Don't Overlook a Home Just Because It's Been On the Market For Too Long

Builders, in an effort to combat the dual problem of an increasing population and a declining availability of prime land, are increasingly turning to common interest developments (CIDs) as a means to maximize land use and offer homebuyers convenient, affordable housing. The two most common forms of common interest developments in many states are Condominiums and Planned Unit Developments, often referred to as PUDs. The essential characteristics shared by these two forms of ownership are: Common ownership of private residential property: Mandatory membership of all owners in an association which controls use of the common property Governing documents which establish the procedures for governing the association, the rules which the owners must follow in the use of their individual lots or units as well as the common properties A means by which owners are assessed to finance the operation of the association and maintenance of the common properties Before continuing further, it may be helpful to clarify a common misconception about Condominiums and PUDs. The terms Condominium and PUD refer to types of interests in land, not to physical styles of dwellings. Therefore, when homebuyers say that they are buying a townhouse, it is not the same as saying that they are buying a condominium. When homebuyers say that they are buying a unit in a PUD, they are not necessarily buying a single-family detached home. A townhouse might legally be a condominium, a unit or lot in a Planned Unit Development, or a single-family detached residence. The terms Condominium or PUD will say a great deal about the ownership rights the buyer will receive in the unit and the interest they will acquire in the common properties or common areas of the development. Common interest developments offer many advantages to homebuyers, such as low maintenance and access to attractive amenities. However, there are restrictions and duties which come with ownership of a Condominium or PUD that buyers should be aware of prior to purchase. To acquaint you with various aspects of ownership in common interest developments, the Land Title Association has answered some of the questions most commonly asked about Condominiums and PUDs. What are the basic differences between ownership of a Condominium and ownership of a PUD? The owner(s) of a unit within a typical Condominium project owns 100% of the unit, as defined by a recorded Condominium Plan. As well, they will own a fractional or percentage interest in all common areas of the Condominium project. The owner(s) of a lot within a PUD owns the lot which has been conveyed to them-as shown in the recorded Tract Map or Parcel Map-and the structure and improvements thereon. In addition, they receive rights and easements to use in common areas owned by another-frequently a Homeowner’s association-of which the individual lot owners are members. The above are basic descriptions and should not be considered legal definitions. Besides ownership of my unit, what other amenities will I be acquiring use of and how will I own them? Common interest areas may span the spectrum from the ordinary-buildings, roadways, walkways and utility rooms-to the extravagant-equestrian trails and golf courses-with more usual amenities including community swimming pools and clubhouse facilities. Your ownership rights in common areas will be spelled out in your project’s Declaration of Covenants, Conditions and Restrictions (CC and R’s). The subject of CC and R’s will be expanded upon later in this brochure. As we stated in the answer to the previous question, Condominium owners own a fractional or percentage interest in common with all other owners in the Condominium project, in all common areas. PUD owners receive rights and easements to use of common areas through their membership in a Homeowner’s association, which typically owns and controls the common areas. Some PUD projects, however, provide that the individual homeowners will own a fractional interest in the common areas. Again, in this case, a Homeowner’s association will have the right to regulate the use of the common areas and to assess for purposes of maintaining the common areas. Check your CC and R’s and association Bylaws (basically, rules governing the management of the development) to insure that you understand your rights to use of your unit and common areas. What services will my Homeowner’s assessments help to finance? Your Homeowner’s assessments support not only the easily recognizable-building and swimming pool upkeep, landscape maintenance-but also the unseen-association management and legal fees and association insurance. As well, reserves must be factored into your assessments, including reserves for