Or it could be Orinda, Montclair or maybe San Mateo. But the point is, my family and I are relocating back to the Bay Area. The hubby’s small company is doing great, but it’s based in San Francisco, and telecommuting is no longer working. We have to go back.
But don’t worry, the blog will go on as always. Guy will continue to be your local Realtor resource, and Mike, I’m sure, will continue to compulsively follow foreclosure data all the way to market bottom. I too will remain involved, reporting from your feeder market, which may add an interesting new dimension to the mix.
Guy and I have also teamed up with Realtor JoAnn Corriera, a ten-year veteran in our local market with an amazing reputation for honesty, integrity and getting the job done. We are fortunate that the blog generates many inquiries about buying and selling from readers, so she will help us get back to everyone in a timely manner. We may even coax her into blogging with us on the site. Still working on that one…
So now I get to play the role of delusional seller in front of you all and either sell or rent my big over $500K Somersett house that I have a less than 1% chance of selling in this market. And since we need to move in July/August, whatever we do needs to be done fast. This should be interesting.
BTW, yesterday was Guy’s birthday (ah yes, 1977, a fabulous vintage). Please join me in wishing him a happy birthday, so that I can feel less guilty about posting this a day late… 😉
BanteringBear
Good luck, Diane. I can’t say I’m surprised. What does surprise me, is when people relocate to Reno from the Bay Area, and actually stay long term. IMO, there is no comparison. Although a bit snobby for my tastes, I would pick Marin ten times out of ten over Reno. Aside from Reno’s proximity to Tahoe, and the outdoor opportunities that brings, I think there is so much more to do and see around greater SF.
I hope you are able to find a solution for your Somersett home. Perhaps you can be candid about how much you paid, and your asking prices for both selling and renting. I’d guess you will as you’ve never been shy about details. Thanks for creating as well as running a great blog, and I’ll miss you. I do hope you chime in from time to time. Again, good luck to you and your family.
Sincerely,
BB
DERRICK
The successes and downfalls that you experience can create who you are, and the bad experiences can be learned from. In fact, they are probably the most poignant and important ones.. I am glad to have met you DIane. Not only have you taught me valuable things about Real estate, You have also taught me to control my temper sometimes as well 🙂 :).. I wish you nothing but the best of luck in the bay area. I miss the bay area myself, perhaps for selfish reasons, either way I do miss it..
As you know I lived in santa rosa (sonoma county) for 7 years .. My 1st experience/taste of the california lifestyle you could say! I lived in Ny for 17 years before making the move. The wife and I still take small trips to S.F. now n then.. anyways… Diane I have always loved reading your blog, especially your posts, which is kind of sad :(. hopefully you will “chime” in from time to time. I wish you and your family all the best!
P.s. I’m always emotional in the morning 😛
DERRICK
oh yea.. Happy birthday GUY!.. You are taking Diane out for dinner right? 😛
Phil
Marin to San Mateo to Orinda? That is a lot of real estate to choose from!
I personally would choose a place close to work, but who knows if the work is close to Bart that can open up a lot of possibilities!
BB, remember the bay area is close to reno as well! And I go back enough to get my fill. One thing I never miss is all the people (I find people here a lot more friendly) and the congestion it brings. Then again Reno is not a that small. I wonder what a 500K home there is going to look like compared to the Sommerset home (the number one reason I chose to move here).
Congradulations on the company doing well and good luck, and I hope the home selling goes well. Updates on the selling process could make an interesting story.
smarten
I too am saddened to hear you’ll be returning to the rat race – it’s worse than ever [we still have homes in Saratoga/Los Gatos and regularly return so we’re able to experience the differences first hand], AND GETTING WORSE.
I’m assuming you’ll become a renter [that’ll give a new spin on some of your posts]? And exactly where [or does that play second fiddle to your husband’s job]? I know you say Marin County [figuratively], but you also say OR “Orinda, Montclair or maybe [even] San Mateo.” As you know there are some big, big differences [especially cost wise]. And of course if/when you become a homeowner AGAIN [if you do], with a median sales price in excess of $1M, prepare yourself for annual real property taxes of $1K/MONTH or more [thank you very much Proposition 13].
