Chic vs. Geek: How Prop 19 Actually Works

One of our clients sold his house with us and moved to a new home in Palm Springs to enjoy his retirement. We were happy to be a part of his journey in a new place. One part of that journey was understanding how changes to property tax laws thanks to Proposition 19 could benefit him in his move.

CHIC (PEARL)

With Prop 19, California homeowners can transfer the tax base of their current residence to a new residence anywhere in the state. Could you benefit from Prop 19? Visit prop19taxbreak.com for up-to-date information. One helpful feature is the graphic above that explains how the new law works whether you’re scaling down or scaling up.

GEEK (KEVIN)

It’s a good idea before you move anywhere to check the County Assessor's website where you’re planning to land so you know what to expect from property assessments and taxes. If you can take advantage of Prop 19 regulations, be sure to download this sample form. And of course, you can always ask us for tips. We’re here to help!

Protecting your household budget from inflation.

What we refer to as “inflation” is generally measured by the Consumer Price Index, a measure of average prices for basic necessities like gas, food, and housing. The CPI jumped more than 9% from June 2021 to June 2022, hitting a new 40-year high in the process.

So how can you keep inflation from affecting your wallet? The Skimm has a few tips.

Geek's Number Talk: Luxurious Market Indicators

In a constantly evolving market, data is king (or queen). Regardless of where your home falls on the price spectrum, one key performance indicator for the housing market is luxury sales, which reached historic highs in the spring. But just a few months later, numbers are down year-over-year:

Chic vs. Geek: Where did the washing machine go?

Recently, we had a conversation with friends about the commissions real estate agents receive on home transactions. They wanted to know if a 3% commission was a good rate. The truth is that a good real estate agent could mean the difference between getting what you want and settling for less. The real question is how much that’s worth to you.

CHIC (PEARL)

Real estate agents are there from the very beginning of your buying or selling journey. We help prepare homes for sale with staging and marketing plans designed strategically to get you the maximum return on your investment. A good agent will also order a pre-inspection to make sure there are no surprises. Once you’re ready for market, an agent will make sure you don’t set a price so high that you scare buyers away, or so low so you leave money on the table. Agents understand buyer demographics and conduct a comprehensive marketing appeal to showcase the home. Bottom line: We are dedicated to acting in your best interest.

GEEK (KEVIN)

Many people think an agent’s work is done when the “SOLD” sign goes up. We continue to work with you all the way through to the closing and key transfer, dealing with the inevitable snafus — “Where did the washing machine go?” “I thought the property line was over here.” etc. The best real estate agents are masters of many trades, and extremely resourceful. We don’t just recommend contractors who do great work at reasonable rates; we coordinate projects to make sure they’re done on your schedule. There are so many moving parts in a big transaction. Our job is to minimize your stress and get you the best result possible.

Chic vs. Geek: Summertime Silver Linings

Amidst news of rising interest rates and supply shortages, there are opportunities to find silver linings in the housing market. Let’s take a look at a few examples:

CHIC (PEARL)

One piece of good news for potential buyers is that banks should get faster and more efficient at processing loan applications, especially with a sharp drop-off in re-financing due to rising federal interest rates.

Another positive is the job market. Prior to the pandemic, we were already experiencing high unemployment — and under-employment — and the COVID shutdown took it to record levels. Today, there are two jobs available for every unemployed American. That means more people with the potential to buy, especially first-time buyers.

And while supply chain breakdowns have left some store shelves empty, many retailers are overstocked in some goods, leading to sales and discounts for savvy buyers.

GEEK (KEVIN)

If the Fed's goal was to bring down prices, it’s working. Following spikes of 20% or more in the past 12 months, the volume of price adjustments off super-high prices is now up 69% compared to May 2021.

In a cooling market, buyers also have more choices and opportunities. Over the past year, we’ve seen as many as 10 bidders on a single property, making it hard to score the home you want. Now, inventory is up an average of 8% over last year in many parts of the country — including the Bay Area — which means prices could continue to drop.

And if you’d rather build your dream home — and who wouldn’t? — lumber prices have fallen roughly 56% off this year's highs, and copper is down 18.3%.