In California, if there has been a death on a property that fact needs to be disclosed to prospective buyers in writing for three years after the death. After three years if a prospective buyer asks the agent and seller need to answer honestly.
In the past homes Probate homes in San Jose where there has been a death on the property sell on average 10% below what they would have sold for if there had not been a death.
At this moment in time, and it may be for only this moment in time, that common knowledge is no longer applicable. San Jose Probate homes where there has been a natural death are not getting hit with the 10% "death tax."
There is a very good reason for this. Two reasons actually.
1. There is no inventory of homes for sale. The number of homes for sale is at their lowest number ever.
As you can see from this chart in new San Jose home listings in red are at their lowest level in the last three years.
2. The Google Bump
In June, 2017 Google announced they were expanding their campus to downtown San Jose at the Diridon station area. Since then prices have sky rocketed, 10% in areas close to the new campus.
As you can see average sales price of a single family home in San Jose has increase by 10% since the Google announcement in June of 2017, from $1,050,000 to 1,175,000.
What this means for a Probate sale in San Jose where there has been a death is that the Google bump and low inventory should cancel out the "death tax" from the death on the property.
I recently listed a townhome in Willow Glen where the owner had died peacefully at home. The last sale of that model in that development was $960,000 in May of 2017. My listing sold in Dec 2017 for $1,100,000, over 10% more than the last sale, despite the death.
So, if you are an Administrator of a Probate Estate, or a Successor Trustee of a trust with property now is probably not the time to wait the 3 year waiting period for written death disclosure.
You may want to sell now and take advantage of the very favorable real estate market in San Jose.
eXp Realty of California
Specializing in Probate, Trust, and Investment Properties