replacement of such items as roadways and walkways. In the case of condominiums, where ownership is usually limited to airspace within the walls, floors and ceiling of the unit, reserves will frequently fund replacement of such items as roofs and plumbing. Each member of the Homeowner’s association, upon purchasing their unit, must receive a pro forma operating budget from the association. Basically, this will be a financial statement of the income and obligations of the association, which must include an estimate of the life of the obligations covered under the assessments and how their replacement is being funded. What happens if I fail to pay my Homeowner’s assessments? Delinquency fees will be added onto the unpaid assessments. Should your delinquency continue, the association has the right to place a lien upon your property. The lien may lead to a foreclosure if the delinquency is not paid. Of what importance are CC and R’s and Bylaws? CC and R’s and Bylaws are the rules and regulations of the community, meant to guide the use of individual properties and common areas. Buyers should be aware that CC and R’s and Bylaws may be written so as to restrict not only property use, but also to restrict owners’ lifestyles, for instance, spelling out hours during which entertainment, such as parties, may be hosted. CC and R’s and Bylaws are highly important and should be thoroughly examined and understood prior to purchase. They bind all owners and their successors to the rules and regulations of the community. Failure to follow those rules and regulations can be considered a breach of contract. Legal action may be taken against the homeowner for any such breach. At what point in the real estate transaction will I be allowed to review a copy of my CC and R’s and Bylaws? Legally, it is the responsibility of the owner to provide the prospective purchaser with the governing documents of the development (CC and R’s and Bylaws), the most recent financial statement of the Homeowner’s association and notice of any dues delinquent on the unit. The law states that these items should be delivered as soon as practicable; however, the prospective buyer should request to see them as early as possible. If you do not fully understand what is stated in these documents, consult a real property attorney. Should I object to items included in the CC and R’s and/or Bylaws, will I have the opportunity to terminate those items prior to taking ownership? No. The process required to terminate these restrictions is often complex and costly. Termination of restrictions will require, at least, a majority vote by members of the Homeowner’s association, and may require litigation. What if I have further questions regarding Condominium and PUD ownership? Ask any questions you may have before you buy! Don’t wait to take ownership to find out about restrictions and regulations affecting your Homeownership rights.

Buying your home was a big milestone — and now you’re ready for the next one. But selling your home while still living in it can feel overwhelming. The good news? You’re not alone, and it’s absolutely doable with the right approach. Many homeowners remain in their property until it sells. The key is having a plan that keeps your home comfortable for daily life while also making it appealing to potential buyers. Start By Seeing Your Home Through a Buyer's Eyes Preparing your home for showings means shifting your perspective. Buyers aren’t expecting perfection, but they are looking for a space that feels clean, open, and easy to imagine themselves living in. One of the most effective first steps is decluttering and depersonalizing. The goal isn’t to strip your home of character, but to create a neutral environment — similar to a well-kept hotel — where buyers can focus on the space itself, not the belongings inside it. Everyday clutter like mail on counters, dishes in the sink, or overcrowded surfaces can unintentionally make a home feel smaller or poorly maintained. Even when the house is in great shape, first impressions are powerful, and emotional reactions often drive buying decisions. How Much Decluttering Is Enough? “Declutter” can feel vague, especially if your home is busy with family life. A simple rule of thumb is to reduce what’s visible. Try cutting down items on countertops, dressers, and tables by about one-third. Aim to leave only a few essential or decorative items on each surface. Closets and cabinets matter too — buyers will open them, and overfilled storage spaces can suggest a lack of room. When it comes to items you’re not ready to part with, a storage unit isn’t always necessary. If you have space in a garage, basement, or spare room, neatly boxed belongings can often stay on-site as long as they don’t interfere with showings or block