Navigating the San Diego Real Estate Market: A Guide for Sellers Over 55

So, you're over 55 and thinking about selling your home in sunny San Diego? Let's dive into the nitty-gritty of what you need to know about transferring your property tax base and making the most out of your downsizing journey.

Understanding Proposition 19

First things first, let’s talk about Proposition 19. This California law allows homeowners over 55 to transfer the taxable value of their primary residence to a new home anywhere in the state. This is a game-changer because it means you can move to a new place without facing a massive property tax hike.

How It Works

Here’s the scoop: When you sell your San Diego home and buy or build a new one, Proposition 19 lets you transfer your original property’s assessed value to your new property. This can be done up to three times. The trick is to make sure you purchase or build your new home within two years of selling your old one.

Key Requirements

To qualify, you need to meet a few conditions:

• Be at least 55 years old when you sell your home.

• The sale and purchase (or construction) of the new home must occur on or after April 1, 2021.

• Your original property must have been eligible for the homeowners’ or disabled veterans’ exemption.

• Your new home must also qualify for one of these exemptions.

Why This Matters

By transferring your property tax base, you could save thousands of dollars each year. Let’s break it down with an example. Suppose you sell your home for $700,000 and it had an assessed value of $225,738. If you buy a new home for $730,000, the assessed value of your new home can stay at $225,738, saving you significant money on property taxes.

Steps to Transfer Your Property Tax Base

1. Sell Your Original Home: Ensure it meets the eligibility criteria.

2. Buy or Build Your New Home: Do this within two years of selling your original property.

3. File the Claim: Complete form BOE-19-B and submit it to your County Assessor’s office within three years of purchasing your new home.

Additional Tips

• Your new home’s market value should not exceed 100% of your old home’s market value if bought before selling the original property, 105% if bought within the first year after selling, and 110% if bought within the second year.

• This transfer can be particularly beneficial if you're moving to a less expensive area within California.

Final Thoughts

Downsizing can be a smart move, both financially and practically, especially in the vibrant San Diego real estate market. By leveraging Proposition 19, you can enjoy a new home without the burden of increased property taxes.

For more detailed guidance, reach out to your local San Diego real estate expert. We're here to make sure you feel informed, empowered, and ready to make the best decisions for your future.

Questions? Feel free to reach out. I would be happy to help. You can reach me at 619-818-2992.

Chris Spade

Keller Williams.

CA DRE #01785713 CA DRE #01295699