FAQ - I am a Home Buyer
How much will I need to pay for a home in the East Bay?
This is a very common question, and the answer is, “It depends on the zip code." For example, if you are searching for a single family home in Dublin, California with 4-bedrooms and 2.5-baths, the typical price is $1.7 million. If you were looking for the same home in Danville, It may cost $1.9 million or more.
How competitive is the East Bay housing market right now?
If you are referring to the first four or five months of the year in the communities of Orinda to Livermore, the answer is, “very competitive." These months are when a home seller will typically get the highest price per square foot for the home during the entire year. It is a period of time of low inventory of homes for sale and a large pool of home buyers. It is referred to as a “seller’s market”. If you are referring to the summer and fall time frames, these months are a much more balanced market with lots of homes for buyers to select from and it is not as competitive as the first four or five months of the year.
How much should I offer on a home?
What you submit as a purchase price for a home is what you believe is the fair market value for the home based on a pricing report your real estate advisor would provide you regarding what similar homes in that neighborhood have sold for in the last four to six months. Any price you agree to pay that is above the identified, it will often be because there are multiple offers submitted and you decide to pay a bit more in order to see if you are successful with your purchase.
What is my first step in my home buying journey?
The first place to start is setting up your personalized "listing alert" that is called a Collection. This creates a daily email sent to you with all available homes for sale in the communities you are considering. It will include Compass off market homes, Coming Soon homes and all active MLS homes for sale. Your search criteria can be modified any time you want. Read more about Collections here.
What credit score do I need to buy a house in California?
In California you generally need a credit score of 620 or higher if you are applying for a conventional mortgage loan. However, FHA loans can have a score as low as 500 depending on your downpayment. In addition, Veterans Administration home loans may have very flexible credit score requirements. Let us know if you need a contact to a mortage lender.
Is it better to rent or buy a home right now?
This is a very common question, and the answer is always, “it depends”. It depends on your financial situation. If you have the funds for a downpayment of between 10% and 20%, and you are able to service the mortgage payments, property taxes and insurance with no more than 25% to 28% of your monthly income, then we would recommend buying a home. If the above is not possible then we recommend you rent a home. Read more here about whether or not you should rent or buy a home.
How long does it take to buy a home?
The speed it takes to buy a home depends on how it is being purchased. For example, if you paid all cash for the home the title of ownership could be changed to your name in five days or less. If you were securing a mortgage, the timeline for it to transfer to your name would depend on the speed of your lender to get all of the paperwork completed. If you did need the services of a lender we would be glad to recommend ones our clients have worked with. Click here to read more about how to buy a house.
What are contingencies in a purchase agreement?
Contingencies that are part of a home purchase agreement are the exit doors which allow a buyer to cancel their offer without any financial harm. For example, today there are four possible contingencies in a purchase agreement; Inspections; Appraisal; Loan Qualification; and Insurance. Contingencies always have a time frame attached to them. For example, an inspection contingency may state that the buyer has 10 days to inspect all aspects of the property. If the buyer is not satisfied with what has been discovered they can exit their offer without any financial penalty.
How long does escrow take in California?
Escrow typically takes 30 to 45 days, depending on financing, contingencies, and contract terms. Read all about what happens once an offer gets accepted here.
What should I do before I start house hunting?
Before you start house hunting, it is important to understand what you can realistically afford. If you need a lender, we are happy to make an introduction for you. You should also make a list with your must-haves and nice-to-haves. These are just a few of the “to do” items. Reach out to us to understand how to buy a house and what your specific journey may look like.
When do you wire your down payment?
Buyers usually wire their remaining funds 2–3 days before closing. Read all about what happens when an offer gets accepted here.
What does "pre-approval" actually mean?
Pre-approval does not mean you have an obligation to buy a home, nor is it a contract. Preapproval is when a lender takes a look at your basic financial information and offers you a realistic budget range so that you can begin house hunting with confidence. Reach out to us if you’d like to be connected to a trusted lender.