Buying a home for the first time can be an exciting and life-changing event. First-time homebuyers in Oakland and the East Bay are learning as they go, and while everything is new and fascinating about the process, there are some major pitfalls that a first-timer can fall prey to.
There are a lot of listings on the market these days, and due to low interest rates, it can be an ideal time to buy your first home.
However, many buyers still face the same hazards as they navigate listings and hone in on their dream home, especially in a market where list prices can be so far off from the actual sales price.
With these five secrets surrounding the industry, you’ll learn how to quickly stand out among the sea of other first-time homebuyers, ask the right questions, and find the right home for you more quickly and effectively.
1. First-time buyers need to structure a financial plan months or years ahead of time.
The most important thing a buyer can do as they plan out a timeline for the purchase of a new home is to build a financial plan that ranges back many months before scheduling visits at open houses, meeting with an East Bay realtor, and many other aspects of the home buying process.
The entire arc of real estate sales begins with a financial strategy that sets buyers up for success.
The average age of a first-time homebuyer is rising in the United States. Today, those purchasing their first homes are 34 – a seismic shift away from the demographic only a generation ago. While this means that people are renting or living at home longer, it also provides a unique financial opportunity to save up for the down payment with greater commitment.
Building up a formidable credit history and saving for the down payment required for any home purchasing opportunity are financial tasks that you must accomplish before any search can begin in earnest.
Without the funding, browsing through listings is an exercise in futility. Building up your cash reserves and boosting your credit score can give you the freedom to investigate listings and view homes with the legitimate ability to put in an offer if you see a property that you absolutely love.
2. Viewing homes beats reading listings: Go to plenty of open house listings.
Open houses are a great way to explore the features and inclusions of homes in your area and budget. Buying your first home comes along with a lot of responsibility and pressure to get it right; after all, the average American homeowner will live in their current home for thirteen or fourteen years.
Viewing homes – whether you’re currently in the market to buy or are still preparing your finances and list of expectations for your future living space – is a great way to understand the types of properties that are available and get a sense for what you will be able to afford as a buyer.
In addition, attending open houses gives you the ability to meet with brokers and others on the seller’s real estate team. These individuals – like ours in the Joe Dickerson Group – are professional real estate agents. Buying a home typically requires expertise and custom plan creation that you can only find with the help of a great realtor.
Meeting real estate professionals and perusing the amenities and layouts that meet your expectations are key takeaways from these home visits.
3. Think about the location before other amenities or inclusions.
The location of a property within the greater Oakland and East Bay area is the only thing that you truly can’t change about the space. This means that prioritizing the location is a great step in the right direction for any new buyer.
While amenities and inclusions are essential for moving into a home that perfectly meets your needs, if that comes along with a two-hour commute or a noisy highway that passes by your neighborhood, the home may be more of a worry than it’s worth.
Take stock of your hobbies, routine activities, and current commitments to find homes in the perfect neighborhood for you and your family.
4. Create a list of priorities and continue to hone in on what you really want.
In addition to location, homebuyers must create a list of amenities within the confines of the home and seek out properties that meet their needs, wants, and desires.
Thinking about your current home or apartment is a great place to start working with a real estate team to facilitate the home buying process during your first move.
Perhaps you love cooking but find the kitchen too restrictive in your current living space. Alternatively, you might want to maintain your children’s Oakland youth sports activities and decide to prioritize green space around the home or a community park within the neighborhood.
These features are found in abundance within Oakland properties, yet getting the combination of inclusions right can feel like a huge challenge.
With the help of a real estate agent, you can build a solid list of priorities and then pursue homes that meet your ideal wishlist – all while staying within your budget.
5. Remember that home serves as more than a place to lay your head.
It’s also important to remember that any new real estate property you purchase functions as more than just your home. This property will serve as the home base for you and your family for years to come, but it’s also the most important financial asset that you will own.
You can leverage your home for low-cost lending opportunities or a rental income generator that pays you monthly dividends.
Home prices are consistently rising over the course of decades as well, so there’s a good chance that your home will have locked in a sizeable price increase when you decide to sell – be that five, ten, or more years down the line.
This all means that a home shouldn’t be viewed simply as a space for relaxing and creating memories. This financial asset can help you make it through the hard times as well, so you should take measures now to maximize resale value when you purchase the home.
Are you looking to purchase your first home?
Buying a home in today’s ultra-competitive Oakland and East Bay market can be both overwhelming and frustrating. Seeing a home listed for $1.1M and then selling for $1.7M or even $2M is not uncommon.
If you’ll looking for an ally and strategic partner to help you navigate the real estate landscape here in Oakland and the East Bay, our team is here to help.
We’ve worked with hundreds of local buyers and sellers to successfully meet their goals, and we would love to help you too. Start by reaching out to our team, and/or attending our upcoming class for first-time homebuyers.
