It's never easy to sell your home - not because it's hard to part ways, but because it's much harder to find buyers now. So if you plan to sell your home in 2016, here are some things you need to know to make the selling process much easier, in addition to grabbing the best deal possible.
1. Seller's market
Even though the U.S. financial crisis reached its peak in 2008, home prices only reached a bottom low three years later. However, home prices begun rising again since early 2012. In fact, the Case-Shiller National Home Price Index is already coming close to matching its highs back in 2006 and 2007.
According to CNN, the area you live in is essential in figuring out what you can expect from the seller's market. Apparently, it would be much easier to sell a home if it's located in an area that seem to have a more promising economic future.
2. Mortgages could raise expenses
Of course, mortgages are a key factor too: "how much sellers receive for their homes is how much buyers can afford." Lower mortgage rates can help boost price increases, as evidenced by the last few years.
But now that the Federal Reserve has started a new round of rate increases, the decision to increase mortgage rates might just make the home less sellable. Sellers will have to keep in mind that it buyers may have a hard time purchasing a home due to financing.
3. Tax benefits
Typically, taxpayers are able to get a huge tax break when selling a personal residence due to the exclusion on capital gains. As it turns out, single taxpayers can exclude up to $250,000 on capital gains from their tax, while joint filers can get double the exclusion amount.
But it isn't so easy: there are a couple of hurdles to overcome in order to qualify for the tax benefits. The home must be the main residence of the seller. Not only that, but to get the full exclusion, the seller must have resided in the property for a minimum of 24 months in the past five years.
Some cases allow partial exclusion too, but it is necessary to consult with your accountant or a tax professional to fully understand the tax benefits that come with selling your home.
4. Get help but at the right price
There's nothing wrong with getting help from an expert to sell your house. Most people employ a real estate agent to help put their homes on the market and actually sell them.
In the past, agents normal receive a six percent commission on home sales. Fortunately though, more and more agents are willing to negotiate on lower commissions.
Flat-fee brokerages have also been on the rise - they offer a fixed amount that sellers can avail of, which is most often lower than the percentage commission basis.
