Last Updated on October 16, 2023 by growinghome.la
Buying a home can be an exciting, yet overwhelming experience. From navigating the competitive market to finding the perfect property that meets your needs, there can be challenges along the way. As a homebuyer coach, I’m here to help! For this blog post, I interviewed Real Estate Broker and Investor, Michael White of Three Lions Realty for his top tips to help you buy your home. We’ll provide you with invaluable tips to help ease your pain points, outsmart the competition, and work effectively with a real estate agent. Let’s dive in!
Buying a Home Help – Tip #1: Understanding Pain Points
As a homebuyer, it’s essential to be aware of the common pain points you may encounter during your journey. By anticipating and preparing for these challenges, you can stay one step ahead and make the buying process smoother.
Limited Inventory
In today’s competitive market, finding the right home can be tough due to limited inventory. After the 2008 housing crash, housing developments halted and slowed. Developers have not yet caught back up to demand. Another major reason for lower inventory is higher interest rates. Homeowners who have bought in the last 5-10 years might be reluctant sell right now. This is because most have locked in a sub 4% mortgage rate. It’s difficult to give that up and buy a new property at a significantly higher percentage.
Affordability
As Michael says, because interest rates have increased dramatically over the last year, most homebuyers have to adjust their budget. For example, monthly payments for a million dollar home is over $6,000 per month these days. In early 2022, they could be closer to $4,000. Michael points out that, “[Affordability] is probably the main current pain point. A year ago, the same buyer whose current budget is $1 million could have afforded a $1.3 million home. That’s the difference between living in one neighborhood vs. another.” Michael also says that because of this, he advises looking for areas or neighborhoods that have some potential for appreciation.
Not Knowing the Process
Michael also points out that not knowing much about the homebuying process can be a pain point as well. If buyers aren’t sure what steps to take, it can take longer to get up and running with their real estate agent. Check out some of my other blog posts on the homebuying process for more information. Or, get my free workbook, Map Out Your Dream Home, to get clarity on your home search today.
Buying a Home Help – Tip #2: Strategies to Beat the Competition
With limited inventory and high demand, it can be difficult to find a home that meets all of your needs and fits within your budget. Michael gives us some of his top tips for thinking outside of the box and finding homes that may have less competition. If you can be a little creative, you can find great opportunities that others have passed by.
Look in Adjacent Neighborhoods
Consider the neighborhoods that are most coveted by homebuyers – and then look next door. In Los Angeles, there are lots of neighborhoods that benefit from being right next to others that have already been revitalized. Look for any new businesses, restaurants and shops moving in. Once a few key improvements happen nearby, developers and home buyers look to capitalize on the rising appreciation of these areas. However, Michael warns that there are some nuances. It’s a good idea to really drive around in those adjacent areas that you’re considering. Pay attention to the streets and how they feel when you’re there.
Consider Homes that Need a Little Love
As Michael puts it, “there’s less competition for a house that needs a new kitchen, vs. one that’s already shining.” Many people can’t see past even some easily updated aesthetic changes, let alone a home that needs more significant updates.
On top of that, if you’re coming in with less than 20% down against another buyer whose offer is 20% or above and you’re bidding on a fully updated, popular home, your chances of being accepted are significantly lower. Alternatively if you’re willing to look at homes that aren’t completely turnkey, your down payment of 5% or 10% won’t be as much of a disadvantage.
Writing A Clean Offer
A clean offer supported by a professional presentation by both your agent and lender can significantly increase your chances of being successful. Your agent should advise you to write a clean offer, with as short contingency periods as is comfortable for you. You should choose a lender who can meet these short contingency windows. They should also be easily accessible for any questions from the listing agent. Lastly, they should be is willing to call the agent prior to decisions being made so they can verify your credentials as a buyer. Presentation is key, especially when there are two competing offers close in price. A well written offer supported by excellent communication will be preferable to the listing agent who in turn advises the seller.
Buying a Home Help – Tip #3: Working With Real Estate Agent
A knowledgeable and experienced real estate agent can be your greatest asset during the home buying process. Here are some tips to help ensure a positive relationship.
Research and Interview
Take the time to research and interview multiple agents before making a decision. Look for someone with a strong track record, good references, local expertise and excellent communication skills. If you sense that it’s not a great fit or you’re not sure, feel free to meet with at least one or two other agents to get a sense of their style and approach. Michael and his team always make sure they meet with clients for coffee before they start looking at listings or homes. This way, everyone can be on the same page and they can get to know each other better.
Clearly Communicate Your Needs
Be specific about your requirements, budget and preferences. A clear understanding will enable your agent to find the best properties suited to you and save you time, as well as stress. As part of this coffee meeting, Michael asks all about his clients’ priorities. He doesn’t just focus on specific areas or beds and baths, but also how open they are to remodeling and other key details.
My free Map Out Your Dream Home roadmap is perfect for helping you identify your priorities so you can clearly communicate them to your future real estate agent! ! I walk you through the key steps you need to gain clarity and focus on the home you’re looking for.
Trust Their Expertise
Real estate agents have in-depth knowledge of the market and negotiation strategies. If you’ve chosen someone who you feel comfortable with and who displays the key traits above, you can trust their advice and rely on their guidance to make informed decisions.
As Michael shares, Three Lions Realty is accessible to their clients at all times of day and night, making sure to be available outside of regular business hours. He cares about building relationships with his clients and going above and beyond. In fact, their motto is, “Going Above and Beyond, Always.” For example, he was putting in floors for a client the week of this interview. A good real estate agent should be more than just a salesman. Knowledge of construction, the costs and the process can be especially useful. This will give you an idea of how to improve the value of your home, how to make changes, and how affordable it is.
Bottom Line
Buying a home is an exciting milestone, but it can also be a challenging, time-consuming process. By implementing these tips and strategies, you can relieve key pain points, stay ahead of the competition, and work effectively with a real estate agent. Remember, perseverance and patience are key. With the right approach, you’ll soon find yourself unlocking the door to your dream home. If you’re in the Los Angeles area and looking for a great real estate agent, check out Three Lions Realty.
Regardless of where you live, If you want extra support to coach you along the way, I’m here to help. Grab my free Map Out Your Dream Home workbook to get started today!
Happy House hunting!