Buying and selling at the same time begins with understanding your needs and your financial situation. Most clients who are buying and selling at the same time are “move-up” buyers or are downsizing. Typically, they fall into one of the following categories:
Talk to a Lender
The discussion with your lender should give you an understanding of what you qualify for, the monthly payments, closing costs and how interest rates will affect the monthly payment. The lender can help you determine if you must sell before buying, if you can buy non-contingent on the sale of your home (selling your home at a later date), or if you can buy non-contingent and just need to rent your home. Exploring each of these options is very important.
The Selling Process & Current Market
The best market analysis of your home is what a buyer in an open market will agree to pay within a given timeframe.
Since that cannot be achieved without actually putting your home on the market, you will want an agent who knows your market well enough to review your home’s condition. The agent will then evaluate it against other homes nearby that have sold as well as against what is currently on the market. With that estimated sales price, you can determine the “equity” you will take from the property after fees and taxes are paid. It is best to review a range of prices from “worst case” to “best case” selling prices. Further, an agent can assess what your home may rent for if you decide to keep it.
The Scenarios for Buying and Selling at The Same Time
The Bottom Line
If you're thinking about a move-up (or down), we are happy to meet with you and discuss the right plan of action for your current situation. We're here to help so contact us and let's talk.
Credit Sue Goodhart
Warm weather, blue waves, Cuban food and Disney World – do you really need more reasons than that to move to Florida? If the Wizarding World of Harry Potter and manatees don't do it for you, maybe the lax income taxes and plentiful credits will. If you're a little less easily persuaded – or maybe just really fiscally responsible – you'll be happy to know that in Florida, the sun shines on plenty of tax perks.
In terms of taxes, one of the key benefits of moving to Florida is what isn't there – namely, state income taxes. Alongside just six other states in the U.S., Florida does not impose income tax. The law is written in the state constitution, making it highly unlikely to change, and even better, that constitution prohibits municipalities and counties from levying personal income tax too.
Similarly, via its 2001 Economic Growth and Tax Relief Reconciliation Act, the Sunshine State does not impose a state death tax or a state-level estate tax. In response to conservative tax reform passed in late 2017 that limits tax deductions for many earners, among other measures, Florida Governor Rick Scott told the New York Post, "I want to personally welcome anyone escaping high tax states to join the hundreds of thousands of their former neighbors who have already moved to Florida."
Florida Tax Benefits: Personal
The tax advantages of living in Florida don't end at the lack of state income tax; many perks come in the form of personal tax breaks. If you own a home in Florida, the Save Our Home Act provides a homestead exemption, protecting the first $50,000 of your home's taxable value from taxation (except for school district taxes, which only have a $25,000 exemption – but it's for a good cause).
When it's time for your kids to hit the books, don't sweat the taxes. Every August, Florida hosts a tax-free weekend for school supplies that cost up to $60. Don't forget the other summertime tax holiday, which removes taxes on preparedness items like portable lights, radios, first-aid kits, generators and batteries.
Florida Tax Benefits: Business
Like its actual climate, Florida's tax climate is extremely welcoming to businesses. Here's just a sampling of the business-related taxes you won't have to pay in the Florida: corporate income tax on limited partnerships or subchapter S-corporations, corporate franchise tax on capital stock, property tax on business inventories or goods-in-transit (for up to 180 days on the latter), sales tax on the purchase of raw materials for use in a product intended for resale or sales or use tax on the co-generation of electricity.
As a state all too familiar with rising sea levels, Florida also offers a bevy of environmentally minded exemptions. These include exemptions for the use of electricity or steam used in manufacturing, natural gases used to generate electricity and solar energy systems.
With all the tax advantages of relocating to the Sunshine State, it makes sense consider that second or permanent home in a State that offers incentives. Whether you're ready to move, or considering a change in your life, reach out to us, we can help.
By Dan Ketchum
Live Naples Luxury
The Team at eXp Realty are available to answer any questions you may have regarding the Naples/Marco Island market. Contact Us.
It pays to have agents who are familiar with the ins and outs of the community. We're here to help guide you.