One way to ease some pre-sale anxiety: do all the math up front so you have a clear idea of what proceeds you’re likely to get once your property sells. You’ll avoid unexpected stress at the closing table and be in a better position to plan for the purchase (or rental) of your next home.
Your real estate agent will provide you with “sharp sheets” that can show your estimated product under different scenarios. Your net will depend on how much you pay off your mortgage, your closing costs and, of course, how much your home ultimately sells for.
If you’ve owned your home for a long time or if values have risen sharply in your market in recent years, a sale could trigger a capital gains tax, Coons says. You’re exempt from capital gains tax on profits up to $250,000 (or $500,000 for a married couple), Coons says, but some owners may have accumulated profits beyond that limit.
“If you’re not buying somewhere else right away, you might want to put your money in a high-yield savings account, certificate of deposit, or treasury bills for six months to a year,” says Chubinishvili. “Put it somewhere it’s accessible when you’re ready to buy.” The goal is to have your money in a safe investment that is also flexible so you can get the funds easily when you need them.
