Most Costly Mistakes Home Buyers Make
  Thanks for joining tonight’s webinar. We will begin
      shortly. To download the...
Questions During the Webinar

You may type questions in at any time during the
  presentation – Question box on your scree...
Common Mistakes Smart People Make

            Trip Hazards Along the
           Road to Home Ownership




              ...
The Importance of Location


An Inferior Location Will…
• Restrict the property’s appreciation
• Hinder your ability to se...
When Buying … Shop Location First


• You Can’t Change the Location
• If you don’t like the city, neighborhood,
  street o...
Consequences of Incurable Defects


Property with an Incurable Defect is
  worth less than a property that
  doesn’t posse...
Mistake #3: Ignoring Inept Designs


What is an “inept design”?

• Flaws that affect style, proportion and
  functionality...
When Buying…Be Aware of Inept Designs


It’s OK to buy a home with an inept design…



     Just don’t over pay for it!
  ...
Mistake #5: Buying Emotionally


Buy Emotionally at Your Own Peril
• Control Your Emotions
• Detach yourself
• Assess your...
What Goes into a Well Package Purchase Offer?

•   Fully Completed & Signed Purchase Contract
•   Genuine Pre-Approval Let...
Mistake #9: Not Buying a Home Warranty


• No Home Warranty Covers:
     Known pre-existing conditions
     Mold and milde...
Mistake #11: Working with the Listing Agent


• Listing Company is the Seller’s Agent
    All Sales Associates Represent t...
When Buying…Hire a Buyer’s Agent

The success or failure of your transaction will
  greatly depend on your selection of an...
What is a Genuine Loan Pre-Approval?


Firm Loan Commitment
• Unambiguous statement acknowledging receipt
  of loan applic...
Bonus Round



           Bonus Mistake #13




                     The RayChel Realty Group




   Mistake #13: Failure ...
The Three OOPS!


It is almost always a mistake to…
• Buy a home when you expect to sell soon
• Start you house hunt befor...
Home Search
http://LivingWellinSanMateo.com/home-search/




                                The RayChel Realty Group




...
Webinar: Financing a Condo

 Finanancing a Bay Area Condo




   Monday, November 16th 6:30pm
           To Register Visit...
Help Us Spread the Word
“Classes” Tab
 for a Class Schedule




                                 The RayChel Realty Group
...
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12 Most Costly Mistakes Even Smart San Mateo County Home Buyers Make and How You Can Avoid Them

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Learn the 12 Most Costly Mistakes Even Smart San Mateo County Home Buyers Make...and How You Can Avoid Them.

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12 Most Costly Mistakes Even Smart San Mateo County Home Buyers Make and How You Can Avoid Them

