If you meet certain criteria, you can grab a one time only tax
break from Uncle Sam when you sell your house.
The criteria that allow this once in a lifetime exclusion of up to $125,000 in capital gains ($62.500 if you're married and filing separately from your spouse) are simply that you be age 55 or older and have owned the house and lived in it for at least three of the last five years. If you and your spouse file jointly, only one of you must meet the tests to claim the capital gains exclusion.
It's not always easy to sell a used home, especially in the rough times when supply outstrips demand. There are some steps that can be taken to move properties even in rough times and in bad markets.
Here are a few we recommend
Hire the service of top marketers -
The best agent in the business. Find this leading salesperson by asking neighbors, another reason to mend fences before leaving the old neighborhood, ask neighbors for recommendations and check real estate office advertisements and award plaques naming top salespeople. Invite at least three of these top producers to your home to give you their listing presentations and marketing plans.
Fix up what you have -
In tough times and in tough markets, your house must be close to perfect if it's going to sell. Watch the TV Shows with the same problems.
Price your home to go - Don't price your house out of the market. Decide on a rock-bottom price and then set an asking price no more than 6 percent above that price (Your agent will help)
Be inventive in terms of packaging - To move a house in a slow market, sellers make creative offering, for example, to pay part of the buyer's closing costs or throw in $1,000 for re-decoration or landscaping.
Keep in touch with your broker - Check with your broker after each walk-through to find out what objections buyers voiced ... always fix whatever is wrong. This may not always work out, so be prepared to re-negotiate after each presentation.
Some "experts" say you should simply avoid real estate agents and their commissions, (more on that later). You will learn here how to earn or save thousands of dollars. Know your rights and responsibilities in your dealings with brokers, it will help your comfort zone when talking to agents.
The tips below will help:
Spend time looking for a broker who knows your community and, equally important, with whom you feel comfortable.
Remember that, by law, broker commissions are no longer established by any government agency or by trade associations. Brokers set his own commissions.
Negotiate for a lower commission rate. Some brokers will bargain; it's worth a try.
Be sure to read your broker's contract, including the listing agreement. If you have any questions, get them answered or take the documents to your attorney for clarification. (Suggested Always)
If you sign a contract and accept a buyer's "earnest" money, you've agreed to the deal, and the deal is done unless the buyer backs out.
If you sign a contract and then back out of the deal, you could face a lawsuit and, in any case, could be held liable for the broker's fee.
According to experts, there are some easy improvements you can make to your already luxurious home if you want to sell quickly and for the highest dollar. In order according to resale value, they are as follow:
Central air conditioning
Hard wood floors
Adding a family room
Adding a fireplace
A formal dining room
A separate linen-storage room
Remodeling Kitchen and Bathrooms (Upgrade)
Installing smoke/oder and fire detectors
A hood with a fan over the kitchen range
Providing a separate dressing area off the master bath
The only thing worse than owning a house you can't sell is owning a house you can't sell after you've already bought and moved into a new home. Here, according to the experts, are some steps you can take to move your old house more quickly and to make the whole experience at least a bit less painful.
Don't try to sell your old house with all its furniture moved out. An empty house looks flawed enen if it's not Rent furniture for your new home if you must
Rent your old house as you continue to show it. Ideally, you will be able to lease the house with an option to buy. Charge about 20 percent more than current market prices for a year or two and give the lessee an option to buy the house at a predetermined price any time during that period. If he buys, the extra rent counts toward the down payment; if not, it goes in your pocket.
Be sure to keep a record of all expenses related to the old home and to deduct those expenses up to the amount of rental income received.
Remember that, once the old house is sold, proceeds are tax-deferred if applied against the cost of the new home.
