Moving out of state? Where do i start?

Steve LaMothe • Feb 11, 2021

Steve LaMothe's advice when considering a move out of state.... He's done it 100's of times!

"Im FED up with California... I'm moving out of state. "


I hear this comment more and more these days and post covid-19 it has become an absolute RUSH of people leaving the state. The common thread amongst them all is that they were actually not planning on their exit right now. What has caused so many to exit sooner than expected? Cue  Covid-19 and CA shutdowns, it has strengthened their conviction to leave and not only that but employers have fully modified their stances on employees ability to work remote from anywhere! The VAST majority of moves since Covid have 100% been stimulated by Covid... Who would have thought? I anticipate this to become a real option for clients moving into 2021 and beyond and it's most certainly something to consider when you start thinking about your costs and quality of life.


This is our playbook for the great EXIT that we have succeeded so many times with. As an advisor it's important to me to do "more than" and to provide real value to our clients especially when undertaking a cross country move. From start to finish i want to help you walk in the shoes of people who have done this before and have fully succeeded and are LOVING IT! The craziest part.... Most are saving 10-25% on their yearly costs by moving WITHOUT sacrificing quality of life, these are not dumps they are moving to! So, you know you would like to entertain the idea but don't know where to start? Here is a blueprint. The great part about Elevate is that we have teams in almost every state in the country and have spent years studying, researching and building relationships in these areas so that our clients have on the ground people that they can trust. We streamline everything start to finish.


DECISION PHASE


STEP #1- DO THE MATH.

I am a financial guy, i like making the numbers fit and work. I highly suggest you look at what it actually costs you to live in california. Keep in mind it's not just "state taxes", ALL THE WAY down the list everything is more expensive in California. Gas, Groceries, your home insurance, car insurance, your HOA, water sewer garbage, literally EVERYTHING costs more. This is not anecdotal, i have reviewed monthly bills from multiple states with clients. Plain and simple CA is EXPENSIVE. It can cost upwards of 20-50% more when you add in housing costs to live in CA vs another state. So, step one find out what it costs you to stay because each day is opportunity cost.



STEP #2-WEATHER.

This is the BIG BIG hurdle i find with almost everyone. They say "i would LOVE to leave the state...BUT the weather". This is 100% true, we have amazing weather and it's absolutely gorgeous BUT are you willing to slave away working to have no time to enjoy that weather? What if there were other places that have great weather, beautiful landscape, and hand amazing quality of life by which you could like for almost 20% cheaper? You need to decide what climate you are Ok with, can you deal with "some" snow, Cold, humidity, ok with 6ft of snow, how about 200+ inches of rain OR my least favorite 100+ degree heat ALOT and zero rain. If there were any other states with CA weather i promise you with certainty California would be an empty place with millions less people.


STEP #3-YOUR BUDGET.

Of course, if we all had a million bucks we could select exactly where we want to go. Unfortunately for the rest of us, the budget will dictate much of our affordability and this typically directs us on where to direct the client. Most common budget to leave the state with is around 350-400k to purchase a home. The amazing part is, this buys A LOT OF HOUSE in most great locations in the country.... We will dig into this later.


STEP #4-WORK/FAMILY LIFE.

Another big hang up for most. I don't want to leave my family OR i can't leave and work from anywhere! Covid-19 has been the great equalizer here, many of our clients were not offered a work from home position but when they approached their company with the proposition the employers are so much more willing to offer this as a solution. Remember it's really hard for employers to find GREAT people so you have more power than you may think!



POPULAR STATES

Anecdotally here are the most popular states over the last 3 years we have moved people to. The great news is, Elevate has teams ACROSS the country and we can help you from start to finish here and in your replacement city!


#1- Idaho (by far the fastest growing in popularity) Known for great cities like Boise, Meridian, Nampa, Coeur d'Alene.

#2- Texas (You know Texas has been a go to for a long time) Austin has become less affordable, Check "hill country" outside austin, Killeen, Dallas.

#3- Arizona- Locations popular are Phoenix, Surprise.

#4- North and South Carolina- The most popular city in SC is Greenville (highly suggest googling it!)

#5- Tennessee- I believe this will move to the top spot in the next few years. TN is an INCREDIBLE city and has vibrant growth. Check out Memphis and Knoxville the pricing of homes are incredibly affordable and the quality of life is second to none.


