Pasadena CA Homes & Condos

Time to Increase the Capital Gains Exclusion for Primary Residence

Doug Willis — Tue, 01 Nov 2022 17:39:08 +0000

Let’s go all the way back to 1997. It was then that Congress created the Capital Gain exclusion for a primary residence. For a Single taxpayer, it was $250,000 or $500,000 if you file a joint return with your spouse.

During this time the Social Security Cost of Living Increase has increased 59.8%.

California House representative Jimmy Panetta (D-CA) and Mike Kelly (R-Pennsylvania) introduced the “More Homes on the Market Act”. If passed, this bill would increase the capital gain exclusion on a principal residence to $500,00 for single filers and $1,000,000 for joint filers. This would be very welcome news to California homeowners.

The original Capital Gains exclusion was passed in 1997 with the Taxpayer Relief Act and has never been indexed for inflation. Capital gains taxes run anywhere from 15-20% depending on your income. It’s certainly reasonable to think cutting the Capital Gains tax would free up some housing inventory. We have spoken with several people who would like to move to a smaller house in a different location but the taxes are keeping them where they are. Also, consider the local tax money that would now be available if some of the 20+ year homes are now turning over. Being a real estate broker I have had discussions with several homeowners who would sell their property today but the thought of paying those prohibitively high capital gains taxes prohibit it.

Consider the homeowner who purchased their property around 1960. The property tax bill was a little over $1000 per year. The elderly homeowner can no longer take care of themselves so they are moved into a managed care facility. The surviving children can’t sell the house to pay the bills until the parent passes away. Whereas if they could sell without a tax penalty the new owner would now have a property worth $900,000 generating much more tax revenue for the City and State.

However, let’s continue jumping over the dollars to get to the dimes.

Will it pass? My guess is probably not. Those opposed will say it’s another benefit for the wealthy and in an election year, there are just too many other distractions.

It’s a shame you have to die so your heirs can reap your tax benefit. Death is the ultimate tax strategy, unfortunately, it is a big price to pay.

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Just Listed in Altadena – 3 bed – 3 Bath w/ Swimming Pool

Doug Willis — Tue, 09 Jun 2020 06:19:14 +0000

Address: 949 Concha St.
Zip: 91001
City: Altadena
Price: $1,125,000
Year Built: 1927
Bedrooms: 3
Baths: 3
Square Feet: 2035 (assessor)
Lot Size: 7425 sq ft. (assessor)
Year Built: 1927
For Information: Doug Willis, phone: 626-755-0910
up2date Real Estate | BRE# 01334541

Thinking of Selling your Home? Download our free guide…Preparation, The Key to a Successful Home Sale… Don’t let overlooked mistakes cost you money!

Cape Cod

See What Other Homes Have Sold For:

Market Analysis

Here are some of the highlights:

Video Tour

Downstairs

Upstairs

Outdoors

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Marketing Homes For Sale in the Covid 19 Era

Doug Willis — Thu, 30 Apr 2020 18:56:36 +0000

Real estate has always been a very emotional process. It is emotional on the person or persons selling the home thankas to the many memories that have been created, the family get-togethers, the graduation parties, sleepovers, kids crawling on the floor, then to learning to walk, and the family discussions around the dinner table.

It is an emotional purchase for the new buyers as well. They are wondering if they are making the right decision, are they getting in over their heads, will they be able to sell it someday and make a profit? How much will it cost to remodel, will I be able to afford the payments?

Real Estate is a very Sensory Experience,

Every property has a different feel to it. It can best be described as comfortable, peaceful, or it can satisfy your list of desirable characteristics that you want in your new home. It can be none of those items and something completely different. That is the unique thing about emotions, they can come and go at any time. They can change instantly.

Marketing Homes For Sale

The current manner in which homes are presented for sale has been dramatically changed. At present, gone are broker caravans, Open Houses with 3-20 visitors at a time have become a thing of the past, forget about seeing the property on a moment’s notice, Poor quality photographs and verbally challenged listing descriptions are a ticket to unsold inventory.

Real Estate Technology

Virtual showings have replaced property tours. A “ZOOM” meeting has become the new Sunday afternoon Open House. A technology called Matterport enables you to see the inside of the property room to room and by removing the ceiling.

To give you an idea of how the Matterport technology works here is a video of how the technology works on a Spanish Fixer in Pasadena we have for sale.

