I’m in the process of relocating from Washington State to North Carolina. I will spare you all the issues of putting my home up for sale here and trying to work with a !@#$% moving company, and skip right to the part where I try to find a home in NC. Here’s the problem, for which I would please solicit opinions:
I will have a pretty tidy sum for a down payment because the housing market is muy caliente in the Puget Sound area, and it’s not quite so caliente in North Carolina. It seems like I have two choices: I can buy a house in the “better” area – better property values, much better schools – or I can by a house in the “worse” area, which is not nearly as desireable. So what’s the problem?
My idea of “better” is apparently not everyone’s. As a single woman, I like older bungalow or cottage-style homes, in established residential areas, preferably where I could walk the the coffee shop or the park or the library or whatever. These types of homes are in the “worse” area, apparently sort of shabby (I’m not sure I mind shabby), more urban (I don’t mind urban), most importantly: LESS RESALE VALUE. I can afford a nicer home here (if an older one) because property values are lower.
The “better” area is big houses on tiny lots in subdivisons, with big garages facing the culdesac street – you know the type. No disparagement meant to those of you who live in these environs; I’m sure they’re great for people with minivans and kids, but that’s precisely what I don’t have (yet, or maybe ever). (Tangent: Having tried to explain this issue to the realtor using terms like “lifestyle,” I’m pretty sure he now thinks I’m a lesbian, which actually is great for me since he’s going to be much closer to my preferred style if he just asks himself “where would a lesbian live?”) These houses have MORE RESALE VALUE. And I mean much more. But I can’t afford nearly as nice a home in this area – many of the listings I’m seeing are for 1970’s and '80s ranch homes with zero charm.
So I can buy a house I like in a location that’s not so great, or I can buy a house that makes me go “eh” in a really great location.
I would recommend a third alternative…don’t buy right away. Why lock yourself in? Rent a place for six to twelve months. Yes, you’ll have to pack up and move twice, but you give yourself time to become familiar with the area, learn your way around, and find your true dream home.
Take your time. Your home is out there, give yourself time to find it.
I vote with Ivylass. Don’t make a decision in too much haste. Also, how long do you plan to live in this house? The shorter the time that you plan to live there, the more the anticipated resale value matters–if only because no one can predict the long term future, so the good and not so good areas of town may change in 20 years, but they probably won’t in 2 or 3.
I would be surprised if there wasn’t an area in NC that is on the verge of being trendy and very nice, but might take some time to get there while its amazing arts and crafts homes get renovated. These areas are actually exremely valuable in terms of resale if you are going to stay in the house for more than 2 years or so. You can buy something that needs a bit of work and double your money in a few years as the coffee shops and art galleries move in. My husband and I just sold a house in such an area (in Arkansas), where apraisal prices nearly doubled in a 2 years. A good real estate agent knows where these areas are, you might want to shop around a bit (both for real estate agents and houses.) Good luck!
I agree with the advice so far. The only person I know who has actually made pots of money in property tells me that his method is to:
[ol]
[li]walk around with a wad of cash making ludicrously low offers until he finds someone desperate to sell[/li][li]walks around waving the keys asking ludicrously high prices until he finds someone desperate to move in tomorrow[/li][li]profit[/li][/ol]
Do not be in a hurry to either buy or sell, and you are much more likely to get a price you like.
However, also bear in mind that living in a house you can’t move out of with really really shitty neighbours is not fun at all, so check the neigbourhood out really carefully.