access. Making Your Home Look Its Best Without Moving Out Professional staging can help, but it’s not required. Many successful listings use the homeowner’s existing furniture with a few strategic adjustments. Focus on removing bulky or worn pieces, especially in smaller rooms. Light updates — such as fresh throw pillows, clean blankets, or a new area rug — can instantly refresh a space. Adding simple touches like fresh flowers can also improve the overall feel of the home. If you’re deciding where to invest money before listing, curb appeal should be high on the list. The exterior is the first thing buyers see, and if it doesn’t invite them inside, they may never schedule a showing. Clean landscaping, a tidy entryway, and small exterior updates can make a big difference. Staying Show-Ready While You Live There Once showings begin, flexibility becomes important. Buyers may request last-minute appointments, especially in competitive markets. Certain areas of the home should always be presentation-ready — kitchens and bathrooms in particular. Beds should be made, toilets closed, and showers neatly arranged. Having a simple daily routine makes it easier to prepare quickly when a showing request comes in. If you have children or pets, organization is essential. Designating specific areas for toys helps keep the rest of the home tidy. For pets, arranging a temporary space outside or planning short outings during showings can reduce distractions and make buyers more comfortable. Understanding What Your Local Market Looks Like Not all real estate markets behave the same way. Some areas move quickly with frequent showings, while others require more patience. Your agent can help you understand what’s typical for homes like yours — whether that means preparing for a fast-paced schedule or adjusting expectations for a longer timeline. Knowing what to expect makes the process less stressful and helps you stay focused on the end goal. The Bottom Line Selling your home while living in it takes planning, flexibility, and a bit of organization — but with the right strategy, it can be a smooth and successful experience. By keeping your space clean, neutral, and show-ready, and by understanding how your local market operates, you can attract serious buyers without putting your life completely on hold. With guidance from an experienced real estate professional, you’ll be well positioned to move forward confidently and make the most of your sale. RELATED RESOURCES: Contact Me to Discuss Your Options. Selling Your Home As-Is? What to Know First 1st Is Your Home Worth More Than You Think? Housing Market Is Beginning to Shift Heading Into 2026?

If selling your home is on your radar this year, you may be weighing an important decision: Should you sell your home as-is to avoid repairs, stress, and extra work? Or does it make more sense to invest in a few updates so your home shows better and potentially sells for more? In 2026, this choice carries more weight than it has in recent years. Here’s why. Should you sell your home as-is to avoid repairs, stress, and extra work? Or does it make more sense to invest in a few updates so your home shows better and potentially sells for more? In 2026, this choice carries more weight than it has in recent years. Here’s why. -More Homes on the Market Means Conditions Matters Again- Inventory has been steadily rising, giving buyers more choices than they’ve had in quite some time. According to a Realtor.com forecast, the number of homes for sale could increase by another 8.9% this year. With more options available, buyers are no longer forced to overlook flaws. They’re comparing homes side by side—and details like condition, presentation, and upkeep are becoming important again. That shift explains why many sellers are choosing to make at least minor improvements before listing. A recent National Association of Realtors (NAR) study found that 65% of sellers completed small repairs or updates before selling, while only 35% chose to sell their homes as-is.

Home prices have continued to rise steadily — and at the heart of it all is one of the most fundamental principles of economics: supply and demand. In today’s real estate market, we’re seeing fewer homes available for sale, while buyer interest remains strong. That imbalance is fueling consistent price appreciation across many parts of the country, including here in Silicon Valley. Let’s take a closer look at how this plays out. 📍Map 1: Year-Over-Year Home Price Growth. This first map, sourced from the Federal Housing Finance Agency (FHFA), highlights how home prices appreciated across the U.S. from Q1 2020 to Q1 2021. It’s a clear snapshot of the rising values many homeowners have experienced — and it reflects what we’ve seen on the ground locally as well.

