Peter Gum, Realtor - 01928396 - KW Peninsula Estates

05/02/2026

Tax on Home Value Transfer to Kids
THIS MONTH in REAL ESTATE
Must Know Info for Burlingame Owners and Aspiring Owners

When it comes to helping your children financially, few assets carry as much weight—or as many tax implications—as your home.

A common question homeowners face is whether to sell the house and gift the proceeds, or transfer the property itself. At first glance, selling and giving cash seems like a clean solution. In many ways, it is—but the tax story deserves a closer look.

If you give your home directly to your children, there are generally no immediate income tax consequences for you. However, you may be required to file a gift tax return if the value exceeds annual exclusion limits, and the gift may apply against your lifetime estate and gift tax exemption. Your children will inherit your original purchase price as their tax basis (known as “carryover basis”), along with the embedded capital gain—potentially passing along significant future capital gains consequences.

If you sell your home to a third party—and pay any applicable capital gains tax—then gift the remaining proceeds to your children, they can use that money to purchase their own homes at current market prices. If and when they sell their own home, they would pay capital gains tax on the difference between what they paid for their home and what they sold it for.

Beyond capital gains tax, there is property tax to consider. Under Proposition 19, a transfer of a primary residence to a child avoids full reassessment only if the child uses the home as their principal residence. Even then, the exclusion is limited: if the market value exceeds the parent’s taxable value by more than $1 million, a partial reassessment will occur.

This discussion focuses on wealth transfer during your lifetime. If instead you hold the property until your death and pass it through your estate, your children will receive a step-up in basis to fair market value at the date of death under current law, which will eliminate capital gains tax on prior appreciation.

There are other methods of transferring your home’s wealth—such as selling directly to your children below market value or carrying the financing—that involve additional tax and legal considerations which I’ll cover at another time.

(I am a licensed Realtor for Keller Williams, not a tax professional. This information is intended for discussion, not tax advice.)

04/02/2026

Don't Throw That in the Recycling Bin!
ONE MINUTE in REAL ESTATE
Must Know Info for Burlingame Owners and Aspiring Owners

Here are the top items often placed in the wrong bin – based on local Recology guidelines:

1. Plastic Bags, Films & Soft Plastics
• Grocery bags, sandwich bags, plastic wrap, zip-top bags, and other flimsy plastics jam sorting machinery and are not recyclable. They should go in the black garbage bin or to a store bag drop-off program like that found at Safeway. Green "Compostable" bags go in the green compost bin. Glittery/metallic wrapping paper and black plastics like plant containers go in garbage.

2. Paper and Contaminated Containers
• Soiled paper towels, napkins, and greasy pizza boxes should go to the green compost bin. Containers with leftover food, grease, or liquids (bottles, mayonnaise/ketchup/sauce jars) should be wiped or rinsed out before tossing in the blue recycle bin.

3. Small Plastic Bits & Loose Small Items
• Items like straws, utensils, bottle caps, small bits of plastic, and tiny packaging pieces can slip through sorting screens or be treated as contaminants; they should go in the black garbage (landfill) bin.

4. Hangers & Tanglers
• Wire or plastic hangers, cords, hoses, and similar items can tangle in equipment, are not acceptable, and should go to the black garbage bin.

5. Hazardous or Dangerous Materials
• Batteries, light bulbs, sharp objects (like broken glass/needles), paint cans, propane tanks, and some electronics belong in special hazardous waste or e-waste programs, or delivered to Recology's free public drop-off.

6. Styrofoam & Expanded Polystyrene
• Styrofoam and other like materials need to go in the black bin or be taken to a special drop-off service location.

Miscellaneous items that are acceptable for the blue recycling bin include uncontaminated aluminum foil, printed wrapping paper, clamshell plastic containers (berries/salads), plastic toys, buckets, and storage bins.

Check local “What Goes Where” guides on Recology’s site or WhatBin.com for further information.

02/27/2026

Your Gas Water Heater is…Irreplaceable!
ONE MINUTE in REAL ESTATE
Must Know Info for Peninsula Owners and Aspiring Owners

The Bay Area Air Quality Management District (BAAQMD) has finalized Regulation 9, Rule 6. This legally binding rule prohibits the sale and installation of natural gas-fired water heaters and furnaces that emit Nitrogen Oxides for small Bay Area residential units.

The rules apply only to the sale and installation of new water heaters and furnaces; stoves, ovens, dryers, and other cooking appliances are not impacted. The effective dates start January 1st, 2027 for residential water heaters; and January 1st, 2029 for furnaces. Note that although the rule is adopted, there are ongoing discussions regarding potential amendments addressing affordability and feasibility.

