If your current homes for sale, you may be wondering what you should do after your home is officially sold. The closing process can be rigorous but with these quick tips, you’ll have a smooth process.
Keep your documents. During the duration of your home being on the market, you gathered a lot of paperwork through your realtor, real estate attorney, and the new homeowner.
It’s important you keep these documents in order after the home sells because you’ll need the documents for tax season. Even after the house is sold and taxes have been filed, you’ll want to keep all documents for up to 7 years in the event that you get audited.
Make note of tax laws. After your homes sold, it’s important you keep up with any regulations and changes in taxes, so you know what percentage of the profits you get to keep and which percentage you have to give to Uncle Sam.
Keep home improvement records. Another thing you want to keep is any record of previous home improvements you had complete especially if these were part of the closing process or contract.
To fully close out any open contracts, if it’s stated that you need to pay to get the roof shingled, you’ll need to keep a record of this so you can prove it was done. These home improvement expenses may also be a tax write off.
Purchase another home. If your homes sold and you have nowhere to live, it is time to find yourself a new home. If you made a profit on the home sold, you should use a portion of that for the down payment on a new place, so your mortgage isn’t as large.
Be sure you know the exact amount of profit you get to keep so you don’t spend money that you need to pay into the state or federal government for the sale.