greene-and-sievers-real-estate

What if I find a home I love… but haven’t sold mine yet?

Wed, 23 Apr 2025 17:59:04 GMT

PENINSULA INSIGHTS | SPRING 2025 EDITION

Helping homeowners on the peninsula navigate life and home transitions with ease.

Passing Your Home to Your Heirs: Are You Asking the Right Questions?

Tue, 04 Mar 2025 23:36:16 GMT

PENINSULA INSIGHTS | FEBRUARY EDITION

Helping homeowners on the peninsula navigate life and home transitions with ease.

Navigating Insurance Uncertainty: A Must-Read for San Mateo County Homeowners

Mon, 03 Feb 2025 23:24:07 GMT

PENINSULA INSIGHTS | JANUARY EDITION

Helping homeowners on the peninsula navigate life and home transitions with ease.

End-of-Year Real Estate Planning

Tue, 10 Dec 2024 17:32:24 GMT

PENINSULA INSIGHTS | WINTER EDITION

Helping homeowners on the peninsula navigate life and home transitions with ease.

Is It Time to Sell Your Investment Property? Let Greene & Sievers Help You Decide!

Tue, 22 Oct 2024 20:15:08 GMT

PENINSULA INSIGHTS | OCTOBER EDITION

Helping homeowners on the peninsula navigate life and home transitions with ease.

Have You Heard About the Recent Changes in Real Estate Transactions and Why You Should Care?

Thu, 12 Sep 2024 21:22:45 GMT

PENINSULA INSIGHTS | SEPTEMBER EDITION

Helping homeowners on the peninsula navigate life and home transitions with ease.

Thinking of Selling... When is the right time?

Wed, 24 Jul 2024 19:59:11 GMT

PENINSULA INSIGHTS | JULY EDITION

Helping homewoners on the peninsula navigate life and home transitions with ease.

May 2024 Recognition

Mon, 08 Jul 2024 18:03:09 GMT

Congratulations! Top Performer!

Kiddos Leaving the Nest… What’s Next?

Sat, 15 Jun 2024 00:54:05 GMT

This June, we provide a comprehensive market update and shine a spotlight on our trusted vendors, all while helping homeowners on the Peninsula navigate home transitions with ease.

Effective 1/1/2025 - California Balcony Safety: Understanding SB 721 and SB 326: Do you own a Condo, Townhouse or Multifamily dwelling, this may apply to you and be costly!

Mon, 10 Jun 2024 20:34:06 GMT

A balcony adds so much to a living space. Especially in an apartment if you don't have a yard, it can serve as a place for coffee in the morning, a place to read a book on a sunny afternoon, or even a place to set out a few herb plants.

But safety is paramount, especially when it comes to balconies and decks. Two new key pieces of legislation, SB 721 and SB 326, address this concern by mandating inspections of Exterior Elevated Elements (EEEs) in multi-family buildings.

Here's a breakdown of both bills and their key differences:

Similarities:

Focus: Both SB 721 and SB 326 aim to ensure the safety of residents by requiring regular inspections of EEEs like balconies, decks, walkways, and stairways.
Inspection Requirements: Both bills require inspections to be conducted by qualified professionals like architects, structural engineers, or licensed general contractors. The inspections will assess waterproofing, structural integrity, and overall safety.
Timeline: The initial inspection deadline is January 1, 2025, for all covered buildings. Subsequent inspections will occur at regular intervals – every six years for SB 721 and every nine years for SB 326.

Differences:

Who They Affect:
SB 721 applies to landlords of buildings with three or more multi-family dwelling units that are at least two stories tall. Think apartment buildings.
SB 326 focuses on condominium and townhouse associations for similar multi-unit buildings.
Frequency of Inspections: SB 721 requires more frequent inspections, happening every six years compared to SB 326's nine-year interval.

Estimated Inspection Cost: The cost of an inspection can vary depending on factors like the size and complexity of the building, the number of EEEs, and the inspector's qualifications. However, estimates typically range from $300 to $500 per balcony, with additional fees for inspecting other EEEs. It's important to note that for homes with HOAs, the management company, not you, is responsible for organizing the inspections and associated repairs.

