So I am selling my house, and it’s probably not for the reasons that you’re thinking. Let’s go over some of the reasons why this is the best decision for my family and me, as well as some ideas for you from the perspective of a homeowner rather than an agent.
1. Capital gain
Capital gains are the profit from the sale of property. A capital gain occurs when you sell an asset for more than what you originally paid for it. Long-term capital gains, on the other hand, are taxed at a lower rate than regular income. The exact rate depends on the filer’s income and marital status.
If you bought something for $500,000 and you sold it for $800,000, you would have a capital gain of $300,000.
There are ton of tax advantages for owning real estate. One of them is you can avoid paying taxes on capital gains on your primary residence.
- Up to $250,000 if you’re single
- Up to $500,000 if you’re married
2. Life Changes
There are seven different D’s that lead to people making a move
- When a child moves away to college, their parents may decide to downsize or relocate.
- Typically the homeowner does not need all of the space due to age or family changes.
- You can no longer make your payments because debt you are in and the house is too much money
- Natural disasters like mudslides or fires causing damage that forces the homeowner to move
- Growing families – like having children – results in homeowners needing more space.
- This is typically a relocation for work. Elon Musk is investing a ton of money into Nevada and Arizona areas therefore we will see people continue to relocate to those states.
Christian’s Reason for Moving
Space & Taking Advantage of the Market
I am selling my house because of my growing family with dogs. We needed a little bit bigger yard therefore it made a lot of sense for us. I decided to take advantage of a heating up housing market here in the beginning of the year as well.
3. What’s the worst that can happen?
The worst thing that could happen is that housing market crashes big time which results in a change in my income. I would probably be pretty happy that I sold now if that happens.
The best thing that can happen…
Meanwhile, the best thing that will happen for my income is what most people in the industry are predicting: it will be a pretty flat year. Most professionals are predicting a small percentage of appreciation or depreciation.
4. Growing my Businesses
I see a huge opportunity to invest the equity that I’ve earned over time into real estate investment properties.
Before you sell…
As this is my first personal sale, I took the advice I give my clients to do the little upgrades. I put in new carpet, repainted, and I am going to stage the home to make as much money as possible. I realized I should have spent the money five years ago and enjoyed the home the whole time I lived there. That is my number one tip for selling your home. If you are not sure what to refresh, give me a call to discuss the little upgrades you’re gonna need to do to your house.
That is a summary on why those are my reasons I am selling my home. The video goes more in depth reasons – so make sure you click the video above and watch for more detail.