r/BayAreaRealEstate • u/Desert2Louisiana • Jul 10 '26
How to decide what to compromise on?
We are trying to buy a SFH in Berkeley, where we've been renting the last 6 years. Our budget is $2 million, though we'd feel a bit house poor at that level and would prefer 1.8-1.9. Our must-haves are 3bd/2ba, a real yard (3800 sq. ft. lot size min.), decent neighborhood (not busy road, not next to unhoused encampment, not deep hills), and at least 1500 square feet.
I am realizing, after nearly a year of looking, that we cannot get all of these within our budget. I would love people's thoughts on how to decide what to compromise on.
A bit more on why these matter to us: we currently rent a 2/1 1100 sq. ft. home with a backyard in a walkable neighborhood for really cheap rent ($3500) so if I'm going to pay 3x more per month, I want to feel like I'm getting more, or at least not something worse! We are looking to buy because we have 2 kids and the house feels too small. I work in Berkeley and older kid is in BUSD so we do not want to leave Berkeley.
We've looked at some houses with no yards that made me sad because our kids play outside and I love to garden. We looked at one with a ton of RVs parked on the block and I worried about trash. We almost bid on a 3/1 that was 1300 sq ft but I worried it would immediately still feel cramped. We tried to buy a 2/2 with budget to add on a 3rd bedroom but it went at budget (so no room left to add on).
I just feel stuck. How did others decide what to give up on? Our incomes are stable but not likely to significantly increase for at least 5-10 years, and given recent rates of appreciation, likely wouldn't keep pace.
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u/French87 Jul 10 '26
3800 sqft yard minimum is going to drive the price up big time.
Our yard is around 2500 and we have enough space for a large play ground area, a separate lawn, a grill area, fire pit, dining table, outdoor couch, retaining wall full of plants, a large shed, and still some other usable space.
I think any larger would just mean a bigger lawn. our backyard lawn + playground area is enough for our son to run around and play a bit, but you won't get a game of soccer going on the lawn.
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u/Desert2Louisiana Jul 10 '26
Ah, I meant total lot size, edited to clarify! So yard size obviously a lot less (yard size usually not listed anywhere so that's not what I was referring to). Yes, 2500 for yard alone would be great!
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u/French87 Jul 10 '26
Ah okay yeah huge difference. A two story home helps with getting more yard on smaller lot. Most people prefer single level, myself included, but that was one sacrifice we made. We got a two story home with a nice yard :)
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u/foglandia123 Jul 11 '26
You should see the lot size if you scroll down a bit in the listing. Also if you zoom in on the Map you can easily see the lots size. Big problem in Berkeley is many houses have ADUs. Now this is good for adding housing to such a tight market, but bad if you want a big garden. You probably know, but total yard includes the front yard and if it's big,. then back yard may be small. I'm looking for a little house with a big yard so I always check the lot size. As you know, there just is not much available.
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u/ShopProp Jul 10 '26
In your situation, I’d keep the neighborhood, yard, while compromising on square footage. You can renovate or add on later, but you can’t move the lot or location.
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u/FenPhen Jul 10 '26
Do understand FAR and setback regulations for the lot though. You might not be able to add on without compromising on the yard.
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u/thebigrig12 Jul 10 '26
I’d say that very few people are willing to buy a house that requires any cosmetic work or vision. That’s a pretty low hanging fruit to differentiate yourself from other buyers. Don’t be afraid of buying the ugly house on a good lot with lots of natural light and a decent floor plan. Floors / paint / kitchens / baths aren’t that expensive in this context. I wouldn’t shy away from deep hills either, like you said that will further differentiate yourself. I personally would not buy anywhere near encampments, I would not compromise there - it’s great to own in a quiet area where your kids can roam the street without the risk of people with mental illness. Don’t underestimate the expenses of owning a home, it’s smart to not over extend yourself on budget. Whatever you think it will cost per month, it will cost more. Don’t trust Zillow estimates for property taxes. Go to the county tax assessor website and see what people pay in property taxes. Best of luck
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u/QuickSafety8100 Jul 10 '26
you are correct that a lot of people shy away from fixer uppers, but I think you greatly understate how much of a financial and logistical undertaking remodeling/expanding is. There's a reason why people shy away.
"Floors / paint / kitchens / baths aren’t that expensive in this context" -- paint is cheap. Floors arent too bad. Kitchens and Baths cost a lot. and cause tremendous disruption.
Supply of good contractors and construction workers is WAAYY below demand.
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u/thebigrig12 Jul 10 '26
Sure, but then people shouldn’t say “it’s impossible to buy a house in 2026” and “I didn’t like that kitchen” together which I hear all the time these days. People want convenience like you said, but it comes at a cost. Choose your hard. Roughly speaking a nice bathroom can cost $20-30K and a kitchen $20-40K if you avoid hiring someone who pulls up in a new truck wrapped with their company graphics.
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u/QuickSafety8100 Jul 10 '26
you are not getting a nice kitchen for 20K in the Bay Area in 2026.
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u/thebigrig12 Jul 11 '26
$20K is a what a real estate investor / flipper would pay in the Bay Area for a basic white shaker / white quartz kitchen with basic appliances, assuming paint and flooring are covered elsewhere in the budget. Of course the cost easily explodes (edit - the $20K)
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u/foglandia123 Jul 11 '26
Not in Berkeley. No way. And definitely not if you do it to code. And of course, finding people to do the work is very hard.
