Learn how Fairhope sellers and their agents evaluate comparable sales, competing listings, property condition and marketing strategy when setting an asking price.
Continue readingHow to Price Your Home to Sell in Fairhope, Alabama
Selling a Home in Fairhope: What to Prepare Before Meeting a Listing Agent
Before listing a Fairhope home, gather documents, review repairs and insurance details, discuss pricing and make a practical preparation plan.
Continue readingThinking 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. For property-specific pricing guidance, see how to price your home in Fairhope or request a conversation with Judy.
For a more detailed local plan, read our Fairhope pre-listing checklist, including roof records, pricing discussions and questions to ask your listing agent.
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. If your next move will be within the area, you can also browse homes for sale on the Eastern Shore and review our Fairhope, Daphne and Spanish Fort comparison.
Downsizing Your Home: Don’t Overlook the Tax Impact
Downsizing Your Home: Don’t Overlook the Tax Impact
Planning a move on Alabama’s Eastern Shore? Learn about selling your home with Judy Niemeyer or explore homes for sale in Fairhope, Daphne and Spanish Fort. For help preparing to sell, read the Fairhope seller checklist and home pricing guide.
Downsizing is a smart move for many homeowners—it can reduce monthly expenses, cut down on maintenance, and even free up cash from a sale. But before you list your home, it’s important to understand how capital gains taxes may affect your bottom line.
The Capital Gains Exclusion
If you sell your primary residence for a profit, you may be able to exclude up to $250,000 (single) or $500,000 (married filing jointly) of those gains from taxes. To qualify, you must have:
- Owned the home for at least two years.
- Lived in it as your primary residence for two of the last five years.
There are exceptions for job relocations, divorce, or other unforeseen circumstances. Keep in mind—you can use this exclusion multiple times, but only once every two years.
Cost Basis Matters
Your taxable gain isn’t just the sale price minus your purchase price. You can add in certain closing costs and capital improvements (like remodels, a new roof, or landscaping), which raise your cost basis and reduce taxes owed. Routine repairs don’t count. However, depreciation (such as for a home office) or energy tax credits can lower your basis and increase your taxable gain.
A Real-Life Example
Jon and Jane purchased their home in 1990 for $250,000 and sold it decades later for $875,000. After factoring in improvements and fees, their cost basis was $297,500. That left them with a $522,500 gain. Thanks to the $500,000 exclusion, only $22,500 was taxable—resulting in a modest $3,375 tax bill.
Renting vs. Buying After Selling
Selling doesn’t always mean buying again. Renting can eliminate property taxes and upkeep while freeing up money for retirement. However, it also means giving up equity and facing landlord restrictions. The right choice depends on your lifestyle, financial goals, and future plans.
Bottom Line: Downsizing can offer big financial benefits, but taxes play a major role in how much you actually keep. Keep detailed records of home improvements and consult a financial advisor before making your move. If you are preparing to sell on Alabama’s Eastern Shore, see our home-selling preparation guide and learn about listing your home with Judy Niemeyer.
Summer Market Update
Archive note (August 2023): The listing counts and mortgage rates below are historical and do not reflect today’s market. For current Fairhope and Eastern Shore buying or selling guidance, contact Judy Niemeyer or explore selling your home.
It’s hard to believe but August is almost over, and hopefully cooler weather is coming our way. The heat this summer has been brutal. Hopefully hurricanes will continue to stay away.
Our market has been very unpredictable. Homes that we think will sell quickly can take longer to sell. Our inventory is still extremely low. We have only 375 active listings from Spanish Fort to Point Clear. Out of the 375, 119 are brand new construction. 308 homes are under contract with 140 brand new construction. Since January 1, 2023, we have had 1,421 homes to close with 482 of this new construction. Most of the new homes are priced in the lower range.
The big difference between new and resale is gold certification, which gives you reduced insurance rates. Please remember when you get a new roof, verify that the roofer will certify it. Once certified, you can claim that the roof is fortified. Homes with older roofs really increase home insurance premiums.
