Good Time To Move?

[Morricol61]

Red Corvette, have you thought about renting out your home for the next 12 months while you are paying rent to live elsewhere?

 

[jgman]

I just sold and plan to relocate to a LCOL area. Fortunately I am able to stay in my sister's finished basement while I look.

 

[MRG]

We sold 6 years ago in a lower COL, KC area, and moved to a higher COL in SWCO. Real estate was reasonable when we bought our house. Paid $153 per square foot. Fast forward and RE is going for $300-$400 a foot; the market was insane and it is cooling off some.

Only you can determine if you are wanting to relocate. We did for a number of reasons but it's upon each of us to see if it makes sense. We're happier here because we like the area not because of financial reasons.

 

[Bamaman]

I too lived in Lawrenceville while my daughter was growing up, as we left around 2002 due to my company consolidating elsewhere and an overdose of traffic.

We lived in a great swim/tennis community north of town in a 4200 square ft. home. We sold it to the 3rd person that looked at the house for list price.

We keep a RV in Helen so we do get to the Blue Ridge Mountains quite often.

South Carolina is probably not as tax friendly as Georgia, especially if you have numerous automobiles, boats and RV's. They eat you alive on ad valorem taxes. I do like NW South Carolina, especially around Clemson.

We were looking to move 3 years ago, and I was seriously looking in the Young Harris/Lake Chatuge/Hiawassee area of North Georgia. The place is knock dead gorgeous with Georgia's highest mountains right there.

We ended up moving to Huntsville, Alabama for the low price of housing and the Rocket City has a very educated workplace. And since my wife's disabled, we have no property taxes. Auto/boat sales taxes are also ridiculously low @ 2.75%. At just under 500,000 people, it's just right in size. And with a new Mazda-Toyota car factory hiring 4,000 employees and the FBI moving 4,000 employees here and so many missile and space related companies in full swing--there is no recession in our future. Local lakes are also incredible places to live--like Muscle Shoals and Guntersville.

 

[Red Corvette]

Thanks for all the great responses! They have given me some valuable insight.
To answer some of the questions: I am not trying to cash in with a market-timed move - I want to move because I don't like the area I am in. If any gain results, I would consider it a cherry on top.
Actually anyone considering a move and wanting to take the advice of renting for a year before buying in a new location would face the same considerations.
I am currently looking for places I think I would like. I visited Greenville SC this weekend and found it a very livibale possibility. I am still looking.
I bought my house 20 years ago for $150k. The monthly payments include taxes and insurance which the mortgage company handles with an escrow account. My current interest rate is 3.875% and I owe around $50k. The current Zillow value estimate on the house is $354k.
A recent offer from Offerpad for $345k has come into question after I did some research on their practices. Some people claim Offerpad makes what looks like a high offer to get you to sign their contract and then their inspectors start to work finding "problems" that need fixing. The cost to fix the problems are deducted from the offer and if you back out of the contract you pay 1% of the home value. They themselves can exit the contract at any time without penalty.
Opendoor recently was fined $62 million for low-balling sellers so iBuyers seem to have their own set of tricks and are hardly worry-free as they advertise.
A traditional realtor may be the way to go but I could get stuck paying rent in the new location and the mortage in the old one until the house sells.

 

[charais]

We retired in April, sold the house same day it went to market , put the remainder of our possessions in a couple of pods and rent Airbnb’s to live in all the places we wanted to visit. Hopefully one will become our new home but no big hurry. We are enjoying spending a month or two in an area and exploring what it has to offer.

 

[troutnut1]

I just sold a place in southern California this week where I had Redfin make and offer, then I actually sold it with a Realtor.

Redfin offer

$633,000 -6.5%=$591,855

Instead I hired a top selling real estate team who sold it in 6 days at $780,000:

$780,000-5% commission=$741,000

Redfin is for suckers. Hire a pro.

 

[Koolau]

I just sold a place in southern California this week where I had Redfin make and offer, then I actually sold it with a Realtor.

Redfin offer

$633,000 -6.5%=$591,855

Instead I hired a top selling real estate team who sold it in 6 days at $780,000:

$780,000-5% commission=$741,000

Redfin is for suckers. Hire a pro.

