SDAR Tips for First-Time Home Buyers in San Diego

Every month the San Diego Association of REALTORS stats fluctuate.

An increase here, a decrease there, but the analysis of these numbers always stays the same: This truly is a buyers’ market. And in fact, this month’s numbers indicate that the public is starting to catch on to this. In March, sold listings were up 25 percent with 2,507 properties being sold.

The median price for March was $325,000 for detached homes. The slight three percent decrease from February even further reinforces that now is a good time for the first-time home buyer to invest. SDAR recognizes this, and, as a result, presented a seminar on first-time homeownership at our SDAR Real Estate Expo last month. Here are a few pointers in case you missed it.

Tips for First-Time Home Buyers

The first step to becoming a homeowner should always be to get pre-approved by a lender. This way you will know what your budget is to begin with, and won’t have any unpleasant surprises. It will also save you from wasting time looking at San Diego neighborhoods that are out of your price range and will give you the upper hand when negotiating costs. You will want to find an expert in financing who understands current loan options and who can work with you to get your pre-approval. Since programs and conditions change by the hour, approvals are harder than ever to achieve, making a bank partner an invaluable asset.

Once you have been granted pre-approval, it’s time to further educate yourself on the home buying process. As it turns out, there are many local resources to educate you on the process and help you make a successful first purchase. Dee Sodano from Community HousingWorks, spoke at our Expo last month and told attendees about the First-Time Home Buyers education class they offer. This eight-hour, HUD-certified course will qualify buyers for reduced rates with some lenders, as well as down payment loans and counseling. Topics covered during the course include: budgets and pricing, loan qualifications, credit, the home-buying process, maximizing REALTOR partners, down payment costs, closing costs, insurance options and home maintenance. Community HousingWorks also offers post-purchase counseling, foreclosure intervention counseling and down payment assistance programs.

During the Expo seminar we also addressed what to look for when considering a foreclosed property. Many first-time home buyers are considering purchasing an REO or a short sale home, and with so many on the market, you certainly have plenty of options. In fact, last month there were over 400 REO properties on the market, and 50-65 percent of all listings were foreclosures or short sales. However, not every one of these properties is a smart investment, and first-time home buyers may want to seriously consider using a REALTOR to help discern the good from the bad. REALTORS can help you with title searches, assessing the state of the property, and understanding bank contracts.

In the end, the key to making your first San Diego real estate purchase a success is being educated, working with knowledgeable experts, and utilizing resources. You can watch the full video of SDAR’s First-Time Home Buyers Expo seminar here.

- Erik Weichelt, SDAR 2009 President

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