Get an Equity Checkup

By MICHAEL EDLEN | Special to the Palisadian-Post

After more than a year of COVID-19, you are probably weary of reading all about the pandemic and mind-numbing statistics, including all of the increasing difficulties some other countries are now experiencing.

You may want to hear more good news, even beyond the expectation of COVID being under control this year, and hopefully our nation having greater inner peace and better relations abroad.

One such bit of good news has to do with your investment in your home. Are you aware of your current value?

Many people I have spoken with in the last several months have not realized how much their properties have appreciated, including some purchased as recently as 2018. Due to the combination of a near-historic low level of homes for sale as compared with the numbers of potential buyers trying to buy, prices are still under upward pressure in most areas of the country.

What difference might it make to know and to consider this? Several scenarios might be possible.

The increased equity may enable refinancing at lower interest rates, and using the extra cash as a down payment on an investment property or to assist children in getting their own starter homes.

Long-time owners may simplify their lifestyle by selling a highly appreciated home and then moving to where the costs of living are less. Some may benefit from the still-remaining $250,000 per person exemption from capital gains taxes, and also utilize the property-tax carry-forward to a lower cost home in a new development.

If you would like to benefit from the increased value, but would hesitate to place your home on the market until knowing where you would move to, we have evolved solutions for that situation. For example, you could put your home up for sale with the proviso that you would be able to control the length of escrow, as well as the option to lease it back after the sale at favorable terms. You could even list the home for sale, subject to your finding a replacement that suited your new needs.

Bottom line: If any of these ideas appeal to you, it is worth talking with us or another local expert agent for information about the general valuation of your property to further explore the possibilities.

Michael Edlen has been the leading Palisades agent through the COVID period and preceding 20-plus years. His team is available for free consultations about selling, buying or leasing homes, and may be reached at 310-600-7422 or michael@edlenteam.com.