Overall, both SB 721 and SB 326 are crucial steps towards ensuring the safety of Californians living in multi-family buildings with balconies and other EEEs. Understanding which bill applies to your specific situation (landlord vs. homeowner association) is essential for complying with the inspection deadlines.

For more details and resources:

California Department of Housing and Community Development (HCD): https://www.hcd.ca.gov/ (Look for information on SB 721 and SB 326)
California Architects Board (CAB): https://www.cab.ca.gov/ (Provides a directory of licensed architects who may conduct inspections)
California Structural Engineers Association (CSEA): https://seaosc.org/ (Provides a directory of licensed structural engineers who may conduct inspections)

1031 - Improvement Exchange (Investment Clients)

Mon, 29 Apr 2024 20:59:27 GMT

Did you know that you can use 1031 exchange funds for renovation expenses?

I was recently chatting with a client who owns an investment property and was considering a 1031 Exchange – swapping a new property that's "like-kind" for an existing one, while deferring capital gains taxes.

I shared something they were not familiar with, which was they could actually use a portion of those exchange funds for renovations on the new property. It is specifically referred to as an improvement exchange.

By doing this they could potentially:

Defer capital gains taxes on the sale of their existing property, by reinvesting the proceeds into the replacement property and improvements, allowing their money to grow tax-deferred.
Increase the new property’s value by using sale proceeds for improvements on the replacement property. This can also result in higher rental income or a larger profit when you eventually sell.
Customize the replacement property to perfectly suit your investment goals.

It's important to remember that this is a complex tax strategy. There are strict time constraints, the replacement property must be "like-kind," and working with both a 1031 Qualified Intermediary (A neutral third-party middleman, facilitating the exchange process and ensuring compliance with IRS regulations) and a tax advisor is crucial for a smooth and compliant tax-deferred exchange.

If you would like to learn more about this strategy, contact us via e-mail at Team@greenesievers.com to schedule a time to meet. We can also put you in touch with a 1031 specialist who can further explain the details of this approach.

Marry the House, Date the Rate

Mon, 29 Apr 2024 20:58:30 GMT

“Marry the House, Date the Rate”: Finding Creative Financing Solutions to buy when interest rates are up (like a 3-2-1 Buydown)

Just like when you marry someone, there are foundational things you need and then there are things you want, which often change. Similarly when buying a home, the purchase price is fixed, but interest rates change.

I was in an office meeting last week and an agent mentioned that 80+ groups of people attended their open house, another agent received 38 offers on a property, and homes are going way over asking.

All this activity is driving home prices up, and once interest rates come down, I can only assume demand will continue to increase as well as housing prices.

When speaking with clients, I have been suggesting that they speak with their lenders about finding creative financing options, such as the 3-2-1 buydown.

A 3-2-1 buydown is a temporary mortgage interest rate reduction strategy, which allows a buyer to qualify for a higher mortgage.

This approach lowers the interest rate for the first three years of the loan by 3% in the first year, 2% in the second year and 1% in the third year - then the rate goes back to the original rate for the remaining term of the loan.

This strategy is beneficial for homebuyers who are expecting interest rates to fall in the next few years and want to save money on their monthly payments in the meantime.

Here is an example of how a 3-2-1 buydown would work for a $1,000,000 home loan with a 5% down payment and an initial interest rate of 6.75%:

Year 1: The interest rate would be reduced to 3.75%, resulting in a monthly payment of approximately $4,938. This is a savings of $1,762 per month compared to the original monthly payment of $6,700.
Year 2: The interest rate would be increased to 4.75%, resulting in a monthly payment of approximately $5,494. This is still a savings of $1,206 per month compared to the original monthly payment of $6,700.
Year 3: The interest rate would be increased to 5.75%, resulting in a monthly payment of approximately $6,082. This is still a savings of $618 per month compared to the original monthly payment of $6,700.
Year 4 and beyond: The interest rate would revert to the original rate of 6.75%, resulting in a monthly payment of $6,700.

