FSBO Post-Sale Checklist: What to Do After Closing

FSBO post-sale considerations. What you need to know after selling your home. So you sold your home on your own. Congratulations. But before you pop that champagne, there are some critical post-sale steps you need to take. If you skip these, you could run into unexpected issues with taxes, moving logistics, and even legal responsibilities. Stick around because I'm going to break it all down for you. All right, let's roll up our sleeves and get to work here. The first thing you need to do is finalize the sale legally. Just because you've agreed on a price and signed a contract doesn't mean the deal is fully closed. Here's what you need to do next. Number 1, work with a title company or attorney. If you haven't already, make sure all the necessary documents like the deed transfer, the mortgage payoff, if that's applicable, and the prorated property taxes are handled properly. Second, double-check the closing statement. Review the final settlement statement to ensure that all the agreed-upon terms, like closing costs and prorations, are accurate. Three, ensure all contingencies are cleared. If the buyer had contingencies such as a final walkthrough or repairs that came out of an inspection, you will need to confirm that they've been satisfied before closing. If you're curious about what all the contingencies that could be out there, check out my video where I get into all the different contingencies that can be a part of a real estate contract. All right, next is tax implications and financial responsibilities. Selling your own home means money in your pocket. But before you start spending, be aware of potential tax obligations. Capital gains tax is big. If you've made a profit on your home sale, you may have to pay capital gains tax unless you qualify for the IRS homeowner exclusion of $250,000 for single filers or $500,000 for married couples. If you want to know more about that exemption, you want to subscribe to the channel because I've got a video upcoming where I take a deeper dive into capital gains, its implications when you've resided in the home and when you haven't resided in the case of like investment property. Next, you need to consider escrow accounts. If you had a mortgage, you need to check with your lender to see if you have an escrow account balance that's outstanding that will need refunded to you. In other words, if you in your mortgage, you were getting your taxes and insurance escrowed as part of your total monthly payment, and then the bank was paying your homeowner's insurance and your property taxes on your behalf, you need to check and make sure that you're not due a refund on that. All right, next, property tax adjustments. Depending on when you sold, you might owe or be owed prorated property taxes. Be sure to square this away with the title company. The title company in our area really handles all of those tax prorations on behalf of the seller. All right, next, handling the move like a pro. Now you've sold the home, you've closed, it's time to move. But don't let the excitement cause you to overlook some key logistics. Number 1, scheduling a moving date. Coordinate with the buyer when they will take possession officially of the home and plan your move accordingly. This should be spelled out in your buy-sell agreement or your purchase agreement or offer to purchase. That original document. If it's not included there, that's an area that really should be right at the outset. When is possession going to transfer from the seller to the buyer? It's been, you know, it was usually standard that the day of closing possession changed hands. Over the last 5 or so years, when it's been a crazy seller's market, sellers have been able to get 30, 60 days after close to make their moving a little bit more convenient for the seller. We're starting to get back into a balanced market, so that's not as common in our area anymore. But that's something that you need to have clear communication on about when the possession of the property is going to change hands. Next, you need to think about forwarding your mail and utilities.. That's also something you need to communicate from as a seller. Make sure you coordinate the date of all the utilities— electric, gas, even sometimes garbage. Sometimes, uh, usually the title company, in the case of like a municipal water or sewer, the title company kind of handles that transfer. But the non-municipal utilities, you're going to need to coordinate between you, the seller, and the buyer, uh, to make sure that you're not paying their electric bill. As far As far as mailing goes, contact the United States Postal Service to set up mail forwarding and notify your utility companies to transfer or close the accounts. Again, you want to coordinate that with the buyer so there's no interruption of service to your buyer. That can be a really aggravating experience, and you want the transition to be smooth just because you want to be a good neighbor, a good seller, but also because good sense and not unnecessarily aggravating a buyer because you never know what other issues come up. So don't have issues stack up that can easily be avoided. All right, next, updating your address. Remember to update your address for banks, subscriptions, vehicle registration, and any other important accounts. What happens if the buyer contacts you after the sale with a problem? This happens, by the way, more than you think. But here's a way to handle it professionally. First, know your disclosure obligations. If you properly disclosed any known defects before closing, you should be legally protected. If you're curious about all of the obligations for sellers under the Michigan Sellers Disclosure Act and what that document actually looks like and how to fill it out, it can be a boring video, uh, to watch, but check out my video in the cards above. I've linked to it. I go through that entire document and explain, uh, what each item is and how to fill that document out properly. There are a few, uh, exceptions, but in almost every case, every seller, whether you use an agent or not, every seller in the state of Michigan is required to fill out a seller's disclosure statement disclosing all known defects the home. All right, next, keep records of the sale. Store all records related to the transaction in case any disputes arise. If necessary, consult a real estate attorney. If the buyer claims you misrepresented something related to the property, having an attorney review the situation can help protect you. In summary, selling your home on your own is a huge accomplishment,, but there are a lot of moving parts even after the sale is complete. If you want to make sure you cover everything, I've put together a free for sale by owner post-sale checklist. Just check the link in the description for that. And if you found this video helpful, make sure you like, subscribe, and check out my FSBO playlist for even more tips on selling your home successfully. Thanks so much for watching. I'm Sander Scott, your full-service realtor, where I roll up my sleeves every day to help my clients and all people when it relates to real estate. So please consider subscribing to the channel. Appreciate you. We'll see you in the next video.