Buying a Home in San Diego

My goal with this blog is to make it a real resource for San Diego home buyers. My hope is that the content here is helpful in many ways to anyone who is buying a home in the San Diego area. I am trying to put myself in my clients' shoes and answer all their (and your) questions about the buying process within all the different posts I write here. I have about a dozen posts in the draft stage that I am working on, and I have ideas for many more, but I want to make sure that I am writing about topics that matter to you, the San Diego home buyer. This is where YOU come in. Here is your chance to ask a San Diego real estate question. Depending on how many there are, I hope to be able to respond to your questions in future blog posts. Do you have suggestions for topics of future posts? Write them in the comments section or send me an email. I will leave this post active indefinitely, so it doesn't matter when you are reading the post. Feel free to comment or ask a question. Thanks!

First of all, I must admit that I don't watch a lot of TV (If I do, I mostly watch sports - Go Chargers!), and I really don't watch much HGTV. My wife is more of an HGTV type of person (she's into interior decorating). The few times that I have watched real estate shows on TV (such as HGTV's Property Virgins or Bravo's Million Dollar Listing), I always seem to get irritated by the way the real estate agents act during the show. Two things I've noticed that drive me nuts are (1) the agents always seem to point out the obvious, and (2) the agents always seem to be trying to "sell" the home to the buyer. 

Here's an example: Agent Suzy opens the door to the master bedroom and says, "Here is the master bedroom with hardwood floors, crown molding, two huge walk-in closets, and beautiful french doors that open to your large master balcony." Then, Agent Suzy proceeds to make these sorts of statements in every other part of the house. If I was the buyer, I think Agent Suzy would drive me crazy! Do agents really talk this way with their clients? I hope the director makes Agent Suzy talk this way in order to "make the show more interesting."

Here's how I would do it: Open the front door and let the buyers roam. Buyers know what hardwood flooring looks like. I don't need to point it out. Buyers know what looks good to them (and what doesn't). Buyers have different tastes. Buyers usually know what they want. I take a consultative approach to being an exclusive buyer agent. As we walk around the home (or after we've finished looking at the home) I always ASK my clients what they like about the home. I ask what stands out to them, what they think about the floorplan, what they think about the kitchen appliances, what they think about the size of the master, etc. I ask them if there are any negatives that stand out. I ask how it compares to the last home we saw (or how it compares to their favorite). For me, this makes the process more about the buyer and less about me. Who cares what I like about the home? I'm not the one who's buying it!

That being said, I would be sure to point out things that my client may have missed. If I notice a hole in the wall, I ask the clients if they saw it. If I see power lines in the backyard or hear a train go by, I ask the client how they feel about that. The point here, I think, is that different agents have different approaches to the real estate business. An agent who normally handles listings, I would think, would be accustomed to "selling"/"marketing" the home. That's a listing agent's job!

I chose not to take a salesperson approach to real estate (but I'm not saying my way is the right way). The approach I take is a consultative approach. I view myself as my clients' consultant/advisor, and that competely changes the way I handle things throughout the purchase process. I don't take clients into homes and try to sell them each one until they finally sign a purchase contract. Instead, I take clients into homes, ask a lot of questions, and help them narrow down their search until they find the perfect home. I don't say things like, "Gee, Billy, can't you just imagine sitting here with Sally on your comfy sofa enjoying your favorite movie while a small fire crackles here in your beautiful stone fireplace?" Instead, I might ask, "Hey Billy, what did you think about the fireplace?" In my mind, buyers don't need to be sold anything! The clients I work with are motivated. They're going to buy when we find the right home. My job is not selling my clients a home... It's simply to help them find the right home! This is why I love my job. My job is simply to HELP, and there are plenty of people who need my help with buying a home in San Diego.

Now that I've gotten that off my chest, I do want to say that if you love watching these kinds of TV shows, they're probably not all that bad! In fact, I'm sure that they are very educational and fun to watch. I actually like seeing the types of amazing changes an interior decorator can make to a home, and I also enjoy seeing some of the beautiful homes they feature on these shows. For some reason, it's the real estate agents that drive me crazy. Oh well. Not every show is for every person. I guess I'll go watch some football.

I know, I know! When you finally decide that you want to buy a home, the first thing you want to do is... GO SEE HOMES! Hold on for a second. There are some things we need to talk about before we jump in the car and drive around all afternoon (and you will thank me later for sitting you down and having this conversation).

