Working on proposition for November ballot; would save $1,000 per year on average

The only law protecting seniors and other property owner dollars against inflation and real estate is Proposition 13. The most your real estate taxes can be raised is 2% a year under Prop 13.

Presently Contra Costa County Assessor Gus Kramer and several other assessors throughout the California are working to increase the homeowner’s exemption from $7,000 a year to $100,000 a year minimum. This would give every homeowner almost a $1,000 a year reduction in their property taxes.

Prior to Prop 13 passing in 1978 the homeowner’s exemption was 25% of the assessed value. That also is an alternative to the $100,000 homeowner’s exemption being proposed. Please stay tuned for a proposition that addresses this on our upcoming November 2022 ballot.

“We’re working with the Jarvis Gann group,” Kramer said. “If there was ever a time to help homeowners this is the time with inflation, increased values, and increases in interest rates.”

“The state should have indexed the exemption in 1978 but they were greedy and did not,” he added.

As this proposition develops, he will keep the public informed, Kramer shared.

Allen D. Payton contributed to this report.

By Patrick McCarran, Real Estate Broker

Leaving California or is it time to reinvest in a different property or state? Due to the recent upswing in homes values we have realized a significant growth in equity.  Many owners think that they may be stuck in their current investment property. Whether you bought it as an investment, or it was an owner occupied that went past your three-year deferment period you have options. Maybe you would prefer an investment in a different city, region or even another state. Possibly you would like to combine many properties into few or few into many. The answer is a 1031 Tax Exchanges otherwise known as a Starker Exchange. This process allows real estate owners to defer taxes on capital gains resulting from the sale of investment real estate, often a sizable sum since combined Federal and State taxes can run as high as 38 percent.

In general terms to roll their profit into another property and defer the tax and preserve equity and cash flow.

To accomplish this, sellers need to engage a Qualified 1031 Intermediary to document the sale as an exchange and to receive the funds from the sale. I cannot stress the importance of a THIRD party for the exchange. This does NOT mean a title or escrow company. By definition you cannot have any direct control over the funds, which is not just in your pocket but anywhere within your reach.

Central to a 1031 Exchange is the interpretation of like-kind property. While the common assumption is that like-kind implies land for land or a condominium for a condominium swap, the definition of like kind has become far less literal.  Today it defines like kind as meaning that both the replacement and the original property must be used as an investment. So, land, condominiums, single-family homes and motels can all be exchanged for one another as long as they are used in the exchanger’s business or held as an investment.

1031 Exchanges do have specific IRS requirements and a set timeframe for performing. This is why it is very important that you contact an experience agent such as myself and engage the Intermediary BEFORE  you close and ideally before you place the property for sale.

There Are other options for example you can opt for a Reverse Exchange where you buy the replacement property first then sell the current property.  An Improvement Exchange, allows you to build investment properties from the ground up or improve existing properties.

If you want more information on 1031 Exchange or have any questions feel free to contact myself or a real estate professional you know. Make sure that he or she is familiar not only with the process but also with the specific documentation and time frame mandated by the IRS.

This article is intended to inform readers, but does not constitute any financial or legal advice.

Patrick McCarran is a local Realtor and Broker DRE# 01325072. He can be contacted by phone or text at (925) 899-5536, pmccarran@yahoo.com or www.CallPatrick.com. An independently owned and operated office.  In association with Realty One Group Elite DRE# 0193160. Equal Housing Opportunity.

By Patrick McCarran, Real Estate Broker

Leaving California or is it time to reinvest in a different property or state? Due to the recent upswing in homes values we have realized a significant growth in equity.  Many owners think that they may be stuck in their current investment property. Whether you bought it as an investment, or it was an owner occupied that went past your three-year deferment period you have options. Maybe you would prefer an investment in a different city, region or even another state. Possibly you would like to combine many properties into few or few into many. The answer is a 1031 Tax Exchanges otherwise known as a Starker Exchange. This process allows real estate owners to defer taxes on capital gains resulting from the sale of investment real estate, often a sizable sum since combined Federal and State taxes can run as high as 38 percent.

