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Week of August 14th - August 20th
Property Tips and Tricks
Assumptions anonymous
I recently stumbled upon advice from 20 years ago on the topic of purchasing a house, handed down from father to son. Reposting it below; while some of the counsel may come across as a bit crass, every piece of advice remains relevant even today. Shoutout to Peter Lohmann for sharing.
1. The people who you are selling to or buying from are to be treated as hated enemies. Also, assume that they view you in the same manner. To treat them differently is a big mistake. You cannot trust anything they say, nor take anything for granted. To do so could end up costing you plenty. It's only after the closing that you can begin to trust them and/or build a friendship.
2. Finding a good real estate agent is very difficult. Keep in mind they are usually working for the Seller and not the Buyer. They mostly care about closing the deal and getting their commission. Do not deal with anyone who never bothers to return your phone calls. Do not deal with anyone who forgets to tell you about critical items five minutes before closing. Be sure to ask how many houses they have sold lately (or annually).
3. Finding a good lawyer is even tougher than finding a good real estate agent. They usually will treat you as a distant bother. They forget that they were hired to do a job. They work for you, not the other way around. Never assume that any of these people talk to one another. Ask how many closings they handle in a month. Ask the Realtor (or others you know and trust) for references.
4. Always assume that your lawyer won't bother to talk to your real estate agent and vice versa.
5. Banks are only slightly better than Mortgage companies as far as customer service. Always assume that idiots are running the show in these places as well. Also, never forget that these people won't talk to anyone either. Another problem is that you can be sure the lender's internal communications are close to non-existent.
6. Always assume that 48 hours before your closing date is when all of these people will begin to process all of the necessary paperwork.
7. Proof of insurance is mandatory and must be presented to the Mortgage company several days in advance. Never assume that your insurance agent is on top of things either.
8. Make sure to get a detailed invoice from the lawyer just in case they try to sneak in additional charges - charges usually brought on by their lack of attention to detail.
9. Make sure to talk to the local City or County people to find out just what they require to allow the closing to proceed without a problem. This could include Certificates of Occupancy, chimney inspections, smoke detector certificates, water tests, septic inspections, etc.
I0. Never assume that anyone is doing their job. Never trust that the information all these people are giving you is accurate. It seems that people in the "front offices" are morons and it's the behind-the-scene people who really know what is going on.
Real Estate Ramblings
Waiting game
The average homebuyer across the country faces an interesting challenge when searching for a home. Inventory is limited, and mortgage rates are high. While the desire to own a home remains strong, some buyers are exploring alternative options, as illustrated below:
"I could rent a comparable place for $1,500 less per month (rent payment vs. mortgage/tax/insurance payment) and also earn $400/month on my $100K down payment. So, I'll wait. If prices increase by 5% when mortgage rates drop, my savings from waiting could exceed that."
For many individuals, the decision to own a home isn't purely financial; it's also emotional and tied to family considerations. Having the certainty of not needing to relocate within a year or two, the ability to personalize the living space through updates, and the relief of freeing mental space from housing uncertainties might outweigh other factors. However, the answer isn't universal, as each person or family must decide based on their unique circumstances.
Moreover, it's essential to recognize that achieving long-term success in real estate doesn't necessarily hinge on timing the market; rather, it's about the time spent in the market.
Worked with me in the past? Share your experience.
Jonathan Balog
DRE# 01980970
Broker
M: 831.747.0310
[email protected]
Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.
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