We’re a mere two weeks away from 2018! The dawn of the new year presents a great opportunity to reflect upon the past year and plan for the future. Today I’d like to take a moment to review some simple steps you can take to prepare for the year ahead. If you’re looking to buy or sell a home in 2018, or even wondering whether doing so would be beneficial to you, here are some things to consider.
As I have noted before, the holiday season tends to present opportunities in real estate. One thing that often gets overlooked, though, is that things don’t magically change on January 1st. Typically, yearly inventory is lowest at the end of the year, yes, but things take a while to ramp up to their midsummer peak. The fact is, there are rarely significantly more homes on the market the first week of any given year than there were the last week of the year prior. Thus, even if the holidays have kept you too busy to be thinking about home sales, you can still benefit from low winter inventory. If you want to sell your home at a time when there is very low inventory (to increase buyers’ focus on your home) while taking advantage of a relatively distraction-free season, January could be the optimal time to act. In any case, it’s certainly worthwhile to be cognizant of your options.
NEW YEAR, NEW TAX PLAN
As we speak, a new tax plan is passing through Congress and likely to be signed into law shortly. It has changed quite a bit over the past few weeks, and keeping up with the latest changes has proven difficult. Regardless of the plan’s final form, one thing is for sure: it represents a massive overhaul. Since taxes are a huge part of the calculations in any real estate transaction, staying educated about these changes is crucial to your financial planning. For example, the mortgage interest deduction has been lowered from $1 million to $750,000 for new homebuyers, which is particularly significant in this area, where fewer and fewer homes sell for $750,000 or less. Here’s a great list of important things to keep in mind about the tax plan, and if you would like to be connected with a tax professional for more info, feel free to contact me. I can point you in the right direction!
The new year is coming, but as they say, change is good. With a little preparation, 2018 has the potential to be the best year yet for home buyers and sellers. And as always, I’m here to help out with your real estate needs. Here’s to a happy and prosperous year ahead!