Final Thoughts


The great CA exodus has ramped up dramatically and i do not anticipate this to slow down whatsoever with the increased cost of living and tax situation in California. Not one person "loves" having to leave their home state but they feel there are better opportunities for quality of life elsewhere.

I hope you find this article valuable. At Elevate Realty Group our mission is to "re-define the real estate experience" and when it comes to out of state relocation we 100% have created the most efficient process in the real estate space. From end to end we have this process dialed down to a science. Reach out to us today if you have any idea that you would like to try and move out of state, we have reams of information on how to do it!

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A Guide To Choosing the Perfect Agent to Help You This Spring

By Steve LaMothe • 19 Apr, 2024
You don’t want to face the busy spring market without a great agent. As we dive into the bustling spring real estate market, the landscape may feel familiar yet subtly different from the previous year. While inventory remains tight, there's a slight uptick in listings compared to last year, about 8% to 10%. However, amidst this flurry of activity, one critical aspect stands out: the pivotal role of selecting the right agent when buying or selling a home. The decision to buy or sell a property is significant, and the choice of your agent can make all the difference in ensuring you secure the best deal. So, what's the number one thing you can do to set yourself up for success in this process? It's simple: interview at least three agents. Feel free to watch the full message above or use these timestamps to direct you to various points in the video. 0:00 — Introducing today’s topic 1:30 — Use your network 2:30 — Do research 3:40 — Find well-reviewed agents 5:00 — Local provider network 6:30 — Wrapping up Don't hesitate to reach out if you have any questions or need guidance throughout the process. Choosing the right agent is the first step toward achieving success in the spring real estate market.

Unpacking the NAR Settlement: What It Means for You

By Steve LaMothe • 22 Mar, 2024
Navigating the changes in real estate after the NAR settlement. In the realm of real estate, recent headlines have sparked widespread discussion and concern. The lawsuit and settlement involving the National Association of Realtors (NAR) have led to rumors of disappearing real estate agents and the end of 6% commissions. Today, we dive deep into these developments to provide clarity and honest insights from both a licensed real estate agent and an experienced consumer perspective. Feel free to watch the full message above or use these timestamps that will direct you to various points in the video: 0:00 — Introduction 1:07 — The case in a nutshell 2:38 — The core issues 3:45 — Commissions aren’t fixed 6:43 — Issues with the system 7:35 — What will change? 9:38 — This will drive more value 10:32 — Wrapping up While sensational headlines capture attention, it's crucial to look beyond them and understand the reality of these industry changes. The settlement highlights the importance of transparency, negotiation, and value in real estate transactions. As we navigate these developments, our commitment to providing exceptional service and empowering our clients remains unwavering. For those considering a career in real estate or seeking more information on this topic, please reach out by phone or email today.

The top 10 things to do in Folsom!

By Steve LaMothe • 14 Mar, 2024
All things Folsom! Elevate is your Folsom real estate experts! Folsom, California, is a vibrant city with a rich history and an abundance of activities for locals and visitors alike. Whether you're a history buff, outdoor enthusiast, or looking for family-friendly activities, Folsom has something for everyone. Here are the top 10 things to do in Folsom, CA, that you won't want to miss. Being Folsom residents of course we absolutely LOVE LOVE it here! We wanted to share some of the best things about our beloved city.

Why Waiting To Buy a Home Could Cost You in the Long Run

By Steve LaMothe • 05 Mar, 2024
Here’s why it does not pay to wait to purchase a home in this market. We've officially entered springtime for Real Estate, and I've been repeatedly asked whether now is a good time to buy a home. Many buyers seem hesitant, and I believe it's worth addressing. So, is now the right time to buy a home? Imagine you were considering buying a home in early spring 2023 but decided to hold off until interest rates fell. Now, if you're entering the market this year with the same expectation, it might end up costing you substantially. Here's why: First, interest rates haven't decreased; they're averaging around 7%, and there's little evidence to suggest they'll drop significantly anytime soon. Second, home values have risen 4% on average since last year. So, compared to 2023, you could end up paying $20,000 to $25,000 more for a $500,000 property this year, with interest rates remaining the same. "Your primary residence gains value as an investment over time." Furthermore, consider the long-term vision when purchasing a home. While your primary residence isn't solely an investment, it significantly contributes to your net worth over time. Those who have kept their first homes often find themselves with substantially more wealth later on. The fear of buying now due to potential future interest rate drops or price decreases lacks substantial evidence. Don't let fear hinder your ability to build long-term net worth. Remember, the average net worth of a homeowner far surpasses that of a renter. Finally, we'll be hosting an event at the end of March featuring a trust attorney discussing the importance of trusts for your family and home. This is a free event, so keep an eye out for the invitation. If you have any questions or are considering buying a home, feel free to call or email us. We're always here to help!

