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If you want to sell your home faster and for the highest possible price, you may find that it helps to thoughtfully stage it with potential buyers in mind.

Even in a hot real estate market, staging can be a useful tool. First impressions can be critical as buyers must decide quickly how much to offer or whether to make an offer at all.

A 2021 survey from the National Association of Realtors® (NAR) found that 82% of buyers’ agents said staging made it easier for their buyers to visualize a property as their future home.

What Is Home Staging?

Staging your home to sell typically involves cleaning, decluttering, and rearranging furniture — or even replacing your current decor with rented or borrowed pieces that can better showcase the home.

It’s all about making your home as appealing as possible to attract buyers, minimize the amount of time it takes to sell, and maximize your return — goals that can be especially important if you’re trying to buy and sell simultaneously.

How Home Staging Can Affect Time and Price

It’s hard to predict exactly how staging will affect any particular home sale, but here are some factors to consider.

Research Shows Benefits for Sellers

Twenty-three percent of the buyers’ and sellers’ agents who responded to the NAR survey said staging increased the dollar value offered between 1% and 5% compared with similar nonstaged homes on the market. And 31% reported that staging a home for sale greatly decreased the amount of time the home was on the market.

A 2020 Real Estate Staging Association review of 13,000 staged homes found that 85% of those homes sold for 5% to 23% over list price, and they spent an average of 23 days on the market.

You Have Competition

As soon as you list your home for sale — whether you’re selling traditionally or with owner financing — you start competing with every other house in the neighborhood and the surrounding area. Depending on that competition, as well as your goals for getting the house sold and buying a new one, staging could be a worthwhile strategy for making your home stand out.

Recommended: 2022 Home Loans Education Portal

Expectations Can Be High

Buyers who watch home renovation shows may have high expectations for what your house should look like. Sixty-eight percent of the NAR 2021 Profile of Home Staging respondents said buyers were disappointed by how homes they looked at compared with homes they saw on TV.

Should You Hire a Professional Stager?

While some parts of the home staging process may be easy to DIY (paring down the number of personal photos and knickknacks, for example), it may help to hire a professional.

An experienced home stager will likely have more insight into what buyers in your area are looking for and what the current home trends are. A professional also may have access to furniture, art, and other décor items that could transform your home for a quick and/or more lucrative sale. And the amount you get for your current home could directly affect how much you can spend on your next one.

Here are some things to consider when deciding whether or not to hire a home stager.

Cost

Professional home staging can cost hundreds or even thousands of dollars, depending on how much work the stager does, how big your house is, whether you decide to rent staging furniture, and how long the house is on the market. There are ways you might be able to cut the expense, however, including:

•  Meeting with the pro to do a walk-through and consultation on how to stage your home to sell, but then doing the work yourself.

•  Asking the stager to work with your furniture instead of using rented items. (This could also save on storage costs.)

•  Focusing on a few important spaces, such as the entryway, the living room, and the master bedroom, instead of reworking your entire home.

Recommended: SoFi Mortgage Calculator

Fresh Eyes and Objectivity

Of course, you love your family photos, the tchotchkes you’ve collected through the years, and the paint colors you’ve chosen for every room. Buyers, however, might not.

An experienced stager can walk through and objectively point to the things that might need to be put away, cleaned, moved around, or refreshed before the house is photographed for the listing or has its first showing. A professional also may have home-staging tips to help you market to the types of buyers most often found in your area, whether that’s growing families who are upsizing or baby boomers who are downsizing their home.

Living With Someone Else’s ‘Look’

Stagers are trained to give the homes they work on the kind of polished, cohesive look buyers are used to seeing on HGTV. But living in a home that’s been styled for others may be a bit nerve-wracking. And if the furniture is not your own, you may have to keep kids, pets, and glasses of red wine away to avoid any damage.

Exposing Bigger Problems

Moving furniture around to create a more open look could also create some problems, if, for example, those changes expose a crack in the wall or a stain on the carpet. Making those fixes may delay getting your home on the market.

