Many folks dream of purchasing a Bay Area home and turning the key in their door for the first time. But buying a house isn’t always smooth sailing, and mistakes made by first-time buyers can make the difference between getting a deal and losing out on your dream home.
That is why local residents have to surround themselves with local experts, all while saving as much as possible to cover closing costs and any post closing renovations.
To help aspiring homeowners begin their journey, the team at Prevu Real Estate prepared a list of common mistakes that first-time buyers should be sure to avoid.
Mistake 1: Not saving soon enough
It has never been easier to scroll through available listings, you could be out doing errands and learning about the latest real estate hitting the market. But while scrolling is easy, saving is not. Buyers can quickly be disappointed if they find their ideal San Jose home only to learn they do not have enough for a down payment and other transaction costs.
That is why you want to set a budget before beginning your search, to recognize your monthly income and cash outflows.
But passively saving for a down payment can be improved if San Francisco buyers set up automated savings deposits. First-time buyers can also ask family for help with a gift, but make sure you speak with a mortgage professional to figure out what financing works for you.
Mistake 2: Not hiring a buyer’s agent
Navigating the many steps of the home buying process can be daunting, so having an expert buyer's agent at your side helps make your transaction flow smoother.
So once you are following a budget and set up a savings plan, it is time to start meeting agents. Diligent buyers should speak to a pool of agents to see how well they know your target San Francisco neighborhood or Bay Area city.
Mistake 3: Not asking for a commission rebate
Buyers who jump the gun on searching may find a waterfront home in Alameda, only to hire the first agent they can find and miss out on a commission rebate.
After budgeting for a down payment, buyers should meet with local brokers and ask if they offer commission rebates before hiring them. These powerful tools put money back in the pocket of homebuyers once a deal closes.
Bay Area buyers can choose to work with firms like Prevu Real Estate to receive the firm’s Smart Buyer Rebate totaling up to 2% of the home’s purchase price.
Mistake 4: Not hiring a property inspector
Unless you come from a background in home contracting work, first-time buyers should always get a home inspection from a licensed professional.
A strong desire to save a few hundred bucks while quickly moving into a new home makes skipping inspections sound appealing to first-time buyers. But buyer beware, as waiving this step of the home buying process can lead to missing critical damage in a home.
For instance, a storied Victorian-style house in the Mission District exudes charm, but older homes like this can conceal many issues. A qualified property inspector gives an unbiased report of the state of the floors, HVAC, roofing, and water drainage.
Mistake 5: Not shopping for best mortgage rate
New entrants to the real estate market are happy to accept guidance but usually work with lenders recommended by friends or family. And newcomers to the market should meet with these folks, but first-time buyers should meet various lenders.
Aspiring buyers in the San Francisco Bay Area short-change themselves if they work with the first lender they meet, as they lose out on an opportunity to learn about financing options. Speaking with multiple mortgage lenders allows you to compare interest rates and fees.
Interested in buying in the Bay Area? Browse listings and see how much you can potentially save with Prevu’s Smart Buyer Rebate.
Prevu Real Estate, Inc. is a licensed real estate broker in California, license number 02134758.
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