San Diego Real Estate: Being a Good Buyer

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My husband and I recently bought an investment property in Big Bear. I was on the internet for about 2 weeks researching the market, looking at broker sites, searching the MLS. We finally found an agent who seemed diligent, anxious and knowledgeable but that did not stop me from being what I call my own worst buyer.

Being a licensed agent, and experienced in buying personal properties, you would think that I would know how to be a great buyer, but for the first time, we ventured into uncommon ground - a market area outside of our knowledge - and relied on an agent we did not research to represent our best interests.

The sale closed but not without its issues. Looking back, I would have done many things differently but the experience helped me understand how buyers can empower themselves to be GREAT buyers - those who are knowledgeable and educated to make decisions that will benefit them during their purchase.

1. Choose a reputable agent: Get referrals from friends, family, co-workers. If you are buying in an area you do not know well, ask a local agent in your primary area for a referral for an agent in your purchase area (your agent will most likely ask the other agent for a referral fee, this is standard practice).

Find out if the agent is full time or part time. Would you want a part time surgeon performing brain surgery? I think not. Full time agents are more seasoned and more fully engaged in their market.

2. Quiz your agent: In any market, there are two key indicators that will help your overall assessment of an area. Any good, full time agent should know these statistics for their market.

1. Sales Price vs. List/Asking Price: General rule of thumb is if sellers are getting over 96% sales price vs. list price/asking price, it's typically a sellers market. Less than 96% typically indicates a buyers market

2. Average Market Time: How long do homes general stay on the market? How long has the home(s) you're interested in been on the market? This will give you an idea of how motivated the sellers may or may not be.

3. Read the Contracts: Your best protection is educating yourself. Ask your agent for samples of any contracts and agreements (state and local) and review them before signing them. Most people find the contracts tough reading but do not feel like a nuisance if you ask your agent to go through the contracts with you - it's their job.

4. Don't Assume You Know More than You Do: As a buyer you should be assertive and ask questions but if you have chosen a great agent, your agent is going to have a better background and more knowledge of the market than you do.

5. Make Thought Out and Rational Decisions: Buying any property is a big investment and even seasoned buyers get frustrated and nervous. Do not make decisions when your emotions are on over drive. Ask your agent about your timeframes and deadlines to make a final decision and take time to think them out.

During the purchase of our property, I turned into an alter ego evil version of myself and while I place some blame on our inexperienced agent, I do take responsibility for not doing my homework as a buyer to ensure that I was comfortable and confident in the agent and my role as the buyer.

Remember, the experiences you have buying or selling a property will carry over to the next time you buy or sell. If you do your due diligence as a buyer, it will make your future sales and purchases easier and dare I say even enjoyable!