The Impact of Rising Mortgage Rates on Buyers and Sellers

By Steve LaMothe • 13 Feb, 2024
Understanding 2024’s high interest rates & their market impact. As we delve into the implications of the current 8.5% interest rates, it's important to understand what's driving this surge and what it means for the housing market going into 2024. With buyer demand showing signs of a slow decline due to the rate hikes, let's break down the key factors at play and offer some advice for both buyers and sellers in this evolving landscape. In regions like Sacramento, the average mortgage payment has skyrocketed to about $4,000 a month on an average sale price of $450,000. This is a significant jump from just two years ago when payments hovered around $2,600 to $2,800. Such an increase has tilted the scale, making renting a more viable option for many unless a substantial down payment can be made to lower loan balances. Interest rates for 30-year fixed mortgages have hit a 25-year peak, with projections suggesting a potential rise to 9% in 2024. This trend aligns with the historical average of about 8.5% but comes as a shock to many who've enjoyed lower rates in recent years. The primary driver behind this surge is a stronger-than-expected economy, prompting the Federal Reserve to adjust borrowing rates to manage economic growth. "Whether you're looking to buy or sell, the key is to stay informed and prepared for the market's fluctuations." Recent Fed meetings have shown a cautious approach, opting to hold interest rates while assessing new economic data. A notably robust job market report indicates a thriving economy, which could lead the Fed to increase rates further in an attempt to curb inflation and regulate jobless rates, aiming for an unemployment rate between 4% to 6%. For sellers, the beginning of 2024 might be the optimal time to list your property, anticipating potential economic challenges ahead. Buyers, on the other hand, should focus on saving for a substantial down payment rather than counting on future refinancing opportunities. Despite the high interest rates, owning a home remains a worthwhile investment compared to renting.  As we face a period of high interest rates into 2024, understanding the underlying economic factors and planning accordingly can help us navigate these challenging times. Whether you're looking to buy or sell, the key is to stay informed and prepared for the market's fluctuations. For more insights and assistance with your real estate needs, feel free to visit our website or give us a call.

Elevate Concierge: A Stress-Free Property Transformation Process

By Steve LaMothe • 31 Jan, 2024
Elevate Concierge is here to help relieve the stress of selling your home. Embarking on a concierge remodel journey can be a game-changer, especially when it comes to selling a property. Elevate Concierge, a unique program, takes the hassle out of renovations, managing everything from planning to execution. Today, let's delve into a recent success story that showcases the power of Elevate Concierge. We took on the task of transforming a property left by the client's mother. The house was full of sentimental belongings, and the siblings were unsure about the next steps. Within two weeks, Elevate Concierge efficiently cleared out the property, auctioning, selling, and donating the belongings. This initial step alone relieved the clients of immense stress. With a budget of $21,000, we went on to perform strategic renovations, including new flooring in bathrooms and living areas, a fresh coat of paint, updated landscaping, and a rebuilt deck. "The concierge program is not just a promise; it's a proven reality." The transformation was remarkable, adding an estimated $70,000 in value to the property, all while keeping the cost at only $15,000. Elevate Concierge's approach not only enhances the property's appeal but also simplifies the selling process for overwhelmed homeowners. From managing the logistics of property clearance to executing strategic renovations, Elevate Concierge takes care of it all. If you find yourself overwhelmed with the prospect of selling a home, consider reaching out at 916-436-SELL or visit www.homesbyelevate.com.

