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Thinking About Selling Your Home? Here’s What to Do Before You List

If you’ve started thinking about selling your home, your first instinct may be to start fixing everything.

Maybe the walls need fresh paint. The landscaping could use some work. The kitchen isn’t as updated as the one you saw in another listing.

Before you start spending money, though, there’s something important to remember:

You don’t have to make your home perfect before talking with a Realtor.

In fact, having that conversation first can help you decide which projects are worth your time and which ones may not be necessary.

Here’s where to start.

Start With Your Reason for Selling

Before worrying about paint colors or listing photos, think about the bigger picture.

Why are you considering selling?

Maybe you’re:

  • Moving to another area
  • Looking for a larger home
  • Ready to downsize
  • Planning for retirement
  • Selling a longtime family home
  • Moving closer to family
  • Ready for something different

Your reason for moving can affect your timeline and the way you approach the sale.

If you’re also buying another home, you’ll need to think about how the two transactions may work together.

Don’t Renovate Just Because You’re Selling

This is one of the biggest mistakes homeowners can make before listing.

A dated room doesn’t necessarily mean you need to completely remodel it.

There may be smaller improvements that make more sense, such as cleaning, decluttering, touching up paint or addressing obvious maintenance items.

Before committing thousands of dollars to renovations specifically for resale, talk with Judy about the property.

A walkthrough can help identify what may improve the home’s presentation and what may not be worth doing before it goes on the market.

Gather Information About Your Home

If you’ve owned the property for several years, start gathering any records you have for major improvements and systems.

That might include information about:

  • Roof replacement or repairs
  • HVAC systems
  • Water heater
  • Windows
  • Major appliances that remain with the property
  • Renovations or additions
  • Warranties
  • Other significant improvements

Don’t worry if you don’t have documentation for everything.

The goal is simply to gather what you already have so it’s available when needed.

Start Decluttering—But Don’t Empty the House

You don’t need to make your home look like nobody lives there.

Instead, focus on making rooms easier for buyers to understand.

Clear crowded countertops, organize visible storage areas, remove items that make rooms feel smaller and start packing things you already know you won’t need before the move.

This also gives you a head start on moving without trying to tackle the entire house at once.

Look at Your Home From a Buyer’s Perspective

After living somewhere for years, it’s easy to stop noticing little things.

Walk through your home as though you’re seeing it for the first time.

Look at the front entrance. Walk through the main living areas. Step into the backyard.

What stands out?

Sometimes relatively small changes can improve a buyer’s first impression considerably.

Think About Your Selling Timeline

You don’t have to be ready to put a sign in the yard tomorrow before talking with Judy.

If you’re thinking about selling several months from now, an early conversation can actually be helpful.

It gives you time to prepare without rushing.

You can discuss your goals, what needs to happen before listing, how the home may be marketed and how selling fits with whatever comes next.

Your Home Deserves a Marketing Plan

Preparing the property is only part of selling.

Once you’re ready to list, buyers need to discover the home and understand what makes it worth seeing.

Judy’s approach to seller marketing can include professional property presentation, online marketing, virtual tours, showcase video and other tools designed to help buyers experience the property both online and in person.

But technology is only part of the equation.

Local knowledge and experience still matter when preparing, positioning and navigating the sale of your home.

Thinking About Selling? Start With a Conversation

You don’t need to renovate your entire house, pack every room or have every detail figured out before reaching out.

If you’re considering selling a home in Fairhope, Daphne, Spanish Fort, Montrose, Point Clear or elsewhere on the Eastern Shore, Judy can help you determine what your next steps should be.

With decades of local real-estate experience, Judy Niemeyer can help you prepare your property, market your home and navigate the selling process from listing through closing.

Contact Judy Niemeyer and the Ashurst Niemeyer team to talk about selling your home.

Moving to Fairhope, Alabama? What to Know Before You Start Your Home Search

Moving to Fairhope, Alabama can be exciting, whether you’re relocating for work, planning for retirement, looking for a second home, or simply ready for a change of scenery.

