Dear Candy: Thinking about selling my house. I have been told that inventory is incredibly low on my type of house: 6600 square feet, built in 07, area 11 (North Dallas), price probably $1.45 – $1.49.
So the dilemma…. I really need to wait until this September so that I will have been it in two years and not have to worry about Capital Gains.
In your opinion…. do I strike while the iron is hot? Or wait the until September so I don’t have to worry about my Cap Gains and HOPE that the Congress and this sequester does not kill the market?
I know you will know the answer, you are after all the GURU of Dallas real estate….
Thanks — PJ
Thanks for elevating me from House Porn Queen to Guru! This is a toughie. There is no doubt segments of our market — areas 11, 12, 18 and 25 — are red hot. We are down to about 4 months of inventory. Perusing MLS, prices are firming but we are not yet at full asking price or over asking price. We have a lot of people moving to Dallas/Ft. Worth, and interest rates are so low I told my son he basically has a free loan at 3%. Banks still on the stingy side, but if your home is ready to show, this is the perfect time to sell.
Here’s your problem: most families will want to get in the home by fall to get settled for school. But then, if you wait, you will have more inventory competition. The million dollar question is how long this active market will be hot, which is dependent on so many elements, as you noted. Those of us who have lived through a couple busts tend to say strike while the iron is hot, before it freezes! We are very fortunate we are not Chicago, but like you say, those Bozos in D.C. are capable of just about anything.
I’d put it on the market late spring, see what happens, and check out the possibility of a delayed closing. The sale is official in the eyes of the IRS when it is closed and funded. You just never know just what might work for one particular buyer. But we will ask our REAL experts to chime in next!
Thanks for writing!