buying a home

The Perks of Buying over Renting a Home in San Diego

Considering becoming a homeowner in San Diego? While current mortgage rates may appear daunting right now, there are compelling reasons why buying your own home remains a wise decision if you’re prepared and financially able. Here are some of the perks of buying over renting a Home in San Diego to think about:

1. Home Values Generally Increase Over Time

Amidst recent uncertainties about the direction of home prices, rest assured that, historically, they tend to rise. This is clearly illustrated when examining long-term data from the Federal Reserve: Despite a notable dip during the 2008 housing crisis, home values have consistently appreciated over the past six decades.

Price Appreciation Over the Last 60 Years Graph

This enduring upward trend is particularly evident in San Diego, a city known for its dynamic real estate market. Investing in a home and being a homeowner here not only offers a scenic lifestyle but also a smart financial move as you gradually build equity. Over the years, as property values increase and you continue to pay down your mortgage, the equity you accumulate can significantly boost your financial standing. According to the Urban Institute:

“Homeownership is critical for wealth building and financial stability.”

This makes being a homeowner a potentially more advantageous option than renting, where payments might go towards a landlord’s equity, not your own. As you consider your next steps, remember that in San Diego, investing in real estate is not just about finding a place to live—it’s about setting the foundation for your financial future.

2. Escaping Rising Rents in San Diego

In San Diego, where the sun meets innovation, the cost of living can be high. One significant expense? Rent. It often seems more manageable in the short term to rent, but each lease renewal could bring a sting as rent prices climb. In fact, historical data from IProperty Management shows a steady increase in rents nationwide over the past six decades.

Increase in Rents Over the Last 60 Years Graph

So, how can you break free from the endless cycle of rent hikes? Being a homeowner and securing a home with a fixed-rate mortgage in San Diego offers a solution. It locks in your housing expenses, freeing you from the unpredictability of renting. This stability isn’t just about comfort; it’s a financial strategy that pays off in the long run and of the main perks if buying over renting a home.

Consider your monthly housing payment as an investment in your future in being a homeowner. With each payment, you’re building equity—investing in yourself rather than lining your landlord’s pockets. Although renting might seem less expensive at first, the money spent doesn’t contribute to your financial growth.

Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors, advises:

“If a homebuyer is financially stable, able to manage monthly mortgage costs, and can handle the associated household maintenance expenses, purchasing a home is a wise decision.”

In San Diego’s dynamic market, buying a home means planting roots in a community poised for growth, where every mortgage payment enhances your financial security and personal wealth.

Wrapping It All Up with The Perks of Buying over Renting a Home in San Diego

Are you fed up with rising rent prices? Being a homeowner in San Diego offers numerous benefits, from building equity to enjoying more stability and freedom. Let’s discuss how you can transition from renting to owning and fully explore the opportunities that homeownership in this vibrant city brings.

Housing Prices in San Diego and What You Really Need to Know

San Diego Home Offers: 4 Tips for Success

Are you planning on buying a home in San Diego in the near future? Well, buckle up your seatbelts because the current real estate landscape is anything but a leisurely stroll. With San Diego’s housing market in full swing, competition is fierce, especially given the limited inventory of available homes. Brace yourself for the possibility of engaging in multiple-offer showdowns as you navigate through this dynamic market.

As we gear up for the bustling spring homebuying season, the intensity is only expected to escalate further. But no worries! Armed with the right strategies, you can be a formidable contender for your dream home. At the McT Real Estate Group, we have the tools and experience to help you navigate the process.

Here are four invaluable tips to ensure you put forth your strongest offer:

San Diego Home Offers - A Realtor discussing an offer with buyers — San Diego Home Offers – A Realtor discussing an offer with buyers

1. Guidance in San Diego’s Real Estate Terrain and the Offer Process

Consider teaming up with a trusted real estate agent to champion your objectives. San Diego, with its diverse and competitive market, demands a savvy guide to navigate its intricacies. By enlisting the expertise of a seasoned professional, you gain access to invaluable insights and resources, enhancing your chances of success. In this vibrant cityscape, where opportunities abound, and competition is fierce, having a dedicated ally by your side can make all the difference. PODS mentioned in a recent article:

“Making an offer on a home without an agent is certainly possible, but having a pro by your side gives you a massive advantage in figuring out what to offer on a house.”

Local real estate agents possess invaluable expertise in the San Diego market. They’re well-versed in successful strategies employed by buyers and understand seller preferences. This insight can significantly influence your decision-making process when crafting an offer. Leveraging their knowledge could be the key to securing your dream home in San Diego.

San Diego Home Offers - A Woman Doing Some Budgeting — San Diego Home Offers – A Woman reviewing her budget

2. Get a Handle on Your Budget

Understanding your financial parameters is paramount, especially in San Diego’s real estate landscape. Take the reins by collaborating with a lender to secure pre-approval for your home loan. This step fosters a deeper financial assurance and signals your unwavering commitment to sellers. Armed with this pre-approval, you gain a decisive advantage in San Diego’s competitive market. As highlighted by Investopedia, being financially prepared positions you for success in securing your dream home.

“. . . sellers have an advantage because of intense buyer demand and a limited number of homes for sale; they may be less likely to consider offers without pre-approval letters.”

San Diego Home Offers - Man Reading Contracts — San Diego Home Offers – Man-Reading Contracts

3. Crafting Your Offer: Finding the Sweet Spot in San Diego’s Real Estate

Crafting a robust yet equitable offer is paramount when navigating San Diego’s bustling real estate market. While securing an affordable deal is undoubtedly a priority, it’s essential to strike the right balance. Submitting an excessively low offer may jeopardize your chances of success. Instead, opt for an offer demonstrating your seriousness and respect for the seller’s property. As highlighted by Realtor.com, a strategically structured offer not only showcases your commitment but also increases the likelihood of acceptance. So, when making your move in San Diego’s competitive market, aim for a strong offer that reflects both your financial prudence and appreciation for the value of the home.

“. . . an offer price that’s significantly lower than the listing price, is often rejected by sellers who feel insulted . . . Most listing agents try to get their sellers to at least enter negotiations with buyers, to counteroffer with a number a little closer to the list price. However, if a seller is offended by a buyer or isn’t taking the buyer seriously, there’s not much you, or the real estate agent, can do.”

Your agent’s expertise is pivotal in ensuring your competitive edge during this process phase. With their guidance, you can confidently navigate the San Diego real estate market’s complexities. By leveraging their insights, you’ll secure a fair price that aligns with both your needs and the seller’s expectations and position yourself strategically amidst the bustling San Diego housing landscape. Trusting in your agent’s proficiency empowers you to make informed decisions that propel you toward your homeownership goals.

San Diego Home Offers - People Going Over Contracts and Negotiating — San Diego Home Offers – People Going Over Contracts and Negotiating

4. Trust Your Agent in Negotiations

Once your offer is in, the seller might counter, but fear not! Understanding the seller’s priorities is key. Flexibility on aspects like move-in dates or home conditions can sweeten your deal. Your real estate agent is your go-to guide in these negotiations. Rely on their expertise to steer you through and craft the winning strategy. According to insights from the National Association of Realtors (NAR), trusting your agent is pivotal in securing the best outcome. In San Diego’s dynamic market, where every detail counts, your agent’s local knowledge and negotiation prowess are invaluable assets. So, lean on their guidance and expertise to navigate the twists and turns of the negotiation process smoothly.

“There are many factors up for discussion in any real estate transaction—from price to repairs to possession date. A real estate professional who’s representing you will look at the transaction from your perspective, helping you negotiate a purchase agreement that meets your needs . . .”

Wrapping All Things Up on Successful San Diego Home Offers

In today’s fiercely competitive San Diego real estate scene, teamwork is key. Let’s collaborate to discover your dream home and develop a winning offer that sets you apart from the crowd. The McT Real Estate Group’s goal is simple: to ensure you secure a property you adore in this vibrant city. So, let’s roll up our sleeves and embark on this exciting journey together.

A Real Estate Agent’s Expertise when Moving to San Diego

Buying a Home in San Diego: Is Now the Right Time?

Considering buying a home in San Diego? Perhaps you’re looking into neighborhoods such as North Park, or South Park. You may be wondering about the timing: should you take the plunge now and take that leap of faith or maybe hold off for a little while? Well, honestly It’s all up to you and a decision only you can make, but we’re here to provide some insights to aid your deliberation. So, let’s delve into some key factors to consider that might sway your decision.

What’s Next for Home Prices in San Diego?

Wondering about the trajectory of home prices in San Diego? Let’s delve into the insights from the latest Home Price Expectations Survey (HPES) conducted by Fannie Mae and Pulsenomics. This survey taps into the wisdom of over 100 experts, spanning economists, real estate professionals, and investment and market strategists, to gauge their predictions on home price trends.

According to the survey, the consensus among these experts is clear: home prices are poised to continue their upward climb over the next five years. The graph below illustrates this sentiment, with a sea of green indicating sustained growth without any anticipated price declines.

What does this mean for prospective buyers and homeowners alike? It signifies a steady annual increase in home prices, projected to range between 3% and 4%. While the growth rate may taper slightly in 2025 compared to preceding years, it’s crucial to recognize the cumulative impact of these incremental upticks.

Consider this scenario: if your home’s value escalates by 3.78% this year, that uptrend is expected to persist with a 3.36% rise the following year and a subsequent 3.87% increase thereafter. These incremental gains may seem modest in isolation, but over time, they accumulate to substantial appreciation, bolstering the long-term value of your investment.

In essence, the data underscores a favorable outlook for homeownership in San Diego, with sustained appreciation anticipated in the years ahead. Whether you’re contemplating a purchase or are already a homeowner in San Diego, understanding these market dynamics can empower informed decision-making and strategic planning for the future.

Why Buying a Home Now in San Diego Could Be Your Best Move?

So, what does all this mean for you, especially if you’re considering buying a home in San Diego? Well, it’s actually pretty promising. The forecasted rise in home prices suggests that investing in a home now could be a smart move for your financial future. Essentially, buying a home now means acquiring an asset anticipated to appreciate in value over time.

Still not convinced? Let’s break it down further with some concrete numbers. By examining expert projections from the Home Price Expectation Survey (HPES), we can paint a clearer picture of how a typical home’s value might evolve in the coming years. Take a look at the graph below for a visual representation.

For instance, let’s say you decided to buy a home for $400,000 at the beginning of this year. According to these projections, you could potentially see an increase in household wealth of over $83,000 within the next five years as your home’s value appreciates.

