SOLD! WHAT NOW?
SOLD!! A big sigh of relief! Weeks of showcasing your home to perfection for prospective buyers are finally over and you feel like a Caribbean cruise is now well-deserved. The truth is, that unless you attend to a few basic tasks now that the SOLD sign is finally outside, further stress is on the way. Be proactive and consider the following matters.
1. What must I do with the money? For many people, a daunting task is to decide what to do with the proceeds of the sale. This could be a tricky one if you have not yet bought another property. If one has a large sum of money lying around idle, one could be tempted to spend it on 'wants' or put it in high-risk investments. Speak to a financial advisor or place it in a good money market fund. Be sure that the funds will be available when you are ready to proceed with buying your next home.
2. Papers, papers everywhere! It is important to keep all the documents, statements, and invoices pertaining to the sale and maintenance of your property together in one place. You will need these for income tax purposes and possible Capital Gains Taxes. Put all documents in a file and scan them as some ink might fade over time. Store these in a cloud solution. Even if filing is not your strong point, store the papers in one box - but keep them safe!
3. Where to next? Carefully consider your next move. Do not rush into buying your next home without being sure that the neighbourhood will be best suited to the needs of your family. Rather rent for a short while to suss out the environment and amenities properly. When you find a place that steals your heart proceed with care, keeping in mind the amount you can afford as a deposit and the resultant monthly payments. Your trusted Property Professional and Mortgage Originator are the best to advise you.
4. A new address! Utilise the few months it takes to register the property in the new owner's name to carefully compile a list of places where your residential address is on record and change your address as soon as you have a new place to go. You only want to do this in the final month before your move.
5. Be safe! It is imperative to ensure that your Homeowner's Insurance policy stays valid until the next owner takes possession of the property; that means until the date of transfer. Too often sellers cancel their insurance prematurely and land up having to pay for damages to the property incurred after they vacated the property.
6. Prevent disputes. Should your buyer take early occupation he will be liable to pay for services used. Take a photo of the water and electricity meter readings on the date you vacate the property. You have evidence of consumption, and the pro-rata calculation of the usage will be hassle-free. For peace of mind also double-check at the local council that the rates, taxes, electricity, water, and services are no longer in your name.
7. Cancel subscriptions and service contracts. Some services are specifically linked to your home and must therefore be terminated. These could include the alarm response, gardening services, and pool services.
8. Pass it on! The buyer will be thrilled to receive manuals and warranties for appliances, and even a list of contractors and services that you used.
9. The BIG move! Moving is rated as one of the most stressful things in life. The trick is to start planning early and steadily working towards it in the months before the big day. Tackle the house room-by-room and establish what you want to keep and what not. Sell or donate the unwanted items as you go along to ensure that you don't move with them. Once you have trimmed down your belongings it will become much easier to give the removal company an accurate list which will result in a lower quotation. The moving costs might come as a shock to you, so be sure to budget for it in advance, and also to get several quotations.
Selling your home and moving are emotionally draining, but you can make it easier by proper planning and taking care of the precautionary measures set out above. Relax, and allow yourself and your family the opportunity to be excited about moving to the next place they will call "Home".
23 Apr 2022
Author Adrie Barnard