Everywhere you look, headlines are buzzing with economic uncertainty—talks of a potential recession, anticipated interest rate cuts, and signals of a cooling housing market. But seasoned investors know that times like these often present the best real estate opportunities. What's Really Happening in the Market? We’re seeing a shift in momentum. Former hot markets like Austin, Miami, and Tampa—once booming during the pandemic—are now slowing down, with high inventory and price drops. On the other hand, Northeastern markets that lagged during the pandemic are now bouncing back, experiencing inventory shortages and rising prices. But the biggest opportunities? They lie somewhere in the middle, in what many experts call emerging real estate markets. These hidden gem cities and suburban areas—often overlooked by institutional investors—offer affordable entry points, strong rental yields, and long-term growth potential. And companies like Rent to Retirement are helping investors tap into these lesser-known but powerful markets. Why Now is a Pivotal Time for Investors? Several key factors are aligning to make this a uniquely favorable time to invest: Inflation is cooling, which reduces pressure on the Federal Reserve to keep rates high. Mortgage rates are easing, with many lenders now offering rates around 6.5%, the lowest levels we’ve seen this year. Big metro markets are saturated, creating riskier conditions for investors due to slowed appreciation and high buy-in costs. When combined, these trends point to one conclusion: Now is the time to look beyond traditional investment hubs and into emerging markets with real potential. What Are Emerging Real Estate Markets? Emerging markets are secondary or tertiary cities, often in the South or Midwest, that are experiencing job growth, population increases, and affordable housing trends. These areas may not be household names, but they’re quickly gaining traction among savvy investors. Examples Include: Boise, Idaho. Huntsville, Alabama. Greenville, South Carolina. Here's why they're attracting attention: Lower Entry Prices: Compared to major markets like Los Angeles or San Francisco, properties in these cities are far more affordable. This allows investors to diversify their portfolios and generate multiple income streams with less upfront capital. Better Cash Flow: Thanks to strong rent-to-price ratios, emerging markets often offer higher yields and more attractive monthly cash flow. Less Competition: With fewer institutional buyers and less speculation, investors face less competition, giving them room to negotiate and find better deals. Government Incentives: Many of these markets benefit from local investments in infrastructure, education, and healthcare, all of which support long-term population growth and stable property demand. What Are the Risks? While emerging markets offer impressive potential, investors must approach them strategically. Volatility in Smaller Markets: Emerging cities can be more sensitive to local economic shifts. A single employer moving out or a stalled infrastructure project can affect values quickly. Property Management Challenges: If you’re investing out-of-state, it’s crucial to partner with reliable property managers and local professionals to ensure proper maintenance and tenant relations. How to Choose the Right Market? When evaluating an emerging market, focus on fundamentals like: Job growth and employment stability Cities with strong industries like healthcare, tech, or manufacturing tend to hold up better in economic downturns. Population trends and migration data Markets attracting young professionals and retirees are great signs of long-term demand. Economic investment and infrastructure development Look for cities with active public/private investments, new highways, or business incentives. Landlord-friendly laws and local policy Favorable zoning, clear property rights, and tax incentives make a big difference in long-term profitability. The Bottom Line: Invest Where Growth is Headed, Not Where It's Been: 2025 is shaping up to be a transformational year for real estate investing. Instead of chasing the big names and saturated metros, strategic investors are shifting their focus to high-growth, high-yield emerging markets. By recognizing early signs of market movement, conducting due diligence, and building relationships with local experts, you can position yourself ahead of the curve—and ahead of the crowd. Ready to explore new opportunities? Reach out today to learn more about top-performing emerging markets and how we can help you start investing wisely. RELATED RESOURCES: 1031 Exchange a Strategy for Smart Investors. Where Are the Best Cities to Invest in Rental Properties? Bay Area Home Prices Jump 6%

