Oh, the Tax Benefits of Homeownership!

Owning a home is at the top of most people’s list of life goals, and with all the benefits, it’s easy to see why. From the pride that comes from owning something that is truly yours to building equity in your home to the stability of having a set mortgage, owning a home has many positive attributes. And best of all, owning a home may mean receiving additional tax benefits.

Homeownership can have many potential income tax advantages, including deductibility of property taxes and home mortgage interest (for taxpayers who itemize deductions) and exclusion of up to $250,000 of gain on sale ($500,000 for married couples filing jointly) if certain ownership and use qualifications are met. The particular tax results will vary according to each buyer’s personal circumstances, so it is important that you consult with your own tax advisor regarding these tax benefits.

Some good sources for information about the tax consequences of homeownership are the IRS publications on the subject, including Publication 530 “Tax Information for Homeowners”, Publication 936 “Home Mortgage Interest Deduction”, Publication 523 “Selling Your Home” and Publication 527 “Residential Rental Property (Including Rental of Vacation Homes).” These can be accessed at http://www.irs.gov/app/picklist/list/publicationsNoticesPdf.html.

I recommend that you consult with your own tax advisor and do your own research regarding the tax benefits of homeownership since benefits will vary depending on your personal situation and circumstances.

Pricing Your Home in Today's Market

Pricing is probably the most critical task you will face when
selling your home. Sellers naturally want to get the best price
and the best terms for their home for the time that it is on the
market. However, determining your home’s worth isn’t always
a straight forward process as there are pitfalls. If you price
your house too high, you may not receive any offers. and
your house may languish on the market for weeks, losing its
“marketability”. If you price it too low, you may end up losing
money.
Ultimately, the best price for your home is the amount that a
buyer is willing to pay at the time you’re selling. An experienced,
trained Realtor® will be able to help you gauge your
home’s value.
While several factors influence the pricing of a home, the
most common and reliable method is the comparative market
approach. Get a Comparative Market Analysis (CMA). This
is a report that provides a suggested sales price based on
the prevailing market. Your Realtor® can provide a CMA,
usually for free. It is not an appraisal. In a CMA, your
Realtor® examines recent sales in your neighborhood of
properties matching your house’s age, square footage and
features.
Active listings (other homes for sale) are scrutinized as these
listings are your competition. An examination should also be
made of withdrawn and expired listings. Very often these
listings didn’t sell because of pricing issues and you can
profit from these lessons. Based on this accumulated data,
your Realtor will arrive at what he believes is a fair and reasonable
price.