What to Do after You’ve Sold Your Investment Home

You’ve just closed the deal on your Investment home, and have handed it over to the new owners. You’re probably thinking that you’re done—there’s nothing else you need to be concerned about with the sale of your Investment home. If you think that, then you are completely wrong. Real estate selling experts will tell you that there is a veritable shopping list of things you need to do when selling an Investment home that will save you time, money and stress in the future. Their list of the top ten things to do once you’ve closed the deal is as follows:

  1. Keep copies of all the paperwork related to closing and settlement of your Investment home. Even though it might seem tempting to run the gargantuan stack of related paperwork through the shredder or put it into storage, you’ll need it come tax filing time. You will need this documentation for any expenses and proceeds related to the sale of your Investment home. You need to retain the paperwork also in case you are audited by the IRS.
  2. You need records of any improvements you have made to your Investment home. The IRS allows Investment home owners to add the cost of improvements that were done during the time you owned the property to your cost basis. This is especially nice if you have a large capital gain. But to qualify for this, you have to be able to show any receipts for everything you spent.
  3. Put the cash you made from the sale of your Investment home. This is especially recommended if you sell and then don’t turn around and immediately purchase another property, so that your money is in a safe place and can earn you a reasonable return rate. This way when you are ready to purchase another Investment home, you know you have plenty of funding to start the process.
  4. Keep your knowledge of tax laws up to date. There are different sets of tax laws regarding each type of real estate sale you are involved in, and the sale of an Investment home is generally different from the laws regarding the sale of a primary residence or rental property. Check with your local tax authorities to be sure what you can and cannot claim from the sale of an Investment home. If you don’t know, consult a real estate tax expert.
  5. Choose your next Investment home carefully. Don’t jump into buying another Investment home just because you have the funds to do so. Research different areas and find one that you think will make a wise investment.
  6. Don’t feel pressured into purchasing another Investment home by anybody, especially any realtor or friends and family. Keep in mind; the longer you have your money tucked away in a sound bank account, the more you will have to spend for your next Investment home.
  7. Evaluate your personal financial situation before you consider purchasing a new Investment home. There was obviously some reason as to why you are selling your current property. If you’ve had a financial change in your personal or business life, you may need to use the money from the sale of your Investment home to help with your cash flow instead of buying another piece of property.
  8. If you do decide to purchase a new Investment home, consider the realtor you will use to help you find it. Does the person who assisted you with the sale of your current property seem like a good fit to help you make another purchase? Buying and selling of Investment home properties often require different skills. Make sure the agent you choose can do the job correctly.
  9. Think about the down payment on your Investment home. Most residential real estate purchases require at least 20% down payment in order to get the best deal on a mortgage program. If you can afford more than the minimum 20%,to hen you want to make sure you can get a high enough return on the money you invest from the sale of your Investment home,.
  10. Do your research, purchasing and selling an Investment home is not a decision to be taken lightly or on the spur of the moment. Doing your homework ahead of time can make the selling of your Investment home go much more smoothly?