Choose a Realtor who belongs to the Board of Realtors. Your agent should be knowledgeable in the neighborhoods and types of properties that interest you. Your agent can guide you through the intricate and sometimes frustrating process of buying a home. We will provide you with up-to-the-minute market data, information about local and state ordinances and we will negotiate a transaction that is best for you. Our experience with the sale of thousands of properties will ensure the satisfaction of all parties involved in the transaction.

What a Real Estate Professional can do for you, the Buyer:

• She knows “what’s on the market”, including up-and-coming sales.
  
• She helps you determine how much home you can afford, how you can acquire the down payment and what financing options are available to you.
  
• She finds the best home that best suited to your needs.
  
• She acts as liaison between you and the Seller to present offers, counter-offers and negotiates until an agreement is reached in your best interest.
  
• She has no emotional ties to the home. So she can help you with unbiased opinions and suggestions.

Get Pre-Approved

Select a mortgage consultant who can guide you through the many pitfalls of obtaining and securing a loan for your property. They will check your financial information that can include credit reports, employment verification, funds on deposits, etc. Also, a knowledgeable mortgage consultant can show you ways to improve your credit scores and guide you in eliminating errors from your credit report.

Shopping for Properties

So many houses, so little time. It is a good idea to think about what you want before you start looking. The Bay area offers a diverse mix of single family homes, condos, townhomes, etc. One you have decided on a neighborhood, ask you Realtor about transportation, schools, restaurants and the best coffee houses in the area.

The Purchasing Process

Once you have found the ‘ideal’ home your agent will write the offer on it. This will take about 2.5-3 hours. Ask your Realtor to explain the purchase contract in detail, and do not be afraid to ask as many questions as necessary. Leave no stone unturned. Your agent will prepare a presentation to highlight the strength of the offer and you the buyer. This will be presented to the seller and his or her agent. At this point the seller can reject accept or counter your offer. Stay calm even when the stress level rises. Traditionally sellers feel they are selling at a much lower price and buyers feel they are paying more than they should. The first rule of negotiation is to make sure everybody feels they come out a winner. This means both sides need to be flexible. It is customary that once your offer is accepted, you are allowed a certain period of time to retain various inspections for the property; this is referred to as an inspection contingency. Another contingency is the loan contingency, allowing you time to obtain loan commitment from a lender. Close of escrow period is usually 45-60 days.

Closing Costs

The escrow officer will provide you in advance with the estimated costs of closing the deal. These include; Loan charges, Fire insurance, Taxes, Homeowner dues, Escrow fees, Recording fees, etc. You as a buyer will have to allocate additional cash reserves for covering these costs.

Getting Ready for the Move

With a little planning up front, your move to your new home can be can surprisingly simple. Make sure you notify the following entities about your address change; Post Office, Charge Accounts, Credit Cards, Subscriptions, Friends, Relatives, Banks, Utilities, Medical, Dental, etc. Don’t forget your plan for transporting the most important members of the family, your pets. They can be poor traveling companions if unhappy…

Ten Dos and Don’ts for first time Buyers

1. Get your finances in order. Review your credit.
2. Don’t wait to get a loan. Talk to a professional mortgage consultant to get pre-approved before you start searching for a home.
3. Make sure you have enough money to cover your down payment and closing costs.
4. Think long-term. Are you looking for a starter home with the idea of moving up in a few years or plan to stay long term? Your decision will affect the types of mortgages that will suit you or you will qualify for.
5. Before you start looking, decide what specific features are a “must have” in your future home. Make a list and prioritize.
6. Be selective, but don’t be unrealistic. There is no such thing as a perfect home.
7. Don’t ask too many people for opinions. It will drive you crazy. Instead, select one or two trusted individuals you feel you can turn to in case you would need a second opinion.
8. Decide when you could move. When does your lease expire? Could you sublet? How tight is the rental market in your area?
9. Obtain the necessary inspections to make sure the home you are about to purchase is in sound and good condition (roof, plumbing, foundation etc.)
10. Ask your agent to obtain a warranty from the seller to cover defects in your new home within one year.

What Influences HOME VALUES

What is the amount this home will sell for on an open market in its current condition? The main purpose is to estimate the property's Fair Market Value based on external (socio, economic, political, legal etc.) and internal factors (condition, use, style, quality)

Often, desirability is determined by the quality of schools, the availability of jobs or access to quality healthcare.

External factors that can affect property values

Most of us heard of the term the three most important things in real estate are location, location and location. The single most important determinant in appraising a property's market value is its location. The neighborhood quality and its influence on the property will affect the price. The neighborhood is defined as a cluster of properties with relatively similar land use and value. It is an area that is part of a larger community and subject to common physical, political, social and economic influences.

