10 Steps to Take After Selling Your Home
Selling your home is a significant milestone that brings a mix of relief, excitement, and a touch of nostalgia. While closing day marks the end of one chapter, it’s important to stay proactive with the next steps. Here’s a comprehensive guide on what to do after you’ve sold your home: Step 1: Confirm Closing Pay-Offs Once the sale is complete, double-check that all funds have been transferred as agreed. Ensure that your mortgage is paid off and that any remaining proceeds are safely deposited into your account. During the closing process, various financial obligations tied to the property are typically settled. Confirming these pay-offs is crucial, and here is a list of common items and who to contact to verify payment: You can review the closing statement provided at settlement and check with these relevant parties to ensure all payments were completed as outlined. Keep records of these confirmations for your files. Step 2: Cancel Homeowner’s Insurance Contact your insurance provider to cancel or adjust your homeowner’s insurance. Make sure the cancellation only occurs after the closing to avoid any lapses in coverage. If you are moving to a new home, it may be necessary to either obtain or update your insurance. Assessing various plans involves reviewing coverage options, costs, and provider reputations. Look for policies that adequately protect against potential risks and provide appropriate liability coverage. Consulting with an insurance professional can help you navigate this process efficiently. For assistance with insurance needs, reach out to our colleague John Schaeffer at Hanson & Ryan, Inc., located at 87 Lackawanna Ave, Totowa, NJ 07512. You can contact him at (973) 774-5987 or via email at jschaeffer@hanson-ryan.com. Step 3: Inform Utility Companies Notify utility providers of your move to prevent being charged for services post-sale. Transfer or close accounts for water, electricity, gas, internet, and other services as necessary. Step 4: Update Your Address Submit a change-of-address request with the postal service to ensure your mail is forwarded to your new location. Update your address for important accounts, such as banks, credit cards, and subscriptions. Here’s a thorough list of types of accounts to update your address for: Step 5: Keep a Copy of Your Closing Documents Retain copies of all documents related to the sale, including the settlement statement and deed transfer paperwork. These can be helpful for future tax filings or potential inquiries. To safely store these documents electronically, use secure, encrypted cloud storage services or digital filing systems that offer two-factor authentication. Ensure you back up these files in multiple locations, such as an external hard drive or another cloud service, to prevent data loss. Label and organize files clearly so they can be easily accessed when needed, and avoid sharing sensitive information over unsecured networks or with unauthorized individuals. Step 6: Prepare for Capital Gains Tax If you’ve made a significant profit from the sale, consult with a tax professional to understand any potential capital gains taxes you might owe and how to prepare for them effectively. … Read more