PROP 19!!

What is Prop 19, how can it affect me and my family?

Prop 19 allows homeowners over the age of 55 to transfer their low property taxes to new homes up to three times. In the past, seniors were allowed to do this with Prop 60/90, but it only lets you do this one time, and only with participating counties.

Now you can do it multiple times to anywhere in the state, and you’re not limited to only buying something at the same price or cheaper than your current property.

The essence of the proposition is to help empty nesters who wanted to move out of their big homes into something more suitable for their current needs. Instead of staying in a large 2 story home, in a good school district, they can buy an updated condo in a 55+ community while still keeping their low property taxes with them.

This lets a new family buy their home to enroll their kids in a great school, while also increasing the funds that the school will get via the increased property taxes from the new homeowners.

And as a bonus, the surpluses that are gained from the new proposition will go towards the new California Fire Response fund which would help fund fire suppression staffing and full-time station based personnel.

Inheritances are now taxed unless the heir moves into the home. It prevents property taxes for investment properties from being frozen in time across generations. It’s not fighting prop 13, it’s fighting prop 58 and 193.

If the replacement primary residence is of equal or lesser value than the original primary residence, then the taxable value of the replacement primary residence shall be the taxable value of the original primary residence.

How does it work?

For example. If you bought your house a long time ago and your current taxable value for your home is $400,000 and you sold it for $1,000,000. Then if your replacement property is bought for $1,000,000 or lower, the taxable value of the replacement property will stay the same at $400,000.

But if the replacement primary residence has a greater value than the original primary residence, you’ll have to pay the difference. So in our previous example, where the original primary residence’s taxable value was 400K and was sold for $1,000,000 and the replacement property was purchased for $1.1 Million, the new taxable value will be $400K + the $100K difference in property values. So you’ll be paying taxes on a $500K total taxable value.

Anyone who wants to transfer the taxable value of their primary residence needs to file an application with the assessor of the county in which the replacement primary residence is located. Your real estate agent should be able to help you with this form.

Inheriting Property

Prop 19 also changes the way inherited properties keep their taxable values. In the past, heirs could keep the taxable value of the properties they inherit. So if the property was worth $1 million and the taxable value was $400K, they could continue to pay taxes on a $400K value. Now, the properties get reassessed unless the heir moves into the home as their primary residence. The taxable value will also increase if the property value has increased by over $1 million over the taxable value. This $1 million buffer will increase every year starting Feb 16 2023 based on the house price index for California. Parents are allowed to sell their homes to their children to pass on this benefit, but grandparents need to have passed away to transfer their property taxes to their grandchildren. The heir or transferee needs to make the home their primary residence within one year to take advantage of this benefit. It’s extremely important to pay attention to the dates since if you mess up, there’s no going back, and your property taxes will be increased forever! The change for seniors transferring their property taxes is effective April 1, 2021. Before that date, it’s safe to assume that you’ll be working with the older Prop 60/90 regulations. The change to inherited property is effective starting Feb 16, 2021.

And before you go off and try to use your new Prop 19 benefits, be sure to talk to an attorney to make sure your plan will work as you expect it to!

April 2021 - IN THIS CURRENT MARKET….How much cosmetic work is needed prior to listing my home for sale?

If you’re considering putting your house on the market, it’s never too early to start figuring out what it will take to make your home irresistible to prospective buyers. Common thought as i’ve shared in my previous post, is that a home owner must do everything from A-Z to make their home attractive to potential buyers. While there is a case to be made regarding that thought, the current market does NOT support that belief.

We recently listed a home for $828,000 in the city of Monrovia. Within two hours of being actively on the open market we had received 2 offers and 24 hours later we had 7 in had. For our clients (sellers), this was enough to shut the door and evaluate the offers in hand, all at or above listing price. Take a look at the photos below, as you can see there wasn’t much done prior to listing. Other than a cleaning and certain safety mandated upgrades the total dollar amount prior to listing was less than $1,000.

In THIS current real estate market the reality is that what was deemed “necessary” in the past is not the case now, there are SO many buyers out there that they are willing to look past the cosmetic aspect of the home in fear of losing the deal.

If making improvements is something you would want to still do, my advice would be to make improvements you know you’ll enjoy. But no need to go over the top.

Also, when you are ready to begin planning the selling of your home, get the advice of an experienced realtor, preferably me, and they can hell you find out how to increase your home value and marketability. They will use their knowledge of your local market to help you focus on which home improvements will do the most to increase your home’s appeal — upping the odds of getting solid offers soon after your listing hits the market – a key factor in getting the best price.

February 2021 - 4 Tips for Home-Sellers

If you’re considering putting your house on the market, it’s never too early to start figuring out what it will take to make your home irresistible to prospective buyers. Amping up curb appeal isn’t all about the outside, as making your home more marketable is an inside job, too.

