Murrieta and Temecula, CA - Real Estate Home Buying Tips - Part 1

[gvydge...@yahoo.com]

Buying a Temecula or Murrieta home in a buyer's market can actually be
very challenging for all the exact reasons you might think it will be
easy. Remember the goal is to get the best home that meets your goals
and represents the best investment for your family. What are some of
these buyer market benefits?
- Ultra high supply of home listings- Good ability to negotiate price
and terms- High competition between sellers
No matter how you slice it those bullet points are a great thing for
buyers, right? Believe it or not this can cause a lot of hesitation
and consternation for buyers. How so you ask? Let's say you find the
ideal Temecula home in a wonderful neighborhood on a perfect cul-de-
sac street and filled with lots of upgrades. You love the layout but
the owners are stuck on price and just two streets away is the exact
same floor plan, not as nice of a home in terms of lot and upgrades,
and the street isn't a cul-de-sac but the price is 30k less. And then
just another street away is another model match with no upgrades,
stained carpet, and priced 15k less.
Now you think how nice it would be to get the first home for less but
the seller's won't budge and honestly it is priced fair when
considering all variables. In fact, since it is a down market, it is
lower priced then it has been in years. But were are in a buyer's
market and it is galling to pay 45k more! And with just an additional
10-15k, you feel like you could rehab the cheapest model match and
still have a nice home. So, after a lot of soul searching you make an
offer on the lowest model match and figure you will fix it up. By
paying 45k less and putting in 10k, you save 35k in theory for the
same neighborhood and house just a few streets away.
This sounds like a great idea but the problem is that once you move
in, you have a hard cost to you to make repairs versus a simple
increased payment. So you get a equity loan or tap your savings and
put 10k into the property and get all new carpet, paint, and some tile
in the bathrooms. That's it and you have burned all that cash. You
also live there for the average of 3-5 years and have "elbow grease"
projects every weekend. While fun at first, this gets old fast and you
are tired of cars buzzing through the street and constantly wish you
were on the cul-de-sac. You also feel uncomfortable inviting people
over until you get it all "fixed" and thus are not enjoying the house
as much as you planned.
This may sound worst case scenario but I have seen this several times
this year alone. The real sad part is 35k (45K - 10K) more would have
cost an average of $210 more a month. Over 5 years that will finally
equal the 10k you put into the bargain property and you have had to
work every weekend, haven't enjoyed the house, never invited people
over, or even had a weekend BBQ!
Also, no matter what you put into the home, you can never equal the
home with the better lot, upgrades, and incredible cul-de-sac street.
That could be your kids playing neighborhood basketball safely or your
family enjoying a safe block party. After 3 years you have grown tired
of worrying each time your kids go out to play due to drive through
traffic and decide to sell the house. Guess what? The market is still
a tough and people are very picky, looking for that perfect, upgraded,
cul-de-sac home you passed on!
This article is an example of a buyer seeing high inventory and
pricing deals but losing common sense and thereby making a bad
decision. How many times have you seen people get caught up in major
sales and buy something they don't even want because it was such a
good deal? This is happening a lot right now and it gets worse if a
person waits three years and finds they can't afford to sell the house
at that time. Then they continue to be stuck in a home that they do
not like when the could of really enjoyed and been proud of a home
they purchased in the first place.
Looking for a diamond in the rough is savvy. But don't forget your
goals amid all the Temecula and Murrieta home listings and price
drops. Don't be disappointed if someone won't come down in price. Just
make sure your Murrieta or Temecula real estate broker does the
necessary property research and enables you to discern a fair or even
aggressive price for that perfect
home.
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