It’s a seller’s market market in Orange County Real Estate Today – so here are the top 4 things you need to do to be successful as a buyer against pretty staggering odds.
1. You have to have your Money available
You have to have money for an initial deposit – usually about 1% of the price you are offering – more if you can to be more competitive. You also have to have the money for the down payment – which for an FHA loan is currently 3.5% of the purchase price. And yes, your deposit does count toward your down payment. And you must have your closing costs covered - this amount will vary depending on how you negotiated your purchase contract and if you are paying points on your loan to buy down your interest rate. Your Realtor will be able to work with your lender to get good idea of what your closing costs will be. And all of this has to be documented by means of income tax returns, bank statements, and pay stubs. Today’s Orange County home buyers have to prove their financial ability to perform before an offer can ever be submitted. Don’t put yourself at risk of missing a great opportunity in today’s Orange County market because you aren’t ready to start making offers.
2. Buying a home takes Time
You must be willing to commit the time it takes to get up to speed on what’s going on in the specific neighborhoods and price ranges you are targeting. Time to review properties as soon as they hit the market. Time to return calls and emails from your Realtor and your lender. And time to update your financials if the process takes more than a couple of months. It also takes time to make offers, and review the responses from sellers. It takes time to understand the condition and circumstances of the available properties.
3. You have to be Mentally Tough
To be successful in this Orange County Real Estate Market, you have to stay focused on what you are llooking for and capable of purchasing. You cannot get distracted by the opportunity to purchase a “fixer” if you won’t have any money left to make the repairs – stay locked in to your zone and shut out all the other noise. You have to be mentally tough when offer after offer gets rejected, or when you get hit with multiple counter offers – resis the temptation to make up drama about why these sellers are purposefully making your life miserable and unbearable. Just stay focused on the facts and the math and make informed decisions. You have to be mentally tough to hear that the inspector suspects mold, and the remediator expects it to cost about $25,000.00 to fix. And the seller won’t budge on the price. Be mentally tough, make an informed decision, and move on.
4. It Takes Teamwork
Be up front honest with your Realtor and your Lender. Even if you don’t know the answer to a question. Many first time buyers are so overwhelmed with the enormity of the task and the price tag that they cannot absorb it all. Be honest about that, as well. Your team can help you through all this so much better if you keep them in the loop. Tell your Realtor what you like and don’t like, how you prefer to receive information (phone, email, text, …) Be a team player and ask your team for help. To paraphrase Jerry McGuire – “Help Us Help You!”
So that’s it in a nutshell – now get to work on finding the perfect Orange County home for you!
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