It is with a mix of celebratory joy and nostalgic longing that I said goodbye to my SoCal townhouse for good this morning. Escrow closed yesterday, and as of today I am no longer a homeowner. Having rented in the Bay Area for a year and a half, I should be used to no longer being master of my domain, but it still feels weird to know that piece of real estate is no longer mine.
Having bought that lovely condo at the beginning of the last real estate boom, watched the era of bidding wars and inflated home prices unfold and peter out, and worked at Trulia for the past 18 months, I knew the negotiating process would be an interesting experience, and it certainly was.
What did I learn? Here’s my bit of armchair wisdom:
First, don’t believe the hype: as far as I can tell, prices are dropping. Sure, I only sold my one house, and some markets like San Francisco and New York City are largely immune from market fluctuations, because everybody wants to own real estate there. But for the rest of us? Double-check your parachutes.
Second: if your house is on the market, take care of the mold now before your buyers request a 5-figure mold remediation credit, because they will.
Third: if you bought a few years ago, are looking to sell, and stand to make a substantial profit, don’t wait–sell now: you don’t know how the subprime mortgage market’s troubles will affect your home’s value, and the market may well have peaked in your area.
Fourth: if you’re renting now, stay where you are and save your money for a big down payment in a year or two. Those no-money-down, 103%-financing loans are disappearing fast, and you’ll likely have to borrow the old-fashioned way.
Sure, I’ll miss my house. I already do, and I think my cat does too–he sure loved running up and down those stairs (we got the kitties a rental with stairs, too).
But amidst the real estate frenzy that seared through the country over the past few years, I feel comforted by the feeling that the basics never go out of style: buy low, sell high, and get stairs for your cats.
Read the rest of my home-selling saga: part 1, part 2