Pros and Cons of Hiring a Professional Home Stager

Pros	Cons
Marketing focus, objectivity	Cost
Eye for detail	Reworking décor could expose bigger issues
HGTV-worthy polish	Feeling displaced

12 Tips for Home Staging Success

Whether you decide to hire a helper or do the work yourself, here’s a list of home staging ideas to keep in mind.

1. Clear the Clutter

Clutter is distracting and it takes up space. As soon as you hire a real estate agent, they’ll likely nudge you to sell, donate, or throw away anything you no longer use. Things you want to keep but won’t need for a while (seasonal clothing and sports equipment, photo albums and keepsakes, or books you hope to read someday), can be boxed up and stored until you move. But remember: Buyers will want to assess your closet space, so you may want to move those boxes to the basement or rent a storage space.

2. Depersonalize

Framed family photos, souvenirs, your kids’ artwork, and other personal items can get in the way when buyers try to envision themselves living in your home. Even the day-to-day stuff can divert attention from the illusion you’re trying to create. That means no shoes by the front door, no wet towels in the hamper, and trying to keep bathroom counters clear of everything but hand soap and guest towels.

3. Deep Clean

Neat and tidy is good, but crisp and gleaming is better. A clean house sends a message to buyers that you take good care of your home. If your place isn’t new, you still can try to make it look as new as possible. Shine up all the appliances. Scrub the sinks, tubs, floors, and toilets. Check the corners for cobwebs and the baseboards for dog hair. And don’t forget to dust the ceiling fans and bathroom exhaust fans. If you don’t have the time or energy to do it yourself, you may want to hire a cleaning service — or double up on the service you already have.

Recommended: The Ultimate House Maintenance Checklist

4. Repair All Damage

You know all those little dings, stains, and scuff marks you’ve become blind to? They can be a big turnoff for buyers — and they will see them. Why not do a thorough walk-through and make a list of required touch-ups and repairs? Then you can head to the home improvement store, get what you need to make the fixes, and get to work. And if something is beyond your skillset (a running toilet, broken appliance, or finicky fireplace), you can address it before buyers come through.

Recommended: What are the Most Common Home Repair Costs?

5. Focus on Essential Rooms

If you have a limited staging budget, you may want to focus on the rooms buyers tend to prioritize. Respondents to the NAR 2021 survey said staging the living room was most important to homebuyers, followed by the master bedroom and kitchen. And home offices may be gaining importance as more people are working from home: 39% of the survey’s respondents said they had staged a home office.

6. Neutralize the Décor

Decorating with neutrals — think 50 shades of gray — can be another big step toward depersonalizing your home. Your favorite colors may be bright and bold, but that might be a bit much for some buyers. (Their agent probably will tell them it’s an “easy fix.” But if they can’t get past the chartreuse kitchen or the green-striped wallpaper in the dining room, buyers may not be able to see their family using those spaces.)

To break up all the beige, gray, or white, touches that evoke a feeling of comfort can be used sparingly. For example, you can give your bathroom that spa vibe simply by adding a basket filled with crisp white towels. A bowl of lemons, potted orchids, or vases filled with fresh flowers can add a pop of cheer and color in the foyer or kitchen.

7. Let There Be Light

Put your home in the best light by letting in as much sunshine as possible during the day and turning on all the lights for night showings. (No need to make buyers fumble for switches.) Open the curtains and blinds (unless the view is a drawback). Keep pathways and porches well lit when the sun goes down. Replace burned-out bulbs. And think about bouncing a little light around rooms with well-placed mirrors, which can make a room appear larger.

8. Curb Appeal Matters

Why do all that work to fix up your home’s interior if there is a chance buyers won’t even get out of the car? First impressions are lasting, so put out the welcome mat (literally, make sure a clean doormat is outside the door) and freshen up your curb appeal.

Consider power-washing the walkway, and updating (or at least clean) outdoor light fixtures. In the winter, clear the snow. If you need a pop of color, you can do it with plants. And if the front door is dated or just dingy, think about fixing it up. If buyers have to wait a minute for you or an agent to let them in, they’re likely to notice if the door looks great … or doesn’t.

