Moving can be complicated and expensive, but it’s a part of life. The average American moves up to twelve times during a lifetime, and often, these moves can be to faraway places and across state lines.
If you’re planning a move at the current moment, you might be considering a move to the beautiful shores of California. Investing in California real estate can be lucrative and spending your time in the state can be lovely.
It’s important to understand what the real estate market is like there before making any big move. What is it like to invest in California property? Read on and we’ll walk you through a few basics you should be familiar with.
Understand Dual Agency
One way that the California real estate market differs from other states? Sellers and buyers can actually be represented by the very same agent under a principle known as dual agency.
This is actually not allowed in most states around the country.
There are benefits and drawbacks to working with a dual agent, and it’s something you’ll want to do a bit of research on and consider. On one hand, an agent representing both parties will streamline the process and speed things along.
On the other, it can be difficult for an agent to treat both parties equally and look out for everyone’s interests. There’s a chance that going this route could end up impacting you negatively.
Benefit From Excellent Seller’s Disclosure Forms
Buying a home that was already owned by someone else? You’ll be in luck in the state of California, as the rules surrounding the sale of existing property are quite robust.
In order to make a sale on a platform like SellersAdvantage, a homeowner must submit a large amount of paperwork that extensively details the current condition and problems related to the home.
The requirements for sellers within the state are quite extensive. This all helps to serve you, the buyer. Going through all this information before settling on a home will help to ensure you don’t end up with some nasty surprises later.
Requirements to Buy a House in California
If you’re looking to take out a conventional FHA loan to live in California, there are certain requirements you’ll need to meet. These requirements aren’t too different from those found in other states around the country.
In most cases, you’ll need to have a solid credit score (620 or up) and a debt to income ratio of less than 50%.
Depending on the home loan in question, you’ll also likely need to be able to put down at least a 3% down payment, though it could be higher. California real estate can be expensive, which also might mean you need to look into jumbo loans. These are common in the area.
Understanding California Real Estate
Looking to move to the west coast? The above information will provide an important foundation for what you’ll want to know about California real estate. These are just some of the most important factors to keep in mind.
Need more real estate advice and info? Keep scrolling our blog for more.