I may be moving with my family to a LCOL state soon. Need to sell my Bay Area home but not in a rush to sell. Is it best to sell in the next few months or wait until rates drop (and prices increase)? What would you do?
I would wait if I have a year+ or sell now
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Why
If you can hold on onto it till interest rates hit 4.5 mark. Also, where in Bay Area is your house ?
west san jose/cupertino schools
That’s a good place. Please keep it for some time.
Realtor and techie here, hold it until rates go down by one percent or more. Bidding is bad as is and it will get worse with lower interest rates but that’s beneficial for you to get the highest price
Thanks bro!
It can go the other way too as many sellers are thinking the same and waiting to sell as the interest rates begin to drop -> increase in supply
Decide what you want for it. Ask 20% more. Keep it until you get what you asked.
Thumbs 👍🏼
Don’t do that. Any property that stays beyond one week of showing tends to not get a higher price. The trend is to have teaser listing price and hope to see 200k or more above list. If it’s very high, most buyers think the final price would be higher and simply don’t participate. You want a lot of buyers trying to beat each other. Places like Cupertino always go up barring some major market meltdown. More so, if it’s an SFH. Trump is good for markets in the short term. Biden would be same as usual. If you don’t need the money, hold
Rent it and hire a property manager to manage. Renter cannot mess up the location/land so will be a nice cash machine.
yea, but the income tax implications for CA are not worth it. I would rather sever any tax ties with CA.
Rental laws favor the tenant not landlord in CA. Anyone can easily not pay rent and screw you over. In fact you need to pay them to leave. Heard so many horror stories from friends about this in the Bay Area.
Where you headed to? Why leave Bay Area? New job?
tired of the financial formula. Yes new job outside hardware. Texas
Might wanna do some more research https://fortune.com/2023/03/23/states-with-lowest-highest-tax-burden/
I have a feeling we are hitting a lull in the markets. Interest rate drops are coming slower than expected, and I think AAPL is going to deliver very disappointing results. It could take 6-14 months but i’d wait.
Disappointing AAPL performance is already priced in. Moreover how is it related to housing market?
Who's buying all the houses in the Bay Area Roblox? Football players?
It's a complicated question. If your goal is just to sell at much better price. Hold it. Decreased interest rate can increase the house price. In the long term, the house price can also keep increasing. If your goal is to maximize your profit. It's better to consider the tax consequences as well. For primary residences, a couple can get up to $500K deduction if living for 2+ years in the past 5 years. If the appreciation is less than $500, I would suggest sell it before the 2 years window expires. If the appreciation has been much higher than $500K for a couple, or $250 for one person, you can convert it into a rental property. Then use the Buy, Borrow, and Die strategy. When you sell it, use 1031 exchange it to buy a new or several new houses, without pay taxes for the sold house. When people die, the appreciation won't be taxed any more. If you need money, you can do cash out refinance, without paying tax; and the interest is tax deductible. The depreciation can also be tax deductible. If you don't rent it out, property tax is one cost; there could be interest cost; you can not take full tax advantage of a rental property, such as full property tax deduction, full loan interest deduction, depreciation deduction. There are also more to consider. DM me if you want to learn more.
Cool! Thanks HenryHome
Just a heads up, you can combine 1031 and 121 exclusion, get the best of both worlds....then you still get tax free gains and deferral. There is a path for this, but it does take planning
I would never sell due to prop 13. If you ever move back you would pay market price and property tax will be at the new price. California is the one place where holding gives you crazy benefits. See all the people who bought homes 10+ years back. Everyone is paying a fraction of the property taxes
Not interested in coming back except to - maybe - vacation.
Never say never. You may get a $1M TC job here
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Sell me for 500k
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Don't think that is legal anymore