In 2018 C.A.R. will assess you an extra $100 to be a REALTOR®. Yes, that is a big cost to your already stretched budget. I would venture to guess, however, that that thinning wallet of yours could use a few more listings.
While the population of California continues to grow, real estate transactions are at about the same number that they were in the 1970’s. This is not only a problem for REALTORS®, but for young families trying to stay in Orange County. The median home price in Orange County is upwards of $700,000. With 20% down, a family would have to make at least $142,000 a year to afford that home. What we have is a huge supply shortage and it’s hurting everyone.
One of the largest factors contributing to our current supply shortage is the nature in which our Proposition 13 tax structure makes it unaffordable for people to leave their homes. In Orange County, people are staying in their homes an average of 20 years, and for many it’s not by choice.
C.A.R. has decided to take a significant step towards solving this problem. The C.A.R. Board of Directors voted to work toward the placement of a ballot initiative on the November 2018 ballot. This initiative would allow property owners over 55 to move to a home at equal or lesser value, and keep their lower property tax base. It would also allow them to buy up and create a blended tax rate.
Should this initiative pass it could free up as many as 40 to 60 thousand transactions a year in the state of California which releases the valve on inventory, lowers prices, and helps your business.
Unfortunately, between signature gathering and campaigning, the initiative will probably cost between $30 and $50 million to pass. Hence, the $100 assessment. While the cost is undoubtedly burdensome. The benefit is well worth it.
- $100 Member Assessment
- Property tax basis transfer ballot measure that will likely cost between $30 & $50 million to pass
- If passed could free up 40 to 60 thousand California real estate transactions a year.
- This is much needed inventory that helps potential homeowners and REALTORS® alike.