I can’t believe you would spend the time and effort you have in Reno becoming the agent you have simply to “throw it away” because hubby has a good job in San Francisco. Please pardon me in advance for sticking my nose in your personal life, but is it really worth it uprooting your family; throwing away your promising real estate career; taking a bath on your Somersett home; markedly increasing your cost of living; markedly decreasing your standard of housing; paying up to 9.6% more in state income taxes; simply because hubby can’t telecommute any longer? We must all determine the things in life which are important to us, but I have never been one to place “job” at the top of the list. And I’m sure you’ve considered this one, but your husband wouldn’t be the first to work [M-F] hundreds of miles away from “home” and commute on the weekends. Heck, just think of all the airline frequent flyer miles he’ll be able to accumulate [and the hundreds of dollars/month in bridge tolls or BART fares he’ll be saving]! There were many things that brought you from Cupertino to Reno. Are those same things that are drawing you back to the Bay Area? If not…
The best of luck to you Diane, whatever you decide to do and if it means selling or renting your big over $500K Somersett house, please let us know your lease/lease to own numbers before placing it on craigslist.
Nancy
I am sorry to hear you are moving back to the Bay area. I believe our real estate community has learned a great deal from your tech skills and perspectives.
Best of luck to you and your family and perhaps when your husband has grown his small company and he sells it for a great deal of money, you’ll once again move back to Northern Nevada.
I hope so.
Nancy
Mike Mueller
Diane – Yes I’m sure you’ll be missed. I’m not one to cry… Because you’ll be closer to me! Yeah! Move to Orinda – We’ll do Lunch! Have your people call my people.
DERRICK
I have to agree with smarten here.. Is it really worth it to move back to the bay area?
lets see.. Rediculous property taxes, and income taxes.
Sky high cost of living,( a downgrade from Reno if you ask me )
The traffic!! Oh god the horrific bay area traffic!!..
Ahh yes the people .. people in the the north-bay are very snobby and rude. Unlike Reno folks who are polite, know how to say thanks. hmm what else… earthquakes??! heh heh nevermind on that one..
you get the point.. either way we will all miss you diane..
MikeZ
Diane! You’re leaving us?!
Best of luck to you and your family. You will be missed.
Diane Cohn
BB, thanks for the encouragement. Here’s the virtual tour. I’ll have it listed on the MLS in the next day or so. The details: we locked the price pre-construction in Spring 2004. We closed for $744,000 in May 2005. We added some further upgrades and are into it probably $800,000. Zillow values it at $729,500. We’re starting at $750,000 because Zillow doesn’t know about our fabulous new backyard. We’ll see how the market responds and adjust as needed. As for renting, I am not a fan of this solution, but the other half isn’t thrilled about writing a big fat check at the closing table, so he wants to explore this option. I haven’t been keeping a close eye on the rental market, so I’ll need to talk to some property managers. Sure, it’d be great to get $3500 a month, but I’m guessing that $2500-3000 is more realistic. We’ll see.
Derrick, thanks as well. I must say you’ve always been great about getting our comment counts up, so thanks for that! Maybe if I knew how to short oil I wouldn’t have to move. And yes, Guy already did take me out for his birthday… how did you know?
Phil, thanks, we’re trying to stay within a certain radius of the SF financial district and find excellent public high schools for the kids (which is why we can’t live in the City itself… no budget for private schools).
Smarten, yeah, not an easy decision for sure. But there’s a lot of family stuff buried in there that I can’t really go into. The bottom line is that even though I’m giving up what I’ve done here, it is a good decision for us. And who knows? I may be back in a few years in that Incline Village lake front house I’ve always dreamed of, and we could be neighbors!
Nancy, thanks for your kind words. And yes, I may be back.
Mike, LOL, my people will be in touch.
Everyone, don’t forget to wish Guy a happy birthday. C’mon, show some love! 😉
Phil
Happy B-Day Guy!
Better late than never I guess.
BanteringBear
“As for renting, I am not a fan of this solution, but the other half isn’t thrilled about writing a big fat check at the closing table, so he wants to explore this option.”
