Danielle Lazier

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Insider Tips for San Francisco First Time Buyers

Insider Secrets for San Francisco Bay Area First Time Buyers – A Must-Read for ALL Prospective Home Buyers

Trulia published a very helpful blog post about the process of buying your first home. I devote a lot of blog-time to first time home buyers in San Francisco because helping you is a particular passion of mine. My impression is that the more information and insight you get up-front, the more you understand what to expect and when, the more enjoyable and successful your home purchase will be.

Here are the highlights but please read the entire post on The Suprising Insider Secrets for the 5 Stages of Buying Your First Home.

The 5 Stages of Buying a Home per Trulia Advice that, of course, we agree with! (Note my personal emphasis in parenthesis. Kind of rhyme intended.)

Stage One: Deciding Whether It’s The Right Time to Buy.
Insider Secret: (Whether you are in Bernal Heights, Noe Valley, or Pacific Heights,) the market is the least important factor you should consider when deciding whether and when to buy a home.

Stage Two: Getting Pre-Approved (at the beginning of your house hunt).
Insider Secret: Working with a mortgage broker referred by your real estate broker or agent may save you money.

Stage Three: House Hunting
Insider Secret: “Distressed” doesn’t always equal “discounted” – in some cases, a “regular” sale can be a deeper deal. (And to this that the majority of so-called short sales will never close escrow. We work in the distressed home market & have negotiated plenty of short sales, foreclosures and bank-owned REO properties. We can spot the situations with the best and worst chance of working out for the buyer.)

Stage Four: Negotiations
Insider Secret: Your family and friends can cause you to lose your dream home.

Stage Five: Escrow, Inspections and Underwriting
Insider Secret: It’s critical that you attend your home inspections. (And have them! With very few exceptions, we recommend that a buyer have their own professional home inspection.)

More posts related to San Francisco first time home buyer tips & advice:

• 10 Things to Remember When Buying a Home
• The Process of Buying a Home in San Francisco, Specifically
• 2011 Home Buying Resolutions
• Loan Preapproval Process – What documentation is needed for a home loan application
• How Many Homes Should I See Before Making an Offer?
• Loan Preapproval Before Open Houses
• A Brief History of the 30 Year Fixed Rate Mortgage

Tags: 1st-time buyer, First Time Buyer, first-time home buying, trulia

Want the lowest interest rate when buying your first home in San Francisco? Don’t do these things.

When it comes to buying a home, there is one word that becomes more important than almost all others: CREDIT.

Unless you just cashed out your Google stock (and we’re an early hire), you’ll probably need to get a home loan in order to buy your first home in San Francisco. As a San Francisco first time home buyer, in order to get a mortgage with the lowest interest rate and the best terms, you’ll need to have CREDIT, and good credit at that!

Let’s say you have good credit*. You’ve done the right things, some of which may seem illogical…

Side note: For example, did you know that in order to have good credit, you need to actually have some debt (and pay it regularly and on-time)? Over the years, I have helped more than a few clients who thought that by staying credit card and debt-free, buying what they need in cash or with their debit card, that they were doing the financially responsible thing…and that their reward would be the so-called good credit of the debt-free. Think again. If you don’t have an unsecured credit card, go get one. You don’t have to use it regularly and certainly, this is not an invitation to go crazy shopping at Barneys. Think always, “What would Suze Orman do?” But, go get a credit card, use it, and then pay it monthly and on-time.

Back to the topic at hand.

You have good credit.
You’re employment is relatively stable.
You saved a down payment.
You are ready to buy your starter home in Bernal Heights or your designer condo in Mission Dolores.
You got preapproved for a great home loan through a local, reputable mortgage broker or banker.
You’ve chosen your SF Realtor.You went house-hunting.You made an offer.You are now in escrow.
Think you’re sliding into home (pun intended), don’t you?

Think again and do not, we repeat, do not do the following things when you are purchasing a home.**

1. Avoid moving you money around from one account to another.  If you need to move money, establish a complete paper trail of the money leaving one account and entering another.
2. Any deposits of large money (including gift money from relatives) into any account need to be sourced by making a copy of the check and deposit receipt, or the wire transfer order.
3. Avoid making a large purchase on credit or allowing your credit to be run, i.e. by a car dealership. Just wait to buy that Mini until AFTER the close of escrow.
4. Do not close any credit card accounts or credit lines – call your mortgage broker before doing anything regarding your credit.
5. Avoid changing jobs – especially if you are in escrow.
6. Avoid extensive travel during your escrow period. (Although, in our experience, when you are buying or selling a home, especially in a jet-setter locale like San Francisco, one of the main characters (buyer or seller) will go out of town. Don’t fret. We can coordinate home purchases or sales from anywhere in the world. It’s real estate 3.0, yo.)

Of course, life goes on even when you are in escrow to purchase your first pad (Noe Valley condo, Soma loft, Bernal Heights house, Mission Dolores duplex, etc) so just keep your team (Realtor and Mortgage Broker) informed and don’t make any major financial decisions without letting us know.

