Home Inspections, Repairs and Renovations
This number varies the most and can range from hundreds to thousands of dollars depending on the age and state of the home and the sellers’ target sale price. The national average for what sellers spend on renovations is around 5% of the sale price, and there’s a lot of debate about which updates are worth making. If you have items come up on inspections that could potentially ruin a sale, but require a big investment from your client—maybe the roof needs to be replaced, or the HVAC is past its prime—Curbio can help. We’ll repair/replace anything that’s preventing the home from being sold—and your sellers won’t pay a dime for the work until closing.
Most homeowners still owe money on their mortgage when they sell, and the funds from the sale will largely go towards paying off the remaining balance. In most situations, the proceeds from the sale will cover the remaining balance but depending on the seller’s situation and how their home has accrued or lost value since their initial purchase, the situation may be more complicated. To help your seller navigate through the process, first advise them to get a payoff amount from their lender. This will be the best way to get an accurate estimate of how much they still owe on their mortgage, and will help you determine what the sale price needs to be in order to cover the payoff amount. If the seller doesn’t have enough equity to pay off the mortgage at the point of sale, they will need to bring the difference to the closing table or consider a short sale.
Taxes are never fun, and taxes related to home sales are no exception. When a seller sells for a profit, that amount may fall under capital gains and need to be reported when your client files. Fortunately, homeowners are eligible to claim up to $250,000 in profit ($500,000 if filing jointly) if their main home from tax.
The other tax to keep in mind is property tax. Property taxes are typically paid in advance, but the seller will still be on the hook until the closing date, so ensure that they are aware of the need to budget for this.