Yeah, I hate paying that 5% to 6% commission, but I think most come out ahead that way. I'm sure there are some good-luck stories out there where folks did it on their own or "sell-by-owner" etc. I'm just thinking, for most of us, it's better to pay the professional - especially one with a good reputation and a good track record. YMMV

 

[watchman3135]

We own a home in Illinois about 50 miles south of Chicago with most recent $7,900 annual property taxe bill the thought of moving to a low tax low population state like Wyoming sounds so good I get excited even thinking about it. Something about the West and this state is calling us. The funny part is whenever we tell our friends and family where we want to move to the say "Don't they get a lot of snow and cold" to which my responce "Were do we live now? Sunny warm Flordia?" lol.

 

[Looking4Ward]

You don't like the area and want to move, so there's probably a low chance anything will change your mind.

You know what you can get for your home today. You don't know what you'll be able to get for it next year.

Sounds like you have enough equity to provide some "play money" so you can take your time deciding where you want to live over the next year (or even two).

I think it's a safe bet that home prices are stabilizing and will adjust to conform to affordability ratios in order to support sales. Which also supports the bet that you'll sell for more today.

I say go for it. I'm in a similar situation but without a home to sell - I've been renting in a HCOL area during this whole economic anomaly until my son graduates next May. My lease came up for renewal last month (increased $300 per month) and I only renewed for another 9 months. I know I am not staying in this area after next May, so I will either rent a home where I know I am going or buy one if conditions are ripe. I'm watching both rental and for sale listings in that area and an increasing number are changing to "Reduced" every day, so that's encouraging.

 

[troutnut1]

We own a home in Illinois about 50 miles south of Chicago with most recent $7,900 annual property taxe bill the thought of moving to a low tax low population state like Wyoming sounds so good I get excited even thinking about it. Something about the West and this state is calling us. The funny part is whenever we tell our friends and family where we want to move to the say "Don't they get a lot of snow and cold" to which my responce "Were do we live now? Sunny warm Flordia?" lol.

Be careful picking a state to live in based upon any one type of tax (like property taxes). States have dozens of types of taxes in which to share the costs of the communities we live in. You need to consider the whole package.

Evaluate all of them by state at TaxFoundation.org

For 2022 Illinois is expected to have a per capita total taxation of $3534 and ranks 14th (meaning 36 states have less taxation).

Wyoming is just slightly better at $3405 per capita and ranks 17th (meaning 33 states have less taxation).

Wyoming is a beautiful state and there may be lots of other reasons to consider it. But typically less population means fewer room mates to split the costs of a community. Or substantially less services than you may be accustomed to. Or both.

Pick a state to live in carefully considering what services you value and are willing to pay for. Then figure out the total costs of those services (taxes). And do that BEFORE you move there. Don’t be one that moves there, and then bitches about how its done there.

Spoiler alert:

Least taxed state=Alaska (ranked 50)
Second least taxed=Florida (ranked 49)

 

[Among_Primates]

I agree that the difference between one year's rent and your current mortgage may be a very small factor compared with others. I'm in the process of getting my house ready to sell here in Los Angeles, where I wanted to stay for another six to eight months -- but now I'm rushing, because Zillow says my house lost $113,000 over the course of last month. I'm afraid to look, this month. I'm 66, and my plan has always been to use the differential between selling here and buying in a small town elsewhere to help finance my retirement.

This is going to be a complicated move across the country, but at least I've already bought a house, in Central Mass, which is less than half the value of my current place. We close in nine days. I might or might not end up staying in that new house long term, but when you're 3,000 miles away, you need a target! If I find my dream house three years from now, at least I'll be in the same geographic area; it's been, shall we say, challenging to look from afar.

I'm certainly letting the market influence me to the point of hurrying. The price of my house was ridiculously high three months ago; today it's only foolishly high.

 

[watchman3135]

Be careful picking a state to live in based upon any one type of tax (like property taxes). States have dozens of types of taxes in which to share the costs of the communities we live in. You need to consider the whole package.

Evaluate all of them by state at TaxFoundation.org

For 2022 Illinois is expected to have a per capita total taxation of $3534 and ranks 14th (meaning 36 states have less taxation).

Wyoming is just slightly better at $3405 per capita and ranks 17th (meaning 33 states have less taxation).

