Please refer to this page for the most commonly asked questions about selling Incline Village Real Estate.
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- How Do I Prepare My Home For Sale?
- Is There A Financing Incentive That I Can Offer Buyers To Sell My Home Fast?
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I’m thinking about selling my home. Where should I start?
Before you put your home on the market, you should take the following steps to ensure that selling your home is the right move for you:
- Determine your goals. Are you selling to extract the equity in your home? Do you want to purchase another property to down-size or upgrade?
- Research the market. Find out how much your home is worth in today’s market. If you are planning to purchase another home, research the price, availability, and condition of current listings to ensure that you can afford a replacement home.
- Estimate your cost to sell. Determine your expenses to sell including items such as Realtor® commissions, prorated fees, repairs, closing cost, etc.
- Estimate your cost to buy. Calculate expenses associated with a home purchase such as down payment, home inspection, title work, insurance, and moving expenses.
- Discuss your intentions with a professional mortgage planner. Together, you can determine if selling your home is the most cost-effective option, or if refinancing your home will help you achieve your goals. If you decide to purchase another property, your mortgage planner can pre-approve you for a loan on your new home.
When your home is listed for sale, your options are more limited. Therefore, it is important that you contact a mortgage planner before you start the selling process. To discuss your options, call Marc (775) 833-1014.
Can I refinance when my property is listed for sale?
Without large fees, a lender will not refinance your mortgage if your property is currently for sale. The economics don’t work for the lender.
In most cases a lender only makes a profit on your loan after it has been on the books for more than a year.
A common response I get from borrowers is, “No problem, I’ll take my home off the market, refinance and then put the home back on the market”. Lenders are wise to this move and have requirements when they know a property has been recently listed for sale.
In general, lenders will allow a refinance if the property has been off the market for 3-6 months or if the new loan includes an early payoff penalty. A lender may also allow a refinance if the borrower has a compelling reason why they will not be selling the property, such as, a pending job transfer fell through.
Prior to selling any property, you should consult with a mortgage professional to determine if a refinance would benefit you before you list the property. You may be able to pull needed cash out of your property and lower your monthly payment, and possibly with no closing costs.
How Do I Prepare My Home For Sale?
As a Seller, you only have one chance to make a first impression. If you are short on time and money, the entry to your property is probably the most valuable place to start. Make sure the driveway and walkway are clear and clean. If your landscaping is lacking, add a pot of flowers to brighten things up. Clean the front door or put on a fresh coat of paint if needed. If you are willing to spend a little more money, replace your hardware and footplate to really enhance the entryway.
Prepare your home so potential Buyers see clean, clear interior spaces. Remove all clutter and open the drapes to let the sun shine in! A well lit home appears larger, cleaner, and more appealing to a potential Buyer. Finally, take your dog for a walk during the showing. Most Buyers prefer to freely view a home without the pressure of a present Seller or jumping pooch.
There is much you can do to improve the look of your home, without investing a great deal of money. Call me to get a copy of my pamphlet, “33 Ways to Sell Your Home Fast.” I’d be happy to share more tips with you and assist you in obtaining financing for your next home as well.
Is There A Financing Incentive That I Can Offer Buyers To Sell My Home Fast?
Absolutely! Special tiered-rate programs can offer a unique advantage for both Buyers and Sellers in today’s challenging real estate market. Buyers benefit from financial flexibility offered through tiered interest rates, while Sellers attract Buyers with this strategic financing solution for a quicker home sale.
During the first year of the loan, the borrower pays a rate that is 2 full percentage points below the current prevailing rate for a 30-year fixed. During the second year, the borrower pays a rate that is a full 1 percentage point below the prevailing rate. From years 3 through 30, the loan caps out at the prevailing interest rate at the time the loan was initiated.
Sellers can attach a tiered-rate mortgage program to their property for a limited time, providing added incentive and a sense of urgency. Buyers and Sellers will find a “win-win” situation with this tiered-rate financing solution.
Call me to learn more about strategic financing opportunities to sell your home fast.
If I Sell My Home, Will I Have to Pay Capital Gains Tax?
The IRS permits a maximum exclusion on capital gain of $250,000 for individuals and $500,000 for married couples filing a joint return who sell their home, but of course some conditions apply.
For the five-year timeframe prior to the date of the sale of your primary residence, you must meet the Ownership and Use Tests the IRS provides in Publication 523, Selling Your Home. These rules ensure you have owned the home for at least two years, and lived in the home for at least 24 months out of the last five years. Additionally, you may not have excluded a gain on your taxes from the sale of a different home within the last two years. Note that if you sell your property for less than your original purchase price, you cannot claim a capital loss.
A ‘reduced maximum exclusion’ can apply to those who must sell their home due to a change in their place of employment, health issues or unforeseen circumstances that affect qualified individuals. In all cases, it is best to consult your tax professional or IRS guidelines if you have any questions about the taxes you may be responsible for if you sell your home.
How do I sell my home fast?
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33 Ways to Sell Your Home Fast
I am planning to sell my investment property. How can I retain the most profit in this transaction?
Practically all investment property has appreciated over the last few years. If you are planning on selling yours, keep more of your profit by using a 1031 exchange. It allows you to defer taxes due on the money you have made by rolling your proceeds into property of equal or greater value within the time frame specified by the Internal Revenue Code. You can't do this with your primary home, but you can utilize it for that investment condo that you are going to rent out.
The key is hiring a “qualified intermediary,” a Q.I. to deal with the money until it is reinvested. If you handle the yield yourself, you will lose the tax advantages. Choose a Q.I. who is bonded and insured for negligence and fraud. You can call my office for a local recommendation. Your CPA can also assist you with sidestepping tricky depreciation issues.
A 1031 exchange requires some planning ahead, so be sure to complete your research before starting the transaction. For more information, call Marc today.
