| | 1. INTRODUCTION Asking for Opinions on Selling
Market Timing When Selling
Tax laws
Making the decision to sell your home can be very emotional and stressful. The reasons for selling are many: financial circumstances, age, sickness, or divorce, expanding or contracting families, upward mobility or a company transfer. Whatever the reason, making the decision isn’t any easier. Selling your home isn’t the end of the process either. You still have to pack and move, find a new home and get settled in.
Asking for Opinions on Selling
Before making a decision to sell most people will consult friends, family, co-workers, financial advisors and may be a real estate agent. Remember, the final decision is yours, do what makes you and your family happy within your financial plan and budget. Just a word of advice, I would discount any opinion from a real estate agent. Ask any real estate agent at any time and they will say it’s a good time to sell. Agents only get paid if someone buys or sells real estate. Market Timing When Selling
Ask anyone and you’ll get a different opinion on when is a good time to sell. The big reason give for not selling is that it’s not a good market. You don’t need a good market to sell a home. Priced correctly, almost any home will sell quickly. The reason a home does not sell is because it’s priced too high for it's present condition and location. Many sellers make the mistake of pricing their home based on what they need to get out of it. Unfortunately, buyers don’t care what you need to get out of the property. They base their offer on what other similar properties have sold for in the past and what similar properties are selling for at present. Tax laws
There may be tax implications to selling your home so before making any decision I would advise consulting your financial advisor. Below is a brief summary of the new tax laws: - An exemption of up to $250,000 of long term capital gains for a seller's principal residence. Long term is classified as 24 months or greater.
- Couples will get up to a $500,000 exemption for long term capital gains.
- Exempt amounts are reusable every two years. This eliminates the old once per lifetime "$125,000 gain rule".
- The maximum tax rate on capital gains over $250,000 will be reduced from 28% to 20%.
- The roll over provision is gone and the only provision for the new law is that one must owner occupy their principal residence for two years or more.
Note: This tax information is for informational purposes. Please consult with your financial advisor. | |
