Carmel Valley questions

[cabal]

Definitely a mistake to sell based on the limited info provided. You have 600K equity, a paltry 400K mortgage by CV standards and dual income. What’s the problem? Since neither of you were laid off in 08/09, chances are your employment is reasonably secure. If you still have legitimate job security concerns, consider selling and renting.

If your original loan was large saddling you with high payments, consider refinancing to a 30 yr loan taking advantage of the historical low rates. You can still target paying the loan off in 15-20 yrs by making extra payments, while reserving the option to make the lower 30 yr amortized payment. However, if your current PITI can be covered by rent, I probably wouldn’t do anything. Worst case scenario you both lose your jobs, rent your house out and move the family to a small apt.

Regarding the 1300 sf house, it’s definitely too small for a growing family of four. Maybe ok if you’re a few yrs removed from dorm life and use to a minimalist lifestyle with milk crates for furniture. Realistically, it’s just a glorified apt with small 10’x10’ bedrooms, combo lr/dr/fr and a tiny kitchen. If your children are young, you will become increasingly miserable as your entire house morphs into a mold injection junkyard.

[CA renter]

[quote=UCGal]The idea of being mortgage free is very attractive. I’m aggressively paying on my mortgage in hopes of achieving that goal.

As far as downsizing… I guess it depends on your family and the house you’re moving to. If you’re moving from a two story with large entry halls, curving staircases, etc… to a one story, open plan… You get some benefit of eliminated wasted space. (You can’t live on a staircase – and most folks don’t use their entry foyers as living spaces.)

If the yard/outdoor space in the new/smaller place is comparable – that will help with the transition.

Look hard at your furniture – is it the oversized stuff that is so common now? That will make the rooms seem smaller. I’ve noticed that furniture styles like you find at Ashleys tend to be HUGE – designed for the tract-mcMansions. Smaller scale used to be easier to find. If your furniture is large – it will be harder to transition to a smaller house.

Only YOU know if you’ll adjust to a smaller house. With 1300 sf you probably have one just one living space – not a separate living room/family room setup… do you need separate space for the kids? Is your formal living room used much now?

To answer your specific questions:
1) We bought from my father – no lawyer or realtor – but we used a title company. It was fine. A lawyer reviewing the sales contract is a good idea.

2) If priced right – it will sell. If priced too high, it won’t. I notice there aren’t too many houses on your street – so no good comps… If you want to be under contract in 30 days – you’ll need to price at or slightly below market price. Don’t just count on Zillow for pricing. It’s notoriously inaccurate at times.

3)I don’t know.

4) I think it’s a great idea to be mortgage free. It gives you options and you are no longer a slave to the house payments. It makes the stress of possible job reductions easier. I’m a fan.

5)It’s possible. It’s possible to even be happy doing it. My husband is one of 6 kids (so 8 in the family) – they grew up in a 1200 sf row house… He didn’t know they were being abused and were supposed to feel deprived. We lived in a 1500 sf house before we bought my dad’s house… and had my in-laws in with us for part of the time. We were happy. It’s what you make of it.[/quote]

UCGal makes some very good points. FWIW, we used to live in a sub-1,300 sf house (single-story) with two young kids. It is ALL about the layout. The builder was a genius (IMHO) and by using space wisely, we had 3/2, plus more storage space than in our current 2,000+ sf house. We also had a living room and separate family room that rival the sizes seen in the newer 3,000+ McMansions because the *space was used wisely.* The downside was that the bedrooms were the standard 10X10 or 9X10, and the master was tiny (around 11X12), but we could fit a king-sized bed, dresser, and two nightstands in it quite comfortably.

Like UCGal suggested, you need small-scale furniture, and the space needs to be kept clean and clutter-free. BTW, cleaning a smaller space is so much easier than keeping a larger home clean.

Still, FLU also made some good points. It seems like you really need to decide whether or not your jobs are at risk, as that seems to be your biggest concern.

Best of luck to you!

[CA renter]

[quote=UCGal]The idea of being mortgage free is very attractive. I’m aggressively paying on my mortgage in hopes of achieving that goal.

