Tips for HomeBuyers!

[00:00:02] Speaker A: The Michael Hatfield Re Max team presents. [00:00:05] Speaker B: Real estate and more Bay Area real estate is different than in all of America and why? What's up with homebuyers? What's on sellers minds? How is the market and much, much more. [00:00:18] Speaker A: Now here's your host, Michael Hatfield. [00:00:21] Speaker B: Welcome to the real estate and more show. I'm so glad you're here with us today. We have an exciting show planned and it's to be solely on this topic of real estate. Where to talk on tips for home buyers, what is important and what else one should do to do a great job in buying that new home. A lot is happening as we have new rule changes, new real estate documentation and mortgage rate decreases as of recent as we approach the 2024 election. So here to share my thoughts add her two cent, which she always is famous to do, is my good friend and my sweetheart, Nancy. Welcome to the show, Nance. [00:01:05] Speaker C: Thanks, Michael. Always nice to be here with you. [00:01:09] Speaker B: You've heard it before. Buying a home may be the largest purchase you'll ever make. Does that make you nervous? Consider this. It can also be one of the best investments that you'll ever do in your lifetime. From the pride you feel from being a homeowner to the potential tax deductions associated with home ownership, the benefits are aplenty. [00:01:32] Speaker C: They are. Our show today is meant to be a resource to help familiarize you with the home buying process and present you with relevant information, including terms, things to consider and remember before buying a home, and checklists that will help you make the right decisions. So when finding the right agent, here are some questions to ask yourself to find that right agent. First of all, how much experience do you have? Does the agent have and can they provide references so that you can decide? Maybe review Zillow, Google other items or places to find those? And then what services and resources do you offer? Does the agent offer? That's a question to ask and get a good feel for that, what their services would be, how will the home buying process work and what's expected of me, the buyer, for instance, the home. [00:02:32] Speaker B: Buying process is really an interesting process that should be lined out for you by the new agent that you looking to hire. You want someone that can explain the documents, the residential purchase agreement and even before that now the required buyer broker representation agreement, the five page document that everyone is required now to review and endorse. And so you want that new agent to be able to explain those documents to you before you decide that you're going to go with them. [00:03:06] Speaker C: I would say I would say so too. Another question you want to ask is how much time will that agent be able to devote to your needs? And how often will he or she communicate with you? That's probably a very important part of the actual transaction. And what times, what types of homes are your specialty? You would want to ask the agent, for instance, and what do they know about particular neighborhoods that you might be considering. So those are all really important questions. How many homes has that agent sold recently? What types and what happens when an offer is made, and details about that. So that would be very important. [00:03:48] Speaker B: Also important is you're building a relationship with that agent, or you should be. You want to also know, are you going to be the client of that agent? Or are you going to be working with some subordinate in that agent's office? So many of the agents today have junior subordinates that carry out the small duties. But I have to tell you that most of the steps in the process are very important for the buyer. Again, one of the biggest transactions a person will make in their lifetime. It's good to know who you're dealing with. [00:04:22] Speaker C: It's very good to know who you're dealing with. Next, I would be asking what are the ten primary steps to purchasing a home? So first off, you would want to choose a real estate agent that's right for you. With the right experience and all of that, you'd need to know your budget, right. To prepare for when you can offer. [00:04:43] Speaker B: Your agent is likely during that process to connect you with various lenders that are professionals in their field that can find the best interest mortgage interest rate for you and the best mortgage package for you. So that's important part. [00:04:58] Speaker C: Absolutely. Exploring those mortgage options. And then you would want to browse online to see homes, what you like, what you don't like. Right. You'd like to get those home tours scheduled that you, excuse me, that you would really like to see and get your agent working for you to help you with that. Number six, I would say, is what the most important? [00:05:24] Speaker B: Yeah, and my idea, number six is the most critical. I was speaking with Mister Stadler, who is the designated broker for all the re Max Accord offices in the Bay Area. And we were talking about how critical it is for a buyer's agent to understand the strategy in the procuring a property through the offer he makes on behalf of the client and how important it is to being able to maximize any proceeds that that buyer would have to come up with in order to purchase that home. [00:05:57] Speaker C: And that's really where your agent's experience