Now, of course, you might be thinking about holding off on purchasing a home. But here’s the thing – waiting might actually end up costing you more in the long run. With prices expected to continue rising, delaying your home purchase could mean paying a higher price down the road. So, why wait when the opportunity to secure your financial future is right here, right now?

Wrapping All Things Up

In conclusion, if you’re considering taking the plunge into homeownership and you have the means to do so, now could be an opportune moment to make your move. The real estate landscape in San Diego continues to show promising signs of growth, with property values on an upward trajectory. By taking action now, you position yourself to potentially benefit from the ongoing appreciation of your investment. Let’s join forces and embark on the journey of finding your ideal home together. Reach out to the McT Real Estate Group today, and let’s kickstart the search for your dream home in beautiful San Diego!

The Key to Seamless Moving: San Diego Mortgage Rates

Additional Income Needed to Buy a Home in SoCal

In the changing world of estate, in Southern California people looking to buy a home are facing a tough challenge due to the sharp increase in financial pressures over the last couple of years. It’s not about housing; it’s also about dealing with higher costs, rising mortgage rates, and the big question of whether it’s affordable. Let’s dig deeper into this issue by examining data from the California Association of Realtors and how Federal Reserve policies play a role.

Affordability Challenges Across Southern California

The financial barrier for homebuyers in Southern California has significantly risen. To put things into perspective, someone wanting to buy a home by 2023 would need an annual income of $207,000, which is a notable increase from the $134,000 required just two years ago. This 55 percent rise in income shows how much harder it has become to own a home.

This challenging situation is caused by factors. The median price for an existing single-family home reached $775,000 by the end of 2023, marking a 7 percent increase from two years earlier. While in North Park and other metro neighborhoods in San Diego, the median price is $1,207,000. What is more impactful is that average mortgage rates have more than doubled, going up from 3.3 percent up to 7.4 percent, dramatically changing the costs involved in purchasing a house.

As a result, the estimated monthly payment for a home has experienced a sharp increase of $1,830, elevating the monthly financial obligation to $5,180. If one is buying a home in the San Diego metro communities, such as North Park, South Park, University Heights, and others, just know that if you are putting 20% down on a median-priced home, your monthly mortgage payment will be approximately $9,000.00 dollars.

The Rising Financial Barriers

These changes have significantly impacted affordability, reaching its levels since before the Recession. Only 14 percent of households in Southern California are now able to afford a median-priced home by the end of 2023. This marks a decrease from the 26 percent affordability rate observed at the close of 2021, reflecting the challenges of the housing market bubble in the mid-2000s.

When looking at California as a challenge, the required income to purchase a home in the state of California stands at $223,000 for an $833,000 property, which is somewhat better than Southern California but still daunting. In contrast, despite housing costs and tech salaries in the Bay Area, a higher income is needed for purchasing a house compared to other regions; however, it offers slightly improved affordability rates compared to Southern California and the state overall.

Diving into areas within Southern California reveals differences from Orange County’s increase in necessary income amounting to $134,000, all the way to San Bernardino’s relatively modest hike of $47,000. This regional breakdown underscores how diverse the affordability crisis is across counties.

Despite facing these odds, there is hope due to the decrease in mortgage rates to approximately 6.7 percent. This could reduce the income threshold for individuals looking to purchase homes in Southern California. However, this small progress does not significantly change the situation, especially when compared to the perspective where the average American’s ability to afford homes is notably better.

Opportunities Needed to Buy a Home in Southern California

The main issue is this: owning a home in Southern California is becoming an aspiration for many people, as demonstrated by historically low home sales. While slight shifts in mortgage rates provide some respite, the broader affordability crisis calls for solutions and continued focus to bridge the gap between the dream of homeownership and the reality faced by residents of Southern California.

Despite the real estate environment, in San Diego, there is an aspect for individuals aiming to navigate the market. Sellers can take advantage of the rising home values to benefit from their investments. Potentially earn a great deal of profits.

With recent decreases in mortgage rates, there is a ray of hope, making this a promising time to enter the market. Additionally, San Diego’s enduring charm, including its communities and breathtaking natural surroundings, continues to make it a sought-after place to reside.By implementing strategies seeking advice from real estate professionals and focusing on long-term value, buyers and sellers can work towards their real estate objectives by transforming challenges into opportunities within this dynamic market.

Forecasting the Federal Reserve’s 2024 Interest Rate Reductions and Their Effects

Should You Buy a House Now in San Diego?

San Diego Homes for Sale by Price Range

San Diego Homes for Sale $800,000-$1,000,000	San Diego Homes for Sale $1,000,000-$1,200,000	San Diego Homes for Sale $1,200,000-$1,400,000	San Diego Homes for Sale $1,400,000-$1,600,000	San Diego Homes for Sale $1,600,000-$1,800,000
San Diego Homes for Sale $1,800,000-$2,000,000	San Diego Homes for Sale $2,000,000-$3,000,000	San Diego Homes for Sale $3,000,000-$5,000,000	San Diego Homes for Sale $5,000,000+

The San Diego Real Estate Market has an abundance of opportunities for homebuyers and sellers.
The real estate scene is renowned for its coastline and diverse neighborhoods, making it an enticing prospect for both buyers and sellers. As you contemplate real estate decisions in areas like North Park, South Park, Del Cerro, and San Carlos, a crucial question emerges; “should I buy a house now”?

For Buyers; Embracing the San Diego Market

Should you buy a house now in San Diego? There are compelling reasons to do so at this time. Our inventory is still rather low. What this means is that you will have less competition than when interest rates fall and everyone that was on the fence jumps in.

Gen Z and Millennials - Do you want to buy a home at some point in the future graph — Gen Z and Millennials – Do you want to buy a home at some point in the future graph

Buy a House Inland with Appealing Prices

While North Park and South Park exude urban charm, neighborhoods such as San Carlos or La Mesa offer larger homes for a lower price than in the metro area. They also offer spacious living areas that are perfect for those seeking a quieter lifestyle.

4681 Pomona Drive — Bungalow Home located in La Mesa

Interest. Buy a House with Long-Term Investment Potential

Given the interest rates, investing in San Diego real estate proves to be a prudent long-term decision. Areas like La Mesa, the College Area, Clairemont, and San Carlos not only provide affordability. Also, it promises significant growth in property values. There are various lifestyle options to choose from when you buy a house in San Diego. The city provides a range of lifestyle choices, from the busier streets of North Park to the serene spaces in San Carlos, catering to different preferences and needs.

For Sellers: A Lucrative Market for Profitable Sales

Sellers in San Diego’s real estate market can reap benefits, particularly in sought-after neighborhoods such as North Park, South Park, and surrounding neighborhoods. We have consistent buyer Interest. The continuous influx of buyers, including those seeking to buy a house in peaceful neighborhoods like San Carlos and La Mesa, ensures an active market.

Advantages of Equity When You Buy a House:

Those who have invested in these neighborhoods in San Diego can expect a return on investment based on market trends throughout the years.

2024 San Diego Housing Market Trends & Predictions - Featured Image — 2024 San Diego Housing Market Trends & Predictions – Featured Image

Predictions for Future Market Trends:

Considering potential shifts in the real estate market selling properties now in areas like Del Cerro, or metro neighborhoods in San Diego could be a strategic move to maximize profits.

Highlighting Neighborhoods in San Diego:

North Park and South Park have a perfect blend of urban appeal and community charm.
Buyers are consistently drawn to North Park and South Park due to their combination of charm and modern amenities. If you choose to buy a house in these neighborhoods, you’ll have a variety of options ranging from historic homes to contemporary apartments that cater to a diverse range of buyers.

Del Cerro and San Carlos; Hidden Gems of Suburbia.

View from home in Del Cerro — View of Lake Murray from Home in Del Cerro

Del Cerro and San Carlos embody the essence of living in San Diego. Renowned for their residences, top-notch schools, and family-oriented atmosphere, these neighborhoods provide a haven for those seeking a more relaxed lifestyle while still enjoying the conveniences of city life.

Making Informed Choices in the San Diego Housing Market. Effectively navigating the active real estate market in areas like North Park or tranquil locales such as San Carlos requires decision-making and staying well-informed.

Here are some crucial tips to keep in mind

Research and Knowledge; stay up to date with market trends. Gather specific insights about different neighborhoods.
Seek expert advice and guidance from real estate professionals who can provide expertise in various areas within San Diego.
Preparation is Key: Ensure that you are financially prepared, whether you’re planning to buy a property in South Park or sell one in Del Cerro.

Conclusion:

Delaying Might Not Be Advantageous. To sum it up, the present real estate market in San Diego presents opportunities for both buyers and sellers. With a range of neighborhoods, like North Park, South Park, Del Cerro, San Carlos, La Mesa, and several others, there is a place to suit everyone’s desires and requirements.

Now is the moment to take action in the San Diego real estate market, whether you’re looking to buy a house or sell a home for a substantial profit. Contact the McT Real Estate Group for a free and no-hassle consultation. Let’s talk about your Real Estate options.

Owning a Home Beyond Finances, It’s Advantages

Owning a home or a piece of property truly alters one’s journey in life. Sure, there are monetary aspects to try and consider when diving into homeownership, but there’s an essence to a home that goes far and beyond those dollar signs. At the end of the day, It’s the immeasurable values and feelings that transform a house into a home.

Let’s delve into some of these priceless reasons to embark on the homeownership path.

Having the Freedom to Personalize Your Own Home

Owning a home feels like having your own personal canvas and space. When it’s yours, aside from a few community guidelines to consider, you’re practically in the driver’s seat. Want to add a splash of color, redo the entire kitchen, or how about changing up the floorboards? Go for it! the possibilities become totally endless when you own the home. Purchasing a home is a total investment but it hands you the paintbrush and opens up the opportunity to craft a space that truly reflects who you are inside and out.

According to Investopedia’s perspective:

“One often-cited benefit of homeownership is the knowledge that you own your little corner of the world. You can customize your house, remodel, paint, and decorate without the need to get permission from a landlord.”

When you’re renting there are definitely limits, it often feels like you’re living in someone else’s space. You know what I am saying? Even if you add some personal touches here and there, there’s always the lingering thought of having to reverse them back just to keep your deposit still in check when the time comes. When you own the home it’s totally a different story, it’s like a canvas you can paint however you wish. Sidenote, sometimes these minor home improvements can even increase the value of your property. A win-win situation you might say. This freedom to shape your space not only instills a sense of pride but also deepens your bond with the place you call home.

