Does downsizing make sense?
Sometimes an immediate move to a smaller home represents the course of sanity because the original home’s expenses are too great. But such a move may not be wise if it ultimately won’t save you much money or if it requires you to relocate to a lower-quality school district. 7. Selling offers a fresh start. If you’ve lived in a house for years, it no doubt holds many memories for you, both good and bad. Sometimes making a clean break can be helpful emotionally. 8. Understand the tax benefits of selling. Thanks to the capital gains tax exclusion, you and your spouse each can exclude as much as $250,000 of any capital gain. You also can take advantage of this exclusion if you sell the home after a period of co-ownership. You must have owned and lived in the house for at least two of the previous five years to qualify for the full exclusion. 9. Know when not to sell. If your home is in a depressed market, make an effort to hang on to it until property values increase. You could rent the ho