The major obstacle in today’s world of real estate is the increasing mortgage rates. Today a 30-year mortgage with 20% down is 6.75%. According to one lender, rates are predicted to go up to 8%. Hopefully this prediction is not true. Of course, cash is big today.
Market wise, between now to Labor Day, our market slows. Right now, so many buyers are busy getting their children back to school. But after Labor Day, they get back in the action.
If you have any questions about the market, please reach out to me..
It’s a Sellers’ Market on the Eastern Shore
Archive note (2021): This article describes market conditions in early 2021, not the current Fairhope or Eastern Shore housing market. For an up-to-date pricing and selling discussion, see Judy’s home-selling services or contact Judy Niemeyer.
It’s a Sellers’ Market
![It’s a Sellers’ Market [INFOGRAPHIC] | MyKCM](https://files.mykcm.com/2021/02/25131035/20210226-MEM-1046x1503.png)
Some Highlights
- Over the past year, homeowners have gained an unprecedented opportunity to sell with great success while buyer demand is soaring.
- With homes selling twice as fast as they did last year at this time, getting multiple offers, and rising in price, homeowners are in the driver’s seat.
- Let’s connect today if you’re ready to learn about the leverage you have as a seller in today’s housing market.
Springtime Is the Beginning of Entertainment Season – Is it time for a remodel?
Spring will be upon us before we know it. As most of you know, Judy Niemeyer is a name that is recognized as an agent who knows the market in Fairhope, Montrose, Daphne, Spanish Fort and of course Point Clear. Locals call this area, the Eastern Shore of Alabama. My real estate career began in 1979, and oh how our homes have changed since then. Gold and green were the main colors back in 1979 and wallpaper was big. Wallpaper is coming back and I thought I would never say that. White is big and neutral is the new game in town. Accessories are being used to add the warmth.
If you are ready to make a change in your home, you may ask “Where should I start?” Most people like to start in the kitchen and Judy says YES!!!. Step back and give your kitchen a critical eye. Start pulling up suggestions either from internet sites such as Pinterest or Houzz, magazines, or even open houses in newer neighborhoods. If you need an outside eye, consult a kitchen designer but first think of budget. Get a notebook and start making a plan!
Appliances always show age, especially stoves. If you’ve had yours for years, go out and buy a new one. This is one of least expensive changes in a kitchen and makes an easy and immediate impact. Stainless has been popular for many years and still seems to be in style. Gas stoves are very popular and are favored by people who love to cook. Cabinet depth refrigerators certainly enhance the look of a kitchen, but they are usually more expensive.
Cabinets designs are simpler than they used to be. Shaker or slab doors are currently in style and present a clean and sleek look. In most cases, just replacing doors and adding hidden hinges will make a tremendous difference. Paint instead of stain is currently more common. Pull-outs shelves and Lazy Susan corners are a great way of utilizing your storage space if you are getting all new cabinets. Keep your kitchen color scheme as neutral as possible. Color can be added by using art and accessories.
Simple lines are fashionable. Lighting needs to flow. Quartz on countertops is used more today instead of granite or marble due to its versatility and resilience. Some people add depth to the countertop to create an additional dining space. Choose a simple backsplash but also keep it neutral. You do not want the updates to go out of style. I love a separated farm sink. If you replace the countertops, then choose a neat sink.
It can be tough to choose hardware that compliments your overall design. If your cabinet design is simple, stick with a simple pull. When choosing a faucet, consider spout height, pull down vs conventional, single vs. multiple handles and finish. Single handles are much more convenient to use as you can control with one hand. I recommend buying one that is easy to maintain. Pay for quality but easy maintenance.
Take your breakfast area and make it happy with comfortable chairs. This is a great gathering spot in a kitchen.
Updated kitchens bring a wow to a home. Have fun with the updates but remember start with a budget.
What’s the Difference between an Appraisal and a Home Inspection?
Appraisal vs. home inspection: what each tells you
Quick answer: A home appraisal estimates a property’s market value, often for the mortgage lender. A home inspection evaluates the home’s condition and identifies issues a buyer may want to investigate. They serve different purposes, and an appraisal does not replace an inspection. For more guidance, read our Eastern Shore home-buying guide or search homes for sale in Fairhope, Daphne and Spanish Fort.
