Selling your home can be a complex transaction with many twists and turns. One of those twists can be the home inspection. Knowing how to best respond to a negative home inspection can mean the difference between closing the sale or putting your home back on the market. It's best to put your ego aside, and prepare to compromise.
If you're reading news publications, consuming social media posts, and/or watching the evening news, then you have probably been hearing a lot about the housing market and how home prices are increasing by healthy percentages around the nation.
What does this really mean to you? If you saw a report that said home prices increased by 5% since this time last year, does that mean that the value of your home increased by 5%?
The single most important factor to consider when selling a house is the price. How much is your house worth in today's local real estate market?
If you are thinking that you should overprice your home and then aggressively negotiate, think again. Overpricing may be the biggest mistake you can make when selling your home. Overpricing leads to a longer listing time and lower selling price.
Here are some things the IRS suggests you keep in mind when selling a home. As always, for advice on tax planning and compliance, check with your accountant and/or the Internal Revenue Service for guidance before taking any action.
1. Taxpayers who sell a home may qualify to exclude from their income all or part of any gain from the sale. To claim the income tax exclusion, the homeowner must have owned the home for at least two years, and lived in the home as their main home for at least two years, during a five-year period ending on the date of the sale.
The answer is that housing industry growth is minimal because too few homes are for sale, and rising prices of homes in many markets have made home ownership financially out of reach for many families.
In the Chicagoland area, how long does it take to complete a sale once you agree to a purchase contract?
Some transactions take longer than others to get from signed contract to closing table for various reasons. Most of them having to do with the buyer securing financing, but other items may add to the timeline like issues arising from inspections, title deficiencies, and any number of unexpected matters.
In the Chicagoland area, the average time from accepted contract to closing per month in 2017 was as follows:
When selling your home, you may qualify to exclude from your income all or part of any gain from the sale of your primary residence when filing your tax return.
There are rules of ownership to determine if you qualify for the exclusion, as well as special treatment of gains and losses and special exceptions. You should always consult with your accountant or the IRS before making any decisions regarding tax compliance.
Here are tips from the IRS to keep in mind when selling your home:
Zillow's Zestimates were referred to by the L.A. Times as "one of the most sensitive perception gaps in American real estate". The perception gap comes from the lack of understanding consumers have about zestimates, how they are determined, and how accurate, or inaccurate, they can be.
Whether your home is a house, condominium, cooperative apartment, mobile home, houseboat, or house trailer that contains sleeping space and toilet and cooking facilities, there are things you should know about home ownership and how it affects your taxes.
Things like how you treat items such as settlement and closing costs, real estate taxes, sales taxes, home mortgage interest, and repairs. There are items related to buying, selling, moving, and owning a home that you can and cannot deduct on your tax return.
If you're thinking of selling or buying real estate in the Chicagoland area, you have probably heard about the very low inventory of available properties to buy. At the moment inventory levels have plunged to new multi-year lows in many areas. There is very little competition for sellers, and there are lots of buyers just waiting for homes to come on the market.
In most Chicago communities inventories are down from 10-30% from this time last year . . . and inventories were low last year at this time.