Prop 58:Parent and Child Transfers & Prop 193: Grandparent and Grandchild Transfers

Props 58 and 193 make it easier to keep property “in the family.” In general, Proposition 58 states that real property transfers, from parent to child or child to parent, may be excluded from reassessment. Proposition 193 expands this tax relief to include transfers from grandparents to grandchildren. In both cases, a claim must be filed within three years of the date of transfer to receive the full benefit of the exclusion.

These constitutional initiatives provide property tax relief for real property transfers between parents and children, and from grandparents to grandchildren.

Requirements and Guidelines for Propositions 58 and 193

  1. The principal place of residence must have been granted a Homeowners’ Exemption or Disabled Veterans’ Exemption before the transfer. This residence need not be the new principal residence of the person that acquired the property.
  2. No limit is placed on the assessed value of a principal residence that may be excluded from the reassessment.
  3. In addition to tax relief on the principal residence, you may claim an exclusion on transfers of other real property with an assessed value of up to $1,000,000.00
  4. The $1,000,000.00 exclusion applies separately to each eligible transferor. A $2,000,000.00 limit applies to community real property of an eligible married couple.
  5. Transfers by sale, gift or inheritance qualify for the exclusion.
  6. Transfers between parents and children as individuals, from grandparents to grandchildren as individuals, between joint tenants, from trusts to individuals, or from individuals to trusts may qualify for the exclusion. Transfers from grandchildren to grandparents are not eligible for this tax relief.
  7. Transfers of ownership interests in legal entities, aside from most trusts, do not qualify for the exclusion.
  8. A claim must be filed within 3 years after the date of purchase or transfer for which the claim is filed or prior to transfer to a third party, whichever is earlier, or within 6 months after the mailing of the notice of supplemental or escape assessment, issued as a result of the transfer for which claim is filed. Untimely filed claims are subject to certain conditions, i.e., the property must not have transferred or resold to a third party and the claim will only apply to future tax years.
  9. If reassessment of your property occurs before the approval and processing of your timely filed claim,the reassessment may be reversed. In these situations, a corrected tax bill and/or a refund will proceed.

 

Information deemed reliable as of 4/11/19 but not guaranteed.  We recommend talking with a title company, your tax attorney or CPA for more information.  For expanded definitions of prop. 58 & 193, see Revenue and Taxation (R&T) code section 63.1.
It is available online at www.boetaxes.ca.gov/property

 

Lawndale and Gardena Home Prices on the Rise in Feburary

The real estate market in Lawndale and Gardena picked up a bit in February of 2019 compared with the previous year.  Gardena saw 19 homes sale in February of this year compared with 19 the year before.  Lawndale saw a slight increase of almost 3.5% in the average price of the homes sold over the year earlier.  Hawthorne prices were almost 8% higher than in February of 2018.

See the current homes for sale in El Camino Village and Bodger Park

Just Sold! 3902 W 148th Street, Hawthorne, CA 90250

We are proud to announce the recent sale of 3902 W 148th Street, Hawthorne, CA 90250 in Bodger Park. We’re so happy for our clients Kevin and Stephanie on the purchase of their first home.  This was a beautiful 3 bedroom 2 bath single family home with 1581 sq feet, great curb appeal and a nice tree lined mid block location.  Congratulations!!!!

Contact us to see how we can help you find your dream home in Bodger Park, El Camino Village and beyond!

How Much Value is There in El Camino Village Compared with the Rest of Lawndale

The neighborhood of El Camino Village is somewhat made up. It’s a community name for a pocket of both Lanwdale and Gardena. Unlike some of the other nearby areas of Lawndale and Gardena, it has a more neighborhood feel with mostly one story single family homes on nice tree lined streets. There are only a very limited number of apartment buildings, duplexes, commercial etc. giving it a very upscale feel.

So How Much Of a Difference Does it Make?

The numbers paint a pretty compelling picture.  The homes in El Camino Village sell for far more money, hold their values better, are well higher price per foot and sell much quicker.  Oh what a difference a few blocks can make.

El Camino Village (Lawndale Section)

  • 15 home sales in 2018
  • The average home price  was $663,700 and median sold price was $645,000
  • Average price per square foot of $499.61 and median was $519.26
  • Days on market  average 15 and median of 9 days on market

All of Lawndale (excluding EC Village)

  • 115 home sales
  • The average sales price of $521,728 and a median sales price of $520,000.
  • Average price per foot was $416.83 and median of $391.00.
  • Average days on market of 41 and median days on market of 20.

Single family homes in Lawndale (excluding EC Village)

  • 60 home sales
  • The average sales price of $673,946 and a median sales price of $560,000
  • Average price per foot was $469.56 and median was $467.34
  • Average days on market was 49 and median days on market was 26

See the same report for Gardena compared with the Gardena section of El Camino Village

How Much Value is There in El Camino Village Compared with the Rest of Gardena

The neighborhood of El Camino Village is somewhat made up. It’s a community name for a pocket of both Lanwdale and Gardena. Unlike some of the other nearby areas of Lawndale and Gardena, it has a more neighborhood feel with mostly one story single family homes on nice tree lined streets. There are only a very limited number of apartment buildings, duplexes, commercial etc. giving it a very upscale feel.

So How Much Of a Difference Does is Make in Gardena?

The numbers paint a pretty compelling picture.  The homes in El Camino Village sell for far more money, hold their values better, are well higher price per foot and sell much quicker.  Oh what a difference a few blocks can make.

