- CVTV VIDEOS
- Business News
In view of recent events in the economic/political world, this question is on a lot of people’s minds…even for Carmel Valley San Diego homeowners.
And while a valid question, the answer is…it depends.
It all depends on your individual situation.
Are you in a situation where it would be a short sale (you owe more than your home is worth?) or is it an equity sale.
If a short sale, you must consider the state bill that passed on 7/15/11 where if a bank (1st or 2nd loan) agrees to a short sale, they forfeit their right to pursue you for a deficiency judgement. (but does not address any tax liability with the IRS – please check with your tax accountant/attorney)
This law may sound good, but banks may be less willing to accept a short sale, since they are no longer allowed to pursue your assets. So your net worth may come in to the decision making process.
If an equity sale, (the amount you sell your home for will cover paying off your loan and all expenses involved with selling) you should consider what your plans are. In the Carmel Valley San Diego community, most homes are equity sales.
Do you want to purchase another home – in which case, selling at a low point in the market, will allow you to buy at the low end of the market (and lock in a low property tax base).
Some folks feel the market will go up if they wait it out, and choose to wait and sell at a higher price. But when they do sell, and then purchase again, it will be at a higher price (and once again, a higher property tax base. Additionally, if they have any capital gains on the sale, that may be subject to taxation)
There’s more to consider, as this is a highly complex question, and everyone’s situation is different. Also, no one has the proverbial “crystal ball”, so it’s best to consult a Realtor for the latest information on housing trends and your short/long term goals.
Additionally, as stated before, please check with your tax accountant/attorney when it comes to buying or selling real estate!
Wag more, bark less!
This article was written by Rich Kushner.