Budgeting

First-time home buyers often start their Laguna Beach home search with all sorts of misconceptions, especially when it comes to costs. One of the most important things to learn is that Laguna Beach real estate is not just about sale prices. There are also costs for moving, taking out the mortgage, closing the sale, property taxes, and all manner of little fees-and they can easily add up. Before settling on a Laguna Beach property, it pays to sit down with your agent and talk about your budget, so you know how much you can really afford.

So What's Your Budget?

How much you have in the bank isn't the same as how much you can afford. Consider the other expenses you'll be saddled with after you've bought the property: utility bills, taxes, association dues, gas and groceries. Combined with your mortgage payments, these expenses should add up to no more than one-third of what you're making. Here are some things to take into account:

• Fixed expenses: mortgage, taxes, insurance, utilities, subscriptions
• Variable expenses: food, gas, transport, child care
• Occasional expenses: home and car maintenance, school projects, appliances
• Personal expenses: movies, games, books, travel

What's in a Price Tag?

Laguna Beach homes for sale are usually advertised with a base price. The base price is the least you can possibly pay for the home; that is, without any upgrades, features or repairs added. To some extent, the base price is acceptable-you may have to pay to have it semi-furnished or get the floors refinished.

To make sure you're getting a fair deal, compare different building companies and see what's considered standard for Laguna Beach homes. Standard features usually include:

• Landscaping
• Driveways and lighting
• Window treatments
• Flooring (including treatments, such as resealing for hardwood floors)
• Storage units (including kitchen cabinets and hallway closets)
• Construction insurance

How Much Should You Pay For?

Many buyers find it practical to pay a bit more so they don't have to oversee the upgrade themselves. Decide whether you'd rather do your own improvements and save money, or spend more and save yourself the trouble. Which features are absolutely necessary, and which ones can wait a few months? Once you've set your priorities, you can tailor your search to Laguna Beach homes that really fit your budget.