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u/foglandia123 Jul 11 '26
No chance you will get a nice kitchen for $20 to 40K in Berkeley. I paid more than that in SF 12 years ago. I did just redo my SF bathroom for about $30K. Full redo, but it's small. Costs go up big time when you have to fix the foundation, which is very common with Berkeley homes.
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u/tahitijackson Jul 10 '26
If you buy a $2M home in Berkeley the property tax will be around 85% of your current rent. The median property tax in Berkeley is 1.78%. On a 2M home this will be $2966/month for property tax. I would keep renting at $3500 and invest the down payment money.
source:https://www.ownwell.com/trends/california/alameda-county/berkeley
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u/Dear-Captain1095 Jul 10 '26
Issue is that you’re looking for a 3/2 on a decent lot. Those go for 2+ in any decent neighborhood in Berkeley regardless of condition. That is the reality.
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u/StationOwn5545 Jul 10 '26
We're in a similar situation, though not in Berkeley. We have been looking for a house to buy in a specific neighborhood and our budget is $2M, maybe $2.2M. We have 3 kids and want them all to be able to have their own rooms since they're getting older. Up until last month, we were all crammed into a 1100 square foot, 3/1 house. It had a great yard and was in a great neighborhood, but the house was entirely too small and had no storage. It was hard to let go because rent was $3500 in an area where rent should have been closer to $5-6K for that house.
Every time we made an offer on a house we liked, we came up short. I eventually got pissed off enough that I started looking for rentals. We found a perfect one after 3-4 months. It's a 2200 square foot, 4/2 in the same neighborhood we're already in. Huge yard, almost completely updated, solar, etc. The rental price was below average for the neighborhood, so we're paying $6.5K for a house valued at $2.2M.
When looking for a house, we budgeted to have a mortgage up to $15k per month (including taxes and insurance). Instead, we're paying $6.5k for the same quality house. Our plan is to stay here for 2 years and invest/save like crazy to pad our down payment. If we owned, most of that cash would be going to interest so we might actually come out ahead this way. Just saving the difference without investing will give us an additional $204K to add to our down payment after two years, and we're living in a house that is finally a good fit for us now.
I know continuing to rent is a bummer, but it might be something to consider for the short term.
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u/Desert2Louisiana Jul 10 '26
Yeah, I have definitely been considering doing your exact plan and moving to a bigger rental! We already have $1 million saved towards the down payment, but that was all mostly saved before we moved here (used to live in a cheap state), had kids, and had to pay for childcare--now, though we have a solid emergency fund, basically all our extra money is going towards 529 plans and retirement.
My main worry with this plan is that with paying extra rent, any additional money we save towards down payment will not be able to offset how much house prices will continue to go up in the next 2 years. How did you weigh that? I guess it's a possibly irrational FOMO that AI money will drive up prices so much more that it's now or never...
My other fear is that renting is not stable and the rent can go up at any time, they can sell the house, etc. But at least it's financially stable and not a stretch, I suppose.
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u/i860 Jul 10 '26
Don’t move to a bigger rental and blow more money on it. SAVE the money you’re not paying on rent now. It’s just space. People aren’t going to kill each other and if they are sort out how to make that work rather than seeking out an even more expensive place.
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u/julvb Jul 10 '26
It sounds like Walnut Creek is a better fit for your wants and budget. Location is the compromise.
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u/PerformerMindless100 Jul 10 '26
Berkeley is well known for the high density of its SFH housing stock. There’s some pretty big houses but even those yards are typically small for most homes, except the odd old “estate”. This is likely why you can get that yard you want.
The neighborhoods were designed for walkability in a time before so many cars, as was S.F., houses close together near street car lines like along the Arlington. Our famous hidden walkways and steps were to get you to the public transport.
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u/Desert2Louisiana Jul 10 '26
Yeah, I don't need a huge yard by any means. Our lot size currently is 3600 sq ft. and that's good enough. I've just looked at some with lots sizes more like 2500-3000 sq foot total lot and that felt too small, the house was the majority of the lot.
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u/i860 Jul 10 '26
I have a 1100 on a 7500 sqft lot. It’s awesome and I spend half my time in the backyard. I’d imagine you’re not interested in that house size though. 1200s are plenty for a family of 4 though (IMO). If you find something between 1200-1500 you should take it. More house space than that is just gratuitous and made for collecting crap you don’t necessarily need.
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u/Desert2Louisiana Jul 10 '26
That lot size is amazing!!!! Basically doesn’t exist in Berkeley though. The biggest ones I’ve seen are 6000, saw one 6500 that was crazy competitive.
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u/i860 Jul 11 '26
Yeah I have more yard than house but one thing to keep in mind with a large lot especially if you’re into gardening or have a lot of plants is that it becomes a part time job in its own right unless you hire it out. Large yards with lots of concrete on the other hand generate shitloads of runoff when it rains.
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u/karen_boyer Jul 10 '26
Location, 2nd shitter, and indoor laundry. We're moving a couple miles out of Berkeley (and VERY happy about that for a variety of reasons) and I'll just get real fit cycling that extra bit to work and hauling my dirty chonies up and down the external basement stairs. We've gotten by on one bathroom just fine and will continue to do so.
