A 'Watch' List for Homebuyers This Spring

Probably the most emotional factors for buyers are beautiful upgrades and staging. While these are very nice, please keep in mind that the staging goes away when you buy and the upgrades while nice, can be reproduced on another home.

DRE real estate contracts give buyers a time period to inspect and fulfill their due diligence. This is true of a short sale that you have waited four months for, and it is even true of a bank-owned property. Almost all banks will have a generic addendum that the buyer MUST sign before opening escrow. This addendum will most likely change some of the time frames but there will almost always be an inspection clause and an appraisal contingency clause.

Buyers, especially low-down-payment buyers, should be aware of excessive HOA fees, private community transfer fees, Mello-Roos bonds and base tax rates. All of these items will raise the monthly payment.

Of course, it goes without saying that location is most important because you can’t change that. If you are attracted to beautiful views, which are abundant in Laguna Niguel, remember trees can grow up and block views and new structures can sometimes be built in the way of your view.

Third party inspectors, worth their weight in gold, charge in the range of $300 to $600 for the average home. This is a chunk of change but a pittance compared to buying an existing major problem. Geological conditions are beyond the scope of inspectors generally so if you are concerned, a basic geo report is in the neighborhood of $1,200. Mold inspectors are sometimes a good idea if there is undo moisture in an area of the home or if the buyer is super-sensitive to mold and mildew.

Most Realtors have a list of reliable handymen, electricians and plumbers to help you out with all the small stuff after purchase. Remember: Short sales and bank-owned properties are always “as-is” sales.

Happy spring, the market is heating up.