Home Buying

If this is your first time to buy a home you are about to embark on one of the most important and exciting adventures in your lifetime. Congratulations on getting to this point. Some people never get here and others wait too long. Here are a few very compelling reasons why you should consider the opportunity to purchase a home:

Potential future appreciation

Yearly tax advantages

Independence

Good Investment

Getting into the housing market allows you to keep pace with the market as it continues to increase in value each year. Waiting to buy until some future time can make it harder to get in as prices continue to go up. While prices don’t always go up each year on the average they appreciate about 5% a year. Humboldt County property prices have far exceeded 5% in this last year and a half, in some areas as much as 20%.

Representing You, the Buyer

It is in your (the buyer) advantage to have your own real estate agent to represent you rather than the realtor who listed the property. The agent who listed the property is already representing the seller and trying to negotiate the best possible deal for the seller. For the sellers realtor to also represent you causes a conflict of interest and is not recommended (this is called dual agency). Good representation starts by having an agent who is committed to you and will work solely for your best interests. The services of a real estate agent come at no cost to the buyer. As a buyer you have nothing to lose (and much to gain) as your real estate agent works hard for your best outcome.

The Buying Process

The process of buying a home or investment starts with determining your buying power...your financial situation...plus your borrowing capacity. Give your real estate agent some basic information about your available savings, income and current debt, they can then refer you to lenders best qualified to help you.

Finding Property

Once you know how much you can and want to invest, the next step is to find the properties that most nearly fit your desires and needs. Your realtor has many resources to assist you in that search. Sometimes the property you are seeking is available but not advertised in the market, and it will take some investigation by your agent to find all available properties. Your licensed real estate agent can show you any property listed in the multiple listing service even if he or she did not list it themselves. You don’t need to call each company and ask what properties they have for sale. All agents have equal access to all properties listed in MLS. It will be to your mutual benefit if you choose a real estate agent and stick with that person. The agent will respect your loyalty and respond with a sincere commitment to you.

Learning About Specific Properties

Your agent can assist you in the selection process by providing objective information about each property. Your realtor will help you answer questions about properties you may be thinking about for a home or an investment and if that property will have the potential resale value when you are ready to sell.

Negotiating

There are many negotiating points, including, but not limited to price, financing, terms, date of possession, and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should also provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required. Your agent can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports.

Closing

The title or escrow company will handle the details of the closing process. Again, your real estate agent can guide you through this process and make sure everything flows smoothly.

Darrell Grytness, Broker, Owner, specializing in residential real estate in Humboldt County