Insiders Guide: 40 Things to Watch Out for Before Buying your Next Home

INSIDER’S GUIDE: 40 THINGS TO WATCH OUT FOR BEFORE BUYING YOUR NEXT HOME

A PERSONAL PERSPECTIVE FROM AN EXPERIENCED LUXURY REAL ESTATE AGENT THIS GUIDE WILL EMPOWER YOU WITH THE KNOWLEDGE AND CONFIDENCE THAT YOU NEED TO MAKE A WISE INVESTMENT IN LUXURY REAL ESTATE

My name is Raquel Benguiat, and I am a luxury Realtor and long-term resident of Rancho Santa Fe, California. For the past 15+ years, I’ve had the privilege of guiding clients to their dream homes. This has allowed me to learn from their experiences – and my experiences – when things don’t go as planned.

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CONTENTS

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INTRODUCTION

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LOCATION

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20 THINGS TO CONSIDER

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LEGAL, HOA, AND TAXES

22 LOOK INTO THE FUTURE 25 CONCLUSION

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LOCATION AND NEIGHBORHOOD 8 TIPS THAT MAY SEEM OBVIOUS BUT IGNORING THEM CAN LEAD TO DISAPPOINTMENT

1. RESEARCH FUTURE CONSTRUCTION PROJECTS Stay informed about upcoming projects that could affect your views, property value, or neighborhood traffic. This includes new construction, road expansions, or even changes in zoning laws.

2. TEST YOUR COMMUTE AT DIFFERENT TIMES OF DAY Test the drive to work, schools, or major highways at different times of day, including rush hour, to get an accurate sense of commute times. Pay attention to traffic patterns and potential delays, such as four-way stops, and check if school dismissals might affect your route.

3. CHECK YOUR WIFI AND CELL PHONE SIGNAL Luxury homes in rural areas may not have access to the same level of cell phone and Wi-Fi service as those in larger cities. It is important to confirm reliable mobile connectivity in and around the property, and make sure to check the internet speed and availability before you buy, especially if remote work, online streaming, or digital homework is a daily routine for your family.

4. MAP OUT THE PROXIMITY TO POPULAR AMENITIES Luxury should come with convenience. Ensure that access to shopping, dining, and other amenities is within a comfortable distance for you.

Consider factors such as the distance to grocery stores, restaurants, parks, gyms, and other places you frequent.

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“Nothing pleases me more than to see my clients complete their transactions feeling gratified, rewarded, and confident that they’ve made the best, most informed decisions.”

-Raquel

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5. NEIGHBORHOOD SECURITY The reputation of a neighborhood can significantly impact your living experience, as well as the appreciation of your property over time. Consider factors such as the crime rate and additional security measures, such as gated communities, security patrols, and surveillance systems.

6. SCHOOL DISTRICTS MATTER – EVEN IF YOU DON’T HAVE CHILDREN The quality of local schools can greatly enhance property values, regardless of whether you have children or not.

When evaluating nearby schools consider factors such as school ratings, test scores, teacher-student ratios, and other measures of success.

7. FIND OUT EXACTLY WHAT IS INCLUDED IN YOUR HOA FEES Luxury homes often come with an HOA (Homeowners Association) fee. It is essential to consider the value proposition and understand what you are getting in return for your monthly payments. Take the time to explore and familiarize yourself with what is included, as well as what is not. This will help you avoid any surprises and ensure that you are getting the value you expect from your investment.

8. CHECK IF YOUR HOME IS LOCATED WITHIN A HISTORICAL DISTRICT Homes in historical districts may have restrictions on exterior changes. Some review boards are strict and may require you to use materials that are historically accurate, which can be costly. However, living in a historic district can provide tax benefits and higher resale values.

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CHECK THESE 20 THINGS BEFORE MAKING YOUR FINAL DECISION 1. UTILITY BILLS Review past utility bills to get an idea of the average monthly costs for electricity, water, gas, and other utilities. This will help you budget for your future expenses.

2. ROAD NOISE Assess the level of road noise in the area. Ask your agent to turn off any fountains or water features that may be masking the true noise level. Decide how much road noise you are willing to live with before you buy. Homes with a lot of road noise may also take longer to resell.

3. NOISY NEIGHBORS Consider potential sources of noise such as pets, basketball or tennis courts, or even band practices. These unexpected disturbances could put a damper on your new home experience, especially if they come as a surprise.

4. SOLAR OWNERSHIP Determine whether the solar panels on the property are owned by the seller or by the solar company. This will affect your monthly energy bills and your property taxes.

5. INSURANCE Some luxury properties may present unique insurance challenges and may cost more to insure than you expect. It is advisable to compare home insurance quotes during your due diligence period before finalizing the purchase.