As far as downsizing… I guess it depends on your family and the house you’re moving to. If you’re moving from a two story with large entry halls, curving staircases, etc… to a one story, open plan… You get some benefit of eliminated wasted space. (You can’t live on a staircase – and most folks don’t use their entry foyers as living spaces.)

If the yard/outdoor space in the new/smaller place is comparable – that will help with the transition.

Look hard at your furniture – is it the oversized stuff that is so common now? That will make the rooms seem smaller. I’ve noticed that furniture styles like you find at Ashleys tend to be HUGE – designed for the tract-mcMansions. Smaller scale used to be easier to find. If your furniture is large – it will be harder to transition to a smaller house.

Only YOU know if you’ll adjust to a smaller house. With 1300 sf you probably have one just one living space – not a separate living room/family room setup… do you need separate space for the kids? Is your formal living room used much now?

To answer your specific questions:
1) We bought from my father – no lawyer or realtor – but we used a title company. It was fine. A lawyer reviewing the sales contract is a good idea.

2) If priced right – it will sell. If priced too high, it won’t. I notice there aren’t too many houses on your street – so no good comps… If you want to be under contract in 30 days – you’ll need to price at or slightly below market price. Don’t just count on Zillow for pricing. It’s notoriously inaccurate at times.

3)I don’t know.

4) I think it’s a great idea to be mortgage free. It gives you options and you are no longer a slave to the house payments. It makes the stress of possible job reductions easier. I’m a fan.

5)It’s possible. It’s possible to even be happy doing it. My husband is one of 6 kids (so 8 in the family) – they grew up in a 1200 sf row house… He didn’t know they were being abused and were supposed to feel deprived. We lived in a 1500 sf house before we bought my dad’s house… and had my in-laws in with us for part of the time. We were happy. It’s what you make of it.[/quote]

UCGal makes some very good points. FWIW, we used to live in a sub-1,300 sf house (single-story) with two young kids. It is ALL about the layout. The builder was a genius (IMHO) and by using space wisely, we had 3/2, plus more storage space than in our current 2,000+ sf house. We also had a living room and separate family room that rival the sizes seen in the newer 3,000+ McMansions because the *space was used wisely.* The downside was that the bedrooms were the standard 10X10 or 9X10, and the master was tiny (around 11X12), but we could fit a king-sized bed, dresser, and two nightstands in it quite comfortably.

Like UCGal suggested, you need small-scale furniture, and the space needs to be kept clean and clutter-free. BTW, cleaning a smaller space is so much easier than keeping a larger home clean.

Still, FLU also made some good points. It seems like you really need to decide whether or not your jobs are at risk, as that seems to be your biggest concern.

Best of luck to you!

[CA renter]

[quote=UCGal]The idea of being mortgage free is very attractive. I’m aggressively paying on my mortgage in hopes of achieving that goal.

As far as downsizing… I guess it depends on your family and the house you’re moving to. If you’re moving from a two story with large entry halls, curving staircases, etc… to a one story, open plan… You get some benefit of eliminated wasted space. (You can’t live on a staircase – and most folks don’t use their entry foyers as living spaces.)

If the yard/outdoor space in the new/smaller place is comparable – that will help with the transition.

Look hard at your furniture – is it the oversized stuff that is so common now? That will make the rooms seem smaller. I’ve noticed that furniture styles like you find at Ashleys tend to be HUGE – designed for the tract-mcMansions. Smaller scale used to be easier to find. If your furniture is large – it will be harder to transition to a smaller house.

Only YOU know if you’ll adjust to a smaller house. With 1300 sf you probably have one just one living space – not a separate living room/family room setup… do you need separate space for the kids? Is your formal living room used much now?

To answer your specific questions:
1) We bought from my father – no lawyer or realtor – but we used a title company. It was fine. A lawyer reviewing the sales contract is a good idea.

2) If priced right – it will sell. If priced too high, it won’t. I notice there aren’t too many houses on your street – so no good comps… If you want to be under contract in 30 days – you’ll need to price at or slightly below market price. Don’t just count on Zillow for pricing. It’s notoriously inaccurate at times.

3)I don’t know.