It is important to note that the 3- 2-1 buydown is typically paid for by the seller of the home (as opposed to a price reduction), or a lender and it is not available from all lenders.

Additionally, it is important to make sure that you can afford the monthly payments after the buydown period ends.

If you would like to learn more about this strategy, contact us via e-mail at Team@greenesievers.com to schedule a time to meet. We can also put you in touch with a lender who can further explain the details of this approach.

Conformning Loan Limit Increases in 2024 - Making loans more affordable!

Mon, 05 Feb 2024 17:24:15 GMT

2023 was a bit of a wild ride for those seeking to finance a home purchase – inventory was low and mortgage rates played hopscotch, so successfully purchasing a home got trickier. However, 2024 is targeted to be a recovery year in real estate given buyers confidence in projected lower interest rates, creative ways to borrow and new conforming loan limits. Greene & Sievers Real Estate is here to break it down for you. Here’s a quick lesson on what the new loan limits are and how they're shaking things up in the housing game.

Adjustments in conforming loan limits for the year 2024, seek to align with shifts in the housing market. This ensures that despite the surge in housing costs, the average homebuyer retains accessibility to conventional mortgages. For 2024, the base limit for a one-unit property is set at $766,550, a notable increase of $40,350 from the preceding year. Fortunately there is good news for the Bay area. The conforming loan limit for Alameda, Contra Costa, San Francisco, San Mateo and Santa Clara counties, jumps to $1,149,825, which is 150% of the base limit. This increase in the conforming loan amount, which may result in a lower interest rate, should open the door for more buyers to qualify for a loan.

In general, conforming loan limits draw the line between regular and jumbo mortgages. Big players like Fannie Mae and Freddie Mac set the criteria, such as down payments, credit scores and documentation for the mortgages they snag. Then, the Federal Housing Finance Agency (FHFA), their watchdog, annually sets the max loan sizes (aka conforming loan limits) for Fannie Mae and Freddie Mac to buy. They bundle a bunch of mortgages into securities and sell them in the secondary market. It's their way of playing it safe when they grab mortgages from lenders.When Fannie Mae and Freddie Mac acquire a mortgage, they take on the risks and share them with investors.

Jumbo loans, surpassing these conforming limits, distinguish themselves from conventional mortgages as they are not eligible for acquisition by Fannie Mae and Freddie Mac. Lenders typically retain jumbo loans for the entire life of the loan, thereby elevating risk exposure which necessitates higher interest rates for prospective homebuyers.

For more information or lender recommendations, contact Peggy and Jody with Greene & Sievers Real Estate.

Inheritance Tax Strategy

Wed, 18 Oct 2023 17:25:48 GMT

Inheriting a loved one's home can be a wonderful gift, but it can also come with the burden of capital gains tax when you decide to sell it. Capital gains tax is a fee you pay on the profit made from selling assets like real estate, stocks, or even a car. This tax is calculated based on the difference between the purchase price and the sale price.

Now, there are two types of federal capital gains tax - short-term and long-term. Short-term tax applies if you sell an asset within a year, and the rate matches your regular income tax rate. On the other hand, long-term capital gains tax applies if you hold onto the asset for over a year, and the rate is typically lower, varying from 0% to 20% depending on your income.

It's also important to know that many U.S. states have their own additional capital gains tax rates. But in a few states like Alaska, Florida, and Texas, you won't face a state-level capital gains tax.

So, how can you reduce capital gains tax on an inherited property? Here are some strategies:

⦁ Sell the property quickly: If you sell the property shortly after inheriting it, you can take advantage of the "step-up basis." This means you'll only be taxed on the difference between the property's value at the time of inheritance and the sale price.

⦁ Make it your primary residence: If you live in the inherited property for at least two out of five years before selling, you might qualify for a primary residence exclusion, allowing you to exclude some or all of the capital gains.

⦁ Rent the property: If you don't want to live in the property but want to keep it for a while, consider renting it. You can use the proceeds from the sale to buy another property through a 1031 tax-deferred exchange, deferring capital gains taxes.

⦁ Disclaim the inheritance: If you'd rather not deal with the tax implications, you can choose to disclaim the property, transferring it to the next eligible person.

