Should you improve or repair your home before selling your Folsom home?

Steve LaMothe • June 3, 2026

These strategies will save you tens of thousands when selling

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Should You Repair or Improve Your Home Before Selling in Folsom, CA?


By Elevate Realty Group | Folsom, CA Real Estate Experts | homesbyelevate.com


If you're thinking about selling your home in Folsom, California, one of the first questions you'll face is: Do I need to fix things up before I list — and is it worth it? The answer isn't one-size-fits-all, and the wrong decision can cost you tens of thousands of dollars at the closing table.


At Elevate Realty Group, we've helped over 2,000 families sell their homes across the Sacramento region — and we've put more than $4,500,000 in additional profit back into our clients' pockets through smart pre-sale strategy. In this guide, we'll walk you through exactly what to repair, what to improve, and how to do it without stress — or out-of-pocket costs.


Why Your Pre-Sale Strategy Matters More Than You Think


Folsom is one of the most desirable markets in the Sacramento region. Buyers here are educated, have options, and expect homes to show well. The difference between a home that sits on the market and one that receives multiple offers in a single weekend often comes down to preparation.


Our team averages a 99.7% list-to-sale price ratio — meaning our clients net nearly every dollar of their asking price. Only 0.25% of our listings ever need a price reduction. That's not luck — it's a result of our proven pre-sale process that we execute on every single listing.


The Elevate difference: While the average agent spends roughly $300/year on marketing and tells you to "freshen up the paint," Elevate invests $400,000 per year in client marketing and operates a full in-house staging, media, and vendor management team. Every home we list receives concierge-level preparation — regardless of price point.

Repairs vs. Improvements: What's the Difference?


Repairs are items that buyers or their inspectors will flag — leaky faucets, broken outlets, aging HVAC systems, cracked tiles, or roof issues. Skipping repairs gives buyers ammunition to negotiate your price down, request credits, or walk away entirely.


Improvements are strategic upgrades designed to increase your home's perceived value and emotional appeal — fresh paint, new flooring, updated fixtures, landscaping, and kitchen or bathroom refreshes.


Both matter in the Folsom market. The question is which ones give you the best return — and who's going to manage them.


The Top Repairs & Improvements That Pay Off in Folsom


Based on our 15+ years selling homes throughout Folsom, El Dorado Hills, Roseville, and the greater Sacramento region, here are the improvements that consistently deliver the highest return:


Interior paint: One of the highest ROI improvements you can make. Neutral, modern tones instantly modernize a home and photograph beautifully.

Flooring updates: Replacing worn carpet or refinishing hardwood can add perceived value of $10,000–$30,000 depending on home size.

Kitchen refresh: New hardware, updated lighting, and countertop resurfacing — you don't need a full remodel to make a kitchen shine.

Bathroom updates: Vanity swaps, new mirrors, and re-grouting can transform a dated bathroom for a fraction of replacement cost.

Curb appeal: First impressions set the emotional tone. Fresh landscaping, exterior paint, and clean driveways are non-negotiable in Folsom.

Pre-inspection repairs: Proactively completing repairs before the buyer's inspector arrives eliminates negotiation leverage and positions your home as "certified" — commanding top dollar.

Deep cleaning and decluttering: Buyers buy on emotion. A spotless, staged home creates the emotional connection that drives offers.

The Biggest Mistake Folsom Sellers Make


The most common mistake we see? Sellers either over-improve (spending money on things buyers won't pay extra for) or under-prepare (listing a home that isn't ready for the market and watching it sit).


Without expert guidance on which repairs will generate a return, you're guessing. And in a market like Folsom, guessing costs you money.


That's exactly why Elevate built its Concierge Program — to take the guesswork, the stress, and the out-of-pocket costs completely off your plate.


How Elevate's Programs Solve This Problem for You


Here's the honest truth: most agents will hand you a list of repairs and wish you luck. Elevate is different. We have three exclusive programs designed specifically to handle the repair and improvement process — and none of the traditional agents in Folsom can offer them.


