Home Buyers

What’s Happening With the San Diego Real Estate Market?

October 17, 2022 by Danielle Negroni Leave a Comment

It is the number one question my clients ask as the markets fluctuate and interest rates rise. Everyone wants to know if the housing market will further decline and are we heading to a “crash.” Let me share with you a few reasons as to why I believe the San Diego housing market will not “crash,” and in fact, it is an excellent time for Buyers to purchase a home for personal or investment purposes.

1. The Facts – In 2021, the San Diego real estate market appreciated up to 40%. We’ve seen a pricing decline of 10-15% in the last few months. The net result is that most homeowners still have substantial equity in their homes. Because of this equity, we do not see short sales or foreclosures. And Sellers aren’t “desperate.” The decline of the last few months is a market correction to adjust for the 2021 accelerated appreciation.

2. Historically Low Inventory – There is still a housing shortage in San Diego County, and it’s projected to take up to ten years to correct. Yes, more houses are on the market than last year. However, it’s still limited in many desirable communities.

3. Interest Rates – Interest rates are on the rise, but don’t make the mistake of thinking they will drop back to the historically low rates of 2021. Rates of 5%-6% are still fantastic, and they should not deter Buyers from making a purchase. If rates unexpectedly decline, the option to refinance is available.

4. Less Competition – Most homes today are sold without multiple offers. Take advantage of this competitive edge, and be the sole bidder. You most likely will get a discount off the list price, in addition to favorable terms that disappeared in the past year.

5. Safe Place to Hold Cash in Volatile Markets – Buying property is an excellent cash investment due to the stability of the real estate market in San Diego. Our market appreciates year after year and often outperforms other opportunities.

Have more questions about how the San Diego real estate market looks in your neighborhood or zip code? Give me a call!

Buy, Sell or Wait? Coronavirus’ Impact on the San Diego Real Estate Market

April 7, 2020 by Danielle Negroni Leave a Comment

Close-up Of Mature Couple Looking At House Photo On Digital Tablet

Over the last few weeks, my clients have had a multitude of questions and concerns during these uncertain times. I would like to address them here, and answer as many questions as possible with the most reliable information available to date.

First and foremost, my top priority is the health and safety of my clients, fellow Realtors, and our amazing community. I will continue to follow all CDC, WHO and California Association of Realtors (C.A.R.) guidelines and incorporate these parameters into my day-to-day business.

Secondly, although the federal government has funded an economic stimulus package, it will take time to unravel the economic ramifications on our local real estate market. This unprecedented health crisis is unlike any real estate market disruption we’ve experienced before. Unlike the S&P 500, the real estate market is not summarized in a daily snapshot.

As our social distancing restrictions ease, the real estate market will return to business as usual. Until then, buyers, sellers, Realtors and everyone else in the real estate industry will continue to conduct business the best they can while following all pertinent rules and guidelines. Below is a brief summary of what’s happening in the San Diego real estate market as of April 2020:

Today’s Market:

Real estate transactions are still ongoing. Escrow, title, lenders and notaries are working. Existing transactions will still close although there may be some delays. Appraisals, home inspections and photography is delayed so new escrows will most likely extend beyond the traditional 30-day escrow

Mortgage rates are historically low, and may go lower.

Virtual showings and tours are allowed.

Today’s virus conditions are different than the factors that led to the housing decline in 2008. It’s anticipated the housing market will remain strong with low inventory and interest rates. People still want to buy homes, as real estate is historically a solid long-term investment.

Investors are investing money into real estate in lieu of the stock market.

Buyer and Seller Tools Available to you in the Current Market:

I’m using a digital platform to schedule virtual tours of homes. If you are interested in looking at homes, please reach out to me to discuss how best to views properties that are still on the market.

I am sending regular market updates to my buyers, sellers, and anyone who’s interested. Just reach out if you’d like to receive these reports!

