How Much Does It Cost To Sell My House?

How Much Does It Cost To Sell My House?

Home sellers on the central coast of California are curious on how much it costs to sell their house and what fees are associated with selling their house.  This will give you a good estimate on what to expect when you list your home for sale. The fees in selling your home are approximately 1%-3% of the sale price of the home to cover the closing cost fees, including title and escrow fees. 5-6% for Realtor Commissions and some small Additional Fees that would be  based on exactly when you close escrow.

The Escrow Fees covered are the following:
1. County Transfer Fees
2. Title Insurance
3. Half the Escrow Fee - (Typically it's a fee shared with the buyer)
4. Natural Hazard Disclosure Report - NHD
5. HOA Transfer Fees - (If you are in a Condo, PUD or Association)
6. 1-Year Home Warranty
7. Termite Inspection
8. Drawing of Deeds
9. Misc. Fees

Realtor Commission
Depending on the negotiated realtor commission you will be paying 5-6% of the purchase price. You as the seller typically pay all of this fee. Depending on the your state, these fees may vary. Don't skimp on these fees. Remember 1/2 the Realtor Commission goes to the buyers agent. A listing with low commission rates may give the buyers agent an impression you aren't easy to work with or the agent may not show your home to prospective buyers. Starting off on a good foot with the right impression is a winning strategy to start with.

Additional Fees to consider:
1. Property Taxes Owed
2. Mortgage Loan Balances
3. Interest Owed on Loans
4. HOA Dues Owed (If you are in a Condo, PUD or Association)
5. Costs for Repairs - Termite, Home Inspection results

If you are considering selling your home, ask your realtor to get you a Sellers Net Sheet from a Title & Escrow company. This sheet will give you actual costs associated with each of the itemized fees I have in this Blog.  Once you get the numbers together you will have a better understanding of what your bottom line will be. When you are ready to put your home on the Central Coast Market, give me a call to discuss getting a Net Sheet and starting the process. I'm here to help!

Please leave a comment if you feel this was helpful. Or share this with friends and family. I always appreciate your referral business.

"I'm Your Central Coast Listing Agent!" Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Savvy Buyers are looking for High-Impact Homes For Sale!

Savvy Buyers are looking for High-Impact Homes For Sale!

Even in low-inventory markets like San Luis Obispo, today's buyers are looking for High-Impact amenities in homes.
Here's how can you catch the eye of savvy buyers with these additions to your home that are affordable and have maximum impact.

• Add USB outlets in areas of the home that don't typically have USB ports. Many people use their computer all over the house. Adding outlets in the kitchen, bathrooms and bedrooms are convenient will also appeal to the younger tech savvy buyer.

• Update wiring for a flat screen TV and internet on a wall of the living room. Most buyers have flat screens that will be mounted on the wall. Give them the ease of moving in without having to do this part themselves.

• Make a small kitchen look bigger by adding mirrors at the back splash area to bounce light and dimension. Or add some additional prep space by adding an island or island on wheels. You only need 30" in between the counter and an island. Having this option is always appealing to buyers.

• Replace door knobs and front door hardware to give the house a fresh and newer look. Choose a style that is in keeping with the style of your home and replace them. This fix can be done by you in under a couple of hours. It's money well spent!

I hope these suggestions were helpful and add to your ideas of how to get your home ready to sell with the highest impact.

Please leave a comment if you feel this was helpful. Or share this with friends and family. I always appreciate your referral business.

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

How To Determine the Price of Your Home

How To Determine the Price of Your Home

When your home is on the market you have one chance to make a first impression with your listing price. Make your best effort to price it to sell!

When choosing the final listing price number,  lean on your realtor to help you on the market is for your type of home. Is the market going up or down and why. Your realtor will help with establishing unique amenities your home has to market the property to get the best price. Your realtor can also give you comparable property reports (CMA) to show you recent sales activity.  Properties that sold in your area that are similar to your home are the best indication of where your home should be priced.

In the end you determine what you want to list your home for. Your realtor is your professional advisor to the current market. Taking their advice will get your home sold quickly and for top dollar. If you over price your home your home may become stale and people may think there's something wrong with your home. Not the impression you need to sell your home for top dollar.

Start out strong and you will be happier with the results and better off financially.

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

The Future Of San Luis Obispo Housing

The Future Of San Luis Obispo Housing

There will be a Central Coast housing Market Shift in the next coming 20 years. As baby boomers and their echo boomer children become homeowners, they will significantly effect the housing market. Echo Boomer children will make up approximately 65 million people born between 1981-1995. This will create a demographic challenge and opportunity.

