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A realistic look at buying a smaller home in today’s Foothills market – from pricing to competition.

Downsizing can be challenging, especially if you’ve lived in your current home for over twenty years. You’ve likely grown used to a certain amount of space and the features you love, and not every aspect of your home can be replicated in a new one. While it’s natural to hope for a house that’s just like your beloved home—only smaller and without stairs—the reality is that your next home will probably be a different type of property. And that’s perfectly okay! The key is to approach your search with realistic expectations.

If you’re looking to truly downsize, your new home may be half the size of your current one—or even smaller. That price range often puts you in competition with first-time buyers or step-up buyers working toward their “forever” homes. Smaller homes are often transitional properties, meaning they may not have been extensively remodeled or maintained in the same way as your current home. Even if cosmetic updates have been made, major renovations or added square footage may be lacking and you may have a mix of updates that don’t always flow together. Most downsizing buyers prefer a move-in-ready home, but it’s wise to be prepared for minor updates to make the space feel truly yours.

Despite these challenges, downsizing can put you in a strong position as a buyer. Smaller homes tend to attract more competition, but downsizing buyers are often financially stronger than first-time buyers. If you’ve already sold your current home, you may be able to make an all-cash offer or put down a large down payment, which can make your offer stand out. Your experience as a homeowner is another advantage—sellers often feel more confident knowing they’re dealing with someone who understands home maintenance and appreciates a property’s condition.  With a clear plan and a bit of flexibility, downsizing can be a smooth and exciting step toward the next chapter of your life. 

Kari Carson

DRE #01903828

(818) 424-5537

kari@karicarson.com

Neighborhoods Served: La Canada Flintridge, La Crescenta, Montrose, Glendale, Pasadena, Eagle Rock, Highland Park, Greater LA area

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“I’ve noticed that some houses in the neighborhood are selling right away for over asking, while other houses that seem just as nice are sitting. Why is this happening?”

During the pandemic, the buyer demand was so high that a seller could practically just post a sign in their yard and receive multiple offers, regardless of how the home was presented or priced. Most buyers wanted to get into a home so badly, that they were willing to overlook common flaws or compromises. While the demand for our Greater Los Angeles communities is still high today, buyers have gotten over their fear of missing out and are now willing to be patient and wait for the right house. Once they find it, they may offer quickly and bid high, but they aren’t going to move with any kind of urgency unless they are worried about losing the opportunity to another buyer. This makes strategic pricing especially important, as sellers need to understand specific features that can affect the overall value of a property when determining their list price. 

In highly desirable neighborhoods like La Canada Flintridge, as the list price of a home goes up, features that wouldn’t matter for first time homeowners become that much more important. Take for example the size and configuration of the yard. If your home is 3,000 sq ft or larger, it is likely that your buyer may be trading up from their starter home. They are moving specifically because they lack something in their current home, and that applies as much to the outdoor living areas as the indoor.  Something as simple as the yard being larger on the side than in the back can affect the home’s value. How private is the lot? Buyers often want a pool, but they don’t want to sacrifice all their outdoor yard space to accommodate one. How deep is the setback of the house on the lot? Most buyers want a large backyard, but they don’t want their front door right at the street in order to achieve that. The location of the access to the yard from the house is also important, as many buyers envision themselves moving to the main outdoor space directly from their family room or kitchen.  The ideal lot gives a buyer privacy from their neighbors and the street, low maintenance but mature landscaping in all areas (without sacrificing trees and greenery), and multiple defined outdoor areas for different uses. Homes may feature areas for a pool or water element, an outdoor kitchen and dining area, a firepit, and a flat grassy or landscaped portion for pets and children. Houses that are missing a key element of a typical buyers’ wish list will likely take a bit longer to sell. In this market, every aspect of the property matters, so make sure you carefully discuss the best pricing strategy for your home with your Realtor before listing. 