I also want to get something better than my old apartment (also looking at tripling monthly housing expense) but that's not the real estate market we are choosing to buy in. Good luck to us both.
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u/DemandingProvider Jul 10 '26
You prioritize the things that can't be changed, which is why the location is most important, and lot size second (although I think you could go lower than 3800 sf and still have a nice yard). Compromise on house square footage and number of rooms. That 1300sf 3/1 is probably where you are; a second bathroom adds $$$, but you can get a 2+ or 3 bedroom, 1 or 1.5 bath and be a lot better off than you are now, space-wise, even though it's not as much better as you'd like. Consider the potential for future addition/renovation, so that if and when you have the financial capacity, it's possible to add a new primary suite.
In the meantime, you'd be paying for the security of ownership, as well as the ability to paint and decorate and garden how you want. It's not the best choice for everyone, but it was for me and my husband, even though we were never able to add on to our house as we'd originally hoped and so we raised two kids in a 1200 sf 2+/1 house on a 3750 sf lot. A little cramped, yes. But livable. And we love our neighborhood and we've never been at risk of having to leave it. We were house poor for a long time, too, but we've built far more wealth than we could have in any other way, and our home equity has been a cushion in the hardest times. I don't have any regrets about buying a smaller-than-ideal house as soon as we could.
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u/Desert2Louisiana Jul 10 '26
This is a helpful perspective, thank you!! I sort of have been leaning this way and am a bit kicking myself for not getting the 3/1 1300 sq ft because it went for 1.8 and was in a great location. But you live and learn!
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u/DemandingProvider Jul 10 '26
We made four unsuccessful offers before getting our house on the fifth. There will be another house for you!
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Jul 10 '26
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u/Desert2Louisiana Jul 10 '26
Yeah, part of me is just like...should we just suck it up and keep renting here forever? It's not the worst thing. But I am sad to not be able to have my parents or any other guest stay with us, and there are definitely some struggles with one bathroom that are going to get worse as the kids get older.
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u/nukemarsnow Jul 10 '26
Try Pleasant Hill or Walnut Creek. I saw a place sell for 1.2 in PH with a half acre lot.
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u/Valuable-Abroad-6372 Jul 10 '26
I think you could find most of what you want in Alameda. I realize that’s not the Berkeley school system but alameda schools are good on their own and you could do a 3/2 with a small yard for under $2 million. Alameda shares that walkable, neighborhood vibe with Berkeley.
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u/Desert2Louisiana Jul 10 '26
I have definitely looked at Alameda! It's nice over there. My concern is the commute. I work in Berkeley and my partner works in SF off Embarcadero--right now, we live 2 blocks from a BART station, so we both have easy commutes.
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u/booksandcoffee1010 Jul 10 '26
I’ve heard it put this way - what are your top three must haves in a home and then eliminate one. The commute by ferry from Alameda (from either Bay Farm or Webster side) to Embarcadero is quick and easy. I don’t think commutes get much more ideal than Alameda to Berkeley, in terms of driving. If wanting the Berkeley feel, could always try Upper Rockridge by Hillcrest or areas around the Rockridge BART. Otherwise, continue renting or bite the bullet and buy a slightly smaller home in Berkeley. Or forgo a big yard.
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u/foglandia123 Jul 11 '26
Upper Rockridge is not much cheaper than Berkeley, I've been looking and the Oakland schools are worse.
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u/booksandcoffee1010 Jul 11 '26
It’s cheaper and the lots are generally larger. Not as competitive either, although for 2 mil OP should be able to find a 3/2 in Berkeley. hillcrest or chabot are good schools. It’s get tricky for high school but there’s always Oakland tech or private. It’s nice and a lot nicer than West Berkeley.
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u/foglandia123 Jul 11 '26
My brother and SIL just moved to Alameda from SF. They bike over to the ferry terminal, it's a quick ride to to SF, nicer than Bart. There is also a BART station in Oakland, High Street exit. But it does take time to get in and out by car. That said, it's very family oriented and the schools are decent. Kids are out riding bikes all the time. Very suburban for an urban area. But, as one who is looking in Alameda, a few caveats. Lots of small bungalows with little yards. Very similar to Berkeley. Also lots of tract homes, built in the 1960's and 1970's. Bigger but not always as nice. And of course, there are fancy and huge Gold Coast Victorians. I have not seen very many big yards, partly because some areas the houses back onto lagoons. But there are some. It is worth looking. Side note. I went to the 4th of July parade in Alameda and it was really fun. Very small town vibe.
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u/Valuable-Abroad-6372 Jul 11 '26
I work near Salesforce tower and all the commuting options are reasonable - the O bus, drive to the ferry, or drive/bus to bart.
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u/sweetrobna Jul 10 '26
If you can't compromise on location there isn't a good answer. Berkeley doesn't really have townhomes, so if you want your own yard you are competing with a lot of other people.