The aging baby boomer population will swell the nation's senior population by 30 Million over the next 20 years. Typically people over the age of 65 are releasing more housing than they are absorbing, this demographic shift will help to increase the supply of housing. Currently we have a lack of affordable housing available for them to buy. With the economic downturn home construction was halted for over 7 years, creating a deficit in housing currently. With interest rates at record lows and banks wanting to lend money, buyers are competing for purchases on available homes on the market.

Generation Y, the Millennial Generation, Generation Next, Millennials, Net Generation or Echo Boomers. Whatever you want to call the world’s largest collection of twenty and thirty-somethings, they are coming to a town near you.

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Refinancing to a Shorter Loan Time Frame

Refinancing to a Shorter Loan Time Frame

Changing the length of your mortgage time frame can save you big money. Interests rates are still very low and if you haven't reaped the benefits of Refinancing your home to a 3.5-4.5% interest rate, Do it! Many people refinance their home with another 30 year loan. But while you are talking to your lender, see if choosing a shorter time frame on your loan may save you money and possibly keep your payments close to where they are now.

 
I know you like examples like I do and I think this paints a vivid picture:
A current loan on your home of:
$400K at 5.75% interest for 30 years is $2,334.29 monthly

Refinancing the same amount for a lower interest rate and shorter terms looks like this:
$400K at 3.75% interest for 20 years is $2,371.55 monthly.

By adjusting the interest rate and the length of your mortgage you are paying almost exactly the same amount monthly, but the 10 years you took off the loan time frame has saved you over $271,172.13 in interest payments. $ 97,713.67 was saved in interest by doing a 20 year loan and $173,458.46 was saved by refinancing to a lower interest rate.  Isn't that Incredible!

Use my mortgage calculator to see what your monthly payment could be with a shorter time frame. Talk to your lender today to see if you qualify to do a refinance and if you can lower your length of the loan. Contact me if you need a lender referral. You will save yourself Mucho Dinero!

Remember, I'm always available for any of your referrals. Contact me today!

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Own a Home Close to Work and Save Money

What is the financial impact of living outside the city where you work?

A gallon of gas is currently $3.75 a gallon. A person that lives in Paso Robles and works in San Luis Obsipo uses up approximately 2.5 gallons of gas to go to work and return home on a daily basis. Based on only 20 days of work a month, that’s about 50 gallons of gas a month, or $187.50. This doesn’t include wear & tear, maintenance and automotive repairs costs. The cost for only gas for the year would be $2,250. Based on California's current Milage Reimbursement Rate of .55 per mile,  your monthly expense to commute an average of 35 miles to work would be $770 and your annual expense would be $9,240!

If you lived in the same city you worked you would save thousands of dollars a year in gas, wear & tear, maintenance and car repairs.

If the $2,250 was applied to your mortgage payment every year instead of towards gas, what would be the impact?  Based on a mortgage of $450,000 with a 3.75% interest rate for 30 years, you would be able to reduce your final payoff date to 26 years and 2 months and save $43,055.10 in Interest on the loan because it was paid off faster.

We all can’t live where we work, but if you are looking to shorten your commute, save time and money, give me a call to begin your search. I'm here to help.

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

San Luis Obispo Real Estate Information

San Luis Obispo Real Estate Information

I have a great way to send you info for you to view at your convenience.
If anyone is interested in some free and helpful "around the house" tips,  San Luis County real estate scoops and other central coast fun, please joining my newsletter! My goal is to provide subscribers with useful and powerful tips anyone can benefit from. Click here to Subscribe to it today!

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Sell Your San Luis Obispo Home in Today's Market!

Sell Your San Luis Obispo Home in Today's Market!

Well, I am truly asking EVERYONE if they know of anyone looking to sell because we are literally running out of available homes to show buyers in the San Luis Obispo area.

Buyers, more than ever are clamoring and making multiple offers on great San Luis Obispo County homes. If you have been thinking about selling your home, now is a great time to sell and possibly upgrade into that home of your dreams. Here's a list of the Top-5 Reasons to put your home on the market.

1.  Be a Move up Seller...
If you want a larger or smaller home, you can sell and purchase the home of your dreams at a discount. If you move into a more desirable home now at the beginning of the upswing of the housing market, you will be in a position to gain larger equity as prices eventually appreciate.

