Be Aware About Money When Selling a House

If you’re thinking of selling a home, be careful about “money.” I think there is a strong image that “money comes in” when selling a house, but unexpectedly, “money going out” can also be large. This time, I will explain in detail the “money” that you should know when selling a house, such as the timing of deposit, payment to a real estate agent, and various expenses.

When will I get the money to sell my house?

Many people will pay the mortgage loan balance with the money they sell their home.

In that case, it is necessary to think about the three things of “sale of the house”, “receipt of the sale price”, and “mortgage”. Therefore, the seller needs to have a good discussion not only with the purchaser but also with the financial institution that is borrowing the mortgage.

Payments for the sale of a home are generally made in two installments.

The first payment is made when the seller (owner) and the prospective purchaser conclude a sales contract. Generally, the purchaser pays the seller 5 to 20% of the sale price as a deposit.

This deposit has the meaning of “prepayment” because it becomes a part of the sale price, but there are other important functions in the deposit.

It is a function that allows the purchaser to cancel the contract by letting go of the deposit when he / she decides not to buy after the sales contract. In other words, the seller can get 5 to 20% of the planned sale price without giving the house to the prospective buyer. However, instead, the seller has to find a new purchaser. In that sense, the deposit in this case can be called a “nuisance fee”.

Also, if the seller decides not to sell after the sales contract, the contract can be canceled by first returning the deposit obtained from the purchase applicant and then paying the same amount of money as the deposit to the purchase applicant. increase. In other words, when canceling from the seller after the sales contract, twice the deposit will be paid to the purchase applicant.

If the seller’s feelings and the purchase applicant’s feelings do not change and it is officially decided to buy or sell, the second sale price of the house will be paid. The second timing is when the house is handed over. The purchase applicant pays the seller the full amount of the balance excluding the deposit.

The amount of the first and second payments can be decided through discussions between the seller and the prospective purchaser. Sellers should keep in mind that if the deposit amount is too low, it will be easier for prospective buyers to cancel.

And the seller should make sure to confirm the financial plan of the prospective purchaser. Ask the prospective purchaser to indicate in writing where to raise the purchase funds.

How much do you pay to a real estate agent?

If you use a real estate agent when selling a home, the seller has to pay a commission to the agent.

The fee can be freely decided by the real estate agent, but the upper limit is set by law, and it is calculated by the amount “transaction price x 3% + 60,000 yen”. For example, if the transaction price reaches 20 million yen, the seller will pay the real estate agent up to 660,000 yen (= 20-million-yen x 3% + 60,000 yen).

How much do the expenses cost?

For the sale of a house, “stamp duty”, “mortgage cancellation registration fee”, “registration license tax”, “request fee to a scrivener”, “transfer income tax”, “house dismantling fee”, “waste disposal fee”, “moving fee” It costs various expenses such as.

Stamp duty is a tax required at the time of sales contract. By purchasing a stamp and pasting it on the contract, you have paid the tax.

Stamp duty is 500 yen if the transaction price is 1 million yen or less, 1,000 yen if it is 5 million yen or less, 5,000 yen if it is 10 million yen or less, and 10,000 yen if it is 50 million yen or less.

Two sales contracts will be created, so if you sell for 30 million yen, you will need 20,000 yen (= 10,000-yen x 2 sheets).

If the house you are selling has a mortgage loan balance and you pay off the balance before you sell it, you will incur a mortgage cancellation registration fee. Repayment of the remaining debt means the cancellation of the mortgage, so you must register that the mortgage has been canceled.

A registration license tax is required to cancel the mortgage, which costs 2,000 yen. Furthermore, if you ask a scrivener to cancel the mortgage, it will cost about 10,000 yen.

In addition, if you sell a house and make a profit (capital gains), you will be charged a tax called capital gains tax.

Capital gains are calculated using the following formula.

  • Capital gains = transaction price- (acquisition cost + transfer cost) -special deduction amount If you sell your own home, the special deduction amount will be 30 million yen. Applying the above formula, it becomes like this.
  • Capital gains = transaction price- (acquisition cost + transfer cost) -30 million yen in other words, if “transaction price- (acquisition cost + transfer cost)” is 30 million yen or less, the transfer income will be “minus” and the transfer will be made. There is no income tax. “Whether or not there is a tax” depends not only on the transaction price but also on the acquisition cost and transfer cost. In that sense, “acquisition costs and transfer costs” can be said to contribute to tax savings.

Summary

Keep in mind that selling a home is “unexpectedly expensive”. In addition to the fees and overheads introduced above, if you have a lot of mortgage debt, you may need to prepare your own funds separately.

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