We’re in the ultimate sellers’ market right now. If you’re a homeowner thinking about selling, you have a huge advantage in today’s housing market. High buyer demand paired with very few houses for sale makes this the optimal time to sell for those who are ready to do so. Whatever the move you want to make looks like, here’s an overview of what’s creating the prime opportunity to sell this summer.

High Buyer Demand

Demand is strong, and buyers are actively searching for homes to purchase. In the Realtors Confidence Index Survey published monthly by the National Association of Realtors (NAR), buyer traffic is considered “very strong” in almost every state. Homebuyers aren’t just great in number right now – they’re also determined to find their dream home. NAR shows the average home for sale today receives five offers from hopeful buyers. These increasingly frequent bidding wars can drive up the price of your house, which is why high demand from competitive homebuyers is such a win for this summer’s sellers.

Low Inventory of Houses for Sale

Purchaser demand is so high, the market is running out of available homes for sale. Danielle Hale, Chief Economist at realtor.com, explains:

“For most sellers listing sooner rather than later could really pay off with less competition from other sellers and potentially a higher sales price… They’ll also avoid some big unknowns lurking later in the year, namely another possible surge in COVID cases, rising interest rates and the potential for more sellers to enter the market.”

NAR also reveals that unsold inventory sits at a 2.4-months’ supply at the current sales pace. This is far lower than the historical norm of a 6.0-months’ supply. Homes are essentially selling as fast as they’re hitting the market. Below is a graph of the existing inventory of single-family homes for sale:

At the same time, homebuilders are increasing construction this year, but they can’t keep up with the growing demand. While reporting on the inventory of newly constructed homes, the U.S. Census Bureau notes:

“The seasonally‐adjusted estimate of new houses for sale at the end of April was 316,000. This represents a supply of 4.4 months at the current sales rate.”

What Does This Mean for You? 

If you’re thinking of putting your house on the market, don’t wait. A seller will always negotiate the best deal when demand is high and supply is low. That’s exactly what’s happening in the real estate market today.

When It Comes Down To It

As vaccine rollouts progress and we continue to see the economy recover, more houses will come to the market. Don’t wait for the competition in your neighborhood to increase. If you’re ready to make a move, now is the time to sell. Contact a local real estate agent today to get your house listed at this optimal moment in time.

This article originally appeared on Keeping Current Matters

You may also find very helpful: 7 Questions To Ask When You Interview Agents

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According to the Los Angeles Times, the actor customized the backyard during his time at the residence, which included the giant yellow and black Bumblebee replica, which can be purchased with the house.

Pictures are screen capture from: Redfin

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Every city has that one area where you would have been crazy to live in 50 years ago, but today it’s one of the more sought-after zip codes in town. College grads will spend practically their whole salary to rent (or buy, if they can manage it) a place there, local businesses make a fortune, and it’s the hot spot on a Friday night.

It’d be great to own a home in a place like that, but how do you spot an up-and-coming neighborhood before it gets too popular? 

Architecture

Up-and-coming neighborhoods usually aren’t full of new construction. They have an eclectic charm that comes from intricate designs, cute transoms over the doors, and wood beams that are older than your grandparents. These buildings are too beautiful to waste. Even if they’re unoccupied now, you can bet someone’s going to to take the time to revitalize them. 

Youths

Young people want to live where the action is and really live their youth to the fullest–and they want to do it in an up-and-coming neighborhood. They aren’t at a point in their lives where they’re worried about a good school system or if they’re sharing a wall with a business instead of another tenant. If they like a neighborhood enough, they’ll make it work.

Cool businesses

Think unique restaurants and bars and interesting art galleries and music venues. A really desirable neighborhood will have so much to do nearby that there’s not much reason to ever leave. When a few trailblazing businesses move in and start doing well, that might be a sign this neighborhood’s on the move. 

Walkability

Soon enough the neighborhood is going to be brimming with cool bars and coffee shops, farm-to-table restaurants, and other hangouts. There’s going to be a lot of great stuff densely packed together, and there’ll be no need for cars. Look out for neighborhoods that are either walkable now, or have the potential to be without a huge construction project. 