But finding the right home in Fairhope involves more than scrolling through listings and choosing the house with the prettiest kitchen.

The home itself matters, of course, but so do its location, your daily routine, the amount of maintenance you want, and how the property fits your plans for the next several years.

If you’re considering making Fairhope home, here are a few things worth thinking about before you begin your search.

Moving to Fairhope, Alabama? Get to Know the Area

One of the best things you can do before buying is spend some time exploring.

Drive around Fairhope outside of the areas you may already know. Look at different types of neighborhoods and properties, and pay attention to how each location would fit your everyday life.

You may love the idea of being close to downtown, while another buyer may prefer additional space farther away from the center of town.

There isn’t one answer that’s right for everyone. That’s why it helps to begin your search based on how you actually want to live, rather than simply searching for the most popular area.

If you’re still getting familiar with the area, take a look at our Eastern Shore community information to learn more about Fairhope, Daphne, Spanish Fort, Montrose and Point Clear.

Think About Your Everyday Routine

When you’re visiting from out of town, it’s easy to experience Fairhope like you’re on vacation. Buying a home is different.

Think about the places you’ll regularly need to reach, including work, shopping, healthcare, family, recreation and other everyday destinations.

Drive some of those routes while you’re here. A home that looks perfect online may feel very different once you understand its location in relation to the places you’ll visit most often.

Decide What Kind of Home You Actually Want

Before looking at dozens of properties, make a list of your priorities.

Consider things like:

  • Number of bedrooms and bathrooms
  • Home office space
  • Garage and storage
  • Yard size
  • One-story versus multi-story living
  • Newer construction versus an established home
  • Outdoor living space
  • How much maintenance you’re comfortable handling

Separate that list into needs, wants and deal breakers. It will make your Fairhope home search much more focused.

Older Home or Newer Construction?

Fairhope buyers can encounter everything from established homes with character and mature landscaping to newer construction with contemporary layouts and finishes.

Neither is automatically the better choice.

An established home may offer a location or setting that’s difficult to reproduce, while newer construction may appeal to buyers looking for modern layouts and fewer immediate updates.

The right choice depends on what matters most to you. Judy can help you compare different properties and understand how each one fits your priorities.

Don’t Forget the Cost Beyond the Purchase Price

Your budget shouldn’t stop at the listing price.

Depending on the property, you’ll also want to consider homeowners insurance, property taxes, association fees, utilities and expected maintenance.

If you’re relocating from another part of the country, some Gulf Coast ownership considerations may also be new to you.

The important thing is to research those costs for the specific property you’re considering rather than making assumptions about the entire area.

Start Exploring Homes for Sale in Fairhope

Once you have a better idea of the location, home style and features you’re looking for, the next step is seeing what’s available.

You can search available homes through JudySells.com and begin getting a feel for properties throughout Fairhope and the Eastern Shore.

If you see something that interests you, Judy can help you learn more about the property, arrange a showing and compare it with other homes that may fit your needs.

You Don’t Have to Figure Out Fairhope Alone

Online listings are a great place to start, but they can’t tell you everything about a home or how a particular location may fit what you’re looking for.

That’s where local experience can make a difference.

Judy Niemeyer has called Fairhope home since 1976 and has decades of experience helping buyers and sellers throughout the Eastern Shore of Mobile Bay.

Whether you’re moving to Fairhope from another state or already live nearby, Judy can help you narrow your search and navigate the buying process from start to finish.

Ready to Start Your Fairhope Home Search?

Whether you’re relocating, searching for your next home, planning for retirement or looking for a vacation property, Judy can help you find properties that match what you’re actually looking for.

Ready to take the next step? Start searching homes for sale or contact Judy Niemeyer at 251-583-5923 to talk about your Fairhope home search.

Tax Advice if You Sold Your Home

Tax Implications of Selling a Home

Did You Sell Your Home After Making Improvements?