2.  Inventory is at a 20 year LOW & demand is HIGH. It’s a sellers market... 
We have over 30% LESS homes available for purchase from this time last year. Buyer interest is high for any home put on the market. Just over 40% of listings in the MLS are currently UNDER CONTRACT and in escrow. Sell your home quickly and potentially receive multiple offers. Potentially putting more cash in your pocket.

3.  Interest Rates are still under 4% - Buyers are out shopping...
With low inventory and many buyers wanting to purchase, renters are even looking to purchase their first home with rents being comparable to monthly mortgages. This creates a larger pool of buyers available to buy. This is also what is creating multiple offer situations fro most homes on the market today.

4.  Distressed Property competition is lower than ever...
Bank owned property and Short Sale homes aren't a thing of the past yet, but their numbers have diminished significantly. Regular sale properties can now sell in a market where the crappiest bank owned home is not a comparable price point for their beautiful home. The diminishing distressed properties also allow home prices to rise with buyer demand, giving way to higher purchase prices.

5.  Selling your home in this market is perfect timing...
If you are considering selling, do not allow naysayers or negative media opinion shape your view of the housing market. As a realtor in the daily housing trenches, I see San Luis Obispo moving into a strong recovery and with a great future ahead. Take this opportunity while everyone else is listening to the negativity to be ahead of the pack. Timing couldn't be more perfect to pull the trigger.

I hope knowing this has been helpful. If you are want to sell your home, an opportunity is knocking to get top dollar for your property. Call me today to learn more.

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Listing Agent for San Luis Obispo Property

Listing Agent for San Luis Obispo Property


There's no better time to sell your home on the Central Coast!  Are you thinking about selling? I know I can get you the very best price for your home.

I have the privilege of working with great sellers in San Luis Obispo County. They are all experiencing the benefit of selling their home in this market. The buyers looking to buy your home are looking for great homes in this amazing time of extremely low interest rates. Many buyers have waited to purchase till now. With rates being low, buyers can afford more home for their dollar, making it the best time for them to buy.

What's the benefit for you as a seller in this market? You get the benefit of multiple offers, a large pool of buyers looking and bidding on your home. The low inventory of today's market gives the seller the advantage to pick and choose the highest and best offer on their property. This can produce above asking price offers and a bidding war to get your home.

When you are contemplating putting your home up for sale, call or email me today to begin the process. I will get you to your goals of selling your home.

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Looking for a San Luis Obispo Sellers Agent?

Looking for a San Luis Obispo Sellers Agent? ... Well look no further!
I look forward to meeting you and exceeding your expectations in selling your home.

Property in San Luis Obispo County is always desirable. If you are thinking about selling your home I know how to sell your home quickly and for top dollar. Contact me to learn more.

Today savvy buyers are searching the internet looking for great homes to buy. Inventory is low for our Summer Season but there is a flurry of buyer activity looking to buy your home. Now is a great time to put it on the market. Sellers are seeing multiple offers on their homes with typically the home selling for above the asking price. Our distressed property inventory is slowing down and buyers have less homes to choose from, creating this frenzy of activity.

Weather you are looking to down size your home or looking to expand your square footage, I know how to sell your home to get you to your goals. Give me a call or email me today to learn more. Visit my website and use my resource tools.

Again... I look forward to meeting you and exceeding your expectations in selling your home.

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

San Luis Obispo Home Market Analysis... What's my home worth?

San Luis Obispo Home Market Analysis... What's my home worth?

The housing prices have begun to eek up as low inventory and eager buyers flood the market looking to buy in these times of low interest rates. With this great opportunity to get top dollar for your home, how do you really know what your home is worth?

The easiest way to get a price range is to call your local San Luis Obsipo realtor (Traci Ferguson) and ask for a Comparable Market Analysis (CMA). Many people don't know that I have had education in doing market analysis for homes, much like an appraiser would do, for homes in the San Luis area. You could get a formal appraisal done for $400-600 dollars, but your results will be very close to what I can get for you in my research, for free.

What I do is search for sold homes that are similar to your home that have sold in and around your area with similar amenities, condition and qualities. These comparable homes are analyzed and only the homes that fit as a close match will be used to help me give you a range of where to price your home to get the best possible sales price.

With that information you can decide if now is the best time to put your home on the market. It's a wonderful tool to keep you informed and educated on the biggest investment you make in your life... your home!

Get educated with me and I will get you top dollar!

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

San Luis Obispo Housing Market Is On Fire

San Luis Obispo Housing Market Is On Fire!