If you’ve worked hard to buy a home or build a portfolio of properties, chances are you’re not just thinking about today—you’re thinking about what you’ll leave behind. Whether you want to set your kids up for success or make sure your family’s assets are protected for the future, holding your real estate in a trust is one of the smartest moves you can make. Why Do I Want to Avoid Probate? Probate freezes your assets. If your estate ends up in probate, the bulk of your assets are frozen until the court orders their distribution, which typically takes at least nine months and frequently more than a year. With a Revocable Living Trust, distributions to your loved ones can usually be made almost immediately. Probate exposes your affairs to interested parties. Court proceedings are public. Probate proceedings could expose your financial information to economic predators and disgruntled heirs. With a Revocable Living Trust, your privacy is protected. Protect Your Legacy from Probate One of the biggest advantages of placing your home in a trust is avoiding probate—a court-supervised process that can be time-consuming, expensive, and emotionally draining for your heirs. Without a trust, even if you have a will, your loved ones will likely have to go through probate before they can take ownership of the property. This can delay access, create family conflict, and eat into the value of your estate through court fees and legal costs. With a trust, ownership transfers quickly and privately, so your family can move forward without legal hurdles. Reduce Estate Taxes & Preserve Wealth: Depending on the size of your estate and where you live, estate taxes can take a significant bite out of what you leave behind. Certain types of trusts—like irrevocable trusts—can help reduce or avoid estate taxes, allowing more of your hard-earned wealth to be passed on. It’s a strategy commonly used by wealthy families to preserve generational wealth, but it’s not just for the ultra-rich—many middle-class families can benefit too. Ensure a Smooth Transition of Ownership Trusts provide clarity. You can spell out exactly who gets what and when—whether that’s your children, spouse, or a charitable organization. This not only gives you peace of mind but helps prevent family disputes, especially in blended families or when multiple heirs are involved. You can also assign a trustee to manage the property, ensuring it’s maintained or sold according to your wishes. Plan for the Unexpected If something happens to you and your property is not in a trust, it could be tied up in legal limbo or transferred in a way that doesn’t align with your wishes. A living trust allows you to plan ahead for incapacity and gives your trustee the authority to manage the property if you’re ever unable to. This helps avoid conservatorship battles and ensures your home or rental property stays in good hands. Support Multi Generational Wealth Some families use trusts to keep homes in the family for generations, whether that means allowing adult children or grandchildren to live in the home, or renting it out and using the income to support future family needs. This flexibility allows your real estate to continue working for your family—not just you. If I Became Incapacitated, Couldn't My Spouse Take Care of Everything? If you become incapacitated and haven’t designated someone to take care of your financial affairs, your family will need to petition a court to appoint a conservator. Even if your spouse becomes your conservator, he or she will be subject to ongoing court supervision. No one, not even your spouse, will have the right to make legal or financial decisions for you without a court’s permission. While a durable power of attorney can be used to appoint someone to handle your affairs in the event you become incapacitated, many banks and financial institutions will only recognize a durable power of attorney on their own form. If you have placed all of your assets in a Revocable Living Trust, your spouse or other hand-picked trustee will have legal title to the assets if and when you become incapacitated. That way, your trustee’s authority to manage your assets cannot be questioned, and there will be no need for court involvement. A well-drafted Living Trust will also spell out guidelines for your trustee to follow as to how you want your assets handled during your incapacity, so in effect, you maintain some control even during your incapacity. And, unlike a Will, a Revocable Living Trust becomes effective as soon as you sign it, so it’s there to protect you whenever you need it. Bottom Line: If your goal is to build and protect generational wealth, a trust is one of the best tools available. It protects your property, supports your legacy, and ensures your wishes are followed, all while saving your family time, money, and stress. Whether you own one home or multiple investment properties, it’s worth sitting down with a legal or estate planning expert to explore your options. ✅ Pro tip: Want a referral to a trusted estate planner or trust attorney? Reach out anytime, I’d be happy to connect you with someone I trust. Related Resources: Revocable vs Irrevocable Trust Step Up in Basis The Advantages of Prop 19 1031 Exchange