⦁ Transfer the property into a trust before death: Consider having your loved one transfer the property to a trust before they pass away, as the type of trust chosen can impact the tax treatment.

In conclusion, minimizing capital gains tax on inherited property is possible with these strategies, but it's crucial to consult with a professional for the best advice. Taxes can be complex, so expert guidance is your best bet.

Source:

https://www.innovativecpagroup.com/resources/newsarticles/how-to-minimize-capital-gains-tax-on-inherited-property/

1031 Exchange May Apply to Your Primary Residence!

Wed, 11 Oct 2023 17:19:15 GMT

A 1031 exchange, also known as a like-kind exchange or a tax-deferred exchange, is a provision in the United States tax code that allows real estate investors to sell a property and reinvest the proceeds into another property of similar nature or value, while deferring the payment of capital gains taxes that would normally be due upon the sale.

You’ve probably heard that your primary residence usually doesn't qualify for a 1031 Exchange tax-saving strategy, but there are a few exceptions.

1. Conversion to Rental Property:

If you convert your primary residence into a rental property and meet all 1031 exchange requirements, you can defer taxes on its sale by exchanging it for a like-kind property. These requirements include:

⦁ Both properties must be like-kind.

⦁ You must use a qualified intermediary (QI) to handle the exchange.

⦁ The properties must be held for investment or business purposes.

⦁ You have 45 days after close of escrow to identify a replacement property and 180 days to acquire it.

⦁ The value of the replacement property must equal or exceed the relinquished property's value.

2. Vacation Homes:

Even your vacation home might qualify for a 1031 exchange if you have rented it out for at least 14 days in each of the two years before selling it. However, there are some special reporting and intent requirements.

3. Mixed-use Exchange:

These transactions involve selling a property that includes the taxpayer's primary residence along with other land, structures, or improvements used for business or investment purposes. Examples could include:

⦁ Home Office - this is where a business pays the taxpayer rent for office space within the principal residence;

⦁ Farm and Ranch Land - where the taxpayer works the land as their business, but lives in their principal residence also located on the property;

⦁ Duplex - A duplex where the taxpayer lives in one unit as their principal residence and rents the other unit; and

⦁ ADU - A single family home with an accessory dwelling unit (“ADU”), attached or detached, and the taxpayer lives in the home as their principal residence and rents out the ADU.

The list is vast, yet mixed-use exchanges arise when there is a principal residence, commonly known as the primary residence, situated on or within the property or building being transferred as a part of a single transaction.

These are just topics to consider when thinking about selling your home. You should contact a professional who thoroughly understands the rules for executing such transactions. Contact Greene & Sievers Real Estate and we can put you in touch with trusted 1031 Exchange specialists.

Sources:

Selling Your Primary Residence in California: Capital Gains Tax Exemptions

Tue, 03 Oct 2023 17:04:19 GMT

Selling your primary residence in California can be an exciting but also financially complex endeavor. One crucial aspect to consider is the potential capital gains tax you might owe on the profit from the sale. However, there are exemptions and exclusions in place that can significantly reduce or eliminate your capital gains tax liability. In this blog post, we'll explore the ins and outs of selling your primary residence in California and the various exemptions available to homeowners.

Understanding Capital Gains Tax

Before delving into the exemptions, it's essential to understand what capital gains tax is and how it works. When you sell an asset, including your home, for more than what you paid for it, you typically incur a capital gain. In California, this gain is subject to taxation at the state and federal levels.

The current federal tax rate on long-term capital gains (assets held for more than one year) ranges from 0% to 20%, depending on your income. In addition, California imposes a state capital gains tax which can be as high as 13.3%, making it one of the highest state tax rates in the country.

However, there's good news for homeowners in California. The state offers several exemptions that can reduce or eliminate your capital gains tax liability when selling your primary residence.

1. The Home Sale Exclusion (Section 121)

The Home Sale Exclusion, also known as Section 121 of the Internal Revenue Code, is a federal tax provision that allows homeowners to exclude a portion of their capital gains when selling their primary residence. To qualify for this exemption, you must meet the following criteria:

⦁ You have owned the home for at least two out of the five years before the sale.

