What You’ll Net at
Closing
10 Ways to Make Your House More
Salable
1. Get rid of clutter. Throw out or file stacks of
newspapers and magazines. Pack away most of your small
decorative items. Store out-of-season clothing to make
closets seem roomier. Clean out the garage.
2. Wash your windows and screens to let more light
into the interior.
3. Keep everything extra clean. Wash fingerprints
from light switch plates. Mop and wax floors. Clean the
stove and refrigerator. A clean house makes a better
first impression and convinces buyers that the home has
been well cared for.
4. Get rid of smells. Clean carpeting and drapes to
eliminate cooking odors, smoke, and pet smells. Open
the windows.
5. Put higher wattage bulbs in light sockets to make
rooms seem brighter, especially basements and other
dark rooms. Replace any burnt-out bulbs.
6. Make minor repairs that can create a bad
impression. Small problems, such as sticky doors, torn
screens, cracked caulking, or a dripping faucet, may
seem trivial, but they’ll give buyers the impression
that the house isn’t well maintained.
7. Tidy your yard. Cut the grass, rake the leaves,
trim the bushes, and edge the walks. Put a pot or two
of bright flowers near the entryway.
8. Patch holes in your driveway and reapply sealant,
if applicable.
9. Clean your gutters.
10. Polish your front doorknob and door numbers.
Reprinted from REALTOR® Magazine
Online by permission of the NATIONAL ASSOCIATION OF
REALTORS®Copyright 2005. All rights reserved.
www.REALTOR.org/realtor
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20
Low-Cost Ways to Spruce Up Your
Home
Make your home more
appealing for potential buyers with
these quick and easy tips.
1. Trim bushes so
they don’t block windows and cut down
on light.
2. Buy a new
doormat.
3. Put a pot of
bright flowers (or a small evergreen in
winter) on your porch.
4. Put new doorknobs
on your doors.
5. Put a fresh
coating on your driveway.
6. Edge the grass
around walks and trees.
7. Keep your garden
tools out of site.
8. Be sure kids put
away their toys.
9. Buy a new
mailbox.
10. Upgrade the
outside lighting.
11. Use warm,
incandescent light bulbs for a homey
feel.
12. Polish or replace
your house numbers.
13. Clean your
gutters.
14. Put out potpourri
or burn scented candles.
15. Buy new pillows
for the sofa.
16. Buy a flowering
plant and put it in a window you pass
by frequently.
17. Make a
centerpiece for your table with fruit
or artificial flowers.
18. Replace heavy
curtains with sheer ones that let in
more light.
19. Buy new
towels.
20. Put a seasonal
wreath on your door.
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Reprinted from REALTOR® Magazine
Online by permission of the NATIONAL ASSOCIATION OF
REALTORS®Copyright 2005. All rights reserved.
www.REALTOR.org/realtor
Understanding Capital Gains in Real Estate
When you sell a stock, you owe taxes on your
gain-the difference between what you paid for the stock
and what you sold it for. The same is true with selling
a home (or a second home), but there are some special
considerations.
How to Calculate Gain In real estate, capital gains
are based not on what you paid for the home, but on its
adjusted cost basis.
To calculate this:
1. Take the purchase price of the home: This is the
sale price, not the amount of money you actually
contributed at closing.
2. Add adjustments:
- Cost of the purchase-including transfer fees,
attorney fees, inspections, but not points you paid
on your mortgage.
- Cost of sale-including inspections, attorney’s
fee, real estate commission, and money you spent to
fix up your home just prior to sale.
- Cost of improvements-including room additions,
deck, etc. Note here that improvements do not
include repairing or replacing something already
there, such as putting on a new roof or buying a
new furnace.
3. The total of this is the adjusted cost basis of
your home.
4. Subtract this adjusted cost basis from the amount
you sell your home for.
This is your capital gain. A Special Real Estate
Exemption for Capital Gains Since 1997, up to $250,000
in capital gains ($500,000 for a married couple) on the
sale of a home is exempt from taxation if you meet the
following criteria: You have lived in the home as your
principal residence for two out of the last five years.
You have not sold or exchanged another home during the
two years preceding the sale. Also note that as of
2003, you also may qualify for this exemption if you
meet what the IRS calls “unforeseen circumstances,”
such as job loss, divorce, or family medical
emergency.
Reprinted from REALTOR® Magazine
Online by permission of the NATIONAL ASSOCIATION OF
REALTORS®Copyright 2005. All rights reserved.
www.REALTOR.org/realtor
What You’ll Net at
Closing
To find out how much money you’ll net from your
house, add up your closing costs and subtract them from
the sale price of the house.
Closing Costs for Sellers Mortgage payoff and
outstanding interest Prorations for real estate
taxes
Prorations for utility bills, condo dues, and other
items paid in arrears
Closing fees charged by closing specialist
Title policy fees
Attorney’s fees
Survey charge
Transfer tax or other government registration
fees
Brokerage commission
Total
Reprinted from REALTOR® Magazine
Online by permission of the NATIONAL ASSOCIATION OF
REALTORS®Copyright 2005. All rights reserved.
www.REALTOR.org/realtor
