5 Costly Home Buying Mistakes in Temecula
GETTING CAUGHT UP IN THE HYPE
This is very common now in this current housing market and one of the top costly mistakes home buyers are making in Temecula right now. You should have a plan and you need to stick with it. Don’t overextend yourself and get caught up in a bidding war and put yourself or your family in a bad situation. Becoming house poor or cashing out all your savings to get in a home is probably not the best idea? I can tell you from experience, there will always be another home.
I cannot express how many times over the past 15 years buyers have not got their offer accepted on a home they felt was their dream home only to end up truly finding the perfect home 3 weeks later. If it’s meant to be, that is the home or offer that will be accepted for you.
This is of course easier said than done but you need to stop, take a deep breath and realize that this home search could be more of a marathon, not a sprint. Look at it as a positive thing. If a home search takes 3 months you will start learning the Temecula communities, amenities close by, nearest schools, and what you like and dislike about each Community. These are all important things and often get overlooked because you’re getting your first or second offer accepted in a normal market.
PAYING MORE THAN YOU NEED TO
On every single property that you want to make an offer on in Temecula, your agent should be reaching out to the listing agent and asking them if “X” offer price will work. This number should be lower than what you’re comfortable with. You just want an idea of a reasonable range where you need to be to get your offer accepted.
I have talked about this in a few other blog posts and videos in the past 6 months but emails and texts don’t cut it in this market. I do not like when agents call me and ask where they need to be but they are memorable and it seems more often than not the ones that reach out and have a conversation with me are the ones that get their offer accepted. Not being aggressive is a costly home buying mistake, to say the least
BUYING A PROPERTY THAT IS NOT DESIRABLE
Please don’t settle for a property that nobody wants except in a seller’s market. Many times in a seller’s market, buyers get frustrated and end up purchasing a home that is in a horrible location or has major issues in regards to repairs.
A specific example of this is a home I just sold in Riverside. It backed to a major street & commercial buildings, it was so loud it wasn’t even nice to be in the backyard. The home was not touched in 20 years when it came to upgrades or even repairs. The whole home needed to be remodeled and/or fixed.
NEEDING THE TURNKEY HOME
There is a difference between a dated home and one that has been neglected. A dated home in a great location that has been well taken care of is an awesome opportunity in Temecula’s housing market. I have found that over the past five years buyers want turnkey. No work, no fuss, just close on the home and move in.
The pool of buyers is going to be bigger on a turn-key home than on a house that needs a few touch-ups or upgrades. Instead of getting in a bidding war and spending $50,000-$60,000 above list price, start looking at homes that need $3,000 to $20,000 worth of work. Yes, it might be a little bit more hassle but it will it be easier on your pocketbook and you can design the home exactly how you want it. Flooring and paint can transform a home at a relatively low cost. Going after the turn-key home in this market can be a very Costly Home Buying Mistake in Temecula in the current market.
PUTTING TOO MUCH DOWN
I’m sure you’ve heard but interest rates are historically low. Why use your own money when you can use the banks? In my opinion, borrow as much money as you possibly can from the bank and keep what you have to invest in other things. Whether you purchase a rental property, stock market, or crypto, I find it hard to believe that you’re not going to beat that 3 to 4 % interest rate you have with the bank. Put your money to work for you, not the bank.
The best thing to do is find a lender that you trust and go over different loan scenarios. Because home prices are high, often you get into jumbo loan situations in Temecula right now. I cannot talk specifically about different loan types because I’m NOT a licensed lender but the costly mistake home buyers are making in Temecula is not doing research on different loan programs and putting too much down on a home.
The housing market is always changing in Temecula. Greenleaf real estate has over 40 5 star reviews because we understand how to get the job done in each market. If you are a buyer today, you need an agent who’s going to be aggressive for you and understands what needs to get done for you to get your offer accepted. You don’t need to be frustrated in this market. You just need somebody to tell you exactly I was going to work and what you as the buyer need to do to be successful. Please reach out with any specific questions about Temecula or the surrounding area and we will keep you away from making costly home buying mistakes in Temecula.
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