I want to buy, where do I start?
How do I get pre-qualified?
How are agents paid?
Should I use several agents?
I’m not sure what kind of home I want? What do I do?
What are the tax laws on capital gains?
I’m worried if I sell my house first, I won’t find a new one. How do we work around this?
What qualities should I look for in an agent?

I want to buy, where do I start?

Step 1. Get pre-qualified. Even better, get pre-approved. Your lender will help you determine how much you can afford. Don’t waste time and become frustrated by looking at homes that are out of your price range. When you find a home and an offer is presented, the sellers will consider your offer more seriously if you are pre-qualified or pre-approved.

Step 2. Hire a top notch agent to help you. I search for properties after getting to know your needs and wants. I will email, fax, call or mail you the information, show you the home, write up the offer, negotiate on your behalf and once under contract, coordinate the escrow so everything goes smoothly.

Step 3. Be prepared to write up a non-contingent offer. If you have a property that you need to sell, it should be in escrow waiting to close or already sold and closed (See below-I’m afraid to sell my house first).

Step 4. Be available to look at properties. Hot properties will not wait for you. They sell fast! Be prepared to tour new listings as they come on the market. 

How do I get pre-qualified?

It’s easy to get pre-qualified and doesn’t cost you a dime. Consult a lender (like a bank) or a Mortgage Broker. The difference? A bank is a single lender institution. A mortgage broker takes your loan application and sends it out to multiple lending institutions for approval. They also shop for the best interest rates among 170+ lending institutions. Pick a lender who is reputable and experienced. Get pre-qualified NOW click here.

Should I use several agents?

I don’t recommend it. Instead, select one you trust to diligently represent you! All agents have access to the SAME multiple listing information. Multiple agents cause unnecessary overlaps of information and creates confusion as to who is representing you (and who gets paid). Also you will be shown the same homes by multiple agents which could prove to be embarrassing and a waste of your time.

I’m not sure what kind of home I want? What do I do?

Create a wants/needs list. If you’re looking for the absolute “perfect” house, the chances of finding it are slim. Don’t set yourself up for disappointment. Develop a practical list, to increase your chances of finding several homes that meet your needs. Remember, a home is an investment in your future…you’ve got to start somewhere. Get the most you can afford now. It will appreciate over time and you can always move up as your financial ability grows. Let a qualified real estate professional help coach you through this process. Call or email me today and I can help you with this process. 

What are the tax laws on capital gains?

Tax Free Capital Gains
In sales of principal residences, gains up to $500,000 for married couples ($250,000 for singles and married couples filing separately) are tax-free. This generous break can be “recycled” every two years. You must have owned the home and used it as your primary residence for at least two of the five years preceding the sale (except for new rules on homes acquired through 1031 exchanges).

Buy A Fixer And Sell It For Profit
Now is the time to do it! You can profit by living in the house for two years, do repairs and then pay no federal taxes on profits up to $500,000 ($250,000 for singles.) Like the profit? Buy another house and do it again!

Hint: On expensive properties, another option is to sell now and pay gains on the profit over $500,000 ($250,000 for singles). Then, repurchase and watch your tax free equity grow (the repurchase adjusts your basic back down) because you fall under the $500,000 ceiling again. Click here for more information. Always consult your accountant or tax attorney prior to buying.

I’m worried if I sell my house first, I won’t find a new one. How do we work around this?

It’s a scary thought. During my 20 years in the business, I’ve only had this happen three times. What my clients did was move into temporary housing (a short term rental) or stayed with family. Unfortunately, when you commit to make a move, you must go for it! On a repurchase, few sellers will consider an offer unless your existing house has an accepted offer and IS IN ESCROW! Sold and closed is even more desirable. Remember it is a “Sellers Market” and sellers are in the driver’s seat. Here’s what I do so you have more time. When your home sells, I ask for a longer close (60 days) or a 30 or 45-day rent back after close (you rent your home from the new buyers after close of escrow and pay rent to them). This gives more time to locate your new home, write an offer and close escrows concurrently. No costly double move! Another way to buy is to obtain an equity line or bridge loan on your current home to use as a down payment for a new home. You can see why it’s important to have an agent who is knowledgeable and experienced. 

What qualities should I look for in an agent?

• Look for an agent with at least 5 years experience and $10 million per year in sales. This minimum standard suggests your agent is experienced in negotiations and understands the closing process. Agents who do more business also have more “pocket listings” not on the market yet.
• Ask what technology they use to find homes. Good agents use a variety of resources, such as multiple listing, email notification, direct prospecting and in-house matchups.
• Ask what systems or programs are provided for buyers? What systems keep them on track toward a successful purchase? What options do they offer for receiving daily updates (fax, call, email or mail?). Great Agents offer more alternatives and more solutions.
• Do they have assistants who can help with searches, marketing and answer your questions when they are busy at an appointment? Your agent can’t be in two places at once, so make sure they are not a one person team. You don’t want to miss out on an opportunity to buy your dream home.
• What professional designations do they hold? Are they an agent, or have they earned credentials such as Broker, CRS (Certified Residential Specialist) and GRI (Graduate of the Real Estate Institute). Further education suggests being dedicated toward professionalism and the willingness to improve and raise professional standards.
• Ask for a reference list of past sales and review testimonials. Although a track record doesn’t guarantee future performance, I can’t think of a more meaningful measure of a qualified professional. Actions speak louder than words.