If you are even thinking about selling your home, NOW is a phenomenal time to do that. 
Let me tell you why...


Recently I have been working with buyers in my business and the lack of homes available for home buyers to buy have been very low. Historically during the Spring/ Summer months San Luis Obispo Real Estate market has the majority of available listings for sale. We also see an increase in buyers during this time as the weather gets better and buyers begin to purchase.

Well...we have yet to see this increase of homes on the market. This lack of homes available to buy has created bidding wars on homes that are on the market. I recently have worked with 2 buyers who wanted to make offers on homes, that just came available to buy, where we were not the first offer but the 11th or the 9th offer on the property. The offers were not only close to the listed asking price but sometimes well over the asking price if the home was in great condition.

The extremely low interest rates coupled with prices being at affordable prices are prompting investors and first time home buyers to making the plunge into making a purchase now. I believe we are feeling the "bottom" of the market in our city and the time to act is now.

If you are considering putting your home up for sale, take the first step and learn what your home is currently worth. Call or email me today to get a complete Comparative Market Analysis (CMA) into your homes value. It could be worth more than you think!

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

New San Luis Obispo Homes - Serra Meadows

New San Luis Obispo Homes - Serra Meadows

This Blog is older and doesn't reflect the newest floor plans, elevations, pricing and schedules for the Serra Meadows development. Please view blog posts from November 2012 on for the accurate information.

As you drive around the city of San Luis Obispo I'm sure you have seen the billboards for the new development off of Prado Road. The new Serra Meadows development is the newest development of 177 Single Family homes in San Luis Obispo, starting in the mid $400,000.

The new homes will be 3–5 bedrooms, 2 1/2–3 1/2 baths and ranging from1,500–2,300 sq. ft.  The home styles are fashioned in the quintessential early 20th Century style—Craftsman, California Bungalow, Spanish Revival and Provincial. Seven unique, open and livable floor plans incorporate “green” building elements, such as abundant natural daylight, large roof overhangs and energy efficient appliances. The spacious feel of each home is accentuated by open kitchens, large windows and inviting porches and patio areas that create comfortable, livable spaces. The neighborhood landscaping is classic Mediterranean with colorful and drought-resistant plantings.

The latest news on the development is that there are four model homes that are currently underway this May 2012. There will be four different floor plans that will be constructed for the public to see and walk around in. There will be "The Sage", which is not on the website, "The Peony", "The Magnolia" and "The Willow" available to view Mid-August. Once you are pre-qualified with their lender you will be on the waiting list to choose the lot location of your home. You will be able to choose your homes interior finishes, like counter tops, bathroom fixtures, lighting and paint colors.

If you or a friend or family member are curious about this development and want the latest scoop on what is going on with it, I am your resource. Call me or email me to discuss it, I'm here to help.

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Traci's Your Realtor for it all...

Traci's your San Luis Obispo Realtor for it all...

Yesterday I got a call from a potential buyer who found my information on a sign I have at my listing on Royal Way in San Luis Obispo. Anne called to learn more about my listing and she was asking all the right questions.  We got into the property details and she was happy to hear all of the information I was giving her about the property.  But, as we were talking, I was not only giving her info she was asking about but I was asking her questions to get a sense of what her objectives are in her next home purchase.


But the reason for this Blog post is because while I was talking to Anne I wasn't just regurgitating the information about the home. Rather, we got into discussing the current housing market and the pro's and con's of living in the San Luis Obispo area.  I want my current and future clients to know that my job as your Realtor is to not only helping you find a home but to be a beacon for ALL aspects of housing.  That can include current housing market, moving, repairs, consultants, San Luis Obispo city & county items, schools, local amenities and calendar events in the area.  It's my job to be "In the Know".   I'm happy to share my knowledge and information to better your life and your families life.  Let me be your resource for these things.  I am just a phone call away.  In the epic words of Tom Cruise in Jerry Maguire, " Help me , Help you..."

Your realtor is your resource for your neighborhood and lifestyle!

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Move-Up Buyers In San Luis Obsipo

Move-Up Buyers In San Luis Obsipo

In San Luis Obispo we have wonderful diversity of home styles, amenities and locations. You have the luxury of living on top of a mountain, the vast beauty of a low lying valley over looking vineyards or the privilege of living at or by the ocean. Our county offers a vast array of home buying possibilities to new and Moving-On-Up buyers.

