Okay, so you’ve heard over and over again, “It’s a seller’s market!” and “Now is the time to sell!” With markets across the nation at an all-time high and buyers in bidding wars offering tens of thousands of dollars over listing price, these statements definitely ring true. I mean, with equity to be made, how could there be a downside to selling right now?
If you are not selling or relocating out of necessity, it’s important to weigh the pros and cons of selling your home or land.
Where will you move? Think about replacement cost. You’re selling high, your neighbor is selling high. Chances are your dream property is also selling high. All that hard-earned equity may not amount to much if you can’t purchase the property of your choice.
Have you considered capital gains? Yes, talk to your finance guru before selling. You will may be taxed on any financial gains on your property, and that value might come as a not-so-delightful surprise at the closing table. Depending on your state, tax filing status, and tax bracket, you might be paying around 30% in taxes on any gains in the value of your property when you sell it. There are ways to avoid or defer some of these taxes, such as a 1031 exchange, or certain exemption qualifications, and whether or not it is your primary residence. Again, talk to your financial advisor.
BUT WAIT! If I am a realtor, why am I telling you to be cautious when considering selling your home? Shouldn’t I want you to SELL, SELL, SELL so I can have more business? First and foremost, I will always have my clients’ best interests in mind. No, if you are not prepared to take the next step after selling your property, you may reconsider selling in this wild market. I want to see you successful in all aspects of life, including financially. Where there is money to be made, there is money to be spent, and I want to see you come out on top.
If you have weighed your options on selling vs. staying put, or if you need assistance in weighing them, I’m here for you!