08/18/2019
Is it possible to buy a house in the Bay Area for less than $500,000?
I recently guided a first time home buyer through the purchase of a fix-up property in Bay Point, California for $418,000. The inside of this house was actually in good condition. However, the roof needed some repairs, the exterior doors needed to be replaced, and a new furnace and air conditioner were required. Also, the extra-large yard was overgrown with weeds.
Fortunately, the buyer has a contracting background, and he will be able to complete all the improvements himself.
We started the home search in Felton and worked our way through Boulder Creek, a fixer upper in East San Jose, Hayward, Oakland, and Martinez. Hollister was considered, but the buyer decided that it was just too far from his job sites. Offers were presented, but were overbid in multiple offer situations.
We settled on Bay Point, when we saw several attractive houses there priced below $525,000, and we discovered that the commute from the Valley Fair area of San Jose to that town was 1 hour and 10 minutes in clear traffic.
The buyer secured financing for less than 5% down payment, and his resulting monthly payment will be about what he was paying for rent in San Jose.