When it comes to estate planning, one question comes up often: What’s the difference between a revocable living trust and an irrevocable trust? Both are powerful tools—but they serve very different purposes. One offers flexibility, while the other provides protection. In this guide, we’ll break down the core differences between the two, especially as they relate to Medicaid planning, taxes, and preserving generational wealth . Ownership: Who Controls the Assets? A) Irrevocable Trusts: Once you place your property into an Irrevocable Trust, it no longer legally belongs to you. The Trust becomes the owner of the asset. But that doesn’t mean you lose all access or benefits—you can still live in your home, drive your car, or earn income from trust-held assets. The key difference? You no longer personally own them, which makes them off-limits to creditors in most cases. This level of separation offers strong asset protection—something Revocable Living Trusts (RLTs) cannot provide. B) Revocable Living Trusts: In an RLT, the grantor retains ownership and control. You can modify, revoke, or dissolve the trust at any time. While this flexibility is great, it also means the assets are still considered part of your estate and can be subject to creditors, taxes, and Medicaid lookbacks. With a trust, ownership transfers quickly and privately, so your family can move forward without legal hurdles. Can a Trust be Changed? A) Irrevocable Trusts: As the name suggests, these trusts are harder to modify or cancel. That’s exactly why they offer stronger legal and financial protection . However, depending on how it’s drafted, you can still update beneficiaries or provide instructions for managing assets—even while limiting your personal access. B) Revocable Living Trusts: RLTs are fully adjustable during your lifetime. You can change the terms, beneficiaries, and trustees at any time. But again, this flexibility comes with fewer protections . Planning for a Long-Term Care and Medical Eligibility A) Irrevocable Income - Only Trust (IIOT): One of the most strategic uses of an Irrevocable Trust is for Medicaid asset protection. By transferring assets into the trust at least five years before applying for Medicaid, you can preserve your estate and avoid being forced to spend down your life savings to qualify. This planning tool helps families avoid Medicaid clawbacks and protect an inheritance for future generations. B) Revocable Trusts & Medicaid: Assets in an RLT are still under your control—which means they’re counted when assessing Medicaid eligibility . Revocable trusts don’t shield assets from long-term care costs. Who Can Be The Trustee? A) Irrevocable Trusts: Trustees are typically independent third parties , though they can also be a family member or someone close to you. The trustee manages the assets and must act in the best interest of the beneficiaries. The grantor cannot serve as trustee of an irrevocable trust if the goal is to protect assets from Medicaid or creditors. B) Revocable Trusts: In most RLTs, you are your own trustee —with full control over every asset in the trust. You also name a successor trustee to take over if you become incapacitated or pass away. Tax Implications A) Irrevocable Trusts: These trusts have their own Tax ID number (EIN) and file a separate tax return (Form 1041) . Depending on how the trust is structured, income may pass through to the grantor or beneficiaries via a Schedule K-1 . Importantly, trust assets are not included in your taxable estate upon death, which may help reduce estate tax exposure. This flexibility allows your real estate to continue working for your family—not just you . B) Revocable Living Trusts: RLTs are disregarded entities for tax purposes. You’ll still use your personal Form 1040 , and the assets are included in your taxable estate. The trust avoids probate—but not taxes . Do You Want Asset Protection? If your goal is to protect your estate from creditors, lawsuits, or Medicaid spend-down , an Irrevocable Trust is the better choice . With a properly drafted Medicaid Asset Protection Trust , you can shield your home, retirement funds, and other assets from being used to pay for long-term care—while preserving them for your children or heirs. Revocable trusts, while useful for avoiding probate, offer no protection from creditors or government recovery programs. What about Income Tax Returns? Irrevocable Trusts: File a separate return (Form 1041) using the trust’s EIN. Revocable Trusts: Report income and deductions on your personal tax return (Form 1040). Quick Recap: Key Differences at a Glance:

When was the last time you checked the value of your home? If you’re like most people, probably not as often as you should. But here’s the truth: your home is likely your biggest financial asset, and over time, it’s been working quietly in the background—building wealth, month by month—without you even realizing it. Even with recent shifts in the real estate market, there’s a good chance your equity has grown more than you think. What Is Home Equity and Why It Matters Home equity is the difference between your home’s current market value and the amount you still owe on your mortgage. As home prices increase and you continue to pay down your loan, your equity rises too. Let’s break that down with a quick example: Current home value: $500,000 Remaining mortgage balance: $200,000 Your equity: $300,000 That’s wealth you already own—and you’re not alone. 