Real Estate - Seller Considerations

  • A seller should have plans for moving to a new residence by the date of closing. If the seller must wait for construction or closing on another house, then the seller should consider a contract provision that delays closing until that time or allows the seller to continue occupancy as a tenant for a period of time after closing.
  • A common reason for a contract to fail is the inability of the buyer to obtain his/her loan. Therefore, it may not be prudent to delay the closing if it will cause the loan to be delayed. If the lack of financing or any other problem will cause the contract to fail, it is important to know this as soon as possible so the house can be offered to others.
  • A seller should understand the rules that allow non-recognition of gain for income tax purposes. Sellers should retain all records of improvements since these may be used to reduce the amount of taxable gain.