Are you a Move-up buyer?
If you started out owning a 2 bedroom condo and now have the ability to purchase a larger home, you have the potential of being a move-up buyer. The definition is someone who owns a house, but wants to move into a bigger and better property. The Move-up is about growing your home buying expectations and taking a step up in home ownership.

What are the benefits?
One of the biggest benefits is low San Luis home prices. With interest rates and home prices being depressed the opportunity to buy more home for your dollar is a reality. All of this is relative. The facts are the house you are selling is not worth what it was at the peak of the market, but neither is that house you want to move up into. With the depressed costs for homes, you have the opportunity to buy more house now and reap the benefits of growing equity and your property value going up with time. A win win situation!

 Ok!, lets do the math, easy math I promise:

So lets see if this is a good time to take advantage of the buying opportunities and if selling now and moving up might not be a bad idea to take advantage of.
As a first time  home buyer you bought "Home-A" at the peak of the market it would have cost you $300K. If you were a move-up buyer and bought "Home-B" at the peak of the market it would have cost you $500K. The gap between the two prices is $200K. But if you bought "Home-A" at the down turn of the market it would cost you $270K and the cost for "Home-B" at the down turn of the market would have cost you $450K. The gap between the prices is $180K, a savings of $20K between buying at the peak of the market vs. the current downturn of the San Luis Obispo market.

So in this scenario you are getting more home for less money. This is the basic premise to why if you can "Move On Up" and buy a bigger home, now is the perfect time to do it. When prices are still low and Interest rates are under 6%.

		"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Cost vs. Price - What higher interest Rates can do to your purchasne power

Cost vs. Price in San Luis Obispo - What higher Interest Rates can do to your purchase power.

A good rule of thumb is for every 1% increase of interest rate there is a 10% decrease in purchase power. It's surprising to most buyers. This new year is going to bring many new opportunities to find a home. If you are still possibly considering a purchase you may want to know this very important particular bit of information.

The higher interest rates go, the less home you and your family will be able to afford, finance or purchase. If you were looking at property in the $500,000 range and interest rates were at 4.23% now they will eventually steadily be going up to 5.23%, meaning that if you wanted to keep your mortgage payment the same you would only be able to purchase a $450,000 home. Even with a 1/2% change in interest rate it can effect your purchase power greatly. I recommend getting back into finding a house as soon as possible to get the most house for your dollar, before interest rates go up and property prices stay the same.

Please see this example to show your buying power depending on what interest rate you lock your loan in at.

As a buyer it's vital to know your market and what options you have. I'm here to guide you through the process. If you have any questions about this I would be happy to explain it further.

If you are interested in looking for a home in the San Luis Obispo County area, please call me or email me I'd be happy to help.
 Traci

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Reduce Your San Luis Obispo Property Tax Bill!

Reduce Your San Luis Obispo Property Tax Bill!

Do you own a home in San Luis Obispo that has declined in property value? In California we live in a high property tax area and you can save a bundle by fighting your assessment. The County has been reassessing properties all over, but they haven't yet gotten to everyone. You can do something today to get your home reevaluated. Doing it yourself can seem like a daunting task, but there are easy steps to reduce your bill to a much more realistic value of your home, lot or condo.

Example 
I love examples so here's one to give you a clear scenario:
Let's say you live in San Luis Obispo and the value of your home has reduced from $600,000 to $450,000. A huge drop! A reassessment of your bill could lower your annual bill from approximately $7,500 to $5,625, an annual savings of $1,875. That's two round trip tickets to Italy!

So now what?
SLO County has a website that walks you through the process. The "Decline in Property Value" Application is available to download and fill out. There is even a Decline in Value Estimator that can tell you if you are eligible for a reduction. You will need your 9-digit Assessment Parcel Number (APN) to do it. The Parcel number is on your annual property tax bill. You will also need to put in a fair market value of your home based on homes that have sold in your area recently. A Realtor can get you this number, email me if you need a more accurate number. Then it spits out your revised Assessed Value. Then fill out the "Decline in Property Value"form and get the county moving on your reassessment. Do wait till they do it, it could take years.

Options
If you aren't up for the task you can outsource the work to a local real estate lawyer or a property tax appeal expert. They will handle everything and charge 25%-50% of your first years tax savings. I recommend doing it your self, SLO County makes it simple to do.


I hope this is helpful and if you live in another California County or another State you can do this too. Many forms and resources online can assist you in being proactive with reassessments. I encourage you to do this as part of your new year resolution. Take the extra money and go an amazing vacation and send me a postcard.:)


Are you in the market to buy or to sell your home? Give me a call today!