You’re a smart woman. Renting is a terrible option for such a house (vacancy, maintenance, wear and tear, etc.). The hubby is a businessman, so he should realize that writing a check at closing is a financial win vs. writing a smaller check each month, for years, to subsidize somebody else’s shelter. The market is NOT going to turn around in the near future. IMO, best to cut your losses and unload that thing pronto.
Allen Murray
Good luck Diane. Not too many people make the migration back to the socialistic Republic of California once they have left, but it sounds like you have some special circumstances. I think we all have learned plenty from this blog that you started, and you will be sorely missed. Maybe you’ll be back to Reno for the next boom???? I have a question if its not too personal. If the real estate market here wouldn’t have taken a digger and you were making money hand of fist, would you still be moving? Happy birthday Guy, carry on the torch.
Josh
Diane,
This blog helped me decide to move to Reno, where to look, and what to buy. I rarely post but read it daily. Everyone has such great input, and I am very sorry to hear that you are leaving.
Having moved form the Bay area and working from home with occasional travel (Sales exec) I always breathe a sigh of relief as I get back to Reno. The traffic, people, and bustle no longer are worth they effort. What little value is derived in activities is negated in taxes, expenses and sitting in my damn car IMHO.
Anyhow, good luck, I hope the blog will continue to live on in your absence. We’ll see.
Happy Birthday Guy!
Josh
ThomasV
Were you serious when you said now you get to play the role of delusional seller?
You closed in May, 2005. So you absolutely nailed the top of the market.
Everybody knows the market in Somersett has gone nowhere but down since May of 2005, many houses showing a 25% decline in value since ’05. Many of them have been identified here on this blog. Is this the kind of “you have to price it at the bottom of its competition if you want to be serious” that you have advised sellers over the past two years?
Can you refer us to the comps you are relying on to support $750K?
Rudy from Trulia
Hi Diane!
You gotta do what’s best for the family right? I’m glad Ted’s new business is doing well. So will we see a new blog from you in the Bay Area? Will you continue to sell real estate?
Happy belated b-day Guy! I’ll have a cerveza in your honor tonight 🙂
I look forward to seeing you both this summer at Inman.
Till then, stay well.
Rudy
Social Media Guru at Trulia
Paul
Hey Diane, really sorry to hear that you’re leaving us. My vote, for what its worth, is Lafayette or Orinda. If I was moving back to the Bay it would definetly be one of those two towns. More affordable than the peninsula or Marin, with a nice semi-rural feel. For those on the blog who can’t understand why anyone would move back to the Bay Area from Reno let me offer a few ideas. 1) There’s alot to do. Great shopping, professional sports, world class restaurants, museums, music etc. 2) If your company earns its income in CA, you’re already paying the 9.6% tax even if you live in Reno. 3) World class medical care – if you needed surgery would you rather go to UCSF, Stanford, or Renown (AKA Washoe Med)? In California, when you register your vehicle, it is registered for a year, period. You won’t be pulled over by a vindictive Reno cop and told that your registration is “suspended” [ your insurance company may be reporting the wrong VIN number to DMV (this happened to me twice this year and to ALL of my neighbors)] your licence plates are going to be taken and/or your car towed. 5) Property taxes are more stable than Nevada for those who buy and hold and not subject to five-year re-evaluations. Let us know your thoughts.
NoLube
Anyone want to join the dead pool on 8430 Castlehawk? The most recent sold comps on the street are 5-6% (including Diane’s client) under original 2005 prices. The REO on the block is still listed at more than 12% below. So a sales price (maybe) between $650,000 and $700,000. I’ll take $666,666. Are you ready to bite THAT bullet?
I’m not trying to be rude or abrasive, as I have a lot of respect for you and the brand you have established, but were you absent on the day they taught economics in school? Your monthly nut is probably $5500 or so (mortgages, HOA, insurance, property taxes). New rent in a prime Bay Area school district will probably run you $4000 or so, based on a quick run through Craig’s List (and about $10,000 for first, last and deposit, before you write that check to settle up on Castlehawk). And you give up something like $8000 a month in Chase income (based on the 23 sides I remember you citing x $500,000 average sales price x 2% commission split – not sure how accurate this is, but at least in the ball park).
