Alright, so today we're gonna go over the top five biggest mistakes that you want to avoid when buying a home here in the city of Menifee. We're gonna go over some things that I think are a little bit more nuanced, that a lot of people don't necessarily pay attention to, but I think are super important.

So let's go ahead and get into it.

Hey guys. Hey again, my name is Justin Short. I'm a realtor and team leader with the short real estate team here at Keller Williams in Temecula. And this video is all about the top five biggest mistakes that you want to avoid when buying a home here in the city of Menifee. Uh, so these are things that I think are a little bit more nuanced than a lot of people don't necessarily pay attention to, but I think are super important and I think can really make or break, you know, your home purchase or really make or break how you.

Feel at the end of it too, to decide it was the right decision for you and your family. So hopefully this is good, helpful information for you guys. But before I get into my list, you know, if you are liking real estate videos like this, please do me a favor. Please hit like, please hit subscribe, you know, to the channel.

Obviously it helps me and it helps my channel as we try to continue to grow it. We have new videos that we put out each and every week, and they're all just kinda local real estate content stuff. So about the cities of Temecula, Murrieta, Menifee, and some of the surrounding cities. We have market updates that we do regularly once a month.

We have, you know, best neighborhood recommendations, worst neighborhood recommendations, and honestly, just trying to give you guys some information on, it's like from someone that actually lives here and hopefully it's good information that helps you. And your family with your home search. But, um, the other thing I didn't wanna mention, if you guys have any real estate questions, you can feel free to reach out anytime.

So you're gonna see my information either at the end of the video or down below. You can feel free, you can call, you can text, you can email me. I'm happy to answer any questions you may have, you know, help point you in the right direction. Or of course, you know, if myself and my team, if we can help you out with your home search, you know, love to be a resource for you and love to help you out with that, obviously, you know, it's what we do for a living and how I, how I earn, earn a living.

So I love the opportunity to help and, uh, yeah. Be, be a resource for you. So. Cool. All right, so we're gonna go ahead and get into my list here. And again, we're gonna go over the top five things to avoid when buying a home here in the city of Menifee, California. And we're gonna start with number one. And the number one thing that you want to avoid is ignoring the hidden cost when you are comparing one home to another.

Uh, so what that means in Menifee, if you're not super familiar, most of the homes have been built over the last 15 years or so, and what that means. You know, some of 'em are, are gonna be a little bit older than that, but that's like the majority of the city. Right? And because of that, different areas and, uh, different neighborhoods and different parts of towns are gonna have different tax rates and different special assessments, or sometimes it'll even be referred to as Mello-Roos, then other parts of town.

So what that means is, let's say if you wanna buy a home in Menifee. And let's say you wanna buy a $600,000 home. Okay, great. You might look at two different homes. They're both priced right at 600,000, and one of 'em is in a low tax neighborhood with very low special assessments. And let's, let's say that's like 1.2% and then the other home is in a high tax neighborhood.

With high special assessments, and let's say that is 2.2%. Okay? So it might not sound like a big deal, but that's the, that higher, that second home has a 1% higher tax rate, but even though they're both $600,000, your mortgage payment on each of those, you know, on the more expensive home on that, on that higher tax rate home might be an extra.

$400 or $500 a month because of the extra taxes. So we're talking about extra 1% property tax. Is it on the $600,000 home? That would be like an extra $6,000 a year. So that's $500 bucks a month. Right. And so that's super, super significant. So basically what, what that means is when you are buying a home in Menifee especially, and this applies to a lot of the surrounding cities, but it's really the year a lot of these newer homes were built.

Um, you really wanna make sure you pay attention to the Special assessments, Mello-Roos  and the overall property tax rate, including all of those different special assessments. So, 'cause if you're gonna buy one of those lower tax homes, that's a big benefit. It's something you really wanna know. And if you're gonna buy one of those higher tax homes, that's a big deal and you gotta make sure, one, you can afford it, you gotta make sure that two, your mortgage can get approved at that higher tax rate.