is going to shine, and it's immensely important. Next, you would, when you're into an offer and your offer's been accepted, you would want to make sure that at some point there was a home inspection. So you know what you're buying and then you close the deal. And these are the high flyovers right now. And if any miscellaneous issues might arise, you'd update utilities and transfer services and then move into your new home. [00:06:28] Speaker B: Well, yeah. It sounds so easy. [00:06:29] Speaker C: It does sound very easy. [00:06:31] Speaker B: So you're going to know the budget and prepare for when you make the offer. So you're working on that all of the way through the process. You're sitting down in the conference room, you're learning about your agent, and the agent's learning about you and your needs to help you out with those. And that is a critical time to go over the documentation that will be used, the primary documentation, in order for you to make your offer. [00:06:57] Speaker C: That's it? That's it. [00:06:58] Speaker B: Lot to know. So now you go to a lender and you're going to need that lender pre approval or a pre qualification letter that will be submitted with your offer. So how do you prepare for a meeting with potential lenders? Do you rely on your buyer's agent to provide you with potential good lenders? And the lenders will then turn around and say, okay, we got to check your credit score. What else, Nance? [00:07:27] Speaker C: You check your credit score. But actually, this is all in preparation. I mean, once you fall in love with that house, right? You want to have this all lined up. But anyways, your credit score. Yes. Your employment history, and then they check your assets and your debts and, and just get you lined up so you can be positioned the best way possible. [00:07:49] Speaker B: Yeah. And, and finding the right loan is a very important thing. So one size doesn't fit all. You need to have a mortgage plan or a mortgage package or a loan that fits your condition in the best possible manner. [00:08:06] Speaker C: Exactly. [00:08:07] Speaker B: And there's a lot to know there. So that's why we only associate with great lenders. [00:08:11] Speaker C: There's a lot to know about that. Do you want to talk about that anymore? [00:08:15] Speaker B: Well, again, we have to have a pre approval, a pre qualification letter down the road in order to make your offer. And you don't want to be waiting for the lender to look at your credit report, to look at your employment history and to fulfill those requirements that they have in order to provide that letter. You want to have that done as soon as you can. And your buyer agent should take care of that for you right at the. [00:08:43] Speaker C: Beginning and give you that great counsel. So once you've identified your must haves of a home, right. You're going to browse listings and you're going to check that out. You're going to ask to get that information. The criteria that you give your agent, you're going to ask them to give you that information via email, text messages, whatever, social media. And it's critical that your agent coordinates the showings for you because they know things that you're not going to know. Items that are listed on the multiple listing service agent reports. You're going to make sure that you have your buyer representation agreement in place so that your agent can show you the homes that you want to see and when you want to see them. So that's really important. [00:09:27] Speaker B: Exactly. You mentioned the buyer representation agreement. Again, this is a result. It's a new document's required five pages. You need to have your agent explain how all of that works and interacts with the way that you need to view home today to comply with all of the rules and so forth that go on. So there's a lot to that. [00:09:49] Speaker C: And that is a newer layer. That's a requirement. And so you want to be really clear on that as a buyer. So there's four things to consider when viewing a house online or houses online. You need to get a feel for the property and your experienced agent, did I mention that Michael is such a great experienced agent, is the resource to lean on during this process, and they often have information that may not be readily apparent or available to you. So anyways, four things to consider when viewing houses. Analyzing the photos, for instance. Right? [00:10:28] Speaker B: Yeah, for sure. When you first employ or you develop your relationship with your buyer's agent, they will likely set you up with what we call a drip from, from the multiple listing service. Now why does it even matter? Well, they can just look at the big z or the big red or whatever, but why is it important that you receive your primary information even though the photos may not be as wonderfully presented as the big Z or whatever? The important factor is that the MLS data is the most accurate data that will be on any given property. And so once you have your MLS drip set up to where it's giving you properties that you like that fit your parameters, you might need a three bedroom minimum or a four bedroom minimum. And you might need this particular area by your work. [00:11:24] Speaker A: We're going to take a short break. We'll be right back. [00:11:27] Speaker B: Re Max. [00:11:27] Speaker C: And here's Michael Hatfield. [00:11:29] Speaker A: Business owners, have you considered how important the appearance and impression your offices make to