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When my husband and I bought our brand-new condo in Davis, California in 2019, the move made sense to a lot of people in our lives. We were empty-nesters in our late 50s, our youngest child having left home for college in 2014. The four-bedroom home we’d purchased in 1998 and where we’d raised our kids was more than we needed and was getting older. Our dog had died in 2018, so we didn’t need a yard as much anymore, and speaking of yards, neither of us was particularly into yard work, gardening, or home maintenance and improvement. Perhaps most importantly, we love traveling and intended to do a good deal of it as we headed into our 60s and eventual retirement. The “lock and leave” aspect of condo living appealed to us a great deal.
We bought a lovely 3 BR, 2.5 flat on the top floor of our four-story building. We purchased the unit early enough in the building process that we got to make most of the design decisions, and we added some great upgrades. We’ve enjoyed living there and have an active social calendar with the neighbors.
So why, not quite seven years later, are we selling the condo and moving back to a single-family home? I shared some of the reasons for our house purchase in my previous post, but here I’ll elaborate specifically on why we’re pivoting away from the condo.
So despite our enjoyment of condo living in general and our community and unit in particular, we’d started looking around. The primary reason, as I said before, was that a single-family home with a yard and a guest cottage meets our family’s needs for the upcoming years–not to mention my strong desire to be a dog mom again(!). But as a financial matter, we remained concerned about the above issues and feared that if time passed, they could get worse. For example, Davis will have a measure on the ballot in June allowing for more new housing–which it desperately needs–which if passed could put even more pressure on the local resale market in the next few years.
When we found our new home, we started making plans to sell the condo. We were worried. The Davis market in general has been slower than normal over the past year (for economic reasons I’m sure I don’t need to enumerate), and other condos in the community have lagged on the market for months, usually only selling after several price reductions. This included our neighbor two floors below us–same floor plan/size, same view–whose unit took a long time to sell last year. We were ready to consider keeping the condo as a rental if a reasonable resale option didn’t work out in the coming months but hoped it wouldn’t come to that.
Then we got lucky. The original plan was to get the condo on the market immediately after we move into our new home on May 13, catching the spring/summer selling season. But our realtor mentioned that he had clients looking for a unit like ours and that he knew of two other agents who similarly had interested buyers. Would we be open to off-market showings? Sure, we said. So he quickly lined up the inspections, we agreed on an asking price, and he scheduled three showings for a weekend we were out of town. Within 24 hours of seeing our unit, one set of buyers made a full-price offer with no contingencies, which we happily accepted. Our selling price equals the top number that any of the units has ever sold for–and that previous high was three years ago. The buyers are moving from New Jersey to California to be close to their son and grandchildren, who live in Davis, and they don’t need the condo until the end of May, so we can move out on our schedule and have the place ready for occupancy with no stress.
What made our unit sell so quickly? Though there are maybe 5-10 other condos in our community currently on the market, ours was the only one that has the largest floor plan. We’re on the top floor, which is more desirable for many people. (It certainly was for us–after decades in houses, we didn’t relish going back to our student/newlywed days of having neighbors tromping around overhead.) We also have unobstructed views to the west (incredible sunsets!) and the south, which most buildings don’t have. It helped that our buyers had been looking for a year at our condo community, just waiting for the one they wanted to come on the market. When they saw it, they didn’t dally, just as we didn’t when we finally found the house that checked all our boxes.
Maybe we could have done even better if we’d waited and put the condo on the market, perhaps sparking a bidding war, but we felt that a fast, no-drama sale at our asking price was good enough for us to move on with our lives. We’ll end up with a profit of almost $70K (from what we paid in 2019). We came out much better than our previous neighbors had, and we’re grateful and mainly amazed at how quickly and easily this all happened.
Thanks for this detailed account. You didn’t specifically mention it, but it seems like you’re staying in Davis (a lovely area, certainly, but that summer heat would kill me!!). We also went through the process of selling one home and buying another simultaneously. It worked out, but it’s not something I would ever consider again. Too stressful. Too many parts of the process that aren’t in your control.
Did the idea of moving cause you any concerns? I’ve packed up my life and moved many times, and each time it becomes less appealing. How did you cope with that?
