Hate where we bought our house...need to get it right this time. (Austin: how much, houses)

[homesick707]

Well no, not rich but not getting any younger...and life is short!

[centralaustinite]

I don't know, you want a big house on a big lot and you seem to prefer new construction! That pretty much requires that you live pretty far out (just in a different direction this time).

And December is usually the deadest month for real estate! Inventory declines as people pull their homes off the market for the holidays. Any buyers during that time period might be more serious but ugh! I'd wait till February 1st at least.

For my $450K I'd be looking at smaller house (2500 sq feet) in a much closer in location (NW Hills, Great Hills, Westover Hills) on a good sized lot (.3 acre). Great schools (Doss or Hill then Murchinson, Anderson, or a track into Westwood in RRISD) and great community. But I prize a close in location over much else.

good luck!

[austin-steve]

However, I hadn't budgeted for 10% costs to move. I was thinking more like 5%. Our realtor says he will not charge a seller's commission if we buy from a builder, and the net sheet I have shows about $4400 in closing costs, not including taxes. Am I missing something?

The vast majority of "Final HUD1" statements (settlement statement) I've seen over the past 100+ closings have the seller's final total costs between 8% and 10% at least 95% of the time. This includes commissions, title policy, closing fees, prorated taxes, etc. Thus, a generic seller with a $450K home with a $300K loan balance wondering how much they will NET at closing would be told by me, as a rough initial estimate, the following formula:

(($450,000 * 0.90) - $300K) = $105,000 net proceeds from closing. The $105K will usually be a low estimate so most selllers will be pleased to see a bit more, but it's the old "under-promise" rule. Of course, the title company can do a more precise estimate, but our rough rule of thumb is so accurate that we don't normally bother.

Even if your agent is willing to charge no listing commission, you'd still figure 3% buyer commission and use 5% to 7% as an estimate to calculate your net, which for most people, goes directly back to downpayment on the next house.

Switching gears to the size issue, my family of 4 has lived in 3700 sqft (2003-2007), 3300 sqft (2007-2010) and now we're in 1800 sqft for the past year. With three kids, you probably do need the 4th bedroom and maybe a 3rd living/flex and perhaps a home office on top, but all of that can be accommodated comfortably in 2,500-3,000 sqft.

When we think not in terms of sqft but in terms of "spaces needed", we find that a search for a home with "4 bedrooms, 3 living, 3 bath, 2 dining plus office" will yield smaller, more efficient homes than 3,800 sqft. Especially if some of the areas can be multi-use or "flex areas", such as a 3rd living doubling as a formal dining the 2 or 3 times a year it's actually needed.

The trend in homes is toward smaller homes closer in, or located in self-contained communities with good schools and amenities (like Cedar Park/Leander). People with 4,000+ sqft homes will have a harder time selling those in 10 years than will the seller of a 2,500 sqft home, and they'll spend much more maintaining those homes over that time period.

If you can start allowing the possibility of a small home into the equation, the math will change and you'll have different options. I've become a "smaller is better" advocate because I've "been there, done that" on all configurations, including having lived on as much as 6 acres and now on an average city lot. Big houses on big lots further out are a pain. I'll never do it again, ever.

Steve

[homesick707]

Me too Steve. Me too. The problem is that our current house is almost 5000 s.f. and the lot is 3/4 acre, and my husband absolutely loves it. It's his perfect scenario. I hate it and would be very happy with 3000 s.f. or less and a small lot. Therein lies the problem of what to compromise on since it's me who is wanting to go somewhere else. Just trying to make everyone happy, but I totally hear you on the number of rooms being the important factor. But my gut is screaming at me to get the h%^& out of here asap before we're stuck here for life.

Love Barton Creek West btw, but it appears there are only 6 houses for sale in that area! It's lovely though.

[austin-steve]

Originally Posted by homesick707

Me too Steve. Me too. The problem is that our current house is almost 5000 s.f. and the lot is 3/4 acre, and my husband absolutely loves it. It's his perfect scenario. I hate it and would be very happy with 3000 s.f. or less and a small lot. Therein lies the problem of what to compromise on since it's me who is wanting to go somewhere else. Just trying to make everyone happy, but I totally hear you on the number of rooms being the important factor. But my gut is screaming at me to get the h%^& out of here asap before we're stuck here for life.

Love Barton Creek West btw, but it appears there are only 6 houses for sale in that area! It's lovely though.

Uh, well, then your husband needs to hear the "do what your wife wants" speech that I give husbands. I'm not allowed to link to my full blog article about this, but if you google "Husbands, let your wife have the house she wants", you'll find it.

To paraphase it and quote myself though,

"Should husbands defer and give the final decision of which house to buy to our wives? Absolutely. As a husband, I’ve never once regretted letting my wife have her way or over-ride me on decisions related to house, home or kids...

As a buyer agent, I’ve pulled more than one husband aside and delivered this exact “”As a husband, I’ve never once regretted …” script. I think every husband who wants to impose his house hunting requirements on a reluctant wife should consider what I have to say.

A house is a home. Family completes the home, whether “family” is a freshly married couple without kids, or aging baby boomers (like us) with teens. Most of my men friends are like me. We’re simple creatures. I can function in just about any living space. I could live in a garage and be happy. But no matter where I live, life is much better when my wife is completely happy. Much of her happiness is derived from our living circumstances, our home...

...It’s not a battle I choose the wage. If my wife Sylvia wants to live in Westlake, Westlake is where we’re going to live. When she’s happy, we’re all happy. She knows best. I assess these things with logic. She has the benefit of a Mother’s Heart. Her intuition and instinct trumps my logic. Of this I am certain, and it is without reservation that I defer to her better judgment.

...At the risk of sounding sexist, I admit to believing that women have a nesting instinct that men lack. So men, if you and your wife are on the exact same page with regard to price, location, schools and the physical attributes you seek in a home, more power to you. But if she has wants and requirements that you don’t understand or agree with, I’m telling you to let her have her way. Just do it. Don’t argue. She knows best. She does."

[TexasHorseLady]

homesick707, what is your husband trying to accomplish with that 5,000 sq. ft. house? What does he get out of it? Is it privacy from the kids? A feeling of status? A feeling that he needs separate rooms for X, Y, Z? It might be, if you figure that out, that it can be accomplished with a smaller house that's closer in.

The idea is to look at the ultimate goal that he's trying to achieve, the ultimate goal that you're trying to achieve, and maybe come up with a way to achieve both of those that isn't obvious right off the bat. Agents have to do this all the time when married clients have conflicting needs/desires (you didn't think you were the only couple that ever ran into this, right? ); it is, indeed, possible.

[centralaustinite]

Picking jaw up off floor!

Wow, I cannot imagine having to maintain, heat, cool, furnish, clean and organize 5000 sq feet! Even just walk from end to end . . . I have five people, three cats and a dog in half that space and we don't even utilize it all.

Steve and THL both offer excellent advice. good luck!

[homesick707]

Love it Steve...off to google and send to hubby. I think he is realizing after a year and a half of living here that my misery is bringing down the whole family, as much as I've tried to make the best of it. I love him deeply for telling me he's willing to move, even though he's perfectly happy.

Texas Horse Lady, yes yes and yes to all of those things as to what he gets out of a house this size. **sigh**

[eichlerfan]

"Happy wife, happy life." My husband lives by that motto.

[10scoachrick]

"If Momma ain't happy...ain't NObody happy!"