I’m assessing market data on a weekly basis to assess current valuations and pricing. Even in these uncertain times, I want to be sure my sellers are pricing their homes competitively and my buyers are making informed decisions.

Buyer Considerations:

Review your financial qualifications with a reputable lender as lending terms have changed in the past few weeks.

Compile a list of target homes and investigate the Seller’s motivation and reasons for a sale.

Take virtual tours, but rely on my experience and market knowledge for invaluable input.

Seller Considerations:

Serious buyers are still in the market. Don’t panic and take a “low ball” offer out of fear.

Realistically it may take longer to sell your home so exercise patience as buyers pivot to virtual platforms.

Use the extra time to do repairs, organize closets and other home DIY projects to ensure your home is in ideal showing condition.

I realize many of you will have additional questions that are specific to your needs. Questions like:

How will the new C.A.R. Corona Virus Addendum impact my current or new escrow?

Fannie Mae and Freddie Mac have eased their standards for property appraisals and verification of employment – how does this affect me?

Are jumbo loans now more difficult to secure?

How does the mortgage forbearance program and moratorium on evictions impact me?

I’m available to answer these questions and other concerns you may have at this time. Please feel free to reach out at your convenience and we can discuss how I can best serve you. Stay safe and healthy!

How to Buy a Home in 2020

January 14, 2020 by Danielle Negroni Leave a Comment

Want to buy a home in 2020? Consider these six easy steps to ensure a smooth and successful purchase.

1. Check Your Credit

A good credit score is critical. A high credit score makes it easier to qualify for lower interest rates and offers more affordability. Be sure to check all three credit reporting bureaus: TransUnion, Equifax, and Experian. The right lender can often make quick and easy recommendations to raise your credit score those few extra essential points.

2. Save, Save, Save

You’ll need cash to buy a home, but saving goes beyond a down payment. The best interest rates often require a 20-25% down payment. Also, a lender will require up to six months of cash reserves in a liquid account. Lenders want to know you can afford the PITI (principal, interest, taxes, and insurance) during work transitions.

3. Get in Touch with a Lender

Take the time to interview a few lenders and learn about the different mortgage programs available. They change frequently and are competitive with other banks. Ultimately you want to work with a lender you trust and one who has invested the time to generate a pre-approval letter and not just a pre-qualification.

4. Look at Neighborhoods

In addition to getting your finances in order, take a look at different San Diego neighborhoods to decide where you want to live. Some factors to consider are commute times, school ratings, friends who live nearby, curb appeal, and local shopping and restaurants. Often, spending a few weekends driving around a community will provide clarity.

5. Visit Open Houses

Even if you aren’t planning on buying a house immediately, visit some open houses. Open houses allow you to explore neighborhood floor plans, learn about standard upgrades many homes may need, the importance of natural lights and yard sizes. Due diligence is just as necessary when searching for a home as the actual buying process.

6. Interview Real Estate Agents

If you’re buying a home, it pays to use a Realtor. In San Diego, the Seller pays all commissions. That’s right! As a Buyer, you pay no commission. A Buyer’s agent is your advocate and works with you every step of the transaction. Like any profession, take the time to interview a few different agents as it’s essential to work with someone you trust and has experience.

Are you planning on purchasing a home in 2020? I would love to chat and answer any questions about the above and the ideal next steps! (858) 735-5767

New FHA Guidelines Introduced for Condominium Mortgages

August 27, 2019 by Danielle Negroni Leave a Comment

Summer might traditionally be the time to buy, but if you missed out this summer, don’t worry! The Federal Housing Administration (FHA) just released new guidelines to promote homeownership, especially among first-time buyers. These changes will be in effect later this fall which means that the best time to start looking for your new home is right now!

What Changed?

