Question #1: Can I avoid paying taxes on the profit made from selling my home?
Answer: If you have lived in your house for two of the past five years, you can automatically avoid paying capital-gains taxes on up to $500,000 profit per couple or $250,000 profit for an individual. Even if you haven’t lived in the house a full two years, you can receive a partial exemption if you have to relocate for work, health, divorce, or other circumstances beyond your control. (Refer to IRS publication 523.)
Question #2: Can the same Broker who lists my home act a Buyer’s Broker for my next purchase?
Answer: That depends on the agent. Many agents work as both buyer’s agents and seller’s agents. Each relationship is transaction based, so the house you buy and the house you sell will require you to sign separate agreements. Both of you would have to agree to the representation.
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Ranch Style House for Sale in Alto, New Mexico
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Question #3: Should I consider listing with a “Discount Broker”?
Answer: To decide whether you are ready to use a discount broker, ask yourself the following questions:
- How much do I know about real estate and the current real estate market in my area?
- Do I have access to information about the other homes that have sold in my neighborhood?
- Did I visit those homes before they sold so that I know the condition or circumstances of the sale?
- Do I have access to view comparable homes for sale in my neighborhood?
- Am I in a position to interpret the differences between my home and comparable homes to set the right listing price?
- How much service and support will the discount broker offer me?
- How active do I want to be in selling my home?
- Do I have time to risk in trying to reduce my sales costs or does my home have to sell quickly?
- What is the difference in cost between full and discount broker services?
- How aggressively will the discount broker negotiate a contract?
- What level of service will the discount broker provide if there are problems after the contract is signed?
If you aren’t certain about the answers to any of the above, you might feel more secure using a full-service agent, especially one who is certified in residential real estate.
Question #4: Do I have to make all the repairs asked for during the home inspection?
Answer: The repairs that you choose to make will depend on how the contract is worded and how motivated you are to sell. You may choose to adjust the purchase price or contract terms instead of making the repairs, but the buyer may not be obligated to accept. Major repairs will generally require a renegotiation. Your agent will be able to advise you on a case by case basis concerning common practices and negotiation tactics.
Go to Page 2 of New Mexico Real Estate Sellers FAQs |
