Buying real estate continues to be cheaper than renting in San Diego as well as the vast majority of major U.S. cities, according to a quarterly rent vs. buy index from real estate search and marketing site Trulia.

According to the index, the cost of buying was less than renting in 37 of the 50 cities (74 percent) as of July 1, 2011. About the same share, 78 percent, favored buying over renting in Trulia's last index report.

Trulia defines total costs of homeownership to include "mortgage principal and interest, property taxes, hazard insurance, closing costs at time of purchase and ongoing (homeowners association) dues and private mortgage insurance, where applicable. It also includes an offset for the tax advantages of homeownership, including mortgage interest, property tax and closing cost deductions."

"Many aspiring homeowners are on the fence about renting and buying in today's market. Should they take advantage of falling home prices and low borrowing costs, or should they continue to rent until the economy stabilizes?" said Ken Shuman, spokesman for Trulia, in a statement.

Take a look at Trulia's Rent vs. Buy Index to see how buying San Diego real estate is cheaper than renting.

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After years of trepidation, home buyers are finally beginning to wade back into the housing market. But as they do, many are making the surprising choice to hunt alone, rejecting the assistance of what's known in real estate as a buyer's agent – which many experts say is a mistake.

For years, house-hunters have had the option to work with a real estate agent who shows them properties and may ultimately negotiate the price – a counterbalance to the agent who almost invariably represents the seller. But now fewer buyers are taking it. Of the buyers who purchased a property through a real estate agent, just 57% had buyer representation, according to a 2010 report by the National Association of Realtors. That's down from 62% in 2009 and 64% in 2006, before the housing bust. Also, fewer buyers are first learning about the home they purchase from real estate agents: just 37% are reporting real estate agents as their first source of information on the home they purchased, down from 50% a decade ago, according to NAR.

Many experts think this is a bad move – worse, for example, than trying to sell a house without an agent. For one thing, in most cases, a buyer doesn't pay an agent; the buyer's agent splits the commission with the seller's agent, so the services are essentially free to the buyer. Also, a buyer's agent can access historical sales price data for home sales in the area (not found on the consumer based websites), which means he/she can recommend a bidding strategy that targets comparable properties that sold for less money in order to get a better deal for the buyer. John Vogel, adjunct professor of real estate at the Tuck School of Business at Dartmouth College, calls going through this process alone "a mistake."

There are lots of reasons buyers may choose to represent themselves. The real estate listings and detailed information that was once only available to real estate agents -- like median sales prices in a neighborhood, the amount of days a home has been on the market, and how many price cuts it has endured – are now online. However, much of the information provided on such consumer based websites is often faulty or misleading in an effort to get prospective buyers to contact the website administrators directly.

On the other hand, some house-hunters may think they are working with a buyer's agent, when in reality, they're actually dealing with a seller's agent. Many buyers contact the agent listed with the property or walk into an open house thinking the agent is working in their favor. However, in these cases the agents are contractually obligated to represent the seller’s best interests only.

There are several more reasons why buyers may be at a further advantage when they work with a buyer's agent – at least compared to relying on a seller's agent for advice or guidance. Remember, a seller's agent is contractually obligated to help make the sale happen in the seller's favor, often as close to the asking price as possible. And buyers' agents are contractually obligated to only represent the best interests of the buyer. Buyers agents can also suggest home inspectors, lenders, plumbers, etc. that they've worked with before.

When searching for a buyer's agent, experts recommend looking for a full-time experienced broker. Such an agent will be further involved in the market by previewing new listings on the weekly caravan, they might drive around a neighborhood looking for signs of properties that are for sale by owners or mail letters to existing homeowners alerting them to a buyer who's interested in a similar property to theirs. And by the time a buyer enters into a contract, that buyer’s agent will be there to look for red flags in order to prevent challenges from arising through the escrow process and beyond.

Overall the experts agree that it’s vital for home buyers to obtain the services of an experienced buyer’s agent to help them navigate through the home buying process. On average, the buyer will get a better deal and they will avoid many of the pitfalls that going it alone can result in.