How about this stragegy – list your house and see what happens. Let your better quarter telecommute a few more months. If the only “need” to move in the next 2 months is to get the kids settled for the school year, get over it – kids have survived a mid year move as long as there have been schools. Not blowing the few hundred thou you look to be willing to sacrafice can buy a lot of high quality therapy for all of you.
I’m sure there is a lot of family baggage and extenuating circumstances I can only guess at, and again, no disrespect intended. But this seems like a poorly considered course of action from someone I have come to expect much more from.
Longman
How many times have we heard people buying into this falling market over the past two years, and now, say well it does not matter because we intend to live here for the next ________ (fill in 10, 15, 20 ) years. I really doubt Diane purchased her (overpriced) bubbled up Somersett McMansion 3 years ago expecting she would be putting it back on the market 3 years later. Life is uncertain, and this is what happens sometimes. Diane will be darn lucky if she gets out of this house losing only $50,000.
Longman
“list your house and see what happens….”
We all know what will happen. It will become submerged in the Sea of Somersett. As of tonight, there are 63 houses in Somersett listed between $500K and $900K. How many have a pending offer?
None.
Between 500K and 600K there are 10 listings. No pendings.
Between 600K and 700K there are 21 listings. No pendings.
Between 700K and 800K (Diane’s range?) there are 22 listings. No pendings.
Between 800K and 900K there are 10 listings. No pendings.
There is not a house with an offer within $200K, up or down, of Diane’s asking price.
I think the other half better get used to the idea of writing a big check.
DERRICK
I hate to sound rude, considering how much I/we will miss you diane.. I have to ask however, How did you ever come up with a 750k price tag on your house??
mid 2005 was the worst time to buy, and everyone knows prices are considerably lower than prices paid in 2005.. I’m sorry it just doesn’t make any sense to me.. So you put about 50k into the house, and are in it at about 800k..
usually you only get back 25-40% of the upgrades you put into a property.. that being said. I sincerely think you may have it over-priced by about 100k.. again I’m not trying to be rude or offend you, only saying that its a fact that home prices have gone DOWN since 2005, not up, no level, but DOWN.. by at least 25%.. hmmmm
smarten
Sorry Diane to write again on this subject, but your post has been bothering me all day. Please DON’T list your home for sale at ANY price. Here’s why.
A couple of weeks ago you wrote an article in the RGJ about fines and homeowners’ associations because you and your husband didn’t put in landscaping within the maximum alotted time. Your admitted excuse was times were tough and you/your husband simply didn’t have the money [the same lack of money that would be represented in a check your husband’s allegedly going to write at C.O.E. because sales proceeds may be less than outstanding encumbrances/costs of sale]. In response to your article, don’t you recall the masses that vilified you on RGJ.com? The public was brutal on you [“if anyone should have known better, it was Diane the realtor”].
A couple of months ago you wrote another article in the RGJ where you blasted the delusional sellers out there [96% of all listings simply AREN’T going to sell. What about your home is going to become one of the 4%?]. You told everyone how you were able to negotiate a sales price that was some $143K LOWER than a delusional seller’s asking price [remember]?
In today’s Somersett market, for many of the reasons that have already been voiced, you simply CAN’T list your property at ANY price that WON’T be described as delusional [I think you know this]. And once you do, it’s going to get picked up by the RGJ. And then you think you were the brunt of negative public comment over your homeowners’ piece? You haven’t seen ANYTHING; you’re going to be publicly roasted alive!
Or maybe some agent who is jealous of your success will come in with an offer that’s $143K LESS than your asking price. And when you and your husband turn down the offer…
I’m sorry Diane, I can see the article in the RGJ already.
Besides, if you and your husband couldn’t afford landscaping, you can’t afford to pay out of pocket at the close of escrow unless your husband has hit it big time. And if he has, you should be looking for property as we speak in Montreux or Incline Village.
