Category Archives: Moving

Why Non-Parent Homebuyers Should Care About School Quality

Who’s thinking about school in the middle of summer, right? Well, I went to a neighborhood party yesterday, which was heavily attended by parents of toddlers, and the primary topic of conversation was where they were going to send the little ones when they grew up.

Our local schools, for the most part, are lousy. In fact, I probably wouldn’t live here if they weren’t. Low school quality is the very factor that allowed us, along with various other childless buyers, to afford a place here. So part of me was inclined to yawn and turn away at this topic of conversation.

Yet I was also watching the laws of supply and demand in action. If school quality doesn’t improve around here, or the parents don’t feel able to shell out for private school, many of these friendly neighbors whom I’m just getting to know will be moving in a few years.

If and when they do move, local “for-sale” inventory will rise – and other buyers will have to go through the “will we have kids, can we deal with the local schools, and if not, is it worth buying now only to have to move in a few years?” analysis.

For many, the answer will be no. For me, that will mean less neighborhood stability, and less home appreciation for my own abode.

If you’re a homebuyer currently scouting out the market, it really is worth having a look at how your local schools are rated, whether or not you have, or plan to have children. Fortunately, there are lots of great research sources for that, such as City-Data and GreatSchools.org.

They’re Tweeting About This House!

IMG_4987Well, it looks like a charming young couple was intrigued by the open house, and is moving into our “cottage.”

(When selling a house with less-than-impressive square footage, it’s important to use appealing words like “cottage” rather than “matchbox” or, God forbid, “birdhouse.”)

Like any smart homebuyers, they’ve done their looking around (two other places within sight of my kitchen window were visited and rejected) and conducted a thorough home inspection.

I believe they were then convinced by the following home features:

  • Room for a growing family. (The Oak Titmouse lays from three to nine eggs.)
  • Solid construction. This one was built by Berkeley Rustic Birdhouses, known for complying with the International Standards of Ornithology.
  • Security. Try as you might, Mr. Squirrel, you’re not getting your head in that front door.
  • Quiet neighbors. (Well, the neighbor’s dog does have it in for the postal carrier. Let’s say “relatively quiet.”)
  • Sunny location. But not too sunny.
  • Cleanliness. As is recommended, I removed the old nest last year and cleaned the inside with boiling water. Every responsible home seller should behave similarly. (With perhaps a little less of the boiling water.)
  • Proximity of restaurants, bars, and other amenities. The water in the nearby birdbath gets changed daily, and there’s an all-you-can-eat buffet of seeds on a nearby ledge. How’s that for a Walk Score?

I do notice, however, as the moving in progresses, that they occasionally have trouble getting their furniture in the front door. Next time I trust they’ll wise up and carry a tape measure.

 

 

Huge Disparity in Home Affordability Across the U.S.

SFHow can an annual salary of just over $19,000 be enough to buy you a home in Cleveland, Ohio, while you’ll need a princely income of $115,510 per year to buy a home in San Francisco, California? Let’s just say that home prices, mortgage rates, and other economic factors vary tremendously across the U.S., as evidenced by a recent study by HSH.

The HSH study put together data on mortgage rates and median home prices in 25 of the largest metropolitan areas in the U.S., and calculated how much salary you would therefore need in order to cover the mortgage payments on an average home there. (And that’s before you start worrying about other costs of living, like local private schools.)

The results should make any Californian who doesn’t already own a home want to flee to another state. Not only is San Francisco absurdly difficult to buy into, but prospective Los Angeles homebuyers will need, on average, an income of $72,127, and San Diego homebuyers will need $81,570.

Even New York City starts to look cheap by comparison: An income of $66,167 gives you a shot at buying a home there, woo-whoo! And we can blame the dot-com industry for driving up rates in San Francisco, but why is Seattle, the home of Microsoft and Amazon, still affordable for folks with an income of $59,130?

No wonder the other big story in the San Francisco Bay Area is that rental rates are the highest in the nation. But if you need to buy a house in an expensive area, you’ll find useful information in the “Affording a House” section of Nolo’s website.

 

 

 

Perk of Homeownership: You Can Get a Dog!

pup snowDog adoptions went up over the holidays, according to local shelters. Probably even more people would adopt if they didn’t live in rentals with “No Pets” policies. But if you’re buying a home, now may be your chance to bring a new member into the family!