The Perfect Nest or Home to Grow and Nurture Your Family

Throughout the various chapters of our lives, we all seek a sense of steadiness and reliability. It’s human nature, this yearning stems from the inevitable truth that life is ever-evolving, and the needs and wants we had before might be shifting to a different path sooner or later. Amidst these shifts, the warmth and constancy of a familiar home can provide immense solace. Having a place to call your own, without the frequent upheavals of moving, offers both you and your loved ones a heightened sense of comfort and assurance in the long run.

An essential aspect to ponder is understanding your current position in life’s tapestry. As highlighted by a recent article in U.S. News…

“For those with young children, buying a home and putting down roots is a major driver. . . . You don’t want the upheaval of a massive rent increase or a non-renewed lease to impact your sense of stability.”

Deepened Connection Within Your Local Community

When you own a home, it gradually deepens your bond with the neighborhood. On average, homeowners tend to stay in their properties for around nine years, as reported by the National Association of Realtors. Over those years, it’s only human to form close friendships and establish meaningful connections within the community that you live in.

In the words of Gary Acosta, who leads and co-founded the National Association of Hispanic Real Estate Professionals (NAHREP), he mentions:

“Homeowners also tend to be more active in their local communities . . .”

Having your own home strengthens your bond with the community. When you genuinely value the neighbors around you, you naturally want to give back and enrich your local surroundings.

Deepened Connection Within Your Local Community - Planting Image — Deepened Connection Within Your Local Community – Planting Image

In Conclusion

Having a home you can call your own deepens your bond with your personal goals. Possessing a house enriches your life, fostering feelings of achievement, pride, and a solid foundation. True, it is a lifelong investment but If the idea of homeownership is on your mind, and you’re keen to explore it further, feel free to reach out to the McT Real Estate Group Team.

How Remote Work is Shaping the Hunt for Dream Homes

The working landscape in the U.S. and even around the world. has taken a significant turn lately, with remote jobs leading the way. Experts believe that this trend isn’t just a phase anymore; in fact, they predict by 2025, a whopping 36.2 million Americans will embrace the remote work lifestyle. To put that more into context, before all this pandemic madness a few years back, only about 7 million folks were working from their couches or home offices.

Now, if you’re on the hunt for a new home and you’re still enjoying the flexibility of a remote job, be it full-time or part-time, this is a game-changer. Embracing this shift offers a unique advantage. Not only can you potentially explore areas with better housing affordability, but you also have the added bonus of dodging the dense competition in saturated markets. With the current challenges in housing prices and limited inventory, this might just be the edge you need over other homebuyers. Plus, think about the joy of setting up a home office with a view you truly adore.

Girl Remotely Working Image — Remote Working Image

Why Remote Work Could Boost Your Buying Power

With the flexibility of remote work around the corner, you don’t have to stick to searching for homes just near the office or even the same state. Forget that daily commute and the struggle to find transportation, right? This means you could practically consider living a tad further out, maybe in the quieter suburbs rather than the bustling city. Doing so can surprisingly bring more affordable homes onto your radar and really expand the homes you could choose from. Just to back this up, there’s a cool study from Fannie Mae that breaks this down.

“Home affordability may also be a reason why we saw an increase in remote workers’ willingness to relocate or live farther away from their workplace . . .”

Being open to different locations can really help stretch your budget. The housing market and the prices of homes can differ from state to state which opens up a lot of opportunities for you.
Reach out to your real estate agent and maybe explore areas where you might get the most bang for your buck.

How Remote Work Opens Up More Opportunity in Finding the Right Home

When you broaden the horizons of your home search, it’s not just about hunting for a bargain. Suddenly, with the flexibility of not being tied down to a traditional office-based role, you’re giving yourself the chance to discover homes and neighborhoods that might’ve previously been off your radar. It’s like allowing yourself a moment to dream a little bigger, to picture yourself in spaces and places you hadn’t imagined before, enriching your life and daily experiences

In today’s tight market, landing that perfect home can feel like a battle of the needle-in-a-haystack quest. But by broadening your horizons, you’re increasing your odds of finding a place that truly resonates with your way of life, from sprawling spaces to varied architectural styles, and vibrant neighborhood perks.

Gone are the days when living a stone’s throw from the office was the ultimate goal, often costing an arm and a leg if you think about it. The game’s already changed. If your work’s gone digital and the office is just a click away, why not prioritize living where your heart (and budget) feels right? Now’s the time to chase after those dream home details without the dread of tiresome daily drives.

Conclusion

Working remotely isn’t just about job flexibility anymore. It’s a game changer in the world of home hunting. Suddenly, you’re not just thinking about a short commute or proximity to the office; the world—or at least the city—becomes your oyster. Without the constraints of a fixed workplace, your horizons broaden and your options multiply tenfold. Whether you’re dreaming of a beachfront oasis, a home nestled in the mountains, or a quiet neighborhood to call your own, this shift in work culture can truly open doors to places you’d never thought possible.

Curious about the endless possibilities? Reach out to us at the McT Real Estate Group. Let’s explore how this newfound freedom can lead you right to the doorstep of your dream home!

Owning a Home Beyond Finances, Its Advantages

Home Price Forecast Trends for the Next 5 Years

When setting out to purchase your dream home, it’s crucial to factor in expert forecasts on future home price movements so you can get the most bang for your buck. Despite some bleak headlines from the media in the past year of how the housing market will come crashing down this year, home values have been quite resilient and have even seen steady growth nationwide. Let’s dive into this topic using data terms, shall we, and you’ll find most specialists anticipate and forecast a continued rise in property prices.

Anticipated Continued Growth in Home Values

In a recent Home Price Expectation Survey (HPES), Pulsenomics has gathered insights from more than 100 professionals of different calibers, including economists, investment planners, and real estate market specialists. This survey reveals the panel’s collective outlook and input on home prices for the upcoming five years. The consensus and breakdown? A steady rise in home values each year until 2027. Check out the detailed graph below to see these expert predictions.

Have you ever come across online articles and headlines painting a gloomy picture of falling home prices and felt a pang of concern? Well, let’s clear the air, shall we? Even though home prices might see fluctuations in local markets from time to time, the national consensus among experts is promising that home prices are set to climb for the foreseeable future. This shift suggests a return to a more stable, regular home price growth.

Interestingly, even if the rate of appreciation in 2024 is a tad slower than in 2023, it’s essential to see the bigger picture in the long run. At the end of the day, home appreciation truly compounds. Meaning, that if the gurus are on point and the forecast data are accurate, your home’s value goes up by 3.32% this year, and you can anticipate another bump of around 2.17% the following year. This kind of scenario underscores the timeless wisdom and investment: homeownership usually tends to be a long-term winner in the wealth-building game.

How Does This Impact You Directly per se?

Owning a home isn’t just about having a place to call your own; it’s also a long-term investment itself if you’re going to think about it. As home prices tend to rise, so does the value of your property.

Curious about potential growth in a typical home’s value? I know these numbers are lower than what we are accustomed to see with home prices in San Diego but, let’s study and dive into the chart below; these insights are from the latest expert forecasts by HPES.

Just imagine and visualize you purchased a home for around $400,000 at the start of the year. Taking into account predictions from the HPES and using the right formula, your home could contribute over $71,000 to your personal wealth in just half a decade. Quite tempting and intriguing, right? Consider this: Homeownership is not just about having a place to call yours; it’s a strategic move to boost your financial well-being over time.

In Conclusion

Industry professionals, based on data, anticipate a steady rise in home prices within the coming half-decade. For those who are contemplating homeownership and looking for a place to call their home, taking the leap now could be a smart move for future financial growth as the value of homes—and consequently your personal assets—increases. Let’s touch base and embark on your home-buying journey together.

Feel free to reach out to the McT Real Estate Group to get you started on your home-buying journey and if you have any questions about real estate!

Home Price Growth: Resurgence of Seasonal Trends

Home Equity: A Strategic Move for Your Retirement Plans

Reaching the age of retirement is a big deal for anyone. You know the usual saying: when one door closes, another one opens? Well, that quote fits well here, as opportunities often knock. You might be thinking about selling your home during this phase. Finding a place that better fits your new lifestyle and needs is usually the end-term goal. The great news? Making that first step might be easier than you might think, especially with your current Home Equity.

Think About the Length of Time You’ve Owned Your Home

In the past, between 1985 and 2009, homeowners typically held onto their properties for about six years on average. Fast forward to the present, and you’ll find that the game has changed. Let’s refer to the data below from the National Association of Realtors (NAR). It indicates that since 2010, the average length of homeownership has stretched to just a little over nine years.

How Long Homeowners are Staying in their Houses Graph — How Long Homeowners are Staying in Their Houses Graph

In recent years, many homeowners have found themselves staying in their properties for a longer period of time. During such a lengthy residency and the tenure of staying in your home, life just doesn’t stand still.
It gradually evolves, bringing with it new milestones, challenges, and some shifts in your needs. If you discover that your current residence isn’t aligning with your changing lifestyle, don’t worry. There could be a home out there that’s a better fit for your new set of requirements. Usually, there are options for upsizing or downsizing, depending on what you’re looking for.

A Deep Dive into Equity and Discovering Untapped Wealth

If you’ve been residing in your home for an extended period of time, chances are you’ve amassed a considerable amount of equity already that can serve as a financial springboard for your next property venture. This equity accumulates in two key ways: first, through the gradual reduction of your current mortgage balance, and second, appreciation in your home’s value over time. Usually through home renovations and improvements throughout the years. The longer you’ve lived in your residence, the more financial gains you stand to reap. It’s more like you reap what you sow kind of saying.

To underscore this point, statistics from the Federal Housing Finance Agency (FHFA) offer illuminating insights, as depicted in the graph below:

How Home Price Have Grown Over Time Graph — How Home Prices Have Grown Over Time Graph

In various local markets, home prices can certainly differ depending on which state you currently live in. Yet, nationally speaking, the data is compelling: homeowners who’ve settled into their residences for about five years have witnessed a remarkable 60% uptick in their home value. If you’ve been a long-term investor in your own home, say for around three decades, your property’s value has likely close to tripled during that period.

Whether you’re contemplating downsizing, considering relocating to your dream neighborhood or just yearning to be nearer to your social circle, that built-up equity can serve as a financial lever in your next move.

Your housing aspirations are totally achievable at the end of the day, and finding the right real estate agent can be a key instrument in that journey. The real estate agent you’re looking for doesn’t just help you list your existing home; they’re also your partner in getting the next property that aligns with your ideal lifestyle and future ambitions.

