Robert D. Cavanaugh, CLU asked:


A single person can exclude up to $250,000 of the gain from the sale of their home and a married couple up to $500,000. However, there are qualifications, rules, exceptions to the rules and special situations. This article outlines the major rules and clears up many misunderstandings.

First, you must meet two tests: the ownership test and the use test.

The Ownership Test

This test requires ownership of the property for at least two of the five years prior to the sale. The ownership does not have to be continuous.

The Use Test

The use test requires that you lived in the home as your principal residence for 2 years during the 5 years preceding the sale. Again, the 2 years do not have to continuous. Short temporary absences, such as vacations or spending a couple or months in the summer at the lake, are periods of use. Even if you rent out your home while you are gone, there is no interruption in your period of use.

The periods used to satisfy both of these tests do not have to be the same. In addition, members of the Armed Services or Foreign Services can choose to suspend these tests for any period they or their spouse is on “qualified official extended duty”. If people become mentally or physically unable to care for themselves or have to go into a nursing home, the two-year use requirement shortens to one year. Therefore, it is possible to qualify without actually living in the home for the required two years.

For people who have lost their homes to hurricanes, floods, tornadoes and other natural disasters, or have had them condemned, a special rule applies. They can add the time they lived in the home destroyed or condemned to the time they have lived in the home on which they want to exclude gain.

What is a Home?

A home, for capital gain exclusion purposes, must be your “main” home. It could be a house, houseboat, mobile home, co-op apartment or condominium. Note that if you sell the land on which your home is located, you cannot exclude the gain from the sale of the land. An example would be selling the land on which your mobile home sets, buying another piece of property and moving your mobile home to the new location.

If you own a vacant lot next to your home and sell it as part of your home sale, special rules apply. If you own a home in the city and a cabin in the mountains, the home where you spend the most time is the one where the tax exclusion applies. There are at least nine tests used to determine your main home if you own more than one.

The Exclusion

First, you must meet the ownership and use tests, or fall under one of the exceptions, and have not used the exclusion on the sale of another home within two years of the current sale.

If you are single, you can exclude up to $250,000 of the gain on a sale. If you own the home jointly with someone else, and each of you files single returns, each can exclude up to $250,000 of their interest in the home.

If you are married and file a joint return, you can exclude up to $500,000. However, you must meet one of several conditions. Either you or your spouse must meet the ownership test. Both you and your spouse must meet the use test. During the two years preceding the current sale, neither of you excluded gain from the sale of another home.

If your spouse dies, and you do not remarry before the sale, you can count the time your spouse owned and lived in the home to satisfy the ownership and use tests.

In today’s society, many scenarios require careful adherence to the rules. For example, a single woman sells her home and remarries a man who owns a home. They decide to sell. Another common example: Mary and John are single and each owns a home. They marry and decide to sell each of their homes and buy another. Here is another: Janet receives the home as part of a divorce settlement and later decides to sell.

The Partial Exclusion

Even if you do not meet the ownership and use tests, it still may be possible to claim a partial exclusion under certain circumstances.

If you have to sell your home because of a change in employment, your home sale could qualify under a “safe harbor.” The rules contain many tests to determine if the safe harbor applies.

If the primary reason you have to sell your home is health-related, you could qualify for a partial exclusion. The health issue applies not only to you, but also to a large list of people classified as your extended family.

Unforeseen circumstances also qualify for a partial exclusion. These include an involuntary conversion of your home, man-made or natural disasters, death, unemployment, a change in employment status, divorce and multiple births.

I hope you have seen that applying what you may think the rules are to the sale of your home may not be as simple as you thought. With all the rules and exceptions, it would be prudent to solicit the advice of an accountant, tax attorney or real estate professional prior to listing your home.



KELLY

Nelson Stewart asked:


In an ideal world: homes would listed and sold within days. There would be no need to stage your home for weeks in a row and wait with bated breath beside the phone for the offers to arrive. In an ideal world… The simple reality of the housing situation is that not all homes sell immediately. Some can languish on the market for months. This is not a statement on the home itself, simply a statement that some homes take longer to sell and some don’t. The difficulty arises when your home has been on the market for some time and the maintenance required to keep the home in a show-ready state for an extended period.

This can be the most difficult aspect of an extended home sale. In an ideal showing environment, a home is pristine at all times. There is almost no hint of human habitation in a perfectly staged home. We all know how difficult to maintain this can be, especially if you have kids and pets and a life. In all honesty, the best way to deal with this is to clean every day, as unappealing as that may sound. Ideally, you will have some notice before showings happen; but spur of the moment shows do happen. When these do happen it’s definitely easier to only have to do a few minor cleaning tasks as opposed to having a major clean with time restraints on your hands.

