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REALTOR®: 10 helpful tips to take the trauma out of buying a home

Wednesday, March 21, 2007

With the median of single-family homes, townhomes, and condos on the Peninsula continuing to climb (Data from REInfoLink, the Multiple Listing Service for Santa Clara County and four other counties in the Bay Area, reveal the median home price for the county in February 2007 was $790,000, up from $765,000 in February 2006), it is imperative that prospective buyers do their homework before finding their dream house.

Here are 10 helpful tips:
 
1. Find a real estate agent you are comfortable with and trust. It is critical that the agent you choose is both skilled and a good fit with your personality. Stay in close touch with your real estate sales associate to find out first about new listings that come on the market.

Realtors who proudly display the REALTOR® logo on their business card or their marketing and sales literature distinguish themselves as members of the nation's largest trade association who adhere to a strict Code of Ethics and Standards of Practice:  The National Association of REALTORS® ® (NAR), which represents more than 1.2 million Realtors nationwide.

As members of the Silicon Valley Association of REALTORS® (SILVAR), Realtors® are backed by a vast network of resources and can give prospective buyers up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. A knowledgeable Realtor is a tremendous resource for homebuyers looking to purchase the home they truly want at the best price, with minimum hassle or stress.

2. Remember, there's no "right" time to buy, any more than there is a right time to sell. If you find a home now, don't try to second-guess the interest rates or the housing market by waiting. Changes do not usually occur fast enough to make that much difference in price, and a good home will not stay on the market long.

3. Don't ask for too many opinions. It is natural to want reassurance for such a big decision, but too many ideas from too many friends and relatives will make it much harder for you to make a decision.

4. Accept that no house is ever perfect. Focus in on the things that are most important to you and let the minor ones go. Don't get so caught up in the physical aspects of the house itself—room size, kitchen, etc.—that you forget such issues as amenities, noise level, schools, or traffic that have a big impact on what it is like to live in your new home.

List your priorities in a new home. Decide in advance what you must have so you are prepared when you have the chance to make an offer.

5. Bid competitively. You may not want to start out offering the absolutely highest price you can afford, but don't try to go too low and get a deal. In a tight market, you'll lose out. Don't try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to "win" by getting a "bargain" price may lose you the home you love.

6. Keep contingencies to a minimum. Restrictions such as needing to sell your home before you move or wanting to delay the closing until a certain date can make your offer unappealing.

7. Don't wait until you have found a home and made an offer to get approved for a mortgage, investigate insurance availability and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers. Get pre-qualified for a mortgage. This allows you to make a firm commitment to buy and makes your offer more desirable to the seller.

8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be some costs. Don't leave yourself short and let your home deteriorate.

9. Don't get caught in a buying frenzy. Just because there is competition does not mean you should just buy anything. And even though you want to make your offer attractive, don't neglect inspections that help ensure that your house is sound. Accept that a little buyer's remorse is inevitable and it will inevitably pass. Buying a home, especially for the first time, is a big commitment, but it also yields big benefits.

10. Choose a home first because you love it; then think about appreciation. While home prices in Santa Clara County have greatly appreciated for the past few years, a home's most important function is as a comfortable, safe place to live.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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