California Real Estate Podcast with Prashant Vanka Prashant Vanka

Using capital gains exclusions is a useful way to acquire wealth through real estate. Buying a home? Click Here to Perform a Full Home SearchSelling a home? Click here for a FREE Home Price Evaluation In the state of California, if you own a house for less than 24 months, you’ll be hit with a short-term capital gains tax and all of the capital appreciation you’ve accrued will be taxed for as much as 34% or higher based on your tax bracket. Because of that rule, it’s very important that you understand how to take advantage of capital gains exclusions (or IRS Code: Section 121). First, you must understand the ownership principle of capital gains exclusions, which states that you must have owned the house as a primary residence for at least two of the last five years you’ve owned the property. This is one of the secrets of how high net-worth individuals accumulate a lot of cash using real estate as a vehicle. The second thing to consider is the frequency of using capital gains exclusions. This is something you can do every two years. For example, if you buy a house, wait 24 months, and then sell it for—say—$400,000, you can get an exclusion for that entire sum if you’re a married couple. Remember—married couples can exclude up to $500,000, while single persons can only exclude up to $250,000. You can then defer your taxes, roll that into your next investment property, and start the process all over again. If you have any questions about this strategy or any other real estate topic, please don’t hesitate to reach out to me. I’d be happy to assist you.

When preparing to sell your Silicon Valley home, consider these three things carefully first. Buying a home? Click Here to Perform a Full Home SearchSelling a home? Click here for a FREE Home Price Evaluation If you're getting ready to list your home on the market, there are three things you must consider first. Where to start with renovations: Research from the National Association of Realtors shows that renovating bathrooms returns 58% of the value you invest in them, and a new roof can return 105% of the value invested. Paint: Zillow states that painting your kitchen yellow returns $1,400 more than a white kitchen and that lavender dining rooms return $1,122 more than a white dining room. It's an easy way to put a little more money in your pocket when you sell your home. Technology: Because of the area we live in, smart home technology is very attractive to buyers. Some of the best ideas are cheap fixes that add a ton of value, like a Nest thermostat, Amazon Echo for the sound system, and a door lock for all the doors. If you have any other questions about preparing your home for the market or the Silicon Valley market in general, don't hesitate to give me a call or send me an email. I'm always happy to help!

Selling your home on your own isn’t the best idea. You might save the 6% in commission, but you’ll give up a whole lot more money elsewhere. Buying a home? Click Here to Perform a Full Home SearchSelling a home? Click here for a FREE Home Price Evaluation Why should you hire a real estate agent as opposed to trying to sell your home on your own? There are three specific reasons that we would like to share. You may think it’s a good idea to sell your home FSBO (For Sale By Owner), but here are three reasons why it’s not: 1. FSBO homes fail 75% to 95% of the time. Those that end up selling are sold for a fraction of their true value. The NAR stated last year that homeowners have lost an average of 17% on their sale prices because they are trying to save 6% on commission. 2. Owners aren’t agents. In terms of preparing and marketing the property for sale, showing it, and negotiating the best deal possible, it’s a full-time job. Most homeowners don't have that kind of time to dedicate to a sale. Hiring an agent saves you time and money. 3. It saves you time and money. If you have any questions for me about selling your home or anything else related to the real estate market, I would love to hear from you. Give me a call or send me an email today. I look forward to hearing from you.

The Silicon Valley real estate market is extremely competitive. Here’s how we can help you get an edge. Buying a home? Click Here to Perform a Full Home SearchSelling a home? Click here for a FREE Home Price Evaluation Why does working with the Vanka Group make a difference when buying a home in Silicon Valley? There are three main reasons. The first thing is our needs analysis. It’s the first thing we do with our buying clients. It’s so important because every client is different. Some buyers want a certain home in a certain area no matter the price, and some have a budget they have to stick to. Because of that, this meeting is essential in setting your expectations for the process as a whole. 55% of homebuyers are paying with cash. Secondly, we understand the market. In Silicon Valley, 55% of homes purchased last year were cash transactions. If you’re going to be competing with cash offers and you’re using financing, a pre-approval is essential in getting all your ducks in a row. We have some amazing lender partners we can refer you to. Finally, the last step is to identify the neighborhoods that are good fits for you. We can strategize with you and help narrow down the best options, whether you want to be near good schools, the highway, or both. If you have any other questions, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

Investing in real estate is a smart move, especially here in California. Here’s why. Buying a home? Click Here to Perform a Full Home SearchSelling a home? Click here for a FREE Home Price Evaluation The question of “Are we headed toward a market correction?” is one of the most common inquiries I’ve been getting lately. So today I am going to talk about the three things you should be focusing on if we are indeed headed toward a correction. First, make your investments with a five to seven year outlook. With a long-term plan, you’ll be just fine. Secondly, California real estate has historically appreciated for over 7% if you hold the asset for at least five years. Real estate is a recipe for building wealth. Finally, the power of compounding. Real estate is one of the only asset classes that you can invest in with as little as 10% down. You can buy a million dollar asset for $100,000 in cash value and when you combine that with the fact that homes appreciate so rapidly around here, you have a recipe for building wealth. If you have any questions for me or you’re looking to get into real estate investing yourself, give me a call or send me an email. I’d be happy to hear from you.

Zestimates and other online home value calculators should be taken with a grain of salt. Here’s why. Buying a home? Click Here to Perform a Full Home SearchSelling a home? Click here for a FREE Home Price Evaluation When I go on listing presentations, home sellers always ask me about the disparity between Zestimates and what homes actually sell for. Zillow will give their home a certain value, but the National Association of Realtors states that homes sell for 5% more or less than their Zestimate more than 67% of the time. There are a couple main reasons why this happens. The first thing you have to understand about a Zestimate is that it’s an algorithm, or a formula-based estimation. It only calculates general information like the square footage of the house and the previous sales in that house’s particular zip code. As we know, houses are imperfect. Zillow doesn’t take into account things like the wear and tear from your kids or your pets. Details play a huge part in a home’s true value. For example, in Silicon Valley, schools are a big factor in determining home prices. Two identical houses in Cupertino that are right across the street from each other could be as much as $200,000 apart in value just because one house is assigned to Lynbrook High School and the other is assigned to Monte Vista High School. Zestimates should only be used as a guiding tool for pricing your home. With all this factored in, it’s really important that you use Zestimates and other online calculators as merely a guiding tool. If you want to know the exact value of your house, you should ask a professional real estate agent who knows your neighborhood well. If you need an estimate of your home’s value or you’re looking to buy or sell, don’t hesitate to get in touch with us. We’d be glad to help.