Sell current home, use for down payment on next home
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Anonymous
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We're hoping to sell our current (and first) home for about $450k. After paying off the mortgage (250k balance), we'd like to use that 200k net as down payment on an upgrade to a home that is in the $700-800k range. How feasible/realistic is this?
Learned so much buying our first home... But it was only the beginning! |
Anonymous
| Not realistic, after taxes and the blood-sucking realtors your net will be a lot less. |
Anonymous
Can you elaborate? You mean taxes on any proceeds from the sale? Thanks! |
Anonymous
| Subtract 10% of $45,000 from the $450,000 sales price for Realtor Commission and miscellaneous other costs. You could spend less than that but to be realistic use the 10%. You could quite likely spend more than 10% also, low offers, buyer concessions, repairs |
Anonymous
| *Subtract 10% or $45,000* |
Anonymous
| Are the taxes on a home sale the same as sales tax? |
Anonymous
Just googled this...found this on the intuit/turbotax website: "If you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free. If you are married and file a joint return, the tax-free amount doubles to $500,000. The law lets you "exclude" this much otherwise taxable profit from your taxable income. ...If your profit exceeds the $250,000 or $500,000 limit, the excess is reported as a capital gain on Schedule D." |
Anonymous
very helpful, thank you. So from a tax perspective, it's 0 fed (unless over the 250K/500K threshold), then whatever the NCSL table says for state and muni.... |
Anonymous
| Redfin had a calculator for net in Virginia, DC and Maryland after taxes and fees |
Anonymous
| Your realtor should also give you an estimate of what you'll get after their fees and taxes based on different listing prices. This was helpful to us. |
Anonymous
Transfer & recordation taxes on the sale, not income taxes on the profit from the sale. |
Anonymous
| Shop around for realtors. Some of them will contribute part of their commission towards closing costs. Some may not tell you up front, but ask! |
Anonymous
It's totally doable and realistic. On a 800k home, 20% is 160k so even if you net less than 200k you are fine. We have put a contract on a 900k property and we put 300k down, in my mind our scenarios aren't too different. |
Anonymous
This. The PP who just signed a contract, I did my own research so realtor had very little to do, we asked for 1% rebate and we got it. We also got a 1% rebate from sale of our previous house. |