How to Save Money on Your Home Sale
Selling a home is a process. In this process, you want to make sure you get the most out of your home and you can save money. To save money you can avoid capital gains, sell directly to a buyer, and work with a real estate agent.
Avoid Capital Gains
Capital gains tax happen when you sell a home at a higher price than when you bought it. However, many are exempt from these taxes up to a certain amount because of the Taxpayer Relief Act of 1997. If the home you are selling is your primary residence, and you are single, you are exempt from $250,000 of the capital gains. If you are married and file taxes jointly you can be exempt from $500,000. These exemptions can happen only every two years, so be wary of how frequently you move and sell your home. Another way to avoid capital gains is to make improvements to your home which you can add to the exemptions.
Sell Directly to a Buyer
Selling directly to a buyer can help you save money in many ways. Buyers will pay cash for your home which means that the sale can go through quickly. Selling your home for cash can save you time and money. Selling directly to a buyer also helps you avoid commission fees. Investors are not real estate agents, and so they don’t require commissions. A buyer will usually cover closing costs, which means you can save some money on the closing.
Work with a Real Estate Agent
While working with a real estate agent won’t be free, the money you save on your sale will be worth it even after paying commissions to the agent. Real estate agents, especially an experienced and trusted one, have the knowledge to help you make the sale of your home. They will help you sell your home quickly, which will save you in mortgage payments. They can also help you get more money for your home sale because of their negotiation skills.
Getting the most out of your home is an important thing when you are selling. You want to sell for at least as much as you bought the home for and save money in the transaction. Doing your research, timing your sale right, and enlisting the help of a professional can help you make this happen.
Check out this article on common misconceptions about selling your home!