Buying a home in the South Bay/ Beach Cities can be a daunting task whether you are a first time buyeror have purchased a home in the past. Many buyers aren't sure about prices... will they go down a lot or a little or not much.  Should you buy  a home or a townhome or a condo or maybe a duplex.  How about financing... how much money will you need to buy a property in the current market. There is a lot of advice in the media about buying a home, townhome or condo in today's real estate market. The best hint I can give to those thinking of buying a home is to slow down.

I know that sounds a bit strange in our current market...after all according to the media you have all the time in the world if you are thinking of buying.  However if you want to buy and get the best deal possible, then you need to focus on those things that will help you accomplish that goal. Too often buyers are scurrying around looking at open houses, talking to their friends about the market, reading media items and just generally doing everything but thinking about what they need to do and the best way to do it.  Price is important but if you really want to be a homeowner then you need a plan.

The 7 Things to Know When Buying a Home :

1. Gather all your financial documents together.. that's bank accounts, stocks, check stubs, birthday money from Aunt Jane and Uncle Harry... anything that has a bearing on your finances.

2. Find a good lenderand talk to them about the various types of mortgages, interest rates, the costs of the loan and your credit. If your credit is bad find out what you must do to repair it. You may need to wait another year before you buy if you have to clear up your credit and pay off bills.   If you need to save another $100 a month then figure out how many lattes you can't have.. Get your financial house in order before you look at one more open house.

 3. Find a good agent. Call your friends and ask for referrals. Go to open houses and talk with agents. Get on the internet and check out agent websites and blogs. Pick someone who shares information... a lot of information with clients on their sites and in person. Remember how much you loved your kindergarten teacher because of all the things you learned.... you should like your agent just like that... for the same reason.

4. Look at property. Be ready to meet with your agent if they tell you a great property has come on the market in your price range.  Don't get caught up in the idea that because inventory has increased there will lots of homes you will like in your price range.  Many times an increase in inventory is not an increase in homes that fit your budget and needs.  If you are too busy going out with your friends or are just too tired or not in the mood to see homes then you might not be ready to buy. Buying a home is a grown-up decision.. if you aren't ready.. pass until you are ready. Never buy a home if you are not financially and emotionally ready.

5. Figure out why you want to buy a house. If you plan on making a quick buck and selling for a profit in a year then you are not very realistic and may wind up in trouble in the future. Thoses days are long gone.   Remember buying is a grown- up decision..if you see a home as shelter for you and your family and as a long term investment that you are willing to make a few sacrifices to obtain.. now just might be a good time to buy.. Interest rates are still low and a lot of sellers have realized that the market is not going up anytime soon and are willing to negotiate price and terms.

 6. Be realistic.. start with a property you can afford.. which may not be the one you dream of owning..  Yes,  prices have declined but in many areas they have not dropped as much as buyers were hoping to see.  If you are looking in Riverside or San Bernardino Counties prices have really dropped.  However if you are looking in the Beach Cities prices are certainly less then they were two years ago but they are still on the high side. You need to know where prices are in your market. 

7. Listen to your agent not your buddies or co-workers. If you don't trust what the agent tells you then you need to find an agent you do trust. Your friends are not in real estate.. they don't know the market. Your real estate agent knows the market and will guide you if you pay a bit of attention.  If you have chosen your agent well,  they will offer you good advice.  That's why it is important to choose someone you trust.   I know there are a lot of people who don't think this is the time to buy and it may not be for them. But if you are ready this may be the right time for you. Trying to time the market is almost impossible. Generally by the time you figure out it's time to buy .. the best deals will be gone.

This is a very tough market for many potential buyers.  Unlike the market of a few years ago,  you will have to have cash for a down payment along with very good credit.  This isn't something new or scary...this is just common sense.