How to Lower Your Property Taxes When You Move

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Nobody likes paying taxes, especially when you think that you're being over-taxed. Good news for you - I have some strategies that you can use to potentially lower your property taxes when you move.

Proposition 60 and Proposition 90 allow you to transfer your low tax bases on your current home to your next purchase. This is especially important because I've noticed that a lot of people are downsizing right now. People have been asking me how they can take their low property taxes with them into their newer and smaller properties.

Proposition 60 is your answer, which allows the transfer of your base year values within the same county. Proposition 90 allows transfers from one county to another in California that are reciprocating with one another. There are currently 10 counties allowing this: Alameda, Los Angeles, Ventura, Riverside, San Diego, Santa Clara, El Dorado, Orange County, San Bernadino, and San Mateo.

These are the five basic requirements for Prop 60 and Prop 90: 

  • You must be 55 years old when your property sells.
  • Replacement property must be your primary residence.
  • Replacement property must be of equal or lesser value than the previous home.
  • Replacement property must be purchased within 2 years of your last sale.
  • This is a one-time only benefit, unless you become disabled.

If you're thinking about downsizing and you have more individual questions, please don't hesitate to contact me! These issues can become complex, and I'd be more than happy to explain it to you.

Common Home Seller Questions Answered

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Today, we're going to discuss the seven most common questions from homeowners who are thinking about selling their home.
  1. What is the best time to sell my home? The best time to sell a home is when you need to move. I sell homes every month of the year. If time is not an issue, then the best time to sell is when there's very little inventory, which is usually in early spring during the months of February, March, and April.  
  2. How is the real estate market right now? The real estate market changes on a weekly basis depending on many factors. We've been in an upward market for the last four or five years, so it is a great time to sell. The market changes every four to six years, so we may see declining market after the election in 2016. 
  3. What steps should I take to prepare my home for sale? Well, you never get a second chance to make a first impression. Declutter your home, paint the rooms, clean carpets, and add colorful flowers to the entryway. These are just a few of the things you can do to make your home more appealing in the eyes of buyers.
  4. What should I disclose to potential buyers? Anything and everything you're aware of that could affect the buyer's decision should absolutely be disclosed.
  5. How much is my home worth? It's only worth what a buyer is willing to pay for it. We can determine that by looking at what similar homes have sold for and comparing them to your property.
  6. How long will it take for my home to sell? That depends on how aggressive your home is priced and how extensively it is marketed. My homes have been selling in about 45 days. If you are motivated to sell and your home is priced correctly, your home will sell quick!
  7. Should I price my home higher to leave room for negotiations? The answer is that well-priced homes will sell quickly and close to listing price.There is no need to leave room for negotiation. Nowadays, buyers are very well educated and know what a home is worth. If you price your home too high, you're more likely to sit on the market for awhile.
If you have any questions about today's video or about real estate in general, give me a call or send me an email. I would be happy to help you!