The sale of your home is officially complete once all closing documents are signed, all funds have been disbursed, and the transferred deed is officially recorded. But this isn’t the end of the road—it’s more like the home stretch. So what happens after you sell your house?
In this article, we’ll talk about what to do when you sell your house, including what records to update, how to manage profits, and what loose ends you may need to pay attention to.
Of course, if you haven't already, you’ll also need to find a new place to live. You’ll want to connect with a local buyer’s agent who can help you navigate the process quickly and seamlessly.
But what about the overwhelming task of searching for a buyer’s agent? Not a problem: Just answer a couple of questions, and we’ll help you cut through the noise by sending a list of top-rated, local buyer’s agents straight to your inbox.
What to do when you sell your house: Next steps after closing
1. Save your home sale documents
After closing — before you do anything else — be sure to save both physical and digital copies of your most important documents.
First, take a minute to scan all the documents by using a scanning app on your phone or tablet.
Next, email those documents to yourself. You’ll also want to upload them to your computer, at least one other external hard drive, and the secure cloud storage service of your choice. To keep your information safe, follow best practices regarding passwords and cloud storage.
Once you’re finished scanning your documents, store them in a fireproof folder or safe.
Documents to keep include:
- Closing disclosure: outlines your net proceeds after fees and expenses
- Final settlement statement (ALTA): breaks down all closing costs
- Deed and proof of transfer: shows you no longer own the property
- 1099-S tax form (if applicable): issued if your sale exceeds IRS thresholds
- Affidavit of title and any seller disclosures: may be needed in the future
Keeping this paperwork organized and accessible helps in case of a tax audit, future home purchase, or legal dispute. You’ll also need them when it comes time to do your taxes.
2. Talk to a tax advisor
Once in a while, a seller (who didn’t visit a tax advisor after the sale) will be met with a costly surprise come tax time, especially if they’ve made a particularly significant profit on the sale of their house. The good news is that this isn’t common, but it’s also not worth leaving it up to chance.
Typically, what happens after you sell your house is you’ll receive a large sum of money that you may or may not owe taxes on. That’s why it’s so important to consult a tax advisor. They’ll let you know if you owe anything (called capital gains taxes) or if you qualify for any money-saving exclusions.
Additionally, a tax advisor will help make sure you file your taxes appropriately.
It’s important to note:
- If the house was your primary residence for at least two of the last five years, you may be able to exclude up to $250,000 in gains (or $500,000 for married couples)
- Even if no tax is owed, the sale must still be reported on your return
- A professional can help calculate capital gains, account for any deductible expenses, and assist with timing for reinvestment if needed
While you should visit a tax advisor after selling your home regardless, this step is especially important if you sold your home for a significant gain or under complex circumstances.
3. Decide what to do with your profit from selling your house
Knowing what happens after you sell your house can have a major impact on your financial future. Despite how much it costs to sell your home, most sellers are still going to walk away with a moderate to large sum of money. Of course that can feel exciting, but it’s important to be smart with it.
Before spending anything, take a moment to get a clear picture of your total profit. Use a net proceeds calculator to estimate how much you’ve actually earned after subtracting your mortgage payoff, closing costs, agent commissions, and taxes. Knowing that number upfront can help you avoid overspending or underestimating what you can afford next.
Once you know how much you’re working with, think about your priorities. Are you buying another house? Paying off debt? Taking time to decide? No matter your plans, it’s wise to park your funds in a high-yield savings account until you’re ready.
If your sale brought in a large profit or you’re unsure what to do next, a financial advisor can help you make the most of your money through smart investing, planning, or saving for retirement.
Here's a short list of what to do with your profit:
- Estimate your true earnings: Use a net proceeds calculator to know what you really made.
- Use a high-yield savings account: Keep your money safe and accessible while earning interest.
- Talk to a financial advisor: Get expert guidance on investing, saving, or paying off debt.
- Set aside money for your next home: Cover your down payment, closing costs, and moving expenses.