Current Market Conditions

It’s actually much better than you would probably think.

Despite the ‘Closed for Business” sign across most of the US, and the over-under stock market, the current real estate market is showing signs of activity. Homes are selling and in many cases selling quickly. I believe this is attributable to the cost of money. When interest rates are low and very favorable there is a demand for housing. Interest rates are looooow.

Interruptions occur, standard ways of doing business are disrupted and new innovations take place to fill the void.

Now if only we could find some toilet paper.

Download our free PDF – Preparation, The Key To A Successful Home Sale

Check out these other Homes For Sale

Pasadena Condos under $500,000

Pasadena Short Sales

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Open House Tips

Doug Willis — Wed, 25 Mar 2020 23:39:06 +0000

Attending an Open House serves a couple of different purposes and these Open House Tips may provide you with a better understanding of how to obtain more information and help get your offer accepted. It serves the curiosity of the neighbors and drive by’s to see how you decorate and furnish your home. These visitors are easily identified by their comments such as; “we are just beginning to look”, “I am looking for a friend or family member who is moving here” or “I live down the street”. This is a great way for the agent to make some contacts and can provide an idea of what a visitor’s home could be worth. Plus more visitors create the perception that the demand for the home is high.

The second group of attendees is really the main focus of the article. These are the serious home buyers. The folks who may have made a few offers and had no idea of how competitive the market is.
These people are coming in with an idea of what they want in their new house and hoping to see how it compares with their wish list.

For all of you who are trying to work your open house schedule around your kid’s soccer games here are a few Open House Tips to get the most out of your property visits.

The Introduction

Introduce yourself – there is a good chance the agent hosting the open house will be the seller’s agent. Make sure you introduce yourself and if you have an agent you are working with mention who they are and what company they are with. Many buyers come in and are hesitant to mention they have an agent and in fact, they make the hosting agent believe they are not represented. Or they mention well we do have someone who has shown us a few houses but we are not really committed. Any agent who has been in the business a few years has heard this and knows you DO and you Will be working with that agent. So be honest and upfront with your intentions, You certainly do not want the seller’s agent talking about how you tried to deceive her/him at the open house.

Pre-Approved? Say So

Also if you have been pre-approved it’s a good idea to mention that as well along with the lender you are working with. This shows your intention as a serious buyer.

After the intro’s walk around the house taking note of the features you like and things, you might like to change. Does your budget allow any changes and updating are you going to have to live with things the way they are for a while?

Open House Questions to Ask

After you have looked around get back with the agent and ask some questions such as

Was an inspection done prior to listing and if so, can I have a copy?
What other reports or seller disclosures do you have that I could see?
What do you think are the best features of the house?
What would you change or modify?
Are you aware of any structural problems with the house?
Do you know of any issues with the roof, foundation, plumbing, HVAC (heating and air conditioning) or electrical issues?
Have any of these systems been upgraded or are they original? and finally, ask the agent
What would you do to add value to the house?

Check Out These Open Houses

updated daily
Pasadena Open Houses
Altadena Open Houses

Need to Sell Your Home Before You Buy?

Download our free report on how to prepare your home for sale and avoid the costly mistakes that cost you money once you get into escrow. Preparation is the key to a Successful Home Sale!

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Pasadena Sidewalk Fees

Doug Willis — Thu, 20 Feb 2020 19:05:45 +0000

Pasadena sidewalks offer a safe alternative to walking in the street especially this time of year. Having the opportunity to get outside and enjoy the sunshine and cool weather is a nice alternative to snow and ice. If you do decide to get out with the dog, kids or just put on headphones, you are bound to have occasionally stumbled due to the uneven surface. It is most likely caused by an underlying tree root.

The City Giveth & The City Taketh

Have no fear and take solace in the fact that the City has a solution to this potential face planting incident. Now would be a good time to go out and look at your sidewalk. Notice the wedge of black asphalt between two blocks of concrete? Congratulations, you are now part of the solution, albeit unknowingly.

You have been assessed your share of sidewalk assessment fees. Most residents don’t find out about this invisible fee until it is time to sell the house. It just kind of attaches itself to your property and lies dormant until you decide to sell your home. It is part of the Occupancy Certificate program now referred to as the Pre-sale Certification program. It is generally discovered during the escrow process.

Just one other reason it makes sense to download our free pdf on Preparing Your Home for Sale. Knowing about this in advance allows you some options on how to better prepare for it.

