Good News!

Perhaps the best news for homeowners, particularly those you have built up large amounts of equity over the years, is the new tax law. You are now able to sell your home without paying tax on the first $500,000 of capital gains (for married couples) and the first $250,000 of capital gains (for single taxpayers). What's more, this is not a one-time capital gains exclusion -- you can take advantage of this capital gains exclusion again and again -- as long as you live in the home being sold for two of the previous five years.

Consult your tax advisor before you make a move to make certain you are in compliance with the requirements necessary to take advantage of the new law.

Preparing Your House for Sale

Consider an Inspection: It is important to know what you are selling. If you have your house inspected well in advance of your planned sale, you will have the opportunity to repair items which might be a deterrent to potential buyers. The inspection should include the foundation, structural integrity, electrical and plumbing systems, heating and air conditioning, roof, shingles, and the like.

Spruce It Up: There are many low-cost embellishments you can make to your home to make it more attractive to potential buyers. If you begin well in advance, you can do much of the work yourself. Some of the projects you might want to undertake yourself in preparation for a sale include:

• Paint interior walls a neutral color,
• Caulk window and door frames,
• Fix any cracked glass,
• Clean all windows, inside and out,
• Replace dirty or damaged screens,
• Upgrade your landscaping and trim back overgrown shrubs,
• Clean interior and exterior light fixtures,
• Regrout bathroom tiles and scrub all tiles to remove hard-water spots and mildew,
• Clean gutters,
• Upgrade closets with new fixtures to eliminate the cluttered look. Consider having a garage sale to get rid of items you no longer need. Uncluttered closet space will increase perceptions of the home's storage capacity.

• Repaint house exterior,
• Roof replacement,
• Electrical and plumbing system upgrades,
• Replacement or upgrading of kitchen cabinets.

• Keep closets from becoming cluttered,
• Vacuum, sweep, and mop frequently,
• Keep bushes trimmed,
• Sweep the front walk and driveway,
• Position fresh flowers at key points in the house (entry way, bedrooms, kitchen),
• Keep clutter inside the house to a minimum,
• Make certain lawn is mowed at least weekly,
• Clean cat litter boxes daily,
• Clean countertops,
• Make all beds.
• Organize and get rid of junk in garage.

• Open drapes,
• Turn on lights, particularly in dark areas of the house,
• Make sure the television has been turned off,
• Play soft music,
• Consider baking bread -- the aroma will stay in the kitchen for hours.
• Make sure pets are not under foot.

Key to the successful sale of your home is setting the right price. Of course, you don't want to leave money on the table, so you don't want to price too low. Unfortunately, this is the main thing most people are worried about when setting the price of their home. Just as important is not setting the price too high. With too high a price, very little traffic will come through your home. This, in effect, wastes all the hard work you have done preparing your home for sale.

Your Realtor should do an analysis of the selling prices of similar homes in your neighborhood. Your listing price should not deviate far outside the range of comparable properties. Certain adjustments can be made to the listing price to account for condition and amenities, but the final per-square-foot price should be close to that of other homes sold and listed in the neighborhood.

Should You Begin Searching for a New Home Before You List Your Current Home?

Unless you have enough capital and income resources to purchase another home without having sold your existing home, it is a good idea to list your house before you begin your house hunting in earnest.

                       Niki Mettrick

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