Solvable problems

Up and coming neighborhoods aren’t going to be perfect, but their problems need to be ones that can be fixed. If there’s a pig processing plant a half a mile down the road, no amount of renovation is going to be able to get rid of that smell. On the other hand, if the sidewalks are cracked and broken, that’s a solvable problem.

So, what now? Call your real estate agent (that would be me 😀) and ask to show you around neighborhoods that meet this description. You might be the first of your friends to discover the next cool neighborhood. Now it’s just a matter of deciding if you afford to buy a house there before it gets too expensive.

You may also find very useful: 4 Reasons People Are Buying Homes in 2021

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When you’re browsing sites like Zillow or Trulia, finding the right home for the right price can seem overwhelming. Try using these house hunting tips for first-time buyers and you’ll be in your new home in no time.

Make a plan and a list

It’s important to go into your home search with a long-term plan. Do you know how long you want to stay in your home? Will it be big enough if you decide you want to grow your family? Will it suit your needs just as well five years from now as it does today? A home is a big commitment, so it’s important that yours works well until you’re ready to move on.

Once you have your plan, it’s time to make a list. This list will be the roadmap your real estate agent uses to help find your perfect home. Make sure you have a good idea of what is a must-have and what you’re willing to compromise on. You should think about the:

• size
• number of bedrooms
• number of bathrooms
• location
• school district
• yard features
• price per square foot

First-time homebuying tip:  Get our guide to hunting for your first house.

Choose the right neighborhood

When it comes to real estate, it’s all about location. And the right location means different things to different people. What’s most important to you? Do you want to minimize your commute time? Would you love living 500 yards from your favorite bike path? Or are you ready to settle down and you want a nice cul-de-sac in a family-friendly neighborhood with a good school district?

Be sure to write this all down so you can tell your Relator. She might be able to find a hidden gem that you didn’t even know existed. Once you’ve narrowed down the neighborhood, we recommend visiting it a few times on different days and different hours so you can get a feel for how it might change from a Sunday afternoon to a Thursday night.

First-time homebuying tips: 

• Wish you lived in Stockton, CA before it was cool? Here’s how to spot the next up and coming neighborhood.
• Love hiking, craft breweries, and affordable housing? May we suggest Modesto CA?

Look for red flags

Keep in mind, if something looks too good to be true, it probably is. So, when you see that 5 bed, 3 bath house on Zillow for way less than anything else around it, you should approach with caution. The home also might be cheaper because it is a little bit of a fixer-upper, which is exactly what some people are looking for. Be on the lookout for these red flags and be sure to talk everything over with your Realtor.

• It looks rundown: A rundown property isn’t a deal-breaker, but just keep in mind there might be other issues to deal with later if the owner was negligent.
• You see standing water when it hasn’t rained recently: Poor drainage can cause a whole host of expensive issues with your foundation. It might also be a sign that the property is prone to flooding.
• Musty odors: A musty odor can potentially mean that there’s mold somewhere in the house. Mold can be expensive to get rid of and can cause a lot of health problems for you and your family.
• Water stains on the ceiling: A leaky roof is the last thing you want. It’s annoying, dangerous, and expensive to fix. If you see water stains on the ceiling, it might indicate a roof leak. But it also might have come from a one-time accident, it’s hard to tell without an inspection.

If you do see anything that looks suspicious, make a note of it and ask your home inspector to take a closer look at it if you do decide this is the house for you.

First-time homebuying tip: Remember to be picky! Don’t buy the first house you see.

Think outside the box

This is the best house hunting tip for first-time buyers. Remember, the right house for you might not be the standard three bed, two bath house. Sit down and really think about your wants and needs and where you see yourself in the next five to ten years. You might find that a downtown apartment or a one-room cabin in the woods is really more your style. There are so many options today that there’s really no one size fits all approach to finding the right house.

