Home Buyer's Remorse: 6 ways to Avoid It

               You won the bidding war for a new home.  Excited! You start the process.  

As you start the loan paperwork and home inspection, you begin to question your decision.  Is it the right time to buy?  Did you choose the right home?  The right neighborhood?   You have a sinking feeling as you move forward.  As you near the end of the sale and see the loan numbers in print, you begin to wonder if you will be able to afford the home after all?   This sinking feeling is called Buyer's Remorse.                                                                                                                                  

Research shows that 61% of buyers wish they had done something different in the process of buying their home.  First time home buyers have an even higher incidence of second thoughts.  

Here are some ways to avoid Buyer's Remorse: 

• Educate Yourself in the Home Buying Process.  If you haven't purchased a home before, you will want to read everything you can and talk in detail to an experienced Realtor about the process.   Listen to family and friends and know how to avoid pitfalls. 
• Know why you are buying a home.  Every home will have some kind of problem.  Even new ones typically have a 10 year contractor's warranty for issues that arise.  If you are moving for a job, moving closer to children or you are outgrowing your present home, keep reminding yourself of why you are buying a home.    
• Budget.  Know what you can afford in a monthly payment prior to setting up to look at homes.  On your first home purchase, you may need to settle for a condominium, townhome, or a mobile home.  While it may not be what you dreamed of, you just want to get on the bus.  Nothing worse than finding a home you cannot afford.  Be preapproved by a lender.  Find out what the monthly payment will be and if fits into your budget.  Know what the closing costs will be.  Closing costs are separate from your down payment.
• Have Realistic Expectations.   Make a must-have list of no more than 3 things that you must have in a home.  Understand the market and where you can negotiate.  Understanding the issues or needed repairs with the home and know which ones are pressing and need to be fixed right away or can wait.  Know which ones are costly and require some budgeting to save up money. Be Patient.  Everything will not be perfect right away.  Overtime you will make the home you love. 
• Look for the Potential.  Sometimes a home is in less than perfect condition will be more affordable and have less competition.  Look beyond the flower wall paper, clutter, or dirty carpet and know with a little bit of elbow grease and paint, these can be fixed.    Envision your new landscaping and furniture in the home.  
• 
  Location Location Location.  While you can fix a lot of things in a home, you cannot change the location and it will impact the resale value. Research the community you are moving into.  Know if it is a busy street or if there are any plans to do major building nearby.  Visit the area on a weekend,morning, and evening, and meet the neighbors.  Neighbors will always share the issues with you. 

While you may still second guess your decisions, these 6 suggestions will help you to make a more confident home purchase.  

5 Tips on Successful Multiple Offers

As you search around the streets, you may notice there are not as many homes up For Sale as usual. In most parts of San Diego the inventory is down from normal.  As the number of homes decline, the law of supply and demand kicks in leading to more multiple offers. So what are the secrets to winning a bid on a home where there are multiple offers? 

1. Use a Realtor®. Many think they can find properties online and don’t need help. But in truth, many of the property websites that consumers use have a 48-72 hour delay. A Realtor can locate new listings and represent you in the purchase of a home. 

2. Don’t delay. When you find the right home, there will be other buyers out there feeling the same thing. Get your complete offer in as soon as possible. The offer must include a loan preapproval and the Proof of Funds. 

3. Don’t low ball the property. Using the comparable properties prices, determine the fair market value and give your highest and best offer. If you are buying the home with a loan, the home will be appraised to make sure that you are not paying too much for the home. When the market prices are climbing, you can offer a little more than the comps. However, if you are too high, you may have to renegotiate the difference between the appraisal and your offer. 

4. Factor in Closing Costs. If you need to have closing costs, you are best to bring up the price up to make up the difference. So at the end of the day, the seller still nets a fair price. 

5. Include a letter explaining why you would make a better buyer. Some people include mini biographies with family or individual photos. Any information that might emotionally influence the seller to accept your offer over another will help your position. 

With the use of these tips, hopefully you can succeed in a more competitive market and win the home of your dreams. 

 Virginia Hall ABR, CRS, e-Pro, GRI, SFR 

DRE #01409760

San Diego East Foothills Keller Williams Realty 

DRE #01889763

VirginiaHall.com 

Direct (619)258-8585

3 Things You Should Consider When Downsizing in Your Golden Years

For the most part, seniors see their twilight years as a time of uncertainty and scary changes. However, it’s also a time for new opportunities. Changes can be made less scary and more geared toward improving your lifestyle, while uncertainties can be alleviated with a good game plan. This can be accomplished with downsizing. 