The FHA released new guidelines on August 15, 2019 on how FHA mortgage insurance impact condominium units and projects. Here are some of the changes:

Individual condo units are eligible for FHA mortgage insurance even if the condo project itself is not FHA approved.
FHA approvals for condominium projects have also been extended from two years to three years.
Condominium projects no longer have to submit all project information to be recertified, just update new information.
Commercial space restrictions are eased to allow more mixed-use projects.
Condominium projects owner occupancy rates are lowered from 50% to 35%.
The FHA will insure up to 75% of condominium unit mortgages within a project.

These changes go into effect on October 15.

Why It’s Good News

The changes make it easier for condos to get approved for FHA mortgage insurance, especially individual units! This means that you can be approved for an FHA loan even if the condominium project itself is not FHA approved.

With more units qualifying, this means more options for first-time homebuyers who want to buy with an FHA loan. According to the LA Times, “just 6.5% of the 150,000 condominium developments in the United States were previously eligible for FHA-backed mortgages.” FHA loans allow down payments of as little as 3.5% for borrowers with a credit score of 580 or higher. You can see how these changes will add many homes into the housing market – so you can find a home at an affordable price!

How Can It Help Me?

Here in San Diego, home prices have been on the rise. But condos remain an affordable choice for first-time home buyers! The median price for a condo in San Diego County is only $425,000. With an FHA loan limit of $690,000 in San Diego County, more FHA-approved condos means more options for first-time home buyers. Interested in looking at condos in San Diego County? You can start your search right on my website by clicking here or give me a call at (858) 735-5767!

Spring Home Maintenance Checklist

May 20, 2019 by Danielle Negroni Leave a Comment

As a homeowner, your to-do list never really ends. There’s always something that needs to be cleaned, repaired, or updated. Which makes it easy to fall behind when life gets busy or overwhelming. If you can’t remember the last time you dusted your blinds or checked your smoke alarms, spring and early summer is a great time to catch up on any chores or annual maintenance tasks you may have missed over the winter. Not sure where to start? Check out my list of the top ten tasks that should be at the top of your spring-cleaning checklist:

Test and Dust Safety Detectors

Many homeowners take it for granted that their smoke and carbon monoxide detectors are working properly. But you don’t want an emergency to be the time you find out you have a problem! Instead, take some time to replace the batteries, wipe down the metal contacts to remove any accumulated dust, and test each detector to make sure it’s working as expected.

Clean or Replace Your Exhaust Hood Filter

Take a look at the filter on the exhaust hood in your kitchen. These should be cleaned periodically throughout the year. If you haven’t cleaned yours in awhile, you’ll want to take care of this chore ASAP! The purpose of this filter is to collect grease and over time it can become too clogged to do its job properly. Depending on your filter, you may be able to run it through the dishwasher, but you should attempt to clean it with hot water and de-greasing soap first to get the worst of the grime off. If your filter is beyond hope, you can also just replace it.

Dust Your Blinds

When it comes to regular dusting, blinds are often overlooked and ignored. Use a microfiber cloth to thoroughly dust your blinds, taking note of any that need to be replaced. You may also want to use an all-purpose cleaner to spot clean any particularly soiled areas. Just be to sure use a cleaner that’s formulated for the material of your blinds.

Stop Squeaky Doors and Cabinets

Have you been living with a squeaky door or cabinet? Now is the time to take care of it! Simply pick up a can of WD40 or other lubricant at your local hardware store. If the hinges have become rusted, you’ll want to use steel wool to get the rust off first.

Service Your Air Conditioning Unit

Spring is the time to get your air conditioning unit checked before summer comes. The last thing you want to do is put this off until you really need it! If you need a referral for a local specialist to come and check your AC unit, give me a call – I’ll be happy to provide you with a referral.

Clean Your Ceiling Fans

It’s easy to forget to dust your ceiling fan when you’re not using it. But dust and lint can quickly build up on the fan blades. Before you turn your fans on for summer, make you give them a thorough cleaning. Use a pillowcase or micro fiber cloth to remove the dust from the blades and don’t forget to wipe down the rest of the appliance – pull chain, motor housing, light bulbs, and any glass fixtures.