And three, just that you're okay with that and you understand those taxes are gonna be there for the next 20 or 30 years. So that's a big deal, really something you wanna pay attention to. Um, the other item that I would consider to be a hidden cost that a lot of people don't pay attention to are the solar cost.

So we, if you're not super familiar, you know, we're in Southern California, a lot of homes. Do have solar panels here in Menifee Um, not all of them, but I would say probably about, probably about 60% or so of homes currently have solar panels on 'em. Right. There's a lot of sun, a lot of sunshine. So there's, there's, there's a lot of electricity to generate that.

So people put these panels up on their roof. And, um, and when you have solar, you can have it really two different ways. So you can buy solar panels, have them installed on your roof and just have, take out a loan or just have them paid off, and then you're gonna own those solar panels. Okay? And then, so if you are gonna buy a home that has owned solar panels, that's a huge benefit for you as a buyer.

Basically that means if I'm gonna go buy a home. That has paid off solar panels, whatever electricity those panels generate is gonna be free electricity to me, as the new homeowner, that's a huge benefit, right? That might save you a hundred fifty, two hundred, two hundred fifty a month and free electricity that the home's gonna generate for you because of those solar panels.

That's a great thing, right? On the flip side of that, the other, the other thing that people do, which is actually more common, instead of purchasing the panels and paying them off. Or, you know, financing or however they're gonna do it. Instead of doing any of that, they do a solar lease. And it's not necessarily a bad thing, but it is super important to know and you really gotta understand how it works and how it, why it matters, and how it can affect you.

But basically if you go to buy a home that has solar panels on it, and those panels are on a. The more or less it kind of breaks down like this. So when you as a buyer go to buy that home, you are going to have to assume that solar lease contract. Okay? So the pitch that the solar company will tell you is that, hey, instead of paying the electric company, so Cal Edison, you're gonna put these panels up on the roof and then you're just gonna pay us this lease, and that's gonna be basically your, your new bill.

So in essence, as a buyer, you're gonna look at it. I still have an electric bill just instead of paying. TheSoCal Edison, the electric company, I'm gonna pay my electric bill to the solar company. Okay? And the pitch is that, hey, the solar company is gonna charge you less per kilowatt. Right? They're gonna save you 5 cents a kilowatt, 10 cents a kilowatt, what, whatever the pitch is, however much they're gonna save you.

Right? And so in theory, they're gonna give you a lower bill for that solar release. So, which can be a really good thing. Um, and there's, there's a lot of advantages to that. I have solar on my house. I think it's a big benefit. But it has to be in the, in the right scenario. Okay. So, because what happens, and I see this a good amount of time, let's say you guys want to, I live in Man Fe, let's say you wanna buy my home, and let's say I have a solar lease system on it, and let's say.

I have five kids. I don't have five kids, but let's say I have five kids. I work from home. My kids love video games, and we are a very, very high electric usage family. Okay? And let's say before I had solar, I had a big $500 electric bill every month. Super expensive. Okay? So in that case, it makes sense for me to go out and lease a solar system and they're, they're gonna tell me, Hey, I'm gonna lower your bill from $500 a month to $280 a month because you don't have to pay for these.

Escalation premiums with the rates and all these things, but you know, whatever, it's gonna save me a lot of money. I'm gonna save a couple hundred dollars a month for me. I think that's gonna be a no brainer. So I'm gonna sign up for that lease. Okay, great. I have that lease for a couple years. I decide to sell my home.

You want to buy my home? I have a $280 solar lease on it. But you as a person that's gonna buy my home, you might be single or you and your spouse live together, right? So, um, you don't have a. Family of seven living there, right? And you work eight hours a day at an office, some somewhere else. So you're never here during the day and you don't really like computers, you don't use much technology, anything like that.

So in essence, you're very, very low electricity usages, usage, family, right? Household. So you're a low electricity household. And I am a high electricity usage household. My lease is locked in at $280 a month. If you wanna buy my home, you must assume my lease and take on that $280 solar bill. Why? That's a big deal.

'cause you're, your current electric bill might be like a hundred bucks a month 'cause you're very low. Right? But you're gonna be obligated to take on my lease. So, um, this, you do have to kind of match up a little bit, right? With the person that you're taking over the solar lease from. There are a lot of benefits, but you.

