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My NC Homes is selling homes quicker than we can find sellers and list them. By spending the time and money necessary to properly present and market our seller’s homes, they are being sold either sight unseen (buyers have the confidence necessary because we invest in proper staging, professional photography, virtual tours including 3D walkthrough floor plans, and video) or there are dozens of appointments made typically within hours of the homes hitting the market. Final contract prices are well above asking and we are getting the absolute best terms for sellers. The market is at present strongly favoring sellers and if you were thinking of downsizing to make a move towards retirement or looking for less maintenance and more liquidity, this is an excellent time to do so with the proper planning and professional guidance.
When you start to consider downsizing, the tasks that immediately come to mind, and serve as popular reasons to procrastinate are figuring out what to keep, what to give away, and what to sell, where you will live, how much taxes you will pay in gains, and whether the market will continue to improve. Further, it is an emotional process whether you are dividing things between children or deciding what you REALLY want from where you live. Then, of course, there are visions of taking your favorite items to Antiques Roadshow and finding out that a dinner tray you inherited is worth five figures. We want to offer some practical guidance and benefits of selling your home now, while the market is in your favor.
Below are market conditions and strategic information for downsizing sellers in The Triangle.
Assessing Market Conditions and Your Needs
Realtor.com released the following statement recently regarding inventory and year-on-year sales; "Nationally, the inventory of homes for sale in February decreased by 48.6% over the past year, a higher rate of decline compared to the 42.6 % drop in January. This amounted to 496,000 fewer homes for sale compared to February of last year." There is a severe shortage of homes on the market and if you have considered selling in the past 5 years, there have not been better conditions. "Where will I move, if I'm are selling?" is probably top of mind followed by numerous thoughts as to what you may want and need as well as concerns about buying in such a competitive market are also commonplace.
Planning the Process
Every client we work with has different challenges; some can buy first; without selling their current home and if you’re in this position, one of the primary concerns is eliminated. You can readily focus on what you really want in your next home. 
Things we encourage our clients to consider carefully are one-level living or simply a master bedroom on the main floor, location to family/friends, work etc. Other things to think about include energy efficiency, property tax rates, proximity to healthcare providers and shopping and entertainment options. Very possibly you do need the proceeds from the sale of your current home before you could close on a new one. If this is your situation; you have options.
Plan on renting. If you are willing to rent (or rent back) once you’ve sold your home, we suggest the following. Start prepping your home for sale. We often start our sellers off months in advance of our placing their home on the market or even having pictures taken. We understand that depending on what is necessary to showcase your home properly; that it can take some time. We're comfortable investing in our clients and putting skin in the game. In todays market we have been extraordinarily successful in getting our sellers a leaseback worked into the terms of the sale contract. This allows them to stay put for 2-6 weeks after the sale of the home. This has multiple advantages. It saves our clients from having to move twice in a short period of time and it enables them to put their new home under contract knowing that they will have the necessary proceeds well in advance of closing on their new home. If you're having a new home built for you, this may not be as viable an option depending on the buyers needs. In this case you may need to plan on renting for 6 months or so or simply remaining in your current home and then putting it on the market 2 months prior to the new homes completion. As noted, everyone is different, if you're wondering what might work best for you, any of us at My NC Homes is available to sit down and discuss your specific concerns, just give us a call or send an email and we can schedule a time to get together.
Find Out Your Home's Value
The value of a home is not fixed. It is dependent entirely on what your neighbors are selling for and what people are willing to pay for it. In order to sell at the best price and on the most advantageous terms for you, it's critical that your home is properly presented. This includes proper pricing, staging it to show it off at its best, creating interest, being prepared in advance for virtual showings etc. 
My NC Homes offers complimentary valuations here on our site. We also offer free detailed analysis that considers such things as location, layout, physical condition, landscape, improvements, deficiencies, etc. This pricing analysis is much more specific to your home and requires us to visually inspect your home. During that visit we are happy to answer all questions you might have and explain our marketing plans for your home.
Whether you have lived in your home long term or you are helping a parent downsize, this is a great place to start the process. Knowing what your home will sell for allows you to create a budget for the next home you'll be buying.
Enlist a Reputable Realtor
When looking for a realtor to help sell your current home and downsize to a more appropriate sized home or into a 55+ community, we can't overstate the importance of doing your research before selecting a Realtor®. Many people are entering the real estate business in this market without requisite experience and this inexperience will cost you time, money, and sanity. Statistically, 9 out of 10 new real estate agents will be completely out of the business within the first 2 years of starting. Some of the benchmarks of a good realtor and real estate brokerage are number of years in the business, online reviews, advanced qualifications and continuing education, professional website, marketing program, local expertise and market knowledge, and seller referrals. My NC Homes has been in real
estate in the Raleigh, Chapel Hill, and Durham for 15+ years. Larry Tollen and Andrew Palumbo both ran highly successful real estate firms for 15+ years before relocating here to the Triangle and with Lauren Wimple have over 60 years of combined real estate and building experience, excellent reputations within the industry, one of the top performing real estate websites, modern marketing strategy, and impeccable seller referrals. If you are at this stage of looking for an agent to represent your sale and assist in a downsizing strategy, we hope to hear from you.
Plan for Removal of Possessions
One of the biggest headaches of moving and downsizing is what to do with all of your stuff. Our best advice is to use it, sell it, or give it away. Downsizing can be emotional as you face changes, but also focusing on how liberating it is to have a lower maintenance 
lifestyle makes it worth it. We know from our own personal experiences the pleasure you feel when you let stuff go. Depending on what it is you have, we have a variety of resources ranging from simple hauling off, to appraisers and auctioneers. Experience has taught us that most used furniture has little retail value, it often makes more sense to donate it, give it to someone you know or plan for a yard sale. My NC Homes can refer you to interior designers or other professionals in the area to assist in this process as necessary. This is part of our selling strategy. We know we can make this part of the process easier for you if requested.
What About Capital Gains Taxes
The good news is that for Homeowners who have lived in a home for 2 or more years out of the past 5 years there may be no capital gains at all. Individual owners can take up to $250,000 profit tax free and married couples $500,000 tax free. Above these amounts you will have to pay Capital Gains Taxes. Below is a table of capital gains taxes. These are the current 2021 rates, for the complete article click here.
If you are filing your taxes as a single person
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0% if your income was between $0 and $40,000.
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15% if your income was between $40,001 and $441,450.
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20% if your income was $441,451 or more.
If you are filing your taxes as married, filing jointly
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0% if your income was between $0 and $80,000.
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15% if your income was between $80,001 and $496,600.
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20% if your income was $496,601 or more.
If you are filing your taxes as the head of household
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0% if your income was between $0 and $53,600.
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15% if your income was between $53,601 and $469,050.
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20% if your income was $469,051 or more.
If you are filing your taxes as married, but filing separately
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0% if your income was between $0 and $40,000.
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15% if your income was between $40,001 and $248,300.
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20% if your income was $248,301 or more.
A professional reputable realtor will need to give you the true market value of your home and your accountant using this number can then discuss whether and how you’ll be impacted.
We hope that this post is helpful and offers some guidance on leveraging the seller's market to your advantage and some key points to consider. Whether you are downsizing for a lower maintenance lifestyle or you are downsizing to take advantage of such a great seller's marketing, you can trust selling your Triangle Area Home to My NC Homes. We have represented sellers in the area for over 50 years and we have helped homeowners, just like you, transition to smaller spaces with ease and with a profit! Call us today!
If you've got any questions or are ready to move forward, simplify your life and make a move into a home that will serve your needs better, get in touch with our team today to learn more about the exciting opportunities that are available to you!
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