Happy Pumpkin Spice Season!

Alexis Thompson September 23, 2025

Happy Pumpkin Spice season! The marketers of this phenomenon don’t seem to care that here in the Bay Area we are in the midst of our late summer and the temperature is a little warm. Regardless, we’ll sip our autumnal lattes while enjoying the spells of warm days, beautiful light and the hope of a little crispness in the evening air to come.

Recently I was asked to evaluate an investment property for a potential sale and one of the first questions I was asked was, “What happens with taxes if I sell my investment property?” It’s a great question, because in our market, properties have appreciated so much that selling can trigger a hefty capital gains bill.

That’s where a 1031 Exchange can make a huge difference.

What is a 1031 Exchange?

Simply put, a 1031 Exchange lets you sell an investment property and reinvest the proceeds into another “like-kind” property—while deferring capital gains taxes. That means instead of losing a big portion of your profit to the IRS, you can keep your equity invested and growing.

Why It Matters Here Locally

Just last year, I worked with wonderful clients who had owned a rental home for over a decade. They purchased it for around $450,000, and it was now worth nearly $1 million. Selling outright would have meant paying capital gains on almost $500K in appreciation. Instead, we structured a 1031 Exchange. With my help, they identified a replacement property— in Walnut Creek —that not only deferred their taxes but also increased their monthly cash flow.

This is the kind of strategic move that can change the trajectory of your long-term wealth.

Benefits at a Glance

● Tax Deferral – Keep more of your equity working for you.

● Portfolio Growth – Trade one property for several and spread out your risk.

● Property Upgrades – Move from high-maintenance rentals into newer, easier-to-manage options.

● Estate Planning Advantage – Heirs inherit at a stepped-up basis, which can erase the deferred tax bill.

How I Can Help You

A 1031 Exchange comes with rules and tight timelines (you only have 45 days to identify replacements). That’s where having a local Realtor makes all the difference:

● I help you identify smart replacement opportunities quickly, whether here along the HWY 24 corridor or in other high-performing markets.

● I bring market knowledge so you know whether a Lafayette duplex, a Moraga rental, or even a Bay Area commercial property is the best move.

● I coordinate with your tax advisor, escrow company, exchange intermediary and agents on both sides to keep everything running smoothly in order to meet deadlines.

Thinking About It?

A 1031 Exchange isn’t right for everyone, but for many local investors it’s one of the most effective tools to preserve equity and grow wealth. If you’ve been thinking about selling an investment property, let’s chat. I’d be happy to explore whether a 1031 Exchange makes sense for you—and connect you with trusted professionals who can guide you on the tax side.

Of course, you’ll want to talk with your CPA or tax advisor before making any decisions, but I can help you find the real estate opportunities that make the most of this strategy.

Market Update

Thinking about buying or selling this fall? Let’s sit down for a quick market catch-up on three favorite East Bay communities: Lafayette, Orinda, and Montclair in Oakland. Each neighborhood has its own rhythm, but all share one theme—low inventory and strong demand.

Lafayette continues to move at quick pace. With just 1.97 months of inventory, it’s still a seller’s market. Here, homes are averaging 19 days on the market and selling for about 101% of asking price, which means bidding wars aren’t uncommon. The median sold price is around $1.8 million, setting a high bar for both buyers and sellers.

What it means: Buyers need to be pre-approved and ready to write strong offers. Sellers can feel confident that well-priced homes will draw attention quickly.

Over in Orinda, the story is similar but with a slightly more measured pace. Inventory sits at 2.22 months, and homes are selling for about 99% of list price in roughly 26 days. The median sold price is $1.55 million.

What it means: Buyers still face competition and should move promptly, but there may be a touch more breathing room than in Lafayette. Sellers can expect solid offers when their pricing and marketing are on point.

Montclair shows a bit more variety. Inventory is at 1.79 months, keeping it in seller’s territory, but homes spend about 50 days on the market—longer than its neighbors. Properties are closing at roughly 100% of list price, with a median sold price of $1.365 million.

What it means: Buyers may find a little more time to consider options here, though competitively priced homes still move.

Across the board, inventory remains well below the 4–6 months that signal a balanced market, so sellers continue to hold an advantage. If you’re buying, make sure your financing is ready and be prepared to act when you find “the one.” If you’re selling, thoughtful pricing and strong marketing can attract multiple offers and top-dollar results before the holidays.

Curious how these numbers fit your own plans?

I’d love to chat about a personalized strategy—whether you’re buying, selling, or just exploring what’s next in the East Bay.

For personalized guidance tailored to your specific situation, feel free to reach out to me.

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4051 Rhoda Avenue