Prepare for Outdoor Entertaining

With warmer weather on the way, now is the time to tackle your outdoor entertaining spaces. Whether you have a large deck or a small patio start by sweeping up any debris before power washing the space. Be on the lookout for rodent or insect damage as you go. Once done, you may consider resealing or repainting your outdoor surfaces to protect them from the elements. And if your patio furniture has seen better days, replace it with something new – your guests will thank you!

Re-Energize Your Garden

If your garden is looking a bit worse for wear, it’s not too late to bring it back to life! Start by pulling weeds, removing dead plants, and clearing away any rocks or debris that have blown in over the winter. Once you have a clean surface to work with, spread new soil and plant seeds or flowers. With care and attention, your garden will soon be thriving again!

Inspect Your Roof

With all the rain and storms we had this winter in San Diego, it’s a good idea to check your roof for damage. Look for missing shingles, holes, or signs of termites. If something doesn’t look right, call a professional. Roof damage should be taken care as soon as possible to avoid further damage to the rest of your home.

Gutters

While you’re checking out your roof, make sure to take a look at your gutters, too. Clear any debris and check for signs of damage over the winter. You should also check around your gutters for water stains and other signs that your roof may have leaked.

If you need any referrals for local professionals or inspectors in the San Diego County area, I would be glad to provide them for you. Just give me a call! It’s important to stay on top of any needed repairs to preserve the value of your home.

And if, after you get done cleaning, you decide that now is the time to sell, I’d be happy to share how I’ve been able to get great results for my sellers in the San Diego area and how I can help you too.

Why Now is a Great Time to Buy a Home in San Diego

April 22, 2019 by Danielle Negroni Leave a Comment

If you’ve been waiting for a sign that now is a great time to buy a home in San Diego, this is it! We are currently experiencing the Real Estate Trifecta of perfect home-buying conditions: increasing inventory, homes spending more days on the market, and low interest rates. But how does this Real Estate Trifecta really affect you as a prospective home buyer?

Increasing Inventory

If you’re in the market to buy a home, increasing inventory is a very good thing especially if you’re looking to buy in one of San Diego’s most desirable neighborhoods. Unlike years past where too many buyers competed for too few homes, buyers today have a lot more properties to pick from. While some homes still receive multiple offers, overall there is less competition. This is particularly true over the past few weeks with the recent surge of listings.

Longer Days on Market

Across the county, homes are taking 6% longer to sell than they were a year ago. While that increase might not seem like much, homes now spend an average of 35 days on the market – too long for some sellers. In an effort to get their home into escrow, many sellers resort to lowering their asking price. This is good news for you! Not only will you potentially pay less for your home, the sellers may be willing to further negotiate with you to get the property under contract.

Low Interest Rates

While the Federal Reserve initially planned to raise interest rates over the course of this year, at its March meeting the Fed announced that short-term interest rates will instead remain unchanged for the remainder of 2019. Again, this is good news for you! As of writing, the average 30-year fixed rate is hovering just above 4.0% – still historically low. And the lower the interest rate, the more home you can afford to buy.

While I can safely say that the Real Estate Trifecta will make this spring and summer an amazing time to buy, it’s anybody’s guess what the future will hold beyond this time. So don’t wait – call me at (858) 735-5767 to get started today!

New Communities in North County San Diego

March 12, 2019 by Danielle Negroni Leave a Comment

Whether you’re a San Diego native or you’ve only been in San Diego a few years, it’s easy to see that we’re a growing city. There are lots of new home developments popping up even in older, more established parts of the county. If you’re in the market for a new home in North County San Diego, check out the list below to see some of my favorite new home developments from Carlsbad to Carmel Valley! If you’d like to go see any homes, just give me a call at (858) 735-5767! Remember, it’s always a good idea to have your own agent even if you’re buying new construction – it’s my job to advocate for you and make sure you’re getting the best deal possible.