Thanks, Mike. Yes, the summer heat is brutal. The plan for that is to take “beat the heat” trips elsewhere in July or August. We’ve been doing that for a few years—up the coast in Sonoma County one year, South Lake Tahoe another year, on the beach in San Diego County last year. Even with increased expenses for the new house, we should still be able to afford that. I’ll just have to start filtering VRBO searches for places where we can bring the dog after we get him. We also own about a month worth of timeshare time, and with advance planning, we can use that for breaks from the heat. That said, about 9-10 months per year, the weather’s pretty great, and even in hot summer weather, mornings and evenings are generally OK. After 35 years living here, we’ve learned to work around it.
Moving is always stressful, but this time I think we’ll be OK. For one thing, we downsized our stuff quite a bit when we moved to our 3 BR condo, and now we’re going to a 4 BR house with a guest cottage. We actually bought the guest cottage furnishings for one flat price from the sellers and some of their outdoor furniture and tools, too. We’re also buying a couple of pieces of new furniture, which will be delivered to the new house. We’ve hired movers to pack and move us on May 12-13, and the price was a happy surprise. It isn’t so bad when you’re only moving 1 mile away and don’t have that much stuff.
The timing has turned out to be great. We closed on the purchase on April 7. The seller is staying in the house until May 5, so we can get ready to move at a reasonable pace. From May 6-12, we’ll have some minor repairs done at the house (contractor already booked and quotes done), and then we’ll move. Meanwhile, our condo sale closes May 26, giving a couple of weeks after our move to touch up and clean. We’ll get our money out then and our first mortgage payment on the new place is June 1, so no double payments.
We’ll see how it works out in real time, but on paper, it looks manageable 🤞.
I think you did it right. A bird in the hand beats two in the bush, and with our crazy economy, you never know when things will turn for the worse. Congratulations.
Thanks, Jerry. We think so, too. We just wanted a fair deal we can live with, not to “win” the highest bid.
I can’t wait for Part 3: “I Become a Dog Mom Again!” 🙂
i can’t wait …
I think we’ll wait until after our remodel is done. That seems like a lot to bring a puppy into. So…maybe late fall? We’ll see how it goes.
Dana, sounds like things are coming together for you guys. Your vivid writing takes me back. A realtor that we once worked with described the ordeal of buying and selling at the same time as a “dance”. I found that simple statement described the process well. It’s like learning the moves in one of those line dancing thingies; if you don’t do it right, you can get run over. In some constantly shifting order, you sift through the pros and cons of the homes you want to buy, the price you want to pay, while at the same time marketing the home you are selling. Then there are the simultaneous negotiations as both a seller and a buyer; price, possession, inspections, title searches, and what happens if my place doesn’t sell quickly?
I hate dancing.
The past six weeks have been something. I’ve had to be careful to create systems for emails and downloaded/scanned documents (“Purchase,” “Sale,” “Remodel”). But we lucked out in just doing this quick off-market sale and not having to stage the place, vacate for open houses, and so forth.
Dr Lefty,
I think you were smart to use the title of a 1976 Steve Miller song to “Take the Money and Run.”
12 years ago we put our house on the market in the spring for what we calculated we needed to have enough cash to build our retirement home, and not return turn to having a mortgage in retirement. We used a realtor from a different county that had found us the lot to build the new house. We had an offer almost immediately, but I felt they lowballed us so we refused it. That offer ended up being the only offer for the next two realty seasons. When we put the house on the market the third spring it sold almost immediately. The realtor the third year lived in our town and knew the property values better. When we received the offer it came in for less than we posted, and her response was, “the first offer is usually the best offer,” and we sold to move on.
Lesson learned!
We definitely hired the right realtor. It makes a huge difference.
Dana, thanks for letting us know about your and your husband’s thought process about selling your condo, and the practical way you sold it. This was the same way our daughter’s family was able to buy one of the nicest homes in our part of the neighborhood last year. We love having them so close. And the way they bought there was no bidding war. Chris
Thanks, Chris. Yes, I think our condo buyers were very happy to make a full price offer knowing they’d get what they wanted and not have to compete for it. Worked out for everyone.
I think you made a wise choice by taking a great offer, instead of waiting for the possibility of a better offer which might have never materialized. And it sounds like your first great decision was picking the right agent. Excellent work!
Our agent has been amazing. Not only did he help us make great deals on both ends, but everyone he’s recommended, from a mortgage broker to a contractor for repairs to our remodeling firm has been first rate. What a pleasure to have a real professional just handle things.