The rule does not require immediate purchase and replacement. Owners can still use or repair their existing gas water heater after the January 1st deadline. But when it comes time to replace, it will no longer be replaceable with another gas water heater. When that time comes, the primary options for electric water heaters include: Storage Tank, Tankless, Heat Pump, and Point-of-Use.

Each of those options are burdened with cost and installment complications which may include an electrical panel upgrade (at least 30 amp breaker and likely a 240V circuit), physical space expansion (a Heat Pump demands 700-1,000 cubic feet of air space), and reconfigured plumbing.

California’s electrification mandates represent an environmental milestone, but pose a financial and installation challenge to homeowners. Economic assistance and rebates are available from numerous sources, albeit typically tied to financial need. The increased demand for permits, labor, and product availability may face bottleneck constraints which have caused some contractors to suggest owners act sooner than later. The planned implementation is still many months away and amendments are likely, so stay informed.

02/02/2026

Home Pricing - Art & Science
ONE MINUTE in REAL ESTATE
Must Know Info for Owners and Aspiring Owners

When it comes to selling a home, the asking price established isn’t just a number—it’s the first impression, a statement of presumed quality, a filter that may remain associated with the house for decades.

Starting a price analysis with a set of carefully selected comparable homes in the subject neighborhood is the first step. But buyers don’t always rely on spreadsheets or logic. They often use instinct, not analysis, to decide whether a home is worth pursuing. A high price can position the home as exclusive—but it must deliver on that promise with premium finishes, a top location, or unique features. A low price may draw bargain hunters and traffic but could backfire by raising doubts about the home's quality and leaving money on the table for the seller.

The second step is to know the buyer audience. Does your demographic analysis suggest the buyer is a bargain hunter or a recent IPO windfall recipient? What does the neighborhood say about the perceived value of the homes? Is the floorplan and location attractive to first-home shoppers or better suited to established trade-up buyers?

The third step is to consider how prices are perceived by your audience. Odd pricing strategies, such as listing at $2,499,999 instead of $2,500,000, can subtly influence a buyer to feel more approachable and can attract value-conscious shoppers. On the other hand, luxury listings often benefit from rounded numbers—$5,000,000 feels deliberate and upscale in a way that $4,999,999 does not. Furthermore, be mindful of the price bracket of your most likely buyer. Buyers can be categorized into their self-defined price brackets, say, “Between $2,000,000 - $2,500,000”; or “No higher than $3,000,000.” If you price just over those maximums, you may lose an entire customer group.

Your home may be “priceless” to you, because your home may reflect a lifetime of memoires, experience, and intimate aspects of what makes the home so special to you. Yet homes perceived as priced too high may not only dissuade prospective buyers from ever taking that first look, but may result in a general lack of buyer interest, causing the home to linger on the market and ultimately require price reductions that encourage a snowball effect of consecutively lower offers.

In real estate, perception is reality. The asking price is the first perception a buyer experiences. Make it fit the home.

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01/10/2026

Peninsula Market Considerations for 2026
ONE MINUTE in REAL ESTATE
Must Know Info for Owners and Aspiring Owners

San Mateo County Outlook, 2026

We recently presented the California Association of Realtors 2026 Housing Forecast, so here is a more specific analysis of the Peninsula.

San Mateo County is expected to deliver a steady, modest appreciation (3-5%) in home prices in 2026, driven by tech employment, low inventory (~2 month’s supply), and the currently lowest interest rates (6.15%) in over a year. Local unemployment has hovered around 4.1%, well below California’s statewide rate and indicative of a stable labor market.

Median household income remains exceptionally high—approximately $156,000, among the highest in the nation—providing a durable base of purchasing power required for the median home price of nearly $2M. While traditional tech and biotech sectors have experienced layoffs and hiring slowdowns (e.g., Gilead, Roche and others), job losses have been selective rather than systemic, and gains in Artificial Intelligence, healthcare, life sciences, hospitality, and professional services have helped offset volatility, perpetually delivering qualified buyers.

Federal, state and local housing policies impact any local forecast. The Fed has yet to indicate lower rates, having just cut them for the third time in late 2025, bringing the federal funds rate down to 3.50%-3.75%, signaling a pause or slower pace for future cuts. Rezoning initiatives, by-right development rules, CEQA streamlining, and new transit-oriented density laws taking effect in 2026 are designed to increase housing supply over time. However, the “lock-in” effect favoring owners with 2-3% mortgages, as well as government policies including restrictions on property tax transfer and the antiquated $250,000 capital gain exclusion, will continue to encourage owners to remain in place.

