My Top 3 Tips for Buying a Home on the Peninsula

Buying a home is part of the American dream for many people, and buying a home on the Peninsula has long been considered a great investment. While the market here has had its downturns (most recently between ~2008 and ~2010), the market has historically rebounded well and property values have continued to climb. At any given time, you will probably always be able to find someone in your network who thinks now is a great time to buy and someone else who thinks we’re in a bubble that’s soon to pop. I’m not a realtor or a real estate economist, so you should do your own research to determine your  perspective on what the future holds for the Bay Area real estate market – but if you’ve decided that buying a home here on the Peninsula is one of your goals, here are
my top 3 tips for buying a home on the Peninsula…

A few notes before we get started:

• These thoughts are based on my personal experience and opinions, and your experience might be different.
• This post does not include a rent vs. buy calculator, but there are lots of great ones just a quick Google search away.
• I’m not a realtor, but if you’re looking for one, I’m happy to provide some recommendations. Send me a note on the Say Hi page!

With those notes out of the way, let’s get down to the topic at hand…

Tip #1 – Be prepared:

• Do your research: Talk to a realtor or take some time to review listings on Redfin or Zillow to get a sense for what homes are selling for in the town(s) you want to live in. Given the generally high cost of living, the biggest barrier to being able to own a home on the Peninsula is saving up for a down payment. If you needed to make a 20% down payment, for example, are you currently prepared to do that, given what homes are selling for in the market you are looking at? If the answer is yes, awesome! Go you! If not, make a savings goal today and make a plan for how you are going to reach your goal.
• Get pre-approved: If you have a solid nest egg in savings for a down payment, talk to a mortgage consultant and get pre-approved. The real estate market moves very quickly on the Peninsula, and you will likely need to provide a pre-approval letter with your offer on any property you are considering. I know that in some places (i.e., New York), it can take months for sales to close. On the Peninsula, I’ve heard of all cash offers taking as few as 7 days to close, and financed offers closing in less than 30 days.
• Define your priorities: Buying a home can be overwhelming in lots of ways, and, while the market is competitive, you will have options during your home buying journey. Deciding ahead of time what things are “must haves” vs. “nice to haves” will be essential in helping you stay focused on what you want as you navigate each open house.

Tip #2 – Find a realtor you trust: Given how high home prices are, buying a home in the Bay Area will likely be one of the biggest financial decisions you will make. As a result, having an expert buy your side that you trust is incredibly important. Your realtor is best prepared to help you make your offer as strong as possible when you’ve found a home you want to buy. It’s up to you to decide what you are most comfortable with, but it’s not uncommon for people to hear about all cash offers, offers well above asking, and offers with no contingencies here in the Bay Area real estate market.  I will reiterate that it’s up to you to determine what types of terms you are comfortable with – but your realtor can provide helpful data and guidance to inform your decision.

Tip #3 – Be patient: Once you have started to make offers, be patient. It’s possible – probably even likely – that the first offer you submit will not be selected.

If you’re anything like me, this may be an emotional process. By the time I made my first offer, I was so emotionally invested that, when I got the call from my realtor while traveling that my offer wasn’t selected, I ended up in tears in Times Square. Yes… embarrassing, I know… but the story does get better. Two homes and two offers later, I made an offer I was comfortable with on a home that met all of my “must haves” and most of my “nice to haves,” and my offer was selected. Just as they were for me, patience and resilience are likely going to be key for you in your home buying journey.

With these 3 tips in mind, I hope you feel more prepared to begin your Peninsula home buying journey. If you are more interested in renting for now, stay tuned for a post on that topic.