The Concierge Program — Renovate Now, Pay at Closing


This is our flagship program and the one that has generated the most additional profit for Folsom sellers. Elevate covers the upfront cost of repairs and improvements — flooring, paint, staging, deep cleaning, pre-inspections, and more — at zero interest. You pay us back at closing from your proceeds. Our team plans every renovation, selects materials, manages all vendors, and holds them accountable to budget and schedule. On average, we spend $15,000 and add $75,000 in value to your sale. Our program has put over $4,500,000 in additional profit directly into our clients' pockets.


The Full Package — Complete Marketing & Preparation


Every Elevate listing includes our Full Package as a baseline — 4K video, drone photography, professional staging consultation, repair coordination, vendor referrals, open house campaigns, and a full digital marketing blitz. Where most agents post photos and make a flyer, we deploy a $2,000 per-listing marketing budget plus our $400,000 annual advertising engine across Google, Facebook, Instagram, YouTube, Nextdoor, radio (200,000 daily listeners), direct mail, and email campaigns to our 50,000-person database.


The Trade-In Program — Buy First, Then Sell Perfectly


If you're buying and selling simultaneously in Folsom, the Trade-In Program is a game changer. You qualify for your new home before selling your current one, move in, and then we prepare and list your old home with zero contingency pressure. You never lose your dream home because of a contingency sale — and we maximize your sale price because we have time to prepare your home properly.


Instant Offer — Skip Everything


Not every seller wants to go through a repair process. If you want to sell fast with no showings, no open houses, and a flexible close date, our Instant Offer program provides 3 fair market cash offers within 72 hours. No repairs, no hassle, your timeline.


What Does "Concierge Level" Actually Mean for Your Folsom Home?


At Elevate, we believe every home — whether it's priced at $500,000 or $2,000,000 — deserves to be presented like a luxury listing. Here's what our in-house team delivers on every listing:


Professional staging design and installation

4K photography, drone video, and 3D floor plan scans

Custom property website

Full vendor coordination — from contractors to cleaners

Pre-inspection management and certified repair completion

Dedicated marketing team with a per-listing ad budget

Zillow Premier placement

Weekly seller update calls throughout the process

Real Results from Real Folsom-Area Clients

"From our first meeting with Steve we chose the path we wanted to take and took his suggestions for getting the most from our sale... we listed higher than we thought was possible and had four offers over our asking price in ONE weekend." — Lynn Krogstad

"Elevate's team had contractors readily available and quality work was done quickly. Not having to arrange all that ourselves while trying to pack was so helpful! The costs for all the work were excellent." — Rick | Concierge + Trade-In Program

So — Should You Repair or Improve Before Selling in Folsom?


Yes — but strategically, and with the right team behind you. The repairs and improvements that matter most are the ones that create an emotional connection with buyers, remove objections, and position your home to command top dollar in the current Folsom market.


The question isn't whether to prepare — it's how. And with Elevate's Concierge Program, you don't have to pay for it upfront, manage vendors, or stress about the process. We do it all for you.


Our clients net 10–20% more than the market average. Our properties are marketed to over 200,000 people daily across radio, digital, and print. We are the #1 small team in the region, #8 in the state of California, and ranked in the Top 1,000 Realtors in the United States.


There is nothing "traditional" about what we do — and that is exactly why our clients win.


Ready to Sell Your Folsom Home for More?


Contact Elevate Realty Group today for a free, no-obligation home selling consultation. We'll walk you through exactly which repairs and improvements make sense for your specific home and budget — and how our programs can put more money in your pocket at closing.


📞 916-862-5463

🌐 www.homesbyelevate.com

⭐ Reviews @ HomesByElevate


Serving Folsom, El Dorado Hills, Roseville, Rocklin, Sacramento, and the greater Sacramento region.

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Can I Actually Afford to Buy in Sacramento Right Now? 7 Questions Answered

By Steve LaMothe • May 14, 2026
Elevate Realty Group answers 7 top Sacramento buyer questions on down payments, offer strategy, contingencies, neighborhoods & rates. Get your free buyer consultation today.

