A Guide to Selling Your House
1) Find the Suitable Real Estate Agent to Work with
Working with a real estate agent takes a lot of pressure off from homeowners. It makes the home selling process less stressful and cumbersome for you, especially in today's heavy regulated and mandated laws/ regulations. Just because a deal is closed, if paperwork and process were not done legally/ ethically, a lawsuit can follow after the close of escrow or a few years down the line. Having a detail-oriented agent to guide, facilitate you through every step, negotiate and advise you on any questions and concerns you may have.
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2) Figure Out the Value of Your House
An accurate home value is crucial in getting your house sold.
Be sure you have an accurate estimate of your home’s value.
This will help you keep your possible selling prices grounded in reality. If your price is overly aggressive, you run the risk of missing the selling your home in a timely manner.
3) Prepare Your House for the Market
First impressions are everything. Before you even attempt to
put your home on the market, make sure all the preparation
work has been completed. It is crucial that your house is actually ready to be on the market as it can greatly affect the home's sale.
4) Consult with Your Accountant on Capital Gain Taxes
It's important as a Seller to know what you can exclude.
Profits from the sale of a home are subject to capital gains tax. Fortunately, the IRS allows home sellers to shield a portion of what they earn from taxation. As of 2016, sellers can exclude
up to $250,000 (or up to $500,000 if they’re married and they’re filing a joint tax return). To qualify for the home sale exclusion, you must have used the home you’re selling as your primary residence for two of the past five years. Consult with your CPA prior to putting your home on the market for sale. Get an estimate how much tax you would have to pay to Uncle
Sam from the sale's net proceed.
5) Documents Needed for Selling Your House
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Listing Agreement with your Agent to represent your sale
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Original Sales Contract and appraisal
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Recent Mortgage Statements ( if applicable)
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Homeowners Insurance, home warranties, maintenance records
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Preliminary Title Report
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Grant Deed
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Disclosures
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Previous or any recent Inspection Reports or appraisal reports
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Tax Statements
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others ( consult with your agent)
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6) Closing Costs
The average closing costs for a seller in California can be
broken down into six categories:
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Protect your new asset by getting Homeowner's insurance,
(flood, disaster and fire) -
Real Estate Commissions
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Escrow Fees
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Title Insurance
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Country Transfer Taxes
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City Transfer Taxes
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Miscellaneous Items
Some of these costs are based on the county and city you live in.
Assuming you don’t owe more than what your home is worth,
all of your closing costs are paid out of your proceeds, meaning you don’t pay anything out of pocket. You’ll see these costs toward the end of your estimated closing date on a settlement statement. This is a one-page document detailing the final
selling price, your total closing costs, and your net proceeds.
Consult with your Escrow company.