Summertime is typically a period where people in South Orange, Maplewood, Montclair, West Orange and our key feeder markets like Brooklyn, Manhattan and Jersey City are focused on vacations and travel, not real estate– as it should be. Yet, it’s not too early to start planning for a listing in early 2025.
Sellers often think they need to wait until their landscaping is in bloom but I don’t believe this is the case. Sellers can often do even better in this early Spring market (mid Jan to March). I LOVE this time of year for our sellers. There is typically half as much inventory to compete with versus the later spring market and each home gets a lot of attention from buyers who are craving each new listing.
Here is a special offer for you! If you are considering an early spring listing and would like photos taken now while your flowers are blooming please reach out. We can shoot your exterior photos in advance so you are ready to go in 2025 even if there is snow on the ground.
Speaking of looking ahead, there are some tax changes coming that will impact real estate and we want you to be aware of them. The Tax Cuts and Jobs Act provisions enacted in 2017 are set to expire at the end of 2025 unless congress can agree to extend these provisions. This article summarizes what is on the horizon and here are some key points that touch on real estate:
- The tax rate on long term capital gains could increase significantly as it will be linked to your ordinary income tax rate. This could mean a jump from 0-20% to well over 30% depending on your bracket.
- There could be major reductions in the amount one can gift tax free as part of an estate. Limits could decrease from over $13 million to $7 mil.
- The SALT deductions would return without a $10,000 cap.
The mortgage interest tax deduction on new loans, which is currently limited to mortgage amounts under $750,000, would no longer be limited to that amount so bigger mortgages could qualify for the deduction. - Interest deductions on HELOCs of up to $100,000 would no longer be limited by use to “buy, build or substantially improve” a residence so the interest could be deducted no matter what you use the funds for.
You should consult your tax advisor about how these changes might affect your real estate plans. We would be honored to consult with you so we can time your transaction to optimize the tax implications for you. Reach out to us at [email protected].
The Allison Ziefert Real Estate Group is a top producing real estate team based at Compass in Short Hills, New Jersey. We are local market experts, specializing in real estate and homes in Maplewood, South Orange, Millburn/Short Hills, Montclair/Glen Ridge, West Orange, Morristown and the surrounding New Jersey towns. We’ve also got you covered coast to coast with the best connections to top agents around the country in any market you are exploring. We are driven by earning great testimonials and referral business from happy clients.