Planning ahead ensures your profit from selling your house supports your long-term goals, not just your short-term wants.
4. Start the process of looking for a new home (if you haven’t already)
The process of searching for a new home after you’ve already closed on the sale of your old one can be stressful, but it’s not uncommon. Unless your home’s buyer has agreed to give you time to find a new home before they take possession, you’ll first want to secure temporary living either in a short-term rental or with friends or family.
(Tip: If you’re concerned about needing time to buy a new home after the sale of your current one, talk to your listing agent. Often, they can negotiate with the buyer’s agent to delay possession after closing. In other words, your buyer may officially own your home now, but they’re not actually allowed to live in it until you’ve found a new home for yourself and can move out.)
Here are a few next steps to keep the process moving:
- Review your finances: Decide whether you’ll be paying cash or financing your next home with a mortgage.
Connect with a mortgage lender: A lender can help you determine how much house you can afford based on your income and available down payment. - Find an experienced buyer’s agent: A good agent will guide you through your search, negotiate on your behalf, and make sure the closing process goes smoothly.
Having just sold your home, you may feel confident that you already know how to buy a house. But the real estate market is always in flux. A buyer’s agent can help you prepare for and navigate any surprises.
5. Update your address
This might feel like a tedious step, but it’s actually very important. It’s not uncommon that people move, only to miss important pieces of mail like bills or even updated credit cards, because they assumed changing their address with USPS was all they needed to do.
While you will definitely need to visit USPS online ASAP in order to start getting your mail forwarded to your new address, be aware: forwarding only lasts 12 months, and only 60 days for magazines and periodicals.
After you’ve requested mail forwarding, you’ll still want to go in and manually change your address with varying institutions and businesses.
Some of those may include:
- Department of Motor Vehicles (DMV)
- Internal Revenue Service (IRS)
- Social Security Administration (SSA)
- Voter registration office
- Your employer and payroll provider
- Banks and credit unions
- Credit card companies
- Insurance providers (home, auto, health, life)
- Utility providers (gas, electric, water, internet, phone)
- Healthcare providers and health insurance
- Subscriptions (magazines, meal kits, streaming services)
- Loyalty programs and online shopping accounts (Amazon, Target, etc.)
Being lax about changing your address can have several consequences, such as impacts on your credit score due to missed bills or even identity theft. Prioritize this step, and you’ll be ready for your next chapter.
6. Transfer or cancel utilities
Once your home sale is complete, make sure you transfer or cancel all utilities connected to the property. Overlooking this step can lead to overcharges, unpaid bills, or services continuing in your name.
It could also cause issues with the new homeowner’s attempt to obtain utility services in their own name, so be sure to tackle this quickly, ideally within a week of the buyer taking possession.
- Notify utility providers: Contact your electric, gas, water, sewer, trash, and internet companies to inform them of your move-out date.
- Submit final meter readings, if needed: Provide readings where applicable and schedule shut-offs or ownership transfers.
- Pay final bills: Request final statements, settle outstanding balances, and avoid late fees.
- Keep confirmation numbers: Save written verification or account closure numbers in case of future disputes.
If you’re moving into a new home, don’t forget to schedule service activation there in advance so you’re not left without water, electricity, or internet on move-in day.
Note: Internet providers sometimes require at least a week or two of advance notice to schedule installation, so be sure to contact them as early as possible to avoid delays.
7. Update homeowners insurance
After closing, contact your homeowners insurance provider to cancel or transfer your policy. Just be aware that canceling too soon could leave you unprotected, while forgetting to cancel could mean paying for coverage on a home you no longer own.
- Cancel your current policy: Ensure the cancellation date aligns with your move-out or closing date.
- Request a premium refund if applicable: If you pre-paid for annual coverage and are moving out before the year is over, you’re probably owed a refund.
- Start a new policy: If you’re purchasing and moving into a new home, make sure your new homeowners policy begins before your move-in date.
