The Decisions Seniors in San Diego Have to Make When Downsizing Their Home

 

3364-66 A Street

The decision to downsize was the ultimate decision, but as you go through the process you’ll realize that decisions await you at every corner. Will you move into a house or an independent living community? What items come with you and what must go? Another important decision is what you’ll do with your current home. Below you’ll find helpful tips to help you navigate these decisions.

 

Deciding Where to Move

San Diego is home to a variety of unique home styles including one-story ranch properties, Spanish styles, townhomes, split levels, and post-modern homes. However, if you’re looking to live close to other seniors, independent living communities are a good option. They come with a variety of services like housekeeping and meal plans, so there’s no need to constantly manage household duties on your own. You’ll also maintain an independent lifestyle and will have access to in-home care on an as-needed basis. It’s worth taking a tour of nearby facilities to see what you think, but pay attention to the price tag. Costs of independent living facilities in San Diego range widely from $1,655 to $16,500 per month.

 

Deciding Whether to Sell Your House

One of the most common choices regarding your current home is to sell it and use that money to purchase your new home. To make things easy, hire a real estate agent. Agents have access to loads of information, including market trends, competing listings, and comps. Plus, if you’re wanting to sell your home quickly, you’ll need them to help you be aggressive about marketing. While your agent works their magic, get a head start on packing and decluttering. Your new home will have less square footage and storage space, so downsizing your items is a must. Start with the stuff that’s easy to get rid of first such as duplicate, broken, forgotten, and expired items, then go room by room. Decluttering is one of the important steps in staging your home as well so that buyers can focus on the home’s potential rather than your stuff.

Deciding Whether to Rent

If it looks like your home might be on the market for a while, you won’t be able to get the price you want, or you want to keep your home, renting is an option. However, this requires some investment on your end, including a renter’s insurance policy, permits, and repairs/updates. You must also decide if you want to be your own landlord or hire a property management company to help you find/screen tenants, collect rent, handle repairs, and communicate with tenants. You’ll be happy to learn that renting does have some tax benefits, including the ability to deduct rental-related expenses like mortgage interest, taxes, repairs/maintenance, cleaning, insurance, and even depreciation.

 

Deciding Whether to Keep the Home

 

For many seniors, the thought of selling the family home is difficult. Perhaps you want to pass the home on to children, or at least keep it in the family a little while longer. You may have this stipulated in your will, but how can you pass your home to children while you are still living? You may have heard about homes being sold for $1, which is a large gift. Nothing is stopping you from doing it, but if the home is worth $250,000, then you just gave a gift of $249,000. You get a $15,000 gift tax exclusion per person per year. You must then decide whether to pay the gift tax now or apply it your lifetime exemption of $11.4 million. There are other ways to transfer the property including re-titling or deeding.

 

Downsizing is a decision that requires much thought, and the same can be said as to what you’ll do with your current home. You can go the traditional route and sell, or choose a completely different path and rent or keep it altogether. Other decisions like where to move and what to do with your belongings will also have to be made. Think them through and talk them over with family and friends (and professionals) to arrive at the decisions you’re happiest with.

 

If you do decide to sell your home in San Diego, The McT Real Estate Group can help you with the process of selling your house. Contact us at 619-736-7003 so we can set up a time to have a conversation.

 

 

 

 

4 Home Renovations That Will Max Your ROI

Home renovations do not have to break the bank. Here are some ideas that will help whether you are planning on staying in your house for a while or whether you are planning to sell your home in the near future. Knowing what type of home projects will net you the highest dollar amount and max your ROI is always a good thing. Potential homebuyers will deduct a lot of money for a bathroom that needs updating. Doing small bathroom remodels count for a lot when potential buyers see it. It will also make you feel great while you live in the home. Enjoy a nice bathroom!
home renovations
Freshening up the landscape will get more buyers to walk into the house. It is the first thing that potential buyers see before they step inside. As part of your home renovations, you should consider adding new sod or, better yet, in San Diego, drought-tolerant is much better for conserving our water. Don’t forget about the front door. If it looks dingy, freshen it up with a new stain or painting it a beautiful bright colour. If the exterior of the house looks drab, give it a lovely fresh coat.  You will receive a good return on your investment by doing a few of these items. You will also enjoy living in a renovated home.
If you have any questions regarding your best return on investment when selling your home, contact the McT Real Estate Group at 619-736-7003. We are happy to go over things you should consider if you are planning on selling in the near future.

