Real Estate

What Are San Francisco's Most Expensive Neighborhoods?

A new study shows that the Pacific Heights/Cow Hollow neighborhood has the most expensive listings in San Francisco with 8 homes listed at more than $10 million. Russian/Telegraph & Nob Hills district has the most expensive average price per square foot at a whopping $1,616.

Curious what about the most affordable neighborhoods in San Francisco are? You can check those out here.

If you need help navigating the Bay Area real estate market, give us a call at (415) 295-6370. We pride ourselves on being 100% honest with clients and potential clients and will make sure you work with the best real estate agent possible for buying or selling your home.

The Most Expensive Homes Sold In SF In 2015

The most expensive homes sold in San Francisco in 2015 were in Pacific Heights, including a $31 million home. You can view a slide show of the top ten most expensive homes sold in SF in 2015 here.

If you need help buying or selling a home, contact us at Doug@BLGProperties.com or 415-295-6370. We woud love an opportunity to help you find your ideal home.

Why Whole Foods, Starbucks and Trader Joe's Could Be Your Best Neighbors

A new study shows that a Whole Foods or Trader Joe's opening in a neighborhood results in a more rapid increase in home prices.

In fact, homes within a 1/2 mile of either Whole Foods or Trader Joe's are worth more than twice as much as the median home price in the rest of the U.S.

Being located close to a Starbucks has also been shown to have a positive affect on the value of homes.

And so if a Whole Foods, Trader Joe's or Starbucks opens close to your home, toast a cup of java to the likely positive appreciation that will result in the value of your home.

Need help buying or selling a home? Please contact us at 415-295-6370.

What Is A 1031 Exchange?

Typically when you sell a property you have to pay taxes on the capital gain.

A few exceptions apply to this rule, including a 1031 exchange which allows an investor to differ the capital gain if they invest in a property of a "like-kind".

It is key to work with a trust advisor in making sure that all of the boxes are checked for the tax deferral to apply, such as:

(i) making sure the replacement property has the same or greater amount of debt and is of a "like-kind"; 

(ii) within 45 days from the date of sale of the relinquished property you identify up to three potential replacement properties and

(iii) you may identify up to three replacement properties and acquire one, two or all three of the properties.

Interested in learning more about 1031 exchanges? Please contact us at Doug@BLGProperties.com or 415-295-6370.

 

Why Should You Hire A Real Estate Agent To Buy A Home?

It is not a legal requirement to work with a real estate agent to buy a home, but here are seven reasons why you should consider doing so:

1. Market Knowledge Of Fair Purchase Price.

A solid real estate agent will have their thumb on the pulse of the real estate market and can best advise you on whether a particular listing is the best fit for you or if you should be patient and wait for another opportunity .

2. Advises On Anticipated Cost Of Improvements.

An honest real estate agent can tell you how much it will likely cost to make anticipated improvements to a home so you can determine a fair offer price.

They can also introduce you to quality contractors to make those improvements once the purchase has been completed.

3.  Brings To The Table A Team Of Trusted Advisors.

An experienced real estate agent will not only add value with their services and expertise, but will be able to recommend a quality mortgage broker and home inspector.

In addition, because the real estate agent works with the mortgage broker and home inspector on a repeat basis there will be added accountability for them to be responsive and to provide quality services for a fair rate.

4.  Provides Additional Purchase Options.

A savvy real estate agent will provide you with additional options. For example, you might have your heart set on a particular condo across the street from At&t Ballpark but a good agent will provide you with additional listings to make sure that condo really is your best option and to at least consider some alternatives.

5. Off Market Listings.

Some of the best deals are never listed on MLS. A well connected real estate agent can  sometimes present you with "pocket listing" opportunities that the real estate agent heard about through word of mouth that have not hit the open market yet. Pocket listings can be particularly important in a hot real estate market to possibly find you a purchase option at a good value before it hits the open market.

