Advice for Luxury Homebuyers in San Diego
Buying a luxury home is a fun and exciting time, but it can also be a little overwhelming! If you’re looking to buy a luxury home in San Diego, here are a few tips and tricks that will hopefully make the process a little less stressful for you.
Photo Credit: American Advisors Group
FIRST, figure out what you want (and don't want) in a home - but be flexible. Knowing in advance what your “must-haves” are will help you and your buyer's agent start your San Diego luxury home search off on the right foot. For example, if you have three dogs and need a home with a yard, you probably won’t want to waste your time looking at luxury downtown condos!
At the same time, I recommend you keep an open mind. Inventory in the San Diego luxury housing market can be tight at times, so don’t be afraid to branch out and look at neighborhoods and home styles you wouldn’t necessarily have considered. Your dream home just might end up looking different than what you’ve imagined! See my Homebuyers Questionnaire for ideas!
SECOND, be patient - but prepare to act fast when the time is right. Again, depending on your target price range luxury home inventory in San Diego can be tight. Luxury homes in certain neighborhoods are on the market for less time than others! It may take you a bit of searching to find the perfect place, but once you do, be prepared to jump on it and put in an offer immediately if inventory is low in the neighborhoods/price range you’re looking in.
Part of being ready to snap up that dream home when you find it is to have all your financial ducks in a row. If you're paying all-cash, we need to have written verification of funds to submit with an offer (and in some cases just to get a tour of a home you're considering). If you plan to finance the purchase with a jumbo loan, it's important to complete your preapproval as soon as you're ready to look at homes. The preapproval process will require you to provide your bank statements and investment statements, past two or three years of tax returns, proof of your employment status and salary, and your credit report. By getting a preapproval, you’re signaling to luxury home sellers that you're a serious buyer and you're ready to move!
If you are planning to hold ownership of the property as an LLC or a Trust, it's important that you share your expectations with your Luxury San Diego Buyer's Agent early on during your home purchase journey.
Also Read: 16 Questions to Ask During Your Loan Preapproval Process
THIRD, have all of your financial documents organized. Pre-Approval or Proof of Funds (for an all-cash purchase) are just the start of the paperwork, so it’s essential to stay ahead of the game. Once you put in an offer and it’s accepted, things will move very quickly! Having your financial information (again, trust or LLC paperwork, bank statements and investment accounts, tax returns, pay stubs, credit report, and credit card statements or any other outstanding debts) on-hand and ready to go will be very helpful.
Another thing you’ll need on hand and ready to go? Cash. One of the first things you’ll be asked to do upon signing your purchase agreement is to provide your earnest money deposit. This is a good faith deposit, showing the seller you’re serious about the transaction. The money is held in a trust account or escrow account until closing, at which point it will typically be applied to your down payment. While the details of the earnest money deposit may vary (always read your contract thoroughly!) the industry standard for paying your earnest money deposit is 3 days, so be sure you have enough liquid cash to make that payment! Remember, if you’re planning to pull money from investment or retirement accounts, that typically takes at least 5 business days.
Earnest money deposit? Points? Private mortgage insurance? As you start to go through the offer process, it will also be helpful for you to learn a little more about the real estate jargon! There are several good real estate glossaries out there to get you started. Here are a few definitions I think are important when you're starting your luxury San Diego home search!
Also never be afraid to ask questions if you don’t understand something in your contract or loan documents!
OF COURSE, the best tip I can give you is to work with a team you trust! You need to feel comfortable with your luxury San Diego buyer's agent, your loan officer, your real estate attorney, and everyone else involved in your luxury home-buying experience. If you’re thinking about buying a luxury home in San Diego County (north, south, east, or west), contact me today to schedule an interview (or what I call a Buyer Strategy Session) so we can talk about your needs, your budget, and how I can help.
MORE INFORMATION FOR LUXURY SAN DIEGO HOME BUYERS:
Also Read: What is a Buyer Strategy Session?
Also Read: What is an Exclusive Buyer Agent?
Also Read: How Does a Buyer's Agent Get Paid?
Justin Gramm is the founder and principal broker of Globella Buyers Realty, your San Diego Exclusive Buyer Brokerage.
Exclusive Buyer Agents do not list homes for sale and never represent sellers. They have no "inventory" to try to sell you. They can represent you in purchasing any home. They are specialists at representing buyers only on the buyers' side of the transaction. Exclusive Buyer Agents work to get buyers the best price and terms when they buy a home.
Read Also: Luxury San Diego Buyer's Agent
Read Also: San Diego Realtor for Luxury Home Buyers
If you are well-qualified and plan to buy a luxury home or condo in San Diego County within 90 days, contact Justin Gramm to hire an agent on your side of the transaction. Call Justin at 619-775-1977 or Email.