Selling a property is not a decision to make lightly. It might be your family home that you cherish or a rental that has provided you with a source of income for many years. When the thought presents itself that now might be the right time to sell, don’t hurry to call the first realtor you know. It may pay to consider the following information first.
Even though a house sale ends with you receiving money, it’s still worth thinking about who pays taxes when selling a house, any hidden costs, and renovation costs if required.
You might be required to pay tax if you made more than $250,000 profit on your home or if you haven’t lived in it for at least two of the five years before a sale.
Costs are also worth considering if you’ve decided to approach a real estate agent to help you with the sale. In 2020, the average real estate agent fee was 5.656%, which means you might be paying almost $17,000 to an agent for the sale of a $300,000 property.
Who Sells It
When you see ‘for sale’ signs appearing on your neighbors’ lawns, it’s only natural to assume that selling a home requires you to go through an agency. However, you have other options.
You can sell directly to a member of the public or a home buyer who renovates homes and sells them to the general public at a later date. Weigh up your options based on your unique situation.
When to Buy Another
If the reason you’re selling a property is to buy another, it’s worth thinking about whether you will purchase another one before or after you sell.
Buying first means you may need to cover twice as many house-related costs like insurance and utilities. However, selling first means you may feel the pressure of trying to find a home you like before you have to move out of your current property.
Fortunately, when you sell directly to home buyers, you know the speed at which you can receive a cash offer, so you may be able to line up a sale and purchase simultaneously.
It’s only natural to want to receive as much money for your home as possible. However, factor whether renovations are within your power into the decision-making process. If you don’t consider yourself skilled in trades, even the simplest DIY tasks may need to be outsourced.
At this point, you may start to wonder if the time and costs associated with renovations are worth the potentially higher sales price. Sometimes, the convenience of a fast sale can outweigh the possible benefits of a fuller wallet.
Moving Services to Organize
Regardless of how you sell your home, there can often be a lot to organize in those final days. You need to pack up your possessions, clean the house from top to bottom, and arrange for a moving service to take everything you own to its new destination.
How you sell your home can dictate the level of organization you need to have. For example, selling directly to a cash buyer means you don’t need to worry about cleaning services. You can simply move out with your belongings. If you’re selling through a real estate agent, you may see the value in hiring a cleaner and saving yourself a considerable amount of stress.
There’s no denying that selling your home can be a stressful process with so much to think about. However, you may be able to enjoy a fast, convenient, and stress-free sale by factoring in the points above.