Do you have a property you want to sell? There are a few technical terms and details that you should know before you do so. This will prevent you from being fooled and avoiding unpleasant surprises.
Of course, we will not go over the importance of calling on a broker or a real estate agency to manage the transaction. This will greatly facilitate the process. As you are the seller, it will be up to you to pay the commission.
So remember to compare the offers before choosing your provider. An agency will also help you find the right price at which to sell your property. What will allow you to derive a good real estate capital gain?
On this return guaranteed by your property’s sale, here is some additional information that you should know.
What is real estate capital gain?
It is important beforehand to come back to the definition of what is a “real estate capital gain” before dwelling on the details concerning the latter. What are the calculation methods? How to increase it, and to what kind of transaction does it apply? There are still quite a few questions these days.
The practical and technical definition of real estate capital gain
Real estate capital gain is only the income you get from the sale of your property. Put simply, it’s the difference between the purchase price and the selling price of your property.
This is valid for all real estate transactions: sale of the apartment, main residence, house, or land. The returns from selling a title to a property can even be qualified as real estate capital gains.
How to calculate it?
However, the math is not that simple. There is the selling price and the corrected selling price. You have to differentiate between the two. To find your real estate capital gain, you must deduct upstream the costs of maintenance and operation of the property and the costs of acquiring it from the sale price. For information, the maintenance costs peak at 7.5% of the net asking price that you have drawn. The real estate capital gain will be the difference.
Also, note that the notary fees and the commissions of the real estate brokerage agencies are not to be deducted from the property’s sale price in question.
Besides, in the context of the sale of a property after a donation, you do not have to pay any acquisition costs. In other words, except for maintenance costs, the sale price of said property constitutes a taxable real estate capital gain.
Optimizing your real estate capital gain: how to do it?
The real estate capital gain varies depending on the property and the owners. Several details can impact the returns of a property. This can be, among others, the location, size, valuation, and proper maintenance, the DPE, and the result of other diagnoses, etc. It is possible to optimize your residence’s real estate value by having some work done, for example, or by increasing the living area in the latter.
The presentation techniques of said property can also impact its market value and, therefore, on your real estate capital gain. Photos and advertisements must be taken care of to attract more visitors and get a better price per m2.