By Justin Liva, Mojo House BuyersMoving is stressful enough when you only have to pack. Selling the house you're leaving at the same time adds a second deadline on top of the first. A new job may have a start date. A new condo or apartment may have a move-in day. Grown kids may be pushing you to downsize before another winter of shoveling a long driveway.
The common thread is timing. This guide covers how to line up the sale with the move, what to do with years of belongings, and the tax wrinkle that catches people who leave New Jersey.
Start with the date that can't move
Every move has one date that's fixed. It might be the first day at a new job in another state, the closing on your next home, or the day a lease starts. Work backward from it.
With a listing, your date can depend on things you don't control, like how long it takes to find a buyer and that buyer's inspection, financing and schedule. If your fixed date is far off, a listing may fit comfortably. If it's close, or if you can't afford to carry two homes for long, the uncertainty is the real cost.
When I buy a house, I close on the seller's timeline. That might mean closing quickly so you have cash for the next place, or it might mean waiting until after your move. You pick the date that works with your fixed date, and I don't rush anyone into signing. For what controls how fast any New Jersey sale can close, see how fast you can sell a house in New Jersey.
Buy first or sell first
It's worth settling this one early, and there's no single right answer.
Selling first frees up your equity and removes the risk of paying for two houses. The downside is you may need short-term housing if the timing doesn't line up perfectly.
Buying first lets you move once and settle in before the old house is empty. The downside is carrying both, and depending on the sale of the old house to cover the new one.
A sale with a closing date you choose can split the difference. You know exactly when the money arrives and can plan the next purchase or lease around it.
A lifetime of belongings
Downsizing can mean fitting decades of life into fewer rooms. That's emotional work, and it can take longer than you'd planned. Listing the house can mean decluttering and keeping it ready for showings while you're still deciding what to keep.
I buy houses as-is. You take what matters to you and give what you want to family. Anything you don't want can stay behind, because I handle the cleanout after the sale. I buy condos too, so the same goes if the place you're leaving is a condo rather than a house.
Repairs you'd rather not take on
If you've been in the house a long time, it may need updates that you don't want to fund on your way out: an old roof, a dated kitchen, a heating system near the end of its life. You can do the work and list, or sell as-is and let the buyer take it on. Our guide to selling a house that needs repairs compares the two.
To be fair to yourself, get a sense of both numbers. If your house is in good shape and you have time, listing with an agent will usually net more, and I'll tell you that. The agent vs. cash buyer guide shows how to compare them on what you actually keep.
If you're leaving New Jersey
Plan for this part early. The New Jersey Division of Taxation says in its guide to buying or selling a home that residents who sell their New Jersey home and move out of state are considered nonresidents for the purpose of the sale. Nonresident sellers generally have to make an estimated income tax payment at closing.
According to the Division's GIT/REP FAQ, that payment is the gain on the sale multiplied by the highest Gross Income Tax rate, 10.75%, but it can't be less than 2% of the total consideration in the deed. There are exemptions listed on the GIT/REP-3 form, and the Division's guide notes that one of the common ones is a nonresident seller claiming the principal residence exclusion.
The Division's guide explains that if you owned the home and lived in it as your main residence for at least two of the five years before the sale, and meet the other tests, you may be able to exclude up to $250,000 of gain, or up to $500,000 for a married couple filing jointly.
The details depend on your situation, so have your accountant look at it before closing, not after. The nonresident seller guide has more on the forms.
A simple plan
- Write down your fixed date and work backward.
- Get an agent's estimate and a cash offer, and compare what you'd net from each.
- Decide what you're taking, what goes to family, and what stays.
- Talk to your accountant about the tax side, especially if you're leaving the state.
- Choose a closing date that fits the move, not the other way around.
Asking for my offer costs nothing and doesn't commit you. If you'd like to see what a direct sale would look like next to a listing, request a cash offer or learn more about how I buy houses.