Thoughtful Questions Can Guide Your Decision

When interviewing real estate agents to sell your home, asking the right questions is key to finding an agent who will best meet your needs. The process of selling a home can be complex, and the right agent will not only have the experience and market knowledge but also the right approach to guide you through every step.

By asking insightful questions, you can gauge an agent's expertise, communication style, and understanding of your goals, ultimately helping you choose someone who will work tirelessly to achieve the best possible outcome for you.

Here are 25 common questions homeowners often ask when interviewing a real estate agent to sell their home:

1. What is your experience in real estate, and how long have you been working in this area?
2. How many homes have you sold in the past year?
3. What is your average sale-to-list price ratio?
4. How familiar are you with my neighborhood?
5. How do you determine the listing price for a home?
6. What are the current market trends, and how will they impact my home's sale?
7. Can you provide references from past clients?
8. What is your marketing strategy to sell my home?
9. Do you use professional photography, staging, or virtual tours?
10. Will you host open houses? If so, how many and when?
11. How will you keep me updated throughout the selling process?
12. What online platforms and social media channels will you use to promote my home?
13. What do you think are the unique selling points of my home?
14. How do you handle multiple offers?
15. What is your strategy for negotiating the best price for my home?
16. What is your commission rate, and what services does that include?
17. Are there any additional fees I should be aware of?
18. What steps do I need to take to prepare my home for sale?
19. How long do you expect it will take to sell my home?
20. What challenges do you anticipate in selling my home?
21. Can you provide a comparative market analysis (CMA) for my home?
22. How do you handle a situation where my home isn't getting offers?
23. What happens if I'm not satisfied with your service? Can I cancel the contract?
24. Do you work alone, or do you have a team?
25. What sets you apart from other agents? Why should I choose you?

Answers to these questions will help homeowners understand an agent's expertise, marketing approach, negotiation skills, and overall fit with their needs.  For more information, download our Sellers Guide.

Avoiding tax when you sell your home

In the past, many homeowners didn't give much thought to keeping detailed records of home improvements. With capital gains exclusion thresholds of $250,000 for single filers and $500,000 for married couples, most homeowners didn't come close to exceeding these limits when selling their homes.

As a result, they often overlooked the importance of tracking and documenting their expenditures on property improvements. However, the landscape has shifted significantly in the last decade.

The rapid appreciation of home values has pushed many homeowners into a position where they might exceed the capital gains exclusion threshold and owe taxes on their profit. By understanding what qualifies as a capital improvement and maintaining accurate records, homeowners can increase their adjusted basis, thereby reducing their taxable gain when selling their property.

What Counts as Capital Improvements?

Capital improvements are expenditures that add value to your home, prolong its useful life, or adapt it to new uses. These are not limited to big-ticket items like kitchen remodels or room additions, installing energy-efficient windows, replacing a roof, or upgrading HVAC systems.

Even landscaping improvements, building a deck, or adding a fence can qualify, as well as replacing a faucet, adding a video doorbell or other smart devices in the home. The key is that these improvements must be permanent and add to the property's value.

Why Keeping Records Matters

Every dollar spent on a capital improvement adds to the cost basis of your home. The cost basis is used to calculate your capital gain, which is the difference between your home's net sale price and its adjusted basis (original purchase price plus improvements). By increasing your cost basis, you can reduce the taxable portion of your profit, potentially saving thousands of dollars in capital gains taxes.

To maximize these benefits, it's crucial to keep receipts, invoices, and other documentation for all qualifying expenditures. Create a folder�physical or digital�to organize these records and ensure they're readily available when it comes time to sell your home.

Why This Matters Now

In the last decade, home prices have appreciated at an unprecedented pace. Inventories are smaller and demand is high causing the prices to increase. This rapid growth means more homeowners may find themselves exceeding the capital gains exclusion thresholds.

By properly documenting capital improvements, homeowners can mitigate their tax burden and retain more of their hard-earned equity. As home prices continue to rise, understanding and utilizing these strategies has never been more important.

For more information, consult your tax professional and download our Homeowners Tax Guide or IRS Publication 523.