For any homeowner anywhere, selling is a bittersweet experience. Whether you bought the home a year ago or two decades ago, you likely hold a treasure trove of specific memories and
milestones. Maybe you even recall the jubilance and relief of finding out you had closed the deal, and can’t help but look back on that day with nostalgia.
In quaint, sunny Coronado, it can be even more difficult to let go of a prized home, even when you know the time is right. Here are the qualms you might have, along with some advice for seeing your way through your decision:
Higher Home Value
Coronado property appreciates at an extremely high rate; home values have risen 16 percent in the past year alone. A 3-bedroom, 3-bathroom house that sold for $700k in 2004 might be worth as much as $1.6 million in 2016.
When your home more than doubles in value over a 12-year span, it’s understandable to want to hold onto it and ride the upward momentum. But while Coronado homes will indeed appreciate for the foreseeable future, realize that if you have an itch to sell, watching your home’s value will only increase your anxiousness.
The property tax rate in Coronado is undeniably expensive – 1.1. percent of the purchase price. If you end up buying a new home that’s more expensive than the sale price of your old home, the tax differences can be noticeable. Many homeowners avoid this by waiting to sell until age 55 or older, when Proposition 60 allows you to transfer your current property’s tax basis to a new property. Also remember that if you’re married and have lived in your home for at least 2 of the last 5 years, the first $500k of your gain on a sale is tax-free.
Being both a buyer and seller, you will notice that appreciation doesn’t necessarily work in your favor on the buying side. You could very well find yourself buying a smaller home than the one you are selling, for the same price.
Downsizing is rarely a bad thing in the end, though. A smaller home is trendy, cozy, economical, and easy to maintain. Plus, for those who can push past the perceived negative connotations of downsizing, there are plenty of opportunities to find your new dream home – perhaps on the beach or bay, and maybe even while pocketing some money from the sale of your previous home.
Again, the sentiment of a home is magnified in the tight-knit Coronado community. If you’ve raised children in a big home, you might be hesitant to sell out of respect for the family photo album. And when your kids go off to college, you want them to always have that home to come back to. However, we’ve seen many clients have emotional difficulties with turning to a new chapter, later to be thrilled with their move after finally going through with it.
Oftentimes, homeowners keep a big, empty home because they want family to be able to visit. Meanwhile, the reality is that they only have visitors a few times a year. With ample rental availability in Coronado, it’s a completely viable strategy to scale down and rent a place for your guests when they’re in town. That way, you’re not paying for space you’re not using, and your visitors can enjoy their own place outside of family time.
What’s Your Vision?
Selling your home shouldn’t be a matter of pure money or utter restlessness. To feel good about your decision, it’s important to have a vision for your life after the sale. By selling your Coronado home, you might be able to:
– Travel the world
– Visit family more often
– Spend less time and money taking care of a larger property
– Gain more financial freedom
– Take calculated investment risks
– Pursue your dreams
– Start your own business
– Relax and enjoy life
Is Now the Right Time?
We’re not trying to pry you from your home–we promise. If you love where you are and have no reason to consider selling, that makes us truly happy for you as realtors.
On the other hand, if you are indeed thinking about selling your home and struggling to come to a conclusion, Del Coronado Realty can help you through the entire process, even if you ultimately end up deciding not to sell.