The True Costs of Moving

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Selling your first home and purchasing your next one can seem like an insurmountable process when you’re in the thick of it. That’s why it’s important to plan ahead before the madness begins. The first step is understanding the costs beyond the listing price.

CHIC (Pearl)

Before you commit to listing your current home, it’s a good idea to ask your agent for an estimate of all the closing costs involved. A roll call of the usual suspects includes real estate commissions, advertising, legal and professional fees, excise taxes, capital gains taxes, prorated property taxes and HOA fees, and typically surveys, inspections, etc. You’ll need to put a number to all of these items to get a full picture of your options for buying a new home, which comes with its own set of peripheral expenses.

GEEK (Kevin)

So what are some of the costs you need to consider as a buyer? To name just a few: down payment, lending fees, title fees, insurance, inspections (if the seller isn’t paying), professional cleaning, repairs and cosmetic upgrades, utility deposits, and more. We also suggest getting pre-approved for a new home loan before you do anything else, and while you’re at it, make sure to include the costs for any renovations you may want to make. Oh, and did we mention moving expenses? It adds up quick!

Should it stay or should it go?

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Remember when you remodeled your kitchen and installed that high-end stove and oven you use every day to cook fabulous meals for your family? If you sell the home, you probably think you can take it with you. Not so fast! The buyer may have other ideas.

CHIC (Pearl)

Generally speaking, anything that’s permanently installed or custom built — like light fixtures, built-in shelving, and major appliances — stays with the home. Decorative items like rugs, artwork, and non-custom curtains are typically fair game if they can be removed without causing damage to the property. But if you find it’s hard to say goodbye to that special something that really pulled your home together, it’s important to avoid misunderstandings and make your plans clear to buyers in advance.

GEEK (Kevin)

Pearl’s absolutely right here. You have to set expectations up front. If you don’t plan on leaving your appliances or other hardware in the house, it’s wise to replace them before you start showing the house or disclose that info before you enter into contract. Even something as simple as those custom cabinet handles you’re planning to take with you could be the one thing that makes a buyer commit. Don’t lead them on. If you’re ever confused about what stays and what goes, ask your agent!

California Dreaming

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The Dream For All Shared Appreciation Loan is a down payment assistance program for first-time homebuyers from the California Housing Finance Agency (CALHFA). When you sell or transfer, you repay the original down payment, plus a share of the appreciation in the value of the home. So how can you find your California dream?

CHIC (Pearl)

In order to qualify for the Dream For All program, you need to be a first-time homebuyer, which is defined as someone who has not owned and occupied their own home in the last three years. You also need to occupy the property as a primary residence and complete two levels of homebuyer education. Oh, and your household income can’t exceed $300K.

GEEK (Kevin)

State legislators allocated $300M to this program in the form of 30-year fixed-rate loans starting at 6% with a 1.45% fee. Unfortunately, while we were writing this blog, CALHFA announced that all of the program funds have been claimed as of April 7. Hopefully, additional funding will be allocated in the next state budget. In the meantime, get educated and get ready.