In Summary

As you navigate the path towards retirement, truly grasping the value of your home equity is like unlocking a treasure chest. It’s not just numbers on paper; it’s the culmination of years of hard work, memories, and dreams. Let’s take a moment to appreciate the equity you’ve amassed over these years. By partnering together, we’ll align this value with your evolving housing desires. Think of it as piecing together a puzzle; with meticulous planning and the guidance of a trusted real estate professional, your home equity becomes a pivotal piece, paving the way to your dream home in the next chapter of your life.

Please don’t hesitate to touch base with us at the McT Real Estate Group. Whether you’re just mulling over some ideas or ready to make decisive moves, we’re here to offer a one-on-one personalized consultation. Let’s dive deep into maximizing your real estate assets and strategize for that comfortable retirement you’ve been dreaming of. Remember, it’s never too early or too late to plan for the future, and we’d be honored to be a part of that journey with you.

Owning a Home Beyond Finances, Its Advantages

2023 Home Price Forecasts: What the Experts Are Now Saying

As 2022 drew to a close and was about to end its chapter, there were a lot of rumors buzzing around with a lot of predictions that the housing market would tank in the year 2023. The majority of the masses started to get anxious, whether it was first-time home sellers or tenured home investors; They were all asking the same question if we were heading towards another disastrous crash like the one that we had experienced in the year 2008. Surprise though, as it turns out those gloomy headlines missed the mark on their home price forecast predictions.

Instead of plummeting and the crashing downfall most experts were expecting this year, home prices showed surprising resilience amidst all of those rumors going around. After the home pricing rise during what some call the ‘unicorn years,’ or what most people refer to as unsustainable record highs, we did see a minor price adjustment compared to that data. But guess what? It was far from a market collapse.

Now, let’s do a quick reality check by comparing the doom-and-gloom predictions from last year with the latest projections. Even the experts are admitting they were a bit too negative with their home price forecast last year as well.

From Past to Present: How Expert Home Price Predictions Have Evolved

The chart below presents 2023 home price prediction data from seven different organizations. It shows you a side-by-side comparison of their initial projections made in late 2022 highlighted in red, with their most recent updates for where they expect prices to land by year’s end.

As you can see by the glaring scarlet red in the center column, the initial forecasts had predicted a sharp decline in home prices across the board.
However, fast-forward to the rightmost column, and you’ll see a different light in the story. Every expert has since revised their year-end predictions, now expecting home prices to either hold their ground steady or even have a bump or increase. That’s a major turning point from the doom-and-gloom they were all projecting just a year ago.

Stay Ahead of the Curve with Our Cutting-Edge Predictions

You can definitely expect some head-scratching media stories about home prices forecast in the coming months. Why? They often get thrown off by the usual fluctuating ups and downs that come with different seasons. Here’s your sign and turning point to stay one step ahead of the game of any doom-and-gloom headlines.

As the year winds down and the season changes, which is completely normal in any kind of market, you can definitely expect the pace of home price growth will slow down a tad bit. But don’t mistake this for plummeting prices or a downward spiral—it’s more like gradually tapping the brakes, not slamming them.

In simpler terms or just in summary, a slower increase in home prices doesn’t mean they’re actually falling as you can base it on past predictions.

Final Thoughts

The headlines from a lot of articles and news stories can really shape how most people think, even when they’re off the mark increasing your anxiety in buying or selling a home. Despite last year’s media buzz claiming home prices would plummet and all the home price forecasts, the reality has been quite different, as you might have understood and learned from this article.

Feel free to reach out to the McT Real Estate Group; we’re your go-to source for cutting through the noise with trustworthy info.

Tips for Buying a Vacation Home in San Diego

The rental market for holiday homes has changed significantly with the advent of Airbnb in 2008 and the rebranding of Vrbo in 2019. Now, more people realize that their second or even third home might be a source of income, just like renting out a spare bedroom. Rather than staying in a pricey hotel, homeowners who invest in vacation properties may see the world and hone their real estate investing skills all at once. However, many people are turned off by the idea of having another mortgage, even though owning several homes allows owners to engage in regional arbitrage and gain various tax advantages. Nonetheless, in most jurisdictions, investing in a second home may be a straightforward and lucrative venture. In this blog, we’ll be going over tips for buying a vacation home in San Diego.

Spend only what you can comfortably afford

Nowadays, it’s not hard to figure out how much you can spend. There are several mortgage calculators available online to help you with this. Type in your monthly income and total debt, and the calculator will tell you how much of a loan you can get from the bank.

In the recent decade, there have been significant changes to the economic environment. Following the cessation of the frantic lending practices of recent years, banks have started applying tighter criteria to loan applicants. A 20% down payment is necessary, and your housing and transportation costs combined shouldn’t exceed 36% of your monthly gross income.

Don’t count on rental revenue from a vacation property to cover the mortgage payments. It’s important to keep in mind that you don’t have to buy a beachfront estate with soaring atriums and a boathouse if you don’t want to. It’s fine to take baby steps.

A man stacking coins. — Pay attention to your budget

Spend your heart on it

Many people decide to invest in a second house after coming back from a holiday with the itch to buy something. Before making such a sizable purchase, buyers should do their homework to ensure they fully understand the pros and cons.

In our experience, the most common mistake made by those looking to purchase a second home is overestimating the frequency with which one will use the home. It is also crucial for buyers who want to use the property as a vacation or short-term rental to have a firm grasp on their financial goals. Don’t jump to conclusions. Rather, give serious thought to big decisions.

Consider how you will utilize the area

One of the best tips for buying a vacation home in San Diego is to think about how you want to use the space. According to experts from bravo-moving.com, most people move to vacation houses with large yards, outdoor cooking facilities, and proximity to water. Places like this are great for people who want to spend most of their time outside socializing with loved ones. Would you instead remain in, prepare tasty meals, and read a good book? Cottages and cabins with fireplaces, plush bedrooms, and spacious kitchens could be at the top of your list. Or is your home going to be on a smaller scale? Having a plan for how you’d like to spend your vacation time helps you select a vacation home.

Take the tax consequences into account

Another one of the tips for buying a vacation home in San Diego is to consider the taxes. Don’t assume you know the tax ramifications of owning that home just because you’ve had a primary residence before. It might be trickier with second homes.

Taxes on rental income are something to consider if you want to put the home on the market. You may want to speak with your accountant about this. Your property taxes may increase from what you’re now paying because the vacation area’s tax rate is higher than where you live. Or because this is a second home rather than your primary residence. In some cases, taxes on second homes are usually much higher than taxes on primary homes.

A real estate agent who knows the area well will be able to point some of this out and may even suggest ways to avoid them, like buying property on the edge of town.

Your property taxes can go up from what you’re paying today.

Determine how much time you will actually spend there
Spending so much on a piece of real estate implies you want to visit it frequently. Or at least a few times every year. In addition, how many times you intend to use it is certainly beneficial, but it is also a tough measure to pin down because, as we all know, life happens. The breakeven point will change based on variables such as market value, the amount you invest in the house, and the furnishings and decor you wish to have. For example, you need to calculate moving costs and decoration in your budget. Moving furniture or other things to San Diego and hiring movers can be done with a simple transfer with moving experts. However, it can take a while before you make back your initial investment in the house. The cost could be justified if you plan on spending a lot of time there.

Think about how frequently you will visit or rent your vacation home

Decide if you’ll be on or off the grid

While seclusion is likely crucial to you, it may not come without a price. How important is having access to the Internet? In the most remote areas, coverage could be spotty. Let’s pretend you’ve located the perfect cottage, only to learn that it’s disconnected from the grid and needs a generator to provide power. That’s inconvenient, and depending on whether or not it runs on gas, it might cost you money. Some people just don’t see why they should go through all the trouble.

The question is, “From where will you get your water?” This may be important in cottage country. Is there already water suitable for human consumption, or would you have to construct a treatment facility? Winter road upkeep is another crucial aspect. Certain municipalities or chalet communities may send out snowplows in the event of significant snowfall, while others may not. Having a firm grasp on your absolute must-haves in a getaway home can help you choose the perfect place without any unwanted surprises.

In conclusion

Just chill out, gather your thoughts, and think about these tips for buying a vacation home in San Diego. Don’t move until you’ve verified your own math. The last thing you want to do is lose both your vacation time and your savings on a poor investment.

4 Things to Do Before Hiring a Real Estate Agent

A skilled real estate agent like Mary McTernan from McT Real Estate Group can make or break your buying and selling experience, but it’s up to you to do your due diligence before hiring a pro, let alone making a formal agreement. Keep reading for tips for first-time home buyers and sellers about the process and outcomes.

Buyers should speak with a lender first to determine their budget, while sellers should get their house clean and clutter-free. But that’s just the tip of the iceberg. Here’s everything you need to put on your to-do list so you can make the buying process as stress-free as possible.

Nail Down Financing

While the topic is somewhat debatable, most real estate professionals won’t even begin to work with you unless you already have a pre-approval letter for a mortgage. Along with determining how much you can afford, this will also indicate your interest rate. Not to mention, sellers will take you more seriously.

Getting a Mortgage — Mortgage application

You’re going to want to speak to several lenders before making a decision. Ask key questions such as:

● What type of loan is best? A good lender will gather enough information on each and explain the pros and cons.
● What are the interest and annual percentage rates?
● What are current Federal Reserve mortgage interest rates?
● What are the discount points and origination fees?
● What is the estimated loan cost and can the rate be locked?
● Is there a repayment penalty?
● How much time is needed to acquire funding?
● Are on-time closings guaranteed?
● What are all of the costs?

Assess the Competition

Not only does visiting other open houses in the area help you determine what you can afford in the area, but it’s also a great way to see other agents in action — you may even decide that one of them is right for you. It’s also a good way to get a feel for the neighborhood.

Know What You Want

You’re going to want to have a solid idea of what type of home you’re looking for before speaking with an agent so there aren’t any crossed signals. Some factors to consider are what type of floor plan will fit your needs (i.e., number of rooms, flow, views, etc.); type of neighborhood, amenities, and conveniences that are of importance to you; the type of home; whether or not you plan on staying for the long-term; and, of course, budget.

Interview Potential Candidates

Don’t be afraid to ask detailed questions as their responses will only help you select the right agent for you. For example:

● How will you market my home?
● What’s your ratio of buyers to sellers?
● How many homes are you currently handling?
● What’s the average number of days your listings are on the market?
● How long have you been in business?
● Are you full-time or part-time?
● May I see your references and business license?
● How do your fees work?
● Will I be working with you or a team?
● What do you believe will sell this home?

