SO YOU’RE THINKING ABOUT SELLING YOUR HOME?
You came to the right team! With our unique expertise in real estate and land use law (Stephanie) and with a licensed and bonded residential specialty contractor (Frank), the Marshall & Wood team offers more than most realtors and can answer ALL of your questions and provide services every step of the way.
There are many factors to keep in mind as you ponder how and when to list, and as you prepare your property for sale. While it can feel overwhelming, we are here to ease your mind with an outline of points to consider as you move forward.
FINANCIAL CONSIDERATIONS
Whether you’re moving to a different location for work, downsizing, looking for a property with more space, or simply just starting over in a new home, we encourage our clients to review the following in making a decision to sell their home:
• Do you own the property outright, or is there a mortgage? If you have a loan against your home, how much is remaining?
• Are there any other liens on the home that might affect how much you would clear in a sale? We suggest running a preliminary title report if you have owned the home for more than a couple of years to make sure there are no surprises down the line!
• How long have you owned your home? If less than 1 or 2 years, there may be liabilities in the form of capital gains taxes when you sell.
• Consider consulting an accountant regarding potential tax liabilities after a sale. For a primary residence, up to $250,000 of profit may be excluded from tax for a single owner, and up to $500,000 may be excluded for a married couple if both own the property together.
• How much do you need to clear, after debts are paid, to purchase a different home? This depends in part on where you are considering moving and what amenities you would like in your next property.
• If you will be financing your next purchase, be sure to talk with a lender to help you determine what size of loan and financing you may qualify for, as this will inform how much you need to clear from your sale.
• If the property is an investment property, consider a 1031 exchange whereby proceeds may be reinvested within a certain amount of time for tax benefits.
IMPROVEMENT CONSIDERATIONS
Have you made any improvements to your home since acquiring it? There may be tax benefits from having done so! Are there projects that need completion or areas of the property that need attention before listing? We can help!
• Gather receipts and make a list of property improvements you have made. We can use this information in marketing and answering questions of people interested in purchasing your home.
• Any investments on your property made during your ownership may be “added” to the basis price of your home. For example, if you purchased for $400,000 and made $100,000 in improvements, your basis price, on which tax is calculated when you sell, may now be $500,000. This means that, if the home sells for $700,000, your potential taxable profit would only be $200,000, instead of $300,000. Be sure to consult with a tax professional to confirm. We have several accountants for which we can provide a referral.
• Did you or your predecessor obtain all necessary building and land use permits for improvements made to the property? If you added a deck, shed, garage, or additional square feet to your home, ensuring that these structures were properly permitted while save you hassle and delays in the future. As a land use attorney in Central Oregon, Stephanie can review any questions you have so that the listing and sale of your home will go smoothly.
• If you have a septic tank or well on the property, are they functioning properly? Gather service records in advance and call us to discuss.
• Do you cross any other property for access or irrigation lines? Let’s make sure you have recorded easements in place to assure future buyers of their rights.
• Are there any elements of your home that need to be fixed, improved or painted? Have you been delaying listing your home because you think a bathroom or kitchen should be updated? We’re the brokers for you! Frank is a licensed contractor and can address many items prior to listing. We will walk you through and help make a plan for a sale “as is,” or with some repairs and minor upgrades! Some of this decision-making includes a consideration of the neighborhood, other elements of the property, and the current market. Our team knows what buyers are looking for in Central Oregon and we will position your home to maximize its appeal.
MARKET CONSIDERATIONS
Many sellers jump right to the questions of, “what is the market doing,” and “how much can I expect to get from selling my home”? These are important questions that we love to answer! We do caution our clients to go through all the considerations outlined in this guide and to make a fully informed decision that is not based solely on the market. The decision sell your home is more than just setting a list price.
Determining the current market will have an impact on decisions as to timing and price. While we would love to have a crystal ball to see what is ahead in the future, our general advice on when to list is “when it is right for you.” A change in employment or family, or health reasons, may create more of a pressing need to list, while a desire to own a different type of home (single or two-story, condominium or townhome) a different sized yard (less maintenance, or more room), or a change from urban to rural living (or vice-versa) also inform you as to the “right time.”
We understand and appreciate that every property is as unique as the people that own it. When helping you price your home, we will review other properties that are similar in size, location and amenities, including those that have recently sold and those that are on the market with which your home may be competing. A review of general sales trends will be included in a comparative market analysis and reviewed with you. We will also discuss general expectations regarding the time of year you wish to list.
WE WOULD LOVE TO HELP YOU SELL YOUR PROPERTY!
Getting to know our clients is the best part of work! Our goal from start to finish is to provide you accurate, complete information and to honestly assess valuations.
Reach out to us with any questions you have about this guide, the process for selling your home, and current market conditions. Give us a call today at (541) 788-1095, or email us at [email protected].