4) I think it’s a great idea to be mortgage free. It gives you options and you are no longer a slave to the house payments. It makes the stress of possible job reductions easier. I’m a fan.

5)It’s possible. It’s possible to even be happy doing it. My husband is one of 6 kids (so 8 in the family) – they grew up in a 1200 sf row house… He didn’t know they were being abused and were supposed to feel deprived. We lived in a 1500 sf house before we bought my dad’s house… and had my in-laws in with us for part of the time. We were happy. It’s what you make of it.[/quote]

UCGal makes some very good points. FWIW, we used to live in a sub-1,300 sf house (single-story) with two young kids. It is ALL about the layout. The builder was a genius (IMHO) and by using space wisely, we had 3/2, plus more storage space than in our current 2,000+ sf house. We also had a living room and separate family room that rival the sizes seen in the newer 3,000+ McMansions because the *space was used wisely.* The downside was that the bedrooms were the standard 10X10 or 9X10, and the master was tiny (around 11X12), but we could fit a king-sized bed, dresser, and two nightstands in it quite comfortably.

Like UCGal suggested, you need small-scale furniture, and the space needs to be kept clean and clutter-free. BTW, cleaning a smaller space is so much easier than keeping a larger home clean.

Still, FLU also made some good points. It seems like you really need to decide whether or not your jobs are at risk, as that seems to be your biggest concern.

Best of luck to you!

[CA renter]

[quote=UCGal]The idea of being mortgage free is very attractive. I’m aggressively paying on my mortgage in hopes of achieving that goal.

As far as downsizing… I guess it depends on your family and the house you’re moving to. If you’re moving from a two story with large entry halls, curving staircases, etc… to a one story, open plan… You get some benefit of eliminated wasted space. (You can’t live on a staircase – and most folks don’t use their entry foyers as living spaces.)

If the yard/outdoor space in the new/smaller place is comparable – that will help with the transition.

Look hard at your furniture – is it the oversized stuff that is so common now? That will make the rooms seem smaller. I’ve noticed that furniture styles like you find at Ashleys tend to be HUGE – designed for the tract-mcMansions. Smaller scale used to be easier to find. If your furniture is large – it will be harder to transition to a smaller house.

Only YOU know if you’ll adjust to a smaller house. With 1300 sf you probably have one just one living space – not a separate living room/family room setup… do you need separate space for the kids? Is your formal living room used much now?

To answer your specific questions:
1) We bought from my father – no lawyer or realtor – but we used a title company. It was fine. A lawyer reviewing the sales contract is a good idea.

2) If priced right – it will sell. If priced too high, it won’t. I notice there aren’t too many houses on your street – so no good comps… If you want to be under contract in 30 days – you’ll need to price at or slightly below market price. Don’t just count on Zillow for pricing. It’s notoriously inaccurate at times.

3)I don’t know.

4) I think it’s a great idea to be mortgage free. It gives you options and you are no longer a slave to the house payments. It makes the stress of possible job reductions easier. I’m a fan.

5)It’s possible. It’s possible to even be happy doing it. My husband is one of 6 kids (so 8 in the family) – they grew up in a 1200 sf row house… He didn’t know they were being abused and were supposed to feel deprived. We lived in a 1500 sf house before we bought my dad’s house… and had my in-laws in with us for part of the time. We were happy. It’s what you make of it.[/quote]

UCGal makes some very good points. FWIW, we used to live in a sub-1,300 sf house (single-story) with two young kids. It is ALL about the layout. The builder was a genius (IMHO) and by using space wisely, we had 3/2, plus more storage space than in our current 2,000+ sf house. We also had a living room and separate family room that rival the sizes seen in the newer 3,000+ McMansions because the *space was used wisely.* The downside was that the bedrooms were the standard 10X10 or 9X10, and the master was tiny (around 11X12), but we could fit a king-sized bed, dresser, and two nightstands in it quite comfortably.

Like UCGal suggested, you need small-scale furniture, and the space needs to be kept clean and clutter-free. BTW, cleaning a smaller space is so much easier than keeping a larger home clean.

Still, FLU also made some good points. It seems like you really need to decide whether or not your jobs are at risk, as that seems to be your biggest concern.