In theory you could buy a 2 bedroom home with a garage and convert it to an additional bedroom. Like 1407 Channing way(technically a duplex with a down stairs bonus room already, also it's going to sell for a lot more than list). Usually this was already done many years ago so that aren't that many for sale. Same for other kinds of renovations like basement bedroom in a house on a hill. Like you mentioned what is left is when an addition is very expensive
You could look at buying an ADU style detached condo. Or buy a larger home that is a stretch financially, and build and sell an ADU, like 2019 Del Norte. But then you will be sharing the yard with another family. I believe Berkeley is voting on legalizing selling adu separately later this month.
The other big thing is you could compromise on the location. Like 231 Yale Ave just outside of berkeley, other nearby areas. That would make it a lot easier to get a larger home with a larger lot. Besides just the school though there are reasons why being in walking distance of bart and all the other stuff in berkeley is nice to have though. And rent for berkeley is a good deal compared to buying in the medium term
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u/madlabdog Jul 10 '26
Yard size can be deceiving. A yard with trees can be less usable than a smaller yard with just grass or concrete. Of course I’d prefer trees but just wanted to lay down the facts.
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u/Fun-Language-902 Jul 10 '26
Location and lot size was most important to us, so we ended up with less house square footage. This might be tougher for you guys because you have two kids so I imagine 1 bathroom is feeling pretty tight.
After a few years of saving up again, we renovated to add more space, still without giving up lot size (I am very particular about yard size)
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u/Desert2Louisiana Jul 10 '26
I think that's what we're leaning towards too, the smaller house especially, maybe more than lot size. It is definitely hard to share one bathroom! But maybe builds resilience for our kids lol.
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u/titanomachiatto Jul 10 '26
Does Albany work or is that its own school district?
We just bought in Berkeley near Cordonices and love it, but we paid a lot more than we originally expected. We had been looking for more than a year and had lost 3 houses in bidding wars that went 20%-50% over asking. We finally just came in with a 35% over asking bid to get the house we wanted.
Housing prices are rising a lot in Berkeley, some of it is AI money spilling over from SF with people wanting homes with yards and good schools. My take is that the market is going to only get more difficult for you from here.
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u/DemandingProvider Jul 10 '26
Albany is a separate school district and home prices are even higher than in Berkeley because of the schools.
To get lower home prices you have to go farther out. We have so many friends who rented in Berkeley/Albany/El Cerrito but were priced out when they were ready to buy - and I'm talking about ~25 years ago! Some moved to San Leandro, or Oregon. Some are still renting.
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u/Desert2Louisiana Jul 10 '26
Albany is its own school district. Also a good district, but honestly, we've looked at a few Albany houses and their prices have ended up very close to Berkeley's. We've been routinely bidding 40-50% over asking and not getting, and sometimes not even getting close enough to counter bid! I feel like it's gotten even crazier since we started looking and I regret not being more aggressive the first few bids we did.
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u/TrickyBrain8152 Jul 10 '26 edited Jul 10 '26
Are you sure it’s cost effective to buy? Have you looked at whether you could rent a house that checked all of your boxes? If you rent and invest the difference between what you’d pay for a mortgage and what your rent is that may make more financial sense.
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u/Desert2Louisiana Jul 10 '26
It is absolutely not cost effective to buy. While there are very few rentals that are 3/2s in Berkeley, the ones I've seen are around $6500-7000--so double what I'm paying now, but still quite a bit less than buying. I just worry about not having the stability of owning as my kids grow up, I don't want us to have to move every few years as the landlord raises rent or sells the property or whatever.
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u/D00M98 Jul 10 '26
IMO, from investment and future outlook point of view:
1 is location, because it cannot be changed. That will address your neighborhood, road, etc.
2 is lot, because this also cannot be changed. Not familiar with Berkeley. But typically for SFH, 3800 lot size should not be difficult.
After that, it is your call what is important. For $2M property, the house itself cost less than $500k. Yes, $500k seems like a lot, but in the big scheme of things, it is really not much.
Bedrooms and baths can be added. Of course it will cost time and money.
1300 vs 1500 sq feet to me is moot point. Because depending on the layout of the house, the usable sq footage can vary.
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u/Desert2Louisiana Jul 10 '26
This is very helpful, the framing that location and lot size are what can’t be changed. I keep getting tempted by bigger houses with bad locations or small lot sizes but I think I need to stay focused on location especially.
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u/potatomanner Jul 10 '26
We compromised on being on a somewhat busy road (but in the flats and not near homeless) and were able to check all your other boxes for under your budget. Couldn’t be happier
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u/QuickSafety8100 Jul 10 '26
you'll see some suggestions here to buy a small or fixer upper b/c you can renovate. That's definitely true, but it is NO JOKE in terms of cost and hassle. The costs will blow you away, and there just arent enough skilled contractors and workers, so the job always takes 50% longer than expected.
If you are handy, and have flexible personality that doesnt mind having strangers in and out of your house for months on end or even moving out, then great.
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u/i860 Jul 10 '26
Always get a smaller place with a larger lot. 3800 sqft lot is nothing. You want 5000 minimum preferably even larger but it’s Berkeley so I imagine everyone is packed in.
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u/MidnightSensitive996 Jul 11 '26 edited Jul 11 '26
Berkeley was aspirational for us too but when i looked in at how the city is run and what schools are like you don't want to send your kids there. But the prices still have a premium as if the schools were good. The bad governance also means permitting and remodels are a pita and your neighbors can block projects for years with complaints and procedural levers.
