Eye on Real Estate – Top Tips for Homebuyers

Eye on Real Estate - Top Tips for Homebuyers

Eye on Real Estate – Top Tips for Homebuyers

In This Hot Real Estate Market – Top Tips For Homebuyers

Another day, another flurry of multiple offers. At least that remains the norm for most properties here in the San Francisco Bay Area.

Those financially fortunate enough to be involved in the buying process might consider these Top tips from Dottie Herman, President and CEO of Prudential Douglas Elliman and Eric Tyson who contributed to “Home Buying for Dummies”.

According to Tyson, buyers in this (or any) market should consider three factors before making a real estate investment.

Buyers need to consider how affordable it is as a part of their budget.
Each household must use their own personal circumstances to decide the feasibility of the purchase. Only the buyer knows if they have other monetary commitments that they need to work on first.
Last, new buyers must consider how comfortable they are with making a purchase. If they are not completely comfortable with buying a home, they need to put off a purchase until they are in a situation where it is an affordable option.

In his book, Tyson warned that buyers be careful of solicitors. Even solicitors recommended by your bank can be a bad deal for you financially. As we all know, banks will not always look after your best interests. Do your due diligence.

Consider the potential financial impact of each life insurance plan and hire a good financial planner to help you figure out your budgeting process. If you don’t want to work with a financial planner at this point consider using a free program such as Planwise.

In addition to a financial planner, it remains important to carefully elect a real estate agent or team to work with. We recommend obtaining a referral from a trusted professional.

Expenses and Taxes

Additionally, Tyson believes that families should have at least enough money to cover their living expenses for three months if they are hurt or laid off. During a recession, families should raise the amount of their savings to cover six months of expenses. Too many fall into default when some unexpected occurs.

To ensure that homeowners can afford their new home, they should also look into the property taxes in their area. Sometimes city assessors tax homes at a higher rate (especially here in San Francisco) but homeowners can protest it. Knowing how to contest the protest remains another matter.

According to Tyson, people should be wary of refinancing their home. With interest rates at historic lows, many home owners want to take advantage of the lower interest rates. Before jumping on the refinance bandwagon to sure t figure out how many years it will take before you start saving money and recoup the cost of refinancing.

If you want to prevent your interest rate from rising in the short run, pay your mortgage on time. Most banks offer automated payments. Homeowners who make late payments take a hit to their credit score. Over time, the bank may even raise their interest rate. Save money and sign up for electronic payments. With electronic payments, you will never have to worry about a check getting lost in the mail or forgetting to send in your mortgage.

Happy Buying

1 Comment

Filed under Banks, San Francisco, Web Sites

One response to “Eye on Real Estate – Top Tips for Homebuyers

  1. Pingback: Bay Area Housing Prices Rise To Four-Year High | Resource Blog

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s