prospective customers? Appearance and impression are critical to clients, thus to your overall success. If your company could use that warm, inviting and welcoming appearance. I have an amazing complex of offices just listed for lease in the quaint town of Danville. Freshly remodeled, meticulously built, the 3700 square foot space enjoys incredible street exposure, front and side entrances, abundant parks, parking, reception, conference room, eleven individual offices, even a team member kitchen. This premium space is located in a blue ribbon building maintained by the renowned Sherman Properties group. Waste not 1 minute. Call us now. [00:12:16] Speaker D: Get help with buying or selling by calling the Michael Hatfield remax support team at 1800 857 63. That's 1800 857.63. [00:12:27] Speaker A: And now back to our show. [00:12:31] Speaker E: For home buyers. [00:12:34] Speaker F: Next, take note of potential fixes and renovations. [00:12:38] Speaker E: Yeah, you want to take a look and see? Well, do I need to paint this house? If it's purple and you don't like purple, you might want to consider painting it to a more milder color. [00:12:50] Speaker B: If you're thinking about adding on to. [00:12:52] Speaker E: The outside or adding a garage or whatever, you're going to have to pencil in a number there to put in your mind because it will not be cheap. [00:12:59] Speaker F: I don't know what's wrong with purple because actually we lived in a place where there was a purple house up on the hill. [00:13:05] Speaker E: I do remember that. That was a long time ago. [00:13:08] Speaker F: That was interesting. Next, you would want to consider the outdoor space. [00:13:13] Speaker E: Well, that's an important component for a home for me because I like to wrestle around with the kids in the, on the lawn or if there's a pool. I like to do that too. And I like to have a little bit of space. Some people don't want that space because they have to maintain it. Everybody's just a little bit different. So when you're looking online, you know, take into account these factors. [00:13:35] Speaker F: Right. Some clients want zero lot line, some clients don't want any trees, all kinds of things. The next would be three d and virtual tours. [00:13:44] Speaker E: Yeah, you know, a lot of realtors like to, I said realtors. I did not mean that. A lot of realtors tend to make up the 3d virtual tours and those are kind of nice, but you really get the ambiance once you get to look at the home, go inside it and so forth. But it gives you a pretty good idea in a lot of cases. So next, this is a big column for me. I think a person should make a list of features that you would like in your new home and rank those for your experienced agent only you know, what you like as much as you like certain items much more than the realtor is going to like them. So if you rank them, then it gives us a great place to get going. [00:14:31] Speaker F: It's really helpful. [00:14:32] Speaker B: Yes. [00:14:32] Speaker F: Next, you would want to identify the style of the home. [00:14:36] Speaker E: Yes. [00:14:37] Speaker B: And what would those be? [00:14:38] Speaker F: Well, there's so many story and a half. [00:14:43] Speaker E: Could be a cape Cod, they call it that. One has a type of style. What about split level? [00:14:50] Speaker F: Split level? Kind of like a tri level. It's a little different, but I like those. [00:14:54] Speaker E: And then for people of retirement age, they tend to like to have the single level. You need to pick out which one that you would like. And a few moments ago, we talked about how some people do not like to maintain their properties. Condominiums have actual hoas that will maintain the outer landscape and walkways and that kind of stuff. And so you could be looking for a condominium or a townhome. [00:15:21] Speaker F: Right. Or some. Sometimes people want a duplex so that they can live in part of the space on one side and then rent out the other. So that's another idea, too. [00:15:32] Speaker E: Yeah. You know, one of the things that we do this for is to prepare to make the offer. When you're ready to make an offer on a new home, you want to know which home out of the ones that you have seen is most applicable to all of your list of priorities. And this will help you gather your thoughts by taking and ranking the attributes of the home and getting you ready for the offer. Don't you think? [00:15:59] Speaker F: I do. And when you're ready to make that offer, you need to make sure that your agent goes over thoroughly with you, which he or she should. The residential purchase agreement, all the associated disclosures, acknowledgements and advisories, and so that you're feeling very comfortable with those. And there's just a multitude of required paperwork these days. So they will do that in anticipation of negotiating the purchase price and all the terms on your behalf. [00:16:27] Speaker E: Yes. And, you know, you don't really want to forget about the jitters that you're going to get the first time that you make your offer. Most people don't really expect that to come, but you get real jittery and feel all anxious. And it's a process. And one thing that I have to point out, and I hope our listeners and viewers will pay a bit of attention to it, you have to pay attention to the fact that there's going to be a lot going on behind the scenes and that you're going to entrust to your trustee, experienced and credible real estate professional. And