The goals of the Globella Buyer Strategy Session are (1) to save you time, (2) to lay a strong foundation for working together, and (3) to provide you with the information you need to be able to make smart, informed decisions.

What exactly is an initial consultation? Once we've had a chance to talk on the phone and answer your questions, the natural next step is to meet in person, spend more time, and go more in depth on everything. Buying a home is not like buying a car. It's a much, much larger investment, and we have a lot to talk about.

One of my majors back in college (at Grand Canyon University in Phoenix, AZ) was Secondary Education (my second major was Mathematics, and I minored in Biology). I completed my last semester of college as a student teacher, but other opportunities opened up for me (ask me some other time), and I never became an actual teacher. However, I have always had a heart for teaching, and one of the things I enjoy the most is educating my clients in our initial consultation.

So, what exactly do we talk about?

First of all, we will just talk. I think it's important that we get to know each other. You are going to be spending a lot of time looking at properties (etc.) with your agent. You want to make sure you find an agent who you like and get along with (as well as an agent who is best-suited to truly help you).

Secondly, we will clarify exactly how I work. You need to know my business philosophy, how I respond to emails, how many clients I work with at one time, how I get paid, etc., etc.

Next, we will take some time to review the real estate purchase process. Whether you are buying for the first time in San Diego or for the 100th time, there is a lot you need to know about the current real estate market. During this portion we will discuss in detail things like: How to Review Your Loan Pre-Approval (or How to Best Prepare an All-Cash Offer), How Agency Works, How We Will Find Homes (who schedules appointments, what online tools do I have to help you save time, which days/times will we look at property, what info do we need to find out from listing agents, HOA management companies, etc.?), Writing an Offer, Your Good Faith (Earnest Money) Deposit, How Long Does Everything Take?, Opening Escrow, Inspections, Seller Disclosures, Reports, HOA Docs (if you're buying a home/condo that's part of an HOA), Hazard Insurance, Securing Your Financing, Appraisals, Title Insurance, Home Warranty, Close of Escrow, When You Get Your Keys, etc.

You may have a lot of questions here, and that's a good thing. By covering all of this in one sitting, we save you a lot of time down the road.

Next, we will review short sales and foreclosures. I think it's super-important for you to have a healthy expectation of the marketplace. As I write this blog post, many areas of San Diego have many foreclosure and/or short sale listings available. You need to know how these listings differ from traditional listings, and so I review all of this with you in the initial consultation.

Of course, there are times when we go out of order. The order isn't important. What's important is that we cover all of these areas and that you are educated from the very beginning about the purchase process. I realize that this is one of the largest purchases of your life, and I don't take it lightly. My job is to be your consultant/advisor and to provide you with the best information you need, so that you can sleep at night knowing you made a wise decision. When we're finished with the Globella Buyer Strategy Session, you and I will know whether we're a good fit for each other or not. If we decide to move forward and begin our working relationship, we will take care of the paperwork at this point (see some of my other posts for details about "paperwork").

Another important topic for us to review is what you you want in a home. What exactly are you looking for? We'll talk specifics about bedrooms, bathrooms, zip codes, etc., etc. Then, we'll take a look at the market statistics for your target market and figure out what sort of marketplace we're dealing with (Remember, real estate is local. Each area of San Diego is unique, and while one area/price range is experiencing a "seller's market," another area/price range could be experiencing a "buyer's market."). We'll take a look at the statistics to further establish the appropriate expectations for your specific home purchase.

If we haven't already reviewed your time frame (If you have total control, when would you choose to move in to your new home?), we'll be sure to do that at this point in the conversation.

By now we'll  have been talking for at least 30 minutes (and, in many cases, we'll have already spent more than an hour with each other). I'll handle any other questions that you have. Assuming that we both are ready to move forward (we both feel that we're a good fit for each other), at that point we'll take care of the paperwork, formalize our relationship, and take care of any miscellaneous items we need to take care of before adjourning. In some cases, we may go look at properties right away. In other cases, we may schedule to look at properties at a future date (depending on your situation).

I enjoy these meetings. I enjoy walking buyers through this process. Sometimes, I don't even feel like I'm working. My #1 focus when I begin working with a new client is customer service. I have seen time and time again that by focusing on customer service, my clients truly appreciate the level of service I bring to the table, and they tell their friends about me (and my business grows from referrals/word-of-mouth). That's cool!