Better Homeowner

Through a 28-year lens, tax policies on home sales haven't kept pace with rising home values. That's putting homeowners in a bind and stifling real estate opportunities across the board. Since 1997, the capital gains exclusion on the sale of a primary residence has remained unchanged at $250,000 for individuals and $500,000 for married couples. Back then, the average U.S. home cost about $145,000. Today, that same home sells for around $422,600, up a staggering 191%. But the tax break hasn't budged, squeezing homeowners who have earned significant appreciation over decades. Housing economists refer to this as the "Stay-Put Penalty" since tax-free profit has a capped limit, many homeowners are discouraged from selling, even after years of significant appreciation. Research shows that 34% of homeowners (about 29 million people) have already surpassed the $250,000 single-filer threshold, and over 10% have exceeded the $500,000 joint-filer cap according to...

When a home goes under contract, many assume it's a done deal, but in reality, most real estate contracts include contingencies , or conditions that must be met for the sale to proceed. These clauses are designed to protect both buyers and sellers and offer a legal way to exit the agreement if something doesn't go as planned. One of the most common contingencies is the home inspection contingency . This allows the buyer to have the property professionally inspected after the offer is accepted. If the inspection uncovers serious issues, such as foundation problems, roof damage, or plumbing concerns, the buyer has the right to negotiate repairs, ask for a price reduction, or even walk away from the deal without losing their earnest money. Another widely used contingency is the financing contingency , also known as a mortgage contingency. This protects the buyer in case their loan application is denied or the terms change in a way that makes financing impossible. For ...

1. Take Advantage of Homeowner Tax Benefits Mortgage Interest Deduction: Deduct interest on up to $750,000 of acquisition debt (for loans after 2017). Property Tax Deduction: Deduct up to $10,000 in combined state and local taxes (SALT). Capital Gains Exclusion: Exclude up to $250,000 ($500,000 for married couples) in profit when selling a primary residence, if ownership and use tests are met. Energy-Efficient Home Credits: Federal tax credits available for solar, heat pumps, insulation, windows, and more. 2. Lower Your Monthly Housing Costs Refinance When Rates Drop: Consider refinancing your mortgage to reduce your interest rate and monthly payment. Appeal Property Tax Assessments: If your home's assessed value is too high, appeal to potentially lower your annual property taxes. Bundle Insurance Policies: Save by combining home and auto insurance with the same provider. Shop for Home Insurance Annually: Rates and coverage vary�review and compare policies regularly. ...

In real estate negotiations, it's not uncommon for both buyers or sellers to include expiration dates on offers and counteroffers. These deadlines serve several important purposes that help keep the process efficient, transparent, and fair to both sides. First and foremost, expiration dates create urgency . They encourage the other party to respond within a specific timeframe rather than leaving the offer open-ended. Without a clear deadline, one side could be left waiting indefinitely, which can cause unnecessary delays or lost opportunities. Expiration dates also prevent stale offers from being accepted later. Real estate markets move quickly, and a buyer or seller's circumstances can change rapidly. A buyer who submits an offer today may no longer be in a position to move forward a week later. The expiration ensures that all terms are current and that both parties are negotiating in real time. From a strategic standpoint, expiration dates help maintain le...