Buying Your Second Home in Mammoth Lakes
Buying your second home in Mammoth Lakes. You may be considering purchasing a second home this year. Good choice and you’re not alone! According to Luxury Market Report, buying a second home has increased dramatically since last year.
“While the demand for luxury real estate market is not turning over a new leaf, there is certainly an appreciation that a leaf has been turned when we look at the other ongoing trends; including a greater diversity in location choice, property types, ownership levels and what amenities have become major priorities for affluent homeowners.” ~ Luxury Market Report
The National Association of REALTORS® reported a historic rise or properties sold in the $1 – 5 million range between January to August 2021, by 142% for single-family homes and 129% for attached homes compared to the previous year. ~Luxury Market Report
Why a Second Home?
Some of this may be because a second home is a “safe haven” during the pandemic as well as a great way to continue to work remotely and have flexibility in where “home” is. It’s a fun way to get away from the confines of your primary home.
However, the main reason to purchase a second home here in Mammoth Lakes is to enjoy skiing, snowboarding, and the fun local festivities!
One of the benefits of owning a second home is also building home equity. Home equity has sored over the last year or so, with the average homeowner gaining $56,700 in equity over the last year. ~ Corelogic With home prices continuing to rise, purchasing a second home could benefit from the increase in property values.
If you’re looking for your second home in Mammoth Lakes, let’s get together and discuss your best path to ownership. Give me a call today, and let’s get started!
Should you hire a Buyer’s Agent to purchase a home in Mammoth Lakes?
What IS a buyer’s agent?
In short …. A buyer’s agent is a real estate professional who may also be a member of the REALTOR® Association, who represents ONLY the buyer and not both the seller and buyer.
According to the REALTOR® Association, “A buyer’s agent serves as your representative during the home search and purchase process. The tasks that they perform can include helping you find a home that meets your needs, liaising with building contractors, providing you with an analysis of the prices of similar properties in the area and any property value trends and identifying any problems that might be associated with the property. They can also help you to negotiate the best price for the property as well as furnishing you with information on the seller and the reasons for the sale.”
Using the Listing Agent to purchase your home leaves you vulnerable to the unknown.
Listing sellers represent the sellers, and their fiduciary duty is to the seller. However, if you also use the listing agent, it creates a dual agency – which HAS to be disclosed. This is because the agent represents both sides of the transaction. Both agents’ commissions are paid through the selling side of the transaction.
However, can one agent work for both the seller and buyer? Of course, they can … but it may create a conflict of interest. As a result, one side may still be favored unintentionally.
To ensure a Buyer’s Agent represents you, a “Buyer’s Agreement” is signed by the Buyers and their agent. As a homebuyer, this is to your advantage as it confirms the agent’s duties to you as their client under statutory law or as common-law fiduciary duties.
These duties include:
- Undivided loyalty – the agent must act in your best interests at all times
- Obedience – the agent must follow all of your lawful instructions
- Reasonable care and diligence – the agent is required to protect you from foreseeable risks of harm
- Full disclosure – the agent must disclose all information concerning the property and its purchase that might affect the decisions you make
- Accounting – the agent must safeguard money or property held on your behalf
- The agreement should indicate whether the agent will act for you exclusively, the parties to the agreement, the end date, a description and location of the desired home, the agent’s duties and buyer’s responsibilities.
**Above provided by the National Association of REALTORS®.
Before you start looking at homes and talking with agents, be sure you find a buyer specialist who will only represent you – and sign a buyer’s agreement.
If you sign an Exclusive Buyer agency with one agent, you will only work with that one agent. This is ultimately what you want to do in a real estate transaction; you want to work with an agent exclusively when looking to purchase that perfect property. However, you also want the freedom to choose which agent to work with. If you feel pressured into signing an Exclusive Buyer Agency prematurely, you have every right to step back and evaluate the situation. NO law states you have to sign an exclusive buyer agency agreement before an agent begins working for you.
If your relationship with an agent begins with that agreement being signed, you have every right to turn around and walk the other way. And you should.
What your buyer's agent can do for you when buying a home in Mammoth Lakes
Purchasing your second or vacation home in Mammoth Lakes is a major decision and more complex than you may realize. It’s very important you hire an Agent to represent you in the transaction and help you navigate through your home buying process.
Here’s what I can do for you.
Help arrange financing.
I can help you find the right loan officer as well as help you understand the home buying & financing process. I work closely with your loan officer throughout the process – we become a home-buying team just for you. I also am in your corner when it’s time to negotiate the best deal for you and to make sure your closing goes smoothly.
- Assist in locating sources of mortgage loans.
- Help you examine how much you can afford and how much you may want to spend.
- Assist in comparing different financing options.
- Provide information on purchasing incentives that may be available.
- Educate and discuss the differences between being prequalified and preapproved for a mortgage.
Assist in finding the right property.
- Identify your needs and wants in a property.
- Find appropriate available properties.
- Set up an automated email alert system that immediately notifies you of properties that fit your requirements.
- Provide access to all MLS-listed properties.
- Network with other agents for properties not yet in the MLS.
- Preview properties before showing.
- Help select only those homes that fit your needs.
- Aid in narrowing your search until you have identified your top choices.
- Assist in analyzing the pros and cons of each property.
- Disclose all known material defects.
- Assist you in evaluating properties for suitability, affordability, and resale value.
Educate you on market conditions.
- Educate you on whether it is a buyer’s market or a seller’s market.
- Show statistics on what percentage of the list price sellers in the area are currently receiving.
- Show trends, current average days on market, current absorption rate, and/or current months of inventory.
Guide you through making an offer and represent you and your interests in negotiations.
- Prepare a comparative market analysis (CMA) so that you make an informed decision when offering a price.
- Advise you on what comparable properties are selling for.
- Explain common contract contingencies.
- Obtain appropriate seller disclosures.
- Prioritize your goals.
- Help create a negotiating strategy to achieve those goals.
- Write and present your offer.
- Ensure that you receive and understand all state and federally required disclosure forms.
- Handle the completion of the offer to purchase or sales contract.
- Educate you on the contents of the sales contract.
- Ensure that all appropriate additional forms are completed.
- Assist you in getting the best property at the best price with minor inconvenience based on current market conditions.
- Prepare you for various offer situations and develop negotiation strategies specific to multiple offers.
Get you to closing and serve as your trusted real estate resource.
- Recommend inspectors, lenders, attorneys, and other professionals as necessary.
- Be an advocate and advisor during the closing process.
- Review and discuss home inspection concerns.
- Help you request and negotiate seller repairs.
- Monitor and communicate required contract deadlines to ensure that you meet them.
- Assist in coordinating communications between the seller’s agent, lender, attorneys, title company, appraiser, and other professionals.
- Accompany you on the walkthrough before closing to ensure the property is in the same condition as when you entered into the contract.
- Remain a lifelong trusted advisor regarding real estate questions, needs, or concerns.