so what do I mean by that? I mean that when I, there is an offer in play, there's a bit of interaction going on between you, your agent and the other agent and a multitude of other agents. If there's multiple offer situations that will inevitably end up with one or two being accepted, or in the case of a multiple counter offer, take into account that you make an offer and you receive this form back that says seller multiple counter offer. So does that mean that if you as the buyer sign that, that you're going to be in contract? No, not with a multiple counteroffer. If it's a counteroffer, seller counteroffer, then, and you sign it, then you will be in contract when you sign that. So there's a lot to know about that process. And this is why it's so good that when you marry up to your experienced agent, that you trust them, you believe in them, they have your priorities at heart. I cannot stress that enough. Your priorities at heart, don't you agree? [00:18:18] Speaker F: So important, Michael. So important. So then, if your offer is successful and accepted, there are also a few miscellaneous things that you would have want to do as a buyer. You'd want to purchase homeowner insurance. Make sure you can insure the property. [00:18:33] Speaker E: You'd want to let me put in something on that one. In California, after the fires that we had a few years back, there's been some difficulty in insurance underwriting home insurance policies, and it's been kind of an issue at times, so that you have to start early. The second that you're accepted with your offer, you need to be going, if you haven't already started the process of finding a worthwhile good insurance company to insure it for fire and theft and comprehensive in all of those other areas. If the home is in a flood area or one of an area that might have a chance of a flood, it will be shown on the natural hazard report as being an area of known flooding or dam inundation. And actually, FEMA has been grid mapping all of the homes in the United States to say whether or not that there are potential for home flooding. So not only do you have fire insurance, but in some cases you may end up with having to get going on a flood insurance policy that rides on top of your homeowner's policy. Would you not agree? [00:19:48] Speaker C: Right. [00:19:48] Speaker F: Right. You need to be on that right away. And then next, you would want to do inspections, like a home inspection, pest and roof inspections. You may even want to do a sewer lateral inspection, a chimney inspection, just anything that you might have concern about or interest in knowing about that's really smart and wise. And then next, the status of utilities. Because sometimes depending on the property you're purchasing, it could be that the utilities were turned off. [00:20:20] Speaker A: We're going to take a short break. We'll be right back. [00:20:26] Speaker D: Welcome to the real estate minute with re Max expert Michael Hatfield. Michael, what traits should we look for in selecting an agent? [00:20:33] Speaker A: Look for a deal maker with a positive attitude who will work tirelessly for you. An agent who is adept in multiple offer situations, drafting contracts, marketing and advertising. A client's home is familiar with multiple cultures, experienced in mortgage financing, inspections and escrow is a huge asset to his client. [00:20:53] Speaker D: What can you do as a plus for clients? [00:20:55] Speaker A: Your agent is your eyes and your ears, one who works behind the scenes on your behalf. A great attitude, working well with others and keeping close clients priorities. Number one is a given for us. [00:21:06] Speaker D: Call 925-32-2775 now to schedule an appointment or complimentary home analysis for excellence in real estate. Call the Michael Hatfield remax team at 925-32-2775 or go to michaelhatfieldhomes.com dot. [00:21:23] Speaker G: Well, we were in the market to buy a house in Pleasanton for a very long time. So we saw this beautiful house. We walk in, we see Michael and Nancy. We just absolutely love this house. Michael brought in a wealth of knowledge and experience to the whole home buying process. He was very professional. And both Michael and Nancy went way above and beyond to help us and to help us achieve the house of our dreams. [00:21:48] Speaker E: Now back to our show. [00:21:50] Speaker F: Right? [00:21:51] Speaker B: Exactly. [00:21:51] Speaker E: So if the seller in some cases will do the inspections on his home property, then post them as disclosures. If the seller has not done the pest inspection and has not done a home inspection, has not done a roof inspection, then you definitely want to pony up some money to have those inspections done. And I noticed Nancy mentioned sewer lateral inspection in the San Francisco Bay Area. A lot of the sewer lines are older. They're clay, made out of a clay material, and they, as their age, they tend to break more and more. Some of the areas in some of the towns require now, are now requiring better said that there be a sewer compliance certificate issued with the home. Not all of them, not all of the cities, not all of the counties, not all of it. But, you know, it's another one of those inspections that a person can do in their home and before they actually agree to remove their investigations, contingencies, even. [00:22:59] Speaker F: A sidewalk repair somewhere along the way, I think. [00:23:02] Speaker E: Yeah, yeah. In Oakland. I know for a