As a buyer, completing tasks like getting your finances in order, visiting open houses, and brainstorming what you want in your home before interviewing real estate agents will make the process go so much smoother. If you’re a seller, opt to make your home presentable before interviewing agents. Completing these tasks as either a buyer or seller helps you and your realtor hit the ground running and will get you into a new home or sell your current home in no time! And for the best possible buying and selling results in the San Diego area, work with skilled and experienced real estate professionals from the McT Real Estate Group at 619-736-7003.

Which Realtor Should I Work With?

Move, Launch, Learn: Simultaneously Tackle Big Life Events

Starting a business is an exciting venture, but many people find that when they launch an entrepreneurial endeavor — particularly one that’s based from home — there’s often no adequate space to effectively combine work and family life.

If you think your current home isn’t going to be large enough to accommodate your operations, working with a reputable realtor and timing a move to a larger house while simultaneously starting a business can be beneficial in many ways.

Assess Your Space Needs

All home-based businesses require different accommodations. For example, consultants or computer programmers may only need a dedicated office space for a computer and file storage. On the other hand, if you’re making, storing, and selling handmade soaps (for instance), you’re going to need a lot more room for inventory, taking photos for your website, and maybe even packing products for shipping.

According to the U.S. Small Business Administration, it’s wise to assess how much space you’ll need to successfully operate your company while keeping it separate from “home.” Keep in mind that home-based business owners can deduct costs associated with home office space and business operations. This can help offset the cost of a new and larger home purchase if that’s what you ultimately decide you need.

Working With A Real Estate Professional

While you can certainly start or even conduct your entire house-hunting journey online, a seasoned real estate agent can be a good resource for helping you find properties that meet your very specific home-based business needs, as well as the needs of your family. This person should be an advocate with knowledge and experience in helping people who need to combine work and home. For example, they’ll know to look for properties with a casita or a separate private entrance or a home with a master bedroom or office space located in a secluded area of a home away from household traffic. If you decide to work with an agent, be very specific about your needs so they can help you find the perfect property.

Coordinating Your Business Launch And Move

If you ultimately end up moving to a new home and launching your business at the same time, you can reduce stress by carefully coordinating your logistics. Getting your office and workspace set up and operational should be a top priority. Keep all of your business-related materials in one place, and consider transporting them yourself rather than handing them over to movers. This way, you’ll know where everything is and have easy access to it.
If possible, go with a soft launch rather than a grand opening, so you can successfully get settled into your new home. Ask for help as necessary during this period to ensure you can focus on your business.

Successful Business Operations

As you settle into your new home and get your business up and running, you’ll likely be focused on understanding your target demographic and learning how best to market and promote your product or services. You may find at some point that pursuing an advanced degree is beneficial to helping you grow, diversify, and expand your operations. This is particularly true if your business is related to internet technology, an industry where it’s critical to be well-versed in the most up-to-date technologies.

Consultants also benefit from advanced education, either in their field of focus or in business and marketing. Look into online programs that allow you to learn at your own pace in your own space. You’re also likely to find that you’re able to start incorporating what you’re learning into your everyday work right away.

Starting a business, making the move, and staying educated on best practices in your industry simultaneously can sound like a tall order. However, it’s also an ambitious and exciting undertaking that can pay big dividends. Plan accordingly and map out your needs before making any decisions, and don’t hesitate to ask for outside help. For real estate advice and more, contact McT Real Estate Group at 619-736-7003.

Have You Outgrown Your Home Office?

Working from home can be a dream come true for many small business owners — flexible schedule, no commute, casual dress code — but the McT Real Estate Group knows it has its drawbacks as well. Sometimes your home office is merely a designated nook, a space in your kitchen, or an extra bedroom that is just too small.

Here are a few indications that you may have outgrown your current home office:

You’re constantly having to move things in order to get work done.
Business supplies or equipment are in other areas of the house.
Noise is a problem.
In-person meetings need to be held in the kitchen or living room.
You find it difficult to concentrate.

woman sitting at her desk working on the computer from home — working from home

Remove the Barriers to Productivity

For an optimal work environment, it’s not necessary to have a large home office, but it should be as self-contained as possible, with plenty of room for storage. Ideally, there is room for at least one additional chair, so you can meet with clients or vendors privately, or just to step away from your standard workspace to brainstorm or meditate. In addition, it’s preferable to have your office in a quiet part of the house with a solid door to muffle sounds.

Your desk or work surface should be conducive to your specific job, with the right amount of space and storage. A comfortable, supportive chair makes a huge difference if you spend hours at your desk. You may even want to have a mini-fridge and coffee maker in your office, so you don’t need to make trips to the kitchen throughout the day.

Consider whether your desktop computer or laptop is in need of an upgrade. As more services move to the Cloud and applications grow more powerful and demanding, older models can struggle to keep up. That doesn’t mean you have to shell out a ton of money, however. Discounts and online sales can net you good deals on many models and styles of electronic equipment.

Make the Move

If your office isn’t set up for the success of your business, it may be time to remodel your home or search for a new house that has the kind of office space you need. San Diego real estate is always in demand, so if you’re looking to make the move, it’s best to start the process early and give yourself time to find the best options available.

Use a mortgage calculator to factor in your household income, debt-to-income ratio, credit score and approximate down payment, so you can determine how much you can afford.
Apply for mortgage pre-approval before actively searching for a home, so you can jump quickly on the right house when it comes on the market.
Find a real estate agent who is knowledgeable about your desired area, price point and requirements as a home-based business owner.

Form an LLC

If you haven’t done so already, consider forming an LLC, or limited liability company. As SmartAsset notes, it provides legal protection for your personal assets and avoids double taxation, because your business income isn’t taxed before you draw personal income from it. An LLC has more flexibility and requires less paperwork than a corporation. Best of all, you don’t need a lawyer to facilitate the process. Skip an attorney’s fees by completing the process yourself online through a formation service. Rules for forming an LLC vary by state, so make sure you know the local regulations before proceeding.

Your home office is “command central” for your livelihood, so it should work as hard for you as you do for your business. If your current space is hampering your productivity or frustrating your efforts, it might be the right time to explore new options. Connect with McT Real Estate Group for help in finding the right space to help take your personal and professional life to the next level!

Kids’ Opinions Matter When Buying a Home in San Diego

Recently, Harris Poll conducted a survey that SunTrust Mortgage released. It stated that the kids’ opinions under 18 played a large role in their home buying decision.

When looked at in detail, the results showed that 74% of homeowners, parents ages 18-36 said their kids’ opinions paid a huge role in choosing which house they bought when buying a home. Eighty-three percent of renters said their children’s input would be taken strongly into consideration when buying a home in the future.

Here are some of the most important features that matter to a kid when parents are buying a home

Kids’ most important-desirable part of any new home is that they will have their own bedrooms. A nice backyard came in right behind. This is so true when selling houses in North Park, South Park, and other San Diego urban neighborhoods. We can witness it when we do our open houses on the weekends. Kids are very vocal when they like the house. When they don’t, they also are vocal and want to be heard.

Todd Chamberlain, Head of Mortgage Banking at SunTrust, explained the train of thought behind the survey.

“As a parent of two kids, I know from experience that including children in the home buying process is not only fun for the whole family, but also educational for our homebuyers of tomorrow.”

Conclusion:

If you have a home that you are thinking of selling, remember to emphasize the kid-friendly features that come with your house that kids will love. After all, they will have a huge impact on whether their parents are buying the home or not.

Lastly, contact the McT Real Estate Group at 619-736-7003 for expert Real Estate advice. We will assist and guide you through every detail to help you receive the highest dollar amount for your investment.

See Tips for Selling Your House in San Diego

View Homes For Sale in San Diego

A Fixer-Upper For A First Time Home Buyer- What To Expect

Things to Expect When Buying a Fixer-Upper for Your First Home

If you are faint of heart, buying a fixer-upper may not be for you. However, for many first-time homebuyers, it’s a great way to get into the market today. Make sure you are familiar with what it will take to renovate a house and what the buying process will be before jumping in with both feet. Here are some tips that will help you understand the process of what it takes when you buy a fixer-upper.

What to Expect When Buying a Fixer-Upper

In San Diego, at the time I am writing this post, the average list price of a fixer-upper home is approximately $800,000. If you search for a home in North Park or South Park, it is anywhere from $700,000- $850,00. Keep these things in mind when you start searching for a fixer-upper in your area.

Basics on Budgeting: Always think of resale when the home is all fixed up. Work backward and factor in the cost of repairs that it will take for this project. When making an offer on a house, take into consideration how much it will cost to remodel the home and will you recoup your money and some. Renovation loans are something to look into. A single mortgage would cover the remodelling costs making it easier to fund the project.

Pick Your Projects Wisely: When finding a potential fixer-upper in need of home renovations, make sure that you are searching for projects that are more cosmetic than structural. As a first-time home buyer, dealing with structural projects can be overwhelming, and the costs of repairing will add up. Never waive a home inspection. It is essential to have a good home inspector on your side who will help you determine whether remodeling this home will pay off in the long run.

Tackling the Project

Getting in over your head is no fun. Make a list of things that must be done right away and things that you would like to do. Prioritizing will make the process less stressful.

Using the Right Tools: The most cost-effective way to tackle a fixer-upper is to do the work yourself, that is, of course, if you are handy and know how to do some of the work. If you’re starting from scratch, it will be well worth investing in the right power tools. Consult a list of essential tools for DIY, such as this one from Fine Homebuilding. A few essentials include a drill, sander, jigsaw, basic toolbox, and ladder.
Start With Structural Changes: If you need to make any structural changes or the exterior needs work, prioritize those projects first. Otherwise, you may end up undoing some of the cosmetic work you’ve already done inside.
What Makes the Most Sense? Even if you have projects that you want to put on the top of your list, focus on what makes the most sense to do first. You may be tempted to rip down the ugly wallpaper that is on the walls, but it may make more sense to install the floors first since you will be moving furniture in; that is of course if you are planning on moving in. Then you can tackle the wallpaper.

Is Your Space Livable? If you are a person that likes to cook your meals, then, you may want to put the kitchen renovation on the top of the list. Then put the next most important project on the list that will make your home livable and less chaotic.

Stay or Sell?

After putting all your love, sweat, and tears into this renovation, you may consider keeping this house instead of selling it for a profit. I have seen this happen on many occasions. But if you decide that you prefer to sell, by doing a lot of the work yourself, you have a better chance of making a profit.

Think about your end goal when buying a house to flip. You must appeal to a large pool of buyers, so keep this in mind when you renovate the home. Even though it is challenging to figure it all out beforehand, make your list before you start. Work with an experienced Realtor who can help you with this process. Buying a fixer-upper can be exciting if you are up to the task.