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A Fannie Mae survey recently revealed some of the most highly-rated benefits of homeownership, which continue to be key drivers in today’s power-packed housing market. Here are the top four financial benefits of owning a home according to consumer respondents:

• 88% – a better chance of saving for retirement
• 87% – the best investment plan
• 85% – the chance to be better off financially
• 85% – the chance to build up wealth

Additional financial advantages of homeownership included in the survey are having the best overall tax situation and being able to live within your budget.

Does homeownership actually give you a better chance to build wealth?

No one can question a person’s unique feelings about the importance of homeownership. However, it’s fair to ask if the numbers justify homeownership as a financial asset.

Last fall, the Federal Reserve released the Survey of Consumer Finances, a report done every three years, with the latest edition covering through 2019. Their findings confirmed that homeownership is a clear financial benefit. The survey found that homeowners have forty times higher net worth than renters ($255,000 for homeowners compared to $6,300 for renters).

The difference in net worth between homeowners and renters has continued to grow. Here’s a graph showing the results of the last four Fed surveys:

The above graph only includes data through 2019, but according to CoreLogic, the equity held by homeowners grew by $26,300 over the last twelve months alone. That means the gap between the net worth of homeowners and renters has probably widened even further over the last year.

Some might argue the difference in net worth may be due to homeowners normally having larger incomes than renters and therefore the ability to save more money. However, a study by First American shows homeowners have greater net worth than renters regardless of their income level. Here are the findings:

Others may think homeowners are older and that’s why they have a greater net worth. However, a Joint Center for Housing Studies of Harvard University report on homeowners and renters over the age of 65 reveals:

“The ability to build equity puts homeowners far ahead of renters in terms of household wealth…the median owner age 65 and over had home equity of $143,500 and net wealth of $319,200. By comparison, the net wealth of the same-age renter was just $6,700.”

Homeowners 65 and older have 47.6 times greater net worth than renters.

The Reality Is…

The idea of homeownership as a direct way to build your net worth has met the test of time. Contact me if you’re ready to take steps toward becoming a homeowner.

This article originally appeared on Keeping Current Matters

You may also find very helpful: How to buy a home with less than perfect credit.

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Today’s real estate market is one of the fastest-moving in recent memory. With record-low inventory in many market segments, we’re seeing multiple offers—and sometimes even bidding wars—for homes in the most sought-after neighborhoods. This has led some sellers to question the need for an agent. After all, why spend money on a listing agent when it seems that you can stick a For Sale sign in the yard then watch a line form around the block?

Some buyers may also believe they’d be better off purchasing a property without an agent. For those seeking a competitive edge, proceeding without a buyer’s agent may seem like a good way to stand out from the competition—and maybe even score a discount. Since the seller pays the buyer agent’s commission, wouldn’t a do-it-yourself purchase sweeten the offer?

We all like to save money. However, when it comes to your largest financial asset, forgoing professional representation may not always be in your best interest. Find out whether the benefits outweigh the risks (and considerable time and effort) of selling or buying a home on your own—so you can head to the closing table with confidence.

SELLING YOUR HOME WITHOUT AN AGENT

Most homeowners who choose to sell their home without any professional assistance opt for a traditional “For Sale By Owner” or a direct sale to an investor, such as an iBuyer. Here’s what you can expect from either of these options.

For Sale By Owner (FSBO)

For sale by owner or FSBO (pronounced fizz-bo) offers sellers the opportunity to price their own home and handle their own transaction, showing the home and negotiating directly with the buyer or his or her real estate agent. According to data compiled by the National Association of Realtors, approximately 8% of homes are sold by their owner.

In an active, low inventory real estate market, it may seem like a no-brainer to sell your home yourself. After all, there are plenty of buyers out there and one of them is bound to be interested in your home. In addition, you’ll save money on the listing agent’s commission and have more control over the way the home is priced and marketed.

One of the biggest problems FSBOs run into, however, is pricing the home appropriately. Without access to information about the comparable properties in your area, you could end up overpricing your home (causing it to languish on the market) or underpricing your home (leaving thousands of dollars on the table).

Even during last year’s strong seller’s market, the median sales price for FSBOs was 10% less than the median price of homes sold with the help of a real estate agent. And during a more balanced market, like the one we experienced in 2018, FSBO homes sold for 24% (or $60,000) less than agent-represented properties. This suggests that, while you may think that you’ll price and market your home more effectively yourself, in fact you may end up losing far more than the amount you would pay for an agent’s assistance.