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RANCHO SANTA FE

6. SUPPLEMENTAL TAX BILL After buying a new home, you may be subject to a supplemental tax bill due to a change in the property’s assessed value. The local tax assessor calculates this supplemental tax based on the difference between the previous owners assessed value and new assessed values of the property (usually based on the sale price). The bill is typically due in the same month that the change in value occurred. Home buyers should be aware of the possibility of a supplemental tax bill and factor it into their budget when purchasing a new home.

7. PROPERTY INSPECTION A comprehensive property inspection is essential to identify any potential issues with the home. This is not an area to cut corners on. Make sure you hire a qualified inspector who will thoroughly inspect the home. They may recommend additional inspections including the roof, foundation, and any potential areas of concern, such as termite infestation, mold, or water damage.

8. ADDITIONS AND PERMITS If you are planning to make changes to your future property, it is essential to understand your local permitting requirements. The local city or county has records of all issued permits for the property. Before starting any renovations or extensions, make sure you have all the necessary permits, especially in older homes with past modifications. If you do start a remodeling project, be prepared for the possibility that some additions may require upgrades to meet current standards before they are approved. In the worst-case scenario, you may discover that additions were not approved, and you may need to obtain a permit for the additions or make modifications to the additions in order to bring them up to current code.

9. PROPERTY CONDITION Some properties may require only minor cosmetic repairs, such as fresh paint. Others may require major renovations, such as the replacement of the roof or the HVAC system. It is important to consider your budget and time commitment when deciding if a home is right for you.

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10. ENERGY EFFICIENCY Utility bills can impact your monthly budget. Consider the property’s energy performance and potential improvements, such as updating old appliances, improving insulation, and replacing incandescent light bulbs. Are the appliances, windows, doors, and other features energy-efficient?

11. SPACE Consider your current and future needs when evaluating the number of bedrooms, bathrooms, offices, and other spaces you require. Do you want a large kitchen or a specific number of bedrooms for a growing family? Does the property have enough space for your needs now, or does it have the potential to be expanded in the future?

12. WINDOWS Dual-paned windows provide superior insulation for energy efficiency and soundproofing than single-paned windows. They can help you save money on your energy bills. If your home does not have dual-paned windows, you may want to consider replacing them.

13. NATURAL LIGHT Check out the home’s exposure to sunlight at various times throughout the day and consider its potential impact on your lifestyle. While some homes might become uncomfortably warm due to excessive sunlight, others may reap the benefits of natural light all day long, leading to reduced electricity costs.

14. NEIGHBORHOOD NOISE Consider potential noise sources in the area, such as ongoing construction projects, busy roads, or nearby airports. Drive around the neighborhood at different times of day to assess the noise levels. Be aware that construction noise can sometimes last longer than expected, so research neighboring projects and factor this into your decision.

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15. EQUESTRIAN LOTS Check zoning laws and rules for having horses on your property, including the maximum number of horses allowed for your lot size. Even if you don’t plan to have horses, you may be affected if a neighbor does. Well-maintained stables should not be a problem, but poorly managed stables may cause noise, odor, flies, and increased traffic. If you’re concerned, talk to the neighbors or stable owners to learn more.

16. HOME WARRANTY Even after careful inspections, you may not discover all a home’s hidden problems until you’ve lived in it for a while. That’s where a home warranty comes in handy! It acts as a safety net for issues that might arise post-purchase, covering repairs and replacements for things like plumbing, HVAC systems, and appliances. Whether negotiated with the seller or purchased independently, a home warranty can provide peace of mind against unexpected breakdowns.

17. SHORT-TERM RENTAL REGULATIONS If planning to rent out your home, make sure it aligns with local or your HOA guidelines, including the minimum length for rentals.

18. UNDERSTANDING EASEMENTS Every property comes with its unique set of easements, or rights others may have to use portions of your land for utilities or access. The home’s title report provides an overview of these easements. It’s crucial to review this with your title representative to understand any potential restrictions. If you don’t understand something, ask your real estate agent or the title company for help. Knowing about easements is essential, especially since they could affect future development or modifications on the property.

19. POOL/SPA MAINTENANCE HISTORY When buying a home with a pool or spa, it is important to evaluate its condition and maintenance history to determine how soon you may need to resurface the pool or change the equipment, which can be costly. Beware of pool slides or diving boards, as they can impact whether an insurance provider is willing to give you coverage. Consider this when shopping for homeowners insurance and find out before you close if this will be an issue.

20. REALISTIC EXPECTATIONS Every home, whether old or brand new, has its quirks and imperfections. While it’s essential to do your due diligence with thorough inspections, it’s equally important to be prepared for some wear and tear, especially in previously occupied homes. This wear and tear is why inspections are essential: to reduce surprises and provide leverage for price negotiations to account for post-closing costs. Remember, the goal isn’t to find a flawless home, but to be well-informed about the one you’re investing in.

