If you know that you’ll be selling a home remotely, don’t wait until the last minute. It’s hard enough to sell a home, and being far away makes it even more difficult to prep the home, deal with tenants and make sure that you have the best agent for the job. Here are some tips for making your sale a success.
Make sure you’ve lived in the home for at least two of the last five years : The federal government allows homeowners to sell their home without paying taxes on the first $250,000 in gain for single people, or $500,000 for married people. The catch is that your home has to have been your primary residence for at least two of the past five years. Many people don’t realize this requirement, nor do they plan for it, and they end up with a taxable gain. Still others don’t account for timing and end up selling “under the gun” to make the deadline. To benefit from this amazing tax break, the sale has to close within the appropriate window. Know this and plan ahead, otherwise the home will be taxed as an investment property.
Get a good agent on board early : The smartest remote sellers have a solid agent with their feet on the street. A good agent provides a local resource for their clients. They can field late night calls from owners with leaky faucets, or intervene with tenant issues. If you don’t know a good local agent, try to identify one before you move away, or on a visit back to the old home. Solidify the relationship well before you plan to sell. Once the time comes to sell, it could be as easy as picking up the phone and asking the agent to execute the listing.
Stay on top of the home’s market : Put together a search of your property and stay on top of what’s selling in the area. Follow similar sized homes that go for sale and keep an eye on their listings. A smart homeowner will keep a search open at all times, in addition to staying in touch with their real estate agent. Just one or two comparable sets could motivate you to take action.
Take care of your tenants (if you have them) : Nobody wants to be displaced. Moving is incredibly disturbing. If you’ve been renting your home and are likely to sell to someone who will want to live there, as opposed to inheriting your tenant, then give your tenant some notice of your intention to sell. A smart homeowner will tell the tenant upfront of their long-term plan and write language into the rental agreement stating that the tenant needs to cooperate for showings at the end of the lease.
