Son wants to know if parents should sell now or wait for ‘top dollar’

Order a complete set of presale seller inspections for the roof, chimney/fireplace, termite, home, foundation and sewer lateral line.

Question: My father is waiting to sell his parents’ home. In 2022, my grandparents passed. In the will, I will receive 25% of the proceeds. I am to “buy a house.” Their Bay Area house, bought in 1960, sans remodeling, will fetch almost $2,000,000. The big draw is the schools. However, my father still waits for home loan interest rates to drop. He says, “I want to sell it for top dollar.”

Your column indicates home prices are not dropping while interest rates increase. My father disagrees. Besides, if my grandparents’ home increases in value, so will the home I must purchase.

Due to injuries, my disability income is limited. I need to keep expenses down. I will have to buy in a rural California area. The homes will cost a fraction of my grandparents’ home. I want to stay in California. But if my father keeps waiting, I will have to buy out of state.

Should my father list and sell his parents’ Bay Area house now or wait?

Answer: Does your dad want you to buy a house? If so, prepare his parents’ home for the market ASAP. That means, at a minimum, cleaning and emptying the house. Then, order a complete set of presale seller inspections for the roof, chimney/fireplace, termite, home, foundation and sewer lateral line. Enlist a full-service real estate agent for at least nine days of marketing. Do not accept or entertain preemptive purchase offers. Full stop. There is a housing shortage. Let the multiple offers increase your 25% inheritance.

Your father can sell high thanks to good schools and a Bay Area house marketed as “First time on the market in 60 years.” If so, you can buy it in 2023. You make a good point: Waiting means your father will sell high, and you will pay more (see examples), even in a rural area.

Keep in mind that rural properties have an additional set of components. You are on a fixed budget. Do not be fooled. Private or shared wells, well equipment, solar systems, private road maintenance, retaining walls, fencing, septic systems and hazard insurance represent ongoing and unpredictable costs.

Do not worry. You can find a single-family home, townhome or condominium in a rural community with traditional city services. Recent California Association of Realtors housing costs for you and your father to consider:

Statewide median sold price of condominium/townhome
California condo/townhomes
September 2023 $650,000
September 2022 $620,000
Price change year-to-year +4.8%

Median sold price of existing single-family homes
California single-family home
September 2023 $843,340
September 2022 $817,150
Price change year-to-year +3.2%

The California Association of Realtors also breaks down the states into regions. The statistics are telling. Notice the strength of home prices in these areas:

San Francisco Bay Area single-family home

September 2023 $1,300,000
September 2022 $1,220,000
Price change year-to-year +6.6%

Central Valley single-family home

September 2023 $481,000
September 2022 $465,000
Price change year-to-year +3.4%

Central Coast single-family home

September 2023 $950,000
September 2022 $920,000
Price Change Year-to-Year +3.3%

Far North single-family home

September 2023 $385,000
September 2022 $379,740
Price change year-to-year +1.4%

Inland Empire single-family home

September 2023 $550,000
September 2022 $562,240
Price change year-to-year -2.2%

Los Angeles Metro Area single-family home

September 2023 $780,000
September 2022 $750,000
Price change year-to-year +4.0%

Southern California single-family home

September 2023 $820,000
September 2022 $783,380
Price change year-to-year +4.7%

You or your father might need help finding the right real estate agent, in or out of the Bay Area. If so, let me know; that is a specialty of mine. Regardless, get the cherished family home on the market ASAP. It is your grandparents’ wishes. They would want you to be in your own home during the holidays. No question.

Questions? Or are you or someone you know navigating life’s transitions? Let lauded negotiator Pat Kapowich make your next move easy. Visit Kapowich’s website for free area housing data, insights and trends. Or put his artful blend of specialized credentials, decades of experience and endorsed skill set to work for you. Kapowich instills confidence when buying, selling, relocating or resizing homes. Do not just make a move — make the best move. Contact him today, Realtor Pat Kapowich, a career-long consumer-protection advocate.

Office: 408-245-7700; SiliconValleyBroker.com
Pat@SiliconValleyBroker.com Broker# 00979413