Your first step is to find out how much of a house you can afford.   Below we have a mortgage calculator for you to roughly figure out your payments.  To find out what the current mortgage rates are, we have provided several links to lenders   Ditech Mortgage usually has today's current interest rates.  It is always advisable to check with several lenders to see what programs are available.  We have always found that Dona Knapp provides excellent service to first time buyers.

Your next step is to check out the homes that are available.   The best way to do this is to search the MLS for homes in Nevada County. This link will let you do a real time search of homes that are currently on the market, and you can even set up an account so that when any new listings that meet your needs become available they will be emailed to you

Access the Multiple Listing Service -  MLS

Nevada County Realty is always available to answer, or research any of the homes that you come across on the internet.  We can also show you any of the properties.  We also provide you with Buyer's Rebate and Buyer's Broker Services.   Dave and Debra Schafer provide a buyer's rebate, buyer broker services, and have over 20 years of combined experience in real estate.   You can call them at (530) 272-3838, or email them at manager@nevadacountyrealty.com

It is now time for you to go and look at homes.  Nothing compares with actually getting out there and seeing the property.   A good number of homes to see in a day is 10, but we can do as few as one, and as many as 15.   Allow at least 4 hours to see 10 homes.  We first  meet at the Nevada County Realty office, and go over the houses we will be looking at, then we hop in the car and go look at houses.

When you have found the right home that looks like a possibility - it is time to try an offer.

THE OFFER

The nice thing about real estate is it is not like buying a car.  Whenever you put an offer in on real estate it begins a process.  It takes a long time from the time you get an accepted offer to the time you actually take title to the property.

Most offers, on an average right now, are coming in around 10% under list price, and then are settling at around 5% under list price.  Of course, many things come into play here such as:  how well the property is priced, how long has it been on the market, how much the seller is willing to, or able to, come down.  And, how much the seller may believe that other offers will be coming in.

 There is an 8 page document that we use for the offer.  Once accepted it becomes the contract.  

The deposit amount is usually 1% of the purchase price.  It is held by an escrow company and the seller cannot obtain access to it, unless the buyer lets them. 

 Your deposit is protected by two main contingencies.

1.  Loan Contingency-  For a negotiated period of time, if anything happens to your financing, you are able to cancel escrow and get all of your deposit back.  This includes interest rates going up past your comfort level, the appraisal, and any loan underwriting issues.

2.  Inspection Contingency-  Upon an accepted offer, and when a property goes into escrow, the escrow inspection period begins.  There is a negotiated amount of inspection time, with the usual inspection time being 17 days from the acceptance of the offer.

 THE INSPECTIONS

 The California Department of Real Estate strongly advises Buyers to investigate many things when buying property.  

 Usually it is a good idea for the buyer to pay for most of the inspections.  The reason is that it is good to have the inspector working for the buyer, and their fiduciary duty is to the buyer, and not the seller.

 Here are some of the important inspections:

 REVIEW OF SELLER DISCLOSURES - The seller will give to the buyer, within 7 days of acceptance of offer, disclosures pertaining to the property.  The Buyer can review these disclosures and respond should any items of concern be apparent.

 HOME INSPECTIONS -  The buyer can have any type of inspection done to the house.  The most popular is to have a licensed home inspector thoroughly inspect the house and then generate a written report of their findings   (average cost $350)  If the inspector finds a condition that needs further inspecting he will call it out.   For example if the roof has issues the inspector will call for a roofer to further inspect the roof.

 PEST INSPECTION -  It is always advisable to have a pest inspection.  (average cost $150)  It is usual and customary for Buyers to pay for the inspection, Sellers usually always repair section one conditions, and section 2 is negotiated.  

 Section One-  Damaged wood, or active infestation of termites.  

 Section Two-  Conditions that can lead to future damage.  Example-  If there is no caulking along your bathtub at the floor, then water can get in there and cause dry rot.

 WELL INSPECTION -  It is advisable to have a licensed well company do an inspection on your well.  They inspect all the equipment, and then do a 3 hour production test.   They also do a bacteria test, and can check for minerals.  (average cost $375)

 SEPTIC INSPECTION -  It is a good idea to have the septic tank pumped and inspected.  The seller usually pays for this. (average cost $800)

 SIZE -  Square footage of the house, and lot size. 

 LINES, BOUNDARIES, AND EASEMENTS -  Property lines, easements, boundaries, leach lines.  Fences, hedges, walls, and other natural or constructed barriers or markers do not necessarily identify true property boundaries.  Property lines may need to be surveyed if the seller cannot show where the lines of the property are..

 ZONING AND LAND USE -  Inquires, investigations, studies or any other means, concerning past, present, or proposed laws, ordinances, referendums, initiatives, votes, application, and permits affecting the current use to the property, Buyer’s intended use of the property,  future development. zoning, building, size, and governmental permits and inspections.

 ENVIRONMENTAL HAZARDS -  Potential environmental hazards that may be associated with the property

 GEOLOGICAL CONDITIONS -  Geological/seismic conditions, soil and terrain stability, suitability, and drainage.

 NEIGHBORHOOD, AREA, AND SUBDIVISION CONDITIONS -  Neighborhood, or area conditions including agricultural use, right to farm laws, proximity to commercial, industrial, or agricultural activities, fire protection, other governmental services, existing and proposed transportation, construction, and development which may affect noise, view, traffic, airport noise, noise or odor from any source, wild and domestic animals, other nuisances, hazards, or circumstances, facilities, and condition of common areas, proximity of schools, shopping, law enforcement, and crime statistics.

COMPLETED INSPECTIONS

 When inspections are completed, then one or more of the following generally occurs.

 1.  The property is suitable for purchase at the agreed on price.

2.  The property has some conditions that are unacceptable at the agreed on price, but the seller may contribute either financially to the buyer to offset these conditions, or make the necessary repairs of items in questions.

 3.  The property has some conditions that are unacceptable under any circumstances, or the seller is unwilling to contribute to, or fix issues, and so the sale needs to be terminated. 

Deposit money is held in escrow during the inspection phase of the escrow.  Should the sale need to be terminated by the Buyer for ANY reason during the inspections, then all of the deposit money is returned to the Buyer, minus any inspections costs the Buyer is liable for.

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