Whatever loss you and your husband will realize by renting your home for less than its monthly debt service [and it WILL be less], is going to look like peanuts compared to the loss [not only in dollars but reputation] if you put your home up for sale in this market!
I haven’t seen your home so I can’t give you my opinion of d fair market rent, but I’m guessing it’s going to be in the range of $1,800-$2,200/month. If you really have to get out of town next month, I say offer it for rent on craigslist at the lower end of the rent spectrum just to get it rented [and I have an idea of a recently married couple currently living in Sparks that might very well be interested]! Take the tax write off [which will ease some of the pain of negative cash flow]; wait out the market [even if it takes years]; and who knows, maybe you’ll come back home to roost and you’ll already have a home? If not, I’m sure Guy will help you sell once the market turns.
I’m willing to help you with renting your home and I suspect Allen Murray and some others on this board are willing as well.
I think you really need to play out all of the ramifications of this decision to the nth degree. But whatever your ultimate decision, I wish you and your family the best [and NO, I’d never choose the San Francisco East Bay over the Tahoe basin]!
Oh, Happy Birthday Guy!
SkrapGuy
Interesting comments Smarten. I see that Diane wants to rent the house for $3500 a month. I know you are a Craigslist watcher, Smarten, and generally well informed about the local rental market, and I wonder what you think of the $3500/mo. asking price. Seems a bit rich to me.
The consensus that seems to be emerging here is that $750K is a pipedream given the current state of the market in the “Sea of Somersett” and the market as a whole.
BB suggests that Diane take the hit now, move on, and don’t go into the landlord business. But what if the hit is going to be around $130K-150K?
Maybe it does make sense to die a slow death rather than a sudden execution and become a landlord? But what if the monthly shortfall is around $2,000?
Does it make more sense to bleed about $2000 a month, which means that you have to add $2,000 a month to your monthly outgo. All the while riding the market down? As Longman above points out, Somersett is awash in houses in Diane’s price range, and none of them are selling. If only half of those “sellers” are serious, how can prices not fall from here? Diane could well feed this house $25,000 a year, all the while it’s value continues to drop.
Damn good questions.
On a personal note to Diane, I wish you and your family all the best in your new venture.
KB
Can’t you people leave the poor lady alone, she is making a decision that affects only her and in saying goodbye all she gets is people telling her she is making a bad decision. Get over it, she is market savvy enough to know everything everyone is telling her, and she does not need the disrespect. Moving is not an easy decision and I am sure it is not one she came to easily.
She is nice enough to host a site where the rest of us losers go to everyday. Lets cut her some slack. Best of luck.
BanteringBear
My position is take the hit now because things are set to get much worse. There’s A LOT of downside risk left, IMO, and cutting the cord now will look golden in hindsight. Everybody knows that there hasn’t been much capitulation in that price range and when it happens, look out below. No matter what the hit is now, it most certainly beats hemorrhaging $3k+ per month, AND riding the market all the way down.
smarten
SkrapGuy asks “Does it make more sense to bleed about $2,000 a month, which means that you have to add $2,000 a month to your monthly outgo?” In this market I believe the answer’s yes.
As a landlord Diane will be able to use the passive losses to offset all the extra money her husband will be earning from his business. So in the short run is Diane going to bleed each month because of Somersett? Yes. But come the end of the year, the bleeding will be washed away [at least for income tax purposes]. Plus don’t forget the depreciation which will reduce even more of hubby’s additional income for tax purposes. So when everything’s said and done, the real out of pocket loss may be lower than it looks at first blush.
Even if Diane’s yearly losses are more than the passive loss maximums [although being a real estate professional, she should be able to write them all off], she’ll ultimately be able to write them all off because the excess loss operates as a carry forward [even after sale] and will eventually be recouped.
As to fair market rent, recall that I have stated that in all of Reno, the absolute top of the rental market is about $3,500/month. There have been several Montreux rentals I’ve called to Tom’s attention available between $3,000-$3,200/month. I also recall a couple of 5,000 square foot Somersett Toll Brothers homes offered for rent at a little over $2,000/month. I’m sure Diane’s house is nice, but is it this nice?