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Seller Declined Our Offer, How To Move On

Doug Willis — Wed, 08 May 2019 18:05:32 +0000

Trying to buy a house in this market over the last several years has been extremely challenging. Finding the perfect house that fits your budget probably does not exist. The next step is to lower your expectations and increase your budget. At best, you may just enter a different pool of buyers whose experiences are very much like yours.

Chances are if you have been house hunting, the agony of defeat has become a familiar if not expected consequence. Having your initial offer accepted on the first house you decide to purchase is rare. I would venture to guess it is even non-existent.

Nobody said it was easy, everybody said it was expensive and emotional.

What Makes Buying a House Different?

Touring houses for sale involves Life Planning. We can see our self through the art of visualization, living in the house, raising our kids, looking out the kitchen window, entertaining in the back yard.

Life unfolds in front of us for those few minutes and that’s when we know we have the right house.

Buying a house is a very emotional decision and we become attached to the anticipated outcome. Those few days between when the offer was submitted and the seller’s response can produce anxious feelings.

When was the last time you went to Best Buy and stood in front of the washers and dryers and pictured yourself enjoying the features and convenience of your new appliances? You probably didn’t rush home to call your best friend and let them know that your long search for the perfect washing machine is finally over.

If you are successful and the Seller accepts your offer, congratulations.

On the other hand, if you’re not the chosen party, how do you handle the rejection and move on?

Jim Fortin Podcast

I have been listening to the above episodes and he talks about expectations and outcome. The way I interpret this is that we become attached to the anticipated outcome and then we are disappointed when the outcome is different than what we had expected.

The initial repudiation is hard to accept and then the second-guessing begins. Is it our financing, was our letter to vague, was our price not high enough?

I have seen Seller’s reject offers based on the above and also I have decisions made on none of the above. As with buying, selling can be very emotional too. The old saying is that people buy on emotion and justify with facts or their own rationale. Sellers can be no different.

Everyone has their own story as to why or why not.

Be Patient, Your House is Out There

Here is one last anecdote to consider. Look at your life for the last 10-20 years and the decisions you have made. These are the agreements you made with yourself or partner. It is what got you to where you are today.

What if you made a different decision when you had the choice of A or B? How different would your life and relationships be today had you decided differently? I look at my own decisions and I think, I did not get everything I wanted at the time I wanted it, but things have worked out very well and I am one lucky guy.

My guess is that things have worked out pretty well for you and will continue to.

Search our Pre-Established Links to find your home

Pasadena Homes for Sale with Two Masters
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Pasadena Homes for Sale with Swimming Pool

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Preparing Your Home for Sale – How to Reduce Repair Requests

Doug Willis — Tue, 26 Mar 2019 22:16:14 +0000

Preparing your home for sale is the key to more money and less stress.

Your house has been listed for sale for 30 days.

“Good news,” said your agent on the other line, “We have received an offer”.

After a couple of days back and forth negotiating the usual price and terms, an agreement is finally reached. It is lower than what you originally wanted, but based on what you have been hearing in the media, you decide to accept it. You enter escrow.

Just because escrow has been opened, don’t assume the negotiating has ended.

Your goal is to get the most money possible by selling your house at the highest price.

The Buyer’s objective is to pay you less during the second round of potential price reductions.

How does that happen? You ask.

As long as the escrow process is open and ongoing it is a living breathing entity. It can move back and forth and advance to a closing. It is alive until one party cancels, then it dies.

A good buyers agent may schedule several inspections. First the standard general home inspection and then possibly plumbing, sewer, fireplace, electrical, roof and pool if it exists. It is easy and common these days to spend up to $1500 to check the condition of the property.

Eliminate the Buyer’s Options

Odds are on the Buyer’s side that each one of these inspections will turn up issues that need to be repaired and addressed. When homes are 60 – 100 years old obsolescence and deterioration have occurred. Construction materials and processes have changed. Each issue will usually have a monetary value applied to it.

The equity you had when you reached an agreement can quickly begin to evaporate when you begin to negotiate the repairs and the changes which the buyer is proposing.

The ideal time to think about this is not during a 17 day inspection period but before you put your house up for sale. If a $5000 paint job can net you an additional $20,000 on the sale of your home, then spend a few dollars to investigate the current condition of your home. Seeing it through the eyes of the Buyer or home inspector can also save you thousands in the sale.