⦁ You have used the home as your primary residence for at least two out of the five years before the sale.

⦁ You haven't claimed the exclusion on another home sale within the last two years.

Under this provision, a single homeowner can exclude up to $250,000 in capital gains from taxation, while a married couple filing jointly can exclude up to $500,000. If your capital gains fall below these thresholds, you may not owe any federal capital gains tax on the sale of your primary residence.

2. California's Homeowners' Property Tax Exemption

In addition to the federal Home Sale Exclusion, California offers its own tax benefits to homeowners through the Homeowners' Property Tax Exemption. This program reduces the assessed value of your primary residence by $7,000 for tax purposes, which can result in lower property tax bills. While this doesn't directly impact your capital gains tax, it can help reduce your overall housing costs.

3. 1031 Exchange

For homeowners looking to invest in another property after selling their primary residence, the 1031 exchange can be a useful tool. Under Section 1031 of the Internal Revenue Code, you can defer capital gains tax by reinvesting the proceeds from the sale into a "like-kind" property within a specific time frame. This is a more complex strategy that requires careful planning and adherence to IRS guidelines.

( See blog post entitled “A 1031 Exchange May Apply to Your Primary Residence." )

Conclusion

Selling your primary residence in California can be a profitable venture, but it's crucial to understand the capital gains tax implications and the available exemptions. The Home Sale Exclusion at the federal level and the Homeowners' Property Tax Exemption at the state level can significantly reduce your tax liability, allowing you to keep more of the profit from your home sale. Additionally, the 1031 exchange provides an option for those looking to reinvest in real estate while deferring their tax obligations. Always consult with a tax professional or financial advisor for personalized guidance when navigating these tax considerations. By leveraging these exemptions and following tax regulations, you can make the most of your primary residence sale in the Golden State.

The Power of Proposition 19

Wed, 27 Sep 2023 17:04:14 GMT

Since 1978, California homeowners have benefitted from Proposition 13, which limits the yearly property tax increase, regardless of the increased value of the home. Property values have skyrocketed in many California cities by over 200% since the early 2000’s. So, you may be hesitant to sell and buy another home in California given that State and local taxes are typically calculated at 1.2%-1.3% of the purchase price. But there is a way to make that desired move without a jump in your property taxes.

If you're 55 or older and own a home in California, Proposition 19, also known as the "Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act, which passed in November 2020, has brought significant changes to property taxes for certain groups.

Under the old Proposition 60/90, homeowners aged 55 and above could transfer the tax base of their primary residence when moving within the same county or one of 10 California counties. Proposition 19 expanded this exemption, allowing eligible homeowners to transfer their assessed value to a new home anywhere in California, even if it's in a different county. And you can take advantage of Proposition 19 up to three times!

For homeowners aged 55 or older looking to move within California, Proposition 19 can lead to substantial property tax savings. It also offers provisions to help those affected by natural disasters. Consult with a tax professional to determine your eligibility for the base year value transfer.

These changes took effect on and after April 1, 2021. Proposition 19 allows eligible homeowners to transfer their current taxable value to a new primary residence anywhere in California within two years of selling their original home.

Key takeaways:

Seniors over 55 can move up to three times in California while keeping their low property tax basis.
If the replacement home is more expensive, there will be a slight adjustment, but taxes will still be considerably lower due to the transferred original tax value.
Property tax transfers do not happen automatically ; homeowners need to fill out an application form.

Additionally, Proposition 19 modified rules for inheriting property. The parent-child transfer and grandparent to grandchild transfer still applies but only if the new owner uses the property as their primary residence. If the property becomes a rental or vacation home, it will be reassessed at its current market value. Consulting a tax professional is recommended. Let us know if we can assist you.