As I said, IMO Diane should become a landlord.
Marla
Man, I have a hard time contemplating coming out of pocket around $2000 a month on a depreciating asset. It seems this situation really puts Diane in the position of having to decide which of the competing points of view espoused on this blog she agrees with. Does she agree with BB and RI and MikeZ and the others who say we are still a long way from the bottom? If so, it seems to make no sense feeding a depreciating alligator every month that is just going to be worth less 3 years from today than it is now. Or does she agree with Smarten and Allen who say the bottom is at hand? In which case it might make sense to rent. But, I think Smarten and Allen also both say that when the bottom is reached fairly soon, prices will likely just stagnate for a quite a while. So Diane could end up feeding an alligator that is not depreciating, but also not appreciating.
Anybody got a good crystal ball they can loan Diane?
Reno Ignoramus
Diane, as your very first regular reader and commenter, I have to say you have accomplished what no other realtor in Reno has with this blog. You created a place where competing opinion was welcome and encouraged. You have created the finest place around for people to get accurate and honest information about the Reno market. You deserve big kudos. I am sure Guy will carry on the “no spin” tradition. He has an advantage that you never had. He knows what he is getting into. He knows how tough this crowd can be. You had to blaze the trail. Good work, my friend.
I see the peanut gallery has been aroused by your thread. I have no doubt you will make the right decisions.
Reno Ignoramus
Not to divert the conversation from the fascinating discussion of Diane’s personal life and finances, but did you all see that Diane has the Caughlin house property in escrow?
Wouldn’t it be great if Diane could close escrow and earn that commission on her way out of town? Let’s all think good thoughts about that.
Now, if she could just get that red barn into escrow………
MikeZ
Diane. Solution. Two words.
Jingle mail.
Future Buyer
Diane, Don’t listen to anyone–you need to do what is best for you and your family. My two cents though–the rent is high. We are renting a 3100 sq.ft. house on a half acre in Arrowcreek (granted we are not on the golf course) for $2395. The rent was the BEST deal I could find but check out Craigs list–you may want to go under 3k to be competitive.
3 Wombats
I have to give props to Diane for being willing to be this open and honest with her personal life. Good luck and thanks for the great education in Reno real estate, we will miss you!
This blog is addictive.
Moving is always stressful even when it is for the right reasons. Having moved this year for a job we faced the same choice, sell at lower than we would have really liked or rent long term and wonder what the market would do. It’s a tough choice.
John Newell
Diane,
Thank you for creating such a valuable blog. I read it regularly for quite a while before I ever commented, and I think it is by far the best such “community” in which I have ever participated. I am certain that Guy will carry on quite well (happy belated birthday to Guy, by the way), but you will be missed. I wish you and your family luck, and I hope your move goes well.
And if you pardon the intrusion, I want to suggest that you do not try to manage the property yourself if you decide to become a landlord. In representing tenants, we see more problems (on both sides) with rentals managed by owner/landlords, especially absent owner/landlords, than we see with rentals managed by property managers. Also, when problems occur (and they will), it is always better to have a local agent to deal with them rather than having to drive or fly over yourself. Now, that is not to say all property managers I heave dealt with are competent, but there are many good ones out there, and I suspect you know quite a few of those already (the best property managers I have dealt with in Reno/Sparks are often realtors or brokers).
I suspect that you know all this already, and please forgive me if that is the case, but given what I have seen and been involved with representing tenants, I would never rent a property without having it managed by a third party, preferably someone who is experienced in property management.
MILLER
Diane,
Best of luck to you, and a true thank you for this addictive Blog!
I did want to throw out a quick bit of constructive criticizm on your virtual listing though…
First – BEAUTIFUL HOME!!! If my family and I didn’t already have a smokin’ rental in the Southwest Suburban area (and 2 dogs), I would probably be hitting you up for rent numbers…
Second – You have a picture of yourself above Guy’s name. Might want to fix that one…
Third – Happy birthday Guy!