More on Selling a House in San Diego

 

Selling a Home in North Park

Selling a home in North Park these days can happen quickly if properly executed. We keep hearing about how low the inventory is and what a great seller’s market we are in. Yes, we are in a seller’s market. However, because of this, we sometimes run across homeowners that believe they can get much more than what their home is worth, even though there are no comps that would support that amount.

Selling a Home in North Park
Home for Sale in North Park

For a homeowner that is thinking of selling their home, there are lots of things to consider.  Choosing which Realtor to work with to help you with this process is one of those things. Although, there is the occasional home seller that may even think that in today’s market it doesn’t matter who you pick.

Which Realtor Should I Choose?

When selling a home, a homeowner may choose a Realtor because they charge a lower commission or work in what is called a discount brokerage. They may even pick a Realtor because the Realtor said they can get that seller a  $50,000- $100,000 more than what the current comps say; even though there are not any comps to support that price. Some Realtors will say anything to get a homeowner to sign a listing agreement. Unfortunately, the home will sit on the market for months with no offers in-sight. In the meantime, the Realtor will try to get the seller to reduce the price and continue to do so until they get to a price where they eventually get an offer. Now you have a seller who is not happy and is completely aggravated because expectations were not set.

With so much online information at our disposal, I can see where one may also think they can try to sell their home themselves or pick any Realtor. You may think that this will save you lots of money. In reality, what it will end up doing is costing the seller thousands of dollars more in the long run.

 

Falling Out Of Escrow

What you are not able to find online is the track record of fallouts from many of these discount brokerages or individuals that will discount their commission for almost zero. What I mean by this is the number of times a buyer falls out of contract and the listing has to go on the market again. However, this time it is left with a ton of scary inspections left from the previous buyer that you now have to disclose to the new potential buyer. If a possible seller knew how many times this Realtor/Real Estate company has fallen out of a contract because they were not able to negotiate through and complete to a SOLD transaction, they may put more thought into who they hire to represent them with the sale of your home.

 

Selling a Home 

There is more to selling a home than just putting a sign in front of the house, taking photos and uploading your home into the MLS.(multiple listing services). Besides pricing the home right, picking the right buyers that are financially qualified to get a fully approved loan; there is also what happens after an offer is accepted and the buyer does their home inspection. This is where real negotiating skills come into play.

In North Park, South Park and the metro area in San Diego, our homes are over 100 years old. If a Realtor is not experienced with selling older homes things could get a little hectic, to say the least. An experienced Realtor working with their homebuyer is able to walk them through the process of what to expect to see when a home inspection is done on these types of older homes. Even the prettiest homes that have been remodeled will scare the faint of heart when the inspector takes pictures under the house and completes his/her inspection. Foundations are old, roofs are old, windows are old. These are not cookie-cutter tract homes. Knowing this upfront will save all parties front lots of headaches. New home construction is not the type of house that you are going to find in San Diego’s Metro communities.

If you live in North Park then you have one of these older homes.  If you happen to accept an offer from what seems to be a motivated buyer who is working with a  Realtor who is not experienced with these types of homes, it is time to hold on to your hat because the ride is about to get bumpy right about now.

All kidding aside, I have seen it many times and just heard of another case this morning. A Realtor in the neighborhood accepted an offer from the “motivated buyer/Realtor” mentioned above on one of her listings which happens to be a 1930’s Craftsman Bungalow. After the buyer did their inspection they were shocked to find out that the foundation was old, the plumbing was old and some of the electrical was old. They came back and asked that the seller reduce the price by $100,000 because they said the house needed a new roof, new foundation, new electrical, etc.  I think they thought they were buying a new house.

The listing agent then had her preferred vendors go to the house and give a proposal on the higher ticket items that came up in the buyer’s inspection. The proposal came back at $35,000. The seller was then willing to credit the buyer as a reduction in price and was willing to negotiate. However, at that point, the buyer’s agent without further notice sent in a cancellation. There was no communication, no negotiations, just a cancellation.