3 Tips for Getting the Best Deal on a New Construction Home

By Steve LaMothe • May 6, 2026
Builders are offering massive incentives right now. Here's how to find them, navigate the process, and make sure you're getting the best deal possible. A lot of my clients over the past year and a half have made a big shift. They've stopped chasing resale homes and started targeting new construction exclusively. And once you see the numbers, you'll understand why. Builders across the Sacramento area are offering some of the best incentives I've seen in years. If you know how to find them and how to use them, buying new construction can be one of the smartest moves you make in today's market. Here are three things every buyer needs to know before stepping into a new construction community. 1. The incentives are real, and they're massive. Builders right now are offering $20,000 to $50,000 in incentives on new construction homes, and the primary way buyers are using these is to permanently buy down their interest rate. We have consistently locked rates below 5% on new construction deals for our clients, bringing rates down from the 7% to 7.5% range to 4.5% to 5%. That difference in monthly payment over the life of a 30-year loan is substantial. When you walk into a community, and the salesperson mentions a $5,000 or $10,000 credit, that is the tip of the iceberg. Knowing what to ask for and having someone in your corner who knows these builders is what gets you the real deal. 2. The process is different, and most of the best inventory isn't on the MLS. New construction isn't like buying a resale home, and the biggest mistake buyers make is treating it like one. Most new construction inventory isn't listed on the MLS. That means if you're searching Zillow or Redfin, you're not seeing the full picture. Some of the best deals in any new construction community come from homes that were under contract with a previous buyer who canceled. When a deal falls apart, that home often becomes available with all its upgrades already selected, and sometimes with improved incentives to move it quickly. But you only know about those opportunities if you have relationships with the builders and you know how these communities work. Getting off the internet and into the community with an agent who has those relationships is what separates buyers who get great deals from buyers who end up on a waitlist. " The builder's salesperson works for the builder. Having your own representation costs you nothing and changes everything about the deal you walk away with. " 3. The listing price isn't the real price. This one surprises many buyers. When you see a new construction home listed at $700,000, that home usually isn't available yet, and that price isn't what you'll actually pay. It's either a base price for a home that won't be ready for three or four months, which will then increase significantly with upgrades and options, or it's a price the builder has set to establish future value in the community. Walk into a sales office without your own representation, and the builder's salesperson will offer you a small credit and tell you it's a great deal. In my experience, having your own representation at the table results in meaningfully better outcomes for buyers, typically in the range of 10 to 15% compared to what unrepresented buyers are offered. The builder pays my fee. It costs you nothing to have me in your corner. New construction is one of the best opportunities in the Sacramento market right now, but it rewards buyers who understand how it works. The incentives are real, the inventory opportunities are real, and the savings from having the right representation are real. If you’re thinking about buying a new construction home in Sacramento, reach out to us before you visit any communities. We can show you what's actually available, connect you with the right builders, and make sure you are getting the deal you deserve. Call us at (916) 862-5463 , email Steve@homesbyelevate.com , or visit homesbyelevate.com .