Without the services of a real estate professional, it will be up to you to get people in the door. You’ll need to gather information for the online listing and put together the kind of marketing that today’s buyers expect to see. This includes bringing in a professional photographer, writing the listing description, and designing marketing collateral like flyers and mailers—or hiring a writer and graphic designer to do so.

Once someone is interested, you’ll need to offer virtual showings and develop a COVID safety protocol. You’ll then need to schedule an in-person showing (or in some cases, two or three) for each potential buyer. In addition, you’ll be on your own when evaluating offers and determining their financial viability. You’ll need to thoroughly understand all legal contracts and contingencies and discuss terms, including those regarding the home inspection and closing process.

While you’re doing all of this work, it’s likely that you’ll still need to pay the buyer agent’s commission. So be sure to weigh your potential savings against the significant risk and effort involved.

If you choose to work with a listing agent, you’ll save significant time and effort while minimizing your personal risk and liability. And the increased profits realized through a more effective marketing and negotiation strategy could more than make up for the cost of your agent’s commission.

iBuyer

iBuyers have been on the scene since around 2015, providing sellers the option of a direct purchase from a real estate investment company rather than a traditional direct-to-consumer sales process. iBuyer companies tout their convenience and speed, with a reliable, streamlined process that may be attractive to some sellers.

The idea is that instead of listing the home on the open market, the homeowner completes an online form with information about the property’s location and features, then waits for an offer from the company. The iBuyer is looking for a home in good condition that’s located in a good neighborhood—one that’s easy to flip and falls within the company’s algorithm.

For sellers who are more focused on speed and convenience, an iBuyer may offer an attractive alternative to a traditional real estate sale. That’s because iBuyers evaluate a property quickly and make an upfront offer without requesting repairs or other accommodations.

However, sellers will pay for that convenience with, generally, a far lower sale price than the market will provide as well as fees that can add up to as much or more than a traditional real estate agent’s commission. According to a study conducted by MarketWatch, iBuyers netted, on average, 11% less than a traditional sale when both the lower price and fees are considered. Other studies found some iBuyers charging as much as 15% in fees and associated costs, far more than you’ll pay for a real estate agent’s commission.⁶

In a hot market, this can mean leaving tens of thousands of dollars on the table since you won’t be able to negotiate and you’ll lose out on rising home prices caused by low inventory and increased demand. In addition, iBuyers are demonstrably less reliable during times of economic uncertainty, as evidenced by the halt of operations for most iBuyer platforms in early 2020.⁶ As a seller, the last thing you want is to start down the road of iBuying only to find out that a corporate mandate is stopping your transaction in its tracks.

If you choose to work with a real estate agent, you can still explore iBuyers as an option. That way you can take advantage of the added convenience of a fast sale while still enjoying the protection and security of having a professional negotiating on your behalf.

BUYING YOUR HOME WITHOUT AN AGENT

According to the most recent statistics, 88% of home buyers use a real estate agent when conducting their home search.¹ A buyer’s agent is with you every step of the way through the home buying process. From finding the perfect home to submitting a winning offer to navigating the inspection and closing processes, most homebuyers find their expertise and guidance invaluable. And the best part is that, because they are compensated through a commission paid by the homeowner at closing, most agents provide these services at no cost to you!

Still, you may be considering negotiating your home purchase directly with the seller or listing agent, especially if you are accustomed to deal-making as part of your job. And if you are familiar with the neighborhood where you are searching, you may feel that there is no reason to get a buyer’s agent involved.

However, putting together a winning offer package can be challenging. This is especially true in a multiple-offer situation where you’ll be competing against buyers whose offers are carefully crafted to maximize their appeal. And the homebuying process can get emotional. A trusted agent can help you avoid overpaying for a property or glossing over “red flags” in your inspection. In addition, buyer agents offer a streamlined, professional process that listing agents may be more likely to recommend to their clients.