📊 According to Cotality, the average U.S. homeowner with a mortgage has about $302,000 in home equity today. Why You Likely Have More Equity Than You Realize? There are two big reasons why homeowners in 2025 are sitting on near-record levels of equity: 1. Home Prices Have Increased Sharply Over the Last Few Years: According to the Federal Housing Finance Agency (FHFA), home prices nationwide have risen nearly 54% in the last five years. That’s a massive jump—especially if you bought your home before or during the early days of the pandemic. Even if prices in your area have started to flatten, if you’ve owned your home for several years, you’ve likely gained significant equity just through appreciation alone. 2. Homeowners Are Staying Put Longer: Data from the National Association of Realtors (NAR) shows the average homeowner now stays in their home for around 10 years. That’s more time for equity to build up—thanks to mortgage payments and steady home value growth. 💡 According to NAR: “Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.” In other words: the longer you’ve owned your home, the more it’s been quietly growing your net worth. What Can You Do with Your Home Equity? That equity isn’t just a number on paper. It’s a financial resource—and depending on your goals, you can use it to fund your next chapter: 1. 🔁 Buy Your Next Home You can use your equity toward a down payment on your next property—and in some cases, it might even allow you to buy with cash. 2.🛠️ Renovate Your Current Home Need a new kitchen? Want to add an ADU or home office? Tapping into your equity could help you upgrade your space to better fit your current lifestyle—and potentially add more value to your home over time. 3. 🚀 Start a Business or Side Hustle Dreaming of launching your own business? Your home equity could provide the funding you need to get started—with capital for things like marketing, inventory, or equipment. Bottom Line: If it’s been a while since you’ve checked your home’s value, now’s a great time. Even with market changes, there’s a good chance your home is worth more than you think—and that equity could open doors to your next big move, project, or investment. Ready to find out what your home is really worth? 📲 Connect today to run the numbers and explore your options. 👉Thinking About Selling an Investment Property? Let's Talk. 👉 Understanding Capital Gains Taxes When Selling 👉 What is a Step-Up in Basis? A Tax Advantage Explained 👉 Proposition 19: What It Means for Inherited Property Owners 👉 Learn More About Financing Options 👉 Real Estate Glossary: Common Terms You Should Know

Prop 19 changed the game for many homeowners in California especially seniors, families, and those inheriting property. But with new rules around tax transfers and inheritance, it’s natural to have questions. In this blog, we’re breaking down the most frequently asked questions about Prop 19 to help you better understand how it might impact your next move, your family’s legacy, or your long-term real estate plans. Let’s clear things up. Validity Timing: 1. When is the operative date of Section 2.1(b), the new base year value transfer? Answer: Section 2.1(b) came into effect on April 1, 2021. 2. Question: For purposes of a base year value transfer under the provisions of Prop 19, what is the date of the “transfer”? Answer: The date that a base year value can be transferred is the later of either (1) the date of sale of the original primary residence, or (2) the date of purchase or completion of new construction of the replacement primary residence. 3. Question: Is it necessary for both the sale of the original primary residence and the purchase or completion of the new construction of a replacement primary residence to occur in order to qualify for the Proposition 19 base year value transfer? Answer: No. Only one of these transactions must be completed in order to qualify for the Proposition 19 base year value transfer, provided all other requirements are met. 4. Question: Can the replacement primary residence be purchased prior to selling the original primary residence? Answer: Yes. The replacement primary residence must be purchased within two years of the sale of the original primary residence – either before or after the sale. As long as one of the transactions occurs the provisions of Proposition 19 will apply. However, if the replacement primary residence is purchased first, the base year value cannot be transferred until the original primary residence is sold. The homeowner will be responsible for property taxes based on the full fair market value determined as of the date of purchase. Thus, there will be no refund or cancellation of taxes for the period between the date of purchase of the replacement primary residence and the date of sale of the original primary residence if the replacement primary residence is purchased first. Age: 5. Question: We bought a new home in June 2025, and made it our primary residence. We sold our original primary residence on July 15, 2025. At the time, we did not qualify for a base year value transfer under the provisions of Prop 60/90/110. Can we now qualify to transfer our original base year value under the new base year value provisions of Proposition 19 to our replacement primary residence if we file the claim? Answer: Yes. In order to transfer the base year value under Proposition 19, at least one transaction must occur on or after 2021. Since both transactions took place before this date, you have the right to transfer your base year value under the provisions of Proposition 19. 