  1. 1. Most Costly Mistakes Home Buyers Make Thanks for joining tonight’s webinar. We will begin shortly. To download the slides, please visit http://budurl.com/WebinarHandout Tonight’s Speaker Raymond Stoklosa Managing Broker and Co-Owner The RayChel Realty Group Phone: (650) 655-2500 www.LivingWellinSanMateo.com The RayChel Realty Group Purpose and Goals of Tonight’s Webinar Purpose Empower and Educate Home Buyers Goals Share with you the common home buying mistakes even smart people make and how to avoid Leave you more aware and informed about buying a home The RayChel Realty Group Questions During the Webinar Home buying experts are available to answer questions throughout the presentation This is an interactive learning environment. You will get the most value from this program by having your specific questions answered. The only dumb question is the one you don’t ask The RayChel Realty Group 1
  2. 2. Questions During the Webinar You may type questions in at any time during the presentation – Question box on your screen The RayChel Realty Group 12 Most Costly Mistakes Home Buyers Make…and How You Can Avoid Them! Presented by Raymond Stoklosa Managing Broker and Co-Owner The RayChel Realty Group Phone: (650) 655-2500 www.LivingWellinSanMateo.com The RayChel Realty Group www.RayChelRealtyGroup.com It’s All About Value • Value means getting your money’s worth • Best way to get your money’s worth is… Buy Mistake Free! The RayChel Realty Group 2
  3. 3. Common Mistakes Smart People Make Trip Hazards Along the Road to Home Ownership The RayChel Realty Group Mistake #1: Underestimating Location Location, Location, Location! Location is the… • Most venerable principle in real estate • Single most important influence on value The RayChel Realty Group Location Will Determine • How well you’ll enjoy living in the house • How much it sells for when the time comes The RayChel Realty Group 3
  4. 4. The Importance of Location An Inferior Location Will… • Restrict the property’s appreciation • Hinder your ability to sell the property Buy the B th very b t l best location you can comfortably ti f t bl and confidently afford. The RayChel Realty Group People Want to Live Near Jobs & Services • Homes Retain Value Best Located within 35 miles from major city center Served by Superior Schools Strict Limits on Growth and Development Substantial Commercial Base Well maintained streets, parks & neighborhoods The RayChel Realty Group What Makes a Good Location? • Served by a Well Performing School District • Quiet Neighborhood • Low Traffic Street • No Ugly Eye Sores • Free of Nuisances The RayChel Realty Group 4
  5. 5. When Buying … Shop Location First • You Can’t Change the Location • If you don’t like the city, neighborhood, street or site, PASS and look no further! Buy the very best location you can comfortably and confidently afford! The RayChel Realty Group Mistake #2: Not Recognizing Incurable Defects What is an incurable defect? Any “adverse condition” that cannot be rectified with a reasonable amount of money or effort. The RayChel Realty Group Adverse Conditions • Busy Street or Freeway • Proximate to Commercial or Industrial Area • Neighborhood Nuisances • Land Prone to Soil Movement • Near Undesirable Landmark • Next to Active Railroad Tracks • Airport Flight Path • Stigmatized Property The RayChel Realty Group 5
  6. 6. Consequences of Incurable Defects Property with an Incurable Defect is worth less than a property that doesn’t possess the same defect – all other things being equal. If you buy a property at a discount because of an incurable defect… • You will have to sell it at a discount • Or, you will have difficulties producing a timely sale The RayChel Realty Group Remember… The best time to think about selling a house is BEFORE you buy it. The RayChel Realty Group When Buying …Be Aware of Incurable Defects It’s OK to buy a home with an incurable defect… Just don’t over pay for it! The RayChel Realty Group 6
  7. 7. Mistake #3: Ignoring Inept Designs What is an “inept design”? • Flaws that affect style, proportion and functionality The RayChel Realty Group Inept Design Flaws • Reverse floor plan • 4 bedrooms, 1 bath • Huge retaining walls • Isolated master bedroom • Severe hillside lot • Shared drive-way • Access through BR to BR The RayChel Realty Group Consequences of Inept Design Value of a home with an Inept Design is diminished by the severity of the ineptitude Always ask yourself… “How difficult or easy will it be to sell this property when the time comes?” The RayChel Realty Group 7
  8. 8. When Buying…Be Aware of Inept Designs It’s OK to buy a home with an inept design… Just don’t over pay for it! p y The RayChel Realty Group Mistake #4: Bidding Blind Lack of Knowledge About Current Market… • Conditions • Price structure • Trends The RayChel Realty Group When Buying…Review Market Analysis • Shop & Compare • Similar Homes • Recent Sales • Pending Sales • Guard Against Over Paying! The RayChel Realty Group 8
  9. 9. Mistake #5: Buying Emotionally Buy Emotionally at Your Own Peril • Control Your Emotions • Detach yourself • Assess your personal needs • Evaluate the home s merits home’s Treat every real estate purchase as an investment…your most important investment. The RayChel Realty Group Mistake #6: Not Negotiating Seller Concessions • Every transaction is different • Determine the leverage points • Discover who has a Competitive Advantage? • Negotiate - If you don’t ask, you’ll never get! ask The RayChel Realty Group Mistake #7: Poorly Packaged Purchase Offer • Strong Offer Package demonstrates Buyer’s Ability and Desire to Buy • Poorly Packaged Purchase Offer y g Indicates Inability to Perform Implies Lack of Commitment Suggests Potential Buyer’s Remorse The RayChel Realty Group 9