Best of luck to you!

[CA renter]

[quote=UCGal]The idea of being mortgage free is very attractive. I’m aggressively paying on my mortgage in hopes of achieving that goal.

As far as downsizing… I guess it depends on your family and the house you’re moving to. If you’re moving from a two story with large entry halls, curving staircases, etc… to a one story, open plan… You get some benefit of eliminated wasted space. (You can’t live on a staircase – and most folks don’t use their entry foyers as living spaces.)

If the yard/outdoor space in the new/smaller place is comparable – that will help with the transition.

Look hard at your furniture – is it the oversized stuff that is so common now? That will make the rooms seem smaller. I’ve noticed that furniture styles like you find at Ashleys tend to be HUGE – designed for the tract-mcMansions. Smaller scale used to be easier to find. If your furniture is large – it will be harder to transition to a smaller house.

Only YOU know if you’ll adjust to a smaller house. With 1300 sf you probably have one just one living space – not a separate living room/family room setup… do you need separate space for the kids? Is your formal living room used much now?

To answer your specific questions:
1) We bought from my father – no lawyer or realtor – but we used a title company. It was fine. A lawyer reviewing the sales contract is a good idea.

2) If priced right – it will sell. If priced too high, it won’t. I notice there aren’t too many houses on your street – so no good comps… If you want to be under contract in 30 days – you’ll need to price at or slightly below market price. Don’t just count on Zillow for pricing. It’s notoriously inaccurate at times.

3)I don’t know.

4) I think it’s a great idea to be mortgage free. It gives you options and you are no longer a slave to the house payments. It makes the stress of possible job reductions easier. I’m a fan.

5)It’s possible. It’s possible to even be happy doing it. My husband is one of 6 kids (so 8 in the family) – they grew up in a 1200 sf row house… He didn’t know they were being abused and were supposed to feel deprived. We lived in a 1500 sf house before we bought my dad’s house… and had my in-laws in with us for part of the time. We were happy. It’s what you make of it.[/quote]

UCGal makes some very good points. FWIW, we used to live in a sub-1,300 sf house (single-story) with two young kids. It is ALL about the layout. The builder was a genius (IMHO) and by using space wisely, we had 3/2, plus more storage space than in our current 2,000+ sf house. We also had a living room and separate family room that rival the sizes seen in the newer 3,000+ McMansions because the *space was used wisely.* The downside was that the bedrooms were the standard 10X10 or 9X10, and the master was tiny (around 11X12), but we could fit a king-sized bed, dresser, and two nightstands in it quite comfortably.

Like UCGal suggested, you need small-scale furniture, and the space needs to be kept clean and clutter-free. BTW, cleaning a smaller space is so much easier than keeping a larger home clean.

Still, FLU also made some good points. It seems like you really need to decide whether or not your jobs are at risk, as that seems to be your biggest concern.

Best of luck to you!

[SD Realtor]

This is a tough call cvmom. Personally the area you live in is one of my favorites. I really like the Heights alot and if you put your home for sale, assuming it shows well and is priced correctly you would no doubt sell it quickly. Suffice it to say demand for that neighborhood is strong. Many of my friends who are engineers have paid off their mortgages by making double payments and they enjoy a debt free life. Nothing wrong with that.

As far as buying the home you like from the acquaintance that is not hard as you implied. You can have an attorney draw up the purchase agreement and make sure that all the bases are covered and run it through escrow.

A family of 4 in 1300 sf seems a bit tough to me but is definitely doable. For my own family there is not a chance in hell to be in 1300 sf but that is personal choice. If you poll many FAMILIES rather then single people or couples with no kids, I believe you would get more that say 1300 is to small. Of course if you polled many FAMILIES back in the 60s with 2 kids, 1300 was probably just fine so yes it is more of a consumption based evolution that has driven us to be this way. So be it, I can deal with that.

Standard realtor fees vary. Your commissions are split in half, for most conventional brokerages your fees are 2.5-3% to have a listing agent represent you, and then you would offer a 2.5% coop commission (this is paid to the agent who represents the buyer). There are many other brokerages that have reduced commission structures as well. There are plenty of on line resources that can help you select a good agent. I doubt that selling the home is going to be challenging.