Most everyone likes surprises, however, surprises during the escrow and inspection process can be very expensive and they never work in favor of the Seller. Once uncovered, they will do one of two things: 1) cost you money or 2) allow you to put your house back on the market and start all over because the buyer has new information that has changed their mind.

Download our FREE TIPS

There are several things you can do to minimize the issues a buyer may find with your property and minimize the cost of possible concessions. Save yourself time and money!

Download our free pdf. “Preparation”, The Key to a Successful Home Sale,

Consider the graduating high school senior facing the escalating high cost of college. There are plenty of opportunities to apply for a multitude of available scholarship money to help defray tuition. The application process may take some time but the potential rewards can be a few thousand dollars.

The same situation applies when selling your property.

That is why the name of our free pdf is “Preparation”, the Key to a Successful Home Sale.

Many of the things you can do for yourself, others may be better for your agent to take care of, providing they do the research.

Believe it or not, a Buyer may be willing to pay you more upfront with the intention of negotiating the repairs in hopes of a lower price. Furthermore, they may think that after you have been in escrow for two weeks you may be more acceptable to a price reduction as opposed to putting your house back on the market and starting all over again. Often times negotiating your existing offer to a successful close can be your best option provided you can make it a win-win situation.

Everything is all smiles and giggles until it becomes time to remove all of the contingencies and go forward with the purchase. If you have performed your “Preparation” as advised in the free pdf, you will be in a great position to sell your home.

Pasadena Craftsman Homes
Pasadean Open Houses
Pasadena Spanish Style Homes
Altadena Hmes with Guest Quarters

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February Rains Affect Home Sales

Doug Willis — Wed, 06 Mar 2019 20:58:46 +0000

What does rain in Pasadena have to do with basketball in Kentucky?

I had the opportunity to live in Louisville, Ky before moving to California. Louisville is a great town with big city attractions and a small town feel. Basketball in that part of the country is a way of life. If you needed to do something, just wait until the University of Kentucky or the University of Louisville was playing basketball on TV. Nobody was out, the town shuts down.

Much like Los Angeles in the rain.

February was a wet month here in Southern California. The report on the radio said it was the wettest February in 50 years. March may not be too far behind with rain expected the first week.

Pasadena YTD Home Sales

Looking at the first two months of the year and trying to see any trends or predict any outcomes is very premature, but somebody has to do it. Real estate activity here in Pasadena really begins to kick into gear at the beginning of April, so the first quarter is similar to a golf tournament. Anyone can lead after the first round on Thursday, but who has the game to finish the round on Sunday?

Single Family

Sales of Single-family homes, which is really the barometer of the real estate market were flat. We have not seen any real changes in the number of units sold in 2019 vs 2018. What did change however was the median price. It fell from $944,000 last year to $$902,400 this year.

A decline of 4.5%.

With only a small sample of less than 100 homes, it could easily be a mix issue. Homebuyers who have been trying to buy a house for a few months have been told to wait until the market slows down, there will be less competition, fewer multiple offers and possibly more available inventory. In other words Dec-Feb. Higher end buyers may tend to fit the more traditional “selling season” and decide to wait until closer to the end of the school year, electing to postpone a buying decision until the April-June period.

Condominiums and Townhomes in Pasadena

Now take the numbers you just read above from left to right, and read the sales results for Condos and Townhomes from right to left.

In other words, these numbers were opposite those reported in Single-family.

Unit sales declined from 66 last year to 51 this year (23%), but the median price increased to $640,000 from $605,000, or 5.5%.

Possible reasons for the increase in median price is all of the newer homes being constructed are $700,000 +. Developers are not building any low-income units for sale. And with the lower sales units being recorded a few higher end sales can make the median price higher.

Analyze This

I have provided my thoughts on what is happening in the market but we all know what opinions are like. So I would encourage you to make your opinion known. At the end of every business day someone somewhere tries to explain the stock market and why it was up or down. Reasons such as inflation fears, trouble in the middle east, low earnings reports, etc., etc.

Post your comments on social media using the hashtag #up2datereasons.

