Giving the gift of real estate is possible, and it’s easy
The real estate market over the past several years has been tough, but the market’s in a sweet spot right now, inventory (LA County currently has 4½ months, most economists consider six or seven months a healthy supply) and days on the market (51 days in LA County) are both below historical averages, while mortgage rates remain near record lows, recently as low as 3.52%. Houses have become more affordable, and mortgage rates are extremely attractive.
Property owners have put off selling in the past are now considering their options. Gifting the property to a charity of their choice might be a great way to help out the charity and offset potential capital gains. If donating cash is not for you, but you have a vacation home or rental properties which you’re no longer interested in owning or managing, you can still make a donation, in the form of the entire property, or a portion of the proceeds of a sale of the property.
Giving a gift of real estate to a charity is possible, and it’s easy – with the right team. There are a number of ways a donation can be made, and a number of resources available to help choose the best option for the you. A bargain sale involves selling a property to a charity at a below market value, so that the charity can then turn around and resell the property for a higher amount. Aside from donating an entire property to a charity, sellers can donate a portion of the property to charity to offset capital gains or donate the proceeds from the sale of a property. Business and tax advisors can advise on all various types of charitable gifts including stock, cash, and real estate, to the charity, it doesn’t matter what asset is being donated, they can work with anything.
California Community Foundation has unmatched resources to help individuals, families, and organizations contribute to the charity of their choice. From advice on different types of donations accepted, to selecting the right organization to create or donate to, their knowledgeable staff are subject matter experts and available to help. Our firm helps value real estate assets for buyers and sellers, and it’s a great time for real estate.
Article written by Brian Capossela