How the COVID-19 Pandemic has Affected Homeownership

With many people forced to work from home due to the COVID-19 crisis, homeowners are re-evaluating their needs for the future. They are discovering that they don’t necessarily need to live close to work or that working from home may be a more viable solution for their family. This has broadened the home buyers’ options in regards to location (and affordability). Current homeowners are looking into expanding their homes to include an in-home office space. Click on the link below to read more on this topic.

https://tinyurl.com/y2calaeb

New TAX – Measure E, City of San Jose

San Jose will be voting on Measure E – a tax aimed to ease affordable housing and address the homeless crisis in the city.  It adds to the existing “county transfer tax” of $1.10 per $1000 and the “city transfer tax” of $3.30 per $1,000 with an ADDITIONAL $7.50  per $1000 for homes between $2,000,000 and $5,000,000.  Rates increase on homes above $5,000,000.

This measure was created due to a failed 2018 bond measure which would have required a 2/3 majority to pass.  Measure E is a “general” tax which flows into the city’s general fund and thus can be passed by a simple majority of voters.  Since it only applies to homes over $2,000,000 in value, voters with lower-valued homes (as well as renters) can vote on this tax and be unaffected by it – voters cause the measure to pass and can be exempt from the outcome based on the value of their homes.  City leaders cannot legally restrict the use of the general fund to the projects intended so these funds can be used for “other purposes”.

Seller Cost Example:

San Jose home sells at $2,000,000, seller pays the $1.10 per $1,000 county transfer tax and one-half of the city $3.30 per $1,000 city transfer tax. If Measure E passes seller pays an additional $7.50 per $1,000

 

Seller-pays 100% of county transfer tax = $2,200

Seller pays 50% of city transfer tax = $3,300

Seller-paid Measure E tax = $15,000

Total = $2,200 + $3,300 + $15,000 = $20,500

 

If you plan to sell a $2,000,000+ home in San Jose you should know about measure E!

Plan to Sell This Year? Prepare Now…

If you are planning to sell your home this year and are currently “homebound” like the rest of us, use this time to prepare.  Preparation takes more time than painting, landscaping, staging.  Start now – you have nothing to lose… Read the article at:  https://tinyurl.com/wep27kq

Buying or Selling a Home – Virtually

Even with the current “shelter in place” order, today’s technology has enabled Americans to continue with their quest for homeownership. Some of the technical tools available:

• Virtual meetings with real estate and lending agents, buyers, sellers
• Online property searches and virtual tours
• Electronic document signature
• Online payment of transaction and/or closing costs
• Mobile notary escrow signoff and eRecording of title documentation

Click on the link below for more details:

https://tinyurl.com/qpxdg3b

Easing Housing Fear with Facts

The global impact of the COVID-19 virus has taken a toll on the world’s economy, including the real estate market. The current instability of the stock market is causing sellers and buyers to pause as their financial situation has taken a hit downward and fear of a recession looming large. But, historical data of the past 5 recessions shows that a recession doesn’t necessarily mean a housing crisis. In fact, home values increased during 3 of them. Click on the link below to read more on this topic.

https://tinyurl.com/vz4xd2q

Today’s Low Interest Rates Benefits Buyers

If you’re in the market to buy a home soon, you can take advantage of the lowest interest rates since 1971. That translates into a lower monthly mortgage payment. But, interest rates fluctuates constantly so waiting too long may impact your buying potential. Click on the link below for more details.

https://tinyurl.com/rs7has9

Selling your Home? First Impressions Make a Huge Difference

If you are thinking of selling your home soon, real estate experts agree that curb appeal has the highest impact to potential buyers. There are several home improvement projects that can help you get the most return on investment (ROI). Some of these projects will cost you a pretty penny upfront but it will pay off in the long run. Click on the link below for the top 10 home improvement projects to consider for the best ROI.

https://tinyurl.com/r7plnng

National Cut Your Energy Cost Day

Today is the “National Cut Your Energy Cost Day” but energy-conscious homeowners will want to practice these tips year-round. Click on the link below for some tips on how to easily reduce your home’s energy consumption.

https://tinyurl.com/vwvj4h8

Small Homes Trending Now

While the older generation has been known to downsize to smaller homes once they become empty nesters, you may be surprised to hear that increasing number of millennials have a preference for smaller homes as well. Even newly built homes have decreased in square footage. Click on the link below to read more on this topic.

https://tinyurl.com/yh8e8tzf

Preparing Your House for the Market

If you’re thinking of selling your home within the next few years, here are a few tips on how to get a better ROI (return on investment).  You don’t want to spend a lot of money before you sell your home, but if you are considering a sale in the near future and can enjoy these updates for the time being you may want to consider them:

• Make sure your roof is in good condition. If necessary, replace or make any necessary repairs.
• Replace old flooring with fresh hardwood, laminate, or engineered wood. Buyers will most likely want to replace old and/or damaged floors so do it for them beforehand.
• Upgrade your air-conditioning and gas furnace units to be energy-efficient.

https://tinyurl.com/vnmq3bq