Answers by Gary And Linda Bale

The $250,000 capital gains exclusion for individuals (or $500,000 for married couples) typically only applies to a primary residence, and the IRS generally requires that you owned and lived in the home for at least two of the last five years before selling in order to qualify. Since you mentioned you owned the property for five years but only lived in it for one, it likely would not fully qualify for the primary residence exclusion. In that case, any profit would typically be treated as a capital gain on a second home or investment property, which is usually subject to capital gains tax. That said, there are a few strategies people sometimes explore depending on their situation, such as: • Converting the home into a primary residence and meeting the 2-year residency requirement before selling • Offsetting gains with capital losses from other investments • If the property has been rented, potentially using depreciation and other tax treatments • In some cases with investment properties, exploring a 1031 exchange to defer taxes Because tax situations can vary quite a bit, the best step is usually to speak with a CPA or tax advisor who can review your specific numbers and timeline.

Getting the most money for your home in today’s market comes down to three things done extremely well: preparation, pricing, and exposure. Most sellers focus only on price, but the homes that sell for the most are the ones that create the strongest demand from day one. Here is what actually makes the biggest difference. 1. Prepare the home before it hits the market The first impression determines how much buyers are willing to pay. Homes that are clean, staged, and professionally presented consistently sell faster and closer to the asking price. Focus on: • Professional staging or strategic furniture placement • Fresh paint where needed • Minor repairs buyers immediately notice • Deep cleaning and decluttering • Strong curb appeal Homes that look “move-in ready” attract more buyers and stronger offers. 2. Price it strategically, not optimistically Many sellers think listing higher leaves room to negotiate. In reality, overpriced homes often sit, lose momentum, and sell for less later. The best strategy is to price where the market will generate immediate interest and multiple showings in the first two weeks, which is when the most serious buyers are paying attention. 3. Maximize the first two weeks on the market The first 10–14 days are the most important window. That’s when your listing appears as “new” and receives the most online attention. If the home launches properly, it can create multiple-offer pressure, which is where sellers typically achieve their highest price. 4. Invest in high-quality marketing Buyers shop online first, so presentation matters. Top-performing listings typically include: • Professional photography and video • Strong listing descriptions that tell the story of the home • Targeted digital advertising and social media promotion • Exposure across major listing platforms • Direct outreach to buyer agents with qualified clients 5. Remove buyer uncertainty Buyers pay more when they feel confident. Some sellers now offer: • Pre-listing inspections • Repairing known issues upfront • Providing documentation on updates and maintenance • Clear disclosures Reducing uncertainty reduces negotiation pressure. 6. Be flexible during showings The more buyers who see the home, the higher the chance of strong offers. Limiting showings often limits price. 7. Understand buyer psychology in today’s market Even in a slower economy, homes that are properly prepared and priced correctly still attract strong demand. Buyers may be more selective, but they will compete for homes that stand out.