Another New Arrival ..

[robrobrob]

350 is is pretty odd budget for the East End. Most of the houses are either under 300 or over 500. The ones under 300 aren't as walkable or are on a busy street (Wilkiins). The ones over 500 are more walkable and close to Oakland and Shadyside (North of Forbes/Murdoch Farms).

A friend who lives in Point Breeze was looking to move up from a 350-400,000 house and he found that he had to spend close to 800,000 to get something much nicer.

[robrobrob]

Another thing, I would contact a realtor who works out of Squirrel Hill (pick one with lots of listings) and ask him or her if she has any pocket listings. A lot of times, this is how the best houses sell.

[Bong477]

I agree with rob on the budget issue, you may continue to be underwhelmed by what 350k gets in and around Squirrel Hill. It put you a bit over the modest/average homes (generally a bit under 2000 sq feet) which are generally more in the 250k range but below the larger homes (3-4,000 sq ft ballpark) which are more in the mid 400s and up to about 800k, which is where you start to hit the line between big home and mansion. I am sure that with enough time you could find the sweet spot for you, but with a limited amount of time, you may not. We eventually found the right combination of price, size, work needed, location, etc but it took some time and a little luck. In my experience, well priced homes sell quickly. I can suggest a Realtor who did well for us if you need one.

You may have figured this out already but your housing budget should account for our property taxes which are often surprisingly high to people moving from out of the area and could potentially cut back your budget by as much as 20-25%.

[Sideblinded]

Property taxes are considered high? I have never paid such low taxes in my life and I have owned homes in WI. IA. NE. And IL. I am moving back to midwest and looking at more than twice the yearly tax bill I am paying now. I think taxes are really low here.

The 2% transfer fee is the major buzzkill in PA!

[Moby Hick]

Originally Posted by Sideblinded

The 2% transfer fee is the major buzzkill in PA!

It's actual 4% in the city and they've closed a loophole that businesses used to use on larger transactions. Technically, 2% is paid by the buyer and 2% by the seller. That might be where you got the 2% from.

Pennsylvania closes property transfer tax loophole - Pittsburgh Post-Gazette

[Sideblinded]

I knew it was 4%, I was just factoring in what I will pay when I sell. After reading your post I realized I paid the other 2% when I bought a few years ago. It adds up!

[Bong477]

Property taxes are definitely high in Allegheny county, depending on what metric you use (actual dollars, % of income, or % of home value) we are either well above average or one of the highest in the country.

Reference: Property Taxes on Owner-Occupied Housing by County, 2005 - 2009, Ranked by Taxes as Percentage of Home Value (One year averages) | Tax Foundation

If you look at property taxes to home value, Allegheny County comes in at 2.09% (which sounds about right) or 42 out of 792 (top 5%). It is possible you have only lived in counties that are higher than Allegheny, but seems unlikely. Note that 2.09% is almost exactly double national average of 1.04%.
If you look at property taxes to median income, Allegheny County is a less egregious 145th (top 15-20%).
If you look at just the actual dollar value of property taxes paid its 212th (top 25-30%).

Whether taxes are high because homes are (relatively) inexpensive or whether homes are (relatively) inexpensive because taxes are high is somewhat of a chicken and egg argument, but suffice it to say, it is what it is.

Closing costs are substantial too (6-7% ballpark & more for cheaper homes), particularly in the city because of both the high transfer tax and high prepaid taxes.

[Sideblinded]

I am comparing 250k-300 homes. I pay 3800ish here and am looking at 8500-10000 in the region I am relocating to. There are no cheaper areas or counties. Bottom line I will be paying quite a bit more for the chicken and the egg!

Regardless everyone needs to factor in property taxes when buying.

[robrobrob]

Originally Posted by Sideblinded

I am comparing 250k-300 homes. I pay 3800ish here and am looking at 8500-10000 in the region I am relocating to. There are no cheaper areas or counties. Bottom line I will be paying quite a bit more for the chicken and the egg!

Regardless everyone needs to factor in property taxes when buying.

Then your house is under assessed. You live in the city, right? A 300,000 home in the city assessed at 300,000 pays about 9100 a year in property taxes.

The city really does not appealing low assessments. In the burbs this is fairly common.

[dcraider]

Thanks for everyone's reply. I luckily have employer package to move here so closing costs are paid for. I think there IS something to this proposal that $350K is a odd budget BUT I think it just shows you that housing stock is rare at this price for a reason. Homes under $300K in Squirrel Hill tend to be further south then I want to go or in fringe areas or next to something undesirable. Then homes north of $450K tend to be too big of a house then I need and more heating bill then I care to afford. I am at disadvantage having only 60-90 day to find AND close on a house. I am also looking at a home holding its value for potential resale in less then 3-5 years (again with seller costs paid for). The few places I found to rent were a lot of money AND sat a long time. MTL was an option only because I could find a smaller house at affordable price. But houses in Squirrel Hill that are valued well sell much faster then average homes in MTL only because of demand. People do want to live close and downtown is getting hotter given all the attention for PIT and the fact that job growth is on increase.

I did get two realtors -- one on Squirrel Hill and other working MTL for me. Loves the comments ... much thanks everyone. I don't move into temp digs until Feb 1 and then the fun begins. Hope by dog likes it there too