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

1031 Exchange in San Luis Obispo - What Investors know!

1031 Exchange in San Luis Obispo - What Investors Know!

When you own a home or business and you would like to sell your property and move into a larger home or buy investment property, there is a way you can save on taxes. That you should know.
Recently Jay Peet from  Investment Property Exchange Services spoke to us about how a 1031 Exchange, works and how investors can save on transferring funds from one property to another.

What is a 1031 Exchange?
It's the exchange of property to a like kind property where any capital gains taxes would be deferred. There are rules and guidelines to follow depending on the type of property.

Jay spoke about the four aspects of a 1031 Exchange, the L.T.V.V. :

L - Like Kind: The sale of your property must be of like kind to the replacement property, meaning that they are both being held for investment purposes. You can't go from a sale of an investment property to a purchase of a primary residence.

T - Time Frame: When your escrow closes on the sale of your property the clock starts and the exchanger has 45 days to identify a replacement property and 180 days to close escrow on the identified property.

V - Vesting: Whoever is on title of the sold property will be on the title of the purchased property. The relinquished property must be the buyer on the replacement property.

V - Value: The exchanger must purchase the replacement property(s) using all the cash money from the sale of their relinquished property to defer 100% of the gain. If any of the cash is pulled out from the sale of the sold property that money would then be taxed. The purchase property must be equal to the net sales price of what they sold.


If you have any additional questions or would like help with a 1031 exchange, Contact Jay Peet 805-636-4944 jay.peet@ipx1031.com


If you would like to sell your San Luis Obispo investment property through a 1031 exchange, contact Traci for your buying and selling needs. I'd be happy to help.

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

What Income Should You Have to Get The Home You Want?

Your level of income is only one piece of qualification puzzle when you are in the market for the home of your dreams. Lenders will review other things, such as your credit score and your total amount of debt, when considering you for a loan. Remember, your debt takes away a big part of your income. So even if you meet the lenders general guidelines for income level, you'll be denied if you are paying too much money toward your other debts (because you would have less money left over each month to put toward a mortgage payment).

There are a few factors, but you can use 30% as a rule of thumb. In other words, most lenders want your annual income to equal around 30% of your mortgage amount. So based on this rule of thumb, if you wanted to qualify for a mortgage loan of $300,000, you would need an annual income in the neighborhood of $90,000. If a married couple makes $45,000 each, they should qualify for a $300,000 loan. Your lender can work with your individual situation to get you the largest loan possible.
There are numerous types of loans and ways to qualify. Some first time buyer loans make it very easy to qualify with little money down. Some FHA loans require as little as 3-4% down payment.

It's important to shop around for loans and lenders. Large banks may offer different loan packages than smaller local banks or brokerages. It's important to shop for your loan and see what choices you have. Ask your Realtor for referrals to lenders in your area.

We strive to make it easy for you!
Visit my Mortgage Calculator page filled with additional information.
For more information about Real Estate on the Central Coast, please contact Traci Ferguson by E-mail or by phone directly at 805-235-6396.

Buying a Home in San Luis - Tax Benefits

As a home buyer in SLO you have tax benefits that will save you money every year. Your mortgage interest and real estate taxes are tax deductible and anyone with a mortgage can enjoy this tax benefit.

During the early years of the home mortgage, most of your monthly repayments go towards your interest, with little payment towards the capital. Tax benefits are therefore very useful for first-time home buyers, especially during the early years of acquiring the mortgage. The early part of your mortgage payment is primarily paying on the interest of your loan. This interest payment is fully tax deductible. As you pay more on the amortized home mortgage over a longer time frame, more of each monthly payment goes towards paying the principle, and less towards interest. This means that with time, you lose some of your interest write-off as your equity in the property increases.

It is important for you to note that you can take these tax deductions if you change from standard deduction, which all tax payers are entitled to, to itemized deductions. In the case where your itemize deductions, including home mortgage interest and property taxes, do not exceed the standard deduction amount, it is better for you to take standard deduction.

The following three components of your home mortgage are tax deductible:

1. Interest on your home mortgage
2. Property taxes
3. Loan points for a purchase mortgage fully deductible in the year that they are paid. It is noteworthy that in refinance, the points are written off in increments over the term of a home mortgage. (See my blog post on When to pay down points)

We strive to make it easy for you!
Visit my Mortgage Calculator page filled with additional information.
For more information about Real Estate on the Central Coast, please contact Traci Ferguson by E-mail or by phone directly at 805-235-6396.