Many people don’t know what to do after they sell a house, and if this is happening to you, then you need to read this article from start to finish. In today’s entry, we are going to tell you what you can do after selling your property so that you can relax a little more and start looking for your next home.
What can do you after selling your house?
If you wonder, what can I do if I sell my home? Then our list of recommendations is going to help you get through the process of selling a house:
Never forget the paperwork
The first thing you need to do after selling your property is organize all your paperwork because you will have a lot of it. Of course, dealing with documents is not fun, but you’ll glad if you do it on time.
Besides, if you have a real estate agent helping you through the process, then it’s going to be easier. If you have any questions, your realtor will be there to assist you.
Furthermore, you have to include the following paperwork:
- Papers on home additions or renovations: They can be claimed on your taxes. However, they will be claimed only if you saved all the receipts.
- Seller disclosures: These documents represent the things that you have disclosed to your buyer about the condition of the property.
- Purchasing the contract: Once you receive an offer, contracts will be prepared. These won’t be signed until negotiations are finished.
- Transfer documents: They include the transfer of the house’s deed and the rest of the paperwork required to officially give the new buyer the ownership.
- Property insurance: We suggest you keep these documents on hand to prevent issues.
One thing you need to know is that everything matters in these scenarios. Keep every document safe until you need it.If you do this, you’ll save yourself hours of searching for documents.
Be aware of the money
You probably already have an accountant helping you, and when it comes to taxes, you will need their assistance. If the house you are offering is your primary residence and has been for at least two or five years, you’re eligible for a $25, exemption on capital gains tax, and even $5, for married individuals.
Essentially, if you’re married and you just sold your house for less than $5,, taxes will not be a concern for you. On the other hand, if the house you’re trying to sell is an investment property, you will be exempt from taxes.
According to Adam Lesner, who is a licensed mortgage loan officer in Farmington Hills, MI, you can do a 131 Exchange, where the profits of the sold house go towards purchasing a new home, therefore eliminating the tax responsibility.
If you don’t want to look for a new house right away, you can consider putting your proceeds in a money market mutual fund, because it will guarantee you safety, and also allows you to access the money whenever you want.
What you can do is check if you’re meeting your short-term goals, such as an extra fund or an upcoming trip you’re planning, as well as your longer-term goals like retirement.
In case you haven’t prioritized both concepts, what you can do is use the funds to catch up. Also, if you’re eligible to contribute to a Roth IRA (Individual Retirement Account), now may be the perfect opportunity to open one and contribute the annual amount to boost your retirement savings.
Another relevant aspect of the “what to do after I sell my house” process is prepping for the house inspection. They are vital if you want to close a deal, and if you don’t want to have any problems, you have to get everything ready.
According to Rob Porter, a top real estate agent in Washington D.C., who has closed plenty of house deals, sellers have to mentally prepare themselves for any possible outcome.
As much as sellers think they have prepared their properties for a sale, an inspector will look for the smallest details to check if everything is right with the property.
While you may prefer to have your own inspection done before selling, to prevent any surprises, Porter advises against this by saying “Every inspector will come up with a diverse list of repairs for the house. So, if the home seller gets an inspection and fixes everything on time, another inspector will come along and provide them with an extra list of things to fix” she states.
Moreover, if the home inspector doesn’t find anything wrong, the buyer will definitely feel suspicious in regards to the inspection they paid for.
Notifying your bank
Chances are that if you are trying to sell your house, you’ll need to use some of that money to pay off your mortgage. You need to let your bank know that you’re going to do this, and we recommend doing this when you first decide to put your property on the market.
Some banks demand more notice than others, and by letting them know in advance, you won’t have to worry about anything.
Your new house
Plenty of people sell and buy simultaneously, which means more worries. But this is not impossible to achieve. What you can do is:
- Get your current home appraised: You’ll need the help of an experienced listing agent, who will tell you which aspects of your house are the weakest so that you can improve them.
- Find out what you can afford: In this case, you’ll require a mortgage broker. Before you start looking for a new house, you’ll need to get pre-approved, and depending on the results, the final amount may be lower than expected.
- Choose what you want and where you want it: Once you know what you can afford, decide what you’re looking for in a new property. The location of the new house is also essential.
Minimize the issues
Before listing your house, you have to do the following:
- Clean out the dirty gutters.
- Repaint the outside of the house if it looks deteriorated.
- Caulk around the chimney, as well as the windows and doors.
- Repair any loose stair railings or loose bricks.
- Make sure the small spaces are accessible, such as the attics.
- Test smoke and carbon monoxide levels to ensure they are alright.
- Replace all burned-out light bulbs.
Besides, be ready to leave the house on the day your inspection is scheduled. While this isn’t obligatory, many experts suggest you do it. According to Porter “Sellers love to talk about the house they are offering. So they could overshare information they might otherwise keep to themselves. This could be a death, a sound between the walls, something that would give buyers second thoughts about the house.”
Find the right moving company
Continuing with our entry on what to do after I sell my home, we’ve reached one aspect that can’t be overlooked. Finding the right moving company is fundamental when you want to move to a different house.
However, you’ll have to do some research to find the right one. The following tips could help you:
- If the company has a physical address.
- If the company has a membership with an accredited moving association.
You can also read the reviews of certain moving companies. Real accounts from real people will help you figure out if one of those companies is trustworthy or not.
This is where the fun begins for you. Packing up your old house is a great opportunity to purge. Over time, your home becomes crammed full of things you don’t use, and that occupies space.
You can use this chance to donate or toss the belongings you no longer need. That way, you’ll start fresh in a different place with the things that do matter to you. One tip you can use is that if you have a lot of stuff and it’s in good shape, you can organize a yard sale to make extra money.
To sell your home without too much trouble, have your home cleaned by a professional before you put it up for sale. If you have the time and tools, clean the house yourself.
Call all of your utility companies and ask them to turn off all your services the day after you close the house. If the utilities are turned off on the days, the buyer does a final walk-through, and the closing might get delayed.
Lastly, take a meter reading before you leave the house and give the number to the customer service representative when you call them to have every utility shut off, and this way your closing won’t be delayed.
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