Real Estate Market

Featured Listing

Featured Listing

For Sale: $789,900

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Market Trends for Ventura County

Can I Transfer My Property Tax Base?

One of the long-term benefits of owning in California is a lower property tax base.  Consequently, many long-term sellers look at whether or not they can transfer their property tax base to the next property.  Proposition 90 and 60 does allow a principal resident that is over 55 years old to transfer their low property tax base to another principal residence.   Watch today’s video for details.

Financing a Non-Permitted Addition, Improvement, or Conversion

Often times sellers have additions, improvements or conversions that are done without permits. The type of financing used will dictate what the appraiser will be looking for and requirements necessary for the lender to finance the property. Here is a checklist for FHA/VA financing and Conventional Financing.


Non-Permitted Additions, Improvements or Conversions require:

  • The quality of the work to be described in the appraisal and deemed acceptable "Workmanlike Quality" by the appraiser.
  • The addition does not result in a change in the number of units comprising the subject property. (i.e. a 1 unit converted into a 2 unit).
  • The appraiser must be able to demonstrate market acceptance by the use of at least one comparable sales with similar addition footage as the subject property.
  • Non-permitted additions are typical for the market area and a typical buyer would consider the "unpermitted" additional square footage to be part of the overall square footage of the property.


Properties with non-permitted additions, improvements or conversions may be acceptable.
A non-permitted addition or modification/conversion to the subject property should comply with local building codes and zoning.
The property must be safe and structurally sound in accordance with the Minimum Property Requirements below:

  • Appraiser to comment that the addition or conversion was completed in a workmanlike manner.
  • Property must conform to the subject neighborhood and the market.
  • Appraiser needs to provide a minimum of one (1) "like for like" comparable.
  • Hazard insurance covering the total square footage of the property (including unpermitted area) must be evident.
  • No exceptions may be noted on insurance policy with respect to additional unit.
  • If the addition or conversion is conforming to the subject neighborhood building and zoning codes, it may be included in the market value.
  • Appraiser should not include square footage on the non-permitted addition in GLA and should report on a separate line item in sales comparison grid with adjusted market reaction value (+ or -) to unpermitted improvement.

Property Tax Facts for Home Sellers

  • If you’ve owned and lived in your home for two of the five years prior to selling it, you can generally exclude up to $250,000 of the gain from your income ($500,000 on a joint return, in most cases).
  • You are not eligible for this exclusion if you sold another principle residence within the past two years and excluded the allowable gain from your income.
  • If you can exclude ALL of the gain from the sale of your primary residence, you don’t need to report the sale on your tax return.
  • If you have a gain on your principle residence that exceeds the allowable deduction, it is taxable.
  • You can’t deduct a loss from the sale of your primary residence.
  • Special rules may apply when you sell a home for which you’ve received the first-time home buyer credit. (See IRS publication 523, “Selling Your Home” for details.)

Contact Information

Photo of Harold Powell Real Estate
Harold Powell
RE/MAX Gold Coast Realtors
5720 Ralston St. Ste. 100
Ventura CA 93003
(805) 339-3516