* Don’t have good credit…yet. Here are some tips on how to build good credit so you can qualify for the best home loan rates and terms when you decide to buy a home in SF.

** At Zephyr Real Estate, we’re blessed to have the ongoing help of some of the most experienced, knowledgeable, and competent mortgage brokers in San Francisco. Our Guarantee Mortgage team of home loan specialists rock and you’ll be well-served to work with any of them. They help us stay informed and provided us with this list of what NOT to do when buying your first home in San Francisco.

Tags: credit, First Time Buyer, Home Buying Tips, mortgage broker

San Francisco Real Estate – Buyer Beware or Get a Professional Home Inspection

Part of an ongoing series of San Francisco real estate & related guest bloggers, here is one of San Francisco’s top residential home inspectors, Bill Thomson of the Thomson Builder Group, letting you know all about the home inspection process when buying a home in San Francisco.

“ASK THE INSPECTOR… ABOUT HOME INSPECTIONS

One of the most important processes in buying a home is having it properly inspected.  The inspector can give you information about the property so that you will be more familiar with it and as a result have a better understanding of it. (SFHotlist – This is true whether you are buying a Bernal Heights single family home or a Mission Dolores condo.)

FINDING A HOME INSPECTOR:

Your real estate agent is a good resource for recommendations of home inspectors.  (SFHotlist – We keep an updated list of reliable local home inspectors for our clients to choose from. Other San Francisco home resources & service providers) Be sure to choose an inspector who is a licensed general contractor.  There is no licensing body for home inspectors themselves.  Choosing an individual who is a licensed general contractor can ensure that your inspector has reasonable qualifications.  Your inspector should at least have 10 years experience as a licensed general contractor

Be sure your home inspector has specific experience in expecting homes in the part of the Bay area in which the building is located.  If you’re purchasing a home in San Francisco, for example you want an inspector who has specific experience with the types of problems and repairs that typically occur in buildings of the type you’re purchasing. (SFHotlist – For example, are you buying an Inner Mission loft, a Duboce Triangle TIC, or maybe a Forest Hill single family home? Make sure your inspector knows the type of architecture.)

Your home inspector should not only be making specific recommendations for repairs but should also provide advice on the maintenance of the building and the installations with in it.

It’s a good idea to choose an inspector who has specific experience with the building department that has jurisdiction over the area in which the building is being purchased.  Most of my experience is in San Francisco.  I’m very familiar with the San Francisco Department of Building Inspection and the codes that they apply.

Your home inspector should have appropriate insurance.  They should carry errors and omissions insurance of at least $500,000.  This can protect you in case there is a serious mistake.  An example would be the report indicates that the furnaces in good condition, but two months later the furnace causes fire that damages the property the inspector’s errors and omissions insurance could come into play regarding that damage.

If you are using one of the larger San Francisco real estate companies such as Zephyr Real Estate, Pacific Union, McGuire, Paragon, Coldwell Banker, Prudential, Vanguard Properties or any of the other larger companies they will likely insure that a “Certificate of Insurance” by the inspector is on file with them.  However, it never hurts to ask.

Read the rest of this entry »

Tags: bill thomson, Home Inspection

San Francisco Real Estate – Is it smart to trade up to a nicer or bigger or ideally-located home in a buyer’s market?

San Francisco Real Estate Conundrum: Is it smart to trade up to a nicer or bigger or ideally-located home in a buyer’s market?

Under many circumstances, it is smart to trade up in a buyer’s market. How can this statement be true? Let’s look at an example.

Example:  Let’s follow two San Francisco properties from peak to trough of a SF real estate market cycle.

• Home #1 – The starter home: Inner Mission 1 Bedroom Loft Condo
• Home #2 – The desired trade-up home: Noe Valley 2+ Bedroom Single Family Home

Read the rest of this entry »

Tags: Buyer's Market, trading up

Buying a home in San Francisco? Why it’s crucial to get preapproved for financing before beginning the house hunt.

If you are buying a home in San Francisco, it is crucial to get preapproved for a mortgage before beginning the house hunt.

Why?

1. You’ll know exactly what you can afford. Understanding your purchasing power and any limitations * is integral to an efficient, focused home search. Spend your time looking at homes you can afford to actually buy. By focusing on homes that meet your needs, you’ll get a sense of market value for yourself and be able to make a smart decision as to which home to buy. There are many advantages to loan preapproval when SF home buying.
2. Real Estate Agents will take you seriously. (At least, the experienced ones will.) Working with a great buyer’s agent is key, and a great agent will insist that loan preapproval is one of your first steps.
3. Sellers will take you seriously. In SF, your offer on a home will simply not be taken seriously unless accompanied by a preapproval letter from a reputable mortgage broker or banker.
4. All in all, you’ll get a better deal. The best deals in the competitive SF real estate market go to focused, preapproved home buyers working with credible, assertive agents.

Read the rest of this entry »

Tags: loan preapproval, preapproval letter, preapproval v prequalification

The Realtor Personality Test: Which Type of Loco Is this San Francisco Real Estate Agent?

Real estate is, as they say, a people business. And, well, people are different.