Embrace Your New Beginning: The Benefits of Becoming an Empty Nester

Fri, 22 Sep 2023 15:32:25 GMT

Life has a way of changing. One of the significant milestones many of our clients experience is becoming empty nesters. It's a transformative phase filled with opportunities,

Freshen up Your Home: As your children move on to pursue their dreams, you now have the freedom to reimagine your living space. Whether it's a fresh coat of paint, a renovation project, or transforming a bedroom into a home office, you can tailor your home to your preferences.
Financial Freedom: With fewer daily household expenses, you may find that your financial situation becomes more comfortable. This can mean more disposable income for your hobbies, travel, or even investing in additional properties to diversify your portfolio.
Rightsize Your Space: The Bay Area offers an array of housing options, from spacious family homes to cozy condos. Empty nesters often choose to rightsize, downsizing to a property that's easier to maintain, energy-efficient, and more aligned with their current needs. Or maybe it’s time for your dream home with enough space for future grandchildren.
Exploration Awaits: The Bay Area is known for its diverse neighborhoods and communities. As empty nesters, you can explore different areas to find the perfect match for your post-parenting lifestyle. Whether you're drawn to bustling urban centers, tranquil suburbs, or scenic waterfronts, the choice is yours.
Investment Opportunities: With potentially increased financial flexibility, you might consider real estate investments. It could be a vacation home, rental property, or participating in real estate investment trusts (REITs) to secure your financial future.

At Greene & Sievers Real Estate, we believe that every stage of life brings unique opportunities, and becoming an empty nester is no exception. As you embrace this new chapter, consider the endless possibilities the Bay Area has to offer. Our dedicated team is here to assist you in finding the perfect property that aligns with your post-parenting dreams.

If you're ready to explore the Bay Area's real estate market or have any questions about this exciting transition, please don't hesitate to reach out to us. We're here to help you make the most of this transformative journey.

Thinking of Downsizing? Let Peggy at Greene & Sievers Real Estate Share Some Insights!

Thu, 14 Sep 2023 15:32:23 GMT

Hey there! Are you at that point in life where you're thinking about downsizing your family home? Well, I'm Peggy from Greene & Sievers Real Estate, and I've been through this myself, so I totally get how exciting and, at times, challenging it can be. Let me share some thoughts on common questions I've come across:

1. How Do You Start the Downsizing Process?

First things first, you need to figure out what you really want. Why do you want to downsize? What are you looking for in a new home? Take a good look at your current place, get rid of stuff you don't need, and be realistic about your budget.

2. Handling Your Belongings During Downsizing

Dealing with your stuff can be a real puzzle. I suggest sorting your things into categories: keep, donate, sell, or toss. Hosting a garage sale is a great idea, or you can give things to local charities or sell them online. And for those sentimental items, maybe take some photos to keep the memories without the clutter.

3. Finding Your Dream Downsized Home

Finding the perfect smaller home takes some planning. That's where I come in! As a real estate agent who's been through this process, I can help you find homes that match your goals and budget. Make a list of what you must have in your new place, and be open to exploring different neighborhoods and housing options.

4. Challenges You Might Encounter

Downsizing can be an emotional rollercoaster, trust me. Letting go of cherished possessions and adapting to a smaller space can be tough. But remember, it's also a chance for personal growth and simplifying your life.

5. The Role of a Real Estate Agent

A good real estate agent is like a secret weapon in your downsizing journey. We can help you find suitable properties, work out deals, and make the whole selling and buying process a lot smoother. Plus, our local knowledge is a game-changer.

6. Staying Positive Throughout the Process

Keeping a positive mindset is essential. Focus on the good stuff, like less stress, lower expenses, and more free time. Lean on your friends and family for support, and think about all the new adventures your downsized life will bring.

7. Tax Stuff You Should Know

Oh, and here's something important – taxes! Downsizing can have tax implications, so it's smart to chat with a tax advisor or financial expert. They can help you understand how selling your current place and buying a smaller one might affect your taxes. You might even get some cool tax benefits.

Conclusion

If you have more questions or need some one-on-one guidance while you're downsizing, don't hesitate to reach out. I'm Peggy, and I'm here to help you every step of the way. Whether it's answering your questions or finding the perfect home for your new chapter, Greene & Sievers Real Estate has your back. Let's make your transition as smooth as a hot knife through butter!