Other than the basics of care, training, and feeding, there are some important things homeowners should know about dog ownership. Fortunately, Nolo’s website offers a wealth of information on such topics as:

For even more practical and legal information, see the Nolo book Every Dog’s Legal Guide, by Mary Randolph.

 

 

In Housing Limbo, Sellers Scramble to Find New Homes

IMG_4418“I really hope I don’t have to move in with my mother-in-law.”

“I’ve had to move into a rental in a scary part of town — there goes my down payment for the next house.”

“Well, at least my parents haven’t done anything with my old room.”

These are all from stories I’ve heard on the local, Bay Area grapevine.  Anecdotal accounts, it’s true. But I’d hazard a guess, from the current state of the real estate market, that plenty of other recent home sellers are having the same trouble.

They couldn’t afford to buy a second house before selling the first one — banks aren’t exactly sympathetic to carrying two loans these days. But after the sale is done, they have nowhere to go. Inventory is low, and in this part of the country, multiple offers are becoming normal again — at tens or even hundreds of thousands of dollars over the list price. (Remember when the market felt so slumped that it could never unslump? Weird.)

The only silver lining to the low inventory is that buyers are often so grateful to be in contract to buy a home that they’ll bend over backwards to accommodate sellers’ needs to stay a little longer, an arrangement outlined in Nolo’s Q&A, “What happens if we’ve sold our old house without buying a new one?” But even the most sympathetic seller isn’t going to want to wait around forever.

The Seller Has No Place to Move to Yet: Will Your Purchase Close?

IMG_4405Found a house to buy? You’re probably feeling lucky, while many other home buyers remain frustrated at the present dearth of “For Sale” signs (not to mention properties). Low housing inventory breeds low housing inventory, with sellers thinking, “How can I put my house on the market when I don’t know if I’ll be able to find another house to buy?” along with “How can I afford to buy another house until I’ve sold this one?!”

Would-be home sellers are all but stuck — unless a buyer is willing to sign onto a so-called “seller purchase contingency.”  This portion of (or addendum to) the home purchase contract says that the deal will not close unless the seller finds another home.

If you’re the buyer, and you love the house in question enough to risk either waiting extra time for it or losing it altogether, you might want to sign onto such a contingency. But read its terms carefully first, and sound out your seller. In particular, you want to find out how far down the road toward a new house the seller will contractually need to be before your sale will close, and what steps the seller has already taken toward finding a new home.

As pointed out by Bob Hunt in the RealtyTimes article “Seller Purchase Contingencies Require Care,” the California Association of Realtors (CAR) has issued a new (as of November, 2012) addendum for just this purpose, called the “Contingency for Sale or Purchase of Other Property.” (Note: It’s not that this contingency is a new concept — real estate agents could, in the past, add language to this effect in California as well as in other states — but the contingency has become more commonly used, which apparently led CAR to issue the new form.)

The language in the new addendum is favorable to California buyers, requiring only that sellers have “enter[ed] into a contract to acquire replacement property” within a certain number of days (17 is suggested in the contract) in order to remove the contingency and allow the original deal to close. In other words, buyers who sign this addendum don’t have to wait around to make sure that the sellers’ deal actually closes on time or at all — they just need to hope that the sellers get as far as a signed agreement with another home buyer (and actually removes the contingency).

Seventeen days isn’t a very long time in which to not only find a house but enter into a purchase contract. You may want to give the sellers more time to begin with. But to make sure you’re not going to be strung along for nothing, it’s also worth making sure the sellers have been taking the appropriate steps toward finding a house.

California Realtor George Devine (co-author of Nolo’s How to Buy a House in California) says, “The seller is motivated to act in good faith here — otherwise he or she risks losing you, the willing buyer. Nevertheless, in a situation like this, you (most likely through your agent) should be asking pointed questions of the seller, like, ‘Why are you selling? How many houses have you already looked at? Have you made an offer on any? If so, at what stage are the negotiations?’ If, for example, the seller hasn’t really looked around at all, but wanted to test the market and see what price his or her house would command before taking the next steps — or is already in escrow, but with a 180-day closing period — you might want to think twice. “