House Sale Plan
House Sale Plan
Last updated: 2026-04-01
Property: 11024 166th PL NE, Redmond, WA 98052 Purchased: 10/18/2019 for ~$1,165,000 Mortgage balance: ~$780,000 Estimated market value: ~$1.8M–$2.0M (Zillow Zestimate ~$1.98M, comps TBD with agent) Estimated equity: ~$1.0M–$1.2M Target close: July–August 2026 Target departure: Late August 2026
Property Details
- 4 bed / 3 bath, 2,810 sq ft, built 1997
- Good condition per Adam — no major repairs needed
- Main work: decluttering old belongings before listing
Tax Strategy
Section 121 Exclusion — You Qualify
- Exclusion: $500,000 for married filing jointly
- Ownership test: Owned since Oct 2019 — over 6 years. ✅
- Use test: Both lived there 2+ of last 5 years. ✅ (verify Yun hasn’t been away >3 cumulative years)
- Frequency: Haven’t claimed exclusion on another home in prior 2 years. ✅
What this means: If your gain is under $500K, you pay $0 in federal capital gains tax.
Rough gain calculation
| Item | Amount |
|---|---|
| Estimated sale price | ~$1,900,000 (conservative, Zestimate $1.98M) |
| Original purchase price | ~$1,165,000 |
| Improvements (add to cost basis) | TBD — track any major improvements since 2019. This matters now. |
| Selling costs (~6-8%) | ~$120K–$150K (agent commissions, excise tax, closing) |
| Estimated gross gain | ~$735K before improvements and selling costs |
| Selling costs (reduce gain) | ~-$120K–$150K |
| Estimated taxable gain | ~$585K–$615K before improvements |
This exceeds the $500K exclusion. You’d owe federal capital gains tax on the amount above $500K.
Estimated tax exposure (without improvements):
- Taxable gain above exclusion: ~$85K–$115K
- Federal long-term capital gains rate (15%): ~$13K–$17K
- Net Investment Income Tax (3.8% if AGI >$250K): ~$3K–$4K
- Total federal tax: ~$16K–$21K
How to reduce this:
- Track ALL improvements since 2019 — they increase your cost basis dollar-for-dollar. Roof, HVAC, remodel, landscaping, appliance upgrades, driveway, fencing, anything that adds value (not repairs/maintenance). Every $1 of improvement = $1 less taxable gain.
- If you have $85K–$115K in improvements, you’re back under the exclusion and owe $0.
- CPA consultation is critical — this is no longer a formality, it’s a real tax optimization exercise.
WA-specific costs
- Real Estate Excise Tax (REET): WA uses tiered rates. At ~$1.9M:
- First $525K: 1.10% = ~$5,775
- $525K–$1.525M: 1.28% = ~$12,800
- $1.525M–$3.025M: 2.75% = ~$10,313
- Total REET: ~$28,888
- WA capital gains tax (7%): Applies to gains on capital assets >$270K. Primary residence sale gains excluded under Section 121 are NOT subject to WA capital gains tax. Any gain ABOVE the federal exclusion may be subject — CPA must confirm.
WA-specific costs moved to gain calculation section above.
Action: CPA consultation
Still worth a CPA consult to:
- Confirm gain calculation with improvement cost basis
- Verify no surprises with WA REET tiers
- Coordinate with expat tax planning (same CPA call)
Timeline: Workback from Late August Departure
Phase 1: Declutter & Prep (April 1 – May 15)
This is the critical phase. Start NOW so it’s not a mad rush.
Week 1-2 (April 1–14): The Sort
Go room by room. Every item gets one of four labels:
| Category | What goes here | Where it goes |
|---|---|---|
| KEEP — Ship to China | Essentials, irreplaceables, small sentimental items | Box and ship via sea freight (6-8 week transit) |
| KEEP — Store at son’s | Important documents, seasonal items, things needed when you return to US | Minimal — don’t burden him. 5-10 boxes max. |
| SELL | Furniture, electronics, tools, anything with resale value >$50 | Facebook Marketplace, OfferUp, Craigslist, estate sale |
| DUMP/DONATE | Everything else — old clothes, broken items, low-value clutter | Donation pickup, junk removal service, transfer station |
Room-by-room checklist:
- Garage / Storage — Usually the worst. Start here. Old tools, boxes never unpacked, holiday decorations.
- Master bedroom closets — Clothes you haven’t worn in 2+ years. Be ruthless.
- Kids’ rooms / spare rooms — Old toys, books, furniture. If your son wants anything, now’s the time.
- Kitchen — Appliances you never use, duplicate utensils, expired pantry items.
- Living areas — Furniture decisions (sell or donate), decor, media/books.
- Bathrooms / linen closets — Old towels, expired products, medicine cabinet cleanout.
- Attic / crawl space — If applicable. Often forgotten until last minute.
- Outdoor / yard — Patio furniture, garden tools, planters.
Week 3-4 (April 15–30): The Purge
Selling (high-value items):
- List furniture, electronics, tools on Facebook Marketplace and OfferUp
- Price to sell fast, not to maximize — you’re on a timeline
- Big furniture: list early, offer delivery for serious buyers
- Consider an estate sale company if volume is high (they take 30-40% but handle everything)
Donating:
- Goodwill / Value Village — Drop-off, open daily. Good for clothes, kitchenware, books.
- Habitat for Humanity ReStore — Takes furniture, appliances, building materials. Will pick up large items.