Lenders are particularly interested in the profile and quality of a given neighborhood. The profiling will consider such elements - beyond location - as; Built-up (% of improved), Growth rate (rapid, stable, slow), Property values (increasing, stable, declining), Demand (shortage, balance, oversupply), Predominant occupancy (owner, tenant).

The quality of a neighborhood depends on: Employment stability, Convenience to schools, shopping, public transportation, recreation, police, Fire protection, Adequacy of utilities (cost, quality water etc.).

The economic strength of a given neighborhood is judged by the income levels of the people living in that area. Social influences include commonality of interests, size of families and age of children, life-styles, values and standards of the occupants, percentage of ownership and the level of community involvement.

Political influences can be summarized by regulations that enhance or reduce value (rent control, taxes, special assessments, zoning, property taxes etc.).

We should also consider the maintenance and condition of the houses in an area. Do homeowners take care of their homes? Homogeneity is always a plus when it comes to evaluation. A neighborhood has a better reputation where the homes are generally in the same price range or have the same age. Also, districts with three lined winding streets and cul-de-sacs carry higher values than areas that are laid out in a so-called grid pattern.

Adverse circumstances can affect the desirability of a home. Close proximity to one or several major freeways, navy base, a home that sits right under the flight path of a major airport especially with lots of overnight cargo flights, or a chemical refinery nearby can adversely influence the price buyers are willing to pay for a property.

Trend analysis is also an important component of valuation when Buying or Selling a home. This is a very important factor in ascertaining the future value of a property and the neighborhood's desirability where this home is located. Every neighborhood follows a "development lifecycle". In any city different neighborhoods have different maturity levels. When we see new constructions or remodeling taken place, this usually means an upward movement in the local economy. Jobs are created, people are moving in, buyers are looking to purchase their homes and property values are going up. This neighborhood is improving and growing. A stable neighborhood is a part of town where few new home constructions can be seen, but existing homes are well maintained, the streets are in good condition, the local businesses are well established. This area is mature and provides a generally stable feeling about the neighborhood. On the other hand, when the economy is in a downspout that can affect the local neighborhood also. Certain industries suffer from downsizing or close down that will hit the local job market. As a result of all these foreclosures are showing up, property values decline and fewer buyers are looking for homes in the neighborhood. Such area can go through a short or long term decline phase. These factors should be considered very carefully when Buying or Selling real estate in a given geographic area.

Internal factors that can affect property values

The floor plan of a property greatly influences the value. For example, some layouts provide access to bedrooms through the kitchen only or some baths open into the kitchen directly. Homes in the 1930s were built this way. Also, there are homes - in desirable neighborhoods - with a few thousands sq feet living space but only one bedroom. Working appliances can be rather outdated, unappealing, less sophisticated. All of these can be interpreted by buyers as functional obsolescence which in return will affect marketability. Moisture, mildew, mold are common problems in certain areas where the air is damp or where the area is woodsy. Today, buyers are very sensitive about these issues, even lawyers and insurance companies get involved. Structural problems such as a leaky roof, cracked foundation or walls, floor settling are either deterring factors for buyers or major bargaining chips when it comes to offering a purchase price. These are signs of physical depreciation.

The Bay Area Real Estate Market in the Next 5 Years

Our Bay Area has the most expensive housing market in the U.S. The constant influx of immigrants and others who want to live here makes this place a very desirable location. Between 1980 and 2000 California’s population grew by about 11 million. At the same time the Bay Area is short of about 60,000 housing units - with the most chronic housing shortage in San Francisco. So, the demand is there – if the shortage is not lifted - prices will increase significantly. California continues to build insufficient amount of housing mostly by choice. There are several reasons for this:

• Limiting Growth. Bay Area cities often allow only a limited number of units to be built and it does not bring in enough revenues in taxes to support the local police, fire, and other services. Commercial development on the other hand will generate sales taxes.
• Control of Land. Every city sets its own controls, sometimes to the expense of the whole region. Their policies control the land use to protect homeowner’s wealth.
• Scenic Beauty. Residents are determined to protect the beauty of the environment and this attitude has contributed to a 30 years long anti-growth atmosphere. Large areas have been set aside by choice for open space or parks.
• Proposition 13. City and county revenues have been dramatically dropped since this law came into effect. Municipalities are forced to come up with creative revenue financing and this had a major impact on developer fees.
• Strict Environmental Review. California has a lengthy process to review the impact of new developments on the environment. This in return ties up builders’ money longer and this increases the risk involved.
• Strict Construction Laws. In California homeowners are allowed to sue insurance companies and builders up to ten years over construction defects. As a result of this, developers stopped building as many affordable condos and town-homes as they used to. In fact, production of such homes has dropped by 90% since 1994.
  

These facts affect not only current but future housing market conditions as well.