  10. 10. What Goes into a Well Package Purchase Offer? • Fully Completed & Signed Purchase Contract • Genuine Pre-Approval Letter • Proof of Funds • Fully Approved Disclosure Package • All Advisories Signed • Personal Note to Seller with Photograph • Copy Earnest Money Deposit Check The RayChel Realty Group Mistake #8: Superficial Due Diligence Stop! Look! Listen! And Look Again! • Buyer must exercise reasonable care Review disclosures carefully Question omissions and inconsistencies Read Advisories Request insurance claims history Investigate Property Condition Obtain written reports The RayChel Realty Group Mistake #9: Not Buying a Home Warranty Home Warranty Protection Plan • Contractual guarantee to repair or replace malfunctions appearing in certain systems within a specified time period after payment of deductible • Covers Certain Major Malfunctions Furnace Water Heater Plumbing stoppages Heat Pump • Coverage May Vary – Read Policy! The RayChel Realty Group 10
  11. 11. Mistake #9: Not Buying a Home Warranty • No Home Warranty Covers: Known pre-existing conditions Mold and mildew problems Items improperly installed Cosmetic defects Previous or attempted repairs Hazardous materials issues • HWPP is big protection for little cost The RayChel Realty Group Mistake #10: Closing Cost Surprises Closing costs are … • Charges for Services • Incurred by Buyer and/or Seller • Allocated by Custom • Controlled by Contract Review an Estimate of Costs Before Signing Offer The RayChel Realty Group Review an Estimated Closing Statement The RayChel Realty Group 11
  12. 12. Mistake #11: Working with the Listing Agent • Listing Company is the Seller’s Agent All Sales Associates Represent the Seller • Listing Company must… Promote and protect the Seller’s interests Negotiate the best business deal for the seller, not the buyer The Seller will be represented by a professional…Why shouldn’t you? The RayChel Realty Group What is the Role of the Buyer’s Agent? Buyer’s Agent Duties… • Advocacy • Technical Expertise • Professional Advice The RayChel Realty Group Won’t a Buyer’s Agent Cost Me More? • No…You Pay Nothing More • Commission Paid by Seller • Buyer’s Agent Works for FREE Until You Buy a Home The RayChel Realty Group 12
  13. 13. When Buying…Hire a Buyer’s Agent The success or failure of your transaction will greatly depend on your selection of an agent to represent you. How and Who Will Represent You…Is Your Choice The RayChel Realty Group How to Select a Buyer’s Agent? Use a comprehensive questionnaire to help evaluate an agent. “The Home Buyer’s Guide to Selecting an Agent” (Will Be Emailed to You for Attending) The RayChel Realty Group Mistake #12: Financial Unpreparedness • The Poison Pill of Home Buying • Not Putting Your Financial House in Order Before Shopping for a Home is Setting Yourself Up for Failure Find a Loan First, Then Find a Home The RayChel Realty Group 13
  14. 14. What is a Genuine Loan Pre-Approval? Firm Loan Commitment • Unambiguous statement acknowledging receipt of loan application & underwriting confirmation • Income, Debts, Assets, Employment, Credit History and FICO Score Verified & Substantiated • Maximum Interest Rate & Loan Amount Stated • Expiration date noted The RayChel Realty Group Why Do You Need a Genuine Pre-Approval? A Genuine Loan Pre-Approval • Demonstrates your credit worthiness • Determines your purchasing power • Determines your financing options You won’t waste your time looking at houses you cannot afford. The RayChel Realty Group Pre-Approval vs. Pre-Qualification Get Pre-Approved, Not Pre-Qualified • Pre-Qualification An informal estimate of what you can afford • Pre-Approval pp A formal written commitment you can rely on stipulating the maximum loan amount, interest rate and terms The RayChel Realty Group 14
  15. 15. Bonus Round Bonus Mistake #13 The RayChel Realty Group Mistake #13: Failure to Understand Roles and Responsibilities of the Parties • Buyer • Seller • Agents Home Buying is a Process, Not an Event • Series of coordinated actions • Haphazard approach is the #1 success blocker The RayChel Realty Group Review the Purchase Contract Contract is the Transactional Road Map Ignorance of Contract is the fundamental cause of… • Disputes between buyers and sellers • Dissatisfaction with the transaction The RayChel Realty Group 15
  16. 16. The Three OOPS! It is almost always a mistake to… • Buy a home when you expect to sell soon • Start you house hunt before doing your homework • B ah Buy home th t meets your current needs, yet that t t d t ignores your long term needs The RayChel Realty Group Technology Tools You Can Use at Home The RayChel Realty Group www.LivingWellinSanMateo.com The RayChel Realty Group 16
  17. 17. Home Search http://LivingWellinSanMateo.com/home-search/ The RayChel Realty Group Ask a Real Esate Question http://LivingWellinSanMateo.com/San-Mateo-Real-Estate-Question/ The RayChel Realty Group Upcoming Webinars The RayChel Realty Group 17
  18. 18. Webinar: Financing a Condo Finanancing a Bay Area Condo Monday, November 16th 6:30pm To Register Visit: http://budurl.com/CondoFinancing The RayChel Realty Group Webinar: Trustee Sales Trustee Sales – The Most Dangerous & Most Profitable Way to Buy Real Estate Tuesday, November 17th 6pm To Register Visit: http://budurl.com/TrusteeSale The RayChel Realty Group Webinar: Selling Your Home Selling a San Mateo County Home You Can’t Afford Thursday, November 19th 6pm To Register Visit: http://budurl.com/SellMyShortSale The RayChel Realty Group 18
  19. 19. Help Us Spread the Word “Classes” Tab for a Class Schedule The RayChel Realty Group Free Conversation Raymond Stoklosa Chela Stoklosa Rebecca Williamson Managing Broker and Owner g g Agent and Owner g Agent g Phone: (650) 655-2500 info@RayChelRealtyGroup.com LivingWellinSanMateo.com YouTube.com/LivingWellinSanMateo The RayChel Realty Group 19

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