5 Costly Home Buying Mistakes in Temecula
Getting caught up in the hype
This is a common occurrence in today’s housing market and one of the most costly mistakes Temecula home buyers are currently making. You should have a plan, and you need to stick with it. Don’t overextend yourself and get caught up in a bidding war, putting yourself or your family in a bad situation. Becoming house poor or cashing out all your savings to get a home is probably not the best idea. I can tell you from experience that there will always be another home.
I can’t tell you how many times in the last 15 years buyers have not had their offer accepted on a home they thought was their dream home, only to find the perfect home three 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 than a sprint. Look at it as a positive thing. If a home search takes 3 months, you will start learning about the Temecula communities, amenities close by, nearest schools, and what you like and dislike about each community. These are all important things that 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” price will work. This number should be lower than what you’re comfortable with. You simply want to know what the acceptable range is for getting your offer accepted.
I have talked about this in a few other blog posts and videos in the past six 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 that 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 regard to repairs.
A specific example of this is a home I just sold in Riverside. It backed up to a major street and commercial buildings, and it was so loud it wasn’t even nice to be in the backyard. The home had not been touched in 20 years when it came to upgrades or even repairs. The whole home needed to be remodeled and/or fixed.
IN NEED OF A 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 properties. No work, no fuss; just close on the house and move in.
The pool of buyers is going to be bigger for a turn-key home than for a house that needs a few touch-ups or upgrades. Instead of getting into a bidding war and spending $50,000–$60,000 above the list price, start looking at homes that need $3,000–$20,000 worth of work. Yes, it might be a little bit more hassle, but it will 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. In Temecula, trying to buy a “turn-key” home can be a costly mistake 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 with him or her. Because home prices are high, you often 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 understand 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 how this is 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 from making costly home-buying mistakes in Temecula.
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