What You Need to Know Before Selling Your House

Selling your house is a significant milestone, whether you’re moving for a new job, seeking more space, or downsizing. It’s a process that involves more than just swapping keys – it’s about navigating the intricate world of real estate transactions. Let’s look at five important things you need to know before selling your house to ensure you’re well-prepared before putting that “For Sale” sign in your front yard.

1. Consider Commission

First things first, be aware that selling your house often involves paying a commission to a real estate broker or agent. Rates can vary, so it’s crucial to shop around for a real estate agent or broker who aligns with your needs and offers a fair commission structure.

2. Preparing Your Home for Sale

When it comes to prepping your home, there are different schools of thought. Some suggest a little TLC with fresh paint and a general spruce-up, while others argue that buyers have their own plans. The key is to consult with your broker or agent to devise a plan that enhances your home’s appeal. Before any open house or professional photo session, make sure your home is clean, clutter-free, and ready to impress potential buyers.

3. Understanding Capital Gains and Losses

Now, let’s talk about capital gains and losses. It’s like playing Monopoly, but in real life! Calculate your gain or loss by subtracting all the selling expenses from the sale price and factor in everything you spent on your property, like renovations and repairs.  Keep in mind that if you do have a gain, it may be taxable.

4. Tax Breaks for Homeowners

On the bright side, homeowners may be eligible for tax breaks. If you’ve lived in your home for at least two of the last five years, you could qualify for certain exemptions. Be sure to chat with a trusted tax advisor to get everything squared away.

5. Preparing for Your Next Home

Once you’re ready to sell your house, don’t forget that you’ll have another list of things to know before buying your home! You’ll first want to figure out what size of home you need, what type of neighborhood you want to live in, and your budget.

You’ll also want to shop around for mortgages. Interest rates vary, but Scott Credit Union has great rates and even a 100% financing option! That means you might be able to purchase your new home with no down payment. Contact one of Scott Credit Union’s Home Loan Experts to find out which mortgage is best for you.

Selling your house involves more than just a change of residence – it’s a process that requires careful consideration. By understanding these key factors, you’ll be better equipped to navigate the complexities of the real estate market.

We hope these insights make your home-selling journey a seamless and successful one. For more financial tips and advice, check out our YouTube Financial Education Playlist.