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Discussion Starter #141
As a realtor (in the Silicon Valley), I say wait it out until after the elections. Market is highly competitive, I'm surprised you were able to get into escrow with contingencies if it was a multiple offer situation. My buyers are going in over asking, 0 contingencies, and losing. I wrote on this home recently but it went $100k over and it wasn't anything special: https://www.redfin.com/CA/Fremont/38803-Helen-Way-94536/home/1824614

Here's an excellent website breaking down the RE market in NorCal to give you the gist of the Cali RE market: https://www.bayareamarketreports.com/

Not as detailed but most recent snapshot of SoCal: https://compasscaliforniablog.com/w...ket-Insights-Report_2020-07.15-Spreads-v2.pdf
They were all shortened contingencies. Inspection, for example, was only 8 days. Also, earnest money deposited within 24 hours instead of 3 business days. It wasn't a multiple offer situation. The property was on the market in July. I made a $656k offer, then pulled it back the next day because I was unsure about the bathroom/garage situation and it went under contract, fell out and went off market. Then, after six weeks of it being off market, my agent contacted the seller's agent and he told her he was planning to put it back up at the end of the week but I was welcome to make an offer. $660k plus the short contingencies did it. Until today, when it all fell apart :laugh:. I still don't have my earnest money back.
 

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It all fell apart?

Splain.
 

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Discussion Starter #143

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Do not buy a house with only one car garage that's my advice. I have seen your posts for many years and you are a car guy. You need a 2 car garage minimum otherwise you will hate life. My brother has a one car garage and it drives me nuts cuz you cant do anything in it.
 

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Christ, the bay area is nuts. $700+/sq ft :eek: My area has seen some unlikely properties go above $400/sq recently and it's causing a lot of chatter in the business.

That house would be 400k here, right now. 18 months ago it would have been $275-300k.
And that house over here on the Western side of PA would be 100k less.

Seriously - I can't wrap my head around what the LA/San Fran folks are having to deal with in real estate

:confused:

But I will say this thread is a rather interesting read - OP - Good Luck on your search.
 

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And that house over here on the Western side of PA would be 100k less.

Seriously - I can't wrap my head around what the LA/San Fran folks are having to deal with in real estate

:confused:

But I will say this thread is a rather interesting read - OP - Good Luck on your search.
There just isn't enough buildable land, and between the weather and SF being a tech mecca, the entire Western seaboard is an attractive place to live if you are in that profession.

I would have zero qualms moving to the Bay area if there was a way to afford a reasonable house and a standard of living. However, I get paid well for what I do, and while I could technically swing it, I would be going back to "just out of college" levels of running the finances hot.

It's not worth it, and apparently a lot of people feel the same judging from the population exodus.
 

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Christ, the bay area is nuts. $700+/sq ft :eek: My area has seen some unlikely properties go above $400/sq recently and it's causing a lot of chatter in the business.

That house would be 400k here, right now. 18 months ago it would have been $275-300k.
:laugh: It would be like half that or less in central PA.
 

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There just isn't enough buildable land, and between the weather and SF being a tech mecca, the entire Western seaboard is an attractive place to live if you are in that profession.

I would have zero qualms moving to the Bay area if there was a way to afford a reasonable house and a standard of living. However, I get paid well for what I do, and while I could technically swing it, I would be going back to "just out of college" levels of running the finances hot.

It's not worth it, and apparently a lot of people feel the same judging from the population exodus.
We have tons of empty space here in the central coast, it’s not buildable because it is protected from sprawl and why I love living here.

Our prices have skyrocketed over summer with people leaving the cities. We only had two days above 90 while everyone else is sweating 90-110 degree temperatures for months.
 

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And that house over here on the Western side of PA would be 100k less.

Seriously - I can't wrap my head around what the LA/San Fran folks are having to deal with in real estate

:confused:

But I will say this thread is a rather interesting read - OP - Good Luck on your search.
What I don't get is, is everyone out there just house poor as sh!t?

I mean I realize incomes are higher, and I realize there's the bay area, but as a whole California pricing is out of control and the bay area is one small part of that.

