Over the last week, my husband and I cleared and removed old belongings from our crawl space and garage and I made my first trip to Alameda County Hazardous Waste (if you have old paint, electronics, cleaning products, or garden products that need to be properly disposed of, this is a super process), donated a trunk and backseat full of clothing and shoes, and gave a few items to my friend's niece. My purge project is not complete – I am still working through all pantry and freezer items for freshness and re-organization. Somewhere along the way I equated that more is more and began acquiring things almost as rewards for my hard work. After this first round of my 2023 declutter project, I am realizing I need to completely rethink how I buy – less is more, and having only things that I love and having a place for everything is what I now strive for.
I will use some of the same principles I share with my buyer clients when they are house hunting: when you see something of interest, pay attention to see if you are still thinking about it the next day, and if you are not, that may be a sign that it is not for you.
Recently, I worked with clients who felt that they purchased the wrong house for their needs and lifestyle. While I did not help them buy the house, I had the task of helping them sell it. Here are a few takeaways:
Buying the wrong house can be expensive. With approximately 3% closing cost to buy and 7% closing costs to sell, you will have to sell for 10% more than you paid just to break even. If you added that 10% cost to your budget, could that get you a home that is better suited for you?
In addition to the closing costs, most sellers are spending between $25K and $75K to make their homes shine and stand out from the competition with painting, landscaping, staging and other cosmetic updates. What if you added that pre-marketing cost to the 10% closing costs? Does that get you into a better property for you?
When buying, think about the life that you currently live and what your goals are in the next 7-10 years. Do you want to expand your family? If so, is there yard space that is easily accessible, a place to teach your kid how to ride a bike, room for out of town guests and the life you want to live?
Really hone in on what is most important to you, the location of the house or the house itself. I have never met a client who did not have a budget, and most clients like properties over their budget, so compromise is often the name of the game. When compromising, really take the time to determine what is most important to you. For me personally, I was less concerned with a high WalkScore score, and more concerned about the house itself, the layout, and outdoor spaces.
Over the last few years the real estate market has accelerated at a very quick pace and is now adjusting… This market could be a great opportunity to buy! Yes, you have to be comfortable paying the current interest rates, however when interest rates decline you can explore your refinance options.
For sellers, it is hard to time the market, but homes are selling sometimes with multiple offers over the asking price, especially homes that check off a lot of boxes for buyers, offer good indoor/outdoor flow, and updated properties that need minimal work. Even though the market is down, homes are still selling higher than 2021 in Berkeley and higher than 2020 in Oakland.
Every buyer’s and seller's situation and needs are different, so if you are considering a move, please reach out. I am happy to chat and provide insight without any pressure to buy or sell. I appreciate the opportunity to be your trusted advisor.
Warmly,
