Buying a Home

San Elijo Hills Home Buyer's information

Some major points & advice for a successful home search:

1. The Multiple Listing Service (MLS) - this is the central database that all property listings from all brokerages (i.e. Prudential, RE/MAX, etc...) are pooled together. Every Realtor has access to the same properties in this database, so working with multiple agents doesn't make sense. Be sure to work with one Buyer's agent in depth and give them feedback to locate the right property for you.

2. Buyer's Agency Benefits - Using a buyer's agent is free for you - sellers pay the commission of both the listing and buyer's agent. The Seller is represented by the listing agent - use a buyer's agent to represent your best interests rather than speaking directly to a listing agent. Think about it this way, if you were a plaintiff in a court case, would you speak to the defendant's lawyer for advice? The listing agent has their own client's interests at stake and not your's - there is a conflict of interest when one agent represents both buyer and seller. Your buyer's agent is familiar with the neighborhood, what's available, market trends, and searches for homes on a full-time basis.

3. New Home Construction - There are a number of new homes coming onto the market in San Elijo Hill's in the next 2 years. Using a Realtor with new construction can be very valuable. They will let you know what builders are building in communities you are interested in and bring you to view homes. It is best that you have a Realtor with you the first time you walk into a new home or else the new home builder will not work with your Realtor and you will lose your representation. Just remember, going directly to the sales agent who represents the builder is not in your best interests - you need a buyer's agent representing you with new homes, just as much as you do with resale.

4. Working with a Lender - Speak with a lender as early as you can to get a credit report. If your scores are good, you can proceed to get prequalified for a specific price range based on the monthly payments and loan product that you are comfortable with. Your lender will also advise you on ways to improve your credit to receive a better loan rate. When you have a property in mind & are ready to make an offer, it is advised to speak with 2-3 lenders to get the best product at the best rate.

5. Tax Benefits - Interest payments on your mortgage & your property taxes are tax deductable. This makes owning a home more affordable than most people realize. Be sure to ask your Accountant about the tax deductions you receive as a homeowner. As an example, with a $3,000/month payment, you could receive up to $1,000 of that back come tax time.

6. Leverage your Investment - By financing your entire home mortgage, you can invest in a $500,000 property with less than $10,000. Imagine investing this $10,000 in something else like a mutual fund. If you had a good year, you'd get 20% on your investment, which now would total $12,000. In contrast, if your home received a small 5% gain in value over a year, you would now have gained $50,000 in equity. $50k or 2k? I think this best illustrates the concept of leveraging your investments by investing in real estate. When considering real estate as a conservative investment, it is always advised to look at the long-term 5, 10 or 15 years.

San Elijo Hills Real Estate - Realtor Directory
Steve Scheckner is a focused San Elijo hills Homes expert.