Sell Smarter, Not Harder: The Art of Strategic Home Renovations

By Steve LaMothe • 18 Jan, 2024
Sharing lucrative projects you should take on when preparing to sell. Today, let's discuss a commonly asked question regarding selling houses: the necessity of making repairs and which ones are crucial. This topic is highly searched on Google, reflecting its significance. As one of the foremost authorities on home renovations in Sacramento, having completed around 550 concierge remodels, I'll provide insights into what repairs will help maximize your return on investment. Feel free to watch the full video or use these timestamps to browse specific topics at your leisure: 0:00 — Introduction 1:05 — What usually happens when preparing a home for sale 2:05 — Paint 2:38 — Flooring 4:03 — Decluttering 5:10 — Start preparing and planning before making a move 5:38 — A reminder 6:23 — Wrapping up If you have any questions about this topic, call or email us. We’re happy to help.

The Latest News on Interest Rates and Our Housing Market

By Steve LaMothe • 19 Dec, 2023
Essential insights into repair negotiations for home buyers and sellers. Today, let's delve into the intricacies of interest rates and dissect the implications of the recent Federal Reserve. In case you don’t know, the Fed decided to maintain, not raise or lower, interest rates. Despite all the hype in the market, you can’t give in to sensationalism. Let me explain. While I may not be a financial markets expert, I've dedicated considerable time to studying interest rates. The recent decision by the Federal Reserve to hold interest rates was somewhat expected, given the ongoing trend in the last several meetings. Surprisingly, the economy is proving more robust and resilient than initially anticipated. The stock market reacted dramatically to this news, with speculation now circulating that interest rates might significantly decrease next year, disrupting the status quo. However, it's essential to understand that these are predictions and probabilities. Several members of the Federal Reserve Committee predict two or three rate decreases in the federal funds rate next year. This rate influences short-term interest rates like those for credit cards and car loans but doesn't directly impact the 30-year fixed rate. Over the past few weeks, 30-year fixed rates have been consistently decreasing without the Fed lowering interest rates. This underscores that these mortgages are projections of future interest rates. If you're considering a 30-year mortgage, you'd only commit to it if you expect rates to remain stable or decrease. "It’s important not to give in to the hype." Amidst the internet hype suggesting an immediate rush into the market due to potential changes, it's crucial to maintain perspective. Multiple offers were not the norm before COVID, and even with current high interest rates, we are in a multiple-market environment due to low inventory. The speculation that sellers might be more willing to move in the future if interest rates moderate down to the 5-6% range could be a reality around 2025 or 2026. However, it's essential to approach predictions with caution, as unforeseen factors can shape market dynamics. If you're contemplating buying, selling, investing, or securing a loan, remember that we're here for you; just give us a call or shoot us an email. We wish you a fantastic holiday season!

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By Steve LaMothe • 04 Dec, 2023
Essential insights into repair negotiations for home buyers and sellers. In the complex world of real estate transactions, repair negotiations often become a critical turning point. As a seasoned Realtor with 12 years of experience, I've navigated thousands of repair negotiations, which are frequently the main reason deals fall out of escrow. Understanding what repairs a seller is obligated to make, differentiating between necessary and optional repairs, and comprehending the implications of repair negotiations are vital in ensuring a smooth transaction. Feel free to watch the full message above or use these timestamps that will direct you to various points in the video: 0:00 — Introduction 0:58 — The seller is not obligated to make repairs 1:15 — Lender required repairs 1:39 — Optional, deferred, and cosmetic repairs 2:01 — Repairs are negotiated 4:11 — Advice for sellers 4:33 — Advice for buyers 5:48 — Wrapping up Remember, if you have questions about negotiating repairs as a buyer or seller, or if you have any questions about real estate in general, please feel free to reach out to us by phone or email. We would be delighted to serve as your resource for all of your real estate needs.

Maximize Your Savings: 3 Proven Strategies for Financial Growth

By Steve LaMothe • 21 Nov, 2023
Here are three strategies to help you increase your financial growth. As we approach the end of the year, it's a perfect time to reflect on our financial goals and explore avenues to enhance our income. While our annual pie giveaway is just around the corner, today's discussion takes a slight detour from real estate to focus on increasing your rate of return. Join us as we delve into three strategies to maximize the potential of your savings and boost your monthly income. Feel free to watch the full message above, or use these timestamps that will direct you to various points in the video. 0:00 — Introducing today’s topic 1:20 — High-yield savings account 3:00 — Treasuries 4:00 — Bonds 5:30 — Wrapping up If you have any questions, don’t hesitate to call or email us. We’re always happy to help.
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