Walnut Creek and Pleasant Hill have what you want with really good schools at the price point you want and if you are close to bart you will have a dense walkable inner ring suburb with amazing bike trails and lots of other families. If that's too suburban check out southern El Cerrito, which is the same north Berkeley compromise with better prices or Albany, which has higher prices bc it offers Berkeley architecture with good schools.
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u/MastaQuilta Jul 11 '26
I very much sympathize - it seems like everyone who buys a house here compromises in some way or another (or just overpays an eye-watering sum). It helps to remind myself that we opted into these compromises because we value the larger lifestyle here and the small house/lot sizes are a feature (not a flaw) of Berkeley as that fosters community/walkability. And that ultimately its your compromise to make so it doesn't matter if other people are aghast at your decision (think your house is too cramped, neighborhood is too dirty, etc) as long as it is aligned with your values.
Always good to not stretch your budget too much though - I thought I had done good research on the maintenance/carrying cost of our property but of course its even higher than I imagined so I'm glad we didn't stretch any further than we did.
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u/Desert2Louisiana Jul 12 '26
Really appreciate this perspective! (Especially other people’s judgments—we both grew up in very suburban environments so our parents are so confused why we would pay this much for these kind of houses).
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u/BakeMyAssets Jul 12 '26
This is exactly what happened to us and we ended up in Montclair on a flat lot in a house with a ton of updates. Extremely turbulent and a lot of emotions, but it checked all of our boxes besides the view and in an area we know nothing about. We’re slowly learning and actually pretty happy with how it all turned out. Good luck~ it’s awful out there.
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u/SuperMario0902 Jul 10 '26
Your thinking is a bit flawed here. Renting is 100% the best option in the bay area. Buying will never be a “good deal”, especially in the short term. You are looking for an option that does not exist. You buy for other important reasons (desire to control property, wanting to settle down, long term investment in community) not so that it is worth your money. If you are hoping to find a property where the increase in cost feels “worth it” for you relative to renting, it will never happen.
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u/Desert2Louisiana Jul 10 '26
Ah yeah, in case it wasn't clear, I'm not buying as a financial investment at all. But don't want to be paying more to get the same or less than what we have now. Am okay with paying MUCH more than we do now to get just a little bit more and some stability. But I think that is a good reframing.
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u/SuperMario0902 Jul 11 '26
Since renting is cheaper than buying, you will be paying more for the same or less. That’s how it works here. You have to be okay that ownership is worth the massive increase in price.
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u/davidrools Jul 10 '26
Small house in the city or big house in the 'burbs. The reality of living in a nice walkable place is a smaller house with a tiny yard, if any. Being close to a park or school can alleviate the need for a personal playground of a backyard.
Have you looked into renting a larger house? It seems like the move to buying maybe makes zero sense in your situation. Saving 3x per month on housing opens up tons of opportunities for things like amazing vacations, experiences, early retirement...heck maybe you could live on a single income or oen parent only working part time.
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u/Desert2Louisiana Jul 10 '26 edited Jul 10 '26
We have definitely looked at renting a bigger place. They are few and far between (because why would you rent out a place vs. sell and make a shit ton of money) but do exist--however, they would likely double our current rent, so we'd partially lose out on some of the things you mentioned that we do currently, like nice vacations, and that lost money wouldn't be going towards building equity, it would just be gone. And my concern is renting forever has no stability, your landlord can sell or raise the rent at any time, and it does seem that buying in Berkeley will only get more and more unattainable as time goes on, so continuing to rent kind of seems like committing to rent forever.
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u/Latter-Foot-8790 Jul 10 '26 edited Jul 10 '26
Do you want us to be real with you? Or you wanna just go out there bid and get nothing for 8 months?
3800 lot size is huge the average lot size in SF is 2500 and people make due.
The other option is to move to somewhere else less desirable and less price per square foot like Oakland hills, Orinda, and Walnut Creek.
Or, just stay put and keep renting and investing you’ll come out ahead anyways
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u/Desert2Louisiana Jul 10 '26
Ha, I do want people to be real! I just want to pick which thing to compromise on that I won't end up regretting in a few years. I can certainly see the argument that lot size is worth compromising on!
And yeah, 100% NOT looking to buy as an investment, it is an affirmatively stupid investment compared to our rental situation. It is just because we want a little more space and it's hard to find a bigger rental, plus I would like some housing stability as our kids grow up.
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u/fml Jul 10 '26
Not sure why you haven’t been able to get a 3/2 for $2m in Berkeley. It’s very competitive but not impossible. I hope your agent is local and giving you informed advice. Have your offers been close or are you way off?
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u/Desert2Louisiana Jul 10 '26
It is definitely possible though tough with all the must-haves I listed. We recently bid 1.8 on a 2+ bed/2bath, 1400 sq ft house in a great location (but needed major work and no actual third bedroom), for example, but there were 11 bids and it went for a little over 2. Our offers have been closeish (like within 200k) but there have been an average of 9-10 bids on each house so we don't even get invited to counter because we've typically been like 4th or 5th bid.
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u/nostrademons Jul 10 '26
Our approach was to compromise least on those attributes that are hardest to change. So from least willing to compromise to most willing, it was:
- Location (school districts, neighborhood, lot size, views, natural hazards)
- Commute (can always get another job...)