Recommended: Five Curb Appeal Ideas For Your House

9. Look Beyond the Porch

Depending on the weather, buyers may spend time outside checking the exterior of the house — front and back. If weather permits, you may want to sweep the leaves off the roof, try to get rid of any mold or mildew on the house or fences, clean the pool and deck, and wash the windows inside and out. The goal here is to make your home more appealing but also to help buyers focus on the fabulous features of your home instead of potential maintenance.

10. Create Space

To get a more open look, consider removing any oversized or extra pieces of furniture. A small bedroom may look bigger, for example, with just a dresser instead of a dresser and chest, or if you remove a bed’s oversized headboard or footboard. In the living room, smaller pieces may be preferable to an overstuffed sectional that seats 10. Remember, the living room is a key room for buyers, so it may be worth renting furniture that shows off its size and other details, such as built-in bookshelves or a fireplace.

11. Clear the Air

If you have pets, or if there’s a smoker in your home, it may require some extra steps to keep buyers from sniffing them out. You may want to have the rugs cleaned, and if you haven’t done it in a while, it may help to have the ductwork cleaned as well. Mildew may be another odor issue. If odors linger, open the windows if possible, but be sparing with sprays and plug-in air fresheners — some buyers may be sensitive to certain smells. If a quick cover-up is necessary, consider baking some cookies.

12. Define Rooms

Give each room a purpose, even if you don’t use the space that way yourself. Could a spare bedroom be turned into a craft room or office? Would your attic be a great space for a teen hangout room? Could your basement be transformed into a home theater by moving a TV downstairs and adding a popcorn machine? Get buyers excited about the possibilities.

The Takeaway

Any competitive edge a home seller can find is worth considering. Home staging could boost the timeline and bottom line of the deal.

For more tips and homeowner resources, check out SoFi’s 2022 Guide to All Things Home.

Ready to move on to a new home? Look into SoFi’s mortgage loans today.

Photo credit: iStock/FollowTheFlow

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SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Tenants in common is a way for two or more parties to buy a property or parcel of land. Buying real-estate is expensive, and pooling your resources with others can be a great way to bring the price within reach. Perhaps you are buying a house with relatives that you’ll live in and they’ll stay there when in town. Or maybe you’re eyeing the purchase of several acres of land with some colleagues as an investment.

These are examples of why it may make sense for you to join forces with someone else (or multiple people) when acquiring a property. It can, however, open up a number of other questions and issues.

If you’re buying any kind of property with another person, even family, then you’ll need to consider how you want to co-own or take title to it. Tenants in common is one way to take title to a property.

Taking title as tenants in common first became popular in the 1980s in cities where the price of real estate had increased steeply. Acquiring properties in this manner has grown in popularity, especially in expensive urban areas, where merging money from different individuals became a way to increase purchasing power.

Read on to learn more about tenancy in common, including:

•   What is tenancy in common?

•   How does tenancy in common work?

•   What are the pros and cons of tenancy in common?

•   Is tenancy in common right for you?

What Is Tenancy In Common (TIC)?

Tenants in common, also known sometimes as “tenancy in common,” is a way for multiple people (2 or more) to hold title to a property. Each person owns a percentage of the property, but they are not limited to a certain space on the property.

In other words, you might be tenants in common with one or more persons, each holding a percentage of ownership share (which does not have to be equal), but you have a right to the entire property. There’s no limit to how many people can be tenants in common.

Worth noting: Despite the use of the word “tenant,” tenants in common has nothing to do with renting.

Recommended: First-Time Home Buyer Guide

How Tenancy in Common (TIC) Works

Tenancy in common works by people pooling their resources and buying property together. Each tenant, or person who is part of this legal arrangement, may own a different percentage of the real estate, but that doesn’t limit you to, say, just one room of a house.

