The New Calendar Year And Real Estate
The changing of the calendar year in Northern Nevada is simply a measurement of time so how can it have any effect on real estate? The calendar rolling from one year to the next actually has a major impact on real estate in a variety of ways. Some involve law and policy changes, others are psychological. Regardless of what it is, there is a definite cumulative effect of change when we enter a New Year.
The most impactive New Year effects can be the changed tax consequences of a real estate transaction. These can be due to law/policy changes, or by a change in income. For example, an interim IRS policy was enacted in 2008 eliminating the tax consequence for qualifying primary residence short sellers, or foreclosures. That policy precludes income tax being paid on the debt relief, but it sunsets in September of 2012. If it isn’t extended one would be wise to choose this year to sell short or hope that your foreclosure is completed.
The New Year might be the year you retire resulting in income changes that impact what you can buy, or even where you can buy. Some communities are income restricted, and your retirement might qualify you to live somewhere that you previously wouldn’t have been able to. If this is the year you receive a large settlement, an inheritance, etc. you might need to buy a lot of real estate to offset your gain to minimize your tax burden.
Other law changes may come in to play as local communities, counties, states and the Federal government make changes to protect the public or stimulate the economy. Real estate is often affected by such changes, sometimes on purpose, other times by accident. Regardless, new changes in the New Year can affect how real estate business is conducted, values, and the salability of certain properties.
Many personal changes will have an effect on your real estate reality. Your children may change schools, advance to high school, leave home to the university. Likewise, the addition of a baby, elderly parents, or boomerang children, can force a change in real estate wants and needs. Such changes can have an impact on where you want to live and the size of the dwelling that you need.
The New Year can have a psychological effect on people. To some it is the opportunity for a new start, others a chance to forget the old and make changes. Some see it as a measuring device, how much gets done in a year. Regardless, the change in attitude/perspective can have an impact on the decisions of a Buyer or Seller. Don’t assume all is as it was last year when they didn’t accept your offer – they might be ready to move on this year.
Our Advice: The cumulative effect of the New Year change is undeniable. It is important to determine how the changes impact you in achieving your real estate objectives. Real estate decisions are multi-dimensional, even the price. There are many things that impact value, demand, want and need and they must be realistically evaluated in terms of the New Year and its effect on real estate.
There are many real estate predictions in all media types surrounding the New Year change. Which should you believe? Ask yourself, why does a year change make the difference – what is different in January 2012 versus December 2011? Consider the many factors that can have a New Year effect on real estate, which ones may affect you this year, and have a great 2012!
When it comes to choosing professionals to assist you with your real estate needs ... Experience is Priceless! Lisa Wetzel and Jim Valentine, CDPE, SFR, RE/MAX Realty Affiliates, 775-781-5472 firstname.lastname@example.org, www.carsonvalleyland.com
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Lisa Wetzel and Jim Valentine are the authors of this blog. Lisa, Jim and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County, Carson City and Lyon County. Call our team anytime at 775-781-5472 or 775-781-3704. To Search for Homes go to: Carson Valley Listing Book or visit our website at www.CarsonValleyLand.com