It’s no secret that San Francisco ranks among the highest in terms of property values in the whole country. In fact, business publication FastCompany.com stated in its 2019 report that San Francisco topped all major cities with the most number of million-dollar homes in the US. The median cost of a home here is nearly $1.5 million.
Nevertheless, with a keen local real estate agent helping you in your search for starter homes for sale in the San Francisco Bay Area that fit your budget, you’re sure to find some. Just keep these key tips in mind:
Tackle financing matters immediately
Financing the home purchase will be one of the biggest priorities on the to-do list. So it’s best to tick this box as soon as possible.
If you’re taking out a mortgage loan, make sure to examine all your viable options. Aside from looking for the best rates possible, take note of the pros and cons of conventional loans and government loans.
And even before you start your home search, make it a point to secure loan pre-approval ahead of time.
When a lender verifies your credit profile in pre-approval, you can find out the maximum loan amount you can access. This helps you narrow the home search to an ideal price range — effectively saving you valuable time and effort in the process.
Develop criteria and stick with it
Even if you don’t expect to live in your starter home for more than five years, you still have to find one that genuinely makes you feel comfortable and truly at home. Thus, coming up with criteria will help you to figure out your non-negotiables.
If you value short travel time to the office, decent public transportation options, or a good neighborhood for your kids, these should take precedence over other factors that are not as crucial. These conditions will usually be based on your lifestyle needs.
Seek out first-time homebuyer assistance
You don’t need to postpone your home-buying plans just to prepare for that sizable down payment or closing cost. The city got your back.
The San Francisco Mayor’s Office of Housing and Community Development (MOHCD) provides a number of homeownership resources to help you proceed with buying your starter home.
MOHCD also supports affordable loan programs, such as the Down Payment Assistance Loan Program and City Second Loan Program.
Additionally, consult with your preferred mortgage lender for other options.
Enlist the services of a real estate agent
Online research is incredibly useful as it can give you an overview of what the market can offer you. But don’t rely solely on this tool.
Real estate professionals are knowledgeable about the ins and outs of a particular market. They can steer you away from bad deals disguised as good ones and help make the entire process smooth-sailing.
Note, too, that several homes in San Francisco may start with a low price, often just above or around $500,000. From there, the bidding war among buyers commences, significantly driving up the price of the home. Your real estate agent should be able to guide you in the negotiations to craft that killer offer that no home seller can resist – and win the war.
Homes for sale in lovely Bay Area neighborhoods like Noe Valley, St. Francis Wood, and Pacific Heights are within your reach when you come to me, Amir Hardy, for your real estate needs. Call me at 415.602.0570 or send an email to amir(dotted)hardy(at)compass(dotted)com.