Now, downsizing can be quite an emotional ordeal, especially if you are unprepared. As such, the key to making downsizing easier and less stressful is to break down what seems to be a gargantuan task into the following small-sized components.

Your finances 

Of the many perks of downsizing, the financial benefits are probably the most welcome. As you retire and transition toward a fixed income, you will find that you really don’t want to be saddled by too many bills and expenses. Not only that, but 

you may also want to redirect your income into more worthwhile pursuits like travel and recreation.

 With these in mind, your downsizing efforts should start with an honest assessment of your financial situation and making adjustments accordingly.

Your home 

There’s little doubt that your home demands most of your income, not to mention energy. With utility bills, maintenance costs, property taxes, and other myriad expenses to consider, continuing to live in your current home may turn out to be more trouble than it’s worth.

It’s no wonder, therefore, that many seniors are choosing to sell their homes in favor of downsizing. And with homes in Santee currently selling at a median price of $598,500 this could prove to be a lucrative choice that not only guarantees that you’re well taken care of in your golden years, but that you also get to enjoy them.

 Another option that you should consider when you’re downsizing is to rent out your home. This can also be quite lucrative as it generates earnings that you can rely on to supplement your fixed income in retirement. The downside is life as a landlord can be quite demanding. You have to find and vet tenants, stay on top of maintenance, and make sure that mortgage payments and property dues are up-to-date. There are, of course, ways to make this easier on you, but they invariably translate to additional costs. So with such concerns in mind, renting out your home, although viable, is definitely not an option for everyone. 

Of course, you can always pass on the family home to your children. However, this option also comes with its own risks. In fact, it’s important to do your due diligence before handing over the deed and the keys to a loved one as this very act could lead to a host of tax issues. There are ways around it, though, so make sure that you know all your options before making this decision.

Your possessions

Making the decision to downsize and leave your home in favor of a more cost-effective and senior-accessible one inevitably means parting with the many possessions that you’ve accumulated throughout your lifetime and the memories associated with them. For many seniors, letting go can be the most difficult part, especially on an emotional level, which is why it’s important to see this not as a necessary evil, but as a meaningful step toward what could be the best years of your life.

You can make this process less stressful by not rushing yourself and tackling the task systematically. As a rule of thumb, anything that hasn’t been used in the last year or so can be given away or sold, while heirlooms and mementos can be passed on to family members. Of course, don’t forget to keep the most special ones for yourself to take with you to your new home.

Remember that when you downsize, you are essentially closing a chapter of your life. Yes, there is room for grief, but know that there’s even more room for growth. So take it one step at a time, slowly but surely, and before long, you’ll be enjoying the life that’s waiting for you.

Compliments of Jim Vogel

Image via Unsplash

Your No Fuss Resource Guide to Downsizing Your Home

 

Moving to a smaller home can free up more time to enjoy your retirement. Before you can kick up your feet you’ll need to manage your downsizing move from start to finish. This includes figuring out how to find a home that fits you and figuring out what to do with all of the things that just won’t fit into that new home. If you need some help planning your move, this handy list of resources can keep you from feeling like you’re in over your head.

 Finding Your Perfect Retirement Home

Before you start planning your move, you need to find your perfect new home.

 

●     Check out the tips from the Talkin Real Estate blog first.

●     Then find yourself a reliable and trustworthy real estate agent.

●     You should also determine how much a new home is affordable for you.

●     Make sure your agent knows you want to age in place.

●     Or maybe you’d prefer to downsize into a senior community.

 

Planning Your Safe and Stress-Free Move

Moving can be stressful and even hazardous but not with the right planning.

 

●     You may also want to print out a detailed moving checklist.

●     Know where to get free or low-cost moving supplies, like boxes.

●     Also know how to pack your stuff so it doesn’t get broken or lost.

●     Budget for professionals if you want to save yourself the hassle and stress of moving day.

●     Or you could even think about hiring a senior move manager.

 

Decluttering and Organizing Your Belongings

Decluttering can feel overwhelming so try to start this project ASAP.

 

●     Take it room-by-room when you are decluttering your home.

●     But know that decluttering can be an emotional process.

●     You may need help letting go of more sentimental clutter.

