Buying a Home

Carlsbad Home Buyer's information

Some major points & advice for a successful home search:

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 the listing and buyer's agent. The Seller is represented by the listing agent - use a buyer's agent to represent your best interests rather than speaking directly to a listing agent as they have their own client's interests at stake and not your's - there is a conflict of interest when one agent represents both buyer and seller. 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.

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 - Interest payments on your mortgage & your property taxes are tax deductable. This makes owning a home much more affordable than most people realize. Be sure to ask your Accountant or real estate professional about the tax deductions you receive as a homeowner.

5. New Home Construction - Realtor's can help you with new construction. New Home escrows can be just as tough as resale, thus having representation is quite important. An agent 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 - By financing your entire home mortgage, you can invest in a $500,000 property with less than $10,000. Imagine investing this $10,000 in something else like a mutual fund. If you had a good year, you'd get 20% on your investment, which now would total $12,000. In contrast, if your home received a small 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.

Carlsbad Homes for Sale - Realty Directory
Steve Scheckner is an experienced and service-minded Keller Williams Realtor that specializes in Carlsbad Real Estate with Team 73 Degrees.