If you would like more information on fixer-upper homes for sale in North Park, South Park or any other neighbourhood in San Diego, contact the McT Real Estate Group right away.

See Homes For Sale In North Park San Diego

How To Get Ready For a Mortgage Before You Need One

Getting Ready for a Mortgage?

Are you waiting until you are ready to move out of your current home to begin the process of getting financially prepared to buy a home? Most people don’t have a pile of cash lying around to buy a home outright. They depend on financing the loan through a bank and having a mortgage. Applying for a loan is not always very easy to do if your finances are not in order.

There are certain requirements that one must pass to secure a mortgage. Don’t wait until the last minute to get everything in order as it will be a bit frustrating if you do.

What Is The First Step To Prepare Your Credit To Buy A Home?

It is always a good thing to know what your credit score is before you start searching for a home. Checking your credit score is so easy these days. Download the “Credit Karma” app to your smartphone, and you will have instant access without taking a hit for pulling credit the traditional way. If your credit score comes back low, you will then have time to start working on raising it. You can also see if there are fraudulent activities showing up and work on getting them off immediately. This will take some time to remove so getting a head start is always a smart move on your end.

One way of raising your score is to set up payment reminders. You can set this up either on your google calendar or directly with your bank. Setting these up with text or emails is probably the easiest way and quickest to start seeing that score rise quickly.

Lowest Interest Rates Available

Everyone is always searching for who has the lowest interest rates available when buying a home. You’ll find that you will need a Fico Score of 760 or higher to take advantage of the lowest interest available. If your loan is less than this, don’t worry, most lenders require that your Fico is at least 620 or more for a conventional mortgage. The interest won’t be as low as if you had a 760 but it is still not bad because of how low our interest rates are these days.

Applying for A New Credit Card That You Don’t Need Is a NO NO

Every time that you apply for a new credit card your credit score decreases a little bit. So, if you don’t need one, just don’t do it. The only time I would recommend applying for a credit card is if you are one of those people that have paid everything in cash. Kudos to you but in the credit world, unfortunately, this is a bad thing. If you don’t already have credit, lenders do not want to lend you money. Go figure.

Get Those Credit Cards Paid Down

I know that it is easier said than done but paying your credit cards down is one of the best ways to get ready to buy a home. If you find yourself with several credit cards, try paying the one with the smallest amount on them. Once that is paid off, you take that payment that would have gone into paying that card and roll it over to the next one with the smaller amount on it, and so on….

Your Report Shows Errors

When fraudulent activity has taken place behind the scenes, this can hurt your credit score in a big way. It is recommended that you check your credit score once a year. Go line by line and if something is not right, contact the Federal Trade Commission for tips on disputing and getting these things removed from your credit.

Old Accounts Are Old But Closing Them Could Harm Your Score

You may not have used a specific credit card for a long time. Now is not the time to close it. It would then show that you have less available credit and decrease the average length of time that you have had credit.

Save Money For Down Payment And Closing Costs

Alas, saving for the downpayment. When buying a house, you will have the down payment, and then the rest is what you will take out on a mortgage loan. Most people think that they can’t afford to save 20%, but they will be able to afford the monthly mortgage payment. This is when you have to go over the numbers with your Mortgage Broker/Lender. These days you don’t have to come in with 20% down. There are many loan options including a 3.5% down payment (FHA). If you have a military background, you don’t even have to have a down payment. Know that this comes with a price with an FHA loan. You will have to pay MI (mortgage insurance) until the equity in the house builds up to 20%. At that time you can have it removed with a little bit of back and forth with the bank that owns the loan. Know that the higher the down payment and credit score, the lower the interest rate that you will have.

5 Questions To Ask Your Lender

Do you offer loan rate locks?
What are your closing costs?
What are the Origination Fees and Discount Points?
What is the interest rate?
Is the mortgage rate fixed or an ARM rate?
What is the monthly mortgage payment?
Does the monthly payment include PITI (principal, interest, taxes, and insurance)?
What is the minimum payment necessary for that monthly payment?

Buying A Home In San Diego?

Homes For Sale In San Diego

Closing Costs When Selling a Home in San Diego

When you’re on the brink of selling your home in North Park, San Diego, or anywhere in Southern California, you’re likely to come across a term called “Closing Costs.” These costs, both for Home Buyers and Home Sellers, can often become confusing. While some of these costs are fixed, others can definitely be negotiated. This is where the expertise of a knowledgeable Realtor becomes invaluable. Their insights can prevent potential financial pitfalls, ensuring a smoother transaction. It is always best to have a savvy Real Estate team working on your behalf. The McT Real Estate Group is here to help! Reach out to discuss how we can make this journey easier for you.

The Anatomy of Closing Costs in San Diego

The city of San Diego, famous for its beaches and beautiful weather, is also known for its unique real estate landscape. Closing costs are a significant part of this. But what exactly are they? Closing costs are the various fees and expenses that both buyers and sellers incur during the real estate transaction process. These costs can vary widely based on the property value, the loan amount, and the agreements made during the negotiation process. For buyers, these costs typically include loan origination fees, credit report charges, appraisals, title insurance, and more. Sellers, on the other hand, might be responsible for agent commissions, title transfer fees, and possible capital gains taxes.

Why Both Buyers and Sellers Face Closing Costs

While it’s common knowledge that buying a property incurs expenses, many are unaware that selling a home comes with its own set of costs. The dynamics of San Diego’s real estate market mean that both parties have a stake in the closing costs. For buyers, these costs are tied to securing financing and transferring the property into their name. This includes fees for loan origination, credit checks, appraisals, and purchasing title insurance—a crucial step to protect against potential title issues.

Navigating the Negotiable and Non-negotiable Fees

The world of closing costs is not black and white. Some charges are set in stone, while others offer wiggle room. It’s all about knowing which is which, and this section will shine a light on that very distinction. Non-negotiable fees typically include county or city transfer taxes, state-mandated documentation fees, and taxes levied by the government. These are fees that neither party can change, as they are determined and required by local and state laws.

On the other hand, many of the fees associated with the lending process can be negotiated, especially in competitive markets like San Diego. These include origination fees charged by the lender for processing a new loan application, credit report fees, and possibly the points charged to lower the interest rate. Additionally, service fees like notary fees, courier fees, and escrow fees can sometimes be shopped around or negotiated down by comparing prices from different providers or even negotiating with the service providers your real estate agent typically uses.

The Role of an Experienced Realtor in Minimizing Costs

There’s a saying that goes, “Sometimes you have to invest money to save money.” Choosing to work with a Realtor may come with expenses, but their deep understanding of the industry can lead to significant savings in the long term. Particularly a Realtor who has experience in buying and selling property, their hands-on knowledge is incredibly valuable when navigating the world of real estate deals.

A seasoned Realtor brings not only a wealth of information about market conditions but also expertise in negotiation strategies and legal requirements. They possess the skills to analyze market trends and use their insights to predict changes that could impact your transaction. This level of proficiency enables them to position your offer or listing effectively, maximizing your gains while minimizing risks and expenses.

Reaching Out for Expert Guidance

In the digital age, help is just a click away. But why is it crucial to contact a professional when dealing with closing costs in San Diego? Let’s delve into the myriad benefits. While online resources provide a good starting point, they cannot replace the personalized advice and local expertise that a professional offers. Closing costs in San Diego can vary significantly depending on the area, the type of property, and even the specifics of a deal. A local expert not only understands these nuances but can also provide strategic advice based on current market conditions and long-term trends.

Professionals can demystify the complex details of fees, taxes, and legal requirements that might otherwise be overlooked. They ensure compliance with local regulations, which can be particularly tricky in San Diego due to its specific laws and ordinances that may differ from other regions. Furthermore, experts in the field have established relationships with other real estate professionals, including lenders, inspectors, and title companies. These relationships can streamline the process, ensuring smoother, faster transactions and potentially even discounts on services.

The Impact of Closing Costs on the Final Property Price

Often, potential home sellers in San Diego are taken aback by the impact of closing costs on their property’s final sale price. By understanding this impact, you can set realistic expectations and avoid unwelcome surprises. Closing costs, which can range from 1% to 3% of the selling price for sellers and sometimes even more for buyers, can significantly affect the net proceeds from a sale. This can be particularly startling for sellers who haven’t accounted for these expenses in their financial planning.

Sellers’ fees include agent commissions, title insurance, escrow fees, and prorated property taxes, all of which must be paid out before the remaining sale proceeds are released. Additionally, sellers may agree to cover certain buyer closing costs to expedite the sale or seal the deal in a competitive market. An experienced realtor on your side will be able to get you the highest dollar amount once everything is said and done.

Personal Experiences: Testimonials of San Diego Home Sellers

Hearing from those who’ve walked the path can offer unparalleled insights. Dive into the real-life experiences of San Diego residents who navigated the maze of closing costs. These testimonials provide a vivid snapshot of the challenges and triumphs faced by local home sellers, offering prospective sellers valuable lessons on what to expect and how to prepare.

For example, John D., a recent seller from North Park, shares how he was initially shocked by the cumulative impact of various closing costs, which he hadn’t fully anticipated: “I knew there would be fees, but seeing them all laid out was a bit overwhelming. Thankfully, my Realtor helped me understand each cost and even negotiated some of the fees, saving me a significant amount.”.

Steps to Take Before Finalizing Your Home Sale

Preparation is key. Before sealing the deal on your San Diego property, there are essential steps every seller should take. We’ll guide you through them, ensuring you’re well-equipped to handle the nuances of a successful transaction. These steps are designed not just to facilitate a smooth sale but also to maximize your property’s marketability and final sale price.

By following the steps provided by our team, you can improve the likelihood of a favorable sale outcome and ensure a more efficient, stress-free selling experience. The McT Real Estate Group is dedicated to guiding you through these stages, utilizing our local expertise and personalized service to achieve exceptional results for every San Diego seller.

The Future of Closing Costs in San Diego

With the ever-evolving real estate landscape, closing costs in San Diego are always changing. What might the future hold? We are constantly consulting with industry experts for their predictions and we have boots on the ground so we can provide a clearer view of potential shifts that could impact buyers and sellers alike.

Industry experts anticipate that as the San Diego market continues to grow in demand and sophistication, we may see a more dynamic structuring of closing costs. Factors influencing these changes include fluctuations in the real estate market, regulatory adjustments, and technological advancements that streamline transaction processes.

