If the recent hike in home sale prices have peaked your interest in marketing your home, you are not alone! Recent home sale prices indicate that most homes that are priced well are selling over asking price. The chart below shows some of the most recent Los Gatos sales where homes have sold from 2-15% over asking price.
Pricing a home in this market is a bit tricky because we are seeing some properties that are poorly priced and they are now chasing the market. A good examples is the property at 16600 Engewood Ave in Los Gatos where the owners emotional attachment to the property completely blinded him to the competing properties on the market. The price per Sqft Feet of that home is $1,264 for a 59 year old home which is higher than a brand new home within 2 blocks of this home at only $850 / sqft.
So, it’s a good strategy to consider the most recent sales within 1 mile radius of your home to select good comps. Then with the assistance of your agent, you need to adjust those sold prices for size, age, lot and amenities such as Pool, Garage, Wine Cellar….etc.
|% over Ask
|159 Vista Del Monte
|110 Ann Arbor
|122 Whiyney Stacia
|265 Los Gatos Blvd
So, the opportunity might be to take some profits and test the market to see if you can fetch the price you had in mind.
However, if you are concerned about Capital Gains Taxes, we can direct you to our Estate Planning Team who can develop a Deferred Sales Trust to protect you from the massive Capital Gains Tax hit. Since January 2013, the Capital Gains Rate has been raised to 20% for the purposes of Federal Income taxes and 9.8% for the State of California. And as if the picture was not painful enough, there is no a high-income earner tax of 3.8% for Californians which can add more than $30,000 of taxes to our IRS bill.
Is is time to find yourself a los Gatos agent?!