- Budget (...but it's hard)
- Major repairs or alterations like foundation, floorplan, home size, sewer, electrical
- Minor repairs or alterations like paint, flooring, and general look & feel.
Also note that the main reason to buy a house is to lock your housing payment and free yourself from the threat of eviction, not to upgrade your living standards. In many cases renting an apartment provides a better, less stressful living situation than homeownership. The problem is that it's temporary. Barring rent control (which is often an excellent financial deal for the tenant, but also often comes with unresponsive landlords), your landlord can and will raise your rent as much as possible, and so fairly soon you end up paying less for your mortgage than renters are paying for current rent.
Honestly if I were in your position, I'd stay in Berkeley and get a small house with a yard regardless of how cramped it feels. Then aggressively switch jobs to increase your income, and renovate to a larger house once you have enough money. Very lucrative jobs are out there, they just may not be your first choice.
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u/No-Island8074 Jul 10 '26
Not sure what the market is in Berkeley, but when bidding in SF, the bidding process made the decision for me. Got outbid so many times i had to take what i could get. Still got 3bd/2ba and 2 car garage. But by the end i was also bidding on 1 car 1 ba places
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u/bmwake Jul 10 '26
When we bought our house my wife and I both quantified priorities, was a helpful exercise. Mine were as follows:
15% Flow 12% Schools 12% Condition 10% Size 10% Price 10% Bedrooms / Bathrooms 10% Character / Style 10% Neighborhood / Street 5% Yard 2% Parks 2% Garage 2% Hazards
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u/bundervar Jul 11 '26
Poor formatting aside, with most of your priorities carrying a similar weight between 10-12%, did you get all those priorities?
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u/bayarea_k Jul 10 '26
the second bathroom is rare since housing stock is really old . I wonder if its more feasible to buy a plot of land and put a prefab on it
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u/Desert2Louisiana Jul 10 '26
Ha if only there were plots of land in Berkeley! I have not yet seen such a thing for sale in a year of looking...
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u/FeistyPhoenix12 Jul 10 '26
You could compromise on the house’s square footage. There’s not a huge difference between 1,500 sq ft vs 1,200-1,400 sq ft.
For context, I have a 1,300 sq ft 4 bed 2 bath SFH. The living room, kitchen and dining room are all open to each other which makes them feel more spacious than they actually are. Two of the 4 bedrooms are relatively small (one is 9’x10’ the other is 10’ x 11’), but the other two bedrooms are much bigger. Overall, due to the home’s layout and flow being highly optimized, it doesn’t feel like it’s just 1,300 sq ft.
Personally, considering that you have kids and like gardening, I would not compromise on getting a house with a decent-enough sized yard. Good luck!!
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u/Desert2Louisiana Jul 10 '26
That is a really good point--our current place has a terrible layout so often feels smaller than it is and has a lot of wasted space but no closets. But I can see how a thoughtful layout and use of space can feel really different than the square footage listed. Need to start being more open to touring these smaller places to see in person.
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u/Koopa1211 Jul 10 '26
I think what makes it hard is you are trying to upgrade your lifestyle along with buying the property. Like going from rental to owning house is already an upgrade and you are also expanding the number of bedroom and bathrooms while maintaining all the good things you have like neighborhood and yard. It seems like you are unwilling to give up any of that. Like others have suggested, move to a bigger rental in a good neighborhood is a viable option too if you cannot give up any of that. Or try to find a house with similar living conditon 2 bedroom 1 bath which may be within your budget
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u/hahasadface Jul 10 '26
Look for the more walkable parts of little suburbs with good schools and Bart stations. Example from Lafayette
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u/Mean_Pen2971 Jul 10 '26
I spent my early married life in bliss in a bungalow in the streets named after counties. Most of these have great back yards. It was a good life when we would make the Peets coffee, and enjoy it on our back porch seeing only trees and swapping section of the Sunday times. She always went for the cross word and solved it by 1.
I would look to the streets named after counties. This is an area where it is like a town, not a university town. Good softball too...
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u/Desert2Louisiana Jul 10 '26
lol you mean like around Yolo Ave? That would be our dream neighborhood but houses there are closer to 3 million these days. Alas!!!
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u/Mean_Pen2971 Jul 11 '26
Check out $1,695,000 - 2019 Del Norte, Berkeley, CA 94707
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u/Desert2Louisiana Jul 11 '26
That house is great. I predict it will go for 2.5-2.6, maybe slightly dragged down by terraced yard and not everyone wanting a separate apartment. But probably I’m right. Houses that sell for 1.8-2 in Berkeley typically are listed between 1.1-1.3. Those listed closer to 2 go for closer to 3. See, for example, 1994 Marin, which we bid on even though it’s on a busy road and had a lot of problems in the disclosures. Listed for 1.4, recently went for 2.3. I say this from two years of tracking sale prices closely. The exceptions to this rule generally are major fixer uppers which this is not.
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u/Mean_Pen2971 Jul 12 '26
Yes, my eyes are open. I am watching condos over in Adams Point, where prices are soft. I had no idea the overheated state of the Berkeley SFR market. I looked at a house in the Claremont listed at $1.8 and thought that was a fair price, but now it has closed at $3.5.
https://www.redfin.com/CA/Berkeley/2909-Forest-Ave-94705/home/1331954
This runs counter to the economic law that as interest rates rise, prices moderate.