Just Listed Condos and Townhomes in Pasadena

Pasadena Condos for Sale under $500,000

Pasadena Luxury Condos for Sale

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Alhambra 6 Unit Apartments for Sale

Doug Willis — Mon, 18 Feb 2019 21:48:01 +0000

This well-maintained Alhambra income property is located in the heart of the city. With easy access to the I-10 freeway and Freemont Avenue, this property enjoys long term tenants, a very low vacancy rate. There is no rent control. The property consists of 4 separate buildings with 6 units consisting of 4 – 1 bedroom/1 bath units and 2 – 2 bedroom/1 bath units, a sideyard located in the Southeast corner and six covered parking spaces. Each unit also has its own washer/dryer connections. Call or email for additional details.

Property may qualify for Residential financing due to 2 separate parcels.

Address: 2536 & 2540 W Ramona Rd.

Zip: 91803

City: Alhambra

Price: $1,850,000

Number of units: 6

Price per Unit: $308,333

Total Bedrooms: 8
Total Baths: 6
Square Feet: 3904 (assessor)
Lot Size: 8484 sq ft.
Year Built: 1949
For Information: Doug Willis, PH: 626-755-0910
up2date Real Estate | BRE# 01334541

Looking for an investment or income property? See these other available listings:

Pasadena Fixers

Altadena Fixers

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California’s Prop 5 – How a “No Brainer” Fails

Doug Willis — Tue, 13 Nov 2018 22:46:56 +0000

I recall the story of a young salesperson attempting to make his case to the buyer of an 80 store grocery chain on why they should carry his product versus the competition.

He used facts, figures, independent data, charts and graphs to support his story in making a compelling argument. When he was finished presenting the Buyer looked at him and firmly said “NO”.

The salesman responded in a curious manner. He asked how they could continue to support such a product that seemed to hold less sales and profit opportunity for the Company than his product did? It just did not make sense, the facts certainly seemed to support his presentation.

The buyer casually responded, ” Don’t try and figure us out”.

That salesperson was me, and when something seems unexplainable, I refer back to this quip I received, ‘Don’t try and figure us out”. Some of the best advice I received.

However, there is one thing I still do not understand.

How Did Prop 5 Lose?

This seemed like a no-brainer, the Vegas odds were in its favor, but somehow it lost.

In case you were wondering what Prop 5 was – it basically allowed a California homeowner 55 or older to transfer their property tax base to their new residence, no matter the value of the new home or location.

On its face, this seems like a win-win for everyone involved. Take Pasadena for instance. Many of the homeowners who would take advantage of this new law have been in their house for 10, 20 or 30+ years. If you have been in your home this long your property taxes are much much less than your neighbors who purchased in the last few years thanks to Prop 13 which passed in 1978. If you have lived in your home since Moses, Prop 13 has been a godsend for you. On the other hand, if you are a newer homeowner, you should receive priority Parade seating since you are paying a disproportionate share of the tax burden.

The house in question was purchased in 1960 for $20,000, the taxes are not much more than $950 per year. Now that house sells today for $800,000 and the new taxes are now $7200 (approx). The new owner gets a property which otherwise would have never been available, the City gains an additional $6250 in tax revenue and the Sellers move to a new location. Win- Win – Win.

If that is the case why did Prop 5 fail?

1) Proponents and backers did a poor job of explaining the benefits of Prop 5. If you are 55 or older or approaching that age you are well aware of the benefit you are currently entitled to under Prop 90 and Prop 60. Prop 90 allows you to transfer your property tax base to another principal residence of equal or lesser value within certain counties that participate and Prop 60 allowed a property tax transfer within the same county again with equal or lesser value.

How many under 40 voters are aware this exists?

2) California voters never meet a tax they did not like especially if it affects someone else. Voters approved a tax on the wealthiest Californians a few years ago, under the “you make more you should pay more” rationale. Therefore why should older voters who have all of this equity in their home be awarded a tax break? They can afford to pay it. They already get a break at Denny’s.

3) Timing This election voters approved a sales tax increase to fund Pasadena City Schools, which by the way failed a few years back. California voters failed to rescind the gasoline tax under the purported guise of repairing the State’s roads and highways. We like to think we are doing a public service by increasing our tax burden for the intended good these additional funds will produce.

California has some of the most generous taxpayers you can find. Just don’t try and raise the rent.

Fool me once, shame on you, fool me twice, shame on me.

In the meantime, I guess the rest of us will just keep reading about how the state economies in Texas, Nevada, Oregon, and Tennessee just keep growing and growing thanks to so many Californians moving into their State.

I think I have this one figured out.

Also see;

Pasadena Spanish Style Homes for Sale
Pasadena Homes with Guests-Maids Quarters for Sale

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