| Good morning! This week we’re talking college towns, all-cash deals and the best time of year to buy a house. This issue of Money Moves was written by Aly J. Yale. | | | | Giving it the old college try | | | | Getty Images | What do you do when both rents and higher education costs are surging? You buy a house in a college town and adopt a two-birds-one-stone strategy. That’s what parents of many college-aged kids are doing these days, forgoing high-priced dorms and student apartments and buying local real estate instead. Sure, home prices aren’t exactly affordable right now, but in the long run, parents tend to win out. “The benefits are pretty straightforward,” Money’s Ingrid Case explains. “Your student can live with friends, who pay rent. That covers your child’s expenses, and it ideally covers the property’s expenses. At graduation, your kid leaves with a diploma and you’re left with equity in a home that, with luck, has appreciated during your child’s college career.” There are challenges, of course. Renting to college kids is no easy feat, and you can bet on some serious wear and tear over the years. You could also face tax complications — or even owe capital gains once you sell down the line. Still, most parents who’ve traveled this road are happy they did. “Our monthly cost was less than $500,” one mom said. “Rental income paid the mortgage for us — and covered the cost of our child’s room and board.” | | | | | | | | | | | | This week only | If you were hoping to buy a home this year, this week is the time — at least if you want the best deal. According to Realtor.com, the last week of September is the single-best week to buy a house. Buyers who purchase during this period — September 25 through October 1, to be exact — are poised to save over $20,000 compared to the market’s summer peak. They have more listings to choose from and face less competition, too. “This week historically has shown the best balance of market conditions that favor buyers,” Realtor.com’s report reads. “Inventory tends to be high, prices are below peak levels, demand is waning and pace of the market slows to a more manageable speed.” | | | | | | | | | | | | | | | | Cash offers are cooling off | | | | Shutterstock | Cash offers have been pretty common these past few years — particularly in red-hot markets where competition was stiff. It’s not too surprising. Cash has long held cachet with home sellers. It removes a lot of risk (there are no loan hiccups to worry about), and it generally means a faster closing, too. It was great for those with cash to burn, but for buyers stuck with financing their home purchase, it made for a challenging landscape, to say the least. Fortunately, times are changing. With inflation rising, cash offers have fallen by the wayside, giving financed buyers a fighting chance. Nationwide, cash offers account for less than a third of all home purchases — and in some metros, the rate is much lower. Oakland, California, for example, has just a 15% cash offer rate. San Jose, Seattle, Washington D.C. and Pittsburgh are similarly low. In Florida, though, cash still reigns supreme. West Palm Beach, Jacksonville, Fort Lauderdale and Orlando all have 40%-plus cash offer rates, while Nassau County, New York, outbests all four. There, a whopping 66.5% of all homes are bought with cash. It’s further proof of just how local real estate really is. | | | | | | | | | | | | We’re not in Kansas anymore | | | | Shutterstock | Thinking of revamping your bathroom? Depending on where you live, it may or may not be worth it. If you live in Kansas, for example, the move’s probably ill-advised. According to the New York Times, Kansas bathroom remodels cost nearly $24,000 — but offer a mere 43% return on that investment. That’s just $10,320 in resale value, if you’re keeping track. Nevada, Michigan, Utah and Pennsylvania come with similar returns. If you’re in Maine, though, remodel away. The Pine Tree State (yep, that’s its nickname) offers a whopping 89% ROI on bathroom renovations — adding about $22,710 to your eventual sale price. Want to see where your state falls? Check out the list. | | | | Happy hunting,  P.S. Spot a weird or unique home listing? Share it with me on Twitter, where I’m @alyjwriter, or via email at alyjyale@gmail.com. P.P.S. Have a friend who loves real estate or is looking for a home of their own? Please forward them this email or send them to the Money Moves subscription page. | | | | Money’s Essential Home Buying Resources: Fall 2022 | | | | | | This newsletter is free because Money earns a commission when you click or make purchases from the links in this email and on our site. We also receive compensation for some of the products and services featured in this message. Offers may be subject to change without notice. about how we make money.
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