Tuesday, January 16, 2018

Selling A Morgan Hill Probate or Trust Home With or Without Tenants


Selling A Morgan Hill Probate or Trust Home With or Without Tenants 

BY 
Real Estate Agent with eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales B.R.E. 01191194
 
Morgan Hill Probate Sale
This is a question I get asked all the time. When an owner has passed and has rental property should the heirs sell the Morgan Hill probate or trust home with the tenants in place, or wait until the lease is up?

While most years I would say wait until the tenants are gone, but with the uncertainty of how the new tax laws  will effect prices and what will happen to the Morgan Hill market that has already shown signs of appreciating with very tight inventory, the answer is not clear cut.


  1.      Morgan Hill school Priority 1 Registration starts in Jan. That is the best chance of getting your child in the school closest to you. There is always a space in a Morgan Hill school for a resident, but getting the one closest to you is best obtained if you are a resident during this period. Selling with tenants in a  Morgan Hill probate rental may allow the buyer to get a leg up on school registration for the next year.
  2.      Interest rates are lower now than they will be next summer. A one million dollar Morgan Hill probate home has a very good chance of having a loan on it so the less a buyer has to pay for the mortgage the more they can afford for the home. For every 1 point increase in interest rates there is a 10 % increase in payment.
  3.      The inventory is very low and the Morgan Hill housing is market still active. It is unknown what will happen as the year goes on. The market could go down as interest rates go up, or if there is a natural disaster, a world event, or terrorist attack.
  4.      Some people who buy Morgan Hill homes in Probate or Trust early are happy to rent the house out until the end of the school year because they do not want to move until school is out if they are relocating.

http://www.marcymoyer.com/trustandprobatesaleshttp://www.marcymoyer.com/trustandprobatesales 

With a Tenant Cons:

  1.      Harder to show Morgan Hill house
  2.      You will not be able to make interior upgrades or stage with a tenant in place so it may depress the price somewhat
  3.      The tenant may be messy or say inappropriate things to potential buyers which could depress the price.
  4.      If the tenant does not have beautiful furniture the professional pictures will not look as good.

Sell Morgan Hill Probate or Trust Home After Tenant Leaves Pros:

  1.      You can have the interior painted, wood floors refinished, new carpet, and any other cosmetic upgrades you want that will help bring in more money.
  2.      You can professionally stage the property and the photos will look much better.
  3.      Much easier to show the house and have open houses which bring in more people and help bring in a better price.

Sell Morgan Hill Home in Probate or Trust After tenant leaves Cons:

  1.      Interest rates will be higher which will depress the price. It is unknown by how much because it also depends on how the stock market is doing, most likely for Apple, Google, Facebook, and Linkedin.
  2.      The limit of deductions for state and local taxes, and for mortgages over $750,000 may depress the market over time more than it is now.
  3.     There is great momentum right now as Google has announced it is expanding to Downtown San Jose. Homes in South San Jose have appreciated so much it is hard to find a good one under a million. Will this last?
  4.      The best time to sell a home in Morgan Hill is in Jan thru early June. The second best is the fall. If the tenants are out in June and the home is prepared in July and Aug and on the market in Sept you have missed the best time, but may get the second best time, but only by waiting until Sept to put home on market.

So as you can see the answer is not clear. No one can say for sure what will happen to the real estate market in 2018. If you are in this situation now it is probably a good idea to add your own Pros and Cons to this list to get a feel for what may work best in your situation.

If you have any questions about selling a home in Probate or Trust please feel free to contact me.
Marcy Moyer
eXp Realty of California
650-619-9285
Specializing in Probate, Trust, and Investment Properties
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Now May Be The Best Time To Buy A Rental Property In Santa Cruz



Now May Be The Best Time To Buy A Rental Property In Santa Cruz 

BY 
Real Estate Agent with eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales B.R.E. 01191194
 
