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Ask the Expert

Why Sell Your Home

 

There are several factors to consider when deciding whether you should sell your home. Some important factors that should be considered prior to selling are:

  • Market Conditions, i.e. recent sales in your neighborhood, interest rates, inventory of suitable homes listed for sale, seasonal advantages or disadvantages such as spring vs. winter.
  • Tax Implications- Have you owned and occupied your home for at least 2 of the last 5 years so you can take advantage of the 250k-500k tax free gains? In the case of an Investor, have you owned the property for at least 1 year and one day so as to avoid an additional short term capital gain tax? Also for investors, will you be able to identify a property within 45 days from closing and close on it within 180 days from closing so you may defer the gains by doing a 1031 Starker Exchange?
  • Is your household running out of space and storage based on your lifestyle and or is your family growing in numbers requiring more space, bedrooms and bathrooms?
  • Are there economic indicators that could bring values down in your area such as declining school rankings, an increasing number of rental properties or industrial type development that make the area less attractive to future buyers?
  • Are you able to parlay your equity into a larger home in a more desirable area without putting too much added strain on your monthly budget?
  • Is your commuting time to work causing you excessive stress, time wasted in traffic and reducing your overall quality of life?
  • Is your home in need of extensive repairs and or updates? In many locations, doing such repairs and updates will not bring a very attractive return so it may be advantageous to simply sell the property "as-is" and invest it in a better location.
Job opportunity or Job transfer can often cause one to sell their home and in that case the market conditions of your existing market and the destination market should be weighed heavily before accepting the terms of the new employment.  
 
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Kenneth W Rose, Broker

Information contained on this website is deemed reliable but not guaranteed