Can I Sell My Duplex for Cash
The rise of many duplex houses has been doing well in the past 10 years according to studies. If you own a duplex house and want to sell it for cash, the simple answer is yes. You can sell your duplex for cash as there will always be people looking for houses like this. However, how you sell it plays an important role in your success. So if you want to sell your house for cash, you must follow these tips to secure profits from your property.
Selling Your Duplex the Right Way
Selling a duplex is pretty possible but it may take a lot of time. These days, more people are looking for bigger homes to house families. However, your duplex will do well for many singles who are looking for something small. Still, this gives you a good chance of selling your place for cash and with a of effort you can make some changes that will help you sell quickly. Don’t worry, these changes don’t really need to be costly and some of them can be done by you. All in all, these changes can play a big role in bringing in a potential buyer. Here’s what you need to know:
- Put the right price – when it comes to selling a house, the price you put will determine if you can sell the house or not. Keep in mind that a property that is overpriced can turn off inquiries and offers. So when it comes to pricing your duplex, always compare it with the prices of other properties in your area. Doing this will give you a much realistic idea on how much you can expect your duplex to sell for. If you are in a hurry to sell, the trick is to drop your price below the market value and sell it for cash. You must also be flexible in case someone offers you something solid. Always consider it if it is something close to your actual asking price.
- Repairs can help – duplex is a small house so anything broken can be easily repaired. New buyers will appreciate a well-kept and fully functioning house even if it is as small as a duplex. Make sure that you have checked the that toilets are in good condition, sinks are not clogged and showers are working. Check if the faucets are leaking and in need of replacement. Doors that are not properly attached to its hinges must also be fixed. If you have fading wall paint, refresh it by repainting it or changing it with a different color. Seal cracks on the floors or walls if you can find one, remove light bulbs that are not working any longer and replace them with new ones. All of these things are pretty simple, so you might as well get it fixed. Not only will it make the new owner happy but it will also increase the value of your house especially if you are looking forward to selling it in cash.
- Pay attention to appearance – usually, buyers will take a look at a house when it is visually appealing to them. That being said, making your duplex house look more presentable to potential buyers is a good idea. All you need to do is to make sure that the front lawn is well trimmed, neatly maintained and that you have mowed the lawn. Plant flowers if you must and remove all the junk in front of your house. Pay attention to the backyard too; if it is messy, you must do some decluttering. If the house needs to be painted outside, do so. Stage the house as well; this will help your quick sale. Let potential buyers imagine themselves living in your house. Besides arranging the house for your buyers, you must also add scent to the house. If you still live in the house, you can bake some cookies when buyers come around to visit. This will give a more homey aroma that could help the buyers. If you don’t want to bake, make sure to have fresh flowers in the house to freshen up the rooms. Air fresheners can help too but don’t overdo it.
- Make use of a specialist – a real estate professional is the BEST person to work with when it comes to selling a duplex. They are familiar with your area as well as selling duplexes. Keep in mind that the process for selling a duplex is not the same as a single-family house. Experienced real estate agents can do wonders with this as they know who are the interested buyers, understand how the market works and can help you get the quick sale of your property.
Taxes on Selling a Duplex House
Yes, you can sell a duplex for cash but it also presents a few types of taxes that needs to be paid. If you are occupying both sides of a duplex, you can pay a single residence tax even if you sell them to two different people.
Renting both sides of the property is considered as an investment property but if you only live on one side of the property and have the other rented then it basically are two different properties when you are going to pay taxes on sale. This would be treated as a half residential, half rental property.
Regardless of how this duplex is used, you will still pay taxes the moment it is sold. This is called transfer taxes which is collected during closing. The amount of the tax you pay will depend on the location of the property. If by chance you are selling a residential duplex, you will be subjected to a federal capital gains taxes and depending on which state you are living in, you will also pay an income tax on the selling price.
Selling a rental property requires you to pay capital gains taxes but if you sold it at a break-even or more, you will pay tax on depreciation recapture. If you sell the duplex at a loss, you pay federal and state recapture tax on the basis of the difference between your depreciated cost and selling price.
Selling a duplex is doable but it will come with taxes. In order to understand how these things work, best to work with a real estate agent and a lawyer to back you up on the paperwork. This way you don’t get lost on the terms and important matters regarding your sale.