Our #1D and SIL were able to buy a single-family home earlier this year in the N end of Seattle for close to that median value. At the time, it was the only one < $600K. We gave them money to help with the down payment, but they did everything else. H went along when they wanted input on structure, potential repairs, etc, (he’s a mech engineer and has done a lot of home reno), but the decision was theirs.
The house was completely remodeled by the developer who built the place in back of them. I don’t know about other areas, but in Seattle if the lot is too small to be subdivided, an ADU can be built and then the original home and the ADU can become condos. Because of this, the place sat on the market and they were able to purchase. They own the house and land it’s on, only splitting the water bill. Odd, but it works.
They budget well, have a great emergency fund, have money set aside for a new roof next year, and are able to live comfortably. I know what D makes, but haven’t a clue about SIL.
S1 bought a 3 BR, 2.5 BA, 2300 sq ft house in San Jose in May 2020. 40 minutes to work via bike or light rail (S doesn’t drive). It’s on a zero lot, which got them more house for the budget. Got it for less than asking; seller had the house on the market 42 days during the full-shutdown phase of Covid. A new rail station opened two blocks away a few months after he bought the house (that was one of the reasons he picked this place). S lived in apartments with roommates for eight years and saved religiously so he could save for the down payment. We didn’t help with the money.
He showed us a few places he was considering, asked H for legal advice on the contract. GF recommended Stanford Federal Credit Union, which got him a 3% loan. The timing was incredibly good for both price and interest rate, and he bought just before the market went really nuts. S spent a lot of time researching and figuring out what would work for them, so when he saw something, he was able to act quickly. (That was a pleasant surprise! He can be a real absent-minded professor sort, but he did a great job educating himself.)
I’ve looked at houses in his area (I check out various locales on Zillow as I contemplate retirement options), and the ones with yards cost much more and the houses are smaller. That’s the tradeoff.
I haven’t read the 500+ posts on this thread, so I may be repeating someone else, but my preferred way to “help” is to let my adult children live with me rent-free if they choose in order to save up for a home — rather than pay for it outright. That way, no retirement funds are diverted and put at risk and all the money that would go to rent can be used to save for a home purchase.
My poor kids. They’ve saved $250K for a down payment, in addition to retirement savings and savings for their kids’ educations. They moved during COVID to a lower cost of living area. But even there, things are out of reach now. A basic family home – 3 bed/2 bath, some yard, 1300 sq ft. is over 600K. It’s so frustrating. I wish I was in a position to help. 10 years ago I bought a whole house for that amount in the same general area!
Pt 2 of ours finally had an offer accepted with an “information only” inspection: the stucco (common where they are) has failed on one entire end of the property, S/DiL accepted $12k of “seller’s credits” to help pay for remediation, even though there is no way to know all the damage at this point. S said they always knew any house they could actually land would have lots of problems because “only super rich people buy good houses anymore”.
Tell your kids that “super rich” people (defined as folks who bought and sold several primary residence homes) also buy crappy houses and fix them. when the rotted siding came off our house, I thought we were lucky the bedroom wall didn’t fall out. Surprisingly, the framing work on materials plus labor cost basis was only $700. But if you look at the pic… it looks like a nuclear explosion happened there.
My brother is helping his D buy my parents’ old house that needs a LOT of TLC, which brother is well aware of. We are all very happy the house is staying in the family.
I enjoy watching HGTV shows on buying houses. NEVER have I seen anyone buy a house close to 2M that isn’t stupendous. Not my kids house. Nonetheless, every few months, they make an improvement, e.g. a new stove or drapes. They are happy.
If I hadn’t helped them, the interests rates have tripled since. Fortunately, although I am in my 70’s, I can still part time.
My son’s SIL/Partner have had a long spring/summer struggle of landing a house in our very low inventory “starter/mid home market”. Many, many bids over asking but never enough to have their bid selected.
Last week they finally found a beloved by them home and submitted the offer, the top of their “safe” price range. Finally their bid was accepted. It wasn’t the highest bid, it wasn’t the easiest bid (FHA loan) - but apparently the seller heard how much they loved the home and after hearing some tidbits about their journey through the realtor, they wanted to give them the bid knowing that they were not settling for the home - they ADORED it and would make the house a home - AND to give a first time owner a chance in this crazy market.
In HI, with our sky-high housing prices, it isn’t uncommon for $1mm-$2mm+ homes to need considerable TLC or even be teardowns, as crazy as that may sound.
D1 and her husband have been through this crazy market, losing many homes to higher bids (all over asking). Their dream neighborhood doesn’t have many houses on the market and most are out of their reach even before considering bidding over asking.
They FINALLY found a great house in one of the most beautiful settings I’ve seen. Several factors played into their offer being accepted:
1)All cash offer since DH and I are financing it-allows them to purchase without making it contingent on the sale of their current home, a deal killer in this market;
2)Over asking price offer;
and what most people say NEVER works:
3)Sellers loved their letter-seller works in the field of preservation of ecological habitats, SIL is involved in wildlife conservation. Realtor told them the sellers felt a kind of kinship and wanted to see them get the house.
They are beyond thrilled with the house (over twice as many sq. feet as their current lovely but very small home) and the fact that they are finally done with this miserable, stressful process.
Oh, I think the letters certainly CAN work. I believe that played a factor when my son/dil got their house 5 years ago. But now, in some states they are nearly prohibited.
when the rotted siding came off our house, I thought we were lucky the bedroom wall didn’t fall out. Surprisingly, the framing work on materials plus labor cost basis was only $700. But if you look at the pic… it looks like a nuclear explosion happened there.
