Selling your home can be a stressful and exciting experience. The home buying and selling season has begun and 2016 is predicted to be one of the best years in real estate since before the recession . If you’ve been on the fence about selling your home, this is definitely the year to do so. Before you sell your home, here are a few things you should know before you do.
It is currently a sellers’ market. The market has a low inventory of homes, meaning there are more buyers out there than there are sellers. This results in bidding wars that can drive prices up above the asking price. Each city does differ between a seller’s market or not, but most cities in California are, especially Los Angeles and San Francisco. Since 2012, home prices have been going up, surpassing pre-recession price ranges.
Mortgages are expected to rise in the next year, but not by much. Ever since the Fed raised interest rates, forecasters have been saying mortgage rates will follow. Although mortgage rates are not directly related to interest rates, mortgages will still increase. Sellers receive whatever buyers can afford, low mortgage rates have helped increase prices in recent years. Mortgage rates aren’t expected to rise more than 1% by the end of 2016, but sellers should expect a bit more difficulty selling their homes in the next coming years. It would be best to act sooner rather than later.
Tax benefits favor home sales. You can receive tax deductions on the appreciation of your home. If you have lived in your home for more than 24 months in the past five years, you could be eligible to receive tax breaks up to $250,000 if you’re single and $500,000 for married couples. For further tax breaks you should speak with your accountant or a tax professional. There are many ways in which sellers can receive tax breaks.
Real estate agents are your best friend. The paperwork alone is a reason enough to hire an agent. The amount of paperwork that goes into buying or selling a home can drive a person mad, let the professionals handle it. An agent is trained in this field and knows exactly what you need. Also, your odds of skipping a step or missing a signature drop significantly when you use an agent.