After your property is on the market and has successfully sold, your work is not done. Keep the ten following tips in mind after you sell your property.
- Re-evaluate your personal finances.
If your financial situation has changed since you bought your last property, you need to rethink your finances and how much you want to spend (and put down) on a new home.
- Don’t feel pressured to re-buy.
Take your time. Don’t feel rushed or pressured to find your next home and remember renting is always an option, even if you’ve owned for a significant period of time.
- Stay up-to-date on tax laws.
You can avoid losing money when selling your property by staying up-to-date on tax laws.
- Choose your next home carefully.
Again, don’t feel pressured to re-buy just because you are selling! Check out multiple styles of homes that may work for your family, and tour different neighborhoods. For more information about selecting the best neighborhood, click here to read “How to Know if a Neighborhood is the Right Fit for You & Your Family.”
- Evaluate your next down payment.
Again, re-evaluate your personal finances if your situation has changed since you last bought a property. A good rule of thumb says 20% down qualifies buyers for the best mortgage programs. More mature home buyers may want to put down larger amounts.
- Consider your need for an agent.
Will the agent who helped sell your home be a good fit when helping you buy? If you’re relocating, it may be best to find an agent better acclimated with the area.
- If you are re-buying, send change of address notices.
The USPS recommends completing change of address paperwork no less than 30 days before moving.
- If you’re not re-buying, put your proceeds in a money market fund.
Money market funds secure funds, provide reasonable return, allow daily access to money, and give the ability to write checks.
- Keep copies of all paperwork.
Documentation of all expenses and proceeds is necessary to file taxes on April 15 after your property sale. These same documents may be necessary if you are audited.
- Keep proof of improvements and prior purchases.
Receipts and/or documentation of all home improvements may be added to your home’s cost basis when filing taxes on April 15.