Encinitas Real Estate |
Encinitas Home Buyer's InformationHelfpul information for buying your next home:1. The Multiple Listing Service (MLS) - this is the central database that all home listings from all brokerages are pooled together. Every Realtor has access to the same properties in this database. Be sure to work with a Buyer's agent in depth and give them feedback to locate the right property for you. 2. Buyer's Agency Benefits - Using a buyer's agent is free for you - sellers pay the commission of both agents in the transaction. Think of buying a home like a court case. Each party needs to have someone represent them. The Seller is represented by the listing agent and you should be represented by a Buyer's Agent. If you contact a listing agent, it is similar to asking help from an attorney representing the person you are in a lawsuit against! A buyer's agent will represent your best interests. Your buyer's agent is familiar with the neighborhood, what's available, market trends, and searches for homes on a full-time basis. There is no reason not to use a buyer's agent - just find a knowledgeable one that offers good service & has negotiation skills. And they are free!! 3. Working with a Lender - Speak with a lender as early as you can to get a credit report. If your scores are good, you can proceed to get prequalified for a specific price range based on the monthly payments and loan type that you feel comfortable with. Your lender will also advise you on ways to bring your credit up if possible to attain a better percentage rate on your loan. When you have a property in mind and are ready to put an offer, it is advised to speak with 2-3 lenders to get the best loan at the best rate. 4. Tax Benefits - Owning a home has fantastic tax deductions. You can deduct the interest on your mortgage payments as well as your property taxes. This makes owning a home much more affordable than most people think. Ask your accountant for more specific information regarding homeowner tax deductions. As a general rule, for every $1,000 you could afford in rent, you could afford $1,400 in mortgage payments because of the tax deductions. And then there's the benefit of gaining equity on top of that! 5. New Home Construction - Realtor's can help you with new construction. They will let you know what builders are building in communities you are interested in and bring you to view homes. It is best that you have a Realtor with you the first time you walk into a new home or else the new home builder will not work with your Realtor and you will lose your representation. 6. Leverage your Investment - This is the classic reason for investing in real estate. The math is pretty simple, and especially powerful in California. By financing a mortgage, you can invest in a $500,000 property with less than $10,000. What would happen if you took this same $10,000 and invested in something else like stocks? At best, you'd get a 20% return, which would be $2,000. In contrast, if your home received a small to average 5% gain in value over a year, you would now have gained $50,000 in equity. $50k or 2k? I think this best illustrates the concept of leveraging your investments by investing in real estate. In addition to this, once you have gained enough equity, you now have the ability to make home improvements, take a vacation or purchase additional investment properties. |
| Encinitas Homes & Condos - Referral Network |
| Tim Holsten is an experienced and service-minded Keller Williams Realtor that specializes in Encinitas and Carlsbad Real Estate. |