If necessary, utilize a cleaning service before a show or day of shows. This will present a beautifully neat and tidy atmosphere for viewers to “get to know your house in.” The cleaner a home is, the less negative distractions there are for your guests. If you have a few pets that tend to make a mess, it might be a good idea to keep them at a friend’s place or a boarding facility, especially during the show times. Homes generally show better if there is no indication that there are pets in the home. There are a host of concerns connected with pets in the home that can bring down an asking price so best if Fido and Fluffy are elsewhere.



EVERETTE

William Drapcho asked:


When your time comes to research internet sales opportunities, what will be the benchmarks for your decision? Will you choose something you have done in the past, or will you choose something you will have an interest in? Selecting something simple and new, can be the most fun and rewarding.

Most of the time, when you are looking for work from home internet sales it means that you already have some experience in sales, and you know what you are doing. There are lots of ways that you can take your work from home internet sales experience and put it into the real world too, so this means that not only can you be doing something that you are good at, but you can actually use this ability later on if you would like to use it. Therefore, work from home internet sales can be rewarding and the best for you.

The first thing that you need to do if you are looking for work from home sales opportunities is to explore the many different things that you will be able to find. Researching the internet will be your biggest tool, because there are lots of areas to go into. You will then have enough material on the different work at home programs to decide how you can join, or get involved. Be sure that you research them as well as you can to discover the various types of opportunities, and how much work they are going to be and if it is enjoyable. Often when you are doing work from home sales you are working underneath someone else. If this is true, make this a reality by searching for any way to make it possible. In starting your work at home business for yourself, this may be the best way to do it. These types of marketing programs if done the way the program shows, can be profitable and rewarding.

Remember, one of the other things that you can do is to research the various areas that you would like to work in and see if there are internet sales jobs that meet your interests. This might be something that you are considering because it can really help you to find the perfect work from home sales opportunity for your needs. Remember, you want to be sure that you are happy with your choice. So, be sure that the work from home opportunity is the perfect one for you, so you feel good about refering someone else to it.



MARQUIS

missanj asked:


Am looking to put home up for sale by owner and would like to know how much house next door sold for.

CLINT

swimmyfishy asked:


Can a seller back out of a signed home contract (Home A) because the home (Home B) he was purchasing is no longer available? We, as the buyers of Home A, have sold our existing home based on our contract.

TEDDY

Ted Gaurnero asked:


Selling your home requires that you open your house to strangers and allow them access to areas that would normally only be open to trusted friends and family. Unfortunately, we can’t trust everyone, even those who “look okay”. Securing your home and property against crime is a good step to take, especially when you are allowing people you don’t know to come inside. Protecting the interests of your real estate agent is also a big step in this endeavor.

One of the best things you can do is engage the services of a Realtor, who will escort people through your home and keep an eye on them. An experienced agent will screen people at the office and take precautions against criminals gaining access to your home. Real estate professionals are often in the business of escorting strangers through houses and many have become more knowledgeable about crime prevention in this situation. It’s a smart thing to ask an agent what kinds of crime prevention policies they have in place before hiring them.

Many agents will not conduct an open house, house tour or meet people without first having an in-office interview and taking down information, such as a copy of the driver’s license and perhaps the license plate number of the car. This is mainly to preserve their safety, but it can also help preserve yours and that of your home. More than one person at a house tour or showing means that there is less of a chance of someone trying to take advantage of as single representative. This also means that they are less likely to try to steal your property or vandalize your home.

There have been cases where agents have been killed and homes have been burned or otherwise damaged, so take what your agent does for safety seriously. Your agent deserves to be as safe as possible and anything you can do in that regard is well worth your time. In addition to the horror of having someone robbed, ***** or murdered in your home, the stigma of being the site of a serious crime could make the value of your home come crashing down. Support your agent and encourage them to take all possible steps to secure their safety.

When your home is being shown, put all valuables away in secure containers. Some people go so far as to rent a storage locker for excess property when staging their homes; your valuables can go here as well. Otherwise, place them in inconspicuous containers and place them well out of sight. Make sure your agent knows all the entrances and exits from your home and property, so s/he knows where to check and what to secure after a showing.

Don’t accept impromptu tours from strangers. Be friendly and polite, but insist that they go through your agent. Some unscrupulous people use a home sale to gain access to a home, either to steal, visit violence on the home’s occupants or to scope the home out for a future burglary. Legitimate buyers will not have a big problem with going through your agent to see the property. If the person acts odd, insists that they ‘need’ to see the house immediately and/or gets violent or abusive, call the police.

Be extra vigilant when the For Sale sign is placed. Many criminals look for a home sale to check the house out for lack of security. Many people turn off their security alarms and leave things unlocked that are normally secured. If you surprise someone who doesn’t belong on or around your property, call the police. Security lights can be a relatively inexpensive install that will also be a selling point for your house. Trim your bushes back; not only will it improve the landscaping; it will also make hiding and sneaking harder.