●     Then you can toss out or possibly donate items you don’t need.

●     A storage unit can help keep your new home from getting cluttered.

 

A smaller home doesn’t have to limit your retirement. In fact, it should give you more freedom and flexibility. Just be sure to use this guide to keep your move organized and stress-free.

 

Photo Credit: Rawpixel

Compliments of Andrea Needham

Avoid Foreclosure--There is Another Way

The COVID-19 Pandemic has thrown many people into financial disaster with job loss and businesses going under.  While the late mortgage notices pile up, many homeowners bury their heads in the ground.  In denial, they allow their homes to go into foreclosure. There is another way.  Home owners need to stand up during the hard time, taking the bull by the horns.   

First, owners should be talking to their lenders explaining their situation.  Those impacted by COVID-19 should check with their cities to apply for CARES ACT funds provided by the state to prevent rental eviction and mortgage foreclosure.  For the City of Santee and El Cajon check out this website for more information.  

At this time, most people have equity in their homes due to the rise in home prices from the limited home inventory.   In this case, it is best to cut your losses and sell rather than let the bank foreclose and lose the remaining equity. Put the proceeds in savings and save for when things are better financially.  There will come a time to buy again. 

But then there are some out there, where the owner owes more on the house then the home is worth.  Known as a "Short Sale".  A short sale should be called a Short Pay.  The bank loses the difference between what you still owe and what it sells for.  Those facing Short Sales and Foreclosures should always consult their lawyers and accountants before listing their homes because there could be tax consequences. 

While they are called "Short Sales", it is the furthest thing from a short process.  It takes anywhere from  6 weeks to 6 months once an offer is accepted.  After the seller provides proof of their financial hardship which includes a letter of hardship explaining why they can't make their payments anymore, as well as the bank reviews their bank statements, tax returns, and retirement accounts.  Once the bank determines they will allow the short sale, they will order an appraisal to insure the agreed upon offer is reasonable.  

Even though a short sale and foreclosures impact your credit scores, in reality, the short sale shows creditors that the seller took responsibility for the problem and it will impact your credit for normally 2 years versus foreclosures impacting your credit for up to 7 years.  These time frames vary depending on the lender, credit score, down payment, and the type of loan. 

"According to FICO, if your credit score is 680, a foreclosure will drop your credit score on average to 85 to 105 points.  If your credit score is excellent at 780, a foreclosure will drop your score by 140 to 160 points.  In other words, the higher your credit score the more it will get smashed!" says financialsamurai.com

 

The last thing people in financial crisis want to do is spend more money on a sinking ship. However, when selling a short sale it can actually get multiple offers when the home is clean and free of clutter. When there is trash thrown about and the weeds are growing out of control, buyers have a hard time seeing the potential.  Hire a qualified agent who has handled short sales before and who you can trust to guide you through the emotional and challenging process.

--Virginia Hall

    San Diego East Foothills Keller Williams Realty

    (619) 258-8585

For more information go to  VirginiaHall.com

How to Keep Your Home Primed for Last-Minute House Hunters

                                Image courtesy of Unsplash

When you put your home on the market, you want to avoid turning away house hunters whenever possible. You just never know when that last-minute call will be the one you’ve been waiting for. Here’s how to keep your house in prime condition so you never have to turn away a tour.

Pare Down Belongings

If you are struggling to figure out how, exactly, to clean and declutter, these links have some practical advice that can get you cleared out in no time.

●    Declutter every nook and cranny

●    Part ways with extra stuff

●    Store surplus necessities discreetly

●    Move boxes and extra furniture offsite

Set a Great Stage

Your home’s appearance is more important than you might think. From making it a welcoming environment to showcasing it from the street, this is how to set the stage for selling success.

●    Create a welcoming atmosphere

●    Give kids’ rooms special attention

●    Don’t ignore curb appeal

●    Hire out for a deep clean

Address Daily Details

Unless your home sells on day one, you have to pay special attention to how it looks until

you’ve accepted an offer. Here are some ways to do just that without adding stress and strain to

your day.

●    Gather tools for quick tidy-ups

●    Review the big picture

●    Get your kids involved

●    Clean before you walk out the door

Getting a house ready to sell can be nerve-wracking. However, with a few smart strategies, you can take last-minute calls in stride. Do some paring down, clean thoroughly, and tidy up daily, and soon you’ll get that offer you’ve been waiting for!

Compliments of Alice Robertson