Uninsurable?

As building costs, fraud, and risk from wildfires and other climate disasters continue to rise, some insurance companies are backing away from issuing new homeowner policies in the Golden State. What does this mean for potential buyers and sellers?

CHIC (Pearl)

If you’re thinking of buying a home in California, you should get a head start on finding a home insurer who will give you a good policy at an affordable rate before making an offer. Understanding your annual expenses is a key factor in determining how high you’re willing to go.

GEEK (Kevin)

Insurance companies aren’t nonprofits, and they’re not stupid either. They already know the risks of insuring properties in earthquake country, and the recent trend of wildfires hasn’t made the equation any more favorable to them. In other words, don’t hate the player, Hate the game!

The Census Sells

The U.S. Census Bureau recently released data from the once-a-decade count, and the report shows that our share of senior residents expanded significantly from 2010 to 2020 and faster than any decade in more than a century. Meanwhile, birth rates continue to decline as more younger couples delay having children to focus on education and careers. The AP has more on the numbers.

As usual, the Census contains some valuable nuggets of data that sellers can leverage to successfully market their homes. For example, 1 in 6 Americans is 65 and older — up from 1 in 8 in 2010 — and our median age has risen eight years since 1980 to 38.8. That means even the perfect social media post may not reach as many potential buyers as a traditional direct mail campaign.

Additionally, it’s interesting to note that 5% of households included three or more generations, and about 19% of Americans reported living with relatives. Given these numbers, it would be wise to highlight an existing ADU on your property — or the potential for adding one. On the flip side, about 28% of households were solo occupants. That’s 35 million possible buyers who may not care as much about schools and other concerns for families and couples.

The True Costs of Moving

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?

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!

Give Mom some home-Bheked treats!

Our friend and client Bhek Morton bought a house with us a year ago. She also runs a home baking business based in San José. The other day, we placed an order, and Bhek brought us our fresh-baked bagels herself. They were still warm from the oven! We highly recommend the Bhekery for a unique Mother’s Day treat.