We moved in April 2019 and need to sell our 550k house in Cali

4 Replies

Hi my name is Danny. We bought a house for 550k in Canyon Country, Ca 91387 in Spring of 2019. My partner commutes an hour + everyday and works for a high paying job but the stress is killing him and making him miserable. The Tick fire has fueled us in thinking we need to get out! I would rather we sell the house, at least that's our thought. We are researching building a tiny home and moving to NC where he can freelance and I can learn and start to invest in real estate. Our obstacle is in selling this house. I don't know where to start because there could be options I just don't know that we have and I hope to find someone here would could share some insight.

Capital Gains tax, paying money out of pocket, and how much money we will lose is such a stressful aspect. We put 20% down on the buying of this home. TOTAL PAYOFF AMOUNT is $437,179. I don't even know where to direct my thoughts. I know I should probably call a realtor first and tell them our situation and probably an attorney and someone to look over the taxes. What would you guys do?

I have never posted on here before but watch the bigger pockets podcast a lot. I would like to invest money into real estate to create financial freedom which is the goal and hope we can figure out what to do in our situation.

P.S Our home wasn't burned down in the Tick Fire in California but we had to evacuate for 2 days. By the time we had packed our cars the air around us was black and full of smoke. Luckily there was no damage but we are stressed out being in what we perceive as an unsafe place and have no idea how we can sell after this fire. Would that make our odds of success much more difficult?

P.S.P.S

You can see a house that has burned down in our neighborhood which is up on a hill not too far from us. It is more remote than the houses where our cul de sac is located, but just to give you perspective, we recorded flames in the hills behind our home with our cameras.

Don't stress this much, won't help you make the right decision. First of all, you don't need to stress both for capital gains tax and losing money at the same time, it's either/or. If you lose money, there's no capital gain so no tax. Furthermore, If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).

Indeed, call a realtor. It's his/her job to help you figure out your options. They know the market and the impact of the fire on home values. If your partner can freelance from NC, maybe he can from CA too so he doesn't have the commute? Maybe if people panic-sell, it creates an opportunity for someone like you who wants to start in the real estate business. Maybe y'all don't need to pack up and go to the other side of the country and need to see the opportunity right there in your backyard?

If the area already burned, it's probably pretty safe now from fire. You likely won't make much or any money on the sale seeing that you just bought it. With sales costs, etc.

A realtor is the person to contact as they're the ones that can get your house sold if you want to sell. Or at least can let you know what it's worth. If a lot of houses burned, there may be a number of people looking to buy another place rather than rebuild months from now, so the market may be hot. (ok, pun intended...)

Originally posted by @Jacques Herve :

Don't stress this much, won't help you make the right decision. First of all, you don't need to stress both for capital gains tax and losing money at the same time, it's either/or. If you lose money, there's no capital gain so no tax. Furthermore, If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).

Indeed, call a realtor. It's his/her job to help you figure out your options. They know the market and the impact of the fire on home values. If your partner can freelance from NC, maybe he can from CA too so he doesn't have the commute? Maybe if people panic-sell, it creates an opportunity for someone like you who wants to start in the real estate business. Maybe y'all don't need to pack up and go to the other side of the country and need to see the opportunity right there in your backyard?

I sent messages to realtors last night and got 2 appointments for the weekend. Unfortunately there are so many reasons why we want to leave CA, the fire just really pushed us over the edge. On top of the high taxes, pollution, and new laws being introduced limiting our personal freedoms it's just not a place we feel comfortable raising our kids anymore. It's an unfortunate situation but my family is on the east coast so I think this would be the best solution for us. Thank you so much for taking the time to reply. We for sure don't want to miss any opportunities which is why I wrote this post. We are really praying to receive the best guidance we can find so we can take the best approach on solving this problem. 

Originally posted by @John Teachout :

If the area already burned, it's probably pretty safe now from fire. You likely won't make much or any money on the sale seeing that you just bought it. With sales costs, etc.

A realtor is the person to contact as they're the ones that can get your house sold if you want to sell. Or at least can let you know what it's worth. If a lot of houses burned, there may be a number of people looking to buy another place rather than rebuild months from now, so the market may be hot. (ok, pun intended...)

Lol the market might be hot like you said. I need to do some research on what homes are selling in the area. Luckily I did make appointments with two different realtors and hope to figure out my game plan. Thank you very much for taking the time to respond! 

 

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here