Selling your Colorado home could signal an exciting transition or move, or it could be an incredibly stressful ordeal. Staying up-to-date on the latest real estate and financial trends can help ease your stress and ensure a more pleasant experience. If you’re looking to sell your Colorado home in 2016, here is what you need to know:
Colorado is a Seller’s Market
Some Colorado homeowners may still remember the devastating fallout from the financial crisis in 2008. Obviously, prices have climbed significantly and the housing market in Colorado has made a full recovery. The Case-Shiller National Home Price Index demonstrates that home prices nationally are just as high as 2006 levels. Bidding wars have also become much more of the norm than the exception in Colorado.
Mortgage Prices Likely to Increase
The price that buyers are able to pay is an important factor in how much you may receive when you sell your home. Now that the Fed has begun to increase interest rates, buyers may not be able to afford as much home.Though the initial increase was a mere quarter of a point, more will follow. Sellers should be prepared to deal with the hardship this may cause prospective buyers.
Tax Benefits Still Favor Home Sales
The exclusion on capital gains for the sale of a personal residence is still the biggest tax break for most sellers. Single taxpayers can exclude up to $250,000 from taxes from the sale of a home or up to $500,000 for joint filers. Only the sale of your main home will get get you this tax break and you must have lived in the home for at least 24 month over a period of 5 years.
Other Selling Costs
When deciding whether or not to sell your Colorado home, don’t forget to consider the other costs associated with the sale. For a home that sells for $235,000 you’re looking at:
Selling your home is one of the biggest decision you’ll ever make, but staying aware of financial considerations and making a plan to deal with them will help the selling process go a lot more smoothly.