Carlsbad: Cypress at the Preserve

Price: $817,990- $857,990
2,286- 2,521 Square Ft.
3-4 Bedrooms
2-3 Bathrooms
2-Car Garages

Cypress at the Preserve is a community of two-story or three-story single family detached homes. Offering up to 2,521 square feet of living space, choose from several different three or four bedroom floor plans. While most homes come with generous backyards for outdoor entertaining, the three-story homes will also feature a generous rooftop terrace on the third level. Many home sites offer fantastic views across the Buena Vista Valley and Buena Vista Creek Ecological Reserve. As for amenities, residents of Cypress will also enjoy the nearby recreation facility with fitness equipment, beach-entry pool, playground, BBQ area, and an outdoor fireplace.

Carlsbad: Acacia at The Preserve

Price: $662,990- $741,990
1,934- 2,011 Square Ft.
Up to 4 Bedrooms
2.5 Bathrooms
2 Car Garage

Acacia is an offering of forty-eight paired homes ranging in size from 1,934 – 2,011 square feet. Choose from Coastal Tuscan, Santa Barbara, or California Craftsman exterior styles. Residents of Acacia will have access to the community’s abundant amenities, which include a fitness center, community pool, and spa. With over half of The Preserve’s 156 acres dedicated to open space, residents will also have plenty of nearby trails to use and explore.

Carlsbad: Seascape

Price: $1,499,950
1,628- 3,140 Square Ft.
3-5 Bedrooms
4 Bathrooms
2-Car Garages

Seascape is a community of luxury single-family detached homes in beautiful Carlsbad! With three to five bedroom floor plans available for both single- and two-story designs, this is a great community for residents of all ages. Some home sites also offer a detached casita for multi-generational living. Seascape is centrally located within Carlsbad and is close to nearby playgrounds, shopping, dining, and the beach!

Carmel Valley: Palomar at Pacific Highlands Ranch

Price: $1,934,995- $2,244,995
4,542- 6,104 Square Ft.
4-5 Bedrooms
4-5 Bathrooms
3 or 4-Car Garages

Palomar at Pacific Highlands Ranch is one new home community you to have to see to believe! The homes are breathtaking and the average lot size is 10,000 square feet! One of the newest luxury communities in Carmel Valley, these single-family view homes by Toll Brothers range in size from 4,500-6,000 square feet and feature top-of-the-line features. Palomar is a gated community nestled inside a great school district and is convenient to shopping, dining, and beaches.

Del Sur: Avanté

Price: $698,900- $773,000
1,544- 1,787 Square Ft.
2-3 Bedrooms
2-3 Bathrooms
2-Car Garages

Avanté is a 55+ community located in the very heart of Del Sur. This brand-new gated community offers both one and two story floor plans with the option to add great features for aging in place like in-home elevators. This luxurious community is a great choice for active adults who want to spend less time on home maintenance and more time enjoying life in San Diego!

Encinitas: Alcove

Price: $1,195,000- $1,275,000
2,330- 2,940 Square Ft.
3-4 Bedrooms
2-4 Bathrooms
2-Car Garages

Built by Shea Homes, Alcove is the newest addition to the Encinitas Community. Comprising just thirteen homes, Alcove offers single and two-story plans with your choice of sophisticated architectural styles. Close to all the best of Encinitas living, these homes will surely go quick!

Encinitas: Enclave

Price: $1,714,900- $2,092,900
4,410- 5,068 Square Ft.
5-6 Bedrooms
4-5 Bathrooms
2 and 3-Car Garages

A gorgeous community of luxury homes in Encinitas, Encinitas Enclave is nearly sold out! Located just miles to the ocean, these homes represent the best in beach living. With floor plans offering buyers up to 5,101 square feet of living space, this is one community you’ll want to put on your must-see list!

If you’re in the market for a new home, spring is a great time to be looking in San Diego whether you want to buy new construction or an existing home. If you have any questions or would like to know more about any properties you see here, please give me a call. I would be happy to help you find your new dream home!

