Proposition 19 Preserves Tax Base for Up to Three Moves

Dated: February 29 2024

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Diablo Gazette January 2024

Proposition 19 Preserves Tax Base for Up to Three Moves

For those over 55 years of age, Proposition 19 offers good news. You can move your property tax base to your new property. (See the graphic.) In fact, you can transfer your original tax base to a new home up to three times anywhere in California as long as you purchase a home for equal or lesser value than the original home. There is an adjusted calculation if the new home is more than the sold home. There are forms on the Contra Costa County website detailing the process.

These changes, courtesy Proposition 19, are a relief to clients who previously thought they would be unable to take this tax base transfer because they have already taken it in the past.

Age 55 or not, if there is a thought about a move in 2024, here are some things you can do to prepare so you don’t “miss the boat.”

Miss the boat? For example, when interest rates are predicted to drop, realize that there will be more buyers at that time but it may be a sudden and short-term window. If selling and your home is market-ready, you can reap the bidding of higher prices that often come with interest rate reductions.

So here are three areas that can help you get a jump on preparation, establish cash reserves, and at minimum provide a more solid home to live in should you decide to stay.

Secure Your Move Money

If you want to buy before selling and have a lot of equity in your home, many clients have secured an equity line on their current home to have the down payment on a new home. Then they can get a loan to complete the purchase and move at their leisure. (Then we stage and sell their vacated home.)

An equity line can take four to 12 weeks as they are non-urgent in nature and should be your “reserve” sitting in the bank until you need it. You do not make any payments until you use it. If you do not need it, it is canceled when you sell. The time for doing this is before you need it, because your home cannot be on the MLS when you apply for an equity line.

Prepare your home for a buyer. Cut down that tree you have been wanting to get rid of, trim up branches and take out dead plants and shrubs. Walk across the street and see what a buyer sees. At the minimum, make sure your mailbox, door locks, front door and paint and trims are looking fresh and new. Do not put this off. If you wait to paint the exterior once the market is hot, the painters will be booked, and you may miss the prime selling time.

Inspections – Complete the pest and home inspection including sewer, roof, and chimney if needed. This process takes a couple of weeks, but if done early, you will be ready for buyer disclosures.

In addition, you will have completed the necessary fixups that might be small in expense but big in impact. Buyers who are presented with inspections upfront make better offers when they know there are no surprises. This is huge for a buyer.

Your Realtor, me, has resources for all of the above and other steps necessary to prepare you for a profitable and quick sale.

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Terrylynn Fisher

Email: terrylynn@buystagesell.comThe beauty of experience – Terrylynn has years of knowledge and hundreds of transactional experiences to call upon when serving your needs. There is very little ....

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