If you're not moving into another property right away, ask about temporary coverage options for your rental or any period where your belongings are in transition. You may need a short-term renters or vacant home policy to stay protected.
This is also a great time to review your current coverage levels and shop for better rates. Comparing quotes for your new home could help you save money or upgrade your coverage without spending more. Making these updates promptly helps you avoid lapses and ensures you're protected for whatever comes next.
8. Double-check your mortgage payoff and escrow
Even after closing, it’s important to confirm your mortgage was fully paid off and closed out properly. Just because the sale is complete doesn’t mean every detail has been finalized. Mistakes or delays on your lender’s end can still cause problems later.
Start by contacting your lender within about 30 days to make sure your mortgage account shows a zero balance. You’ll also want to confirm that the mortgage lien has been released and recorded with your local county. If it hasn’t, it could delay future real estate transactions or affect your ability to secure new financing.
Also check whether you’re owed an escrow refund. If your lender collected money for taxes or insurance and there’s a leftover balance, that money should come back to you, but it doesn’t always happen automatically. Keep an eye out, and follow up if needed.
- Confirm your mortgage balance is zero: Once in a while, someone gets the numbers wrong and the mortgage is left with a balance, so call and make sure yours is totally paid off.
- Check the lien release: They should be able to tell you if it’s been recorded with your county yet. If it isn’t, it could cause issues when buying a new home.
- Ask about your escrow refund: You may be owed money for prepaid taxes or insurance.
- Follow up on missing paperwork: Don’t wait. Resolve loose ends right away.
Being thorough now can prevent billing surprises, credit errors, or delays down the road.
9. Cancel or transfer home services
Imagine: A pest control company shows up to perform their quarterly service, but you — the home’s new owner — never scheduled this service, nor is this your preferred servicer. Unfortunately, it’s too late. They’ve performed their service and are expecting payment now.
What happened? The home’s seller forgot to cancel and transfer pest control services to their new residence, and now you’re stuck figuring out how to deal with a bill you didn’t ask for.
As a home seller, canceling or transferring home services is just as important as changing your address with them. Don’t forget the following items:
- Home maintenance services: Cancel or transfer providers like lawn care, house cleaning, pest control, pool maintenance, and home security.
- Delivery and subscription services: Update or cancel recurring deliveries like bottled water, newspapers, meal kits, or pet food.
- Review autopay accounts: Check recent bank or credit card statements for forgotten subscriptions still tied to your old address.
Handling these tasks early ensures you won’t continue paying for services you’re no longer using or risk the new owners getting a surprise visit from your pest control company.
10. Consider updating your estate plan
Selling your home can significantly shift your financial situation, especially if it was one of your largest assets. So it’s smart to see if your estate plan needs adjustments.
If your will or trust included the property or directions for how to distribute proceeds from its sale, those details need to be updated. Outdated instructions can cause confusion or delays for your beneficiaries down the line.
And if you moved to a new state, your documents may no longer comply with local laws. An estate planning attorney can help ensure your assets are still protected, your wishes are clear, and your heirs won’t run into legal red tape when it matters most.
- Remove the sold home: Take the property out of your will or any trusts it was part of.
- Update distributions: If your estate plan included instructions for dividing sale proceeds, make sure they still reflect your wishes.
- Check state requirements: Laws vary, and moving to a new state might mean your documents need revisions to stay valid.
- Consult a professional: An estate attorney can help you make updates, avoid mistakes, and ensure your plan still does what you need it to.
If you’ve never made an estate plan before, this could be the right time to start. With your financial situation now updated, you’ll want to make sure your long-term wishes are, too. It’s one of the best ways to protect your loved ones and avoid complications later.
11. Leave a review for your listing agent
From listing your old property to buying your new one, you won’t forget the value of finding a good real estate agent. Now’s the time to pay it forward: Not only will leaving a positive review for your agent give their business a boost, it could also help others in their search for an agent.
