Did you know ….
Did you know almost everything about the Boston condominium that you own or live in is public. It is easier than ever to find out who owns a piece of property, when they bought it and how much they paid for it. For many properties, I can find pictures of the interior too.
Most of the information about your house is public. It is fairly easy to find out how much of a mortgage there is on a house or if it is owned free and clear. Sometimes I can find permits that show when certain home improvements were made.
When someone sells a downtown Boston condo they need to have a truth in housing inspection. The inspection reports can be found on the internet by using the property lookup feature. Sometimes there are several old inspection reports too.
Sometimes it pays to do a little research before buying or selling Boston real estate. The county websites also have information including pictures. Google Maps is also a great place to research property. I like to do a virtual drive by when I can’t quite picture the area.
When someone calls me about selling a Boston condominium if I don’t know the caller one of the first things I do is look up the property to see if the person calling is or could be the property owner.
Did you know ….
Selling the home your living in before you’ve owned it for two years will mean paying capital gains tax. While the IRS allows single homeowners to exclude up to $250,000 of capital gains tax on real estate and married homeowners up to $500,000, this does not apply if you sell before you’ve owned and lived in your home for two years.
Serious Financial Obligations To Your Lender If You Sell a Home Before 1 Year (check for pre-payment penalties)
A lender cannot collect a pre-payment penalty greater than 3% of the amount of the outstanding loan balance, nor can a lender collect a pre-payment penalty after you’ve owned the home for three years. However, some lenders will have pre-payment penalties if you’re selling quickly. Check with your mortgage holder before selling within three years of ownership.
In addition, the tax implications can be even worse when selling under one year. Any home sold before the one-year mark is considered a short-term gain by the IRS. Short-term gains are taxed at short-term rates, which is equal to your income tax. Long-term gains (selling your home after one year) are high enough, but short-term rates can be even higher. Check with your CPA before selling a home within one year of purchasing.
Penalties and taxes on homes sold under one year after purchase can have an adverse effect on a person’s financial stability, but it depends on the amount of profit, and whether or not there is any pre-payment penalty at all.
Most people don’t plan to sell soon after buying a home unless their intention is to flip the property. Lessening the gap between buying and selling is ideal. But despite the best-laid plans, life happens. Unexpected events occur and need change, which can cause you to sell sooner than anticipated. Here are a few reasons why a buyer might become a seller sooner than expected.
Buyer’s remorse. Maybe that dream home isn’t so dreamy once you’re living in it day in and day out. Or it could be that the neighborhood isn’t what you’d envisioned.
Job relocation. You move in, get settled, then land the perfect job. But it requires a long commute that isn’t possible due to transportation restrictions or family obligations.
Financial toll. Property taxes might increase or your household income takes a hit, both of which can force a sale.
Health emergency. An unexpected and costly health situation might arise, leaving you with expensive medical bills. You might need to free up whatever equity you have in the home.
Family changes. Shifts in family size and circumstance—like gaining a new family member, seeing one off to college, or death—might cause you to sell and find a home more suitable for your needs.
If you’ve increased the value of your property by adding new landscaping, completing a home renovation, or making bigger mortgage payments, you might decide to sell. Or if you’ve simply seen Portland home prices in your area explode, then you might feel free to make a move with more than enough equity to do so.
Real estate prices are increasing in 2021. If your living situation isn’t what you want or need, now might be a good time to sell your home.
Considering, hungry buyers are looking for already existing homes.
Curious whether now is a good time to sell? We would love to tour your home and give you advice about what’s best for you. Plus our real estate commission rates are reasonable and the marketing of our client’s homes is unbeatable. Contact us today!