Market conditions in the Coachella Valley are hard to describe. Sales for the valley are lower than a year ago and lower than two years ago. However, this comparison is misleading because sales two years ago were at an all-time high. Also, some cities in the valley are down significantly, some are down moderately, and some are actually higher than last year.

Home prices are about the same this year as they were last year, but again this varies by city. The inventory of homes and condos is very high which is good for buyers. There is a good selection and most sellers are willing to negotiate. There are good bargains to be found occasionally when sellers are anxious to sell.

If you have not owned a home before, you may be surprised at the benefits of owning a home over the long term. Here are some examples:

Tax advantages: The interest on your mortgage and the property taxes on your home are tax deductible. This can result in a sizeable savings when you file your taxes. If you are a salaried or hourly worker and buying a home for the first time, you may be able to increase your paycheck by estimating the savings and changing your withholding.

Appreciation: Most homes increase in value over time. While market changes may create ups and downs in the short term, the long term value of a home is almost always increasing.

Inflation hedge: While the price of most things (food, clothing, rent, autos, insurance, etc) increases over time, the cost of the home you own will always be the same to you and if you obtain a fixed rate mortgage, your mortgage payment will never go up. Later if you need to move, the increased value of your home may offset the increased price of the home you want to buy.

Making it your own: Painting and decorating to your own taste and knowing you can make the home your own are some of the advantages that most people enjoy the most.

Choosing the right realtor is very important. Trust, confidence, and good service are vital. Interview several and see who you like. Most realtors representing buyers charge nothing!

That includes Sandpiper Properties. Don’t spend time driving and searching and looking at the wrong properties. The right realtor can narrow your search down in a few minutes on the computer. You may also want to do some computer browsing yourself and we can tell you how. One mistake we see too frequently is using an out-of-town realtor. Someone will take a friend or relative into our area from another city to help them buy a home. This is a benefit to the friend or relative who receives the commission, but not to the home buyer. Knowledge of neighborhoods, price ranges, market trends by area and available services, to name a few, are very important to you and are usually not well understood by an out-of-town realtor.

What will my payment be? Click here to go to a very simple mortgage payment calculator at Bank of America.

What will my closing costs be? This is a very complex question and depends a lot on your financing. Call us at 760-202-3104. We have a program on our computers that will give you a reasonable estimate.

What will my initial deposit be? When you make an offer on a home, it must be accompanied by a deposit to be valid. It all depends on what the seller will accept. You can make an offer with any deposit, but the seller may require more to accept the offer. If there is another buyer offering on the home, it’s always wise to put down as much as you can up to 3%. It makes your offer “stronger” to the seller.

How much down payment do I need? The amount of down payment you need to make before closing is highly variable. 100% loans are still available if you have good credit, but getting rarer. This question is best answered by a mortgage specialist. (see below)

We like to remain independent and avoid “affiliations” in our business dealings. You should feel free to contact any mortgage lender that you have confidence will do a good job for you. Below are several people we have worked with that we would recommend if asked:

     Chris Platamone: 760-776-8230 - Bank of America
     Michael Wolfs: 760-883-2961 - Washington Mutual

If you are considering purchase of a manufactured home, not all mortgage lenders will make loans on them. We have information on several lenders for manufactured homes. Give us a call and we will be happy to give you that information.

If your credit is less than perfect and you aren’t sure if you can be approved to buy a home, give us a call. We have several lenders available that can make loans on less favorable credit ratings. We can also refer you to agencies that can assist you in improving your credit score in preparation for buying or refinancing a home.

The process of buying a home can be rather confusing. You may be dealing with offers and counter-offers, appraisals, inspections, repairs, disclosures, money transfers, and closing dates, to name a few. To complicate the process, you will likely find that the process is quite different in California if you are coming from somewhere else. Here is a link to a glossary of California Real Estate Terminology. But don’t hesitate to call us if you have questions. We will be happy to explain it to you.