Kari Carson

DRE #01903828

(818) 424-5537

kari@karicarson.com

Neighborhoods Served: La Canada Flintridge, La Crescenta, Montrose, Glendale, Pasadena, Eagle Rock, Highland Park, Greater LA area

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Buying a house is generally considered one of the top three most stressful events in a person’s life (behind death of a family member and loss of job), so it can easily put a strain on even the most solid partnerships. It is very common for one partner to feel that they have to move forward on a house that they don’t love in order to make their partner happy, which often results in a cancelled escrow and frustration all around. Here are some tips to avoid this scenario:

See houses together. Even if one partner has a lot more free time than the other, it is extremely important that you see houses at the same time rather than one person “weeding out” unwanted houses on behalf of the other. Seeing homes that ultimately don’t work is not a waste of time! It is actually an important part of the process because it enables you to better recognize the houses that could actually work for you. I recommend seeing the full range of properties in your price range to get a better understanding of the value in the neighborhood and to learn more about what you are both willing to compromise on. 

Agree on location. If the perfect house in your ideal location is out of your budget, you need to make the decision together to either compromise on the house, or to consider other neighborhoods. Take the time to drive together through any areas you are considering and get a feel for where you will be shopping, where your kids would be going to school, ect. If you have any concerns about safety, do research online ahead of time and drive through at different times of day.  This should all be done before you consider making an offer on a house. Come to an agreement about how long you’d like to stay in your home and whether you would be comfortable living in a second-choice area with the knowledge that you are working towards trading up in the future to a forever house in your favored location. 

Research Renovations ahead of time. I’ve been in many situations where one partner decides they want to buy a “fixer” and tries to convince the other partner that they can live in the home while doing a major renovation. If you are seriously considering this scenario, you should have a detailed discussion about what type of remodeling your budget and sanity allows for. Don’t make assumptions about the price or timeframe for completing work– make sure you fully research your options ahead of time. And keep in mind that unless you are using a construction loan, which requires very specific documentation and timelines for completing work, you cannot simply tack on an additional $40,000 to your home loan to pay for remodeling. You’ll need to have a plan for accessing funds to pay for the work after you close on your home. 

By communicating openly, exploring homes together, and agreeing on priorities ahead of time, couples can turn the stress of house hunting into a shared journey toward finding the right home.

Kari Carson

DRE #01903828

(818) 424-5537

kari@karicarson.com

Neighborhoods Served: La Canada Flintridge, La Crescenta, Montrose, Glendale, Pasadena, Eagle Rock, Highland Park, Greater LA area

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“My agent is recommending I have inspections done before I put my house on the market. Am I required to do this?”

The short answer to this question is no – you are not required to have any inspections completed prior to listing your home for sale. As a seller, you’ll have to disclose any information you are currently aware of that may affect the material value of the property, but it is not your responsibility to actively investigate and identify additional defects that may exist.  If you already possess written inspection reports or estimates, you’ll have to pass those along to your buyer. The same is true for any information that has verbally been shared with you by inspectors or vendors and any existing defects at the property that you are aware of but have not yet investigated. 

There are several reasons why Realtors might advise sellers to have inspections completed prior to going on the market. Knowing the current condition of your home can help you to better price the house for an “as-is” sale, and may reduce the chance of surprise inspection items blowing up your transaction during escrow. Some sellers are happy to have the opportunity to fix repair issues in advance to minimize buyer nerves during the inspection process. In extremely competitive situations, providing inspection reports up front can help to streamline the process and may encourage buyers to waive the inspection contingency in their offers. 

Despite these benefits, there can also be downsides to providing inspection reports to buyers ahead of receiving offers.  Inspection reports are often 50 – 100 pages and can be very daunting for buyers to read, especially if they are new to the process. Looking at a pre-existing report is a very different experience than talking with an inspector in person at the property. Inspectors are obliged to note in their reports any defects they find, regardless of how inexpensive the items may be to fix, and they typically do not include repair estimates. Buyers get a much better understanding of repairs when they can speak directly with the inspector to clarify what is considered a safety hazard, what is a typical maintenance item, and what is an “optional upgrade”. I work with buyers often and have had many situations where clients who would have otherwise submitted an offer decided against doing so because they were scared off by an existing inspection report. Overall, the decision to complete inspections up front should really be driven by your specific selling scenario and your goals for the sale. 

Kari Carson

DRE #01903828

(818) 424-5537

kari@karicarson.com

Neighborhoods Served: La Canada Flintridge, La Crescenta, Montrose, Glendale, Pasadena, Eagle Rock, Highland Park, Greater LA area