Dear Michael: We are retired and want to sell our home and transfer our tax base to our new home, which will be closer to our children. The new home that we want is higher priced than our current home. We were told that if we purchase a home priced higher than our current home, we may not qualify for the tax transfer. Can you please let us know how we can qualify?
Answer: What you are referring to is Proposition 60, which is a constitutional initiative passed by California voters. It provides property tax relief by preventing reassessment when a senior citizen sells his/her existing residence and purchases or constructs a replacement residence worth the same or lesser value than the original. You cannot qualify if you purchase a property at a higher value. If you do, you are subject to the same tax rate of 1.25% per year of the purchase price set forth by Los Angeles County.
You may want to reconsider your plans. There is no point in looking for a property that costs more then the one you own and the only way to find out what your property is really worth is to hire a local Realtor that can assist you in determining the price of your home. If you decide to sell your home and want to keep your tax bracket, you will have to opt for a different home of equal or lesser value.
Dear Michael: I am closing escrow on a home and want to dispute some of the escrow charges that I never agreed to pay. I did not choose this escrow company. They have given me terrible service and I am not in agreement in paying some of their charges. How can I dispute these charges?
Answer: It is unfortunate that you could not choose the escrow company on your purchase. This is a negotiable term but customarily the seller decides. Have you questioned this escrow company about these charges? If not, pick up the phone and let them know of your dissatisfaction with their services and express that you feel that you are overpaying. If you do not have any other closing statement to base your argument on, ask your Realtor to put you in contact with his/her escrow company so you can compare and get some real answers and explanations about some of the charges.
More often than I wish to remember, some escrow companies have been dreadful to work with. The best thing you can do is get your facts, pick up the phone and call. Based on my experiences, you should be able to cut down on some of these charges.
Dear Michael: How do I tell the Realtor who’s been helping me look for a house that I walked into an open house and found one without his help? And should I do anything for him or send him something (he’s been helping me for several months)?
Answer: Since Your Realtor has spent months of his/her time and attention helping you, I’m sure that he/she will be ecstatic that you finally found the one. Congratulations. Now I think you should have him/her write up the purchase contract so he/she is compensated for all of the effort that was spent finding you your home. I think it is wrong for you to write the purchase contract with someone else.
Trust me, in our current market, making an offer one day later will not make a difference. If you decide to go with the listing agent, all the time your agent has spent with you has basically been volunteer work. It doesn’t matter how you found the house. Your agent deserves to get paid, particularly if he/she has put in several weeks or months of hard work. As Realtors, we only get paid when we close escrow on your new home. Most agents are knowledgeable and experienced enough to ensure that your best interests are looked out for and that you get the best deal on the home you choose.
Finding the home is the easy part. Negotiating your offer and getting the inspections, appraisal, title and escrow, and financing are the most crucial aspects. Why leave your agent now when you need him/her the most? Allow your agent to work for you and get paid for his/her hard work and expertise.
Michael Kayem is a Realtor with Re/max/Execs serving Culver City and the Westside since 2001. Contact Michael at (310) 390-3337 or homes@agentmichael.com.