In general terms to roll their profit into another property and defer the tax and preserve equity and cash flow.

To accomplish this, sellers need to engage a Qualified 1031 Intermediary to document the sale as an exchange and to receive the funds from the sale. I cannot stress the importance of a THIRD party for the exchange. This does NOT mean a title or escrow company. By definition you cannot have any direct control over the funds, which is not just in your pocket but anywhere within your reach.

Central to a 1031 Exchange is the interpretation of like-kind property. While the common assumption is that like-kind implies land for land or a condominium for a condominium swap, the definition of like kind has become far less literal.  Today it defines like kind as meaning that both the replacement and the original property must be used as an investment. So, land, condominiums, single-family homes and motels can all be exchanged for one another as long as they are used in the exchanger’s business or held as an investment.

1031 Exchanges do have specific IRS requirements and a set timeframe for performing. This is why it is very important that you contact an experience agent such as myself and engage the Intermediary BEFORE  you close and ideally before you place the property for sale.

There Are other options for example you can opt for a Reverse Exchange where you buy the replacement property first then sell the current property.  An Improvement Exchange, allows you to build investment properties from the ground up or improve existing properties.

If you want more information on 1031 Exchange or have any questions feel free to contact myself or a real estate professional you know. Make sure that he or she is familiar not only with the process but also with the specific documentation and time frame mandated by the IRS.

This article is intended to inform readers, but does not constitute any financial or legal advice.

Patrick McCarran is a local Realtor and Broker DRE# 01325072. He can be contacted by phone or text at (925) 899-5536, pmccarran@yahoo.com or www.CallPatrick.com. An independently owned and operated office.  In association with Realty One Group Elite DRE# 0193160. Equal Housing Opportunity.

By Patrick McCarran, Real Estate Broker

Multiple offers and bidding wars getting you down?  Then you may want to consider a new construction home. Many builders have available models when you walk in and you can make an offer. You can get an answer quickly without multiple bidders and escalation offer prices. Did you know that you can be represented by your own agent when you purchase a new home?

You may not think it is necessary to involve a real estate professional in a transaction where the buyer can deal directly with the builder. Think again! The builder’s agent is representing the builder’s best interest. As your buyer’s agent a Realtor can guide you along the right path, smooth the rough places and help ensure you make a decision you can live with (and in) for many years.

As your agent, the Realtor is representing your best interests. Just as a real estate professional calls on experience and knowledge of an area to help buyers locate re-sale homes in a community, the same applies to guiding buyers interested in new construction developments and communities that match your wants and needs.

Your agent can suggest builders based on their reputation for delivering a high-quality product, responding quickly to issues, and being financially sound. Your agent may be familiar with how a builder prices his products and where there may be room to negotiate price, additional items the builder may be willing to sweeten the deal with and help with which upgrades to purchase for resale.

Your agent can assist you as you face hundreds of design choices and consider which upgrades provide the best value in terms of resale and whether to upgrade from an outside vendor. The upgrades or options available will vary from builder to builder and the choices you make will depend on largely personal decisions. Often a buyer can pay far less after the home is built by contracting with a third party, but price is not always the only consideration. You need to consider the convenience, cosmetic ramifications and if it is even feasible to perform after the home is built.

The lender approval process may go smoother if your agent schedules visits, accompanies you to lenders, and helps expedite required documents.

When relocating to a new area, your agent can be a particularly valuable resource. In addition to providing local area information regarding schools, day care, elder care services, medical offices and doctors, public transportation, proposed development, and so on. Once construction is under way, your agent can periodically stop by the work site, supply you with progress reports, and photograph various phases of the    construction.

REMEMBER the builder will require your agent to accompany you on your first visit to the site. So, let your Realtor shop with you. It is not an inconvenience for them, it is their job.

