What every buyer should know before purchasing a home.
1. Property taxes and qualified interest are diductible on an individual's federal income tax return. 2. Often, a home is the largest asset an individual has and is considered one of the most valuable investments available. 3. A portion of each amortized mortgage payment goes to principal which is an investment. 4. A home is one of the few investments that you can enjoy by living in it. 5. A realtor can usually show you any home whether it is listed with a company, a builder or even a for sale by owner. 6. Working through a realtor to purchase a for sale by owner home can by very advantageous because someone is looking out for your best interest. 7. A homeowner can exclude up to $500,000 of capital gain tax if married and filing jointly or up to $250,000 if single or filing separately. The home must have been the taxpayer's principal residence for the previous two years. 8. Beginning with May 7, 1997, there is no longer a requirement to purchase another home more expensive than the one sold. Homeowners are free to buy up or down with no tax consequences assuming their gain is less than the allowable amounts. 9. Ask your realtor if he/she is familiar with the neighbirhoods where you want to live. 10. Ask your realtor whom he/she is representing in the transaction and what he/she will do to keep you informed. 11. Your realtor should provide you with the highest level of service and advice.