The TIC relationship can be updated, with new tenants being added. What’s more, each tenant can sell or get a mortgage against their share of the property as they see fit. Each tenant may also name a beneficiary (or beneficiaries) to inherit their share upon their death.

Recommended: Mortgage Calculator

Property Taxes With Tenancy in Common

You may be wondering how tenants pay taxes on TIC properties. In most cases, a single tax bill will turn up, regardless of how many co-owners are involved or how they have divvied up percentages of ownership. It is then up to the tenants to determine who pays how much.

Another facet of tenancy in common arrangements to consider: Tenants can deduct property taxes when filing with the IRS. You might deduct the percentage of the taxes you paid, reflecting your share of ownership, or simply the amount you pitched in.

Recommended: Understanding the Different Types of Mortgage Loans

Tenancy in Common vs Joint Tenancy

When it comes to shared ownership, tenancy in common isn’t the only option. Another way to handle a shared purchase is joint tenancy. Here are some points of comparison for a tenant in common vs. joint tenant:

•   In TIC, the tenants can divide up ownership of property how they see fit. In a joint tenancy, the tenants hold equal shares of a single deed.

•   With a TIC arrangement, when an owner dies, their portion of the property passes to their estate. With joint tenancy, however, the property’s title would go to the surviving owner(s).

Recommended: What Is a Mortgage?

Marriage and Property Ownership

Tenancy in common and joint tenancy are often ways that property is held in marriage. This will vary depending on the state you live in. Some states consider TIC the default way to own property in marriage. Elsewhere, it may be joint tenancy.

There is one other option possible, known as tenants by entirety (TBE). In this case, it’s as if the property is owned by one entity (the married couple) in the eyes of the law. Each spouse is a full owner of the real estate.

Recommended: How to Choose a Mortgage Term

As with most things in life, there are pros and cons to TIC arrangements. First, the benefits:

•   With the rising cost of real estate, especially in expensive markets, taking title as tenants in common can be one way to pool money and buy property you couldn’t otherwise own as an individual. It’s a way to bring home affordability into range.

•   Because tenants in common also allows for flexibility in terms of how you work out the specifics of living arrangements, it lends itself well to situations where friends decide to go in together on a vacation home or property where they won’t all be occupying the property at the same time.

•   You can transfer your share at any time without the consent or approval of the other tenants. You also have the right to mortgage, transfer or assign your interest and so do your partners.

Now, for the disadvantages:

•   Tenants can decide to sell or give away their ownership rights, without the consent of the others, which means you might end up co-owning a property with someone you don’t know or even like.

•   One or more of the tenants can buy out the other tenants if they decide to dissolve the tenancy in common. The property can also be sold and the proceeds split per ownership percentages.

•   In terms of real estate law, one of the main issues with a tenancy in common is that if you all signed the mortgage loan in order to purchase the property, you could end up being liable for someone else not paying their portion of the mortgage or for creditors forcing a sale or foreclosure of the entire property.

   Increasingly, though, some banks and lenders are offering fractional loans for tenants in common on real estate that is easier to divide into separate units. This then allows each tenant to sign their own loan tied just to their percentage of the property.

Recommended: How to Lower Your Mortgage Payment

Example of Tenancy in Common

Here’s an example of how tenancy in common might look in real life: Sam wants to buy a condo in Florida for $300,000 but can’t afford to do so; his limit is $200,000. His sister Emma loves Florida and says she would like to go in on the condo if she can spend a couple of months there in the winter. She adds her $100,000, and together, they can afford the condo.

Sam owns two-thirds and Emma owns one-third. They both have the right to occupy the property. If Emma decides that she wants to get her own place in Florida, she could sell her share in the condo, while Sam retains his interest.

Recommended: What Is Mortgage Principal?

The Takeaway

Buying a house can seem overwhelming, but it doesn’t have to be. Tenancy in common presents one avenue to affordable ownership by purchasing with others. Another way to manage costs is to get the best possible mortgage to suit your needs and budget.

That’s where SoFi can help. With as little as 10% down and competitive rates, our mortgage loans can be a quick, convenient option.

