Putting a ‘For Sale’ sign in front of your home or business is only a small part of the process of selling your home or commercial property and for a seller, it’s certainly not the first step. When you sell your property you need to have all your ducks in a row before you hit that market, because as the saying goes,
“you never get a second chance to make a first impression”.
The first step is knowing your financial position as of today. This is calculated by subtracting all the costs of selling your home from your selling price.
How do you know your selling price if you haven’t sold your home? You don’t. You can guess or estimate or even worse, Zestimate (this is the Zillow estimate with a long history of being inaccurate for many homeowners).
This is where getting a Current Market Analysis of your home comes into play and is so very important. A professional in real estate, otherwise known as a Realtor, will come to your home and view your home (see its pro and cons for today’s market), they’ll analyze the home sales market in your area and give you a price range after they’ve studied all the information they’ve gathered.
Below we’ve featured a home seller net calculator so you can see how costs are calculated during a home sale. You can play around with numbers and see what you could possibly make from a home sale.
This calculator is just an estimator and of course, if you haven’t had a professional CMA yet, you don’t know what your home sale price range will actually be yet, but playing with these numbers can help you get a better picture of what to expect.
Our FREE home values estimator will get you started on finding the value of your home, just fill in your address and boom, you’re on your way to finding out your home worth.
We’ll contact you to set up a time to help you find your current home value with a FREE CMA and then sit down with you and really crunch out the numbers, helping you fill in some of the blanks.
Vocabulary of Fees
- Mortgage payoff balance. Deductions from the sale price include your own home loan, second mortgages and home-equity lines of credit.
- Loan payoff fee. Some lenders may charge you an administrative fee to pay off your loan.
- Lien releases. If you owe money to a contractor or for court judgments or property taxes, a lien may have been placed on your property. You must pay those liens before the sale can close.
- Prepayment penalty. Find out from your lender if there’s a penalty for paying off your loan early.
- Recording fees. If you owe money on the property, you need to pay this fee to show that your debts have been fully paid.
- Commissions for listing and selling agents. This is the price you pay to the agents for making the sale of your house. Usually the fee is 6 percent, with half going to your agent’s brokerage and the rest going to the buyer’s agent’s brokerage. The agents get paid by their respective brokerages.
- Notary fees. Fee charged by a notary to verify your identity and to make sure the documents are executed properly.
- Escrow fees. The escrow company is the intermediary between you and the buyer, ensuring that the money is handled properly. Escrow agents receive money from the lender, pay off your mortgage and closing costs, collect deposits and give the proceeds to the lender. You may be able to split these costs with the buyer.
- Title search fees. Title insurance is not insurance per se but says that you have the legal right to sell your home. Title companies search public records to come up with a title insurance commitment. That commitment says you own the home, and it details anything else that may affect the title, such as mortgages, liens, easements, restrictions and home owner association declarations.
- Seller concession. A seller concession helps buyers pay their closing costs. If the buyer asks you for a concession of, for example, 3 percent, that amount will be added to your agreed-upon home price, and you will give back that 3 percent to the buyer to pay for closing costs.
A quick note about appraisals: many sellers come to us and ask if they should obtain an appraisal at the beginning of the process in order to validate the asking price or sales price. You are certainly welcome to obtain an appraisal if it makes you feel more comfortable, but you should be aware that, if the buyer is obtaining a loan, their lender will most likely require that a new appraisal be obtained by the lender…and your appraisal will not be useable by them. For that reason, most sellers do not obtain a separate appraisal. If you have a real estate agent, they will typically help you find an asking price based on their records of comparable sales in the area.
Thanks to Old Republic Title for the Net Sales Calculator
Thanks to Realtor.com for info and statistics