To How to be a Smart Buyer
by Jim Scott

Last month in this column I discussed how to maximize your profit when selling a home. This month I will discuss the travails of buying. Trying to purchase a property in San Diego has been a frustrating and sometimes fruitless exercise for many people. Perhaps the information presented here will help those consumers who have not achieved their goal of purchasing San Diego real estate this year. 

The Five Rules for Buying Property in 1998 

1. Get a good agent and stick with them. I know this might sound self-serving but it is the best advice I can offer. Buyers who insist on reading newspaper ads, surfing the Internet or going to open houses are really wasting time and possibly money. In this market you need a full-time ally to help you. You need your own professional advocate for this complicated process.

2. Help your agent by educating yourself on the marketplace. It is useful to cruise the Internet and by all means go to as many open houses as possible. The latter is an excellent way to learn neighborhoods. [You might end up discovering an area you never considered before in your home search.] When you go to open houses, please let the agent know that you are represented by an agent. That courtesy will go a long way if you decide to write an offer on the property.

3. Make the home search a priority in your life. If your agent calls you with a new listing, immediately view the home. Do not be afraid to write an offer without viewing the interior. You always have the right to cancel a contract based on a physical inspection. Speed can be of the essence.

4. Listen to your agent's counsel about prices. Prices are volatile now and experienced agents have a good instinct when it comes to prices. Beware of inflated asking prices. Many sellers are now asking prices that are clearly $100,000 over the market. Agents are more important than ever in this marketplace. Some listings are priced so attractively that you must make a full price offer to be able to compete for the property. Others, as noted above, are so woefully overpriced that you may need the guidance of a good agent. 

5. Keep your feet on the ground. It is a seller's marketplace and supply of homes for sale is low. However, as prices and sales improve, more homes should come on the marketplace. This will have the effect of moderating price increases. So be patient as your home will eventually appear on the marketplace. 

Of course there is always a price risk. Prices will increase in 1998. They will not, at least in the Metro area, go up 15 to 20 percent as some people have suggested. Data that I have gathered indicate prices in the Metro area will move up more modestly, probably 7 to 8 percent. 

You can reach Jim Scott by email or at his office at 1111 Fort Stockton Drive. Jim's direct line is 885-9511. 

Jim has been a homeowner in Mission Hills since 1976. Scott & Quinn is the oldest full service real estate company in Mission Hills. There is also a professional property management team on staff.