There are several ways to sell your home, from working with a real estate agent to doing a short sale or auction. However, not all methods are created equal.

Ultimately, the most important thing is to determine your home’s value. You can do this using free online valuation tools or consulting a local real estate agent.

Selling a home is a complicated process.

Selling a home isn’t easy, especially in a challenging real estate market. But it’s important to take a methodical approach and carefully consider all of the factors involved before you start the process. This way, you’ll be less likely to make a costly mistake that could derail the sale.

For example, if you’re selling your property and want to be certain that you’re meeting legal requirements, it might be a good idea to get legal advice from a provider law firm. They can help you understand contracts and other paperwork related to the sale and help ensure that everything goes smoothly. This is especially true if you’re dealing with complicated issues, like escrow or a long-term closing period.

You’ll need to hire a real estate agent.

A real estate agent can help you navigate the home selling process. They can make presale prep suggestions such as taking care of repairs that will likely turn up on a home inspection, decluttering and even home staging. They can also help you determine a fair market price for your home by using data on recent sales and comparable homes.

Interview potential agents and ask for references from previous clients. It’s important to find out if an agent is a good communicator both with you and with the other parties involved in a real estate transaction, such as your lender, inspector and attorney or escrow officer.

You’ll need to prepare your home.

It can be emotional to sell your home, especially if you bought it as an investment and built memories there. But if you want to make sure your house sells quickly and for top dollar, it’s important to do what you can to prepare it.

This includes cleaning and making minor repairs. Keeping your home clean and neat will make it more appealing to buyers.

You should also declutter and neutralize your space by removing personal items such as family photos, religious symbols, diplomas and certificates, hobby supplies, and collections. Buyers should be able to imagine themselves living in the house, and this can be difficult if it’s covered with your things.

You’ll need to get a home warranty.

Many real estate agents recommend getting a home warranty through Select to limit post-sale disputes. Your agent may even offer to purchase one on your behalf as an incentive to the buyer. It’s common for new homeowners to get a plan within 30 days of closing as it gives them peace of mind that appliances and systems will be covered if they break down. If you’re selling an older home, it’s a good idea to have your seller get a warranty as well since manufacturer warranties are usually expired. You’ll find the best home warranty companies by checking customer satisfaction and consumer complaints.

You’ll need to pay capital gains tax.

Capital gains tax applies when you sell an asset for more than it cost. The IRS taxes these profits at a rate that’s usually lower than ordinary income tax rates.

The amount of profit you have to pay depends on the duration of ownership and the appreciation in the property’s value. You may be able to exclude some of the profit from capital gains tax if the home was your primary residence for two of the five years preceding the sale.

Keep records of the purchase and sale of your home, along with receipts for any non-decorative investments you made in it. This will help you determine your adjusted basis.