- Buy Nothing groups — Redmond/Bellevue Facebook groups. Great for giving away smaller items fast.
- Donation pickup services:
- Action Junk Hauling — donates usable items, recycles rest
- LoadUp — focuses on donation/recycling, handles everything
Dumping (junk removal):
- Junk removal services (for the big sweep):
- Busby Junk Removal: (425) 279-5937 — Eastside local, same-day available
- Action Junk Hauling — estate cleanout specialists
- 4 Seasons Junk Removal: (206) 939-9995 — estate cleanout, donate-first approach
- Typical cost: $300–$700 per truckload depending on volume
- Self-haul option: King County transfer stations accept most household items. Factoria Recycling & Transfer Station is closest to Redmond.
- Hazardous waste: Paint, chemicals, batteries → King County Hazardous Waste drop-off (free for residents)
Tax deduction tip: Get receipts for all donations. Itemized deduction for 2026 taxes. Photograph donated items and note fair market value.
Week 5-6 (May 1–15): Final Sweep + Staging Prep
- Anything unsold gets donated or junked — don’t let it linger
- Schedule a junk removal service for one big final pickup of everything that didn’t sell/donate
- Deep clean or schedule professional cleaning
- Minor touch-ups: patch nail holes, touch up paint, replace burned-out bulbs
- Consider light staging — even a few rented pieces can help if you’ve sold your furniture
Phase 2: List & Sell (May 15 – July 15)
May 1–15: Find a Listing Agent
- Interview 2-3 agents. Ask about:
- Recent sales on your street / in your neighborhood
- Recommended list price
- Marketing plan (photography, 3D tour, open houses)
- Commission structure (negotiate — 2-2.5% listing side is possible in this market)
- Timeline to list
- Tip: May is the fastest-selling month in WA. Listing mid-May to early June hits peak demand.
May 15–June 1: Pre-Listing
- Professional photography and 3D tour
- Agent does comparative market analysis (CMA) → set list price
- Disclosure paperwork (WA requires seller disclosure form)
- Pre-inspection optional but can speed up offers
June 1–15: Active Listing
- List on MLS → syndicated to Zillow, Redfin, Realtor.com within 48 hours
- Open houses first two weekends
- Expect offers within 2-4 weeks in current Redmond market (49 days average, but well-priced homes go faster)
June 15 – July 15: Under Contract → Close
- Accept offer, negotiate terms
- Buyer inspection, appraisal, loan approval (~30-45 days)
- Target close: mid-July
- WA escrow typically handled by title company
July 15 – August: Post-Close
- Receive proceeds (wire transfer, usually same day or next business day after closing)
- Park proceeds immediately in chosen interest-bearing vehicle
- At 4.5% APY on ~$970K, that’s
$43,600/year or **$3,625/month passive income**
Phase 3: Final US Exit (August)
- Move remaining items to son’s place or ship to China
- Forward mail to son’s address (or virtual mailbox)
- Cancel utilities, services, subscriptions
- Fly to Ninghai
Proceeds Parking Strategy
| Vehicle | APY (approx) | Liquidity | Notes |
|---|---|---|---|
| HYSA (Marcus, Wealthfront, etc.) | 4.0–4.5% | Immediate | Simplest. FDIC insured up to $250K per account — may need 2 accounts. |
| T-Bills (4/8/13/26 week) | 4.0–4.5% | At maturity | Bought via TreasuryDirect or brokerage. State tax exempt. Can ladder. |
| I-Bonds | Variable | 1 year lockup | $10K/person/year limit. Good for inflation hedge portion. |
| CD Ladder | 4.0–5.0% | At maturity | Higher rates for longer terms. Less flexible. |
| Money Market Fund | 4.0–4.5% | 1-2 days | Brokerage option. Often slightly higher than HYSA. |
Recommendation: With ~$970K to park, split across:
- HYSA x2 ($250K each for FDIC coverage) — immediate liquidity from abroad
- T-Bill ladder ($300K–$400K) — slightly better yield, state tax exempt
- I-Bonds ($20K — $10K each for Adam + Yun) — inflation hedge, 1-year lockup
- Keep 6 months of expenses in HYSA for immediate access
Estimated Financial Summary
| Item | Amount |
|---|---|
| Estimated sale price | ~$1,900,000 |
| Mortgage payoff | ~$780,000 |
| Agent commissions (~5%) | ~$95,000 |
| WA REET (tiered) | ~$29,000 |
| Closing costs (title, escrow, etc.) | ~$8,000 |
| Federal capital gains tax (estimated) | ~$16K–$21K (reducible with improvement cost basis) |
| Estimated net proceeds | ~$967,000 – $972,000 |
| Monthly interest at 4.5% APY | ~$3,625/mo |
Zillow Zestimate is $1.98M — used $1.9M as conservative estimate. Actual CMA from agent may differ. Tax estimate assumes no improvements tracked yet — CPA + improvement documentation could reduce tax to $0.
Key Risks
| Risk | Mitigation |
|---|---|
| House doesn’t sell fast enough | Price competitively. May/June is peak season in Redmond. |
| Market drops before listing | Price to current comps, not aspirational. Move fast. |
| Closing delays push past departure | Build 2-week buffer. Can grant power of attorney to son for final closing if needed. |
| Proceeds access from China | Set up international-friendly bank (Schwab, Wise) before departing. |