Buying a home? See all that SoFi mortgage loans can offer.

FAQ

Can tenancy in common be dissolved?

A tenancy in common can be dissolved. A single or multiple tenants may agree to end the arrangement by buying out the others in the shared ownership. If there is a situation in which the tenants can not agree on a path forward, the courts can be involved.

What are the responsibilities of tenants in common?

In a tenancy in common relationship, each tenant must pay their share of the costs involved, which can involve the mortgage principal and interest, homeowners insurance, and property taxes. A tenant’s share of these costs will reflect how much of the property they own. In addition, you may need to manage a portion of the property (say, if you’ve divided a house up or own a plot of land with others). Lastly, a TIC agreement may involve rights of first refusal if any tenants want to sell their share.

What happens when a tenant dies?

When a tenant in a tenants in common agreement dies, their share of the property is passed along to their beneficiary or beneficiaries, not the other tenants.

What are the disadvantages of tenants in common?

Typically, the most important disadvantages of a tenants in common agreement are: each member can sell their share independently, meaning you could be stuck with a tenant you don’t know or like; the TIC could be dissolved by tenants buying out one another; and if the tenants cosigned a mortgage for the property and one or more don’t pay, the other tenant could be stuck with liability for additional costs.

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SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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A popular method that analysts use to evaluate stocks is fundamental analysis. Learn what it is and how it’s used for stock purchases.

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If an investor is unhappy with their current brokerage firm’s service or tools, they shouldn’t let the hassle of the transfer process keep them from switching to brokerages. Putting off a transfer may keep investors from future portfolio growth because they don’t enjoy using the platform or are paying high fees.

Transferring brokerage accounts is not the huge hassle people might think it is. While it’s not as fast as certain cash payment services, the process only requires a few forms and patience to get it done. Keep reading to learn more about moving your investments from one account to another.

When to Consider Switching Brokers

There are several reasons why an investor might consider switching brokers, including the following:

•   High fees: If you pay high investment fees and commissions to your current broker, you may find a more cost-effective option by switching to a different broker. Many online brokerage firms now offer very low or no commissions.

•   Lack of customer service: If your current broker is not meeting your needs in terms of the types of investment products they offer, the level of customer service they provide, or the quality of their trading platform, you may want to consider switching to a different broker that better meets your needs.

•   Changes in your investment strategy: If you plan to make significant changes to your investment strategy, such as switching to a new asset class or adopting a new approach to trading, you may want to consider switching to a broker better equipped to support your new strategy. For example, your current broker may not offer options trading, but you’d like to start using options to speculate, generate income, or hedge risk.

•   Changes in your financial situation: If your personal finances change significantly, consider reviewing your broker to ensure it is still the best fit for your needs. For instance, your current broker may have a minimum account balance you can no longer meet.

However, switching brokerage accounts can be time-consuming and potentially costly, so it’s important to consider whether the benefits outweigh the costs.

Two Ways to Transfer Assets to Another Broker

When transferring a brokerage account from one broker to another, there are two main ways investors can transfer assets: cash transfer and in-kind transfer.

Cash Transfer

A cash transfer involves selling the assets in the account and transferring the proceeds to the new broker in the form of cash. A cash transfer is a straightforward and quick way to transfer an account, but it may not be the most tax-efficient option, as it could trigger capital gains or losses that may be subject to taxes.

💡 Recommended: Capital Gains Tax Guide: Short and Long-Term

In-Kind Transfer

An in-kind transfer involves transferring the assets in the account directly to the new broker without selling them. This may be a more tax-efficient investing option, as it allows you to carry over the cost basis of the assets to the new broker. However, executing an in-kind transfer may be more complex and time-consuming, as it may require the transfer of specific securities or other assets rather than just cash.

How to Move Investments From One Brokerage Account to Another

The process for transferring cash or securities from one brokerage account to another typically involves the following steps:

1. Confirming Account Information

Before an investor starts the transfer process, they should take some time to review their existing account, taking note of the assets they hold, total amounts held, and basics like account numbers and information on file.

