Homeowners in USA usually don’t stay in the same property forever. People consider moving to different places or at different times for a variety of reasons:
Downsizing or upsizing, moving out of state for lower costs or lifestyle, relocation for job or school, affordability, etc.
If you decide to begin the moving process, you should ask yourself when the best time to sell is. Consider that people like to move during the summer for a new job, school, downsizing or upsizing. Some people like to take advantage of capital gains tax exclusion for a principal residence and move after living there 2+ years of the past five years. These reasons apply both to you and the buyer, so weigh them carefully.
To minimize your capital gain, keep all receipts from remodel or home improvement to add costs on purchasing. When the cost is higher the gain is lower.
” You can deduct any costs associated with selling the home-including legal fees, escrow fees, advertising costs, and real estate agent commissions,” says Joshua Zimmelman, president of Westwood Tax & Consulting in Rockville Center, NY.
Only members of the armed forces on active duty can still take a deduction on moving expenses for a job change after 2018 tax changes.
If you sell in a seller’s market, you might receive multiple offers. Screen their financial ability to purchase from proof of fund, pre-approval letter, and fico score. Pick the right one!
Once you’ve found a buyer, the agent will negotiate counter offers, track the paperwork, open escrow for the transaction, and reply to buyer’s questions during contingency period.
When it’s time for an appraiser to come, mention how much the house upgraded to ensure its value there, so the buyer’s loan gets approved. Don’t let the appraiser kill the deal!
After the buyer removes the loan contingency, all parties work hard for the closing. Buyer has a chance for a final walkthrough on the house before closing. You have to make sure the house is ready!
At the final stage, the escrow officer will distribute funds to all parties and the new ownership has been recorded. Deliver your house keys to the new owner, remember to shut down your utility accounts and change your mailing address.
Your new journey starts when you say goodbye to your home!