Most of us dream of owning a home one day. There's something special about the freedom and privacy that comes with living in a house you bought yourself. The average house in Arizona costs just over $436,000, making the state fairly expensive compared to many others in the country.
Regardless of how much you pay for your house, most people don't stay in their first home forever. It's essential to understand the nuances of selling your house.
More specifically, you'll need to educate yourself on the tax implications of selling a house below market value. Let's explore the key home-selling tips you should keep in mind.
Tax Implications of Selling a House Below Market Value
Your tax obligations will depend on many factors. Some of the most prominent include whether you made capital gains on the sale and how much you sold your house for. Working with a local tax assessor can provide greater insight into how much you'll need to pay.
However, it's worth noting that people who sell their homes can exclude up to $250,000 in capital gains from their income. So, let's assume you purchased your house for $300,000. It's worth $600,000 in the current market, but you sell it for $500,000.
Since you only made $200,000 in property gains, you can exclude this amount from your income. This can save a substantial amount of money in taxes when selling a home.
How to Sell Your Home Fast
People in Phoenix who need to sell their homes as quickly as possible can take certain steps to optimize the process. Focusing on curb appeal when staging your home can make it more attractive to buyers.
It shouldn't take long for you to find someone interested in your home if you price it below market value. However, people might be hesitant to complete the sale because they'll wonder why you're selling your house for so little.
Instead of finding buyers on your own, you can work with an agent. Prioritizing cash buyers can also greatly speed up the process.
Finding a Cash Buyer
It's crucial to work with the right cash buyer when selling your home. This will make sure the process goes as smoothly as possible. When searching for cash buyers, consider their past reputation.
A brief online search can provide valuable insight into the experience you'll get. Stay away from buyers who have been involved in past controversies or lack a history.
Educate Yourself Before Selling
The last thing you want is to overlook the tax implications of selling a house below market value. As long as you understand your financial obligations, you'll avoid many issues you would've otherwise encountered. Be sure to do your due diligence when looking for a cash buyer so you can get the best results.
AZ Home Buyer aims to make the selling process as quick and easy as possible. We've worked with hundreds of sellers in Phoenix and always strive to exceed all expectations. You'll learn more about the benefits we provide when you get in touch with us today.
