One of your new year’s resolutions for 2008 is to buy a home of your own. With prices somewhat mitigated and interest rates at near historic lows, it is time to take advantage of the opportunities that present themselves in our current real estate market. No one knows when the bottom of the market will occur, but you do know that the market is much more friendly to serious buyers than it was a few months ago. The following is a thumbnail sketch of the process that can be expected when you purchase residential property in the Sacramento region.

First, contact your favorite Realtorâ. Several weeks ago we discussed questions you should ask before choosing a real estate professional. Once you have found an agent who will put your needs first and who understands the buying process, you will need to communicate clearly to the agent the type of home you want, the amount you are willing to pay, and the time frame in which you’d like to buy. By asking a series of questions, your agent should be able to get a good sense of who you are and what type of property is suitable.

After choosing your agent, you will need to contact a lender to begin the loan process. Your agent may give you recommendations, or you may decide to contact a lender you have worked with before.  It is a good idea to get loan quotes from at least two or more lenders and compare their products so you can decide which loan products best suit your needs.  Your agent can be very helpful in assisting you in deciphering the various loan terms—especially if this is your first loan.

Once you have been pre-approved for a loan, you will know how much money you have to work with and the house hunting can begin.  Sometimes clients look at only a few homes; other times they need to see several before they find one that best suits their needs. Be sure to look the home over carefully—including the yards—and ask any questions that come to mind. A competent agent may give some suggestions as well as point out the pros and cons of the various properties you view. Any questions you have should be answered—if the agent doesn’t know the answers she should be willing to help you find them.

When you have found the home you want to buy, it is time to write a purchase agreement. This negotiating tool is important because it puts on paper all the terms you are willing to accept. Sometimes a seller will counter a purchase agreement to change some terms.  Once you and the seller agree on all the terms, and both buyer and seller have signed the purchase agreement and any addendums or counteroffers, the purchase agreement becomes a binding contract. Your agent should then give you a timeline with dates showing you what to expect and when. Be sure to ask any questions you may have along the way.

Escrow is opened after both parties have signed the purchase agreement. The earnest money deposit is deposited into the escrow account.  In the Sacramento region, escrow is usually opened with a Title Company who also provides the title insurance. The escrow company compiles all of the paperwork and information necessary to close the escrow. During the escrow period, desired inspections or investigations are completed, the seller completes several disclosures and they are delivered to you for approval.  At this time, a preliminary title report is produced and the lender completes the loan process ensuring loan funds are available for closing. Escrow will not close until all parties have met the terms of the agreement. After confirmation of the change of title is  recorded in the County Courthouse, you will receive your keys, and you can move in!

The process of purchasing a home is always an exciting time.  By doing your homework in advance, and finding a team of competent professionals to help, the process can be fun! Happy house hunting!

Successful investing takes time—time to learn about a market in order to make good decisions regarding a purchase, time to find the right purchase for your individual needs time, and time to allow the value of the investment to grow. Historically, experts have recommended that the astute investor think in terms of the long term—not expecting short term rewards.

Over the last several years, consumer expectations relating to real estate markets, have increased as the rising values in homes have outstripped other areas of investments.

So, you’d like to take advantage of that wonderful job opportunity out of town, or you feel that you need a bigger (or smaller) home, but you don’t know whether you can afford to sell your home. While the Sacramento real estate market has experienced a slower pace in recent months, homes are selling, albeit at a slower pace than in years past.

However, the current seller does have to approach the market differently than was necessary just a few short months ago. While the old adage in real estate was “location, location, location”, the new adage for sellers who would like to sell their property is “location, exposure, price”.

Whenever we look at the local statistics, we have to remember that they are a conglomerate of all the homes sold in the region and they may not apply directly to a particular neighborhood. Some neighborhoods hold their value better than others. Sometimes there are outside things that effect a market more favorably than others—such as what is happening in the local school district; what current job markets are; what types of businesses are moving into the area. That is one reason why your professional real estate agent is so important to your selling plans.

Additionally, without maximum exposure of your property to the market, you will undoubtedly get less for your house than you would with the full exposure that a Coldwell Banker agent is able to offer. In anticipation of the calming market we are currently experiencing, Coldwell Banker has made multi-million dollar investments in positioning the company in several areas so our listings get maximum exposure in the marketplace.

And, while it is true, that the selling prices of homes are less than they were 18 months ago, most people who have owned their homes for more than three years, are still able to realize a tidy profit. Some who have overextended themselves with risky loans or refinancing to the maximum allowed a couple of years ago, are finding themselves pinched. There are some continuing advantages in purchasing a home today that could not have been obtained a few years ago—taxes, insurance and price to name a few.

Whether you may be thinking of buying or selling a home, would like to explore the possibilities of the rental income market, or would just like a primer of the home buying process, please give us a call. The experts on Coldwell Banker’s Fox Team would be happy to help!

—Kathy Fox