Sellers: Frequently Asked Questions

• How do Wisconsin home buyers find a home?

Wisconsin sellers typically sell their home in five weeks, unchanged since 2003. The typical seller had lived in his or her home for six years prior to selling, down from nine years in 2003. The overwhelming majority of Wisconsin sellers use an agent; however, 26 percent sell their home without using an agent - up from 19 percent in 2003, and almost double the national average of 14 percent. Seventy-nine percent of agent-assisted sellers report that they will "definitely" use their agent or recommend the agent to a friend, compared to only 63 percent nationwide, and up from 75 percent statewide in 2003.

Some sellers are also choosing to go it on their own through For-Sale-By-Owner (FSBO) sales. FSBO sellers note the most difficult task they face selling on their own is "getting the price right" and "understanding and completing paperwork." While many of these FSBO sellers do eventually sell their homes, often they do not sell efficiently - either receiving too little for their home or not selling their home in a timely manner. Six percent of FSBO sellers indicate that they will use an agent the next time they sell a home.

Reprinted from Real Estate Magazine Online edition, 12/04 issue.

• Are there any tax benefits for sellers?

Homeowners are winners under the Taxpayer Relief Act of 1997. Under the new law, up to $250,000 ($500,000 for a married couple filing a joint return) of gain realized on the sale or exchange of a principal residence is not taxable - not just deferred. In addition, the new law reduced the capital gains tax rate. Any gain from your home sale in excess of $250,000/$500,000 is taxed at the new lower rate.

Homeowners qualify for this tax exclusion if two requirements are met:

1. The home must be used as a principal residence for two of the preceding five years. This law does not apply to vacation or second-home properties. There are some exceptions for those who cannot satisfy the two-year use requirement.
2. No more than one sale or exchange can take place every two years.

If you are selling your home, you should contact a tax advisor for details on how this new law applies to your sale.

• How do you market your home?

Your agent can recommend home repairs or cosmetic work that will significantly enhance the salability of your property. Your agent acts as the marketing coordinator, disbursing information about your property through a variety of mediums - placing strategic property ads, holding open houses, using the MLS - only available to REALTORS(R) - to quickly reach a large number of home buyers, as well as networking with other realtors and business contacts.

• How do you price your home?

Your realtor can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.