Buying a home has many challenges, whether you are experienced or not in the buying process. Today's market presents more hurdles to jump through, more frustrations, more competition.
Knowing what to expect, and having an awareness of possible issues can help you from becoming too frustrated. And it will assist you in being prepared for the bumps, twists and turns that may lie ahead.
These challenges affect agents as well
INVENTORY- it may be great or very limited, depending on your market, price range, location, and what you are seeking. In some areas it has dropped off because more homes are selling, especially the REOs.
YOUR OWN IDEALISM - some buyers are not realistic about what they want and can afford. There's nothing wrong in dreaming, but ignoring reality will certainly cause some frustration. Part of this is learning what the market offers you in your price range. Part of it is simply being willing to accept trade-offs.
ANALYSIS PARALYSIS - education and research are good! And today's Internet provides plenty of opportunities to research. But you can get sucked into too much research and analysis and never get out from behind the computer and see the real world. Or run into a great deal of conflicting information.
MLS LISTINGS - seems there are more inaccuracies, terrible photos or no photos, outdated statuses and other problems. This can be for a variety of reasons, and it annoys the heck out of me and my peers. What you see in the listing MAY not be what you get. Be diligent in your investigations.
SHOWINGS- it seems that this is getting more difficult, especially with short sales and bank owned properties. Agents don't return phone call to allow access. Keys are missing or don't work. Lock boxes are broken. Sellers don't tell tenants you are coming and they won't let you in. I was unable to see 3 of 7 units the other day - I think I was more frustrated than my client.
And here are some more things to consider:
PROPERTY CONDITION - you might as well be prepared for some pretty scary properties, especially bank and short sales - even ones that are occupied. Move in condition is not a phrase one would associate with some of these homes and condos. It's hard to see beyond clutter, dirt, and poor condition to the potential that may lie within.
COMPETITION - it has become highly competitive for lower end properties, with multiple offers, often within hours of a home coming on the market. Do NOT assume you have lots of time to see the property and make a decision. If you snooze you lose.
APPRAISALS - the large number of distress sales can lead to lowered appraisals in many areas, which means the bank will not approve you loan. It is also happening in cases where folks are over-bidding. Appraisers are being much stricter, and with the changes in the appraisal laws, it's possible you will see changes in fees, longer wait times, and other issues. Read more about the new Home Valuation Code of Conduct.
OBTAINING A LOAN- you shouldn't be surprised at this given what we have been hearing for several years now about the mortgage crisis, but you may be surprised at the reality of getting a loan these days. Stricter requirements around income documentation, credit scores, availability of banks with money to loan, and many other factors mean getting a loan, unlike in the past, is NOT a slam dunk. Get pre-approved.
PATIENCE IS A VIRTUE- waiting for word on short sale approval? For underwriting to approve the loan? For HOA documents to arrive for your review? The list of things you have to wait for can be lengthy. For folks who tend to be impatient this can drive you nuts.
None of this is meant to scare you off, but, rather, to help you be ready for what lies ahead. This can be a great time for some folks to buy, depending on your financial circumstances, how long you plan to stay, in a home, your seriousness about becoming a homeowner (or being able to sell your current home to move up or down), ability to obtain a loan, and other factors. Affordability is better than it has been in many years, and interest rates, despite starting to rise, are also very favorable for many situations.
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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.
All content copyright © 2009 Jeff Dowler Carlsbad Homes and Real Estate Tidbits
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If I can provide more information about Carlsbad homes and real estate for sale and surrounding areas, the housing market in general (or locally), or otherwise assist you, friends or family in a home search or sale, please contact my mobile office or text me at (760) 840-1360 or email me at JeffDowlerSolutions@gmail.com
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