SERIOUS BUYERS & SELLERS
We’ve seen a noticeable pickup in the market over the past few weeks, with a number of homes going into escrow and closing. Interest rates had been trending down nicely but bumped up slightly over the last week by about 0.25%.
On yesterday's broker caravan, we saw several great homes that were well-priced and aligned with what we expect them to sell for. We actually like this time of year because the buyers and sellers who are active right now tend to be serious about making something happen. Sellers aren’t just testing the market, and buyers aren’t just kicking tires. You can check out some of our picks below.
BIG PICTURE PLANNING & CREATIVE FINANCING
This week, we structured a deal with financing that almost didn’t come together. Our client initially planned to pay cash, but after writing the offer, their financial advisor warned them about potential penalties from withdrawing funds from a retirement account. But they didn't offer a solution.
This is where we help clients with big picture planning beyond just buying or selling. We looked at their overall financial situation: cash flow, tax implications, capital gains exposure, long-term goals, etc. From there, we came up with a solution to do partial financing at a low 5.75% rate on a 7-year ARM.
This allowed them to:
- Keep more of their funds fully invested
- Avoid withdrawing from a tax-advantaged account
- Hold appreciated stock to avoid 15%+ in capital gains taxes
- Rent the property for 3–4 months a year to cover most of the financing costs
We ran a full analysis of the pros, cons, and long-term implication, now and 8 years out, and shared it with their CPA and financial advisor, who both supported the option and gave it their blessing.
Two bad outcomes could have easily happened here:
- They could have moved forward as originally planned, paying far more in taxes and penalties than they would in interest.
- Or they might have skipped the purchase entirely, only to be priced out of their ideal retirement home years later.
This really isn't too complicated but many times the parties involved don't see the big picture and we do this all the time.
Here are just a few of the benefits from our strategy:
- Avoided withdrawal penalties
- Avoided capital gains taxes
- Kept investments intact and growing
- Locked in the purchase price today
- Locked in a lower property tax basis (Prop 13)
- Can use the home 6–9 months a year until retirement
- Can rent it 3–4 months a year to offset most interest costs
- Mortgage balance will be lower in 7 years due to amortization
- If rates drop, they can refinance and improve their position
- Upon retirement, they can choose to pay off the loan or keep it
- They’ve secured liquidity, flexibility, and their next life step
Smart real estate decisions are rarely just about the property — they’re about how it fits into the bigger picture of your financial life. If you’re thinking about buying, selling, or repositioning your assets, we’d love to help you look at all the angles and create a strategy that works for you.
Let’s talk about your goals and see what’s possible.