Top 3 Reasons Insurance Is “Out of Whack” in California

By Steve LaMothe • April 15, 2026
Carriers are leaving, the FAIR plan is underfunded, and rate hikes are still coming. Here's what's happening with California insurance and how to save money. If your insurance bill doubled or tripled recently, you're probably wondering what the heck is going on. That's the exact question I've been hearing from homeowners across Northern California, and especially here in Sacramento. Last year and this year, I've had people reach out asking why their premiums skyrocketed overnight. And it's not just fire insurance. Even if you don't live in a high-risk fire area, your normal property and casualty insurance and probably your auto insurance are increasing significantly when you go to renew . I'd estimate 40 to 50%. So let's break down the three biggest reasons this is happening and I'll share a few ways you might be able to save some real money. 1. Carriers are leaving the state. This started around 2019 and 2020 and has only gotten worse. Insurance carriers began pulling out of California because the state was requiring them not to raise their premiums every year. California put caps and restrictions in place, and at the same time, the state was hit with massive wildfire losses. The Camp Fire near Chico and Paradise, the Caldor Fire that pushed almost to Tahoe, the fire in El Dorado County, and, of course, the Palisades fire. These fires created billions of dollars in costs, and that cost is shared by everyone who lives in California. On top of that, the average home price in California is very high. So when carriers lose a hundred or a thousand homes, the payouts are enormous. Many companies have decided it's simply not worth doing business here anymore. 2. The FAIR plan is underfunded and mismanaged. When carriers stopped covering homes in high-risk fire areas, the state of California stepped in and created something called the FAIR plan. This is fire insurance designed to fill the gap for homeowners who couldn't get coverage or whose premiums jumped to $15,000 or more. The problem is that the fair plan hasn't been run well. It's underfunded, meaning the balances owed are more than the premiums being collected. So while you can get coverage in higher-risk areas, the insurance is expensive, and the program itself is on shaky financial ground. " You can't keep premiums the same when the things you're insuring have doubled in value. " 3. A four-year rate freeze is now catching up with everyone. This is the one that explains why so many people are seeing their bills spike all at once. In 2020, because of COVID, the state of California locked rate increases. Insurers who were still in the state could not raise their premiums. That freeze stayed in place from 2020 all the way until 2024. Now think about what happened during that time. Home prices increased maybe 30%. The cost of building went up 30 to 40%. The cost of trucks and cars went up 30 to 40%. But insurance premiums stayed flat. When the freeze lifted in 2024, insurers had to reset their rates to reflect four years of rising costs all at once. That's why so many people opened their renewal and thought, "My insurance just doubled." It did, and it actually makes sense when you look at the math. You can't keep premiums the same when the things you're insuring have doubled in value. And it's not over yet. I'm estimating another 30% to maybe 40% in price increases over the next two years. Here's how you can save money. If you're in a high-risk fire area like Folsom, El Dorado Hills, Shingle Springs, or Granite Bay, you have options beyond the FAIR plan. There are state-accepted insurance carriers like State Farm where you can use the FAIR plan as your fire coverage and then add what's called a wrap policy from the carrier for your other coverage. But here's the tip most people don't know about. There are next-tier insurance carriers like Delos that can cover you in high-risk fire areas without the fair plan at a much lower cost. These carriers aren't backed by the state of California, but they are backed by multi-billion dollar insurance underwriters, so the risk of them going bankrupt is extremely low. This approach can save you 40% to 50% on fire insurance in high-risk areas. You can also look at lowering your water coverage for floods and installing a meter at your water main that shuts off the flow of water if you have a leak. There are some practical ways to bring your costs down if you know where to look. Insurance is going to be a major issue in California for the foreseeable future. If you h ave questions about how this affects your home's value, your buying or selling plans, or just want to talk through your options, reach out. You can call me at (916) 862-5463 , email me at Steve@homesbyelevate.com , or visit homesbyelevate.com . 

Don’t Let the PMI Trap Stop You From Building Wealth!