I mean, I can make $XXXk as an engineer here and buy a $400k house, I don't think I move out there and get the same job and make 2x and buy an $800k dump. If anything my income might be 10, MAYBE 20% higher, but nowhere even remotely close to the cost of living increase compared to here.
 

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Update: I just cancelled escrow, .
In some ways, I'm sorry to see this, but I also think you made a smart move. Of course, I'm saying that as someone who lives in a very different housing market. Our challenge was to find a house that didn't have the trifecta of failure (for us specifically) in a newer home: septic, well water, and propane. Layering in the need for garage space had us looking for a very long time. So good luck and be patient, you'll find something that works.
 

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What I don't get is, is everyone out there just house poor as sh!t?

I mean I realize incomes are higher, and I realize there's the bay area, but as a whole California pricing is out of control and the bay area is one small part of that.

I mean, I can make $XXXk as an engineer here and buy a $400k house, I don't think I move out there and get the same job and make 2x and buy an $800k dump. If anything my income might be 10, MAYBE 20% higher, but nowhere even remotely close to the cost of living increase compared to here.
It varies. There is a decent contingent of folks who won the stock options/startup lottery and walked away with a few million cash. But your normal working professional couple is going to be house poor or mega commuters if they buy a house in the bay area.

The biggest problem is that you aren't just competing with people who live and work in the area. You are competing with global wealth- Chinese oligarchs looking for a place to park their money and other such buyers. The oligarchs aren't buying houses in Western PA.
 

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I mean, I can make $XXXk as an engineer here and buy a $400k house, I don't think I move out there and get the same job and make 2x and buy an $800k dump. If anything my income might be 10, MAYBE 20% higher, but nowhere even remotely close to the cost of living increase compared to here.
That's not a mathematically correct way of looking at the equation.

If it was, it would assume your car expenses (say, fuel, tires, payment or purchase price or whatever), food prices, entertainment prices, are all 2x.
It would also assume your savings rate was 2x.

That is to say, you don't have to make 2x to afford 2x the house. Not even close.

For simplicity's sake (totally ignoring taxes and insurance and any other living costs), our mortgage is 13% of our pre-tax pay. If we wanted a mortgage twice as large for the same pay, we'd have to jack that up to 26%.

Or, alternately, if we wanted to keep the other numbers the same, we'd need to make 13% more income.

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The reality is, most people are somewhere in the middle. We have a slightly smaller house than we'd like, without a useful garage. But we live in an area we love, with weather we love, and a savings rate that multiples out to a relatively big number. I think you make sacrifices everywhere you live, and if we took a pay cut to live in a lower cost of living area, we might have a bigger house but still be able to save less $$ per month.

With covid, I can't help but wonder if we're missing the boat by not selling our house at a peak, and moving somewhere else. But there's not really anywhere else I want to live-- at least, not in the US.
 

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With covid, I can't help but wonder if we're missing the boat by not selling our house at a peak, and moving somewhere else. But there's not really anywhere else I want to live-- at least, not in the US.
The places I want to live are more expensive than where I am now :D
 

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That's not a mathematically correct way of looking at the equation.

If it was, it would assume your car expenses (say, fuel, tires, payment or purchase price or whatever), food prices, entertainment prices, are all 2x.
It would also assume your savings rate was 2x.

That is to say, you don't have to make 2x to afford 2x the house. Not even close.

For simplicity's sake (totally ignoring taxes and insurance and any other living costs), our mortgage is 13% of our pre-tax pay. If we wanted a mortgage twice as large for the same pay, we'd have to jack that up to 26%.

Or, alternately, if we wanted to keep the other numbers the same, we'd need to make 13% more income.
But if your mortgage is 30% of your gross, a double home mortgage would be 60% of your gross.

And unfortunately, lenders get borrowers drooling over "qualified" $$$. When we were shopping for homes, our "qualified" budget was $580k (iirc). We look at the payment and go, nope. We're not going that "big". As it was, our initial mortgage (+taxes) was just under 20% of gross. After our refi, it's even less.

If I wanted to get all TFL, we probably could have bought an expensive property, kept it for 3 years, and sell and move to a cheaper area. Probably one of the easiest way to make $100k.
 

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The places I want to live are more expensive than where I am now :D
Yup. I could leave, but it'll be more costly.
 

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