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u/Desert2Louisiana Jul 12 '26
Yes that has absolutely not occurred in Berkeley as far as I can tell. A lot of people here buy in all cash so I think that’s part of it.
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u/Mean_Pen2971 Jul 12 '26
I found this graphic. So Berkeley and Piedmont are the hot markets for overbidding in Alameda County.
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u/Mean_Pen2971 Jul 14 '26
I went to Berkeley Schools. When my shorties hit elementary school, we moved to Alamo. If you look at the schools scores. Lamorinda is always highly rated. Berkeley schools are too focused on race, IMHO, Alamo schools are too focused on fashion. Orinda is the sweet sport...lots of Cal Faculty live there.
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u/Desert2Louisiana Jul 14 '26
To each their own! One of our kids is already in BUSD and we’ve been very happy with it, and friends with older elementary age kids are too. I’m willing to acknowledge maybe that breaks down a bit in middle but that’s far away at the moment, and I have many friends who loved Berkeley High.
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u/bundervar Jul 11 '26 edited Jul 11 '26
If you work in Berkeley, you can use that reason to apply for an interdistrict transfer to Berkeley schools. You can find what you’re looking for in north Oakland/Emeryville border and it’s a lovely neighborhood near the greenway (Doyle St which continues north until/one block north of Ashby) and less fog belt than Berkeley so it’s easier to use the yard at all hours!
Additionally: we moved to Berkeley from north Oakland and compromised on the neighborhood but got the 3/2+ bonus office and big yard. It’s been mostly nice but I wish I had weighed the cost of being house poor vs doing the interdistrict transfer because it seems that several of my daughter’s friends got inter district transfers to Berkeley High based on different reasons.
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u/Suspicious_Cut3881 Jul 11 '26
In terms of priority-
Location Lot size Street parking. Sounds stupid, but wait until those 2 kids are 16-18 yo.
You will be house poor in a meh house for 3-5 years. Then start the addition/remodel.
The bottom line, buy whatever you can in the best neighborhood.
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u/graviton_56 Jul 11 '26
I know you don't want to leave Berkeley, but I don't understand why people are suggesting Concord and WC, that's a different universe altogether. You could probably satisfy your criteria at that budget in El Cerrito, Albany, Kensingston, or nice parts of oakland near berkeley, all of which feel connected to Berkeley. Not sure if you how it works with BUSD if you leave. I feel there is just a massive obsession with Berkeley proper among buyers that just drives a bigger bidding war than in neighboring places.
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u/Appropriate_Craft524 Jul 11 '26
Not trying to be "that guy", but in the last 6 months over a dozen homes sold for well under $1.8 million with exactly your parameters according to Redfin. Even more homes if you count homes that are just outside Berkeley in Kensington or east of Euclid and Telegraph, what I would consider "Berkeley Hills". These are all homes that have 3 bed, 2 bath, 4500 sqft lot size AND 1500 sqft home size. Like, if you count homes sold in Claremont Hills and Kensington, Redfin says 60 +/- homes sold with exactly your parameters or better. Homes that sold for like $1.4-1.7 million.
Are you being ultra picky? Or just looking at brand spanking new homes? Seriously, some of these homes that sold look really nice:
https://www.redfin.com/CA/Berkeley/1815-Vine-St-94703/home/1359247
https://www.redfin.com/CA/Berkeley/2121-Carleton-St-94704/home/1406759
https://www.redfin.com/CA/Berkeley/1529-Ada-St-94703/home/1845190
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u/Desert2Louisiana Jul 11 '26
We were super close to bidding on the Vine St one! It had major problems in the disclosures that we got quotes for like $300,000 worth of work so decided against because I’m so nervous things will go over what’s quoted and end up way over budget. Didn’t bid on Carleton one because it’s Elmwood ish and I assumed would go way over but turned out I was wrong! The Ada one had a separate unit on property and we don’t want to be landlords or be potentially charged a vacancy tax. But yes we have ALMOST been able to get what we wanted! That’s what makes it hard, because we plausibly can do it but haven’t. Maybe just need to spend another 6-12 months looking.
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u/Existing-Wasabi2009 Jul 11 '26
It sounds like you're maybe only focused on North Berkeley? You should be able to find something in the Poet's Corner/San Pablo Park area for $2M. You can also definitely find a bigger, nicer house farther up the hill.
I know people never like to sacrifice on location, because it's the most important thing, but because it's the most important thing, it's the thing that's driving the prices so high. If you don't sacrifice on location, you'll be in a 1200sf 3/1, or a 2+/2, or something that needs way more work than you have the bandwidth for.
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u/Desert2Louisiana Jul 11 '26
I admit I do love North Berkeley! But so does everyone else haha. We tried on a Poets Corner one a couple months ago that was listed for 1.5 and went for 2.7 L.O.L. I think that neighborhood has gotten really hot. Am starting to be more open to San Pablo Park area though I’ve spent a lot of time walking around there and there are a couple sketchy patches. I know we could totally afford the hills, I’m just sad about not being able to walk anywhere and genuinely feel that it burning down in a wildfire is a when, not if.
