This means accurate record keeping must be kept from the day the house is purchased. It is essential that every dollar spent for repairs, upgrades, maintenance, etc. be recorded. These expenses can then be used to calculate the gain or loss realized by the home sale. Other expenses used to lower the gain on the sale of a house are the costs directly related to selling the house itself. As with purchasing the house, the price of the house is not the only deciding money factor.
Some costs concerned with the buying or selling often make people re-think their options.
These are to be paid by the seller to the new owner. This amount fluctuates by geographical area, housing market, and agent. There is also title work, which is approximately the same as when the house was purchased. This is paid to either the lender or an attorney for finalizing all documents relating directly and indirectly to the sale. To calculate the amount of gain or loss realized on a home sale, requires accurate records.