By Steve LaMothe • March 13, 2026
Many buyers wait years to avoid PMI, but that delay can cost far more than the temporary monthly expense. Many buyers believe they must save a full 20% down payment before buying a home. It sounds like the responsible choice, so people often delay their plans until they reach that number. The problem is that waiting to avoid PMI can keep buyers on the sidelines much longer than they expect. I recently spoke with a first-time buyer who almost purchased a home about five years ago. She decided not to move forward because she didn’t want to pay PMI. Her goal was to save enough to put 20% down. Today she’s still renting, and that situation highlights something many buyers don’t realize. Waiting to avoid PMI can sometimes cost far more than paying it for a short period of time. What is PMI? PMI stands for private mortgage insurance. Lenders require it when a buyer puts less than 20% down on a conventional loan. The insurance protects the lender if the borrower defaults on the loan. In most cases, PMI costs between about $100 and $300 per month, depending on the loan amount and the size of the down payment. Buyers who put 5%, 10%, or 15% down typically have PMI included in their monthly payment. Because of that extra cost, many buyers assume they should wait until they’ve saved 20%. However, that decision often delays homeownership longer than expected. A PMI doesn’t last forever. One of the most important things to understand is that PMI is usually temporary on conventional loans. Once a homeowner reaches 20% equity, PMI can be removed. Equity builds through regular mortgage payments and possible increases in property value When those factors combine, and the loan reaches 20% equity, the homeowner can request that the lender remove PMI, sometimes after completing an appraisal. For example, if PMI costs $200 per month, that equals $2,400 per year. After a couple of years, the homeowner may be able to remove it once the equity requirement is met. " Paying PMI for a few years may cost a few thousand dollars, but waiting to buy can mean missing out on years of home equity growth. " The cost of waiting. The bigger issue is the opportunity cost of waiting. Saving 20% down often takes longer than planned because everyday expenses and unexpected costs slow the process. What buyers expect to accomplish in a couple of years may turn into five or even ten. During that time, home prices may increase, which means the same home may cost more later. While someone tries to avoid paying a few thousand dollars in PMI, they may miss the chance to build tens of thousands of dollars in home equity. What buyers should focus on? Instead of asking how to avoid PMI, buyers should focus on whether they can comfortably afford the home and the monthly payment. If the payment fits within the budget and the buyer is financially stable, PMI shouldn’t be the factor that stops them from buying. In many cases, it’s simply a temporary cost that allows someone to enter the market sooner and start building equity. PMI gives buyers a practical way to enter homeownership sooner without waiting years to save a full 20% down payment. While it does add an extra monthly cost, that cost is often temporary and may be far less than the equity a buyer could miss by waiting too long to purchase. Understanding how PMI works, when it can be removed, and how it affects the full monthly payment can help buyers make a more confident and informed decision. If you need more information about how PMI works or want help reviewing your options, reach out at (916) 862-5463 or visit homesbyelevate.com . Starting the conversation early can help you understand what’s realistic for your budget and whether buying sooner makes sense for you. 

You Have 2 Months To Get FREE Down Payments!

By Steve LaMothe • February 16, 2026
The California Dream for All program returns with limited funding. It’s a chance to get state support with your down payment so you can step into your first home sooner. Wondering how to get a big boost on your first home without taking on a huge loan? If you’ve been searching for smart ways to step into your first home sooner, I have good news for you. The California Dream for All program is a first-time homebuyer loan that created major excitement when it first launched a couple of years ago, with $100 million in state funding fully claimed in just one week. The program helps first-time buyers with down payments to make homeownership more accessible, and thousands of applicants across California quickly took advantage of it. There were also lessons learned along the way, including cases where higher-income applicants received loans they shouldn’t have, which helped shape how the program is run today. Now that the California Dream for All program is returning in 2026, here is what you need to know. 2026 program window. On February 24, 2026, a new application window will open. First-time homebuyers who are interested should prepare to act quickly, because the available funding will likely be claimed fast. It is important to gather necessary documents and information in advance to increase the chances of qualifying. " The California Dream for All program helps first-time buyers with down payments, making homeownership more accessible. " How it works. This program is a shared equity loan. The state provides up to 20% of the down payment, with a maximum of $150,000. There are no monthly payments and no interest while the homeowner owns the property. When the home is sold, a portion of the equity goes back to the state, and the homeowner keeps the remaining equity. This allows buyers to enter homeownership with a lower upfront cost and still benefit from future appreciation. Eligibility requirements. Applicants must be first-generation and first-time homebuyers, meet income limits of roughly $125,000 to $150,000, and be California residents purchasing a primary residence. If the home is refinanced in the future, the shared appreciation must be repaid to the state. The California Dream for All program gives first-time buyers a rare opportunity to enter homeownership with state assistance, make no payments while owning the home, and benefit from future appreciation. It’s important to act quickly because funding is limited and will likely be claimed fast. Preparing financial information in advance and working with a knowledgeable lender can help ensure a smoother process and clarify how shared appreciation works. If you need more information about the program or want help preparing, reach out at (916) 862-5463 or visit homesbyelevate.com . Starting the conversation early can help you take full advantage of this opportunity.