If you decide to forego an agent, you’ll have to write, submit, and negotiate a competitive offer all on your own. You’ll also need to schedule an inspection and negotiate repairs. You’ll be responsible for reviewing and preparing all necessary documents, and you will need to be in constant communication with the seller’s agent and your lender, inspector, appraiser, title company, and other related parties along the way.

Or, you could choose to work with a buyer’s agent whose commission is paid by the seller and costs you nothing out of pocket. In exchange, you’ll obtain fiduciary-level guidance on one of the most important financial transactions of your life. If you decide to go it alone, you’ll be playing fast and loose with what is, for most people, their most important and consequential financial decision.

SO, IS A REAL ESTATE AGENT RIGHT FOR YOU?

It is important for you to understand your options and think through your preferences when considering whether or not to work with a real estate professional. If you are experienced in real estate transactions and legal contracts, comfortable negotiating under high-stakes circumstances, and have plenty of extra time on your hands, you may find that an iBuyer or FSBO sale works for you.

However, if, like most people, you value expert guidance and would like an experienced professional to manage the process, you will probably experience far more peace of mind and security in working with a real estate agent or broker.

A real estate agent’s comprehensive suite of services and expert negotiation skills can benefit buyers and sellers financially, as well. On average, sellers who utilize an agent walk away with more money than those who choose the FSBO or iBuyer route. and buyers pay nothing out of pocket for expert representation that can help them avoid expensive mistakes all along the way from contract to closing

According to NAR’s profile, the vast majority of buyers (91%) and sellers (89%) are thrilled with their real estate professional’s representation and would recommend them to others. That’s why, in terms of time, money, and expertise, most buyers and sellers find the assistance of a real estate agent essential and invaluable.

 QUESTIONS ABOUT BUYING OR SELLING? WE HAVE ANSWERS

 The best way to find out whether you need a real estate agent or broker is to speak with one. I am here to help and to offer the insights you need to make better-informed decisions. Let’s talk about the value-added services I provide when I help you buy or sell in today’s competitive real estate landscape.

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Today’s homebuyers are faced with a strong sellers’ market, which means there are a lot of active buyers competing for a relatively low number of available homes. As a result, it’s essential to understand how to make a confident and competitive offer on your dream home. Here are five tips for success in this critical stage of the homebuying process.

1. Listen to Your Real Estate Advisor

An article from Freddie Mac gives direction on making an offer on a home. From the start, it emphasizes how trusted professionals can help you stay focused on the most important things, especially at times when this process can get emotional for buyers:

“Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.”

A real estate professional should be the expert guide you lean on for advice when you’re ready to make an offer.

2. Understand Your Finances

Having a complete understanding of your budget and how much house you can afford is essential. The best way to know this is to get pre-approved for a loan early in the homebuying process. Only 44% of today’s prospective homebuyers are planning to apply for pre-approval, so be sure to take this step so you stand out from the crowd. Doing so make it clear to sellers you’re a serious and qualified buyer, and it can give you a competitive edge in a bidding war.

3. Be Prepared to Move Quickly

According to the latest Realtors Confidence Index from the National Association of Realtors (NAR), the average property sold today receives 3.7 offers and is on the market for just 21 days. These are both results of today’s competitive market, showing how important it is to stay agile and alert in your search. As soon as you find the right home for your needs, be prepared to submit an offer as quickly as possible.

4. Make a Fair Offer

It’s only natural to want the best deal you can get on a home. However, Freddie Mac also warns that submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Don’t make an offer that will be tossed out as soon as it’s received. The expertise your agent brings to this part of the process will help you stay competitive:

“Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.”

5. Stay Flexible in Negotiations

After submitting an offer, the seller may accept it, reject it, or counter it with their own changes. In a competitive market, it’s important to stay nimble throughout the negotiation process. You can strengthen your position with an offer that includes flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). Freddie Mac explains that there are, however, certain contingencies you don’t want to forego:

“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”

Reality Is…

Today’s competitive market makes it more important than ever to make a strong offer on a home. Reach out to your local real estate (I can help you) professional to make sure you rise to the top along the way.

