5 Things Home Buyers NEED to hear!

5 Things Home Buyers Need to Hear!

Real estate is tough.  It's tough to sell, tough to buy and tough to get through the process.  Sometimes the tough part is telling buyers and sellers the truth.  I'm hoping that if you're reading this, you are ready to hear the hard truths buyers need to hear.

1.  The first thing you should do?  Call a lender.  Yes, I said call a lender.  After many years of real estate, I still find people who skip this step and want to go right into looking at homes.  However, this

approach is backward. Talking about financing, payments or money in general gives some people hives.  While this is the least fun part of looking for a new home process, it is perhaps, no, not perhaps, it is THE most vital part.  Because unless you are prepared to pay all cash, you can't move without a loan.

1A. You may not really know what you can afford.  I know-you can argue with me all you want.  You can tell me all about how your car loan was so easy and they easily gave you what you wanted, but this isn't a car loan.  Home loans are different.  They aren't giving you money to buy a $40,000 car, which can be towed away when you don't pay.  This is a $400,000+ home which cannot be taken back with a tow truck.

1B. Looking at homes FIRST can lead to disappointment.  The area where I sell real estate is in the higher end.  Often times, first time buyers will head out enthusiastically to see the properties on the market, and many times get their hopes up on things they've seen.  Sadly, when they visit the lender after, they realize the homes they looked at they can not afford.  It is discouraging, depressing and could have been avoided. 

1C.  So, you think you know what you can afford, you look at homes before going to the lender anyway, and find the THE ONE.  The perfect home.  So,  you write an offer with the realtor.  You submit your offer, and the seller says, "Have they spoken to the lender?".  The realtor says, 'no'.  What is the sellers response? "Come back with an offer when they have".  Why?  Why not? Why should a seller accept an offer and tie up their property with a buyer who hasn't bothered to make sure they can afford the home yet?  If they do, they could miss out on a buyer who they know is qualified.

2.  You can't have it all.  I know- HGTV has ruined it for most people. "Oh look honey, a 2,500sf home with huge yard, in a great neighborhood that doesn't need any work for under our budget".  Uh, yeah right, that's why they call it the magic of television.  It's a figment of people's imagination.  There are going to be sacrifices you need to make, and you need to decide exactly what you are willing to live with and without within your budget.   Paint can be changed, carpet can be replaced, landscaping can be watered, there are many things in a home that are easily repairable.  If you find a home you like, you can afford it and it's where you want to be, don't be nit picky.  Some things are impossible to live with, or are too much money to fix after you've purchased such as leaky roofs, too much traffic or plumbing issues. Those are the important issues to address.  I see many buyers pass on a home that they really liked because the seller wasn't particularly clean or the colors weren't their taste. Make sure that when you look at a homes you are clear about what you absolutely need and don't need.

3.  Don't change lenders AFTER the offer is written. It sounds crazy, but changing things in the middle of your transaction can not only set the escrow back weeks or more, but could possibly get you kicked out of escrow.  When changing financial people, always make sure you discuss things with your realtor and the seller.  Not doing so makes you look unorganized, and unable to purchase the property.  This also means you will probably have to ask the seller to extend your loan contingencies, which they do not have to do. So all your money in inspections thus far would have been a waste or you would have to move forward with removing contingencies.  Either way-changing lenders mid stream can have disastrous consequences.

4.  Please don't jump from Realtor® to Realtor®.  Some buyers are unaware of how the real estate process works,  some are aware but don't care.  However, you should care.   As a buyer, you do not pay for your agent.  Traditionally the seller is paying the commission for both buyer and sellers agents.  There are occasions where this is not the case, but that is extremely rare.  So, when you begin your real estate search, speak with agents and find one you like working with, feel will help you on your home search and knows the market and more importantly the contract and stick with them.  DO NOT however, call one agent to view a property then call another agent to view another one, or call one agent to view the property then proceed to work with others.  This does not help your cause.  Many people think they will get a better deal if they work with the listing agent.  This is rarely the case.  Agents can represent both sides of a transaction, and often do, however actively seeking out those agents for this purpose leads to missing out on properties that you may have liked more, or not getting the best deal.    When you are loyal to an agent and work with one person (or a team) exclusively, that agent will make sure you are taken care of.  They work diligently to make sure they find you what you are looking for.  But, jumping from agent to agent leads agents to put you at the bottom of the pile.  They have other more loyal clients, and someone who jumps from agent to agent is a waste of time.

5.  Don't write low offers.  This advice is the same advice we give to sellers about over pricing.  You aren't going to get the home for less just because you start out so low.  I always prepare my sellers to expect low offers. At least someone liked it enough to write an offer, but regardless, writing an offer
that is so low you may offend someone is just counter productive.  The sellers usual knee jerk response to low offers is to either reject the offer or counter back full price, neither which is helpful to you.  I have had clients want to start super low just to "see" if the seller will go for it.  However this tactic doesn't usually work, most sellers get offended and then any negotiations between the buyer and seller are strained.  The seller from that point forward constantly thinks the buyer wants something for free and is less likely to give ANYTHING in future negotiating of the request for repairs,  if they actually do get into escrow.  Your best course of action is to write offers on homes that are within your budget.


Sometimes the toughest part about real estate is the reality of it.  I believe everyone can find the best home for them, although it might take time and effort, it is possible.  So don't give up, find yourself the right Realtor® and begin your journey to a new (or new to you) home!



Gigi Gerritsen has been a licensed Realtor® in Santa Barbara County, California for the past 17 years.  For more information about real estate in her area, please give her a a call @ (805) 688-5717 or e-mail her at gigi@santaynezvalley.com