Life Events

Selling a home is a large financial transaction, and small choices in preparation, pricing and negotiation can change your result by thousands of dollars. A little planning also reduces stress.

Start with the numbers

Before listing, work out what you will actually net. Start with your expected sale price, then subtract the mortgage payoff, agent commissions, closing costs, any repairs or credits you may agree to and moving costs. Knowing your bottom line keeps you from accepting an offer that does not leave you where you need to be.

Price it realistically

Overpriced homes tend to sit, and a long listing can signal problems to buyers. Ask for a market analysis from more than one agent and look at recent sales of comparable homes nearby, not just listing prices. An independent appraisal can help if the market is unusual.

Prepare the home

• Declutter, deep clean and tidy the yard.
• Fix small items such as leaks, loose handles and burned-out bulbs.
• Consider a pre-listing inspection to avoid surprises.
• Be selective about renovations. Many large projects do not return their cost at sale.

Choosing representation and marketing

Interview agents about their experience in your area, their marketing plan and their fee. Commission arrangements are negotiable. Good photographs and an accurate description matter more than almost anything else online.

Handling offers

• Compare offers on net proceeds, not just price. Financing type, contingencies, closing date and requested credits all count.
• Check that the buyer is pre-approved.
• Respond to every offer, even if it is a counteroffer.
• Review disclosure obligations with your agent or attorney so you meet them fully.

Closing and taxes

At closing you will sign the deed and settlement documents and receive your proceeds. You will generally receive Form 1099-S if the sale must be reported. Whether you owe tax depends on your gain and on whether you qualify for the home sale exclusion, which generally requires that you owned and lived in the home for a minimum period. Keep records of your purchase price and improvements, since they reduce your taxable gain. See our companion article on minimizing the tax on the gain.

Timing a sale around your move, a job change or retirement can have tax consequences. Contact our office before you list and we can help you estimate the outcome.