El Camino Village (Gardena Section)

  • 8 home sales in 2018
  • The average home price  was $652,875 and median sold price was $668,500
  • Average price per square foot of $447 and median was $425
  • Days on market  average 24 and median of 9 days on market

All of Gardena (excluding EC Village)

  • 389 home sales
  • The average sales price of $524,245 and a median sales price of
    $536,000
  • Average price per foot was $404 and median of $395
  • Average days on market of 31 and median days on market of 14.

Single family homes in Gardena (excluding EC Village)

  • 278 home sales
  • The average sales price of  $564,109 and a median sales price of  $565,500
  • Average price per foot was $433 and median of $429
  • Average days on market was 31 and median days on market of 14.

See the same report for Lawndale compared with the Lawndale section of El Camino Village

Why Do El Camino Village Home Buyers Want a Buyer’s Realtor?

What are the reasons you should use a buyer’s agent?

With more resources available on the Internet, you may be considering buying a home without using the services of a professional real estate agent. After reviewing these 50 services an agent would typically perform for their clients, you may want to reconsider! Remember, agents don’t get paid until the home purchase is complete. It is their job to do the best they can to help you through a smooth experience, save you money and achieve your goal of buying a home.

Here are some of the many reasons to use a buyer’s agent:

  1. Analysis of your real estate needs and determine what housing areas and options might work best
  2. Research properties.  As an expert in the area, the right buyer’s agent can get you detailed information about properties you’re interested in.  Having a realtor that understands the differences between El Camino Village, Bodger Park and the surrounding areas of Hawthorne, Gardena and Lawndale can make a big difference.
  3. Send you listings that match your needs – the right agent understands what you’re looking for in a home and can send you custom email alerts whenever a new home in El Camino Village or Bodger Park, or other areas hits the market.
  4. Provide information pertaining to your move or relocation and short-term stay options
  5. Educate you about home buying processes.  Buying a home has a lot of moving pieces…adding to an already stressful emotional and financial process.  A good agent can guide you through the process
  6. Provide information on market conditions, schools, communities, employment, and more
  7. Discuss your financing needs and options
  8. Recommend qualified mortgage brokers
  9. Make appointments and show properties that works around your schedule.  Open houses are great, but not every listing has them and sometimes a private tour is more beneficial
  10. Provide timely and professional disclosure and research on homes, markets and neighborhoods
  11. Home tour review: pros & cons of each property
  12. Point out important items while showing that buyer’s may overlook
  13. Follow up of loan application with your selected mortgage broker
  14. Help cleaning up your credit if needed
  15. Analyze purchasing timeline and needs once property is located
  16. Free Comparative Market Analysis (CMA) of a property in order to make an educated offer
  17. Call listing agent to get updates on property including interest, offers, etc.
  18. Create and send draft of the offer and prepare paperwork
  19. Research tax and title records
  20. Explain all paperwork before signing
  21. Collect proof of funds from buyer, preapproval letter, personal letter to seller(if warranted)
  22. Generate estimate of closing costs
  23. Write offer, send out for electronic signatures, provide verification to listing agent
  24. Review and explain final contract
  25. Submit contract and follow up with listing agent to confirm receipt and follow up questions
  26. Negotiate contract until mutually agreeable.  Working with and expert negotiator can make all the difference
  27. Set deadlines for final acceptance by all parties
  28. Send the escrow company the executed contract and help get escrow opened upon acceptance
  29. Schedule and attend the home inspection
  30. Schedule and attend the termite inspection
  31. Recommend insurance agents to you
  32. Verify loan process has begun
  33. Obtain all seller and listing agent disclosures and explain documents to buyers
  34. Perform agent “visual” inspection of property
  35. Review home inspection findings with you.  A home inspection (and the results!) can be scary especially for first time home buyers.  A good agent can walk you through the report and explain the differences between thinks that need to be repaired or addressed, and updates and upgrades that buyer’s might like, but sellers may not consider
  36. Negotiate repairs if needed
  37. Help order an appraisal
  38. Assist to meet finance deadline
  39. Monitor and manage contingencies and contingency periods – financing, home inspection, appraisal, etc.
  40. Check on homeowners insurance
  41. Verify that the title agency has all necessary documents
  42. Follow up with the lender on all aspects of closing process
  43. Get information on utilities
  44. Schedule closing: time and place
  45. Review escrow and lender closing statement
  46. Arrange and attend a final walk-through
  47. Ensure that escrow has determined the funds to be brought to closing
  48. Coordinate between lenders and title company to determine amount needed
  49. Explain everything that happens at closing
  50. Arrange closing and access
  51. Give you the keys to your new home!
  52. Follow up after closing – homestead info and insuring that everything is going well in your new home and that you’re a happy homeowner!

El Camino Village – One of the Hottest Real Estate Markets in the South Bay

Without question, the neighborhood of El Camino Village is one of the hottest real estate markets in the South Bay.  Not only are prices on the rise but demand never seems to ease up.  We have represented buyers on 4 recent offers and in all 4 situations there were multiple offers and each home sold well over the original list price.   See the current homes for sale in El Camino Village/Bodger Park.

The chart below is a great representation of current conditions (included Bodger Park in Hawthorne so slightly skewed numbers).  Other than December which is almost always the slowest month of the year, days on market has been less than 2 weeks for the past few months.  Those numbers are even lower when you consider that with mulitple offers it can sometimes take 4 or 5 days to negotiate and open escrow.  The green line shows that for the past 12 months homes have sold OVER list prices.  Given that many sellers have listed their homes for record numbers, that’s simply incredible.