The living without debt question is a great opportunity. On the other hand having an asset that you have at a low rate, (assuming your rate is low) is nice as well. Possibly your current equity level may play into it as well. How far off are you from paying your current home off? At any rate you do have a challenging question and the advice from the other posters has been excellent. I do believe that in a few years, those who have large piles of cash will be presented with opportunities that will be staggering and not unlike those that were had in the early 80s.

[SD Realtor]

This is a tough call cvmom. Personally the area you live in is one of my favorites. I really like the Heights alot and if you put your home for sale, assuming it shows well and is priced correctly you would no doubt sell it quickly. Suffice it to say demand for that neighborhood is strong. Many of my friends who are engineers have paid off their mortgages by making double payments and they enjoy a debt free life. Nothing wrong with that.

As far as buying the home you like from the acquaintance that is not hard as you implied. You can have an attorney draw up the purchase agreement and make sure that all the bases are covered and run it through escrow.

A family of 4 in 1300 sf seems a bit tough to me but is definitely doable. For my own family there is not a chance in hell to be in 1300 sf but that is personal choice. If you poll many FAMILIES rather then single people or couples with no kids, I believe you would get more that say 1300 is to small. Of course if you polled many FAMILIES back in the 60s with 2 kids, 1300 was probably just fine so yes it is more of a consumption based evolution that has driven us to be this way. So be it, I can deal with that.

Standard realtor fees vary. Your commissions are split in half, for most conventional brokerages your fees are 2.5-3% to have a listing agent represent you, and then you would offer a 2.5% coop commission (this is paid to the agent who represents the buyer). There are many other brokerages that have reduced commission structures as well. There are plenty of on line resources that can help you select a good agent. I doubt that selling the home is going to be challenging.

The living without debt question is a great opportunity. On the other hand having an asset that you have at a low rate, (assuming your rate is low) is nice as well. Possibly your current equity level may play into it as well. How far off are you from paying your current home off? At any rate you do have a challenging question and the advice from the other posters has been excellent. I do believe that in a few years, those who have large piles of cash will be presented with opportunities that will be staggering and not unlike those that were had in the early 80s.

[SD Realtor]

This is a tough call cvmom. Personally the area you live in is one of my favorites. I really like the Heights alot and if you put your home for sale, assuming it shows well and is priced correctly you would no doubt sell it quickly. Suffice it to say demand for that neighborhood is strong. Many of my friends who are engineers have paid off their mortgages by making double payments and they enjoy a debt free life. Nothing wrong with that.

As far as buying the home you like from the acquaintance that is not hard as you implied. You can have an attorney draw up the purchase agreement and make sure that all the bases are covered and run it through escrow.

A family of 4 in 1300 sf seems a bit tough to me but is definitely doable. For my own family there is not a chance in hell to be in 1300 sf but that is personal choice. If you poll many FAMILIES rather then single people or couples with no kids, I believe you would get more that say 1300 is to small. Of course if you polled many FAMILIES back in the 60s with 2 kids, 1300 was probably just fine so yes it is more of a consumption based evolution that has driven us to be this way. So be it, I can deal with that.

Standard realtor fees vary. Your commissions are split in half, for most conventional brokerages your fees are 2.5-3% to have a listing agent represent you, and then you would offer a 2.5% coop commission (this is paid to the agent who represents the buyer). There are many other brokerages that have reduced commission structures as well. There are plenty of on line resources that can help you select a good agent. I doubt that selling the home is going to be challenging.

The living without debt question is a great opportunity. On the other hand having an asset that you have at a low rate, (assuming your rate is low) is nice as well. Possibly your current equity level may play into it as well. How far off are you from paying your current home off? At any rate you do have a challenging question and the advice from the other posters has been excellent. I do believe that in a few years, those who have large piles of cash will be presented with opportunities that will be staggering and not unlike those that were had in the early 80s.

