Should I rent my property, or should I sell it?

Many homeowners are in the position where they do not need the equity from their home to make a move. They have the luxury of renting their property out or selling it. There are reasons to lease the property and reasons to sell it. If you happen to be in your mid-90s, you may choose to rent the property out because of the benefits your heirs would have, possibly receiving this property without having to pay any inheritance tax. If you were to sell it now, you would more than likely be faced with taxes, unless you received it with a stepped-up cost basis concurrent with its current value. Consult your accountant for more information. Perhaps you are thinking of making the move but unsure if it will work out as expected. If you were to rent your house out, you would be able to move back, and to a home you know very well. If you have no intentions of moving back, the issue of inheritance tax is not of concern and the market is good, you may want to take advantage and sell! You wouldn't have to deal with property management concerns, and you wouldn't have to deal with landlord-tenant responsibilities. It would be nice to have your money and separate yourself from future concerns.

May I landscape grade my personal property to the property line?

This is a very difficult question to answer. By grading your property and creating a new retaining wall, you might do something to compromise your neighbor's property, especially if you are on a hill. If you dig away at an incline on your property, you could compromise the fence on the property line, and even the owner's property above you. Sometimes a retaining wall is necessary, and perhaps steel-supported footings. Consult a civil engineer, and make sure to get permits. You must absolutely go to the city and consult appropriate professionals before making any changes.

How can one tell when the market is turning?

When the market turns, it isn't a black-and-white thing. One can see it coming slowly from certain indicators. The first indicator is that properties are staying on the market for longer periods of time, and the next is that properties are not selling over the asking price, sometimes below the asking price. In addition, there is a building inventory that becomes very obvious. As the inventory builds and the time on the market builds, buyers tend to feel the market is more in their favor and be less concerned about offending the owner with a lowball offer. When owners receive lower offers, they will ultimately settle for a lower price. If they don't get any offers, they will usually reduce the listing price.

How thorough must one be when filling out disclosure statements?

People are fearful about the disclosure and the ability of a buyer to sue under the failure-to-disclose claim. It is really not as common as you think. The burden is on the buyers to furnish proof that you wrongfully and clearly failed to disclose an item you were aware of. Owners are often fearful that they don't have the information and they don't know. Remember, if you don't know, then you are not under obligation to disclose. You are only obligated to report what you do know. When in doubt, always disclose. For additional questions, see your Realtor or trusted advisor. Your legal questions should always be directed to your attorney for accuracy.

For more information, please call Ron Wynn at 310-963-9944, or email him at [email protected]. To find out more about Ron and read his past columns, please visit the Creators Syndicate webpage at www.creators.com.

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