Your Exclusive Look into The Home Buying Framework from a Top 1% Realtor
What are my secrets that have already helped 35 families as of July 2021? Find out here as I go over the exclusive home buying framework as if you were my client! You don't want to miss this.
You may have heard that the market is intense, but you may also have heard that there is a lot of people coming back to the Bay Area. So, what are my secrets? And what is my home buying framework that has helped 26 families buy as of June of 2021? You don't want to miss this. Welcome to another episode, my name is Spencer Hsu, the Tech Realtor of the Bay Area. I make these videos to help you become a smarter real estate buyer and seller. Now, for this particular one, I want to go over my home buying framework, which I typically do as a private consultation for everybody that gets either referred to me, that finds me through my YouTube channel. But instead of doing that, let me just go over it as if you're my client. And that way if you're either working with somebody and you're looking to make a change, or you're just starting to get into real estate, I would love to absolutely be able to help you as your realtor. So, what are the steps for the home buying framework, especially in this modern time? So I'm a big believer of leveraging the tools that are available for clients, and not just shoving them down kind of what I think is going to be the best path. I look at all tools available to help my clients have the best user experience, but at the same time have the right education and process so they're not left scrambling. First and foremost, the most important thing before you actually even look at any properties is to get pre-approved. You want to make sure there are no issues with their credit scores, no issues with even potential immigration statuses that may affect a loan. Because many times we all may make very good money but depending on different kind of back end things, whether it's immigration, whether it's credit scores, whether it's a surprising blip on a credit score, all the things may impact, you know, what you can buy up to. And there's no reason to guess on this. Sure, there will be a credit score impact. Usually, that's a pretty minimal score, minimal impact. And keep in mind, typically credit scores are determined by ranges in terms of what they will provide to you in terms of brackets. So don't be too alarmed by that. In a couple of months, it's going to fully recover and you rather eliminate all guesses especially get ready to spend a lot of time going through the journey. So, you want to get pre-approved and primarily you want to get pre-approved with hopefully one of my trusted lenders because I know they do a really good job because I do a lot of volume with these individuals. So number one, you get pre-approved and you always ask, what is my maximum? What is my ceiling? The reason for that, it doesn't mean you are going to your max, but rather than going back and forth later, which then they may need to rerun your credit or at least do more paperwork, you now know your ceiling and then you also get a better sense of what is my monthly payments if you reached your ceiling. But at the same time, you know, you may search for something 20% less and that's okay. But at least, you know what your ceiling is in case you ever wanted to get there. Or maybe over some time, you may have adjusted your own criteria to get to that level. What is number two? Number two is then to discovery usually with the agent. It's very important to have an understanding of what is available in different areas. Like for example, this week, I talk with a few clients who were looking for top schools in the area. They're looking at Orenda, Lafayette. Danville, Walnut Creek, Pleasant Hill. If you are familiar with the East Bay, you'll know that, hey look, well, they're all good areas 'cause many of them have very good schools, but the price range changes drastically, but not everybody knows that. Or not everybody wants to believe that because listing prices have no correlation in relation to what homes will sell for. So what is a very quick and easy exercise for that? The easiest thing is using a tool on the realtor side, which is basically sharing with clients what has sold in the last two months with the specs that the client may be looking for. That way you will know yourself, hey, look, if there are many options that would have worked two months ago, then there's a good chance that upcoming there'll be something around the corner. But if you realized while there is nothing that sold in the last two months in that criteria, then, you know, as well that search is not going to work. And so you should immediately change the parameters and you can change the parameters in different ways. For example, you can move from single-family to town homes. You may move from a different square footage minimum requirement, it could be a lot size requirement. It could be different cities altogether. So this particular client decided to now move into Walnut Creek or Pleasant Hill. Instead, which had a lot of options with their budget. So that's something very important to understand. So you don't get fall into a trap because we will be going on this journey together. And this journey will have ups and downs. I mean, hopefully, we'll have a lot fewer downs than ups, but you just never know. And you want to have things on the right footing and setting the right expectations is very important to do so. So work with your realtor, hopefully, it's me to be able to help you with that analysis upfront. What's next, Want to see homes. And if it's kind of within line of the type of specs that you have seen previously, what I offer to all of my clients, as well as hey, look, why don't you just send me the properties before you even go see it? I will run my quick analysis as a detailed parable market analysis to tell you what I'll probably go for. It only takes me the same day I can get it back to you. And that helps you filter things automatically, or at least set you up with the right expectations as to what a home would like to go for. In that way, you know in advance, hey, look, it's going to probably cost me $1.5 million. Do you want to