You probably think your worries are over once you sign the paperwork and sell a house. Unfortunately, this isn’t the case.
Selling a house is a stressful process, especially if you’re doing it the traditional way. Once the deed is signed, there is probably nothing you’d like more than to go and focus on your life once again. The last thing you probably want to worry about is real estate!
But the truth is, if you don’t do the seven things on our list, you might end up losing a bunch of money once you sell a house. This is why we’d advise you to take a few more days to deal with the aftermath of your house sale properly.
If you want to keep your peace of mind, here are seven things you should do after you sell a house:
1. Keep the Copies of All the Paperwork
This goes without saying: You should keep copies of all the paperwork that you sign during the closing of the sale. You might need them while filing for taxes the next time. Even if you don’t plan on getting any tax returns, you’d want to have these documents if you’re ever audited.
2. Keep Proof of Prior Purchases and Improvements
Home improvements can get you a fine tax break if you have a large enough capital gain. However, if you want to take advantage of it, you’ll need to have all the documentation about those same improvements. Not to mention that you should keep this paperwork for as long as you’re the homeowner. This can help you prove the value of the house to the future buyer.
3. Save the Money
Unless you plan to sell a house and buy a new one immediately after, you should save your money in some safe place, or think about investing it in something other than the real estate market. A good idea would be to keep it in some savings account.
4. Consider Renting
If you don’t know where to go when you sell a house, it might be wiser to rent than to rush and purchase the first home you run into. Renting isn’t ‘throwing money away’, especially not if you plan on doing it for a little while. However, if you purchase a home that isn’t up to your standards, you feel like you have to be considered wasting your funds. If you work with some real estate investors, such as Sparks Property Investors LLC, and sell a house to them, you might even be able to rent it back for a while, until you’re settled.
5. Choose Your Next Home Carefully
Finding a new home after you’ve sold the previous one takes a lot of time and money. However, if you pick the first one and then you have to move after just a few years, it’ll take you even more time and money! It’s important to choose your next home carefully, so you don’t have to relocate fast. Always make sure to check plenty of options before you make a final decision. This is the only way you can be certain, at least to an extent, that you’ll be satisfied.
6. Think About the Next Payment in Advance
Once you sell a house, you should think about the payment for the next property you’ll purchase. It would be wise to prepare at least a 20% down payment, as this will help you not worry about an expensive mortgage rates and mortgage insurance. If you cannot make that 20% payment, then maybe it would be better for you to invest that money in stocks, mutual funds, or something similar that might help you get the money in a bit longer run.
7. Send Notices about the Address Change
We know, it sounds like a great idea to let people you own money to forget that you even exist. However, you don’t want to miss on the payment fees, interest charges, phone bills, and so on. Your bills have to find you, one way or another. Otherwise, you might even damage your credit score! You should always let the billing companies, investment accounts, and places of employment know that you’re moving. The same goes for your close family and friends.