FAQs

Why are closing costs essential in real estate transactions? Closing costs cover essential aspects of a real estate transaction, ensuring both parties meet their legal and financial obligations and creating a transparent and trustful environment for property exchange.

Can I avoid some of the closing costs? Certain closing costs are negotiable, but others are mandatory. Having an experienced Realtor can provide guidance on which costs can be negotiated or even potentially waived.

What’s the average percentage for closing costs in San Diego? Typically, closing costs are approximately 1% of the property’s purchase price., plus the negotiated commission. However, this can vary based on several factors, including property type and location.

How does San Diego’s closing cost structure differ from other cities? Every city has its unique real estate regulations and market dynamics. San Diego’s closing costs are influenced by its local laws, demand-supply balance, and regional economic factors.

Why is having a Realtor advantageous during the closing process? A Realtor brings to the table not just market knowledge but also negotiation skills, ensuring you get the best deal while adhering to all legalities.

Are there any hidden fees I should be wary of? While most fees are documented, some might not be immediately apparent. It’s crucial to thoroughly review all documents and seek clarification on any ambiguous charges.

Who Pays Closing Costs When Selling a House?

Both the seller and the buyer have their own closing costs. However, the buyer has fees associated with their loan, while the seller has fees associated with their house, mortgage, and home equity lines if one has been taken out,

Typical Closing Costs When Selling a House

In California, there is a Property Transfer Fee that comes out to $1.10 per thousand dollars of the purchase price. This gets split between the City and the County and is typically paid by the seller. However, in a Seller’s market, this is a good negotiating tool that we have used and has saved our sellers money. While working with buyers, we use this item to get our offer accepted in a tough multiple-offer situation. There are also fees that your bank will charge you, the seller, to close your loan and release the lender’s interest in the property. Yep, you heard it right. There is a fee to loan you money when you buy your home, and there is a fee to stop loaning you money:-). This is what we call a “Demand Statement Fee and Reconveyance Release Fee.” Of course, your Real Estate Taxes must also be paid off during the sale.

Sellers are the ones who pay the Realtor’s commissions as well as 50% of Escrow Fees and Title Insurance. Of course, this is not set in stone but in Southern California, this is usually how it looks financially.

List of Closing Costs When Buying a House

As a homebuyer, there are lots of fees that you will have upfront. Make sure that you have teamed up with a great Realtor and Lender that will go over all of the fees involved when buying a home so that there are no surprises. Below is a breakdown of closing costs when buying a house in San Diego.

Title Insurance-(Lenders title fee on the loan)
Escrow Fee
Homeowner’s Insurance
Wire and Courier Services
Credit Check
Appraisal Fee
Loan Origination Fees
Loan Processing Fees
Underwriting Fees
City Recording Fees

The final dollar amount of fees paid depends on the cost of the home that you are either buying or selling and what you and your realtor have negotiated in the sales contract. Nothing is set in stone in Real Estate, and almost everything is negotiable. All of the fees mentioned above are simply what it costs to buy or sell a home. Besides this, some costs come with negotiating repairs and with termite clearance. Having an experienced Real Estate team on your side will make the process a lot smoother and keep more money in your pocket.

If you are thinking of selling a house or buying a house in North Park, South Park, or any area in San Diego, contact the McT Real Estate Group. We are highly experienced Real Estate negotiators that will work hard on your behalf and are committed to making it a fun and great experience through the process.

Conclusion

Navigating the intricate realm of closing costs in San Diego can indeed be daunting. But with the right guidance, what seems like an uphill task can be simplified. Ensuring you not only save money but also sidestep potential pitfalls is our goal. Remember, the key lies in being well-informed and seeking out expertise when needed. Here’s to a seamless property-selling experience in the jewel of Southern California!

How To Sell a House in San Diego

What to know when buying a for Sale by Owner in San Diego

As you search for homes for sale in San Diego’s hot market, you may come across a “For Sale by Owner”. You may be tempted to knock on the door or call the number advertised. You may think that going directly to the seller, may save you a lot of money. Well, the complete opposite may be true.

Most Home Sellers Will Work With Your Agent

Just because the seller has put their home up for sale by owner does not mean that they will not work with your Realtor. They are well aware that most homebuyers are working with agents so they will agree to pay the buyer’s agent a commission, so do get your agent involved. This will only help you in the long run. A great buyer’s agent is priceless and will not cost you a thing. The seller is the one that will pay for this service that will save you thousands of dollars and aggravation in the long run.

Once you do your inspections, a lot of things will most likely come up that you will want to take a second look at, and may want to renegotiate because of certain repairs needed. Your agent will serve as a buffer and be able to know exactly how to get this negotiated where it makes more sense to your financial pocket. The buying process is an emotional one for both the buyer and seller. Having your agent as your buffer will give you an advantage; you can discuss things over with them before making a decision on certain things the seller is asking for.

Is The Home Priced Right?

Many times a seller who has decided to put their home on the market as a “For Sale by Owner” is doing so because they feel the Real Estate market is so good for sellers right now that they may not need a Realtor. They may have spoken to a few Realtors but have not liked the price that was recommended for their home so they figured they would be able to go at it themselves at a higher price and save the commission.

Your Agent will be able to show you the comps and help you determine what price you should offer if you decide to put an offer on this home. An experienced Realtor will be actively visiting properties in the area and will be well versed with the comps in the neighborhood.

What questions to ask when buying a for sale by owner?

With this being said, when selling a home in San Diego, there are certain disclosures that a seller is supposed to provide to a buyer with the sale of a home. Because the seller of a For Sale by Owner is typically not experienced with these documents, they will not have filled them out and ultimately not realize that they are supposed to disclose certain things about the property.

Your agent will know exactly what questions to ask so that the seller will have to disclose everything they possibly know about the property (the good, the bad and the ugly) without leaving anything out.

If you were to buy this house and all of a sudden you run into a problem with it, you can then re-examine the seller’s disclosures. You may discover that the problem was ongoing and the seller did not disclose it. At this point, you will be able to go back and address the issue and most likely get compensated because the seller did not disclose a “material fact.”

If you are in need of an expert buyer’s agent in San Diego, contact the McT Real Estate Group right now. We will go over the process of buying a home and together come up with a game plan to get you the right home that you desire.

Just Bought the Home- Now What?

Home Inspection – What to Expect a Seller to Fix

You have been searching for a home in North Park for a long time and finally got your offer accepted. Now what? You’re probably asking yourself, what to expect a seller to fix? Hopefully, you are working with an experienced Buyers Agent that has sold more than just a few homes in the area. Most of the homes in North Park are older, built in the early 1900s. Even if they have been remodeled or updated, they are still older homes, and things will come up in the home inspection.

This depends on what type of market we are in. Are we in a buyers market or a seller’s market? We are currently in a seller’s market; so, depending on how many offers the seller received on their property, don’t expect that you will receive much. Also, the home inspection is not meant for the buyer to ask the seller to fix things. It is meant so that you, the buyer, will know more about the property. If something major comes up in the inspection report that you feel is too much for you to take on, this is another story. By major, I mean a cracked sewer line, a crumbling foundation, a leaking roof, or knob and tube wiring, even though the knob and tube wiring are not as major as it may sound to many.

What Should You Expect the Seller to Fix?

If any of these items do come up in the home inspection, it is not the end of the world. Having an experienced buyer’s agent negotiating repairs after the home inspection has been completed is crucial. With the word “experienced,” I mean a Realtor experienced with selling older homes in the North Park, South Park, and the surrounding urban neighborhoods in San Diego. Selling newer homes in San Diego County is completely different. That is more streamlined.

Your Realtor should be able to negotiate with the large ticket items. With this being said, if you expect a seller to fix every single item that came upon the home inspection, you will turn the seller off, and they may decide to move on to one of the other buyers that are waiting in line right behind you.

If this sounds too scary for you, then looking into buying a condo or townhome may be a better fit for you right now. It is a way to get into the Real Estate Market in San Diego, especially North Park, and get comfortable with being a homeowner. By owning a condo or townhome, when something goes wrong with the property, you are not the only one that is responsible. You will have a Home Owners Association that will step in, evaluate the issue, and take care of it.

If you are thinking of buying a home in the North Park, South Park, or other parts of the Urban Neighborhoods in San Diego, contact the McT Real Estate Group. We are the local Real Estate Agents In San Diego’s Metro Neighborhoods. Feel free to read our reviews and see what our clients say about us.

See Just Listed Homes for Sale In North Park

Buying a Home in San Diego from Across the Country

Knowing what you want in a house will enable your Realtor to help you find a neighborhood that suits your lifestyle. Buying a home in San Diego from across the country can be scary. But, if you are teamed up with a great Realtor and have created a list of what’s important to you, it is possible. Do you like yoga? You might want to live near a park or in a neighborhood with a few yoga studios. If you work remotely from your computer, a place with plenty of coffee shops gives you plenty of options to operate your business. If nightlife is your thing, a place like North Park will be right up your alley with tons of restaurants and bars. Whether or not you have children, the proximity to good schools will affect the resale value of homes in some neighborhoods. So, when buying a home in San Diego, make sure that you have a sharp agent aware of this.

snow in the winter — road covered in white snow and bare trees

The Lifestyle in San Diego is different than in other parts of the country. Have you experienced year-round outdoor living before? If you’re moving from New England, as an example, the house prices will seem high, based on the value and square footage that you are accustomed to. That’s because in Connecticut, for example, you have to be inside your house for the whole winter.

Here in San Diego, you can sit in the sun and relax in your garden on a January morning. “But I Love the Skiing,” you say. Not to worry! Bear Mountain is less than a three-hour drive from San Diego, and there are several more nearby. Wouldn’t you love to be able to have fun in the snow and have a short drive back to the year-round sunshine? You don’t have to worry about digging your car out of the snow before work the next morning.

With a lot of cash buyers present, the San Diego market is quite rapid and competitive. If you are buying a home in San Diego, you’ll have to be comfortable with making an offer on a property the first day you see it. That might seem extreme, but it’s the nature of the current market. You’ll see homes for sale that come and go off the market quickly. If you take too long to think about it, you’ll miss out on many great properties. Knowing what you want will give you the confidence you need to move with the fast-paced market that we are experiencing. This leads us to our next key aspect of buying a home in San Diego from across the Country.

Find the Right Real Estate Agent

If you are buying a home in San Diego, you’ll want a local Realtor who’s an expert in the neighborhoods you’re looking at. If you don’t know what neighborhood you want, a good Real Estate Agent will help you with this based on your interests. With this being said, good communication is key.