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In today’s market place short sale listings are prevalent. The process of purchasing a short sale property is very unique and the key factor is for you to have patience throughout the process. It is absolutely crucial that you have an experienced real estate team such as us guiding you throughout the entire process.

The good part is that buying a short sale these days is a lot smoother as compared to recent years. In general the banks are cooperating and making decisions faster. Our team has assisted many home owners with purchases of short sale properties and we know what it takes to negotiate the best deal for you.

Short sale properties are generally listed at a price that is below the fair market value. Typically only one offer is accepted by the seller of the property and the listing agent then must submit the offer directly to the bank in order to obtain the short sale lender’s approval.

Once we submit an offer to purchase a short sale property to the listing agent, it can take anywhere from 30-90+ days for the short sale lender to respond to the offer. After this point, it is common for negotiations with the bank(s) to take anywhere from another 14-30 days. If there are two lien holders on the property such negotiations are more complicated and may take additional time.

We have helped many of our clients get fabulous deals by purchasing short sale properties.

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Are you ready to schedule your home buying initial consultation?  If so, contact us today and together we will review your needs and your budget to help you find the home for you!

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The professionals at Coastal Premier Properties will guide you through the home buying  process one step at a time. Our goal is to expertly assist you with obtaining the ideal property under the best terms and conditions. We will represent your best interests while providing the highest level of service and value. Here is a quick guide to home buying process:

STEP ONE

INITIAL CONSULTATION

• General overview of what to expect
• Define Agency Relationship
• Review sample Purchase Agreement
• Discuss financial requirements and qualifications
• Determine needs and wants

LOAN PRE-APPROVAL

• Explore financing options with qualified lender and work on improving your credit score
• Submit financial documentation to lender (3 months bank statements, 2 years tax returns, pay stubs, etc.)
• Obtain loan pre-approval letter from lender to submit with offer

HOUSE HUNTING

• Visit www.CoastalSanDiegoLiving.com to view MLS listings, foreclosure listings, and short sales
• Understand current market values
• Select properties of interest
• Tour selected properties
• Locate ideal property

STEP TWO

OFFER PREPARATION

• Strategize for optimal offer considering purchase price, deposit, down payment, timeframes, and contingencies
• Balance sellers situation with buyers intentions
• Foreclosure vs. short sale vs. standard sale
• Prepare good faith deposit

OFFER NEGOTIATIONS

• Goal is acceptance of offer in order to open escrow
• Counter offers very common
• Rejection of offer is a possibility

OPEN ESCROW

• Contract timeframes begin upon acceptance of Purchase Agreement by all parties
• Open escrow by submitting executed agreement and deposit to escrow
• Provide lender with updated financials
• Contract timeframes begin

STEP THREE

BUYER DUE DILIGENCE

• Schedule inspection(s) to determine property condition is satisfactory
• Review disclosures and reports
• Discuss if repairs will be requested
• Determine insurability

FULL LOAN APPROVAL

• Appraisal completed by lender
• Lender collects updated financials
• Finalize loan options
• Obtain full loan approval from lender

REMOVE CONTINGENCIES

• Complete paperwork to remove contingencies such as property condition, disclosures, insurability, and loan
• Select insurance coverage
• Arrange for transfer of utilities and other services

STEP FOUR

FINAL WALK-THROUGH

• Confirm property is in same condition as when offer was accepted
• If repairs were agreed upon, verify they were completed adequately

SIGN LOAN DOCUMENTS AND SUBMIT DOWN PAYMENT

• Sign loan documents, if applicable
• Deposit remainder of funds into escrow via deposit check, money order, or wire transfer
• Final exchange of paperwork between service providers; Lender, Title, and Escrow
• Final closing statement provided by escrow

CLOSE OF ESCROW

• Deed is recorded by the title company with the County Recorder’s office
• Get the keys to YOUR new home!

~COASTAL SAN DIEGO PROPERTIES~