Good luck Diane and I’m sure you’ll gleen what you need to from these comments and make the right decision for you and your family with your move. I’ve made that decision twice now in the past 5 years, and it’s not an easy one on any front, but I’m still convinced that the last one coming back to Reno was the best decision yet!
Have fun in all you do and we’ll expect you to continue to contribute if for no other reason to check in and keep the kids in line!
-MILLER
Todd Tarson
Wow… Diane… Good luck to you and your family.
Before I started RE blogging there were a few blogs that I wandered across that I immediately bookmarked… and your was one of them.
Of course I was initially partial because I grew up in the Truckee Meadows area, but you and your other contributors have given all the reason needed to continue to check in on a regular basis.
You have much to be proud of with your efforts and I consider you a leader in this realm. So once again, good luck to you with your future endeavors. And thanks so much for your contributions.
Happy birthday Guy… and please continue the fine work here at this blog. I wish you good fortune.
MILLER
Just to add to the rental discussion and CVA…
Looks like $2500 is the price point in Somersett for comparable homes:
http://reno.craigslist.org/apa/689749432.html
http://reno.craigslist.org/apa/708675782.html
http://reno.craigslist.org/apa/664624747.html
-MILLER
MKchick
Diane, I wish you the best of luck returning to the Bay Area.
It is hard for my family as well, since I get the calls weekly offering high salaries to move back, and absolutely zero job prospects here in Reno since we moved here last year from SF. I know we’re not the only Bay Area refugees in that position.
Thankfully, my husband still has his good job that we moved here for, and yes, we are in contract to buy a “no-character stucco box” in South Reno with unobstructed views of Mt. Rose and downtown. So I think we’re staying put for awhile.
As for renting your home, maybe you can talk to the builders in Somersett and see if they signed any contracts to build new construction in your neighborhood for new out of state buyers. Offer your place for rent while they get their house built — since right now, it is way cheaper to buy from the builders than a resale in that market.
Quite frankly, I think that would be your rental market, as I don’t see locals paying that much for rent unless it was that short term.
CBam
Best of luck in your Bay Area adventures. I have enjoyed the honesty you have shown as your understanding of the market has changed.
Rory
Having lived in Marin for 18 years, I’m laughing out loud! Not only is Marin, and the Bay Area the most overrated place to call home, the people are schmucks. Adios!
Gina
Happy Birthday to Guy, and good luck to you Diane.
Joseph Ferrara.sellsius
Good luck Diane and Ted.
Happy Birthday “Energy”!
Look forward to seeing you all at Inman’s party.
Don Cooper
I am sure you will be missed in Reno but the Bay Area is not a bad place to live.
Just as a note, I wanted to tell you how I ended up visiting the site: For the past few years we’ve been looking to buy something in Reno. In poking around on the internet I ran across your market update and was intrigued. Mostly these things are paens to how wonderful things are and how strong the market is. Your report was quite different — more nuanced and definitely more analytic. Unusual but definitely valuable.
I checked you out on Youtube and found your virtual neighborhood tours which were also interesting, informative, and innovative.
And then of course there was this site, which is very informative and helpful.
I just wanted to tell you how impressive you were. If you stay in real estate you’ll be an asset to wherever you are. And if you don’t I’m sure you’ll excel at whatever you do. Good luck!
downtownjunkie
Good luck Diane! Don’t worry about the comments-it’s your life so do what ya think is best:)
Gene
Dont do it!!! Stay in Reno Diana. I live in San Francisco and people are lining up to get out. Selling and cancelling leases etc. Gas here is $4.95 a gallon. Milk is $7.00 a gallon. I would reconsider. The Bay Area ecoomny is in the toilet. Be forewarned!!!!!!!The grass is NOT greener on this side of the hill.
Myrna the Minx
Orinda’s nice! Bummer! Seriously. We have to meet up for drinks before you leave. Glad to hear FOHBOH is doing well.
Myrna the Minx
Good Lord! I just read all of these comments and people need to back off. People make the decision they need to make with the information THEY have, not the commenters on their blog. Diane sets up and grow this wonderful space for you and this is how you return the favor?
