Thinking Of Selling ?

You've  probably already considered your personal reasons for selling. you  may need to relocate because you're changing jobs. Or, maybe you need a larger home to accomodate a growing family or a smaller home since your children have  moved out on their own. There are myriad reasons why people sell their homes,  but no matter the circumstances, it's in your best interest to approach the  transaction armed with information and assisted by the expertise of a  professional real estate broker or agent.  
Unless you're locked into selling your  home (e.g., you've already accepted a job offer in another city), it's a good  idea to look at the whole picture before deciding to sell.

Assessing  Market Conditions

There's a rule of thumb to keep in mind when deciding to sell your home: Your home is only worth what a qualified buyer is willing to pay at the time it's on the market. The current real estate market
fluctuates based on supply and demand,  interest rates, general economic conditions, and other factors. The same house may sell for more or less under a different economy. Your agent can inform  you of the going price for homes in your area at the current time; this data is  included in a comparative market analysis or visually analyzing comparable data.

Cost Of Selling your house

In todays market, it does not make sense to charge everyone the same standard 6 percent.
Trusted Realty Advisors believes in a fair and reasonable price for services  rendered, just like when individuals pay for other consumer related services.

Our clients like our office because it is small and intimate. Other  companies tend to drive your attention to their teams, the number of agents in the office and the size of the company. Trusted Realty Advisors on the other hand, would like to focus on your needs and selling goals.
There are no hidden fees or gimmicks. You will know up front how much our real estate expertise will cost and how much more of your home's equity you will be able to  retain. It is our goal to get you the most money in the least amount of  time. 

 Tax Implications of Selling

There are many dynamics that can affect your tax liability upon selling your home.  These issues include whether you purchased the home or inherited it, if you used  your home for business or rental purposes, costs associated with selling your home, and any home improvements and  additions that you've undertaken.

The Federal Taxpayer Relief Act of 1997 provides capital gains tax exclusions of up  to $500,000 for married taxpayers  filing jointly and $250,000 for single taxpayers or married taxpayers filing separately. Current capitol gains rates  are 20 percent for those in upper tax  brackets and 10 percent for those in lower  tax brackets. Overall capital gains  rates have been lowered even further -- to  18 percent and 8 percent  respectively -- for assets acquired after December 31,  2000, and held five  years or more.

To qualify for this tax break, you must have used the  home as your primary  residence for at least two of the prior five years; these  two years don't have to be consecutive. If you relocate for your job but don't meet the requirement,  you may be allowed to take a capital gains exclusion proportionate to your circumstances. This exclusion is not a one-time benefit;  you may take advantage  of it once every two years as long as you meet the  qualifications.

The tax rules differ when you sell a home that you've inherited. If you sell the inherited home for a profit, you're required to pay  federal and state taxes on the gain. If you keep the house as a second residence  and/or eventually move into it after renting it to tenants, you may take the  $250,000/$500,000 capital gains tax exclusion if you meet the requirements. When you're deciding what to do with inherited property, you should consider the  current estate tax laws and  basis practices. Beyond these general rules,  it's wise to discuss your home's sale with a tax  professional who can advise  you on tax benefits in more detail.

Timing Your Decision to  Sell

Because most sellers finance a new home purchase with the  sale of their present home,  they usually put their homes on the market before  they begin their search for a new home. Learning the price you can expect from  the sale often sets the pricing parameters for your new home  search.

Obviously, it's not wise to wait until the sale on  your property closes completely before beginning to look for your new home. Timing your search properly with the  buyers' transaction can make the difference between having the available funds  to buy a new home and cutting  down on the interim period between homes.

Have a real estate Question?
Ask Jim.
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909-862-0102

The information contained herein is believed  accurate as of April 25, 2005. It is  intended to provide general answers to  general questions and is not intended as  a substitute for individual legal  advice. Advice in specific situations may differ depending upon a wide variety  of factors. Therefore, readers with specific legal questions should seek the  advice of an attorney. Copyright©  2005 CALIFORNIA ASSOCIATION OF  REALTORS® (C.A.R.). Permission is granted to C.A.R. members only to reprint and  use this material for non-commercial purposes provided credit is given to the  C.A.R. Legal Department.