Should You Buy a House in 2019?

February 3, 2019 by Danielle Negroni Leave a Comment

If there is one thing that is certain about real estate, it is that it is ever-changing. With the New Year, we are already seeing some shifts in the housing market. If you’ve been thinking of buying a home in San Diego, 2019 is the year to take the next step – it’s definitely a great time to buy! Here’s why:

We’re Heading Towards a Buyer’s Market

Since August, experts have predicted that after years of a seller’s market, we are beginning to shift in favor of prospective homebuyers. Many areas around the country have merely hit a tipping point where buyers are either unable to or unwilling to pay the prices sellers are asking. Which has resulted in homes staying on the market longer and some sellers slashing their asking price to get their property into escrow. Though home prices in San Diego County are still up 6.2% from last year, home price growth is predicted to slow over the next year as buyers gain more bargaining power.

There’s More Available Inventory

After years of low inventory conditions, buyers are starting to get some relief finally. Homes are spending more time on the market (the average for San Diego County is 34 days) and many sellers, perhaps sensing the change in the market, are in a hurry to put their home up for sale. Both these things work to your advantage as a home buyer. While inventory hasn’t yet increased dramatically, in the months to come buyers should have a bit more to choose from across all price points including at the low end. With home prices higher than they have been in recent years, many prospective investors are looking outside San Diego to make their purchases – which is good news if you’re a first-time homebuyer.

Interest Rates Are Still Low

Despite planned rate hikes by the Federal Reserve this year, interest rates are still comparatively low. You can check out today’s rate on Bankrate.com here, but as of writing, the average interest rate for a 30-year fixed loan was only 4.5%. With more planned rate hikes on the way, these low-interest rates won’t last forever. As interest rates rise, they affect how much home you can afford. For more on how interest rates change affordability, click here. In a market like San Diego’s, buyers need all the help they can get!

San Diego County Has Higher Loan Limits for 2019

If you’re planning to take out a mortgage to buy a home, you should know that FHA and conforming loan limits have been raised for San Diego County in 2019. The new loan limit for 2019 is $690,000 for a single-family home, townhome, or condo. Again, this is excellent news for homebuyers as it raises the upper limit for a “standard” loan. If you need to take out a loan for more than $690,000, you would be looking at what’s called a jumbo loan which will have its own qualifications as these loans are viewed as a bit riskier for the bank. By raising the FHA and conforming loan limits, more buyers will be able to buy without having to also qualify for a jumbo loan.

If you have any questions about buying a home or selling your current one, please don’t hesitate to call! This is the year to buy the San Diego home of your dreams!

(All San Diego County housing stats were sourced from CRMLS Infosparks data on February 2nd, 2019)

4 Reasons to Buy a Home During the Holidays

December 5, 2018 by Danielle Negroni Leave a Comment

Between holiday shopping, preparing your guests, and trying to juggle all the events you’ve been invited to, it’s natural to want to put buying a home on the back burner until January. But there are a few significant advantages to purchasing a home this time of year, and if you’re serious about buying a home in San Diego, it may be worth the time and energy to fit in a few showings and open houses! Read on for four reasons why you should consider buying a home during the holiday season:

1) Less Competition

November, December, and January are usually less competitive months for buyers. With fewer buyers looking, you are less likely to compete in a bidding war. During the holidays, the home buying experience tends to feel a little more relaxed and will give you needed time to make a decision.

2) Serious Sellers

If a seller has their home on the market during the holidays, they are usually very serious about selling. This could be because they’ve already purchased another home and need to sell ASAP, so they don’t have the financial burden of two mortgages. Other reasons may be a seller is facing a major life change like a job transfer, divorce, or new baby. Whatever the reason, sellers are often more willing to negotiate because fewer buyers are looking during the holidays. Even if the price tag is still high, some sellers may be willing to compromise on other aspects of the sale like repairs or closing costs.

