How Selling Works, Part 10: After the Keys
What Sellers Forget About Once the Sale Is Done
In the previous post, we walked through everything that happens between an accepted contract and closing day. The contingency deadlines, the underwriting, the title work, the final walkthrough, all of it.
So let's say you're through that too. You signed at the title company. The deed recorded with Whatcom County. Your proceeds (money!) hit your account.
Done, right?
Mostly. But not entirely.
After more than a thousand closings, I can tell you the sale itself isn't where this ends for most sellers. A handful of loose ends usually surface weeks or months later, and almost nobody sees them coming because nobody warned them ahead of time.
So let's close the loop.
The Tax Question Nobody Asks Until April
If you owned and lived in the home as your primary residence for at least two of the last five years, you can likely exclude up to $250,000 of gain if you're single, or $500,000 if you're married filing jointly, under IRS Section 121.
For a lot of sellers in this market, that covers the whole gain. No tax owed, no drama.
But "likely" isn't "certainly," and this is where I stop giving advice, because I'm not a CPA and you shouldn't take tax guidance from your real estate agent, no matter how many houses he's sold.
What I will tell you: if your title company issues a 1099-S, that form goes to the IRS too, not just to you. Your settlement statement is (part of) what your accountant will use to establish your cost basis and your selling expenses.
Improvements that increase the value of the home for the new owner (versus maintenance and simple repairs) that you made over the years count toward that total basis, so if you kept receipts for that kitchen remodel or the new roof, dig them out now while you still remember where they are.
Talk to a tax professional before you file, not after you get a letter from the IRS asking why a chunk of income didn't show up on your return.
Prorations You Might Still Owe, or Still Be Owed
Washington property taxes are paid in arrears, in two installments, due in April and October. At closing, you and the buyer split the current period based on how many days each of you owned the home.
Most of the time that proration is final and clean. Occasionally, if the County reassesses the property or a tax bill comes in different than estimated at closing, there's a small adjustment afterward.
Same goes for HOA dues, if your neighborhood has one. Don't be surprised by a small invoice or a small refund check landing in your mailbox two or three months later. It's normal, not a mistake.
Utilities, Subscriptions, and the Things Tied to the House
Water, power, gas, internet. You closed those accounts, or you meant to.
But what about the things that are easy to forget? A monitored security system. A smart irrigation controller tied to your old email. Ring cameras. A subscription lawn service billed quarterly instead of monthly.
Make a list before closing, not after, of everything tied to that address and that account. I've had sellers get billed for a security monitoring contract four months after they moved out, simply because nobody thought to call and cancel it.
Insurance Doesn't Cancel Itself
Your homeowner's insurance policy doesn't (necessarily) automatically end the day you sell. Call your agent, confirm the cancellation date matches your closing date, and ask about any refund on unused premium.
If you're moving into a new home right away, this is also the moment to make sure your new coverage actually started, not just quoted. I'd rather you double check this than find out you had a gap.
Mail Keeps Coming to That Address for Months
A mail forward with USPS helps, but it isn't permanent and it doesn't catch everything.
Banks, the DOL, your dentist's office, the county assessor, they all update on their own timeline, not yours.
Update your address directly with anyone who sends you anything that matters. It's tedious. It's also the difference between finding out your new property tax bill went to a stranger's mailbox instead of yours.
If You Still Owe the Buyer Something
Some deals close with an agreement still hanging out there. A repair the seller promised to finish. A rent-back arrangement where you stay a few extra days after closing and pay the buyer for the privilege.
If that's you, put a date on your calendar and treat it the same way you treated your closing deadlines. The sale being done doesn't mean your obligations are done. Buyers remember, and in a market where everybody eventually needs a referral or a favor, finishing what you promised is worth more than the hassle it takes.
Final Thoughts
This is the part of a sale nobody throws a party for. There's no signing table, no handshake, no champagne. Just a slow trickle of small tasks that close out over the following weeks and months.
Handle them the same way you handled everything else in this process: a little bit at a time, before they turn into a problem instead of after.
That wraps up How Selling Works.
Ten parts, start to finish, from getting your home ready to list all the way through what happens after you've handed over the keys.
If you've been following along, thank you for sticking with me through all of it.
I'll be back here soon with something new.
If you’ve made a decision and are ready to take action on selling your property, give me a call, and LET’S MAKE YOUR MOVE!
Brandon Nelson, I'm a real estate agent at Compass Bellingham in Fairhaven. I love sharing real estate knowledge and my life adventures with my wife, kids, and pups.