If you think your agent did a great job, take a few minutes to thank them. You’ll want to:
- Pick the best review platform: Post your review on Google, Zillow, Realtor.com, Facebook, or the brokerage’s website — ideally more than one platform. If unsure, ask your agent where they’d prefer you to leave reviews.
- Share specific details: Mention how your listing agent helped you, whether through staging support, responsiveness, or negotiating a quick sale.
When you’re navigating a major life transition like selling a home, the right agent can make all the difference. Writing a positive review is a small way to acknowledge a big impact, and it takes no time at all.
FAQ
What does it mean to close on a house?
Closing on a house is the very last step in the process of buying or selling a home. It’s when all the final paperwork is signed, money is exchanged, and ownership of the property officially changes hands. If you're the seller, this is the day you hand over the keys to the buyer. If you're the buyer, this is the day you become the legal owner of the home. The “closing” usually takes place at a title company, attorney’s office, or online through a digital platform. Once everyone has signed the necessary documents and the payment has been processed, the sale is considered final.
What happens to your mortgage when you sell your house?
When you sell your house, your mortgage doesn’t just disappear — it still has to be paid off. At closing, part of the money the buyer pays goes directly to your mortgage lender to pay off your remaining loan balance. In most cases, this happens automatically, so you don’t need to send in a separate payment. The title company or attorney handling the sale will take care of this. Once your mortgage is paid in full, any money left over from the sale (called your net proceeds) goes to you. You don’t get to keep the full sale price of the home unless you’ve already paid off your mortgage entirely.
What happens when you sell your house for more than you paid?
If you sell your house for more than you paid, you will have earned a profit, or “capital gain.” This profit will be used, first, to pay off your old mortgage and pay any fees associated with the sale of your home (such as real estate agent commissions). Once fees are paid, you’ll receive a lump sum check for whatever is left. After that, you’ll want to reach out to a tax advisor to make sure there’s nothing else you need to do to avoid tax bill surprises later.
When you sell a house, do you get all the money at once?
It depends. If you don't owe anything — that is, your mortgage is totally paid off, and you’ve paid all your taxes, insurance premiums, commissions, and other fees upfront — then you would simply receive a check for the full sale price of your home. However, this is very rare. You don't normally get all the money at once. Instead, the money will go to a middle person first (like a title agency or attorney) who will disperse the funds. They’ll pay off your old mortgage, pay up your taxes and insurance, and pay any other fees associated with the sale, giving you what is left over (your profit, AKA capital gain) in a lump sum check.
If I sell my house for $300k, how much do I get?
It depends, but you’ll likely receive a portion of that in the form of a profit or capital gain, which you can then use however you’d like (such as for a down payment on a new home.) In most cases, that $300k will first need to be used to pay off your old mortgage, pay up your taxes and insurance if needed, pay real estate agent commissions, or pay other fees associated with the sale of your house. You’ll receive a check during or after closing for whatever is left after everything else has been paid. This amount is called your net proceeds, and you can estimate it using an online net proceeds calculator.
What's the safest place to put money from a house sale?
A high-yield savings account or money market account at a bank or credit union is a good choice for short-term storage. These accounts earn some interest and keep your money easily accessible. Avoid putting this money into risky investments or leaving it in a regular checking account where it doesn’t earn anything. If you plan to use the money for a new home, it’s best to keep it liquid and safe — such as in a checking account or easy-to-access high-yield savings account — until you’re ready to make your next purchase.
What is capital gains tax on real estate?
Capital gains tax is a tax you might have to pay if you sell a home for more than you originally paid for it. The IRS looks at how much profit you made from the sale, and depending on your situation, they might require you to pay taxes on that profit. However, if the house was your main residence for at least two of the last five years, you may be able to exclude up to $250,000 in gains if you're single — or up to $500,000 if you're married and filing jointly. This means you wouldn't owe any tax on that amount. If you’re selling an investment property or didn’t meet the residency requirements, you’ll likely owe more.
