Oceanside California Real Estate Selling Tips

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• Gain from the Sale of a Principal Residence: This part of the act allows the taxpayer to exclude up to $250,000 of gain ($500,000 for married couples filing a joint return) realized on the sale or exchange of a principal residence. The Act applies to any sale or exchange that occurs after May 6, 1997.
• TO BE ELIGIBLE, the residence must have been owned and used as the taxpayers principal residence for A COMBINED PERIOD OF AT LEAST TWO (2) YEARS out of the five (5) years prior to the sale or exchange.
• The prior law permitted a "once in a lifetime" exclusion of $125,000 of gain. UNLIKE THE PRIOR LAW, THIS EXCLUSION WILL APPLY EACH TIME THE TAXPAYER SELLS OR EXCHANGES A PRINCIPAL RESIDENCE, although...
• The exclusion may not be claimed more frequently than every two years.
• Also, unlike the prior law, the taxpayer is NOT required to acquire a replacement principal residence to claim the exclusion.

There are certain exceptions if a taxpayer has certain circumstances that require selling prior to the two year rule, and you may wish to research the rules at the IRS web site.

For property held more than 12 months, the sale of which occurred after May 6, 1997, and before July 29, 1997, the maximum rate of 20% will apply (10% for taxpayers in the 15% bracket)
For property held more than 18 months, the sale of which occurs after May 6, 1997, the maximum rate of 20% will apply (10% for taxpayers in the 15% bracket)
For property acquired after December 31, 2000 and held more than 5 years, prior to its sale, the maximum rate of 18% will apply (8% for taxpayers in the 15% bracket)
For property owned on December 31, 2000, a taxpayer may elect to be treated as a taxpayer who acquired property after December 31, 2000 for purposes of the 5 year rule and the 18% rate (8% for taxpayers in the 15% tax bracket).

3.

Can an investor defer paying capital gains tax upon the sale of investment property by EXCHANGING for another property to be held for investment?

(Excellent replacement Oceanside California real estate is available.)

3.

YES, JoAnn is familiar with 1031 Tax Deferred Delayed Exchanges and has a page devoted entirely to this subject. Please click on link below.

First determine if it's a buyer's market, seller's market or a transitional market. Don't let emotional ties influence pricing. If a property is initially priced too high when first listed, it is likely to become "shopworn" and the longer it stays on the market, the less interest it will attract. In a buyer's market, pricing correctly is even more important since there will be a larger-than-normal amount of competing listings, fewer serious buyers, longer marketing time and decreasing sale prices. The buyers who view your property when it is newly listed (during the first few weeks) usually are the most serious and if it is overpriced they will expect more than what the home offers and quickly lose interest. OVERPRICED properties tend to result in a LOWER price when sold and take longer than usual to sell.

JoAnn will prepare a thorough CMA, Comparative Market Analysis showing what your property is worth as compared to similar properties , with active listings, pending (in escrow) and solds. She will complete this report within 24 hours of your request at no charge.

She normally recommends pricing the property in a "Value Range." For example, if the market is currently a Buyer's Market and similar homes in the area recently sold for approximately $300,000, then she may recommend a Value Range of $280,000 to $320,000.

However, each property is unique and other factors would also be considered in determining the range, such as: property condition, any upgrading or updating, terms offered, availability for showings & Open Houses for exposure and date a buyer could take occupancy.

In a Buyer's Market there are three things that normally prevent a property from selling at Top Dollar in a reasonable time period:

• The fixed listing price is too high; or the Value Range is too high;
• The property is not sparkling clean; not in tip-top condition; has excess clutter in all rooms making the home seem smaller.
• The property is difficult to show. (A lockbox should be allowed and showings allowed within a few hours of advance notice. Open Houses should also be held.A sign with a brochure box for fliers should be allowed in the front yard)

• JoAnn offers to new clients a Gift of $350 toward either a thorough house cleaning to put the home in "Sparkling Clean" condition, including carpet cleaning and windows/screen cleaning; or
• If the home doesn't require cleaning, but instead it needs repairs, then JoAnn will pay up to $350 for repairs using her recommended contractors and handyman.