 

When To Negotiate

Buying and Selling Real Estate is about negotiations. So, when I hear that someone just sends in cancellation papers without a conversation it makes me shake my head in disbelief. The buyer’s agent had no clue about older homes or negotiating through a transaction. Nor were they able to speak on the phone. This is simply a disservice, in my humble opinion to everyone involved in this transaction.

Unfortunately, when you fall out of escrow, the buyer’s agent will typically send all inspection reports that have been completed by a buyers inspectors. When this happens, the seller will now have to show all of these reports to a new potential buyer. This, however, taints your property and now it shows on the MLS that your home has fallen out of escrow. So, whether that inspection was done by a competent inspector or not, the new potential buyer will look at this inspection and decide that the place is falling apart; when in fact, this is not the case. It is just an older home.

If this home was priced right from the very beginning, and certain inspections were done right up front, it would have most likely received multiple offers. The buyer would not have been able to say that they did not know the condition of the home. Also, with multiple offers, the sellers would have then had other choices and would have a SOLD sign in front of their house today.

Thinking of Selling

If you are thinking of selling a home in North Park and would like to speak to a local Real Estate Expert in the neighborhood, please call the McT Real Estate Group at 619-818-8122 right now. We would be happy to speak with you about the process of selling and how we go about preparing your home to enter the marketplace. Feel free to search our online reviews and see what people are saying.

More Info About Selling A Home

Renting Your House in North Park vs Selling

Renting your house in North Park can be easy if you are the owner of the home. However, are you ready to do this? Are you ready to be a landlord? There are certain things to consider if you are planning to turn your home into a rental. Here are a few tips that will help you decide whether this is the best thing for you to do.

North Park Rental
North Park Rental

Are You Hiring a Property Manager?

Will you be the one responsible for finding the tenant, running the credit check, checking their references, etc.? Will you be the one they call when something goes wrong with the plumbing, electric, roof, etc.? Do you have a handyman, electrician, roofer, plumber and these types of tradesman ready to tend to you if you get one of these distressed calls from your tenant. Having a relationship with these people is very important. Especially when you need them in a hurry.

Will You Have Enough Cash Reserves for Maintenance and Repairs?

If you own a home in North Park, South Park or any of the Metro neighborhoods in San Diego, it is most likely you have a one-hundred-year-old house or close to it. Even if it is somewhat upgraded, it most likely has older plumbing and some older electric just to name a few things. You will need to have a rainy day bucket for this. It is not “if things break” but more like “when things break.” You should plan on having an account with at least $3,000-$5,000 dollars in it for emergencies.

Create Home Rules for the Renter

Rules are very important to have. This should be in writing and signed by the tenants at the time they are signing the lease. This brings me to the lease part. Make sure you have a written lease. There are many places to pick one up but if you are in San Diego, you should have one that is specifically for Southern California. You can pick them up at any Staples or take a look at https://wikidownload.com/wiki/california-rental-lease-agreement-forms-templates. Everything should be in writing. If you want something to happen or not happen then you better put it in black and white. Otherwise, a year later it will be like it was never agreed upon.

Will You Live Local or Out of State?

If you are going to live local while you are renting your home, this may be a little easier to do yourself. If you are going to be out of State, this may be a bit more challenging to do since you won’t be around to check on how your investment is doing with a simple driveby at least. Remember, this is no longer your home sweet home. This is a true investment and you will want to make sure that it is being maintained so that your investment continues to grow.

What are the Benefits of Selling a Home While you have Lived in the House 2 out of 5 Years?

Everything has gone well with your rental but you are realizing that the Real Estate Market is doing well. You heard about this thing called “Capital Gains”. Is it getting close to that time where you will have to pay capital gains if you don’t sell now? Take a look at the rules on the IRS website. It will give you an idea of where you stand. The best thing to do is to speak to your certified public accountant about this. Find out what are the taxes and capital gains on the house if you make money on the sale. Not knowing what this is about can cost you thousands of dollars.