Even if HGTV is your favorite channel, chances are you’ve got at least a few home remodeling projects you’ve been putting off. It’s ok. We know it’s a lot easier to watch than to actually do.

So where do you start? Should you finally update those dreadful kitchen cabinets? Redo the outdated master bath? Replace the carpet in the kids’ room, where the color can best be described as Rainbow Swirl?

When you’ve got a longer list than budget, what are the must-do remodeling projects and what do you skip?

RANK CURB APPEAL IDEAS BASED ON ROI

If your main goal is selling a home, a good way to prioritize your curb appeal ideas is to figure out first where you’ll get the most bang for your buck. On the other hand, if you might be staying in your home for a while, it’s a lot better to focus on remodeling what matters most to you and your family, while still factoring resale value into the equation. In other words, make the improvements you know you’ll enjoy. Just be smart about it by not over-personalizing or going over the top.

When you’re planning to sell your home, getting the advice of an experienced realtor is one the best ways to find out how to increase home value and marketability. They can use their knowledge of your local market to help you focus on which home improvements will do the most to increase your home’s curb appeal — upping the odds of getting solid offers soon after your listing hits the market – a key factor in getting the best price.

With that in mind, here are 4 popular home remodeling ideas that deliver plenty of value in terms of both your own enjoyment and resale.

1. KITCHEN REMODEL

As the center of activity in most homes, an inviting and well-designed kitchen is highly valued by nearly all home buyers. It’s no surprise that kitchen remodels rank third in ROI in the cost versus value report. A kitchen makeover is also an ambitious task, with most homeowners spending from $12,633 to $35,120 on kitchen remodeling, according to HomeAdvisor. On the bright side, there are lots of ways to update and refresh a kitchen without investing in a full renovation. New countertops, flooring, and appliances in addition to refacing cabinets, painting, and even recessed lighting can make a huge difference in updating a kitchen.

2. LANDSCAPING REFRESH

Talk about curb appeal. Crisply trimmed and colorful landscaping can make the difference between a home shopper stopping to take a look or driving on by. While it’s difficult to pin down the ROI on landscaping, the impact it makes on first impressions is undeniable. With the front yard being center stage, that should be your first priority. HGTV hosts and realtors alike advise starting with a good cleanup first. Is your yard littered with tools and random stuff? Spend some time organizing your outdoor storage. Then your yard should be ready for a mow and blow, trimming and edging, and the hardest job of all – weeding and thinning out overgrown areas. Once that’s done you can assess how much more your yard needs. If you pulled a lot of weeds, add mulch to those areas – starting with a layer of newspaper underneath – to keep those weeds from coming back.

Now for the fun stuff. Add instant color with potted and planted flowering annuals or easy-care plants withinteresting and colorful foliage, like crotons and variegated shell ginger. If you’re going DIY, double-check what works best for your specific area and climate. The best way to do this is to get free expert gardening advice from your local county extension service. Even if you’re paying a landscaping pro, this is a good way to double check their plant and grass choices.

3. INTERIOR PAINTING

Giving rooms a fresh coat of paint in a light, neutral color is one of the easiest and most economical ways toprepare your home for prospective buyers. It’s also a manageable DIY project, since you can take it room by room as needed. If you haven’t done it before, start with one small room or an accent wall as a trial run. If you’re not happy with the results — or the experience — you can turn the other rooms over to a professional

painter. Just be sure to get more than one estimate, as bids can differ by thousands of dollars even for a small home. Your realtor, friends, and neighbors should be able to refer you to trusted painters.

Before diving into a big painting project, try giving your walls a good cleaning first. When done correctly, it’s possible you can brighten and improve the appearance enough that you can avoid painting in some or even all rooms – saving yourself time and money. Make sure you match the cleaning method to the type of paint and start with a small test. Find some quick and easy advice for cleaning painted walls with this guide from Home Depot.

4. FLOORING REPLACEMENT

From the moment you step foot in a home or room, floors make a major impression. They also show most of the wear and tear. That’s why many realtors advise home sellers to replace any flooring that’s damaged or stained. Getting new flooring is a fairly quick and easy process compared to many other home projects. The hardest part may be deciding what material to use.

From the moment you step foot in a home or room, floors make a major impression. They also show most of the wear and tear. That’s why many realtors advise home sellers to replace any flooring that’s damaged or stained. Getting new flooring is a fairly quick and easy process compared to many other home projects. The hardest part may be deciding what material to use.

While home buyers today prefer wood and tile floors, the price points may not be the most practical for a home being prepared for resale. New laminates and luxury vinyl flooring can be an attractive yet cost- effective alternative. While carpet is considered the least desirable option, it’s also the most economical way to replace unsightly flooring, and may still be a good option, especially for bedrooms.