6. Question: I will turn 55 years old in September 2026. Will I be able to transfer my base year value under Proposition 19 if I sell my current primary home and purchase a replacement home after I turn 55 in September 2026? Answer: Yes. In order for you to transfer your base year value, you must be at least age 55 when you sell your original primary residence. Your age when you purchase your replacement primary residence is not relevant. 7. Question: If one spouse is over age 55, but the other spouse is not, do they still qualify for the base year value transfer under Proposition 19? Answer: As long as the spouse who is at least age 55 is on title to both the original primary residence on its date of sale and the replacement primary residence on its date of purchase, then the spouse who is at least age 55 will qualify to transfer the base year value, as long as all other requirements have been met. It does not matter if the other spouse is not at least age 55. Principal Place of Residence: 8. Question: Does the home that was sold have to be the owner’s primary residence at the time of sale? Answer: The home from which the property owner wants to transfer the base year value must have been the owner’s primary place of residence as of one of the following: (1) the date of sale of the original primary residence, (2) the date of disaster that resulted in the substantial damage or destruction of the original primary residence, or (3) within two years of the purchase of the replacement primary residence. Ownership: 9. Question: Can I have a co-owner on title and still qualify to transfer my base year value under Proposition 19? Answer: Yes, there is no requirement that the homeowner who is over 55, or severely disabled, or a victim of a wildfire be the sole owner of either the original primary residence or the replacement primary residence. 10. Question: Under Proposition 19, can the base year value be transferred when one spouse (age 65) stays in the existing home and the other spouse (age 67) purchases another home of equal value if they are separated and/or divorced? Answer: In order to transfer the base year value, the original primary residence must be sold and 100 percent reassessed to current market value. A transfer between spouses, whether during the marriage or pursuant to a marriage settlement agreement, is excluded from reassessment under section 63. Thus, in this situation, the spouse who purchases another home will be unable to transfer the base year value because the original primary residence was not sold and reassessed to current market value. Location: 11. Question: What counties are participating in Prop 19? Answer: The provisions of Proposition 19 apply to all 58 counties in California. Thus, a base year value from an original primary residence may be transferred to a replacement primary residence that is located anywhere in California. There is no requirement that a county enact an ordinance in order to allow an intercounty base year value transfer under the Prop 19 provisions. 12. Question: I would like to know if I would be able to qualify for Proposition 19 if I am 62 years old and I am buying a primary residence in California. I will be selling my primary residence in Georgia. Answer: In order to transfer a base year value under Proposition 19, both the original primary residence and the replacement primary residence must be located in California. Thus, a base year value cannot be transferred from an original primary residence located in Georgia. Transferring Base Year Value Multiple Times 13. Question: If we already used the one-time base year value transfer provided under Prop 60|90|110, will we be able to transfer our base year value again under Proposition 19 and, if so, how many more times can we transfer our base year value? Answer: Regardless of whether you already used your one-time transfer of your base year value under Prop 60/90/110, you are able to transfer your base year value three times under Proposition 19. Value Comparison Test: 14. Question: If I sell my original primary residence and purchase another home as my replacement primary residence, can I still transfer my base year value if my replacement primary residence was purchased for more than what my original primary residence sold for? Answer: Yes. Under the provisions of Prop 19, when the full cash value of the replacement primary residence is equal to or less than the full cash value of the original primary residence, the new base year value of the replacement primary residence is the factored base year value of the original primary residence. However, when the full cash value of the replacement primary residence is greater than the full cash value of the original primary residence, the new base year value of the replacement primary residence is the difference between the full cash value of the replacement primary residence and the full cash value of the original primary residence plus the factored base year value of the original primary residence. Related Resources: What Is Prop 19? A Homeowners Guide Step-Up in Basis Explained: What Homeowners Should Know? Capital Gains Taxes in California: How They Impact Home Sales