M
arket Insights

    Understanding Proposition 19, your tax base, and selling your home.

    A woman's personal story highlights the complexities of homeownership in the Bay Area. She had sold her Berkeley home last year and moved to Jack London Square, but missed having a house. I explained that Proposition 19 allows people over 55 or with disabilities to carry their tax base up to three times, transferring it to any county in California.

    This is a significant improvement from previous rules, which only allowed one transfer in reciprocating counties. The woman was thrilled and planned to discuss this with her agent. However, Prop. 19 isn't entirely a free pass; if the new home is more expensive, the difference will be added to the transferred tax base.

    Proposition 13, enacted in 1978, set a lower tax assessment framework but had unintended consequences, such as trapping people in their homes due to the inability to transfer their lower tax base. This led to a lack of available inventory and drove prices up. Proposition 19 addresses this issue by allowing homeowners to make changes without additional property taxes.

    Many long-time homeowners are hesitant to sell due to nostalgia, memories, familiarity, community connections, financing, or inertia. A move can be overwhelming, both emotionally and physically. We're currently helping a woman move out of state after owning her home for over 35 years. The process involved packing, sorting through belongings, and staging the property.

    With our expertise, we can make the transition smoother. When you work with us, you can count on us to take care of your home as if it were our own. We're here to educate, explore, examine, and refer – taking care of all aspects of your home sale or purchase.

    Julie Gardner & Sarah Abel | Compass Realty