Your Guide to Buying a Malibu Home

Buying any home is a complicated process, and if you’re looking to purchase it in beautiful Malibu, you need to have a plan. You don’t want to end up disappointed, so planning is the key starting point for ensuring that you have a relatively stress-free experience.

You’ll need to make lots of decisions before you close this significant sale, and you should have a checklist of sorts, so nothing is missed and left to chance. If you’re buying real estate in Malibu (or any other area, for that matter), here are some things to keep in mind, many of which you may not have previously considered, to help your selection process of your Malibu home move efficiently.

Location

You’ve probably heard it before. The three most important considerations in buying any real estate: “Location, location,location.” You must first decide where you want to live. Is it a remote mountain retreat, beachfront property, or just a nice neighborhood? Before you start looking, you must know where to look.

Researching different areas and listing their pros and cons can help you narrow down your choices.

Type of Malibu Home

You might like the challenge of a fixer-upper or a home that’s move-in ready might better accommodate your already busy life. Make a checklist of the attributes you want in your new house.

Think about children—present and future—to help you determine how many bedrooms you will need. Do you want a swimming pool or is a pool a deal breaker? Do you want a master suite with a walk-incloset? If a modern, well-equipped kitchen is a must, put it on your “must-have” list.

Decide in advance if you’re willing to compromise on certain features. And remember, knowing what you don’t want is also critical and can save a lot of time with house hunting.

Price Range

Homes in Malibu come in a wide variety of prices. But looking at a house that is listed for just under $10 million is a waste of everyone’s time if your budget can’t support it. After you decide where you want to live and what type of house you would like to buy, come up with an ideal price range, so you don’t go falling in love with a dream house you can’t afford.

To determine what you can afford, consider these factors:

• Your income
• Your monthly expenses
• Your credit rating
• A 20% down payment, at a minimum
• Current interest rates

Mortgages

There is a confusing array of loan products from which to choose. There are fixed and variable rate loans with long and shorter terms. And you’ll be facing unfamiliar mortgage jargon like “debt-to-income ratio” and Private Mortgage Insurance.

Now is the time, if you haven’t already done it, to find a realtor who is familiar with the Malibu housing market and also understands mortgages. An experienced agent can cut through the confusion and help you find the right product for your situation.

Once you understand everything about the mortgage process, it’s time to pick a lender and get pre-approved. Why? A pre-approval gives you a firm number and shows the seller that you are a serious buyer.

House Hunting

You’ve made your list of “wants” and “don’t wants,” narrowed down your search to suitable areas, and come up with a price range for homes that fit your budget. Now, you and your Malibu agent can begin to look at houses that fit your criteria.

It may sound like a daunting task, but a good agent will help you find the perfect Malibu home, and he or she will do the negotiating on your behalf. You may not be able to get everything on your list, so you have to be somewhat flexible and willing to compromise on some features.

Once you have found a Malibu home that meets all, or at least most, of your conditions, your agent will do a market analysis of the neighborhood to make certain that the asking price is fair. The study will help you and your agent to make an offer that the seller will consider seriously. Your agent will then negotiate to get you the best deal.

Sales Contract and Home Inspection

Once you have agreed on terms, it’s time to examine and sign the formal purchase and sale agreement. The contract is a legally binding document that sets forth the conditions of the Malibu home purchase and includes:

• The closing date
• What stays with the house—curtains, appliances, etc.
• The agent’s commission
• The amount of the buyer’s deposit
• Details of the purchaser’s mortgage
• Any inspections the buyer wants to have completed
• Cost adjustments to be made at closing, such as points and taxes
• What happens if either party backs out of the deal

Keep in mind that most experienced Malibu agents can review the contract with you to make sure that everything is covered. If you’re not comfortable with that, it’s your prerogative to retain the services of an attorney.

While the seller must disclose any problems with the property, it’s a good idea to hire a professional inspector. Any issue that the inspection uncovers gives you the opportunity to renegotiate the purchase if the problems are unacceptable.

Close the Deal

After all the steps in the process have been completed, it’s time to schedule a closing. However, before that can happen, you’ll need to show proof of a paid homeowner’s insurance policy. Without it, the settlement cannot be completed.

To close on your new Malibu home, you’ll need to sign a stack of loan documents and closing papers. You may end up with writer’s cramp, but you won’t mind. You’re now ready to move into your new home!

Don’t Leave anything to Chance

Buying and selling homes in Malibu, Pacific Palisades, or LA’s west side requires the professional assistance of an experienced and dedicated Real Estate Agent. Brian Merrick meets those qualifications and more! Purchasing a house is a big step. Use a qualified agent when you take it!