South Pasadena Homes for Sale

Over 55 and Moving? Save on Your Property Taxes

One of the most common obstacles I run into when working with clients over the age of 55 to find a new home is their property taxes. Many retirees over the age of 55 rely on fixed income or need to be cautious with their money. So when they want to move, either downsize, move to a different area, or move closer to their kids, they can usually afford the home but sometimes they can’t afford the property taxes that are associated with it. Property taxes are usually assessed when you purchase your home at the market price at the time you complete your purchase. Since home prices are so much higher than they were decades ago, this can mean a huge jump in property tax expense. Luckily, there’s Proposition 60 and Proposition 90 that allows homeowners over 55 to transfer their previous property tax basis to their new home. Here are the requirements:

1. You or your spouse must be 55 or older when the original property sells.
2. Your new property must be your principle residence.
3. Both properties must be eligible for the homeowners’ exemption or disabled veterans’ exemption.
4. The market value of the new property must be lower than the original property. Only 1 to 1 exchanges are allowed. Even if only a partial interested in the new property is purchased, the whole property value will be used for this test.
5. The original property closing date must differ from the construction completion or purchase date by two years or less. You can purchase the new property before selling the original property and vice-versa.
6. You must file within 3 years of purchasing your new property.

This is only a one-time benefit and if you transfer between two counties, make sure the county your new home resides in accepts intercounty transfers. As of the time of this blog article, only Alameda, Orange, San Mateo, Ventura, Los Angeles, San Diego, Santa Clara counties allow this type of transfer. Please check with the county you’re moving to verify. I have personally worked with clients transferring their taxes to their new Pasadena and Arcadia homes but every situation is different so please check with your tax accountant or appropriate professional for more information about your particular situation. For more information online, please see this site.

South Pasadena Homes for Sale

What are 3 Reasons a Home Doesn’t Sell?

No one wants to be on the market and not sell. No one wants to deal with the pain of preparing the home to have guests, the agony of scrambling to clean and race out of the house when you have a showing, and most of all, being uncertain of whether someone will ever buy your home so you can finally move on to the next stage of your life. So what are 3 major factors for actually getting your home sold?

1.    Presentation – Cleaning, Staging, General Home Preparation
The bottom line is buyers are more picky and more busy than ever. They want the perfect home without having to do much work on it. Most people these days have more responsibilities than hours in the day so the majority of buyers will want something move-in condition or something close. So…Condition matters!

Before you even put your home on the market, you should review the condition of your home. The easiest things you can do to make your home more appealing to today’s buyers are also some of the cheapest: de-cluttering (free), new paint (you can do it yourself), and new carpet (try to get remnant pieces if possible). Other things you can possibly do are landscaping, staging, new fixtures, etc.

It’s impossible to write a comprehensive guide to preparing a home for sale but my general suggestion is to make the worst things better before making the acceptable things even better.

Bottom line: If your home requires your buyer to use any imagination at all, you are leaving money on the table.

2.    Availability to Show
One huge mistake I see sellers make is making their property difficult to show. On some listings, I see agent comments like “Please show between 9am-1pm on Saturday and Sunday”. Limiting your showing availability lowers your visibility and may ultimately cost you a sale or limit the amount you sell for.

Every single buyer has a different schedule and a preferred time of showing. By limiting times of showings you’ve reduced the number of possible buyers for your home. I have worked with buyers who were not able to view certain homes that were otherwise perfect for them because of showing restrictions. Guess what? They eventually bought something else.

Bottom Line: Think of putting a limit on showings as the same as putting a limit your selling price.

3.    Pricing
Pricing your home incorrectly can limit your chances of a sale or limit your ability to achieve a good price. Pricing your home too high will do four things:

1. Limit your momentum coming onto the market.
2. Limit the number of buyers who even visit your property.
3. Limit your number of offers.
4. Prolong Your Days on Market.

Some of these negatives can’t be avoided even if you decide to do a price reduction later on so make sure you price your home carefully right from the start to capture the first two week rush of buyers. If you want more details on pricing your home correctly, see my upcoming blog post Pricing Your Home to Sell for the Most.

Bottom Line: Get professional help evaluating and pricing your home. Zillow is a fun tool, not a substitute for a real estate professional, just like WebMD is a good source of information, just not a substitute for a doctor.

The truth is, if you obey the rules above and you have the right strategy, your home should sell in weeks, not months. If you’re not selling or haven’t sold in that time frame, it may be time to re-examine your strategy. If you need help with your strategy, I am always willing to help and present some of my ideas and my comprehensive marketing plan.