Each lease is different. Each solar company is different that you have to, that you're gonna assume the lease through. The rates that they charge are each gonna be different. So there is a lot of nuance that you really gotta look at. And just, just because a home has solar doesn't mean it's this great big benefit.

It can be a good thing if they're good, or if they're good lease terms and they kind of match up, or if they're paid off solar panels, it's gonna be phenomenal, right? Free electricity. So it's gonna be a big thing for you as a buyer. Um, that's something you really want to pay attention to. What type of solar?

Is it paid? Is it leased? Uh, does that lease that's currently set up, does it match up with me and my family's usage, or are we, are we compatible? Because if not, that might not be a home that you want to buy. Okay. Uh, so that was kind of, I guess I was long, long-winded, but, uh, number two on my list of mistakes to avoid.

Is not paying attention to homeowners insurance rates. So if you guys are not familiar, homeowners insurance rates in the state of California have gone up a lot and there's been a lot of changes over the last like eight years. Okay. There's a lot of big homeowners insurance companies that have stepped out of the state of California.

They're no longer writing home new homeowners insurance policies, and it's a lot of big companies. So it's like State Farm and AAA. And others. You know, nationwide homeowners insurance companies, they're no longer offering homeowner insurance here close by. Not only that, but with all the fires that have happened in California, especially over the ones over the last couple years, there's many areas that are considered a high fire zone, which basically means that there's an extra fire insurance that you have to have, and sometimes you can only get that.

Through the state of California, through the Cal, California Fair Plan. And basically what that means is you might have very high homeowner's insurance on the home that you're wanting to buy. And if you don't pay attention to it, you know, it is something that can really affect your affordability, could affect your ability to, to afford the home and be able to actually get approved for your mortgage.

And it's something most people don't pay attention to a lot of times until it's, until it's, it's too late. So, um, what typically I recommend to people. I have a great insurance broker that's here locally that I rec, that I get my clients in touch with, and I, and I recommend that they do, do a comparison with him.

You can look at some other companies, but they'll shop 30 different companies and hopefully be able to get some type of a, a decent rate for you. That's not super, super expensive. But to give you some examples, you know, locally, just, just here in Menifee, I've had clients buy homes that are in like a low fire, fire area.

Uh, that I would say are very reasonable homeowner's insurance costs. That might be like 2000 to 24, 20 $500 a year, maybe slightly more than that. And then I've had clients that are trying to buy a home that was in a high fire zone that their just a normal tract home. Their homeowner's insurance might cost more than $5,000.

Right. So that's five, $6,000 a year for just for homeowners insurance, including that, that, uh, extra fire insurance. So it's a big deal. It's something you wanna make, make sure that you pay attention to and that you're mindful of when you are buying a home and just making sure that it's, that it's affordable.

Okay. Um, number three on my list. As far as mistakes to avoid when buying a home in Menifee is not paying attention to commute times and road congestion and understanding what your quality of life is really gonna be like when you are living in the home. So. If you're not aware, most people that buy homes in Menefee don't work locally.

Most people do commute out. So when you live in Menifee, most people commute to San Diego, commute to Orange County, commute to Riverside, right? And so you're gonna be jumping on the freeway to make that commute for work if you're lucky enough that you can work from home. Or you're retired, you know, then that's obviously a big plus, right?

It's gonna take away one of the biggest pain points from people, and that's getting stuck on the freeway in traffic. But if you are gonna have to make that commute on a regular basis, you really want to pay attention to what that commute looks like at a rush hour. So let's say if you live in Menifee and you're gonna commute down to San Diego.

You can go, you can easily do it. You can jump on Google Maps or Apple Maps and you can, you know, estimate, you know, from your start at the house to your finish time at, at work. And then you can, you got, you gotta just adjust that map to the commute time of rush hour. So say if you have to be at work at 8:00 AM you know, say you can set, you can set the map.

It says be there by 8:00 AM or 7: 45 or whatever it is. Uh, but a lot of times I've had clients. Think about and kind of plan this out and look online and research it, but they're doing it like 11 o'clock in the morning, right? And so they're not realizing that once, that they're not factoring in a rush hour.

