If you've decided to move, whether to another home or a retirement community, then you may want or need to sell your present home. Selling your home isn't as simple as finding a buyer. Here are some tips and issues that you should consider.
- Plan ahead, take your time, and don't rush into a sale. It takes time to carry out several important steps in making the best sales decision. These steps include:
- Determining the accurate value of your home in today's market. You may wish to obtain a comparative market analysis, an appraisal or both.
- Considering the impact that the income from the sale of your home may have on your larger financial picture including capital gains tax implications and how you will invest the proceeds from the sale.
- Deciding whether you will use a real estate agent and selecting the right agent.
- Determine the true value of your home in today's market. Many individuals and couples who have lived in their homes for thirty to fifty years won't have a realistic valuation of their home. Determining this value is a must before you put your home on the market. If you are working with an experienced real estate agent, he or she will be able to prepare a market analysis and also to work with you on looking at your home's condition and how that may affect its sale value. For example, Are your interiors up-to-date or dated? Have you deferred maintenance? Would a potential buyer consider your home to be "move-in" condition?
You may also wish to have a professional appraisal conducted. Your bank may be able to recommend a reputable appraiser with knowledge of homes in your neighborhood.
- Select the real estate agent that's right for your needs. If you plan to use a real estate agent as most sellers do, then you may wish to consider an agent who has experience in working with senior sellers.
- Consider and plan for potential tax consequences. Although the capital gains tax exemption on the sale of a home is $500,000 for a married couple and $250,000 for an individual, the value of your home, particularly if you have lived in it 30 years or more, may have grown beyond those sums. If the appraised or potential market value of your home is larger than these amounts, you may wish to consult your tax advisor about the tax consequences and your options.
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