still go if you knew that I was going to sell for 1.5, that is your choice? Given the fact that I've helped 26 families this year and I make this analysis every single week, I've been extremely spot on with the analysis. Sure, there may be some deviations because we don't know the competition at that early stage. But just by looking at the numbers, you'll be able to see pretty quickly what it'll probably go for. Check out all of my reviews so you can see this data analysis approach that everyone has boasted about because it saves everybody a lot of time and a lot of headaches altogether. So after I do an analysis, you would be able to see, you know, what homes have sold for, from there, then you can start browsing for homes. As of right now, which we're filming this in pretty much our first week of June. Open houses seem to be back, right? So it's been, you know, it hasn't been the case for the last 15 months, but they seem to be back. And so you have two options. If you want to go where there's a lot of people and you want to kind of go on your own, feel free to go on your own. Usually, open houses are one to four o'clock on weekends, and just feel free to let them know that you're working with me. A majority of agents all know me. So then we can talk about strategy afterward. Now, if you're busy, the one to four slots, or they may not host it, which is not unusual, then that's also where you reach out to me. I will help you schedule it for either myself or my partners, to be able to get you in the door whenever you want. It could be a weekday. It could be an evening. It could be the mornings on the weekends, could be the late afternoons. Could it be evenings? It doesn't really matter. Anytime after those time slots are available for you to be able to go see it with me or my partner privately. And the idea is, we'll set up an itinerary, just like how you may go to various different open houses all in a row. So that would be what people typically do. After that, if you like a house, there are two things that happen. If you like a house, then we would prepare all the due diligence. Most of the times homes come on the market Thursday or Friday and they'll have an offer deadline mid the following week. So in general, my advice is always to look in the market. Look on any portal that you're looking at, Redfin, Zillow, my website. Thursday, Friday, go check it out, hopefully as soon as you can. And then after that, if you like it, then we need to start preparing the due diligence and the strategy. So we don't, want to front-load this work because we don't want to scramble at the end. So we want to front-load any sort of prep work. So we review everything together. Your review on your own first though, disclosures. So as disclosures our seller remarks along with things about like inspection reports. So those are completely done by third-party companies. You review everything, make sure it all looks good. Compile a list of questions and concerns that you may have. Given I read tons of those reports every single week. I know quite a bit. And then I will also let you know what you need to be concerned about before we even think about making an offer. So that's one step, which is the analysis of the disclosures. Number two is a deeper dive into property prices. I will always share with you what other homes I've sold for. So you can visually see for yourself. I will give you my prediction, what this will probably go for. And I will also tell you what it'll properly appraise for. Which are not always two same figures. In the rising market that we're in now, don't be surprised that the list price, that the selling price does not match the appraisal price. However, it doesn't mean that you're overpaying. Remember appraisers always look at old data, which is not going to be competitive with its market unless the market is dropping, which we all know it is not. So that's something to be mindful of that you need to prepare some sort of gap and then I will give you the heads up as to what kind of gap you need to be prepared for and every situation will be different. If you're going for example, with 25% down, 30% down, 40% down, your appraiser, quite frankly, doesn't matter a whole lot. Versus if you're really stretched at 20%, 10%, 5% down the type of client. That is a very different strategy conversation we need to have separately. And there was going to be a risk and reward that you need to factor in when it comes to competition. And so those are some of the things that we do in terms of prep work. The thing that I do after that is that I will find out what the competition looks like. I will find out how many people came in, how many disclosures were sent out, how many offers you're expecting, and using those data points as well, piled with any sort of remarks on the disclosures, paired with what other homes have sold for. We will come up with a pricing strategy and that we will submit our offer. And then we will do the best that we can when it comes to that offer. But I hope that gives you a quick briefing as to what I actually go through with all my clients on a step-by-step process on the framework side. Now of course at the end of the day, every home will be different. Every home will have its own strategy because of all of those things that we just brought up, nevertheless though, everything is certainly very doable, as long as you follow those steps. So if you found this video helpful, be sure to hit that like button. And subscribe so you don't miss another video and be sure to hit that notification bell. And of course, if you're working with somebody else, you're not happy and you don't have a buyer's agreement, feel free to reach out or if you're just getting started, it's never too early to get introduced for me to be able to help you. You could be a year out. This could be a research video. You could be actively looking and you're like, hey, look, I want a top-producing realtor on my side. I'm happy to help you. There is no pressure and no obligations at any time, but I think you will greatly appreciate the material and the strategy and insights that I provide. So thank you again for checking in on this video. I'll see you at the next one, engineering a better life today.