How do I close the transaction?
Hire a closing agent
Non-professionals will generally need help with the final stage of the real estate deal. Laws vary greatly in different places about what is required to complete such deals. Find a lending institution, lawyer, or escrow or title insurance company before a single buyer bids on your property. Your closing agent will gather necessary information, including buyer qualification, to certify the validity of your transaction and, working with the buyer’s agent, will wrap up the contracts, title searches and insurance, and other details that will finally allow them to determine the net due to you, the buyer, at the end of the transaction.
What should I do after the sale?
Taxes
Since 1997, individual home sellers in the United States can hold on to $250,000 in profit free of Federal tax. Couples can hold on to $500,000. The requirements are simple: the seller or sellers must have resided in the home for the last two years and the sellers cannot have employed the same exemption in the last two years.
File the form 1099-S to detail the transaction, then calculate capital gains and losses based on the “cost basis” of your sale. This means tallying expenses associated with the transaction. Did you run an ad in the paper offering your home for sale? Did you pay excrow or title fees as the seller? Consult a local tax accountant to understand which other expenses are currently allowed in your cost basis calculation; you will also want to ask about applicable local and state tax codes for such profits.
Closing papers
As we’ve mentioned, you are advised to work with a local closing agent to complete your transaction. No general book can detail a complete checklist of to-do items, which vary substantially by state.
Broker/Owner
Continental Realty Inc.
DRE# 01422589
925-548-5461
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