And if you don't live locally. Rush hour is a real thing in Southern California, the freeways get full. There's a lot of traffic. Uh, so you just gotta pay attention to that. Some, some people have more flexible schedules, they can come and go a little bit more. If that's the case, that's a huge benefit. But, um, if you are gonna be commuting, you really want to pay attention to the commute times during rush hour and make sure you're taking into account the congestion.

That is definitely going to happen. Um, and then number four on my list is you wanna make sure that you pay attention to the schools that you are zoned for. Um, so when you're buying a home in Menifee, the school that your child will go to is based upon where you live in the city. So if you live in one part of the city, you know you're gonna be zoned for this certain elementary school or high school, whatever it is.

And then you live, if you live in the northern part of the city, you're gonna be zoned for that other high school. So different states and different areas work differently with this, but with the way our local school districts work is. The school that you're gonna go to is based upon where you live and where your address is.

You can apply, uh, for inter-district transfers to, you know, trans, if you prefer one school over the other, one has higher ratings or whatnot. You can't always apply, but they're not guaranteed. Um, not everybody gets their transfer approved. So that is something that you really want to pay attention to. If you are buying a home, you know, look at and, and just look at the ratings for the school or look at, you know, what.

What school you were zoned for? And I would recommend to go directly to the district website. Um, a lot of I, I see often when people rely, let's say, on Zillow or Redfin or some of these other third party sites, a lot of times their data is good, but it's not a hundred percent. So I always recommend and refer people directly to the school district's website, so you can check that out for yourself.

And I would not rely on a third party to, uh, give you the right info because it's not always right. I definitely have seen it wrong in the past. And then number five on my list of mistakes to avoid. It's just not factoring in resale or long-term appreciation. So when you're, when you're buying a home, you're gonna buy a, you know, $500, $600, $700,000 home.

Obviously that's a lot of money. You're buying a big asset. Right. And I think most people buy a home with the hope that. At some point in the future that home will appreciate, go up in value and they're gonna be able to build equity. Right. Well. If, if that is what you're hoping to do, which I think most everybody wants their home value to go up over time.

You want to think about not only why your home is desirable today, but how desirable it will continue to be in the future. So you want to take, make sure you take into account things like the school that you're zoned for that does affect, you know, your, your value. If you're zoned for a worse school than something on the other side of town, you know, the odds are long term, long term appreciation will not be as high even if.

Even if you have grown kids that are adults and you don't even care about what school they go to. Right. But just long-term appreciation is usually gonna be better in an area that is zoned for a good school. Right. Or the other, another thing to think about is, you know, backing up to like road noise or something like that.

Um, if you back up to a freeway, right? Well, if you back, if your home backs up to the freeway, it's probably not gonna appreciate as much as a home that's on, that backs up to a quiet street. Right. Um, or also especially, especially in Menifee 'cause there's so much building going on. If your home that you're gonna buy backs up to a dirt field, well what is that piece of dirt zoned for?

Is it zoned commercial? Is it zoned residential? Is there gonna be some big five story office building built right behind you? Right. And if, if that's the case. That's something to know, right? It's probably not as desirable, as opposed to say if a set of track homes are gonna go in 10 years.

Right? And so these are things that you can, you can look into, you can research, you can contact the city or just really think about and just really pay attention to, hey, over the next 10 years, you know what? What is going on, why is my home desirable? Why is it going to continue to be desirable? And then what could make it less desirable in the future?

But I think anytime you're spending that type of money, those are, those are thoughts that you really want to have and conversations that you really want to have, and really just think constructively about like, Hey, is this gonna be a good purchase long term? And hopefully something that will go up in value.

So anyways, I hope that's good information for you guys. Hope hopefully it helps, especially, you know, some of the stuff about taxes, uh, solar. And homeowners insurance. I think those are a big deal that people don't necessarily talk enough about. But, um, if you have any questions, feel free to reach out. You can call, you can text, you can email me, you can see my information at the bottom.

And, uh, feel free to reach out and hopefully talk to you soon. Thanks.