D–If I could afford to live in downtown SF, I would do it in a heart beat. I love that town. Of course I would also do the same for Santa Monica or D.C. Quality of life is what its all about and everybody measures that quality differently. You go girl!
Diane Cohn
Everyone, thank you so much for your support and criticism (which I understand is constructive, so seriously, I am appreciative). As you know I have always valued transparency on this site, but please understand if I don’t go so far as to post my tax returns online. I will tell you as much as I’m comfortable. After that, I ask that you respect what’s left of my privacy.
BB, still working on the other half. Soon I’ll be pointing him to this thread.
Allen, good question. But the answer would still be yes.
Josh, yeah, we always breathe a sigh of relief coming back this way too. It’ll be a bummer to give that up, c’est la vie.
Thomas V, we locked the price in early spring 2004, so technically it is 2004 pricing. As the home was being built, it kept going up in value. We closed with instant equity. In 2006 it comped at over $1 million dollars. So at $750,000 we’ve already take a 25% hit, and the final sales price will determine the final hit. Additionally, I am a co-owner on this property, which means I am not the only one who determines initial pricing. I have been reminded that a Realtor’s job is to get the best possible price, so the price you see is a compromise, a decision to test the market. As for comps, our neighbor’s house with the same floor plan sold for $692,500 on a smaller lot with inferior views and backyard landscaping. A similar home on the next street, with two fewer rooms, 1.5 fewer bathrooms and inferior lot size/views sold for $679,000. Yes, the smaller foreclosure down the street at $589,900, with the dead front and back yards is a concern. we will keep an eye on it and remain flexible.
Rudy, thanks. Drink a cerveza for me too!
Phil, thanks for the reminder that the Bay Area is not Hell.
NoLube, yeah, it’s a nasty bullet. But if we rent it out, I estimate our annual loss with mortgage, taxes and insurance to be $20K annually. And with repairs, maintenance, tenant damage, who knows?
Longman, we thought we’d be there 10 years. Things change. And there are a few Active/Pendings in Somersett that show in the MLS, but perhaps not on public search sites.
Derrick, Zillow values the house at $729,500.
Smarten, the hubby and are self-employed, which means we don’t get regular paychecks. Sometimes we don’t get paid when we should, and other times there may be an unexpected windfall. Timing is unpredictable. Money we had planned for the backyard evaporated when a business note went bad. Please don’t grill me on the details. Last year was a good year for me in real estate which meant we could finally complete our backyard, but we had to do it in stages. The public who vilified me assumed I was some snotty, rich, uncaring, evil-doing, Lexus-driving Realtor who deserved to burn in Hell for not following the HOA rules, regardless of the circumstances… they completely missed the humor, and they know nothing about me. Why should I care what they think? But thanks for the help trying to rent my house.
SkrapGuy, thanks and good points.
KB, thanks… your comments are a good reminder that sometimes housing decisions are about more than just investment.
Marla, excellent assessment. At heart I’m on the BB/RI/MikeZ side of the fence (oh, did I just say that out loud?)
RI, thank you, and thank you.
MikeZ, I’ll have to google that.
FutureBuyer, yes, honestly I was thinking $2500-3000 was more in line. But I swore after the juice bar I’d never have another job where people were calling me to fix their little broken equipment issues, so landlording isn’t for me.
Everyone else, it’s time for dinner. I’ll get back to the remaining responses as soon as I can. Thanks for reading and commenting. Your contributions are truly invaluable!
Lynne B
Good luck Diane, and do what makes you happy, you are young talented and resourceful, if your husband has similar attributes you will both do fine where ever you are!
Hubby
Hi everyone. I hope you’re all doing well. This is Diane’s “hubby”. Of course I’ve read Diane’s blog for years on the sidelines and gotten to know you most of you. I’m so proud of Diane for starting her blog, growing it and developing such a vibrant community. I’m glad Diane brought Guy on board last year too. He has added so much.
relocating buyer
hi diane and hubby, we will miss you. diane you have been so honest that we have grown to trust you. you have not sugar coated or tried to “spin” the current market, and buyers appreciate the candor. thank you for this forum. God Bless you, your family, and all that you do in the future.