This Tax Strategy Will Save You Thousands

By Steve LaMothe • February 9, 2026
Selling a high-value home? Proposition 19 can shield you from a property tax shock on your next purchase. Start planning your transition now. Are you worried that moving to a new home could cost you more in taxes than you expect? I’ve seen it happen a lot in California: people stuck in homes that are way bigger than they need, just because selling and buying somewhere else would spike their property taxes. That’s exactly what Proposition 19 was designed to fix, and understanding it can make a big difference if you’re thinking about moving or planning for retirement. Here’s what you need to know. What is Proposition 19? Prop 19 passed back in 2020, and it deals with transferring your tax basis from the home you currently own to a new home you want to buy. Before this law, if you wanted to sell your home in a high-cost area, you couldn’t take your old tax basis with you. That meant many homeowners were trapped, paying much higher taxes if they moved. Why prop 19 matters. For example, if you bought your home 30 years ago for $200,000 and it’s now worth $1.5 million, your property taxes might only be around $4,000 a year due to California’s limits on annual increases. Buying a new $1 million home could push your taxes up to $12,000 a year, creating a big barrier for older homeowners. Prop 19 solves this by letting you transfer your existing tax basis to a new home, making it easier to downsize and increasing available inventory in the market. " Downsize or relocate without higher taxes thanks to Prop 19. " Who qualifies. To use Prop 19, you generally need to be 55 or older. Exceptions exist for people with disabilities and disabled veterans under 55, but it’s still important to check the rules. Inherited homes, especially those in a trust, have additional considerations, so working with a tax professional is recommended before making any moves. Rules and requirements. There are a few rules to keep in mind. You must buy your new home within two years of selling your old one, so selling and buying at the same time isn’t required. This process isn’t automatic. You need to contact the county assessor and file the proper paperwork. Remember that your tax basis is different from your home’s market value. For example, if your tax basis is $350,000 and your home sells for $1.5 million, the transfer only applies to the $350,000 basis, not the full sale price. Key benefits. One of the best parts of Prop 19 is that you can transfer your tax basis up to three times. It’s not just a one-time opportunity anymore. You can use it to move closer to family or to a location with specialized healthcare, anywhere in California. This is a big change from the old system, which was county by county and didn’t always honor transfers. If you’re thinking about moving in 2026, it’s a good idea to start planning now. On average, it takes three to six months to get a home ready for sale. Taking the time to plan ensures you can take full advantage of Prop 19 and make a move that makes sense financially. Have any questions about moving, or unsure of what steps to take? Don’t hesitate to reach out at (916) 862-5463 or visit homesbyelevate.com . Starting the conversation now can make a big difference when planning your next move.

Big News in 2026: No Credit Scores to Qualify for a Mortgage?

By Steve LaMothe • January 8, 2026
The old rule that auto-rejected lower credit scores is officially gone. Here’s what this quiet but significant change means for your homebuying chances. Can you still qualify for a mortgage if your credit score isn’t perfect? That’s a question more buyers should be asking, because there’s been a quiet change in how mortgages are reviewed. The update came out a few months ago, but surprisingly, it hasn’t been widely talked about or clearly explained. Because of that, many buyers may not realize how this shift could affect them, so I’m sharing it with you. The new mortgage review process. Fannie Mae and Freddie Mac, the two major players that buy most mortgages, quietly changed their underwriting rules. Now, applications with credit scores under 620 can be reviewed and may qualify for a conventional mortgage. Before this, a score below 620 meant an automatic decline with no chance to explain your situation. Even someone with a 585 or 600 score would be shut out immediately. Credit scores don’t always tell the full story. Balances report on different dates, so your score might look lower than it really is, even if you pay responsibly. For example, I use several business credit cards and pay them off at the start of each month, but one card reports later in the month. Even though I’ve paid it down to zero, it can still show a high balance and temporarily lower my score. This change helps people with lower credit scores for reasons that aren’t real risks—like self-employed buyers or those with timing issues—by giving them a chance to have their applications reviewed instead of being automatically declined. " Even if you don’t qualify today, that doesn’t mean it’s the end of the road. " What this means for homeownership. This doesn’t mean unqualified buyers are suddenly getting approved. It simply opens the door to more realistic evaluations. Fewer automatic declines mean more people can be properly reviewed instead of dismissed based on one number. Some people worry this could lead to risky lending, but I don’t see it that way. Underwriting still exists, and lenders are still evaluating risk. This change just removes the hard stop that prevented otherwise responsible buyers from even being considered. If owning a home is something you want someday, the biggest takeaway is this: it’s worth checking to see if you qualify, no matter what your credit score is. Now there’s a much stronger case for at least having the conversation. Even if you don’t qualify today, that doesn’t mean it’s the end of the road. You can put together a plan to work toward it and understand exactly what needs to change to get there. I’m not a lender, and this isn’t lending advice. I’m simply sharing a recent change that I think is important for buyers to know about. If you want to learn more or see how this applies to you, call us at (916) 862-5463 or homesbyelevate.com . Let’s put together a plan to help you get your dream home.

