Sun, 31 May 2009 22:06:00
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| Article by:
Pamela Lamarre and Tracy Dearman
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While the burst real estate bubble might be bad news for the economy, it’s good news for homebuyers – particularly those looking to purchase in the San Francisco Bay Area. For many, now is arguably the best buying opportunity of a lifetime. Understanding that the time is now, know also how and where to begin.
Establish a realistic budget
Owning a home involves more costs than may immediately be apparent. In addition to your mortgage, you will be responsible for taxes and homeowner’s insurance, as well as mortgage insurance if you buy with less than a 20 percent down payment. Wise homebuyers also set aside savings for future maintenance and unexpected emergencies. The reality is that you will eventually need to repair or replace a number of items in or outside of your home.
Buy what you need
While real estate is often considered an excellent investment, it’s important to only purchase as much home as you actually need and can afford. Bigger isn’t always better; sometimes it’s simply more expensive. Higher taxes, larger insurance bills and more maintenance can eat away at even the best budgets. Buy what you need, unless you are consciously planning for growth.
Plan for growth
Homebuyers can conversely be too modest when it comes to purchasing a home. If you intend to begin or extend a family, you may outgrow your home sooner than expected. Plan for growth to ensure you will be as comfortable in your home tomorrow as you are today. If done thoughtfully, you won’t need to continually move or upgrade to keep up with changes in family size or dynamics.
Understand appreciation
Although you don’t want to base the purchase of your home solely upon appreciation, it’s important to understand how the future value of your home is likely to impact your ability to move later if you choose to. When the time comes to sell, rent or exchange your current property, a home with long-term appreciation provides greater buying options for the future. Search for areas and neighborhoods with attractive features expected to increase your home’s value over time.
Work with a reputable agent and broker
A competent real estate agent and mortgage broker are worth their weight in gold, which is why you typically find that investors would never think of going it alone. Arm yourself with the right team – one that will take the time to determine your needs, negotiate strongly on your behalf, manage the often-daunting paperwork and legalities of buying and financing your home and help you navigate the entire process with relative ease.
Take advantage of unprecedented home prices and mortgage rates in the San Francisco Bay Area. Take control of your financial future today.
Pamela Lamarre and Tracy Dearman are business partners and head California State Funding Group and HSM realty finance management, respectively. For additional information, visit www.hsmsf.com.
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