Hey folks!
Recently, we've been asked by numerous people if you can purchase your next home while selling your current one. Although it can be a little tricky, ultimately the answer is yes. You can sell your home under the condition that you must find your next home first, but you must have an agent who understands the process and fills out the listing agreement carefully and correctly.
With everything going on with Covid-19 and the economy, many people are beginning the moving process now so that they can establish their new home while maintaining a safe distance to minimize exposure to the virus.
While this is possible for everyone, not everyone falls in the same category and there are extra factors to consider. For example, if you are selling your family home to purchase a new family residence, you can do a 1031 exchange. As the name implies, a 1031 exchange contemplates an “exchange” of like-kind property (same rough size) instead of a traditional sale. In short, you can sell your home in exchange for purchasing another similar property and any income gained from the sale received of the first property can have its tax payments deferred until the sale of the next property or upon death. You can't avoid real estate taxes forever, but you can delay paying them for quite a while if you know what you're doing.
I know that may seem like a lot of info, but that's why we are here. To educate, and motivate our clients to make the most informed decisions that best suits them and their family. If you have any questions you want answered by our team, please don't hesitate to contact us today!