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CONSIDER THESE 8 LEGAL AND ASSOCIATION RULES ON LAWS, TAXES, & MORE 1. HOA RULES Homeowners associations enforce rules and regulations that all residents are expected to adhere to. These rules can encompass a variety of subjects, such as: • Home appearance: Including architectural design, exterior paint color, building materials, fences, and landscaping.

• Common area usage • Noise levels • Pet ownership • Vehicle parking • Additions and outdoor structures

2. HOA DISPUTES Homeowners Associations (HOA’s) play a crucial role in managing common areas and enforcing community rules.

However, dealing with HOA’s can sometimes prove challenging, leading to disputes between homeowners and the association.

It is important to research any past or ongoing disputes involving the HOA before you buy a home in that community.

3. MELLO-ROOS TAXES These are special taxes that are imposed on properties in California to fund public improvements, such as schools, parks, and roads. These taxes are typically assessed on a per-parcel basis and can be quite high. Find out if your property is subject to Mello-Roos taxes before you buy.

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4. AIR RIGHTS These are the rights to use the airspace above your property. This can be important if you plan to expand your home, add a floor, build a new structure, or install solar panels.

Air rights laws vary by state. In some states, you automatically have the right to use the airspace above your property up to a certain height. In others, you may need permission from the government or your neighbor.

5. MINERAL RIGHTS Mineral rights are the rights to own and extract minerals from a piece of land, such as oil, gas, coal, and other valuable resources. Mineral rights can be separate from surface rights, meaning that it is possible to own the surface of a piece of land but not the minerals beneath it. Mineral rights laws vary by state, so don’t get your hopes up if you strike oil— it may not belong to you. It is important to check with the county assessor to determine who owns the mineral rights to the property.

6. VIEW PROTECTION LAW This law gives people the right to preserve their view from their property. Some places have specific view ordinances, while others do not. A view ordinance is a regulation enacted by a local government to protect the views of property owners from obstructions caused by neighboring properties, such as trees and structures.

7. SHORT-TERM RENTAL REGULATIONS If planning to rent out your home, ensure it aligns with local or your HOA guidelines, including the minimum length for rentals.

8. DEATH DISCLOSURE LAW For personal or resale considerations, you may want to ask about any incidents of death on the property. In California, sellers must disclose any deaths that have occurred on the property within the past three years. This is known as the California Death Disclosure Law. The law was passed to protect buyers from emotional distress if they are not aware of deaths that have occurred on the property they are purchasing.

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“WHEN BUYING A HOME, IT IS IMPORTANT TO CONSIDER THE FUTURE. THIS INCLUDES THINKING ABOUT YOUR LONGTERM NEEDS AND GOALS, AS WELL AS THE POTENTIAL OF THE PROPERTY TO APPRECIATE IN VALUE.”

-RAQUEL

FUTURE REAL ESTATE CONSIDERATIONS LOCAL REAL ESTATE MARKET Stay updated on market trends to guide future decisions. This includes factors such as the current price of homes in the area, the rate of appreciation, and the availability of inventory. By understanding the local real estate market, you can make more informed decisions about when to buy and sell a home.

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RESALE VALUE When deciding on a purchase price for a home, consider potential property appreciation. This means considering factors such as the location, size, condition, and amenities of the home, as well as the overall market trend. A home in a desirable location with good schools and other amenities is more likely to appreciate in value over time.

THINK AHEAD

FUTURE OUTLOOK

Space for future renovations or

Evaluate the potential property appreciation

expansions is a plus, especially if you

to ensure a sound investment. This means

plan to stay in the home for a long

considering factors such as the economic

time.

outlook for the area and the demand for

Consider a property with the

housing. A home that is located in a growing

potential to be expanded or

area with a strong economy is more likely to

renovated, which could add value to

appreciate in value over time.

the home and make it more suitable for your future needs.

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Looking to Purchase or Sell a luxury home in san diego?

DISCOVER THE POSSIBILITIES WITH AN INDUSTRY EXPERT WHO SPECIALIZES IN LUXURY HOMES.

Work with local expert, Raquel Benguiat, for a personalized experience, exceptional service, and the most comprehensive expertise in Ranch and Coastal Real Estate in San Diego.

It begins with a conversation—Let’s connect.

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150 El camino drive, beverly hills, ca 90212. 310.595.3888 © 2021 Douglas elliman real estate. All material presented herein is intended for information purposes only. While, this information is believed to be correct, it is represented subject to errors, omissions, changes or withdrawal without notice. All property information, including, but not limited to square footage, room count, number of bedrooms and the school district in property listings should be verified by your own attorney, architect or zoning expert. Equal housing oppor tunity. If your proper ty is currently listed with another real estate broker, please disregard this offer. It is not our intention to solicit the offerings of other real estate brokers. We cooperate with them fully. Equal housing oppor tunity.

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