specific example, because we've done it several times, is there's a sidewalk compliance that needs to be done. And soon. In 2026, if you're in like an apartment or a condo type building and there is a deck over like 6ft above the ground, those have to be inspected and brought into compliance. There's a lot to know about this profession as a real estate agent, broker. And you definitely need to have somebody looking out for your best interests. [00:23:40] Speaker F: I do, yeah. [00:23:41] Speaker E: Well, I know a lot of times you are always dealing with the status of the utilities and getting them transferred over, and the seller is always wanting to change it over as soon as possible to the PG and E, for example. And the buyer is nervous about not having in power when they go to move in there. But in actuality, PG and E doesn't immediately turn it right over. And then they look for the new person coming on deed and they give it a few days before they turn it off. But it's a little bit of a chore to make sure that our clients moving into a house have a list of these utilities to change over. [00:24:19] Speaker F: Exactly. [00:24:19] Speaker E: And one last thought on that sewer lateral. I want to go back to that. There are companies that will actually insure that sewer lateral, meaning that if you have a problem and it breaks in and you have some kind of rude intrusion in it down the road, that they will come in and they will replace it under the terms of an insurance policy. It's not real expensive. We've recommended it for many of our clients for over the years. And it's a good thing to have as a new home buyer. [00:24:50] Speaker F: Yep, I think so, too. [00:24:52] Speaker E: Yes. So, status of utilities, right? [00:24:55] Speaker F: Yep. [00:24:56] Speaker E: Yep. Well, there you go. Gotta say. Okay, what is the market currently in the Bay Area? What would you say it would be right now, Nancy? Would you say it's a seller's market, buyer's market, balanced market? What would you say? [00:25:08] Speaker F: I'd say it's still somewhat a sellers, but it's balanced, getting more balanced all the time. [00:25:14] Speaker E: A little bit sluggish, which is a little surprising. But the Federal Reserve dropped interest rates half of a 50 basis points, or half of an interest rate point. It translated very well into the reduction in mortgage interest rates that companies are charging, lenders are charging. But then there was a jobs report that came in just last week and it popped them right back up there. So they're running around six to six and a quarter at this point in time. But this is the part that I always like to say and quote my friend Aaron Merritt that says, you know, buy the house and date the rate. Yeah, she's amazing real estate agent up there in the reno area. [00:25:58] Speaker F: Great agent. [00:25:59] Speaker E: Yes. What else? Anyways, comparative market analysis, what is that? [00:26:05] Speaker F: Yeah. So talk about that. You do those a lot for clients. They're interested in what the value of their home is. And so you're go to meet with them and you present what's recently sold, what's pending, what's active, and it gives them a sense, a better sense of what their home might be actually valued at in the open market. [00:26:27] Speaker E: Because the open market changes every day. It just moves up and down every day. Comparative market analysis is done for a certain time, as is a home appraisal. A home appraisal is done by a professional appraiser that comes in, looks at all of the soles, the pendings and the actives that are on the market and tries to match up your home and its attributes with a home that is sold within a reasonable period of time and then comes up with a value for the bank or for you or whoever it may be. So that's pretty much the difference between a comparative market analysis where brokers will do it and a home appraisal or professional appraisers will do it. [00:27:12] Speaker F: And it's very helpful. [00:27:13] Speaker E: Yeah. Well, do you have anything to conclude with today, Nate? [00:27:17] Speaker C: Well, let me see. [00:27:19] Speaker F: I would say with the recent interest rate drops, many home buyers may be coming more motivated to have a home of their own, although those rates have been going up and down a little bit, haven't they? So as experienced agents who truly do care for the interest of our clients with the Michael Hatfield remax time Remax team, it's about time that, you know, you come talk with us, our clients, we put them first. [00:27:49] Speaker E: Well, thank you. What a great time we've had talking about the tips on the home buying process. Thank you. Nancy, I know you've had a little cough and a little under the weather there for a couple of days, but you're sounding good and looking great as ever. Thanks for co hosting the show today and for just being you. [00:28:07] Speaker C: Thank you. [00:28:08] Speaker E: You've been listening to the real estate and more show and our tips for Homebuyer episode. Please go to our YouTube channel at my realtalkshow. That's myrealtalkshow on YouTube.com and touch the subscribe and the like button. We'll be back in a moment with our next special guest. Thanks again, Nance. [00:28:29] Speaker A: Thank you Michael, please remember to go to our new YouTube handle my real talk show. That's my real talk [email protected]. and touch that subscribe button. You can also find past aired shows at our handle my real talk show on YouTube.com.