Keeping track of the cost of capital improvements to your home can really pay off on your tax return when it comes time to sell.

Tax Implications of Selling a Home

It’s no secret that finishing your basement will increase your home’s value. What you may not know is the money you spend on this type of so-called capital improvement could also help lower your tax bill when you sell your house.

Tax rules let you add capital improvement expenses to the cost basis of your home. Why is that a big deal? Because a higher cost basis lowers the total profit—capital gain, in IRS-speak—you’re required to pay taxes on.

The tax break doesn’t come into play for everyone. Most homeowners are exempted from paying taxes on the first $250,000 of profit for single filers ($500,000 for joint filers). If you move frequently, maybe it’s not worth the effort to track capital improvement expenses. But if you plan to live in your house a long time or make lots of upgrades, saving receipts is a smart move.

What Counts As a Capital Improvement?

Although you may consider all the work you do to your home an improvement, the IRS looks at things differently. A rule of thumb: A capital improvement increases your home’s value, while a non-eligible repair just returns something to its original condition. According to the IRS, capital improvements have to last for more than one year and add value to your home, prolong its life, or adapt it to new uses.

Capital improvements can include everything from a new bathroom or deck to a new water heater or furnace. Page 9 of IRS Publication 523 has a list of eligible improvements.

There are limitations. The improvements must still be evident when you sell. So if you put in wall-to-wall carpeting 10 years ago and then replaced it with hardwood floors five years ago, you can’t count the carpeting as a capital improvement. Repairs, like painting your house or fixing sagging gutters, don’t count. The IRS describes repairs as things that are done to maintain a home’s good condition without adding value or prolonging its life.

There can be a fine line between a capital improvement and a repair, says Erik Lammert, former tax research specialist at the National Association of Tax Professionals. For instance, if you replace a few shingles on your roof, it’s a repair. If you replace the entire roof, it’s a capital improvement. Same goes for windows. If you replace a broken window pane, repair. Put in a new window, capital improvement.

One exception: If your home is damaged in a fire or natural disaster, everything you do to restore your home to its pre-loss condition counts as a capital improvement.

How Capital Improvements Affect Your Gain

To figure out how improvements affect your tax bill, you first have to know your cost basis. The cost basis is the amount of money you spent to buy or build your home including all the costs you paid at the closing: fees to lawyers, survey charges, transfer taxes, and home inspection, to name a few. You should be able to find all those costs on the settlement statement you received at your closing.

Next, you’ll need to account for any subsequent capital improvements you made to your home. Let’s say you bought your home for $200,000 including all closing costs. That’s the initial cost basis. You then spent $25,000 to remodel your kitchen. Add those together and you get an adjusted cost basis of $225,000.

Now, suppose you’ve lived in your home as your main residence for at least two out of the last five years. Any profit you make on the sale will be taxed as a long-term capital gain. You sell your home for $475,000. That means you have a capital gain of $250,000 (the $475,000 sale price minus the $225,000 cost basis). You’re single, so you get an automatic exemption for the $250,000 profit. End of story.

Here’s where it gets interesting. Had you not factored in the money you spent on the kitchen remodel, you’d be facing a tax bill for that $25,000 gain that exceeded the automatic exemption. By keeping receipts and adjusting your basis, you’ve saved about $5,000 in taxes based on the  15% tax rate on capital gains. Well worth taking an hour a month to organize your home improvement receipts, don’t you think?

The top rate for most homesellers remains 15%. For sellers in the 39.6% income tax bracket, the cap gains rate is 20%.

Watch Out for These Basis-Busters

Some situations (below) can lower your basis, thus increasing your risk of facing a tax bill when you sell. Consult a tax adviser.

  • If you use the actual cost method and take depreciation on a home office, you have to subtract those deductions from your basis.
  • Any depreciation available to you because you rented your house works the same way.
  • You also have to subtract subsidies from utility companies for making energy-related home improvements or energy-efficiency tax credits you’ve received.
  • If you bought your home using the federal tax credit for first-time homebuyers, you’ll have to deduct that from your basis too, says Mark Steber, chief tax officer at Jackson Hewitt Tax Services.