Santa Cruz sales to list price ratio
The rains are starting again. Yay!!! This is great news for California. It is not always great news for Santa Cruz home sellers
Many Silicon Valley rental property investors go to Santa Cruz when the sun is shining and the temps are in the 70's, see what a great place it is, discover how high the rents are and how relatively affordable the Santa Cruz housing prices are, and decide to buy a Santa Cruz rental property in the summer, along with the everyone else.
As you can see from the chart above there was significantly less competition for Santa Cruz homes last winter in the heavy rains than after the rains stopped. The chart shows sales to list price ratios by month.  In general, the more buyers there are the higher the price will be and the higher over list price a Santa Cruz home buyer will need to offer.
I have written about why a Silicon Valley property investor should buy a rental property in Santa Cruz ,  http://activerain.com/droplet/57l7 but just to summarize:
Santa Cruz has a high percentage of residents renting: 63%
Santa Cruz rents are high, $1200+ a bedroom
Santa Cruz Rental Vacancies are low 1.64% in 2015 and getting lower
Santa Cruz housing prices are significantly lower than prices in the Silicon Valley Average sales price in Santa Cruz is current;ly $950,000 and in Santa Clara County $1,400,000
So if you are a Silicon Valley property investor thinking of buying a Santa Cruz rental property, get out your umbrella, put on your boots, and drive over 17 looking for a Santa Cruz rental property to buy.
Marcy Moyer
eXp Realty of California
650-619-9285
Specializing in Probate, Trust, and Investment Properties



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Sunday, January 7, 2018

How To Live In Silicon Valley When You Can't Afford To Buy Here

How To Live In Silicon Valley When You Can't Afford To Buy Here

BY 
Real Estate Agent with eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales B.R.E. 01191194
 
Silicon Valley Real Estate Agent

Many young, well paid Professionals and Tech workers come to the Silicon Valley for good jobs, its wonderful weather, and incredible cultural and family friendly amenities. But they get here and find that the cost of Silicon Valley housing is prohibitive, or impossible to buy buy to the competition in their price range.
Another issue that comes up all the time is that a young buyer can afford to buy a home, but does not want to live where or in what he or she can afford in the Silicon Valley.
Added to this is the new tax bill which severely limits the amount of mortgage interest which is deductible and the substantial decrease in property tax and state income tax detectability. These changes make housing even less affordable for the average Silicon Valley resident
When faced with this dilemma many are choosing to rent in the Silicon Valley instead of purchasing a home in the Silicon Valley.
I know there is a better way, because I have done it myself.
My solution is this:
Buy a rental property and rent your primary residence in the town where you want to live. When renting in the Silicon Valley you can almost always pay less than you would have to to purchase the same home on a monthly basis. You can probably live in a nicer place than you could afford to buy.
However, over time prices go up, so the amount you have for a down payment should be put into Silicon Valley real estate so that you can keep up with housing appreciation and grow your wealth.
In the last 5 years average sales price in Santa Clara County has risen from $800,000 to $1,600,000 for single family homes.
Santa Clara County housing prices

If you purchase a rental property in a less expensive area with at least a neutral cash flow, and spend your monthly housing budget on a rental property you will see the following advantages:
1. If you buy wisely your equity will grow. You should hire an experienced Silicon Valley investment property Realtor to help you pick what makes the most sense.
2. Speak to your accountant but things which are not a tax deduction for a Silicon Valley primary residence, or are severely limited, such as HOA dues, all interest on mortgages, not just up to $750,000, all property taxes, not just the 10K combined state and local taxes, and depreciation. This makes owning rental property very attractive to Silicon Valley investors.
3. The renter will pay your expenses and pay off your mortgage while you get to live closer to work, in a neighborhood with great schools and amenities, in a house that you like.
4. If you buy your rental properties with cash you can use the rent money to pay for your Silicon Valley Rental while reaping the benefits of your rental property.
My rental properties are in Santa Cruz and I encourage my Silicon Valley investor clients to buy there. 

 Marcy Moyer
eXp Realty of California
650-619-9285
Specializing in Probate, Trust, and Investment Properties
@marcyagent
https://www.facebook.com/marcy.r.moyer

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 Home Buying
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The Ninety-ninth Percentile
 
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