Avoiding these mistakes will help you save money when buying in San Diego’s competitive housing market.
Homebuyers in San Diego are finding it hard to buy their first home or even to upsize or downsize with the current competitive housing market. There is a housing shortage in San Diego and this is causing prices to surge even more. It may be hard to avoid buying in a hot housing market since there is no telling of when it will end. Don’t be afraid of the competition and let it deter you from wanting to buy a home. Take these tips to help you save money and stress during what should be a fun and exciting experience.
5 Expensive Mistakes that Will Cost You in San Diego’s Housing Market
Buying a Home Out of Desperation
It’s common for houses to be off the market before you even find a chance to view them. Unfortunately for some people, they will let this bring them down and will begin to consider homes that they normally wouldn’t consider. Buyers shouldn’t let desperation keep them from finding their dream home in their price range. Acting out of desperation can cause buyers to buy a home they normally wouldn’t, or to purchase something out of their budget, both decisions which may be regrettable soon after. Although it may be frustrating looking at house after house, use each research time and visit to give you more insight into what goes into the home buying process and housing market. This will also help you find out what amenities your future home also must include.
Once you have figured out what you want in your house and how much you want to spend, you should consider finding a REALTOR® to help you through the process. Find the right real estate agent for you that will help you as much or as little as you need.
Another mistake buyers make during their house hunting experience is hesitating to make an offer on a home they like. This can cause the home to be taken off the market before finding the opportunity to place an offer.
Before going to open houses, make sure all of your paperwork is up-to-date and that your loan approval is not expired. Ensuring you have all of this in place will allow you to make an offer the day of the open house if you want.
Ignoring San Diego’s Housing Market
It’s practically impossible to time the housing market when you are ready to buy a home. Instead, we recommend buying a home when it’s right in your life. Whether you have reached your down payment goal, your family is extending, or your career is moving in the right direction, that is what should determine whether or not it’s time for you to purchase a home, not if the market is right. Otherwise, you may be waiting for a long time, or the opportunity may pass.
You should still stay on top of the latest news happening in San Diego’s real estate market. Having a real estate agent can help you learn about neighborhood-specific information like how many days houses in the area stay on the market if you will face multiple offers, which properties move quickly, and the over asking price range you may be facing.
Not Understanding Your Budget
When it comes to knowing what you can afford, you will need to know exact numbers. You should have exact numbers of your income, monthly bills, and loan payments all added up to see what you can afford spending every month on a mortgage, HOA dues, property taxes and insurance. You may want to meet with a financial planner to find out about new homeowners programs that can save you money. It’s also important to budget in your savings, retirement fund, travel, and recreation activities that you enjoy so you can see what you can afford with all items in the big picture, not just debt.
Overpaying for your New Home
When the housing market is competitive, it’s quite common for multiple offers to be placed on the same house. This will result in a bidding war, that you will potentially lose if the price goes too high. Once you have lost so many bidding wars, it can be tempting to just pay more than what you budgeted for.
Before you take the plunge and overpay for a house, you should sit down with your real estate agent in San Diego to see if there are other houses in your range, or similar neighborhoods you haven’t considered yet.
Need a Real Estate Agent or to Find Your Next Home?
At Ascent Real Estate, we have a real estate agent for everyone. Let us know what you need, and we will help you the best that we can. Whether you are looking to buy or sell a home, one of our REALTORS® in San Diego is here to help you through every step of the process. Contact Ascent Real Estate today for more information.