Security systems, barking dogs, guns, baseball bats and pepper spray are some popular methods of home security, but unless you know how to control that barking dog (and make him shut up once intruders leave), handle a gun safely, or where and how to apply a baseball bat to someone’s head (keep in mind that unless it’s very clear that you were acting in self-defense, you could be liable), these items are more likely to harm you or your family than they are to protect you.

As much as we would like to trust everybody, it’s not a safe world. Taking precautions and encouraging your agent to do likewise is a smart home sales step. Your agent will appreciate your support and concern, you will be less likely to be victimized and your home will benefit from the extra attention.



DENVER

justin.ringstaff asked:


I recently bought a new Palm Harbor home and was mislead about the quality.

SCOTTY

Eugene Articolov asked:


You can stop repossession with a quick home sale. Repossession is often in the news and more and more people are affected. When you miss mortgage payments, financial difficulty is not far behind. When lenders write and ask you to get in touch, sometimes it seems easier to ignore the letters. Even if you respond, you may not be able to agree on a deal. It’s a stressful time, and figuring out how to stop repossession can affect your life and health.

You may not realise it, but you can stop repossession of your house even after proceedings have begun. It’s better to do this before you end up in court and there’s one sure way to save the situation. Stop repossession with a quick home sale. When you sell your home, you will get the cash you need to repay your debts and your credit rating will remain intact. That means that you have a better chance of getting a mortgage in the future. Making ends meet and talking to lenders can cause great stress. You can end that when you stop repossession with a quick home sale.

Will an open market sale help me stop repossession?

When you use an estate agent to sell your home, then you will probably get a good offer on your home, but how long will it take to get the cash you need? There are no guarantees about the completion date and if there’s a property chain you could find yourself without a buyer. How will you stop repossession of your house then? If you need to stop repossession with a quick home sale, then there is a better option.

I need to sell my house fast

Call St Genix Fast House Buyers on 0800 316 7600 to stop repossession with a quick home sale. We are experts in fast house sales and will buy direct, for cash. That means that you get a quick, guaranteed sale. With a sale to St Genix, you get:

A guaranteed sale within four weeks

No need to pay an estate agent

Lower legal fees

A fast way to stop repossession

We promise to complete the purchase of your home within a month. We can do the deal more quickly or more slowly if you need us to. We are happy to work to your timetable so that you can repay your debt when you need to. You don’t even need to leave home.

How can I stay at home when I sell my house fast

If you are concerned about how to stop repossession, then you don’t need any additional worry. If you sell to an estate agent, you have to move out on completion date. When you sell to us, you don’t have to be homeless. You can decide if you want to stay in your home. Just ask about our rent back arrangement. You can rent your home at a fair market figure and avoid unnecessary expense and stressful disruptions.

St Genix Fast House Buyers have expertise in helping clients to stop repossession with a quick home sale. We will buy your property and complete the sale within a month. For a free valuation, call us now on 0800 316 7600.



CARL

Jack Ingles asked:


If you’re wanting to save a heap of cash by opting for a home sale by owner, there are a few things you should keep in mind in order for a quick, solid sale. The main thing to remember is that we’re in a recession and that old sales methods will not be as effective as they once were. This article aims to help you get a better price in the current market.

To be successful in a home sale by owner, you’ll need to make smart choices regarding your advertising strategy. Not long ago buyers needed to react quickly to house advertisements in fear of someone else snatching up the property before they could make an offer. It’s a lot different these days, so try to be creative, exciting, and most of all unique. Use the internet in combination with a strong print media campaign, and you’ll see plenty of buyers expressing interest.

As for the actual house showing once you’ve got a few buyers lined up, there are a few different strategies that you might like to try. I’ll talk about the 3 main methods of house showing.

Event-style Mass Showing

This is exactly what it sounds like. Hold a kind of party in your house and invite all the prospective buyers at the same time. This will allow buyers to look at the competition, and will generally result in higher bids. This works well for a trendy property, but not so well if your house is not so fashionable.

Up Close & Personal Showings

This involves presenting your property to buyers one at a time. It allows you to build personal relationships with them, and also gives you an opportunity to show them how confident you are in your asking price. Be careful with this if you’re not a “people person”, as it can backfire if you let it show how desperate you are to sell. I’m talking massively undervalued offers here!

Virtual Tours

This is a new method, and is proving to be highly effective, especially when buyers are from interstate or overseas. It’s pretty easy to do if you’ve got a good digital camera. Just take a heap of good photos and upload them to an online property market. The better the photos, the higher chance of interested buyers.

For a detailed home sale by owner strategy, check out this Sold In 21 Days website, which will give you access to a tried and tested 21 day plan of action. Good luck!

Alternatively, check out this article: Fastest Home Sale By Owner Sales Strategy



CECIL

innocence faded asked:


Just wondering, is it a flat fee, or is there a certain percent for a certain sale amount? Also, do they make any type of “base” salary for just showing the homes even if they do not make a sale?

(For the state of New Jersey, if that makes any difference.)

HOLLIS