Home Sweet Home: Should I Stay or Can I Go?

With the start of 2013, all signs are pointing to continued recovery of the Georgia real estate market here in Sandy Springs and Metro Atlanta.  As a homeowner, you may be perplexed with internal questions on if you should now try to sell your home while interest rates are still driving home buyers to purchase or wait it out another year to see if your neighborhood values will continue to appreciate.  Before you put on brakes (waiting out the market and electing to stay as your best option) or even speed to the next home location with determination to sell your current residence, proceed cautiously by examining three critical factors.

 

First, if you desire to make more of a profit on your home than this market will allow or if you have no immediate need to move (i.e. job relocation, family growth, etc.), then it may not be a bad idea to watch the market trends over the next couple of months as we gear up for and approach the pandemonium Sandy Springs (and really all of Metro Atlanta) experiences in the Spring/Summer home buying season.  You may be pleasantly surprised to see some of the homes in your community selling closer to and even above the listed price.

 

Secondly, in addition to watching how homes are selling in your neighborhood, you must also watch the trends concerning interest rates.  Although interest rates are still low, from December 2012 to January 2013 there has be a slight uptick in the rates.  Higher interest rates make the cost of purchasing your home more expensive without you adding anything to its value, meaning this can shrink your pool of prospects seemingly overnight without your consent - yikes!

 

However, now may be the time to list your home if you do have a more immediate need to move such as a desire to be closer to where you work or a growing family whether you are an empty-nester that has to open your home to aging parents or returning young adults.  Now also may be the time to sell if you are fine with selling at the price point in this market, which would mean typically one of the three scenarios: you owe nothing, you owe less than the appraised value, or you are willing to pay the difference to sell if you do owe more than the appraised value.

 

Thirdly, do not forget about paying taxes on any capital gains.  After  such deflated values these past few years, this is not a concern of many sellers but there are sellers that purchased since the market crash at a deep discount and are reselling now, just two - five years later, at a profit.  Also, there are those owners that have owned their homes for several years prior to the new millennium's real estate boom; thus, affording them the position of appreciation as well.  With legislation enacted in 2013, capital gains can be taxed at 15% or 20% depending on your income tax bracket so be sure to account for this as you assess selling your home.

 

Need help on assessing your home's current market value in Sandy Springs or Metro Atlanta?  Contact places2love@gmail.com for a FREE and personal Market Analysis.  Happy selling!