By now, you should be convinced of a real estate professional’s value as you search and purchase a new construction home. Still, here’s one more great reason to work with an agent – the builder pays the agent’s commission. You enjoy individual attention and support at NO cost to you. What a great way to start life in a new home!

Patrick McCarran is a local Realtor and Broker DRE# 01325072. He can be contacted at pmccarran@yahoo.com, by phone or text at (925) 899-5536 or at www.CallPatrick.com. An independently owned and operated office. In association with Realty One Group Elite DRE# 0193160. Equal Housing Opportunity.

$21.6 million total for program; approved as a consent calendar item and the last item on the agenda without discussion; no appraisals included; Glover, Kramer split on issue; appraises at $16.7 million

By Daniel Borsuk

The light will be left on for homeless, now at the Motel 6 in Pittsburg. Contra Costa County Board of Supervisors may have quietly went about unanimously approving $21.6 million for the purchase of the motel and almost two years of operations, as part of the state’s Homekey program to help the homeless find shelter, food, jobs and get social services, but the Board’s consent action on Tuesday also demonstrates how far apart two political candidates – longtime District 5 Supervisor Federal Glover and challenger Contra Costa County Assessor Gus Kramer – are on the issue of homelessness.

The agenda item was quietly acted on as a consent item, and the last on the agenda. There was no discussion on the item, nor were copies of the two appraisals by the county’s Public Works Real Estate Division included with the agenda. Attempts to obtain the appraised value for the property from members of the Board, County Administrator David Twa, and the Public Works Real Estate Division were unsuccessful prior to publication time. However, Supervisors Federal Glover, in whose district the motel is located, as well as Candace Andersen and Diane Burgis said they would work to provide the information. The only documents included with the agenda item were the purchase and sale agreement and deed of sale. Motel 6 Pittsburg – Purchase & Sale Agrmt final 10.12.20

Located at 2101 Loveridge Road in Pittsburg, the County, with the state’s financial assistance decided that acquisition of the Motel 6 will increase the number of shelter beds permanently available in East County from 20 beds to 174 beds, a 770 percent increase.  In addition to providing shelter, the program, funded under the state’s Home Key Program, would provide health care, behavioral health and other services to residents.

Contra Costa, along with the counties of San Francisco, Alameda and Santa Clara have now drawn state Homekey funds in the fight to solve homeless issues.

“This will be a great opportunity to get people off the street,” said Supervisor Glover who faces Kramer in a November 3rd face-off election because neither candidate drew enough votes to surpass 50 percent threshold of the total votes in the March election.  In that March election, the District 5 Board Seat had three candidates competing for the District 5 seat covering the communities of Antioch, Alhambra Valley, Clyde, Crockett, Hercules, Martinez, Mountain View, Pacheco, Pittsburg, Port Costa, and Rodeo – Glover, Kramer and Martinez businessman Sean Trambley – and no candidate had mustered votes exceeding 50 percent of the votes counted.  As a result, Glover and Kramer are in a run-off election on November 3.

The Contra Costa County Behavioral Department will operate the county’s Homekey program.

County Assessor Kramer, who must appear in Superior Court Judge John Cope’s court room on today, for a jury trial on civil “corrupt or willful misconduct” charges took a different view on the Board of Supervisors’ action to acquire the 174-room motel from OKC of Pittsburg for use as a homeless  facility.

Kramer lashed out at his political opponent Glover and other supervisors for spending $21 million.  “It’s a great program, but it is a waste of resources,” he said. “What a horrible investment.  Shame on the Board and Federal.”

Kramer did offer a potential solution to the homeless problem in the county and perhaps the state by creating camps like what occurred during the Great Depression where job, health and other public services would also be provided to individuals.

10/27/20 UPDATE: Asked for copies of the appraisal, Chief Assistant County Administrator Eric Angstadt responded, “I’m only aware of one appraisal. It was contracted out. I can give you what the topline is, but the appraisal is not available until after escrow closes.”

“The appraised value is $16.7 million at $96,000 per room,” he stated. “It’s 4.2% above the appraised value.”