Words of Wisdom from Judy Niemeyer

words of wisdom

As you know, I definitely have a history in the art of surviving in real estate. Today, what we are experiencing causes me to go back in time to reflect what our country has gone through. Yes, my real estate career as you know started in 1979. Each time we experience hard times, our country comes back stronger, so our confidence needs to strengthen.

We at Ashurst and Niemeyer are encouraging agents to pre-qualify their clients and make sure that they are true buyers not just lookers. The number one thing is to use common sense during this crisis and hopefully all of us with be safe. Virtual tours are available for all agents to visit your homes so please do not think that real estate is at a standstill. In fact, we are still making sales and over all the market is very impressive when comparing this year to last year.

Positives right now, listings remain to be down the number of listings remains low, and so many people turn to real estate to invest when the stock market decreases. It is time that we need to enjoy our beautiful weather, say our prayers and know we will get through it with incredible strength.

Any questions on the market, let me know. I am definitely available.

Regards to all,

Judy Niemeyer, CRS

251-583-5923 or Judy@AshurstandNiemeyer.com

Tips for Buyers and Sellers

Tips For Buyers and Sellers

Today I attended a wonderful seminar on flood insurance guidelines and fortified homes.  In our area of Fairhope/Point Clear, our home owner’s insurance rates can be higher than in other parts of our state of Alabama due to our location being hurricane proof.  Tips for you, if you live on the bay or in areas that might have an issue on flooding–please get an elevation certificate.  If you have a elevation certificate, do not loose it.  Your insurance agent will want a copy of it.

In insuring homes, the age of the roof, as well as the electrical and plumbing upgrades are big questions of an insurance agent.  If you replace your roof, make sure you take the steps to get it certified.  Certification normally costs about $400-$500 but needs to be done while the roof is being replaced.  Photos need to be taken to show how the roof is being installed.  In our city, a permit is required and roofers have to comply with the city of Fairhope guidelines.

If your home was gold certified when it was built, you must have a certification from the builder.  This certification is good for 5 years.  All certifications will give an expiration date.  Home owners need to contact a local company that can re-certify your home which costs can vary between $150 to $300.  Beware of the recertification.

FEMA flood insurance will expire on November 21st, 2019 unless Congress extends it.  The House has approved the bill titled HR3167 which is now in the Senate’s hands.  Hopefully this will be approved and no extension will be necessary.  Limitations on FEMA is $250,000 for structure and $100,000 for contents.  If you need more coverage,  insurance agents encourage looking at private companies and compare costs for flood.  This was excellent information.  So many homes are underinsured today.

I hope these tips help you.

Any questions, feel free to e-mail me at Judy@AshurstandNiemeyer.com

 

New Happenings in Fairhope

May 3rd is first Friday.  If you haven’t attended, please do.  Galleries are open, as well as shops and the Eastern Shore Art Center–walk the streets and enjoy.

Matilda which is being produced by the Eastern Shore Repertory will be produced on The Bluff of Henry George Park.  Dates from May 2-4th and tickets are $15 for children and $30 for adults.  Bring your blankets, either pay at the door or online.  Incredible talent and production that you can enjoy.

May 9, 2019, Fairhope Girls Night Out–from 4-8 PM.  Purchase tickets online at www.downtownfairhope.com.

Have fun and enjoy this beautiful weather.

Spring is Here!!

Fairhope is shining with beautiful spring flowers and gorgeous sunsets.  Our market is extremely healthy.  Buyers are out and inventory is down.  Since January we have had 574 homes to close with 391 presently under contract.  These stats are from Spanish Fort to Point Clear.  As you know this is the Eastern Shore of Mobile Bay.

