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The Paper Trail<\/h2>\n
First off, buy a file box (or just use a sturdy cardboard box with a lid) and put every single piece of paperwork relating to the sale of your home in it. Even if you think you don\u2019t need it, save it, because these documents will become important when it comes time to do your taxes.<\/p>\n
For example, if you made any improvements to your home such as adding new bathrooms, creating a master suite, or finishing your basement, you may be able to claim a portion of what you spent on your taxes.<\/p>\n
Download Publication 523<\/a> on the IRS.gov site to determine whether your improvements qualify.<\/p>\n Read all contracts carefully. While your Realtor will, hopefully, be on top of deadlines, it doesn\u2019t hurt to be aware of all of the sellers\u2019 and buyers\u2019 responsibilities set forth in the contract, says David Reiss, Professor of Law at Brooklyn Law School<\/a> in Brooklyn, NY.<\/p>\n \u201cHave the buyers applied for a mortgage within the time allotted in the contract? Have the buyers received a mortgage commitment within the time allotted in the contract? If the answer is no, the sellers should understand what their rights are under the contract as a result of those events.\u201d<\/p>\n (Read: you may be able to back out of the deal.)<\/strong><\/p>\n Conversely, once you\u2019re at the closing table, go over your settlement statements carefully. Then go over them again. You\u2019re looking for any hidden fees (like courier or processing fees) and the correct amount on mortgage payoffs, if any.<\/p>\n You probably already have a trustworthy accountant and you\u2019re definitely going to need their services come tax time. If the home you\u2019re selling is your primary residence (and has been for at least two out of five years) you\u2019re eligible for a $250,000 exemption on capital gains tax or $500,000 for married people. Basically, if you\u2019re married and you sold your home for less than 500K, you won\u2019t pay tax on your earnings. Cha ching!<\/p>\n But what if the home you\u2019re selling is an investment property?<\/p>\n Turns out you may be exempt from taxes in that event as well, according to Adam Lesner<\/a>, a licensed mortgage loan officer in Farmington Hills, MI., In this instance you can do a 1031 Exchange, says Lesner, where the proceeds of the sold home go towards purchasing a new property, thereby eliminating the tax obligation.<\/p>\n Visit 1031exchange.com<\/a> to learn more about this process.<\/p>\n If you aren\u2019t purchasing a new home right away, consider putting your proceeds in a money market mutual fund, which will keep it safe, but also allow you to access it when you want. This is also a good time to revisit your financial goals, says Ryan Frailich, a financial coach and planner at Deliberate Finances, LLC.<\/a><\/p>\n \u201cCheck if you’re on track to meeting your short term goals (such as an emergency fund or upcoming vacation you’re planning), as well as longer term goals like retirement. If you’re behind in those areas, prioritize using the funds to catch up,\u201d advises Frailich. \u201cIf you’re eligible to contribute to a Roth Ira, now may be a great time to open one and contribute the annual maximum to boost your retirement savings.\u201d<\/p>\n Visit rothira.com<\/a> for details on whether you are eligible for a Roth Ira as well as how to open an account.<\/p>\n Home inspections are a standard part of the process when you sell your home.<\/a> After all, the buyer doesn\u2019t want to get stuck with a money pit, and a home inspector will point out any potential problems. And there will be problems, says Robyn Porter,<\/a> a top real estate agent in the Washington D.C. Metro area who has roughly 3 times more homes sold than the average agent in the area. \u201cI tell sellers to mentally prepare themselves for the results. As much as a seller thinks they’ve prepared their home for a sale, an inspector will find things wrong with the property. That’s their job.\u201d<\/p>\n While you may be tempted to have your own inspection done pre-sale to avoid any surprises, Porter advises against that. \u201cEvery inspector will come up with a different list of repair items. So if the home seller does get an inspection and fixes everything, another inspector will just come along and give them another list of things that they have to fix,\u201d she says.<\/p>\n \u201cAfter all,\u201d she points out, \u201cif the home inspector doesn’t find anything wrong, the buyer will be very suspect about the inspection they just paid for.\u201d<\/p>\n According to WIN Home Inspection,<\/a> a home inspection company with offices in 28 states, you should:<\/p>\n Finally, be prepared to leave the house on the day your inspection is scheduled. While this isn\u2019t mandatory, it\u2019s strongly suggested, says Porter. \u201cSellers love to talk about their property. So they might over share info they might otherwise not want to reveal. This could be a ghost, a death, noise between the walls, something that would give a buyer pause about the property.\u201d<\/p>\n Once the buyer has secured their mortgage, met their deadlines, and a closing date has been determined, it\u2019s time for you to get packing\u2014literally.<\/p>\n Hiring a reputable moving company is crucial, seeing as they\u2019re going to be handling many of your valuables. Start by asking friends and colleagues for recommendations.<\/p>\n Once you\u2019ve got a good list, log onto the Better Business Bureau<\/a> to see if the company has any complaints against it. The U.S. Department of Transportation<\/a> can also help you determine whether a company is properly licensed and insured.<\/p>\n Plan on getting an in-home estimate from three movers before choosing one. When a representative for the company comes to your home, be honest about all of the items you want them to move so that your quote is as accurate as possible. They should provide you with an estimate that sets their hourly wage, amount of hours the move will take, and any additional costs you may incur.<\/p>\n Also, ask a lot of questions, such as:<\/a><\/p>\n Once you\u2019ve decided on a moving company\u2014and whether or not to have them pack any items for you\u2014you\u2019ll need to start boxing up your belongings.<\/p>\n First, go through each room in your house and figure out what you want to keep and what you want to donate. Consider contacting Goodwill,<\/a> Habitat for Humanity,<\/a> or GreenDrop<\/a> to donate items that you aren\u2019t taking with you.<\/p>\n Move For Hunger<\/a> works with moving companies to move your non-perishable food items to a local food bank for no charge.<\/p>\n Start stocking up on packing supplies such as boxes, packing tape, labels and Sharpie markers. Home Depot and Amazon have a large amount of moving supplies.<\/p>\nThe Money Matters<\/h2>\n
![\"I](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2017\/02\/house-home-inspection-e1486509991235.jpg\")
Prepping for the Home Inspection<\/h2>\n
What you can do to minimize any delays or issues:<\/h3>\n
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Getting Ready For Your Move<\/h2>\n
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Before You Go\u2026<\/h2>\n
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