When our purchase closed last week, he came over with a bottle of wine, chocolate, and several generous gift cards for a “date night”—movie theater, our favorite restaurant in town, the local bookstore. We were pretty blown away.
Congrats. Sounds like your timing was perfect. I hope the move goes well.
Thanks so much–and I hope so, too.
a second comment about an issue i have been thinking about. How did you deal with the realtor commission?
We’re paying both halves of the commission on our sale. For our purchase, the seller paid 2% of the buyer’s agent and we paid .5%. This part is negotiable and written into offers and counteroffers.
Dr Lefty,
If you deem it appropriate when you are settled in I would be interested in more detail about the new realtor payment system.
As I understand it, the statute requires that the buyer’s agent be compensated at 2.5% of the sales price. In the past, that was just understood, the seller paid the commission, and the two agents split it. But now you have to sign an agreement with a buyer’s agent if you hire one, specifying that you understand that the 2.5% commission is part of the deal. In practice, the seller is still usually paying the whole thing, just as in the past. But it’s part of the offer sheet to specify who pays the buyer’s agent. In our offer on our new home, we asked the sellers to pay our agent, but they countered with saying they’d pay 2% and we’d pay the other .5%, which came out to a little over $6K. We accepted that because the price we were getting the home for was still very competitive. We paid the $6K as part of our closing costs on the purchase.
For our sale, we just agreed to pay both agents’ commissions. We were happy to get a quick, clean offer and didn’t want to haggle over a few thousand dollars.
Thank you.
Those HOA fees you’re moving away from are ridiculous! $9,048 per year??? I serve on the board for our little lake HOA (105 properties, all lakefront), and each year, we determine whether the annual fees will be $125 or $100. And yes, we get complaints about the fees… I suspect being in the middle of the country rather on a coast is largely why there is such a difference and then there are likely some variance in services related to the costs. To the point of your post, those are all great reasons to consider relocating. Congrats on the quick sale!
Our previous single-family home was in an HOA, and I think we paid $55/month. It seems to be condos that have such high fees. You should see the HOA fees for the condos on Maui!
Our HOA fee on a 2,000 sf condo is $950 plus property taxes of $14,000. Lots spent on snow removal, landscaping and pool maintenance. Nine buildings with 12 units each over 16 acres.
I know that you and Connie are happy with your location, but Wow!, those fees and taxes are high. Several of my neighbors have moved across the border from NJ to PA to reduce their property costs and are very happy here, less than 90 miles from Manhattan with bus and train transportation nearby. I pay $3000/year in property taxes for about 1500 sq ft, including a finished basement with a full bath. I have a nice yard and will soon revert an art studio in back to its original purpose as a one car garage, with a driveway accommodating two cars.
Congratulations! Sounds like you two did everything correctly!!
Congratulations! Nothing beats a quick sale with no contingencies.
thanks for sharing your story. Wishing you the best in your new house.
Thanks, Nick!
My wife and I have been casually browsing the property market — no urgency, no pressure. One thing that has shaped our search, though, is HOA fees. Where we live, they’re not universal, they tend to crop up with certain property types and 55+ developments. News stories about these fees rising well above general inflation have put us off those options. The idea of having so little control over a cost that significant just doesn’t sit well with us.
Here we want HOA fees to fully cover all the services we expect, to assure top maintenance to preserve property values for resale. In addition, we must maintain reserves. What we don’t want is an assessment to cover a major expense. I have a cousin with a condo in Florida who twice has been assessed $20,000 to cover major repairs.
We just had our three-year reserve study, and we’re 86% funded. California law requires no lower than 70%. Some owners think we should lower the reserve level percentages to decrease dues and hopefully help with resale values, but no one on the board is going for that. (One side benefit of selling and moving is that I have a socially acceptable reason to resign from the board! 😂)
Our new place does not have an HOA, and we’re looking forward to putting that behind us. On the other hand, we’ll be back to being responsible for lots of things the HOA does for us. I’m already making a list of things like pest control, gutter cleaning, yard and tree maintenance that I‘ll have to hire people for. But I’m retired now and have the time to manage that.
So there’s two sides to this, for sure.
We live in a single family house. My husband and I just discussed the size of tip(bribe) we should pay to the person who does our snow removal and lawn care. To be sure, the prices for those services has been increasing, but it’s good to be able to somewhat control what we’re buying.
i guess the fast sale of the condo is another example of location importance! Loved the story!