When you’re a California landlord selling a rental property, capital gains taxes are one of the many costs that might keep you up at night. Of course, you’ll also have to get the property ready for sale—even minor repairs can add up to a pretty penny. Plus, you can expect to pay a real estate agent and California commission rates are sky-high compared to other states. The expenses of selling just keep adding up. Isn’t there a better way, one that will leave a little more cash in your pocket? If you understand how taxes on the sale of a rental property in California are calculated, you can make a more informed decision about how to go about selling it—and keeping costs down.
It can be costly owning and managing multi-family units, or even a single-family home that’s a rental, especially if your property is located in a pricey California County, like Orange or Sacramento. And, it’s not just your funds that may flatline—precious time and energy can get depleted as well. But as a California landlord, selling rental property can be an equally challenging prospect if you’re trying to sell the property with tenants in residence, the road ahead of you may prove to be that much more difficult. Still, you have a couple of options for selling when you’re tired of being a landlord and it’s time to get a property off your books. Which one works best for you will depend on how easy you need the sale to be.
Your lender has been sending you regular “reminders” of your overdue mortgage payments and probably has even warned you that this was coming. But it can still be a shock when a notice of default arrives in the mail. It makes your financial problem official. But now is not the time to dwell on the negative; you need to take clear-headed and decisive action. Understanding what the California notice of default means and what you can do about it is the first step, so let’s start there. Then we’ll give you some suggestions for how to avoid the foreclosure altogether and even settle the issues with your mortgage lender in a simple and stress-free way.
The amount of time, money, and stress you can save by avoiding renovations is the most obvious benefit of selling your house ‘as-is’. Even a minor rehab can take several months to finish and cost several thousand dollars. But, before the work even begins, there is the hassle of interviewing contractors and other experts to ensure you hire the best team for the price you can afford. And, unfortunately, getting a good rehab team together is never guaranteed. Sometimes, you don’t find out until it’s too late that you have overpaid for an under-qualified electrician or carpenter. So, selling ‘as-is’, especially if you need to get your house sold quickly, can make good sense all around.
Did a loved one recently pass on and leave you their home? It’s a wonderful gift and a nice bit of family history, but if that loved one was not your parent or grandparent, it may make you wonder: When you inherit a house in California, does property tax change that much? The short answer is, yes—and sometimes it can be a shocker, especially in California where housing values are going through the roof. If your inherited house comes with a property tax bill you are unable, or unwilling, to pay then selling the house is the fastest way to get out from under the overwhelming tax debt.
There are any number of forces that might be pushing you to sell your California home fast. The constant increase in the cost of living, rising medical and health care bills that are difficult to pay, the need to be closer to family—all can make the importance of selling quickly important and worrying. It can be especially stressful if you aren’t sure you can get a fair price for your property when you also want to sell it fast. You have more than one option, however, if you are looking for advice on how to sell your house in California quickly and for a price that feels fair. Our goal is to help you explore those options here.
Some problems have a snowball effect. Maybe you lost your job and, even if you were only unemployed for a short time, now you are having trouble paying your bills. Your mortgage is the biggest concern because you have a lot riding on it—your home, for one, and your credit score as well. You need to understand foreclosure in California and what happens to your credit score so that you can avoid as much damage as possible. There are multiple steps involved in foreclosing on a property and you have ways of protecting yourself as they take place. You’ll need to act fast, though, because your options become more difficult and less effective as the foreclosure process goes on. In the end, selling your house quickly may prove to be the best way for you to sidestep foreclosure altogether and preserve your credit standing.
Moving from Visalia to Fresno to be closer to family can be just as stressful as moving across the country to start a new career. Unfortunately, there is just no way around all the things you have to do to create a smooth transition. You have to inform your friends and neighbors and take the time to say goodbye. You have to change your contact information on all important documents as well as forward all your mail. You have to pack and plan for movers, then cross your fingers that everything arrives intact. You also have to sell your home. And that is probably one of the bigger stressors you will face—especially if time is of the essence and you have no idea how to get your house sold quickly. These fundamental steps, however, can help you move things along while keeping an eye toward the bigger picture. After all, the faster you can sell your house, the smoother everything else can be.
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- Guide for California Landlords Selling Rental Property