This article originally appeared on Keeping Current Matters

You may also find very helpful: 12 First-Time Home Buyer Mistakes and How to Avoid Them

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Located in Stockton, California Bigworm’s Bakery and Deli is serving up donuts, croissants, sandwiches, burgers, spring rolls, tacos and so much more. This fun local spot calls themselves a Poly/Asian/Hispanic/American infusion.

Making some killer cronuts, this bakery is a neighborhood favorite. Their dulce de leche filled donuts with powdered sugar are amazing! Try a sandwich on their homemade bread, enjoy an order of their made from scratch uso fries (peeled in house), indulge in a breakfast sandwich with a donut bun, and power down a donut ice coffee.

You can share perfectly cooked glazed bacon, double cheeseburgers and chicken wraps with your friends and have a nice time here. At Bigworms Bakery & Deli, clients may order good cronuts, cinnamon rolls and apple fritters. 

This place is well known for its great service and friendly staff, that is always ready to help you. Prices are found average here. Expect the cozy atmosphere at this spot. Google gives it 4.8 so you can select Bigworms Bakery & Deli to spend a good time here. They offer a large variety of delicious food other than donuts.

Bigworm’s Bakery and Deli is one of my personal favorites. This is a definite must visit when you are in the area. Make sure to stop by!

See their complete GRUB HUB menu Here

Address:
8118 N. West Lane, Suite 125
Stockton, California 95210

Phone: (209) 451-3375

Hours:
Monday: 7:30 AM – 3:00 PM

Tuesday: 7:30 AM – 3:00 PM

Wednesday: 7:30 AM – 3:00 PM

Thursday: 7:30 AM – 3:00 PM

Friday: 7:30 AM – 3:00 PM

Saturday: 7:30 AM – 3:00 PM

Sunday: 7:30 AM – 2:00 PM

Follow Bigworms Bakery and Deli on Social Media:

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12 First-Time Home Buyer Mistakes and How to Avoid Them

Every year, first-time home buyers venture into the market and make the same mistakes that their parents, siblings and friends made when they bought their first houses.

But today’s novice buyers can stop the cycle. Here are 12 mistakes that first-time home buyers make — and what to do instead.

1. Shopping for a house first before a mortgage

It’s more fun to look at homes than it is to talk about your finances with a lender. So that’s what a lot of first-time home buyers do: They visit properties before finding out how much they are able to borrow. Then, they are disappointed when they discover they were looking in the wrong price range (either too high or too low) or when they find the right home, but aren’t able to make a serious offer.

How to avoid this mistake: Talk to a mortgage professional about getting pre-qualified or even preapproved for a home loan before you start to seriously shop for a place. The pre-qualification or preapproval process involves a review of your income and expenses, and it can make your bid more competitive because you’ll be able to show sellers that you can back up your offer. (See what a preapproval is and why it matters.)

Neal Khoorchand, broker-owner of Century 21 Professional Realty, in the South Ozone Park neighborhood of Queens, New York, pre-qualifies his clients before showing them properties.

“If you’re qualified for a one-family house for $500,000, we’re not going to show you a one-family for $600,000 — it would be a waste of time,” he says.

2. Not looking for first-time home buyer programs

As a first-time home buyer, you probably don’t have a ton of money saved up for the down payment and closing costs. But don’t make the error of assuming that you have to delay homeownership while saving for a huge down payment. There are plenty of low-down-payment loan programs out there.

How to avoid this mistake: Ask a mortgage lender about your options. You might qualify for a Veterans Administration or U.S. Department of Agriculture loan that doesn’t require a down payment. Federal Housing Administration loans have a minimum down payment of 3.5%, and some conventional loan programs allow down payments as low as 3%.

3. Not hiring a buyer’s agent

Some home buyers make the mistake of working directly with the seller’s real estate agent, who is obligated to secure the best price and terms for the seller. As a novice home buyer, you could be overmatched when negotiating with an experienced agent who’s working on the seller’s behalf.

How to avoid this mistake: Work with an exclusive buyer’s agent, who has a duty to work in your best interests. (See NerdWallet’s guide to finding a buyer’s agent.)

