California has amazing weather, friendly culture, and a lot of great food to try out. With the diverse population, it is very easy to fit-in wherever you want. You can go to the beaches, take hikes, and enjoy a lot of other recreational activities as well. It’s an all-in-one package when it comes to living in California.
Buying your own house is one of the biggest decisions you’d make in your whole life. You want everything to be perfect, from the location to the exterior and interior of the house you’ll be buying.
A lot of people rush into buying a property and later on regret their choice after it doesn’t turn out to be their dream house. If you’re looking forward to buying your first-ever property in California but not sure where to start looking and what to look for then don’t worry, we’ve got your back. In this article, we’ll share 6 tips to help you buy your first home in California.
1. Assess Your Finances
Many people have a very vague budget when it comes to buying a property. You need to ask yourself a set of questions before you even start hunting for properties in California.
First of all, examine your current rent and see if buying a house would be more convenient for you according to your finances. Can you easily afford a house in California? If yes, move to the second question.
You need to ask yourself about your price range. Before you start looking for a property, knowing your price range can help you narrow down areas where you’d want to buy a house. With a target in mind, it’s easier to save money.
Keep an eye on the average house prices in the area you’re interested in. According to ManageCasa, single-family houses can range from anywhere between $350,000 and $800,000 in California (as of January 2021).
Also, it’s better to calculate the mortgage beforehand unless you’re going to pay upfront for the property.
2. Look into California’s First Home Buyer Program
California Housing Finance Agency, also known as CalHFA, offers assistance and loans to first-time home-buyers in the state. Visit their website and see what kinds of programs you’re eligible for.
CalHFA offers conventional and government-insured mortgage programs to support first-time home-buyers with fixed-rate loans and the possibility to roll in down payment and closing cost support into your loan.
You are considered a first-time home-buyer in California if you haven’t held and occupied a house in 3 years.
3. Hire a Real Estate Agent in California
Many people think that hiring a real estate agent is of no use or quite expensive but, in reality, it’s actually the opposite of it.
Real estate agents are familiar with the state and are quite experienced in buying and selling properties. So they can help you a lot. Apart from finding and showing you properties, a realtor can also make recommendations for other services such as lawyers, lenders, and escrow companies.
They charge for consultation and the time they spend to help you, which is totally worth it.
4. Know Your Neighborhood
Consider talking to a few neighbors before you decide to buy a property in California.
Analyze the aura of your neighborhood by looking at the condition of nearby houses. Other than that, also make sure to know how far or close basic amenities would be from the property you’re buying such as supermarkets, hospitals, schools, and other things.
5. Shortlist Your Favorite Properties
Once you’ve started looking for properties, you’re going to see a lot of places that will just steal your heart at first sight. You have to spend a little time looking at different properties in different areas to learn more about the diversity and culture of each.
Shortlist all of the properties that you liked and then move on to crossing them depending on your budget and requirements.
6. Offer & Negotiate
Once you like a property, it’s time to make an offer. Currently, houses normally stay on the market for 40 days in California. However, every market goes through seasonal changes. So you have to be as quick as you can with the offer.
Sometimes the price alone isn’t enough to convince a seller to accept your offer. You can write in different asks, such as no contingencies, to create a deal that works for both parties.
Key Takeaway
These are a few basic things that you should know before you buy your first house in California. Once you’ve bought the property, move in as soon as possible, throw a housewarming party to your neighbors and friends, and enjoy!
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