3) 2019 is Around the Corner

With less than a month left in 2018, everyone involved in your home purchase will be looking to help you close before the end of the year. With fewer transactions on the table, it may actually be doable! This is where you’ll want to lean on your agent to help assemble a great team who is willing and able to work quickly to get you moved in as soon as possible. Many lenders can close a loan in 15 days so long as everyone else involved is willing to speed things along.

4) After Christmas Sales

This is more a perk than anything, but it’s still worth noting that many types of furniture, appliance, and home décor companies will have impressive sales after the holidays! Of course, you need to wait until AFTER you close escrow to make big purchases, so you don’t jeopardize your loan approval. But knowing you’ll be able to save money on all the things you need for your home is a great incentive to keep house hunting.

If you come across a home that meets your requirements and is within your budget, don’t let the holidays stop you from purchasing- especially when there is still such limited inventory in San Diego. Many homebuyers let a potential home go merely due to the time of year, but if you’re serious about buying, and it’s the right fit, you should make an offer.

No matter your timing, I am here to help! Contact me today if you’re looking to make a move in the coming months.

3 Common Inspections You’ll Have When You Purchase a Home in San Diego

August 20, 2018 by Danielle Negroni Leave a Comment

Once your offer has been accepted and you’re in escrow to buy a home, you’ll have a certain amount of time to inspect the property and remove contingencies. Your agent will guide you through what inspections are necessary depending on your unique situation. There are some inspections that are common to almost all home purchases in San Diego and should be completed for peace of mind.

Home Inspection

A home inspector will review the structure of the home and all of its associated systems. The home inspector is often the first person to inspect the home during the escrow process, as they often identify potential problems in the property that will require a follow-up inspection by a specialist. For example, a home inspector may feel that there’s an issue with the plumbing and recommend you call a plumber to see what the problem is, how to fix it, and what it will cost.

The home inspector will give you an inspection report for your review and records. Following the inspection, you have the option to negotiate with the seller the completion of any of the repairs, a credit for the work, or in the alternative pay for the repairs yourself. If none of these options are acceptable, you can elect to cancel the escrow.

If you are securing a loan, on the property, there are some issues a lender will require to be addressed and fixed prior to closing. It’s important to have strong representation at this time of the transaction because many repairs are costly and you don’t want them overlooked.

Termite Inspection

All homes in San Diego should have a termite inspection, unless waived on the purchase contract. If you are getting a loan, most lenders will require a termite clearance (meaning any problems on the property have been addressed and treated) prior to closing escrow.

The seller typically pays for the cost of the termite inspection. The buyer will receive a copy of the termite report, which will be divided into Section 1 and Section 2 items. Section 1 items will need to be addressed in order for the home to close escrow and the seller usually pays for these Section 1 items. Section 2 items are usually covered by the buyer as they are not a requirement for the home to close escrow, but may be something the buyer wants to address in the future. The main difference between Section 1 and Section 2 items is that Section 1 usually refers to remedying active termite infestation or repairing dry rot or damage from termites. Section 2 items usually refer to conditions present in the home that could lead to a future infestation of termites, damage, or dry rot.

Septic/Well Inspection

Some homes in San Diego County have a septic system and/or a well on the property. If the home you are buying has either or both of these, you will want to get them inspected.

When the septic system is inspected, any known issues will need to be remedied by the seller in order to receive a septic system certificate that it is in good working order.

If there is a well on the property, a well inspection company will need to come out and review how the system is functioning. They will also test the water for coliform bacteria and certain metals and minerals that could be harmful to the health of your family or your home. You will receive a copy of all test results.

There are many other inspections available for a home (roof, pool, foundation, mold, sewer lines, roof, windows, etc) but these are three of the most common ones to consider. Every property is unique so it’s important that you work with an agent who has the knowledge and experience to guide you through the escrow process.

Thinking of buying a home in San Diego County? I would be happy to put my expertise to work for you – call (858) 735-5767 today!