A Simple Guide to Capital Gains Exclusions for Home Sellers

By Steve LaMothe • December 9, 2025
Capital gains exclusions let many sellers keep up to $500,000 tax-free, helping protect the equity they built. Most people never talk about the one rule in real estate that can help you keep more money than almost anything else, yet it plays a significant role in how homeowners build real wealth. Capital gains exclusions are simple, legal, and available to almost every homeowner in the country. However, many sellers don't fully understand how they work or why they matter. Here’s everything you need to know about capital gains and how you can use it to your advantage when the time comes to sell your home. What are capital gains? Capital gains are the profit you make when something you bought increases in value, and this gain is not earned through employment or wages. If you buy a home for $100,000 and later sell it for $200,000, the extra $100,000 you receive is considered a capital gain. The government taxes these gains at lower rates than regular income because investing in assets like homes and stocks helps you grow your savings and also supports the economy by keeping money moving. How do capital gains exclusions work for homeowners? The real power shows up when you sell your primary home and qualify for a capital gains exclusion. The IRS allows single homeowners to exclude up to $250,000 in gains from taxes, while married couples can exclude up to $500,000 because each spouse receives a $250,000 allowance. This can have a major impact on how much money you keep when you sell. "Understanding capital gains rules helps sellers protect their equity and avoid paying taxes they may not actually owe." Imagine buying a home for $100,000 and selling it years later for $600,000. Your gain is $500,000, and a married couple in this situation would owe nothing in capital gains taxes. You walk away with the full amount and keep every dollar. It is one of the few ways in America to earn a large profit and pay no taxes on that growth, which is why homeownership is such an effective wealth-building tool. When do taxes apply to capital gains? You only pay taxes on the portion of your gain that exceeds the exclusion. If you sold the same home for $700,000, your gain would be $600,000. A married couple would exclude $500,000 and owe capital gains taxes on the remaining $100,000. These taxes are still lower than ordinary income taxes, but the cost can be high. In California, it is common for sellers to pay between 25% and 35% in combined state and federal taxes on the taxable amount. Without the exclusion, many homeowners would lose a large portion of their equity to taxes. Why does it matter for wealth building in real estate? The capital gains exclusion is one of the most substantial financial benefits tied to homeownership because it allows you to build equity, keep more of your earnings, and use those gains to move into your next home. This advantage does not exist in the stock market, where every gain is taxed. Your primary home is one of the few assets that let you grow your money tax-free when you qualify for the exclusion. This rule applies only to your primary residence and doesn't apply to rental properties. Still, for many homeowners, this is a key path to long-term wealth and financial stability. If you have questions about capital gains or want to understand how this applies to your situation, feel free to reach out at (916) 862-5463 or visit homesbyelevate.com . I'd be happy to help you ensure you understand everything you need to maximize your capital gains.