Wyoming is a beautiful state and there may be lots of other reasons to consider it. But typically less population means fewer room mates to split the costs of a community. Or substantially less services than you may be accustomed to. Or both.

Pick a state to live in carefully considering what services you value and are willing to pay for. Then figure out the total costs of those services (taxes). And do that BEFORE you move there. Don’t be one that moves there, and then bitches about how its done there.

Spoiler alert:

Least taxed state=Alaska (ranked 50)
Second least taxed=Florida (ranked 49)

I would say their are some taxes you can control and then those you cannot. Property taxes is one you cannot. The overall combined tax burden rankings I’ve researched consistently have Illinois in the top ten worst and Wyoming in the top ten best however as you said the other major attraction is scenery. Lower population density is another consideration. Illinois is predominantly known for Chicago which I have no interest even though I'm within an hours drive. Colorado was my long time favorite but high real estate and few other factors pushed me towards Wyoming.

 

[Koolau]

Be careful picking a state to live in based upon any one type of tax (like property taxes). States have dozens of types of taxes in which to share the costs of the communities we live in. You need to consider the whole package.

Evaluate all of them by state at TaxFoundation.org

For 2022 Illinois is expected to have a per capita total taxation of $3534 and ranks 14th (meaning 36 states have less taxation).

Wyoming is just slightly better at $3405 per capita and ranks 17th (meaning 33 states have less taxation).

Wyoming is a beautiful state and there may be lots of other reasons to consider it. But typically less population means fewer room mates to split the costs of a community. Or substantially less services than you may be accustomed to. Or both.

Pick a state to live in carefully considering what services you value and are willing to pay for. Then figure out the total costs of those services (taxes). And do that BEFORE you move there. Don’t be one that moves there, and then bitches about how its done there.

Spoiler alert:

Least taxed state=Alaska (ranked 50)
Second least taxed=Florida (ranked 49)

Also good to check out future liabilities of states before moving.

 

[Koolau]

I would say their are some taxes you can control and then those you cannot. Property taxes is one you cannot. The overall combined tax burden rankings I’ve researched consistently have Illinois in the top ten worst and Wyoming in the top ten best however as you said the other major attraction is scenery. Lower population density is another consideration. Illinois is predominantly known for Chicago which I have no interest even though I'm within an hours drive. Colorado was my long time favorite but high real estate and few other factors pushed me towards Wyoming.

Yes, your mix of taxes is important. Much of our income is exempt from our rather high state taxes. The devil is in the details.

 

[Red Corvette]

Red Corvette, have you thought about renting out your home for the next 12 months while you are paying rent to live elsewhere?

That's an interesting idea but I don't know much about it. I do know I don't want to be a long-distance landlord. That assumes some sort of rental management company. I've seen ads for something called Rental Warehouse but I don't know if they are legit.

Anyone have any experience with rental management companies?

 

[Bamaman]

As mentioned before, I lived in Lawrenceville. After 10 years in a very nice neighborhood (Rivershyre), the original homeowners started moving and the atmosphere changed. We were being bombarded by foreigners (legal aliens). The entire Atlanta Northern Perimeter has changed--including huge retail malls and shopping closures.

As you mentioned, NW South Carolina is attractive with mountains and lakes. Another great place to live is Auburn-Opelika, AL--100 mi. SW of ATL. We also love the NE Georgia area around Hiawassee-Blairsville. If money was no limit, Highlands-Cashiers is very beautiful. North Alabama and Chattanooga has the incredible Tennessee River--and that's why we're in Huntsville (lake house.) You just have so many directions you could go--if you can break ties with Hotlanta, Capitol of the South.

 

[Koolau]

That's an interesting idea but I don't know much about it. I do know I don't want to be a long-distance landlord. That assumes some sort of rental management company. I've seen ads for something called Rental Warehouse but I don't know if they are legit.

Anyone have any experience with rental management companies?

We had a rental management company when we rented out our town house in Hawaii. In fact, absentee landlords are required by state law to use a registered rental agent. We were ultimately happy with the service, but it costs 10% of the rent. But it's nice to know someone is keeping up on maintenance and repairs as well as insuring that rents are coming in on time. Our agent was careful about references and insured that we always got our rent and that all appropriate forms were filed (state excise tax in our case.) I would consider it good money, well spent in our case. Not sure everyone is like that so YMMV.