If you’re planning to buy a home, an appraisal is an important step in the process. It’s a professional evaluation of the market value of the home you’d like to buy. In most cases, an appraisal is ordered by the lender to confirm or verify the value of the home prior to lending a buyer money for the purchase. It’s also a different step in the process from a home inspection, which assesses the condition of the home before you finalize the transaction. Here’s the breakdown of each one and why they’re both important when buying a home.
Appraisal vs. inspection at a glance
| Question | Home appraisal | Home inspection |
|---|---|---|
| Main purpose | Estimate market value | Evaluate physical condition |
| Usually requested by | Mortgage lender | Home buyer |
| Typical focus | Comparable sales, location and property characteristics | Roof, systems, structure and visible defects within the inspection scope |
| Does it replace the other? | No | No |
Buying in Fairhope or Daphne? Ask your lender about appraisal requirements and review your purchase agreement and inspection deadlines with your agent. For a local checklist, see buying a home in Fairhope and costs to budget beyond the mortgage.
What does a home appraisal evaluate?
The National Association of Realtors (NAR) explains:
“A home purchase is typically the largest investment someone will make. Protect yourself by getting your investment appraised! An appraiser will observe the property, analyze the data, and report their findings to their client. For the typical home purchase transaction, the lender usually orders the appraisal to assist in the lender’s decision to provide funds for a mortgage.”
When you apply for a mortgage, an unbiased appraisal (which is required by the lender) is the best way to confirm the value of the home based on the sale price. Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal will help make sure the bank doesn’t loan you more than what the home is worth.
Appraisal results can be especially important when the agreed purchase price differs from the appraised value. Market conditions change over time, so buyers should review the appraisal, discuss any gap with their lender and real estate professional, and understand their options under the purchase agreement.
However, the lender will only allow the buyer to borrow based on the value of the home. This is what helps keep home prices in check. If there’s ever any confusion or discrepancy between the appraisal and the sale price, your trusted real estate professional will help you navigate any additional negotiations in the buying process.
What does a home inspection evaluate?
Here’s the key difference between an appraisal and an inspection. MSN explains:
“In simplest terms, a home appraisal determines the value of a home, while a home inspection determines the condition of a home.”
The home inspection is a way to determine the current state, safety, and condition of the home before you finalize the sale. If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you as a buyer have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. Your real estate agent is a key expert to help you through this part of the process.
Plan your Eastern Shore home purchase
The appraisal and the inspection are critical steps when buying a home, and you don’t need to manage them by yourself. Contact Judy Niemeyer about your home purchase or call (251) 583-5923 to plan your next steps. Explore the Daphne and Spanish Fort community guides, or learn about Judy’s experience.
A Quick Note From Judy Niemeyer
A quick note from Judy Niemeyer ~
Welcome to our Fall! Mornings are beautiful with lower temperatures and beautiful skies. Of course, you have to imagine fall leaves because in the South, our leaves stay green. Can you believe that Thanksgiving is around the corner?
What a year 2020 has been. It has been a tough year for all of us. It reminds me of a very bumpy road, smooth in sections, and then a rut comes and bumps us off our path. Covid-19 was the first issue that bumped us. Masks became the new norm. Then Sally struck us with unbelievable winds and destruction. Now, we sit back and see what is next. Is it another Covid-19 burst or just the flu? Who knows?
Thank goodness, our real estate market has been very active. Interest rates continue to be very low. It is a great time for people to sell and buy. A lender last week quoted a 30-year interest rate of 2.8% which is hard to believe. Even with these low interest rates, buyers are still very opinionated. Selling a home is not as easy as the general public thinks.
Let’s compare 2019 to 2020:
Presently we have 523 active homes on the market from Spanish Fort to Point Clear with 460 homes under contract. If all of these homes close, 2020 will be an incredible real estate year.
If you have questions, please feel free to call me. I always love to hear from you!
Tax Advice if You Sold Your 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.
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.