My parents are looking into buying a house does anybody have any advice for them?

For example, with all this inflation wil it be cost effective or what?....In the Seattle area...


I have no idea what advice to give them so any advice would be good.


They own a house in california but they bought it cheaply years ago.


So any help would be appreciated


ThanksMy parents are looking into buying a house does anybody have any advice for them?
First of all, are your parents planning on selling their current property in California? The property value has most definitely increased over the years. The smart thing to do would be for them to actually evaluate how much house they need. Most older buyers tend to downsize, and keep things on one level for ease of mobility as they get older, so that is a consideration too.





The next step would be to try and find a property that they could pay cash for to eliminate the need for a mortgage.





If they want to live more rurally, it would actually be their best option, in my opinion. Buying a lot, and building a small cabin/home (like the pre-fab ones at Home Depot or Lowe's) would be most cost effective. If they aren't into the rural scene, they might consider a one level condo or town home in their price range.





The main thing is not too rush into buying a home, they need to find the best set up, location, and cost for them.





I have had clients who have sold their California property for $300,000, and bought their primary home here in TEXAS and then had enough funds to purchase two rental properties to supplement their retirement income. I am not familiar with Seattle prices, but the advice still holds. Try to encourage them to not buy too much house, and to really evaluate what they want at this stage in their lives.My parents are looking into buying a house does anybody have any advice for them?
Moving from California to Seattle might put them at an advantage as there are still some strong markets in this state, particularly in parts of the San Francisco Bay Area, where I practice.


There are many good search sites like Realtor.com and search sites sponsored by individual companies. My company Windermere has one at www.windermere.com.


Their best bet is to get a recommendation for a good local agent who knows the ins and outs of that market. But they should continue to educate themselves as well.


Since they have owned their California house a long time, they might have some capital gains issues, but the combined exclusion for a married couple is $500,000 and that is on the gain, not the gross sales price.


Feel free to contact me or have them contact me.
even with your extra information, this is too broad of a question...
My encouragement would be to sell the house they are in first before buying anything else. It is a buyers market right now. The interest rates are great - the lowest in years. But, selling is getting harder and harder. Unless they can afford two mortgages I would encourage them to sell first, buy after.
The most pertinent information I came to discover through my home purchases is 'Location, Location, Location'. Most times, you can get a home below market value based on the location, but base your purchasing decision on the potential of that location.
If they have a ton of equity in their home, it might be a great income strategy for them to hold onto that house, rent it out, and use some of the equity to buy the new house in Seattle. It's a pretty loaded question but there are some excellent tax advantages (as well as income) to renting a property and in this market it will be more profitable to hold onto it.


p.s.


You're fantastic for trying to help them with this.