Selling a home while a tenant is living in it

So you decided that you are done with being a landlord and you would like to sell the home while the tenant is still living there and paying rent. You may think that you will save money this way. In reality, it will cost you a lot more by doing this. Think about it; the tenant is not happy that you are not renewing the lease and now they have to look for another place to move to. They are not motivated to keep the home tidy and in mint condition for showing. Nor are they happy to let strangers into their space while they are not home. They also do not want to have to leave if they are home while we are having a showing or wanting to give us permission to do an open house. You, the seller will ultimately receive a lot less in proceeds if you choose to keep the tenant in the house while you put it on the market for sale. This, of course, stands true if it is a single-family house. If it is a multi-family house, different rules apply. The buyer of a multi-unit house may want to have the tenants in place if the rents are good and the tenants are all paying their rent on time.

Work With a Local Experienced Realtor

Stay tuned with the local realtor in the area. Are you receiving marketing pieces from a local realtor showing their sales in the area? Are they keeping you informed? If you have been using a property manager to manage your rental, this is not always the best choice for selling. These are two completely different aspects of the Real Estate Business. Do your homework first. Google North Park Real Estate San Diego. Find out who is selling most of the homes in the area. Go on their website, yelp and google reviews to see what people are saying about the experience of working with them are. Have a conversation with them and you will immediately know if you make a good fit to sell your home in North Park.

If you have any questions about buying a home or selling a home in North Park, South Park or any other metro area of San Diego, contact the McT Real Estate Group at (619) 736-7003. We are happy to speak with you.

 

Things to Do in San Diego

 

 

Best Time to Sell a Home in North Park San Diego

We are often asked, “when is the best time to sell our home in North Park”? Our answer is always the same. It depends on your personal situation. Are you selling your house because you would like to buy a larger home? Do you have a job opportunity in another part of the Country? Do you want to downsize? Do you want to sell your North Park house because you want to move closer to the beach?

There are a lot of reasons why someone decides to sell their home. Selling a home is a big decision to make so deciding on when is the best time to sell depends on many different reasons.

Other Reasons Why Selling your Home Now Makes Sense

  • The Inventory in North Park is at an all-time low. Taking advantage of the law of supply and demand works in your favor.  It creates the Sellers Market that we are currently experiencing. The best time to sell something when there is a high demand for something and the supply of that item is low. We are working with lots of home buyers that are searching for a house but don’t have much to choose from. If you list your home in this current market, you will not have as much competition from other sellers. This will ultimately create home price appreciation when buyers flock to your home.
  • Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors, all say that mortgage rates will continue to rise over the next four quarters. This typically slows down home prices from escalating as home buyers will have less buying power.

Best Time to Sell a Home in North Park San Diego

Best time to sell a home
North Park monthly sales of 2016

Looking at the chart shown here, in 2016, it seems as if June and July would be the best time to sell a home in North Park. However, this doesn’t necessarily mean that sellers received a higher dollar amount during those months. It just happens to be that more homes came on the market and buyers were able to buy.

Since North Park and San Diego, in general, has beautiful weather year-round. We don’t have to wait for the cold and snow to go away before putting a house on the market. People are searching for homes year-round and picking what month is best does not really translate in North Park. This, of course, depends if you have kids in school and don’t want to disrupt their school calendar year.

Supply and Demand

The best time for most people to sell their home would be when there is less competition.  Below is a chart, according to the National Association of Realtors, showing the latest home sale report nationwide.

Best Time to Sell a Home Chart
Supply and Demand

                                                                 

Call The McT Real Estate Group

You may be overwhelmed with the thought of selling your home right now. You have so much to do and so little time. Don’t worry about the details. The McT Real Estate Group will be able to help you with getting your home ready. From de-cluttering your home to staging it to sell. We will help you with getting a pre-inspection and also finding your next home. Whether your next home is local or in another part of the country, we can help. We are here for the long haul. Let us know if you have any questions regarding the North Park Real Estate Market or any of the San Diego Metro Market. Call us to schedule a complimentary listing consultation at 619-736-7003 or email us at mary@marymctsoldme.com.

 

Contact Us

Mary McTernan
2875 University Avenue Ste 8
San Diego, CA 92104

619-736-7003

info@mctrealestategroup.com