Asked if the appraisal was done internally or contracted out, Angstadt said, “We always contract out appraisals. We have staff with real estate licenses. But I don’t believe we have any licensed appraisers on staff.”

“The state was very public about how much they were willing to pay at $100,000 per room,” he continued. “So, it didn’t leave us with much room to negotiate.”

“We have not signed the purchase and sale agreement, yet. That will happen once we finish the due diligence. We are working our way through all of it. It’s scheduled to close escrow on November 10th,” Angstadt added.

Orange COVID-19 Metric Next Week?’ 

Supervisors were informed that by next Tuesday the county should transition into the orange COVID-19 criteria, Contra Costa County Health Services Director Anna Roth said.  “We should meet the orange metric next week,” she said.  A move to an orange metric would mean the removal of further restrictions on some businesses.

Since the County declared a State of Emergency because of COVID-19 in March, there have been 18,214 cases and 236 deaths, Roth reported.

The health director encouraged the public to continue to wash hands, keep their distance, and stay home from work or school if they felt ill.

Four Abatement Actions

Supervisors acted on four abatement actions at the recommendations of the Conservation and Development Department.

Properties the Supervisors took action on were:

Property at 2738 Dutch Slough Road, Oakley, owned by Elmo G. Wurts, for $8,141.20; property at 0 Stone Road, Bethel Island, owned by Thanh Ngyyen for $6,964;  property at 4603 Gateway Road, Bethel Island, owned by Franks Marina for $5,591.20; and property at 3901 La Colina Road, El Sobrante, owned by Rudolph N. Webbe for $3,256.70.

Supervisors did not hear any comments from either property owners or the public on the abatement items.

Please check back later for any updates to this report.

Allen Payton contributed to this report.

 

 

 

By Patrick McCarran, Real Estate Broker

Is there still a value to owning a home? Can I still get down payment assistance? Is buying now a good idea? My answer is absolutely YES. I believe in home ownership and not because I sell them, actually I am in real estate   because of my belief in the value of owning real estate. America is one of a handful of countries where ANYBODY can own property, the PRIMARY reason to own a home is UNCHANGED.  The age of Corona will pass and America will recover    because that what we do. The WHY you should own is relatively easy. It seems like every day there are news reports of someone displaced by high rents or the building is sold to a new owner and they are forced to move. Rents are at a high and with the strong resistance to building they will continue to rise and be unpredictable, when you own you know what the payments will be and it your home not the landlord to dictate rules.

Mortgage interest will most likely remain the largest deduction for the middle class. Mortgage interest rates remain historically low and there is affair amount of inventory from which to choose. Long-term homeownership continues to be one of the best ways for the typical American to build wealth.

So, what’s holding you back? Down Payment? Many people are intimidated by the widely publicized 20-percent down-payment requirement. They don’t realize that there are many federal programs and other methods designed to help homebuyers with grants and secondary loans. Interest is at an all time low and this translates into increased buying power or lower payments.

For example, Freddie Mac and Fannie Mae have loans available to first-time buyers with as little as 3-percent down payment and the FHA has similar programs that require 3.5 percent down and payment. If you qualify there are a number of programs and grants that can help with the down payment.

With a seller credit for closing costs I have gotten buyers into a home for as little as $1500 out of pocket. For veterans, the VA program has no-down-payment loans available for qualifying military members and veterans that can close with almost no out of pocket money.

Why wait? What’s the worst that could happen if you buy a home now? You’ve already seen it, the 2007 mortgage crisis. It will take generations, if ever, before the government lets the banking systems get that far out of hand again. It is far more likely that home prices will steadily climb as they have been. So, don’t be blinded to the future by your past experiences.

The American population will continue to grow and build families of all types, creating more demand for housing. Don’t view your home as a trading vehicle or a one-way-up investment. Instead, look at the home-ownership benefits that are mostly forgotten by today’s potential homebuyers — the chance to build equity (instead of throwing rent down the drain) and the opportunity to customize your own environment.