Having a snapshot of account totals can serve as a backup if anything goes wrong in the transfer. Investors might want proof of their assets for confidence before getting started.

2. Contacting the New Broker

To kick off the process, an investor would reach out to their new broker, also known as the “receiving firm,” in the transfer. Each brokerage firm will have a slightly different transfer process, but most accounts will be transferred in an automated process through the help of the National Securities Clearing Corporation (NSCC).

NSCC runs Automated Customer Account Transfer Service (ACATS), a service that allows accounts to be transferred in a standard way from one brokerage firm to another. ACATS should work for most transfers, including cash, stocks, and bonds.

When an investor contacts the receiving firm, they’ll receive instructions and, often, a physical or digital copy of the Transfer Initiation Form (TIF). At this stage, investors don’t need to reach out to their old brokerage firm.

3. Completing a Transfer Initiation Form (TIF)

Completing the standard TIF officially kicks off the process. Once the receiving firm has an investor’s TIF, they’ll start making arrangements with the investor’s old brokerage firm, or “delivering firm,” to send the assets over.

Investors should take care to complete the TIF thoroughly and correctly. If information (such as Social Security number, name, or address) is not the same with both the delivering and receiving firms, the request could be flagged as fraud and rejected.

That means confirming an investor’s receiving and delivering firms have the correct personal information on file.

The most common hold-up in the transfer process is an investor error in the TIF.

TIFs typically include the following information:

•   Numbers for both brokerage accounts

•   The brokerage account type, such as joint, individual, Roth IRA, trust, estate, limited liability, 401(k), etc.

•   Social Security number

•   The delivering firm’s contact information

•   Specific assets to transfer in the event of a partial transfer

4. Submitting the TIF, and Sitting Tight

The investor will submit the TIF to their receiving firm when everything looks complete. From there, the investor will wait.

While the investor can’t do much more than sit on their hands and wait, the receiving firm is entering the TIF into ACATS. This information becomes a digital request submitted to the delivering firm, requesting a transfer of assets from one brokerage to another.

When the TIF is being reviewed, investors should pay close attention to their email and phone. If there’s any mismatched information on the TIF or between the two firms, the receiving firm will likely reach out to the investor to amend the issue.

Missing outreach could mean an even longer transfer period. That’s why investors should double-check that all the information on the TIF and between the two brokerages is consistent.

If the form is correct and approved by the delivering firm within the appropriate window, they will send a list of assets to the receiving firm. Now, it’s the receiving firm’s time to accept or reject.

While uncommon, a brokerage can reject the assets. Thus, an investor might consider contacting the receiving firm before the transfer to confirm their assets will be accepted. The receiving firm gets to decide if they want to accept or reject those assets.

If the assets are accepted, the delivering firm will digitally move the holdings to the receiving firm.

5. Contacting Your Old Broker (Optional)

In the world of texting, a phone call might be the last thing a person wants to do. But a simple call could save a few bucks in the transfer process. One hiccup that can come from the process is the account transfer fee. In some instances, the delivering firm will charge an “exit fee” when an investor makes a full transfer, partial transfer or decides to close an account entirely.

To avoid the surprise of a fee, an investor may reach out to their old brokerage firm and ask if they’ll be charged a fee for leaving or transferring funds.

If the delivering firm charges a fee, investors could reach out to the receiving firm to ask if they have any promotions for new clients that would cover the cost of transfer fees.

6. Watching the New Account, and Waiting

After the delivering and receiving firms approve the transfer request, it will still take a few days for the investments to move accounts.

Investors shouldn’t be alarmed when assets disappear from both accounts for a day or two, but the process typically takes no more than six business days.

The process may take longer if the delivering firm is not a broker-dealer. The transfer often takes longer than six business days if the delivering firm is a bank, mutual fund, or credit union.

No matter the length of the transfer, it’s common for one or both of the brokerage accounts involved to be frozen. That means no trades are allowed until the process is complete.

