How Can I Be Exempt From Capital Gains?

How do you know if you can qualify to be exempt from capital gains tax? Actually, there are a few different stipulations involved.

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I want to take some time to answer a question I’m receiving a lot lately, which is “How can I be exempt from capital gains?”

A lot of sellers right now feel nervous about listing their homes since values in our area have gone up so much. These sellers are worried about the taxes they’ll need to pay on the gains they earn from the property.

Truthfully, there are a few stipulations that need to be considered.

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There are a few stipulations that need to be considered.

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In order to be exempt from capital gains tax, the property will need to have been your primary residence for two out of the last five years. These years do not need to be consecutive.

Also, you can’t have exchanged or sold within the last two years, and the property cannot have been used for business or rental purposes.

If you are an individual, the sales price must not exceed $250,000. If you are a married couple, the sales price cannot exceed $500,000.

Finally, the last stipulation is that the property cannot be involved in a 1031 exchange. A 1031 exchange is an elevated way of deferring gains for investors. Chances are, this isn’t something most sellers are going to be involved in.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Your September Market Updates for Grand Rapids

The latest numbers are in for the Grand Rapids real estate market. What can you expect as a buyer or seller this September?

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Selling a home? Click here for a FREE Home Price Evaluation 
Call me at (616) 447-7025 for a FREE home buying or selling consultation

As we begin September, let’s take a look at what’s happening in the Grand Rapids and Michigan real estate markets. 

Right now, there are 2,007 homes for sale. That number is a little higher than normal. There are 1,730 pending home sales. In other words, there are almost the same number of homes for sale as there are under contract. 

So far this year, 8,476 homes have sold at a rate of about 1,060 homes a month. That means our market has a total of 1.89 months of inventory. 

If we look specifically at Kent County, there are only 1,500 properties for sale and 1,355 pending sales. So far this year, 6,700 homes have sold in Kent County at a rate of 838 home sales a month, leaving Kent County with 1.81 months of inventory. 

What do all of these numbers mean for you? 

Inventory has gone up slightly as we head into fall. With school starting, people are too busy to concentrate on real estate as much as they did this summer. Since inventory is slightly higher, buyers have a better selection now than they’ve had all year. 

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Slightly higher inventory means buyers have more options to choose from.

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If you’re thinking of buying a home, now may be the time to seize the market. 

If you are thinking of selling your home, there is still a lot of action in our market, which means you have a great opportunity to sell. Keep in mind that inventory has increased a little, so there may not be as many multiple offer situations as there were this summer. 

If you have any other questions about buying or selling a home in our current market, just give me a call or send me an email. I would be happy to help you!

Why You Should Consider Buying Now Instead of Waiting

Is waiting to buy a home costing you money? I’m afraid so, and there are two big reasons why.

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Price Evaluation 
Call me at (616) 447-7025 for a FREE home buying or selling consultation

Is waiting to buy a home costing you money? The answer is yes, and there are two main reasons why. 

The first is price appreciation over time. Property values are rising every day now, and supply and demand is pushing prices upward. The longer you wait, the more you’ll be missing out on a better home price.  

The second reason is interest rates are also rising. A 1% increase in interest rates decreases the average homebuyer's affordability by about 10%. That means if you want your mortgage payment to stay the same, you will have to buy a less expensive home. In other words, your buying power drops 10%. The Fed announced that they would be aggressive with interest rates this year, and they have more planned increases in the future. 

For a more detailed look at how interest rates are expected to impact the market in the coming months, you can click here. For a look at home price expectations for 2017, click here.

Don’t get caught on the sidelines in our market.

With both prices and interest rates moving up, every day you wait is costing you more money. Don’t get caught on the sidelines. 

If you have any questions or are interested in purchasing a property, give us a call or shoot us an email. We’d love to help you out.

Grand Rapids Spring Market Update

Spring has officially sprung in the world of real estate and I wanted to stop by with an update on the Grand Rapids market. Low inventory and high demand make now a great time to be a home seller.

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Price Evaluation 
Call me at (616) 447-7025 for a FREE home buying or selling consultation

Spring's officially here, so I wanted to take a minute to update you on the important factors currently trending in our market. 

As of the end of March in Kent County, we have 939 properties for sale, which is extremely low. In our market in the last 12 months, 10,212 properties sold, giving us a rate of roughly 851 homes sales per month. That means we have about 1.1 months of inventory, which is extremely low.

The market currently has 1,240 pending sales as well. When you step back and take a big-picture look at our market, it's an absolutely amazing time to sell your house since buyer demand is high and inventory is low, pushing prices up. 

High demand and low inventory make now a phenomenal time to sell a house.

On the other hand, if you're buying a home, you want to hurry and try to buy one before interest rates keep going up. Prices are going up as well, so the longer you wait, the more difficult it will be to find a home and the more it will cost you.

If you'd like any more detailed information about your specific area or you're ready to buy or sell a home here in the Grand Rapids market, give me a call or send me an email soon. I'd love to help you out!

Let Us Connect You With Great Contractors

If you need a reputable contractor for any type of project or service at your home, we have a great list of people to put you in contact with.

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Price Evaluation 
Call me at (616) 447-7025 for a FREE home buying or selling consultation

I’ve recently found myself running into clients who hired contractors to do work for them, and unfortunately, it seems that many of them overpaid and were taken advantage of.

I wanted to be sure to take this chance to let you know that if you have any projects coming up, I have a list of reputable contractors that includes everyone from electricians, plumbers, roofers, to anyone else you might need. We’ve vetted them through years of experience.

We have a great list of reputable contractors from over the years.

I’d be glad to send you a list of reputable vendors for any job you need to have done.

Similarly, if you know someone who you think is an absolutely amazing contractor, I’d love for you to share their name with me so I can continue to refer a list of wonderful people who do amazing work for my clients.

If you have any projects upcoming, don’t hesitate to give me a call or send me an email. I’d love to set you up with a great contractor.