[SD Realtor]

This is a tough call cvmom. Personally the area you live in is one of my favorites. I really like the Heights alot and if you put your home for sale, assuming it shows well and is priced correctly you would no doubt sell it quickly. Suffice it to say demand for that neighborhood is strong. Many of my friends who are engineers have paid off their mortgages by making double payments and they enjoy a debt free life. Nothing wrong with that.

As far as buying the home you like from the acquaintance that is not hard as you implied. You can have an attorney draw up the purchase agreement and make sure that all the bases are covered and run it through escrow.

A family of 4 in 1300 sf seems a bit tough to me but is definitely doable. For my own family there is not a chance in hell to be in 1300 sf but that is personal choice. If you poll many FAMILIES rather then single people or couples with no kids, I believe you would get more that say 1300 is to small. Of course if you polled many FAMILIES back in the 60s with 2 kids, 1300 was probably just fine so yes it is more of a consumption based evolution that has driven us to be this way. So be it, I can deal with that.

Standard realtor fees vary. Your commissions are split in half, for most conventional brokerages your fees are 2.5-3% to have a listing agent represent you, and then you would offer a 2.5% coop commission (this is paid to the agent who represents the buyer). There are many other brokerages that have reduced commission structures as well. There are plenty of on line resources that can help you select a good agent. I doubt that selling the home is going to be challenging.

The living without debt question is a great opportunity. On the other hand having an asset that you have at a low rate, (assuming your rate is low) is nice as well. Possibly your current equity level may play into it as well. How far off are you from paying your current home off? At any rate you do have a challenging question and the advice from the other posters has been excellent. I do believe that in a few years, those who have large piles of cash will be presented with opportunities that will be staggering and not unlike those that were had in the early 80s.

[SD Realtor]

This is a tough call cvmom. Personally the area you live in is one of my favorites. I really like the Heights alot and if you put your home for sale, assuming it shows well and is priced correctly you would no doubt sell it quickly. Suffice it to say demand for that neighborhood is strong. Many of my friends who are engineers have paid off their mortgages by making double payments and they enjoy a debt free life. Nothing wrong with that.

As far as buying the home you like from the acquaintance that is not hard as you implied. You can have an attorney draw up the purchase agreement and make sure that all the bases are covered and run it through escrow.

A family of 4 in 1300 sf seems a bit tough to me but is definitely doable. For my own family there is not a chance in hell to be in 1300 sf but that is personal choice. If you poll many FAMILIES rather then single people or couples with no kids, I believe you would get more that say 1300 is to small. Of course if you polled many FAMILIES back in the 60s with 2 kids, 1300 was probably just fine so yes it is more of a consumption based evolution that has driven us to be this way. So be it, I can deal with that.

Standard realtor fees vary. Your commissions are split in half, for most conventional brokerages your fees are 2.5-3% to have a listing agent represent you, and then you would offer a 2.5% coop commission (this is paid to the agent who represents the buyer). There are many other brokerages that have reduced commission structures as well. There are plenty of on line resources that can help you select a good agent. I doubt that selling the home is going to be challenging.

The living without debt question is a great opportunity. On the other hand having an asset that you have at a low rate, (assuming your rate is low) is nice as well. Possibly your current equity level may play into it as well. How far off are you from paying your current home off? At any rate you do have a challenging question and the advice from the other posters has been excellent. I do believe that in a few years, those who have large piles of cash will be presented with opportunities that will be staggering and not unlike those that were had in the early 80s.

[cvmom]

Wow, I knew I would get good advice here. I am amazed at the collective intellect and experience represented on this board. Still on the fence, though…we are working through the decision process, and you have been very helpful. Thank you!!

[cvmom]

Wow, I knew I would get good advice here. I am amazed at the collective intellect and experience represented on this board. Still on the fence, though…we are working through the decision process, and you have been very helpful. Thank you!!

[cvmom]

Wow, I knew I would get good advice here. I am amazed at the collective intellect and experience represented on this board. Still on the fence, though…we are working through the decision process, and you have been very helpful. Thank you!!

[cvmom]

Wow, I knew I would get good advice here. I am amazed at the collective intellect and experience represented on this board. Still on the fence, though…we are working through the decision process, and you have been very helpful. Thank you!!

[Author]

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