increase your buying power while reducing you property taxes.
3) Leverage: Put down 20% on a $525,000 home ($105,000) – when the value goes up 10%, it increases on total ($525,000) not on your initial investment, net +$52,500.
4) Forced Savings: If you pay rent all you have to show for after years and years are cancelled checks.
5) Choices: You get to paint your rooms primary colors without permission from your landlord.

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Well folks, could this be the bottom? Low housing prices and attractive interest rates make this market, according to Yahoo Finance, “the Best Buyer’s Market in 40 years.” Despite continued bad press about housing, the engine keeps chugging along. Why?

For starters, Generation X outnumbers Baby Boomers by 6 million people. Housing continues to be in demand for young people in the workforce. Secondly, China has just banned purchasing investment property so from the international viewfinder, the US is an excellent place to put money into housing. Third, those homebuyers who suffered foreclosures in round one can now get back into the market, if they’ve played their cards right. Finally, homebuilding has ground to a halt so you can bet that we will see even more demand in years to come.

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What a Real Estate Agent Can\’t Tell You

Impeccably maintained town home in quiet North Pleasant Hill.

Opportunity knocks. Solid 3 bedroom, 2 bath cosmetic fixer tucked away from it all. Excellent pocket of homes in central location, close to freeways, shopping and BART. Hardwood floors, 2 car garage, private lot. Why rent? 

Buying a home in any market can be daunting. No matter how left brain you are, most people buy emotionally, then justify logically. Here are ten tips to make your home buying adventure a little less “adventurous”…

1)      Pre- Qualify: Don’t forget to work closely with a qualified Loan Agent before you find the house of your dreams. Banks are currently demanding more documents such as tax returns, pay stubs and bank statements. Be sure to hold off on large purchases which may affect your credit. 

2)      Keep Closing Costs in Mind: Remember to set aside funds for closing costs. Loan points, escrow fees, appraisals, inspections and other fees will need to be addressed at the time of closing on your new home. 

3)      Make Use of Technology: Although nothing beats an actual walk through of the home of your dreams, great websites, email updates, voice activated IDX systems and virtual tours can save you time with your search. Even if you have a clear picture of what you want in a home, you may turn a corner and surprise yourself. 

4)       Look for Incurables: Deficiencies such as power lines, freeways, commercial areas and busy streets can all affect the marketability of a home, even in the best of times. Pay attention to the incurable aspects or most expensive items first (lot position, floor plan), then work your way to the least expensive (carpet, paint, touch up). 

5)      Work with an Experienced Agent: Nothing replaces experience. A good Real Estate agent, whom you preferably find by referral, will pay great dividends. The 3 questions to keep in mind are: (1) Can I trust you? (2) Are you good at what you do? (3) Do you care about me? 

6)      Don’t Major in the Minors: Every home has defects and deficiencies – even brand new ones. Once in escrow, do your best to focus on what the home has to offer in the long run (neighborhood, quality of life, utility), not on all the minutia that turns up on the home inspection. Avoid getting caught up in the “process” as it can be taxing, stressful and somewhat anticlimactic. Keep your eye on the prize and always retain a “business” mindset. Resist the temptation of making it a “personal” shootout with the Seller.

7)      Count on Repairs: Although most home sales have a home warranty negotiated, have a few dollars set aside after closing for unexpected repairs. 

8)      Look into the Future: Even though you haven’t even closed on the home yet, you will most likely sell it someday. When searching,  focus on location, neighborhood and the amenities that get you excited. Chances are your next buyer will feel the same way.