Are you planning or considering putting your home on the market in 2016? If so, Parry Custom Homes, a premier on your lot builder in Pittsburgh, shares some information from a recent CNN Money article that highlights some of the key factors to keep in mind before putting your home for sale.
Selling a home is a big deal in anyone’s life, and there are many complicated financial considerations to be aware of to help the process go much more smoothly.
Many homeowners remember the housing bust and how much of an effect that had on real estate prices not that long ago. Yet, since early 2012, prices have been on the rebound and normalizing to what they were before the crash of 2008.
Where you live will be a key determining factor in how much of a seller’s market you can expect. Also, lower mortgage rates have played a factor into how much home a buyer can afford, which has fueled home prices, the last couple of years.
Some fear that the Federal Reserve having begun a new cycle of rate increases will make a move for higher mortgage rates that can make homes less affordable. So far, the small quarter-point boost the Federal Reserve made in December hasn’t had much of an impact on mortgage rates. However, historically tightening has generally led to increased rates on mortgage loans. Sellers will need to be prepared for greater difficulty for prospective buyers trying to get financing.
The biggest tax break for your everyday taxpayer is still the exclusion on capital gains for the sale of a personal residence. Single taxpayers can exclude up to $250,000 in gains for the sale of a home from tax, and joint-filers get a double-sized exclusion of $500,000, only if the home is your main home and you’ve lived in it for 24 months over the past five years.
Lastly, you can’t have claimed the home-sale exclusion on tax returns for the previous two years. Partial exclusions can be available in some cases, but getting the specifics will have to come from a tax professional.
Parry Custom Homes is an established homebuilder in the Pittsburgh area. Call or contact us today for more information about this floor plan option, or to view other homes in our portfolio that may suit your new home needs.