Depending on whether you are buying a property to invest in or to move for work or retirement, your search for a house will be very different. You’ll want a Realtor that has experience with the type of property you are searching for. If you’re looking at an investment property, find a Realtor that owns investment properties themselves. They will have better insight than a Real Estate Agent that has never purchased an investment property before, or any house at all. They will be able to point out important things to look for and consider and things to be aware of.

Is Your Realtor Tech Savvy?

Today’s technology makes it easy for a tech-savvy Real Estate Agent to use several tools to convey a property accurately from wherever you are. Video walkthroughs, 3D rotating cameras, and video calls can accurately convey much more than still photos.

Video Tour — cartoon of a person videotaping

Make sure your Realtor is familiar with these tools. Also, make sure that you’ll feel confident buying a house that you’ve never physically been inside of. Even though you will see walking video tours, it is still slightly different from being at the property in person. If you are comfortable with this, then you’ll be swinging in your hammock on your back porch in no time. You will be thinking about all those times you were jumping over puddles of ice water on your way to work.

Get Your Ducks in a Row and Pre-Approved

As previously mentioned, it’s a high-speed Real Estate market that we are experiencing. Have patience; you could lose out on a property you like if you’re not 100% ready to go. Have your ducks in a row before you start your home search. One thing to keep in mind is to make sure no obstacles are holding you back.

You’ll need to be pre-approved for a loan, and not just with any lender. An experienced Realtor will have many great referrals for you if you don’t already have someone you are working with. You may have a local Lender where you currently live. Speak to your Realtor about this. We find that working with a local lender near the home you are trying to buy typically works best. They know the timeframes and things to look out for that are not always the same in other parts of the Country. If you think of buying an investment property and not planning to live in it, you will need to get approved for a loan as a non-occupied-owner-investor. Typically, this type of loan requires that you put down at least twenty-five percent when buying a home. On the other hand, if it is not an investment property that you are looking for, but instead, you are planning on moving into the home, you’ll be able to look into an FHA loan. With this type of government loan, you only have to put as low as 3.5 percent, whether it’s a single-family house or a duplex/multi-unit house.

Buying And Selling A Home

You may currently own a home you would need to sell before buying a home in San Diego. Before a homeowner considers accepting your offer and taking their home off the market, they would want to see that your present home is under contract. This can all be very stressful. You may not feel 100% comfortable buying a home without seeing it in person. If so, another option will be to plan on moving to San Diego first. Renting an apartment or home for a couple of months or even a year might make you feel more at ease. There are a lot of short-term rentals available if you decide that this would work better for you. Yearly rentals are available, but they are also competitive. If you find one that you think you want, you will have to move quickly.

For more information on buying a home in San Diego, contact the McT Real Estate Group.

More About Buying a House in San Diego

What Does “In Escrow” or “Sale Pending” Mean?

You notice that a home is for sale on your favorite street in your favorite neighborhood in San Diego. However, there is a sign on it that says “In Escrow.” A little further down, another home for sale has a sign on it that says “Sale Pending.” What does Escrow or Sale Pending actually mean?

In San Diego, once we receive an accepted offer, the buyer will have a certain amount of days to do their home inspections. This will typically be 10-17 days. It all depends on how competitive the market is. Right now, at this current time, it is very competitive. We then negotiate repairs, and while this is going on, we are all waiting on the buyers’ loan approval. This typically takes place within the first 17-21 days. At this point, the buyers must remove all contingencies. That is when the listing agent will put the “In Escrow” or “Sale Pending” sign up. Now the buyers’ are committed and moving forward with the purchase of this home. The chances of them canceling are extremely slim. Although things do happen in life, at this point, if the buyer cancels, their deposit would be at risk.

Search for a house for sale whether in escrow or sale pending — Search for a house to buy, whether in Escrow or Sale Pending

A Home In Escrow May Still Be Available for Sale

As a buyer in San Diego’s Hot Sellers Market, thinking out of the box will help you find a home you would normally not know about. You can still put an offer on one of these homes. This is especially the case if the home just went pending or in escrow. If you really love that house, have your Realtor contact the listing agent to find out the details and see if they will accept backup offers. If so, be the first one in. There may be times when the current buyer gets cold feet or may have a hard time getting a loan. If you have a backup offer in place and the current buyer cancels, you will be able to go under contract without competing with other buyers.

With this being said, you want your agent to determine why the current buyer canceled. It may have been because of something on the inspection. The listing agent is required to provide you with the current inspection, and you will be able to see for yourself. Often, a first-time homebuyer may be scared by what they see on an inspection when it is not scary at all. There may be lots of little things that may seem to be too much for them to handle. In reality, a handyman would be able to go through the punch list and repair all of these small items in no time at all.

Search For Your Home

Even though you put in a backup offer, don’t stop searching for a home in San Diego. The chances of the current buyer backing out of the transaction in this current market are very slim. However, it can happen, and we have had it happen with our listings. However, the buyer knows there is a shortage of homes coming on the market in many cases. If they are working with an experienced Realtor in the area, that Realtor will be able to walk them through the process and get a handyman/contractor to give them a quote and an idea of what it would take to fix the necessary items. At this point, the buyer will usually be at ease and follow through with the sale. If they don’t, you will be in the right place at the right time.

For help finding a home in the San Diego area, contact the McT Real Estate Group at 619-736-7003. We would be honored to help you through the process of buying a home and negotiating on your behalf. Please check our client references. You will be able to read up on the experience.

See Homes Just Listed In San Diego

Dealing With Sellers that Will Not Budge on Selling Price

It’s been several months of going on appointments with your Realtor. You have attended every open house on the weekends. You have had your Realtor write up offers that either get rejected or get no response from the seller. It seems that for every offer you write, you are dealing with sellers that will not budge on the selling price.

This is starting to wear you down now, but you still keep tugging along. Your Realtor continues to send you email alerts every time a new listing hits the market. You find the home that you absolutely must have. When you have your Realtor write up an offer, you tell them all of the reasons that you want to offer less than the list price. Your Realtor shows you the comps in the area that justify the list price. However, you believe you should at least start with a lower offer. This has happened many times now and seems to have become a routine.

Sellers Market

At this point, you should probably step back and take a look at what is happening here. It is obvious that it is a seller’s market right now. But you are still stuck on the fact that you should never write an offer at a list price. This may work in a buyer’s market, but right now, in San Diego’s Metro communities (North Park,South Park, University Heights,Normal Heights, and several others), we are definitely in a seller’s market. We are receiving multiple offers on our listings within the first 5-7 days.

Offers are coming in at or above the list price. If you happen to be an offer that comes in below the list price, most likely you will not receive a counteroffer. You will not have an opportunity to compete with the other offers that came in much higher than yours. Sellers want to just go ahead and accept the offer of the buyer that stepped up to the plate, leaving you with another unanswered response to another offer that you have made.

Not Ready To Buy Yet

With this being said, if you simply don’t feel comfortable writing an offer that is list price or above, it may be time to have a conversation with your Realtor. Deep down inside you may not be ready to make this huge financial commitment of being a homeowner right now. This is normal and ok. Try to figure this out early on so it can save you a lot of time and aggravation. It is ok not to buy a home. It may be better for you to rent right now. Just make sure that you sit down with your lender/mortgage broker and or accountant and do the numbers. If it makes more sense for you to rent for the next few years, then sit tight and take a breather.

Wait until you are financially and mentally ready. Contact the McT Real Estate Group. We will sit down with you and come up with a strategic plan to help you with your Real Estate goals. Finding a home will become less stressful and make more sense to you at that time. You will be in a different mindset. You will then notice your offers getting accepted or at least countered.

Not buying a home is the single biggest millennial mistake

Not Buying A Home?

While some people who are not buying a home think that it’s “the American nightmare,” self-made millionaire David Bach is doubling down on his faith in real estate. He thinks that not prioritizing homeownership is “the single biggest mistake millennials are making.”

Being in the Real Estate Business in San Diego for over 13 years, I too feel the same way. Over the years I have seen the benefits of people who bought homes many years ago, even when they thought that it was going to be a challenge and costly; however, fast forward, to selling that property now, these people walk away and have moved somewhere else where the cost of living is a lot less, and now they have a lovely nest egg. If these same people had decided to rent instead of buying a home back then, they would be leaving with nothing but memories.

Buying a home is “an escalator to wealth,” Bach tells CNBC.

Young adults, in particular, aren’t hopping on this escalator, and it’s a costly mistake, Bach warns: “If millennials don’t buy a home, their chances of actually having any wealth in this country are little to none. The average homeowner to this day is 38 times wealthier than a renter.”

The self-made millionaire is quick to say that the smartest investments he’s ever made have been the three homes he’s purchased. He tells CNBC: “I first bought a home in San Francisco. It skyrocketed in price. I moved to New York and bought another home. It skyrocketed in price. My net worth has gone up millions and millions of dollars, simply because I’ve lived.”

Bach argues that you have to live somewhere for the rest of your life, so you might as well invest in a home that you could own permanently.

Why Not Pay Your Own Mortgage?

I have always said, “As a renter, you are still paying a mortgage; it is just someone else’s. Why not make it your own?

As Bach writes in “The Automatic Millionaire,” “As a renter, you can easily spend half a million dollars or more on rent over the years ($1,500 a month for 30 years comes to $540,000), and in the end, wind up just where you started — owning nothing. Or you can buy a house and spend the same amount paying down a mortgage, and in the end, wind up owning your own home free and clear!”

If you want to get in the game of homeownership, start by crunching the numbers, Bach says: “Actually do the math. Look and see what things cost, starting with the smallest options. This way, you’re really clear on your goals, and you won’t just say to yourself, ‘I’ll never afford this.'”

A good rule of thumb is to make sure your total monthly housing payment doesn’t consume more than 30 percent of your take-home pay. He also recommends having a down payment of at least 10 percent, though more is always better. Finally, recognize that “oftentimes, buying your first home means you’re not buying your dream home,” Bach tells CNBC. “You’re just getting into the market.”

A lucrative market, that is. “The fact is, you aren’t really in the game of building wealth until you own some real estate,” Bach writes.

Building Wealth

As someone who has helped many first-time homebuyers and experienced homebuyers who have bought many homes in San Diego, I have seen firsthand the benefits of owning real estate and also the benefits of keeping it long-term. Not only are you building wealth, but you are also helping families live in a nice environment they can feel safe in and call home.

If you are thinking of buying or selling a home in San Diego, contact the McT Real Estate Group at 619-818-8122. We would love the opportunity to discuss a plan of action that will help you achieve your goals.

This article was found at CNBC and written by Kathleen Elkins