4. Using up all of your savings

If you buy a previously owned home, it almost inevitably will need an unexpected repair not long after. Maybe you’ll need to replace a water heater, repair a crack in the chimney or get rid of hidden mold.

“That’s a growing pain for the first-time homeowner, when stuff breaks,” says John Pataky, executive vice president of the consumer division of EverBank. “If they don’t have enough in back reserves, emergency funds, they find themselves in a hole quickly.”

How to avoid this mistake: Save enough money to make a down payment, pay for closing costs and moving expenses, and take care of unexpected expenses. This is easier said than done. But you can buy a home with a down payment of much less than 20%, allowing you to conserve your savings. (Find out how much down payment you need to buy a home.)

5. Ignoring a home’s drawbacks

A lot of first-time home buyers fall in love with one of the first properties they look at. They ignore the negatives of the house and its neighborhood.

But you can’t disregard the downsides forever. For example, you might think you’ll be OK with a long commute, but after a few months of spending too many hours stuck in traffic, you’ll wish you had bought a house closer to work.

How to avoid this mistake: Do two things. First, resolve to visit “10, 15, 20 houses” before making an offer, Khoorchand says, so you’ll be less likely to fall in love with the first or second or third home you look at.

Second, write a list of the attractive and the unattractive qualities of each house, and pay attention to each home’s downsides.

6. Being indecisive

The flip side of choosing a place too quickly is acting too slowly when you find the right home. In a market with more buyers than sellers, you have to move fast.

Khoorchand says he can talk all day about clients who “needed some time to think about it” and made an offer two or three days after viewing a house, only to discover that another buyer had swooped in and made a successful offer.

How to avoid this mistake: “Once you look at multiple houses, and you get a feel of the market and you know what the market is like and where the prices are at, and you see something you like, don’t hesitate to make an offer, because you and 10 other people will be interested in that same property,” Khoorchand says.

7. Overpaying for a house

First-time home buyers tend to pay more than experienced buyers would pay for the same house, according to research conducted by two economists with the Federal Housing Finance Agency. In their analysis of appraisal data from more than 1.7 million home sales, FHFA economists Jessica Shui and Shriya Murthy concluded that first-timers overpay by an average of 0.79%, which was nearly $2,200 per house, according to the data set they examined.

Shui and Murthy pointed to the inexperience of first-time home buyers. Real estate agents say newbie buyers let their emotions take over, too. “You tend to overlook potential negatives and only look at the positives of a particular house,” says Jim Murrett, president of the Appraisal Institute, an association of real estate appraisers.

8. Skipping the home inspection

In some markets, a lot of buyers compete for a small number of properties for sale. In these strong seller’s markets, buyers are tempted to waive a home inspection. It gives them a competitive edge over smarter buyers who wouldn’t dream of forgoing an inspection before plunking down hundreds of thousands of dollars for a home.

It’s a mistake to buy a previously owned home without an inspection because there could be expensive, hidden damage that you wouldn’t spot but an inspector would.

9. Underestimating the costs of ownership

After you buy a home, the monthly bills keep stacking up. This can come as a surprise if you’re not ready.

“It’s not just your mortgage payment,” says Seth Feinman, vice president of Silver Fin Capital, a mortgage brokerage in Great Neck, New York. “You’re going to have the oil bill, the gas bill, you’re going to have a cable bill, you’re going to have all these things that the bank doesn’t care about when qualifying you for a mortgage.”

Renters often pay these kinds of bills, too. But the new home could have higher costs — and it might come with entirely new bills, such as homeowner association fees.

How to avoid this mistake: Work with a real estate agent who can tell you how much the neighborhood’s property taxes and insurance typically cost. Ask to see the seller’s utility bills for the last 12 months the home was occupied so you have an idea how much they will cost after you move in.

10. Miscalculating repair and renovation costs

First-time home buyers are frequently surprised by high repair and renovation costs. Buyers can make two mistakes: First, they get a repair estimate from just one contractor, and the estimate is unrealistically low. Second, their perspective is distorted by reality TV shows that make renovations look faster, cheaper and easier than they are in the real world.