If you're wondering if this is the year to buy, remember the axiom “The best time to buy real estate is whenever you can."

This perspective is that of Peter Gum, not necessarily KW. Data derives from online sources and is offered for discussion, not as financial advice.

December Market Update

San Mateo County saw the Median Sold Price of a single family home drop from $1,925,000 to $1,850,000 between November and December, up from $1,710,000 in December of 2024. Between November and December, Average Days to Sell increased from 29 to 33 (34 last December), Sales Price to List Price ratio slid from 105% to 103% (104% last December), Months of Inventory dropped from 1.3 to 1.0 (1.1 last December), and Active Number of Homes fell from 424 to 272 (262 last December) having reached a peak of 686 in May.

According to Freddie Mac's Primary Mortgage Market Survey for the week ending January 1st, the 30-year fixed-rate mortgage was 6.15%. Rates have undulated downward from a high of 7.04 on January 16, 2025.

About Peter Gum

Peter lives in Burlingame with his wife Judy. Children Nathan and Megan attend college in Santa Barbara. He has been active in the community receiving the PTA Honorary Service Award for fundraising and volunteerism in support of Burlingame schools, Boy Scouts, church, and youth sports. He served as Chair of the Planning Commission, Sub-Chair of the County Charter Review Committee and CMO of the United Flying Club. He also received the inaugural "Gumbo Award" for outstanding service to McKinley Elementary School and the City Beautification Award for the landscaping and hardscaping he created for his first house in Redwood City.

As a landlord, property investor, and Realtor, Peter offers a unique background enabling broad consultation on remodeling, local development, landlord/tenant relations, and referrals for contractors, architects, financial/tax/legal advisors, and home service vendors. Call anytime.

Peter Gum

REALTOR©

DRE # 01928396

650-627-3791

[email protected]

petergum.kw.com

12/09/2025

"But AI Never Even Saw Your Home!"
ONE MINUTE in REAL ESTATE
Must Know Info for Peninsula Owners and Aspiring Owners

When it comes to property descriptions, Artifical Intelligence has enhanced the ability to transform common into superlative. With the help of AI and Google, enjoy this amusing reality check on typical house descriptions.

“Charming and cozy” vs. Likely very small

“Fixer-upper with potential” vs. Prepare to star in your own house flip saga

“Original details” vs. Perfect complement to your grandmother’s furniture

“Natural setting” vs. Expect deer, raccoons, coyotes, maybe a mountain lion

“Low-maintenance yard” vs. Like a desert

“Bright and sunny” vs. Sunlight does enter the home, a few minutes a day

“Secluded setting” vs. Your GPS may not find it; cell reception spotty

“Priced to Sell” vs. Expect to pay over the asking price

“Generously Sized Primary Suite” vs. Perhaps true versus the laundry room

“Spa-Inspired Bathroom” vs. Expect wood paneling and dry sauna

“Open Concept” vs. Walls removed, privacy elusive, check that permit

If you Like this video, please LIKE this post and let me know your favorite exaggeration so I can mention it in a follow-up.

11/21/2025

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11/20/2025

We've all seen the Before and After home remodeling shots.
Here is the After-the-Before but Before-the-After pics of a home in the middle of remodeling with a $100K+ budget. (kitchen, guest bath, primary bath). Call for details. Let me know what you think.

11/12/2025

Housing Forecast 2026
ONE MINUTE in REAL ESTATE
Must Know Info for Peninsula Owners and Aspiring Owners

California Association of Realtors
2026 Market Forecast

Key Takeaways:
1. Existing, single-family home sales are forecast to total 274,400 units in 2026, an increase of 2 percent from 2025’s projected sales pace of 269,000.
2. California’s median home price is forecast to rise 3.6 percent to $905,000 in 2026, following a projected 1.0 percent increase to $873,900 in 2025 from 2024’s $865,400.
3. Housing affordability* is expected to inch up to 18 percent next year after edging up to a projected 17 percent in 2025 from 16 percent in 2024

“Home prices in California are expected to rise in 2026, but the growth pace will remain mild when compared to rates we’ve seen in past years,” said C.A.R. President Heather Ozur. “For would-be buyers who sat out the competitive market during the past couple of years, that means more opportunities as inventory increases moderately and lending conditions become more favorable. Seller confidence will also improve as home prices stabilize and demand begins to rise again next year after a slow 2025.”

* = % of households who can afford to purchase a median-priced home

10/08/2025

Here Comes the Rain Again
ONE MINUTE in REAL ESTATE
Must Know Info for Peninsula Owners and Aspiring Owners