6.  Attention To Non-Market Disclosures.

A knowledgeable real estate agent will be able to spot any non-standard disclosures made by the home seller that might indicate future homeowner problems. In addition, a solid real estate agent will know the professionals who can provide accurate estimates of what it will cost to fix those problems once they pass from being on the home seller's plate to being the home buyer's problem.

7. It's Free!

If you do not purchase a home, your real estate agent will earn no commission. Even if you do purchase a home, your real estate agent's commission will be paid out of the sales price of the home by the seller at closing. In California, if you are not represented by your own real estate agent the seller's real estate agent can get both sides of the commission. You might as well be represented by a zealous advocate of your interests instead of having the seller's real estate agent theoretically represent both your interests and the seller's interests so they can earn twice the commission.

Are you looking for a rock star real estate agent to help you find the perfect home? Please e-mail us at Doug@BLGProperties.com or call us at (415) 295-6370.

6 Ways Owning A Home Saves You Money On Taxes

Thinking of buying a home to save some money on taxes? Here are a few reasons why buying your dream home might help you pay less to Uncle Sam.

1. Mortgage Interest Deduction.

Each year you can deduct from your taxable income the amount of money you paid in interest on up to $1 million in mortgage debt. 

In particular, a huge portion of your mortgage payments in the first few years of owning your home will mostly go to interest and only a small portion will go to the principal of the loan.  This deduction alone can add up to thousands of dollars. Your lender should send you IRS Form 1098 which will show how much  interest you paid on your home mortgage in the prior year.

2. Home IMprovements.

In addition to mortgage interest, you may be able to also deduct the interest on a home equity loan or line of credit for improvements to your home.

There are limits on the amount you can deduct if the home equity loan or line of credit is more than $50,000 if you are filing single or $100,000 if you are filing married or jointly. In addition, the amount you can deduct also has a limit if your mortgage is more than the fair market value of your home.

3. Expenses When You Move.

You might be able to write off the expenses you incur moving to your new home if you purchase a house that is at least fifty miles closer to where you work.

4. Taxes On The Appreciation Of Your Home Value.

For most assets, you have to pay capital gains tax if you sell the asset for more than what you paid for it.

For example, if you buy Apple stock and the stock increases in value before you sell it, you might have to pay capital gains tax on those gains.

In contrast, if you buy a home that is your "primary residence" for at least two of the past five years and it increases in value, you might not have to pay capital gains tax on the first $500,000 in gains if you file jointly or $250,000 if you are single. 

5. Mortgage Insurance Premium.

You are likely paying a mortgage insurance premium if you paid less than a 20% down payment on your home. You may be able to deduct this mortgage insurance premium as mortgage interest on Schedule A of your Form 1040 if you and your spouse earn less than $109,00 each year.

6. Property Taxes.

Finally, you may be able to claim an income tax deduction for the property taxes you pay on the assessed value of your home.

As an added bonus, unlike the $1 million limit on the home mortgage interest tax deduction, there is no dollar limit on the amount of real estate taxes that can be deducted.

 

Your county's acssessor's office should send you a statement showing the amount of property taxes you paid.

Propety taxes taxes can be written off in the year they are paid, not the year they are due. 

What can't you deduct?

Unfortunately, you cannot deduct:

(i) Utilities, such as electricity or water;

(ii) Home and title insurance;

(iii) Homeowner association fees or

(iv) Transfer taxes in a personal home sale.

This article provides some of the most common tax savings for home owners. That being said, because each person's tax scenario is unique you should definitely consult with your CPA to see if these potential tax breaks might benefit you.

Are you looking for a rockstar real estate agent to help you purchase a home? If so, give us a call at (415) 295-6370.

Disclaimer: This article discusses general tax issues, but it does not constitute tax advice.  No reader should act or refrain from acting on the basis of any information presented herein without seeking the advice of tax counsel.  BLG Properties expressly disclaims all liability in respect of any actions taken or not taken based on any contents of this article.