That’s what has always motivated Americans to own their own home. And it isn’t going to change in the long run. Grab the American Dream now. Start building wealth and stability. Call a REALTOR or a Loan officer you have nothing to lose and everything to gain.

Patrick McCarran is a local Realtor and Broker DRE# 01325072. He can be contacted  pmccarran@yahoo.com, by phone or text at  (925) 899-5536 or at www.CallPatrick.com. An independently owned and operated office. In association with Realty One Group Elite DRE# 0193160. Equal Housing Opportunity.

Better Homes and Gardens^® Real Estate LLC announced this past week that Better Homes and Gardens Real Estate Royal & Associates, located in Antioch, California, is the newest member of its network.

Owned and operated by Melody Royal, the newly named Better Homes and Gardens Real Estate Royal & Associates serves the residential real estate market across the communities of Antioch, Pittsburg, Oakley, Brentwood, Discovery Bay, Knightsen, Bethel Island and Byron in Contra Costa County, approximately two hours east of San Francisco.

Royal has been a member of the Women’s Council of REALTORS® since 2016 and has been named a Five Star home professional.

The fresh, modern look of the Better Homes and Gardens Real Estate brand will enable Royal and her team to forge stronger connections with the area’s high volume of millennial and Gen X buyers, and prove an impactful recruiting tool that builds upon the brokerage’s reputation for fostering growth in a familiar working environment.

“From day one, Better Homes and Gardens Real Estate affords a striking freshness, offering renewed inspiration for my team, as well as a dynamic experience for consumers,” said Melody Royal, Owner, Better Homes and Gardens Real Estate Royal & Associates. “The brand offers unique tools that encourage a deep understanding of our clients, which align with our thorough approach to the real estate process. As we continue to explore the network’s broad suite of tools and resources, I’m thrilled to continue leveraging the brand appeal as a recruiting tool for organic growth.”

The communities served by Better Homes and Gardens Real Estate Royal & Associates are popular among buyers with San Francisco and Silicon Valley-based careers. While offering an affordable alternative to the Bay Area, the region also draws recreation seekers with its proximity to the San Joaquin River and the Diablo Mountain range.

The multilingual Better Homes and Gardens Real Estate Royal & Associates team members are able to work with the area’s melting pot of nationalities and cultures in a variety of languages.

“Better Homes and Gardens Real Estate Royal & Associates is committed to ensuring that every client has a close working relationship with its sales associates, offering unprecedented accessibility and a profound knowledge of the local market,” said Sherry Chris, President and CEO, Better Homes and Gardens® Real Estate. “We look forward to helping Melody Royal and her team further deepen these relationships in the dynamic Contra Costa County area, enabling Better Homes and Gardens Real Estate to continue its growth in Antioch and beyond.”

For more information, visit www.bhgroyal.com.

Click to Tweet:

Melody Royal & team join the @BHGRealEstate family as Better Homes and Gardens Real Estate Royal & Associates. #RealEstate

About Better Homes and Gardens® Real Estate LLC

Better Homes and Gardens Real Estate LLC is a dynamic real estate brand that offers a full range of services to brokers, sales associates and home buyers and sellers. Using innovative technology, sophisticated business systems and the broad appeal of a lifestyle brand, Better Homes and Gardens Real Estate LLC embodies the future of the real estate industry while remaining grounded in the tradition of home. Better Homes and Gardens Real Estate LLC is a subsidiary of Realogy Holdings Corp. (NYSE: RLGY), a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services.

The growing Better Homes and Gardens® Real Estate network includes approximately 11,000 affiliated sales associates and approximately 300 offices serving home buyers and sellers across the United States, Canada and the Bahamas.

Better Homes & Gardens® is a registered trademark of Meredith Corporation licensed to Better Homes and Gardens Real Estate LLC and used with permission. An Equal Opportunity Company. Equal Housing Opportunity. Each Better Homes and Gardens® Real Estate Franchise is independently owned and operated.