What To Consider Before Getting a 50-Year Mortgage

By Steve LaMothe • November 21, 2025
You might be able to afford a larger home or a home in a better neighborhood, but there’s a catch: you’ll pay more interest over time. Are you curious about how a 50-year mortgage could impact your future home-buying plans? While it sounds like a great way to stretch out payments and afford a larger home, it’s important to understand both the benefits and drawbacks before diving in. Let’s break down everything you need to know about this long-term mortgage option and whether it’s a good fit for you in today’s housing market. What is a 50-year mortgage? It’s a loan where you pay off your home over 50 years instead of the usual 30 years. The biggest difference is that the payments are stretched out over a longer period, which can help lower your monthly payments. But here’s the catch: You’ll pay much more in interest over time. Interest is the extra money you pay the bank for borrowing their money. The longer you borrow, the more interest you pay. How this helps you buy a home. One of the main reasons someone might consider a 50-year mortgage is to make homeownership more affordable. If you're struggling to make higher payments on a traditional 30-year mortgage, a 50-year mortgage could lower your monthly costs. This means you might be able to afford a larger home or a home in a better neighborhood. For some people, this can be a way to enter the housing market when they wouldn't have been able to afford it otherwise. "The right choice depends on your personal goals, your ability to pay, and how long you plan to stay in the home." What are the risks? While the lower monthly payments sound good, there are some important risks to consider. First, since the loan is spread out over 50 years, you’ll end up paying a lot more money in interest over the life of the loan. Even though your monthly payment is lower, the total amount you pay to the bank will be much higher than if you took a 30-year mortgage. Also, it's important to remember that most people don’t stay in the same house for 50 years. If you plan to move or sell your home before then, you may not see the full benefit of the lower payments. Who should consider this option? This could be a good option for people who are struggling to afford a home with a traditional loan, but it’s not right for everyone. If you’re planning to stay in one place for a long time and can handle the higher total cost, it could make sense. But if you think you’ll move in the next few years, you might be better off with a traditional 30-year mortgage, where you’ll pay less in interest over time. Is it the right choice for you? Choosing a mortgage is a big decision, and a 50-year mortgage is just one option. It can help make homeownership more affordable in the short term, but it also comes with long-term costs that you should carefully consider. The right choice depends on your personal goals, your ability to pay, and how long you plan to stay in the home. If you're interested in learning more about mortgage options or need help navigating the home-buying process, I can help. Call me today at  (916) 862-5463  or email me at  STEVE@HOMESBYELEVATE.COM  to get started on your journey to homeownership!

Sacramento Homebuyers: Interest Rates Are Now Under 5%!

By Steve LaMothe • November 6, 2025
Rates just dropped, and it’s sparking buyer activity across Sacramento. Find out how to take advantage before the rush. Is now a good time to buy or sell in Sacramento? 2025 is almost over, and it feels like the year just flew by. You might’ve heard lately that the Fed has lowered interest rates. All year, I’ve been calling the market sluggish, and that’s still true. Homes are taking longer to sell, around 50 to 55 days on average. Prices are adjusting too, with average sales down 1% to 2%, meaning some neighborhoods are still seeing values decline. As the holidays approach, I want to share some updates about the Sacramento real estate market. Interest rate trends. Interest rates have dropped a lot since January. Back then, rates were between 7% and 8%, which is very expensive given average Sacramento home prices around $500,000 to $550,000. Now, we’re seeing rates consistently in the fives. On conventional loans, buyers are locking rates around 5.5% to 5.8%, and many are getting 6% or below. Sometimes you might pay a small fee to get under 6%, but almost everyone is well below 6.5%. Rates may continue to drop gradually over the next year, maybe a quarter point every couple of months, but the Fed is being careful not to push prices back up too fast. "The holiday season can be a smart time to buy, with fewer people are looking during this period." Implications for buyers. For buyers, this is great news. Inventory has increased and is almost back to pre-pandemic levels, giving you more choices and less competition. The holiday season can also be a smart time to buy since fewer people are looking during this period, which could mean some great deals. Remember, you can lock rates in the fives now and refinance next year if rates drop further. Implications for sellers. Sellers shouldn’t expect prices to skyrocket immediately, but lower interest rates will bring buyers back into the market. That makes fall or the fourth quarter a potentially good time to sell, with motivated buyers looking for homes at manageable rates. Now, for a little holiday fun, our free pie event is back! From November 19th to 21st, you can come pick up a homemade pie. We’ve been doing this for 10 years, and it’s always a favorite. We’re making 150 pies, but spots are filling fast, so check your email or mailbox to reserve yours. It’s a fun tradition, and we love seeing everyone in person. Whether you’re thinking about buying, selling, or just staying informed, we’re always here to help. Visit our website at HomesByElevate.com for more info. We can’t wait to see you at our pie event and connect before the year wraps up!
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