As many of you know, I’m still an active real estate broker. I’ve been licensed since 1984. Since that time, I’ve seen massive changes in how real estate is sold, bought, and invested in. I’m returning to my college blog to post about some of those changes and share real-life experiences from someone who has experienced them firsthand. <\/p>\n\n\n\n
The internet has driven most of the changes. We now have massive amounts of data at our fingertips. In the past, the agent’s role was to guide folks through the real estate process. The internet has assisted with this, and it has been a great platform. Unfortunately, it has brought confusion. As I like to say, “You can get confused at a higher level now.” <\/p>\n\n\n\n
So, whether you’re looking to buy a home, sell a home, or invest in real estate, I’ll share my knowledge, expertise, and guidance from over 50 years in the industry.<\/p>\n\n\n\n
In the meantime, click here to <\/a>search for homes for sale in San Diego<\/a>.<\/strong><\/p>\n\n\n\n What is the role of the agent? As I constantly tell my students… “That Depends.” It depends if you are looking to buy, sell, or invest.<\/p>\n\n\n\n To buy a home<\/strong>, many feel that since they can find homes for sale on any website, the agent’s role is unnecessary. Well, yes and no. Yes, you can search for homes for sale, but there are a few key warnings.<\/p>\n\n\n\n First, the information on these sites comes from the local Multiple Listing Services (MLS) through a process called Internet Data Exchange, or IDX. Some sellers may not authorize their agents to put their listings. So, not all listings are posted.<\/p>\n\n\n\n Second, there\u2019s an old computer term, GIGO:<\/strong><\/em> Garbage In, Garbage Out.\u00a0 An experienced agent can use the MLS to overcome this.\u00a0 Plus, the MLS is the source, and our searching options are more robust than online searching.<\/p>\n\n\n\n So, should you look online? Of course, everyone does. But use it to find neighborhoods that meet your expectations. <\/p>\n\n\n\n A word of caution. Remember that the most popular sites may be fun and easy to use, but some of the familiar players, like Zillow, Homes, and Realtor, exist for one key profit motive. They harvest your information and sell your data. Some will go to \u201cmember agents,\u201d some will go to their proprietary services such as lending and insurance.<\/p>\n\n\n\n How to avoid this?\u00a0 Start by choosing a great real estate agent<\/a><\/strong>.\u00a0 Obviously, I can help you in San Diego County, and I can help you find a great agent in other cities, states, and regions.\u00a0 Interview them and make sure that they can help you achieve your goal.\u00a0 Remember, the agent\u2019s role is to be a trusted guide.\u00a0 You are the hero of this story.\u00a0 Choose a great guide to achieve your goal.<\/p>\n\n\n\n To sell a home<\/strong>, most home sellers are looking to accomplish three things (not necessarily in this order). To sell for the most money in the correct amount of time, with the least hassle.<\/p>\n\n\n\n First: <\/strong>Years of statistics have taught us an important lesson.\u00a0 Properly priced homes sell faster and for closer to the original asking price (or more!).\u00a0 Finding that sweet spot price is the job of a great listing agent.\u00a0 The internet has brought us lots of online valuation services.\u00a0 Just for fun, I checked four of them and found a 23% difference in their prices!\u00a0 An experienced listing agent is an expert on pricing.\u00a0 I\u2019ll probably write another post on this.<\/p>\n\n\n\n Second:<\/strong> The correct amount of time.\u00a0 Most folks would prefer a shorter time frame.\u00a0 For others, a short time frame fills them with anxiety.\u00a0 An experienced listing agent will listen to you and work to meet your goals.\u00a0<\/p>\n\n\n\n Third:\u00a0<\/strong> There are a lot of moving parts to selling a home; you might call them \u201cHassle.\u201d\u00a0 Our team\u2019s job is to navigate the turbulence that can occur during the sales process and the escrow period.\u00a0 Our job is to work to avoid or minimize the hassle, from helping you find any tradespeople you need to prepare your home, overseeing the prep work (if desired), to smoothing the way through the legally required paperwork, to coordinating the closing to meet your future plans.<\/p>\n\n\n\n Investing in real estate<\/strong> can take many forms. For some, it is a life goal. For me, it has brought my wife and me the ability to take some marvelous vacations. For others, they may back into it almost accidentally. Investing in real estate has proven through the centuries to be a consistent way to build real wealth.<\/p>\n\n\n\n Now, I\u2019m not an attorney or a CPA, so please confirm this information with your legal and tax expert. The US tax code has three key elements designed to help real estate sellers and investors to avoid taxes. Here\u2019s a quick introduction to them. <\/p>\n\n\n\n The first is IRC 121<\/strong>; under the right conditions, home seller(s) can exclude $250,000 to $500,000 of the sale of their personal residence from income tax. There are a few moving parts on this, and I\u2019ll write about it in detail in the future. In the meantime, just contact me if you have a question.<\/p>\n\n\n\n The second is a 1031 tax-deferred exchange<\/strong>. I\u2019ve done many of these, both for my clients and myself. This is the portion of the tax code that lets you sell and then purchase a replacement investment property and avoid (defer) the taxes. This is a powerful wealth-building technique, and it is imperative to do it correctly. It\u2019s not difficult, but there are certain rules. I\u2019ll write more in the future, and as before, feel free to contact me for your situation.<\/p>\n\n\n\n The third tax benefit is a bit of a morbid one.<\/strong> First, you have to die. But, here\u2019s the key. If you hold your real estate investments in the correct way, your spouse, children, or other heirs may be able to get a \u201cstep-up in basis.\u201d So, even though you (or your loved one) is dead, the IRS allows you to reset your tax basis to the value at the time of death. This is a key element of building multi-generational wealth. More to follow!<\/p>\n\n\n\n I\u2019m excited to relaunch this blog and share my 50 years of experience with you.\u00a0 But a conversation takes two people.\u00a0 If you\u2019re reading this, please reach out to me<\/a><\/strong> with your questions, concerns, and topics of interest.<\/p>\n\n\n\n Kevin Hall<\/strong><\/p>\n\n\n\n The Venerable Elder of Real Estate<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" As many of you know, I’m still an active real estate broker. I’ve been licensed since 1984. Since that time, I’ve seen massive changes in how real estate is sold, bought, and invested in. I’m returning to my college blog … Continue reading