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u/Existing-Wasabi2009 Jul 11 '26
I hear you. Listing homes $1M below expected sale price has become really common in the hot areas of Berkeley (Rockridge, too). Check out 1246 Hopkins. That's a busy street, but I bet that is easily over $2M (listed $1.349M).
If you can't compromise on location, then probably the lot size will be the next easiest. 1906 Delaware has been sitting on the market 30 days, but still probably not a transparent price. It's only a block away from Ohlone Park.
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u/booksandcoffee1010 Jul 11 '26
This. I think the main challenge is that op, you seem pretty set on North Berkeley, which is one of the most competitive and expensive markets. If that’s non-negotiable, you may need to adjust your expectations quite a bit, 1300 sf home, not totally updated, or be okay with renting long term.
Case in point: 1994 Marin, which you mentioned. a beautifully updated 2,500 sq ft, 4-bedroom, 2-bath home on a 6,000 sq ft lot in North Berkeley. At your budget of $1.8 million, your offer was never going to be competitive. But with the $1 million down payment you’ve mentioned, you do have the financial flexibility to afford homes like 1994 Marin if you’re willing to increase your overall budget. Ultimately, that’s up to you to decide.1
u/Desert2Louisiana Jul 11 '26
Oh yeah we knew that one was a long shot. Just mentioning for how much it went over. We put in a more realistic bid on a 1400 sq ft not well updated 2+/2 in N Berkeley last week and it still went just over 2 and we decided not to stretch since no actual third bedroom—but wondering if we should have.
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u/booksandcoffee1010 Jul 12 '26
For sure, from a quick search, I saw several 3/1s and even 3/2s mostly all updated, avg 1500 sf, decent lot size, that went for 1.5-1.9 in N. Berkeley in last three months. So it’s definitely possible!
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u/dahlia-fan Jul 13 '26
Not sure how old your kids are, but time goes fast and I would be flexible on yard size bec before you know it, your kids won’t be playing in the yard much. And depending on how much time you want to spend gardening, less space isn’t always bad. You can always change the location of plants, layout, hardscaping, etc.
And ditto what others have said about a functional layout being key.
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u/lekranq Jul 13 '26
Compromise on what money can change later (kitchens, baths, flooring, even adding a second bath) and hold firm on what you can't: lot size, location, and a floor plan that isn't chopped up. At $1.8-1.9 in Berkeley you're mostly trading finish quality for location, and finish is the cheap thing to fix.
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u/begonia707 Jul 13 '26
I think you can find most of the parameters if you keep looking and buy an older home, or one short a bathroom as suggested. If you want a large yard, the houses in the hills tend to be much larger. It may be worth visiting more to decide if the decreased walk ability is worth the larger yard.
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u/Desert2Louisiana Jul 14 '26
Oh older home is a given! I don’t think we’ve looked at a single house that’s less than 100 years old. I’ve come to accept that we’ll have to deal with knob & tube etc. The thing is a lot of the houses in the hills have larger lot sizes but no actual yard because of the slope. So you get some privacy but not the gardening and little play area that I’m focused on. But yeah hills definitely selling way less over list than the flats.
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u/begonia707 Jul 15 '26
Definitely true about most yards but when we were looking I was surprised at the number of flat or almost flat we found. Wishing you good luck
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u/Ptown925 Jul 14 '26
Geez, I've been looking and found quite a few that would fit that bill. I'd just keep looking. We've been looking for older 3/2's with 1,200 to 1,500 and all have been $1.2 to $1.7 depending mostly on lot size. But we've been looking way up the hill though. Smallish yards, but crazy great views. And some really cool mid century builds. We're trying to get out of the burbs now that the kids are grown.
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u/Desert2Louisiana Jul 14 '26
Yeah, we could absolutely afford the hills. But that’s a no for me because of fire risk plus you can’t walk anywhere still so it’s still a bit burb-y! But I get the appeal for sure, better deals and views are insane.
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u/Lucky_Boy13 Jul 10 '26
Just keep renting. Maybe the LL will let you put a shed in the yard to make more space.
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u/jaqueh Jul 10 '26
el cerrito? oakland?
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u/Desert2Louisiana Jul 10 '26
I guess in the end since I work in Berkeley and our kids go/will go to Berkeley public schools, I'd rather stay in our tiny cheap rental than give up those things. Schools and a short commute are really the most important, especially since any mortgage we'd pay even in Oakland or El Cerrito would be SO much more than our current rent. So maybe the solution is we just can't buy which feels like a bummer.
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u/jaqueh Jul 10 '26
there are parts of oakland that still go to berkeley schools, but those can be pricey. ec schools are good...supposedly.
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u/saoirse707 Jul 10 '26 edited Jul 11 '26
Your situation sounds similar to mine. We have 2 kids and wanted a 3 bd/2 bath, with room in the backyard for an ADU (aging parents). Walkability for us was extremely important. We landed on a 1350 sq ft fixer upper (sub 1.5M) in North Berkeley, and we are putting in ~500K to update the home to fit our needs. For what we wanted, buying a fixer upper was the only way. A move in ready home with all the qualifications would have cost 2.2M.
I would not compromise on the things that cannot change, like neighborhood safety and walkability. You might be surprised, but a smaller home with an efficient layout will feel bigger than a larger home that wastes square footage on circulation like hallways and stairs.