Hooray! You’ve sold your home and handed the keys over to the new owners! Now what?
Do you need to buy another home and move? The agent who sold your home may be a likely candidate to help you locate another, but buying and selling require different skills. If you’re moving some distance, you might want a referral for another agent who knows your new area well.
If you cleared a good deal of cash from your sale, consider putting it in a safe, although possibly temporary, spot. While Money Market Accounts aren’t earning exactly astronomical returns at the moment, they are safe, usually guaranteed and give you easy access to your money and check writing.
Now what about all that paperwork you amassed during your listing and sale? Hold onto it, because you’ll need it for next year’s tax return. And hold onto it after that, in case (shudder) your return should be audited. Since you can add the cost of improvement receipts to document your capital gains formulations.
Be sure to keep up with changing tax laws and changing life situations (like a promotion, a baby or a divorce) that could impact your next purchase decision and tax return.
Preparation before your sale makes life afterward even more satisfying!