There are many things to consider when it comes to selling your home. Some questions might be more straightforward than others, so I am writing about some important things to consider when selling your home. These things tend to be less known, not often discussed, or can easily be missed when someone sells their home.

1. Taxes

  • It is essential to speak with a tax person about any potential tax consequences. Some things that could lead to capital gains taxes would be if the home has been occupied or a rental, if you have depreciated or written off part of the home on your taxes for business purposes, if you have not lived in them for 2 years, if you have sold another owner-occupied property in the last 2 years, if you are a single individual and your gains are more than $250,000, or a couple and your gains are more than $500,000.
  • If you're an out-of-state seller, there is a 2% withholding until you file your state taxes with the state of Colorado. This is very important to research and understand.
  • If you are a foreign national, there are significant tax withholdings, and consulting a CPA is mandatory prior to listing. Please let me know right away if this is the case.

2. Money for Purchasing

  • Do you need to refinance or obtain a HELOC to get money for your purchase? No lender will refinance on a home that is currently on the market. Owner occupancy refinances are cheaper than investment refinances.
  • If you're using the proceeds of the sale of your home to purchase a new home, you do not want to receive them as a check because your bank may put a hold on the funds. A wire transfer can solve this complication. We can transfer your funds straight from one title company to another.

3. Moving Costs

  • If you're relocating for a new job, it may be important to consider the total cost of moving. Have you looked into whether or not your new employer will cover some of your moving costs? If not, you may need to have some cash available for movers, minor cosmetic updates, and/or deposits on the new house.

4. Repairs / Updates

  • If you know you qualify for an insurance claim, these may take some time to complete. If it is an unavoidable or a major repair that will be discovered through an inspection such as a sewer repair, roof repair, structural repair, HVAC issue, etc., it may be worth addressing before listing the home.
  • The only repairs we advise completing before listing your home are cosmetic and other improvements that would bring a higher offer to the home.
  • If your home is going to be vacant when listing, you may want to consider staging the home to enable buyers to envision the entire potential of the home.

5. Timing

  • While it is common knowledge that selling between Thanksgiving and the New Year is less than ideal, July and August are historically slow times to sell a home. This is due to many people being on vacation. A little known fact is that January and February are extremely busy for home buying because people get their tax returns and inventory is low.
  • Do you have somewhere to go or is there a vacation you're already planning in order to accommodate showings on your home? For home showings, you may have to leave the home for large periods of time.
  • Do you have a place to board your pets during the day for showings? Sometimes you will not receive very much notice about showings.
  • When considering photographing your home, it is important to note that photographers only work on weekdays. It takes 24 hours after the photos are taken for them to be delivered. Combined with wait times to reserve the photographer and the fact that photos take time to be delivered, at least a one-week lead time is recommended for photography.
  • The ideal day of the week to list your home is on Thursday. I will advise you on the average days it takes to get an offer on your home. After an offer is accepted, the escrow process until closing usually lasts 30 days.

6. Handing Over the Home

  • While this may not be a deciding factor in whether or not to sell your home, the transfer of utilities is an important consideration. The title company will transfer the water bill for the new buyers and seller, but you will be responsible for canceling electricity gas cable, and other utilities.
  • Unless the contract specifies that you have to have the home professionally cleaned it must be left as clean as it was for showing or the inspection, whichever was cleaner.
  • If applicable, your HOA (homeowners association) might charge and likely does charge a fee for transferring to a new owner. This can range from a couple of hundred dollars to 1% or more of the home price. It's important to understand these costs in advance.

My Flat Fee

If you are interested in selling your home, I do offer a Denver full-service, flat fee real estate model. You can learn more about my services here: www.realtyofco.com/flat-fee

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