It is a great time to sit back and enjoy this time of the year.  May 9th is ladies day in downtown Fairhope.  Shops will be open late with specials for all the ladies.

Don’t forget Live at Five–concert series at the Community College Outdoor Stage–4/26 will be the The Modern El Dorados, 5/12 Wet Willie and Magnolia Bayou and 5/17 The Tip Tops.  These concerts are free–just bringing your blankets or chairs.

Thank you to You

Today is a special day for all of us to say thank you for all the men and woman that have served in the military.  These men and woman have helped to protect our country and maintain our freedom.  Just think, major combat in World War I ended 100 years ago today.

You and I know that we definitely appreciate all are serving today, as well as all that have served and lost their lives in the past years, but outlined below is the history of this day which I wanted to share today.

In 1947, the first official Veterans Day was celebrated on the 11th day of November.   But initially in 1919, Armistice Day was established to honor those who served in World War I.  After World War II, a veteran from Birmingham named Raymond Weeks decided to expand Armistice Day to include all those who had served in the armed forces.  In 1947, he led a delegation to Washington, DC., to urge then Army Chief of Staff Gen. Dwight Eisenhower to create a national holiday that honored all veterans.  In 1954, President Eisenhower signed legislation establishing November 11 as Veterans Day.

Take time in your day to say thank you.  Have a great Sunday.

Has Fall Arrived?

The weatherman keeps telling us that Fall is coming, temperatures will be dropping but so far we are waiting.  Talking to a friend yesterday in St. Louis, winter has come and Fall didn’t arrive.  Weather is crazy now.  How about you?

Talking of weather, our hearts go out to the people in Panama City as well as neighboring towns such as Mexico Beach.  Seeing the pictures, it reminds me of Ivan and Katrina.  Devastation of a hurricane or a tornado makes you realize how fragile life is.  WE take for granite our surroundings.  Each day we need to be thankful.

On the other side, what is big in Fairhope.  Each Thursday in October from 3-6 PM, The Fairhope Outdoor Farmer’s Market is located behind the Fairhope Public Library.  On October 22, the City Council Meeting will be in the city council chambers at 6 pm.  October 25th, at 5:30, Fairhope Witches Ride–go to www.facbook.com/FairhopeWitchesRide.  This is a great fund raiser but really adds whimsical Halloween theme to downtown Fairhope.  Then on October 27, trick or treat in Downtown for kids of all ages.  Stores that display pumpkins in their windows are participating.

Our market is extremely healthy with only 368 active listings in Fairhope.  89 homes are under contract and 673 homes have closed since January.  Yes, we are fortunate.

Please sit back and be thankful but again Hurricane victims need your help.  In our area, we have donation drop offs for victims.  Look them up and take time to help the unfortunate.

You think Fall is in the Air?

Summer is coming to a close.  My grand babies are either in school or will be soon.  But in the meantime, welcome to Hugh in our Kyack  on Mobile Bay–what fun we have had.  The other day on the radio, I heard that August is like Fall.  Don’t know where the announcer got this information but our weather has been extremely hot and humid.

What an interesting market, listings are down throughout our area as well as Baldwin County.  Just for your information Baldwin County is the largest county in Alabama and always has been a diverse market.  We range from farm land to the magnificent condominiums overlooking the Gulf of Mexico.  Total listings today are 2362 with 825 homes under contract but 3678 have closed since January 1, 2018 with an average sales price of $265,704.  This is an 8% increase from last year .

Within Baldwin County, the Eastern Shore of Mobile Bay adds another dimension to the Baldwin County market.  Cities vary in price ranges but stretch from Spanish Fort to Point Clear.  This area is graced by beautiful sunsets and incredible views of Mobile Bay.  This location is an easy commute to Mobile.  Presently we have 826 homes on the market with 298 homes under contract but 1387 homes that have closed since January 1, 2018.  Of course these stats are included in Baldwin County.  This is a 9% increase from last year.

As September is around the corner, please take time to enjoy the last lazy days of Summer.