Investors may plan ahead and avoid trading during this period. If there is a stock or fund investors are looking to sell in the near future, they might want to sell it before starting a transfer.

Special Circumstances That Can Affect the Stock Transfer Process

Transferring Retirement or Other Tax-Advantaged Accounts

Transferring a tax-advantaged brokerage account, such as an individual retirement account (IRA) or 401(k) account, from one broker to another generally follows a similar process to regular brokerage accounts.

However, if you transfer a tax-advantaged account, you may need to follow certain rollover rules to avoid triggering taxes. For example, if you transfer an IRA, you generally have 60 days to complete the rollover and deposit the assets in the new account to avoid taxes and penalties.

💡 Recommended: IRA Transfer vs Rollover: What’s the Difference?

Transferring Stocks to Another Person

Transferring or gifting stocks to another person may have tax implications. For instance, transferring stocks may trigger gift taxes depending on their value.

Understanding Brokerage Transfer Fees

Brokerage account transfer fees are charges that may be assessed by a broker when an investor transfers their account from one broker to another. The new or old brokerage may charge these fees, which can vary depending on the broker and the assets being transferred.

Some common types of brokerage account transfer fees include:

•   Account transfer fees: These are fees that the current broker may charge for transferring the account to the new broker.

•   Termination fees: Some brokers may charge termination fees for closing an account or transferring assets out of the account.

•   Trade execution fees: If you need to sell any assets in your account to transfer them to the new broker, you may be subject to trade commission fees.

Keeping Records From Your Old Account

It’s generally a good idea to keep records from your old brokerage account following an account transfer, as these records may be helpful for various purposes.

For example, you may need to refer to your old brokerage account records for tax purposes. The information in these records can help you accurately report any capital gains or losses subject to taxes.

You may also need to refer to your old brokerage account records if you need to resolve any disputes or errors related to the transfer of your account or the assets held in the account.

Tax Implications of Switching Brokers

The tax implications of switching brokers will depend on several factors, including the type of assets held in the account, the method used to transfer the assets, and your tax situation.

If you sell and cash out stocks in your account to transfer them to the new broker, you may incur capital gains or losses that could be subject to taxes.

Additionally, the transfer may affect the cost basis and holding period of the assets in your account. The cost basis is the amount you paid for the asset, and the holding period is the length of time you have owned the asset. These factors can affect the amount of any capital gains or losses that may be subject to taxes.

Switching to SoFi Invest

People might put off transferring their brokerage account because they believe it’s involved and complicated. While it’s not instant, the process typically takes just six business days from start to finish. That means investors are only a few days and a simple form away from a new brokerage service. As long as an investor is careful and asks their receiving firm the right questions before getting started, they should avoid any significant roadblocks during the transfer.

By opening an online brokerage account with SoFi Invest®, you can take control of your financial portfolio with a DIY approach. You can trade stocks, exchange-traded funds (ETFs), fractional shares, and more with no commissions, all in the SoFi app.

Take a step toward reaching your financial goals with SoFi Invest.

FAQ

Can you transfer brokerage accounts?

It is generally possible to transfer a brokerage account from one broker to another. Transferring an account typically involves requesting a transfer form from your new broker and completing the transfer form and any other necessary documents.

How do you transfer stock to a family member?

To transfer stock to a family member, you will need to follow the steps for selling or transferring the stock following the policies of your brokerage firm. This may involve completing and submitting a stock transfer form or other required documentation to your broker and paying applicable fees.

What is an Automated Customer Account Transfer Service (ACATS)?

The Automated Customer Account Transfer Service (ACATS) is a system that facilitates the transfer of securities and cash between brokerage firms in the United States. It allows investors to transfer their accounts from one broker to another without manually selling and buying securities or transferring cash balances, which can streamline the process and minimize the risk of errors.

How will I know that my transfer is complete?

Once you have initiated the process of transferring your brokerage account from one broker to another, you should receive confirmation from both the current and new brokers when the transfer is complete. This confirmation may come in the form of a written statement or an email.

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