Nestled in the East Bay, Alamo’s luxury community is tucked away from the hustle and bustle of San Francisco with scenic views and abundant amenities. Residents enjoy easy access to bigger cities as well as an abundance of outdoor activities.
It's easy to see why anyone would want to move to this sunny town. However, at the Khrista Jarvis team, we know how difficult the home-buying process can be. That's why we've put together a complete home-buying guide for Alamo, CA.
Why buy a home in Alamo?
Opportunities to enjoy nature
Nestled in the valley of the Diablo Mountain range, there's no shortage of outdoor activities in Alamo. Hike the Iron Horse Trail, spot local wildlife at Las Trampas Regional Wilderness Park, or go into nearby San Francisco for a day for a walking tour.
A perfect West Coast destination for lovers of warmer climates, Alamo experiences the majority of its days with temperatures between 60 and 90 degrees Fahrenheit. Temperatures fall below 50 degrees Fahrenheit at night for 106 days a year, and Alamo receives rain at one of the lowest frequencies in the United States. It's a sunny city with a low risk of significant weather events, barring wildfires.
While not everyone is looking for luxury homes for sale in Alamo, CA, those seeking higher-end homes will find that Alamo is a luxury house hunter's dream. With one of the highest median incomes in the United States, this notably affluent city has a variety of different styles of houses for sale, from those in gated communities to stand-alone mansions and custom-built homes. However, they all have one thing in common — a luxury look and a price tag to match.
Best neighborhoods in Alamo
Roundhill Country Club
Roundhill Country Club is surrounded by an array of neighborhoods, like Roundhill Oaks, Windsor Green, and Regina Woods. These areas were built mostly in the '60s and '70s and give residents captivating views and easy access to golf courses nearby. Most homes are ranch-style in this neighborhood and start at $1 million.
Featuring large, high-value homes — typically listed between $1 and $3 million — the Stonegate neighborhood is seated in the Diablo Foothills.
Stone Valley Oaks
A neighborhood filled with custom-built homes featuring extras like three and 4-car garages, Stone Valley Oaks is on the newer side — construction finished in 2003 — and its unique, beautiful homes usually list at around $2.5 million.
What to Know About Buying a Home in Alamo
Median household income
At the time of the last U.S. Census (2020), the median household income in Alamo was $248,167 and is projected to only have increased in the last three years. In 2020, that was the highest median household income in California and in the United States.
In California, as in most states, the buyer is expected to shoulder the majority, if not all, of the closing costs. In some cases, you may be able to get the seller to agree to cover part of them. What's unique about closing costs in California is how high they are. The average closing cost percentage is anywhere from 3-6% of the home price, while in California, it's typically about 11% of the cost of the home, including fees like title insurance and down payment.
Residents of Alamo can expect a 0.74% property tax from the state of California and a 1% property tax from the county of Contra Costa. However, since Alamo is an unincorporated town, there won't be any municipal property taxes.
Financial options for homebuyers
Whether this is your first luxury home or a real estate investment, if you're taking out a mortgage, you're looking at loans for Alamo homes for sale. Loans and financial assistance programs have supported homebuyers for a long time, and at this point in your journey, some may be of more help to you than others.
If you're looking to buy a home in Alamo, where the median household income is higher than anywhere else in the state of California, a conventional loan will likely be precisely what you're looking into. Qualifiers for a conventional mortgage loan include credit score, income, and debt-to-income ratio. The interest rate on your loan will be determined by those same factors.
FHA loans and VA loans
If you're interested in looking into other loan options, FHA and VA Loans are two very popular loan options with first-time homeowners. These loans may not be the best fit for you, but you can certainly talk to a financial advisor to learn more.
Maximize your budget
Find the best mortgage rates
When it comes to luxury homes for sale in Alamo, CA, the Khrista Jarvis Team recommends starting your search by researching mortgage rates and talking to different banks. Whether you are a first-time buyer or an experienced investor, the right mortgage rate can make all the difference in ensuring that your purchase is affordable in the long run.
Make the most of your down payment
If it's financially feasible, pay at least 20% of your house price upfront. Eligibility for lower interest rates begins at 20% down- and frankly, the more money you can put towards a luxury home for sale in Alamo, CA, upfront, the more financially stable you'll be in the future.
Ensure financial independence
You want to go into the home-buying process feeling financially ready to buy a house. Whether it's improving your credit score, finding a realtor that offers a commission rebate, or just saving for a while before you buy in Alamo, make sure you're ready when you take the jump.