How to avoid this mistake: Assume that all repair estimates are low. James Ramos, owner of Re/Max Bay to Bay, a real estate brokerage in Tampa, Florida, recommends doubling the estimates to get a more realistic view of costs.

Seek more than one estimate for expensive repairs, such as roof replacements. A good real estate agent should be able to give you referrals to contractors who can give you estimates. But also seek independent referrals from friends, family and co-workers so you can compare those estimates against ones you receive from contractors your agent refers.

11. Applying for credit before the sale is final

Here’s why: The lender’s mortgage decision is based on your credit score and your debt-to-income ratio, which is the percentage of your income that goes toward monthly debt payments. Applying for credit can reduce your credit score a few points. Getting a new loan, or adding to your monthly debt payments, will increase your debt-to-income ratio. Neither of those is good from the mortgage lender’s perspective.

Within about a week of the closing, the lender will check your credit one last time. If your credit score has fallen, or if your debt-to-income ratio has gone up, the lender might change the interest rate or fees on the mortgage. It could cause a delay in your closing, or even result in a canceled mortgage.

How to avoid this mistake: Wait until after closing to open new credit accounts or to charge furniture, appliances or tools to your credit cards. It’s OK to have all those things picked out ahead of time; just don’t buy them on credit until after you have the keys in hand.

12. Missing the first mortgage payment

Sounds hard to believe, but it’s not rare for new homeowners to be late with their first monthly payment, or to miss it altogether, says Neil Garfinkel, a real estate attorney with Abrams Garfinkel Margolis Bergson in New York City. “Maybe you didn’t fully understand the process. You thought it was being auto-deducted but it’s not being auto-deducted. You didn’t get the bill in the mail. Whatever. Those first couple of payments, from a credit perspective, are really, really important,” he says.

How to avoid this mistake: At the real estate closing, ask when the first mortgage payment will be due and write it down. Ask how you will receive notice that the payment is due: A coupon book? A letter in the mail? An email or a text? Then, look out for that notification.

In many cases, the mortgage servicer — the company that bills you, collects the payments and makes sure the principal, interest, taxes and insurance all go to the right places — will mail you a welcome letter with these details.

The article 12 First-Time Home Buyer Mistakes and How to Avoid Them originally appeared on NerdWallet.

You may also like to read: 7 Questions To Ask When You Interview Agents

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Ever dream of living in the luxurious seclusion of your own private island compound surrounded by lush scenery? Now you can — for $8.25 million dollars.

A 29-plus acre estate in the San Juan Islands, northwest of Washington state, features four homes and 4,000 feet of waterfront access, the listing said.

If you’ve ever wondered what owning your own private island attached to a private island is like– here’s your chance. There is simply nothing like this property in the San Juan Island archipelago-it truly feels like your own island. 

This 29+ acre Blakely Island estate is a sanctuary and a compound with four homes, mature grounds, and spectacular views. 4,421 feet of waterfront is unparalleled, and the property has deepwater, covered moorage for two yachts up to 110′ and 60′. 

Though largely wooded with manicured pathways, there is also a large meadow begging for a few golf holes. The island is accessible by plane or boat with its own marina, too. Privacy. Exclusivity .And an island on an island??? What else could you want?!

The island is accessible by plane or boat.

The property, known as Blakely Island even comes with it’s own marina that can house up to two yachts. “The privacy, the views and the proximity of the homes to the water makes it feel like you’re a part of the sea and the islands,” said the owner, Janet Taggares, to Masion Global. 

The compound is composed of four houses, each with their own names: The Caretakers’s House, the Hill House, the Duplex and the main houses, known as the Cook Shack.  “The area is private and quiet and abounding in flora and fauna,” Taggares said. “We are seeing interest from folks with large yachts, those looking to create a family estate for many to come enjoy and people who want to escape the craziness of the current state of affairs on the mainland.” 

This is a true one of a kind property.

You may also like to read: LeBron James lists elegant California mansion for $20.5 million.

Pictures are screen capture from: ENGEL & VOLKERS SEATTLE EASTSIDE

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