Over the years working as a San Francisco Realtor, I’ve learned that to have an enjoyable real estate experience whether you’re selling a home in Bernal Heights or buying your first home in the Mission, it is absolutely crucial to work with a Realtor you can relate to…

One study of human personality is called the DISC Assessment. Here are the basics brought to us by Wikipedia.

DISC is an acronym for:

• Dominance – relating to control, power and assertiveness
• Influence – relating to social situations and communication
• Steadiness (submission in Marston’s time) – relating to patience, persistence, and thoughtfulness
• Conscientiousness (or caution, compliance in Marston’s time) – relating to structure and organization

Using a matrix and personality questions, you can determine which category you’re most like in both public and inner sides of your personality.

Here’s how each can be described.

• Dominance: People who score high in the intensity of the “D” styles factor are very active in dealing with problems and challenges, while low “D” scores are people who want to do more research before committing to a decision. High “D” people are described as demanding, forceful, egocentric, strong willed, driving, determined, ambitious, aggressive, and pioneering. Low D scores describe those who are conservative, low keyed, cooperative, calculating, undemanding, cautious, mild, agreeable, modest and peaceful.
• Influence: People with high “I” scores influence others through talking and activity and tend to be emotional. They are described as convincing, magnetic, political, enthusiastic, persuasive, warm, demonstrative, trusting, and optimistic. Those with low “I” scores influence more by data and facts, and not with feelings. They are described as reflective, factual, calculating, skeptical, logical, suspicious, matter of fact, pessimistic, and critical.
• Steadiness: People with high “S” styles scores want a steady pace, security, and do not like sudden change. High “S” individuals are calm, relaxed, patient, possessive, predictable, deliberate, stable, consistent, and tend to be unemotional and poker faced. Low “S” intensity scores are those who like change and variety. People with low “S” scores are described as restless, demonstrative, impatient, eager, or even impulsive.
• Conscientious: People with high “C” styles adhere to rules, regulations, and structure. They like to do quality work and do it right the first time. High “C” people are careful, cautious, exacting, neat, systematic, diplomatic, accurate, and tactful. Those with low “C” scores challenge the rules and want independence and are described as self-willed, stubborn, opinionated, unsystematic, arbitrary, and careless with details.

And now, drum roll please, for the good stuff!

Real estate agents, myself included, are all a bit nutty. (Okay, maybe not all but most. Believe me. Just go around a few Tuesday Broker Tours or Open Houses if you don’t believe me!)

Listen, working as a Realtor whether in San Francisco or Boise is a tough business.  It’s hard work and often little understood by even your closest friends and family. “What does she do all day? Drive around with her Pomeranians and look at houses? Looks easy to me. If I do that, can I have a big, fancy car too?”

This video nails it on describing the various types of loco you’ll find in residential real estate.

And who am I? Well, that’s one secret I’ll never tell! XOXO Property Girl

(But seriously, if you really want to find out, you’re gonna have to get in my big, fancy car and buy or sell a house in San Francisco!

Tags: disc, realtor personality type, youtube

How do you know it’s the right time to buy a home?

For San Francisco home buyers, how do you know it’s the right time to buy a home?

Real estate prices in San Francisco are down about 20% from the peak of the market (more or less depending on the neighborhood and type of property). We’ve been in the downturn for about 3 years already. There are genuine signs of life like increased transactions and the return of multiple offers. Read the rest of this entry »

Tags: recognize the bottom, right time to buy?, tom sinkowitz

Buying New Construction in San Francisco? Should You Use Your Own Buyer’s Agent?

Yes, you should. Of course, as agents, we’re paid (by our local sponsors) to say that! But seriously, you should use your own agent when buying a new construction condo in San Francisco for 2 main reasons. Read the rest of this entry »

Tags: blu, Esprit Park, millennium tower, New Construction, new developments, Soma Grand, the infinity

San Francisco Real Estate: Condos are a deal but can you get a loan?

San Francisco Real Estate: Condos are a deal but can you get a loan?

As Kenneth Harney confirmed last week in his column , “Mortgage rates and house prices are down – which sounds great for buyers and refinancers. But a series of mortgage industry underwriting and appraisal changes taking effect this month is throwing new hurdles in the way of borrowers and loan officers.”

Bottom line: What does this mean for a San Francisco condo would-be home buyer?

Read the rest of this entry »

Tags: Condo Home Buyer, Condo Loans, FHA Condo Loans, Kenneth Harney

10 Things to Remember When Buying Your First Home (or your 5th) in San Francisco

10 Things to Remember When Buying a Home in San Francisco whether it’s a Mission Loft, a Noe Valley Edwardian, a Bernal Heights Victorian Cottage or an Inner Sunset Mid-Century:

1. When buying a home, bite off more than you can chew but not enough to choke. Remember, to get to the penthouse you must first get on the elevator. (Or take the stairs but who wants to do that?)
2. It is not the cost of the home per se; it is the monthly cost to you that matters most.
3. Reasons to buy a home in order of importance:
   1. You want to live there.
   2. Investment Read the rest of this entry »

Tags: 10 things to remember, First Time Buyer