When it comes time to sell your home you will be bombarded with several numbers. The most important number is going to be your net proceeds. Your net proceeds will be the actual amount of money you will receive at the closing of the sale of your home.
You can use a home sale proceeds calculator to discover the estimated net proceeds of selling your home. You can find these calculators all over the internet. Before you will be able to use them though, you will need to collect certain information.
Home Value
It may be hard for you to imagine placing a value on something as priceless as your family’s home, but there is a formula to figure this out. Two major factors to finding the value of your house are the size and current condition of it.
To get a good estimate of your home’s value you need to compare it to similar homes in your area and look at what price they recently sold for. After you have this number you need to subtract the value for any major repairs your home needs if you do not plan to make them before selling your home.
Repair Cost
Many times when people are getting ready to sell their home they will make small cosmetic repairs. A fresh coat of paint can add to the value of your home and help it sell faster. If there are larger repairs to make you can choose to sell the house as-is and not make those repairs.
In most cases, the cost of the repair is a lot less than the comparative loss of value to your home if you try to sell it as is. If you want to sell your home as is there are several companies that will make you an offer and you will be able to sell your home quickly.
Realtor and Closing Cost
Your Realtor, also known as your real estate agent, will be paid by receiving a percentage of the price your home sells for. This percentage varies from agent to agent and will be discussed when you sign a contract with them. The average percentage is typically five to seven percent of the selling price.
Closing Costs are the fees that are charged by the attorneys that write up the agreement between you and the buyer. They will handle all the legalities of selling your home. These fees can also vary so you will have to make an inquiry with the attorney’s office. You can also choose to cover any portion of the closing cost for the buyer— this works as an incentive for the buyer.
Holding Cost
Once you have found a new home and move out of the house you are selling the clock starts to tick on this cost. When estimating this cost you have to see how quickly homes are selling in your area.
Unfortunately, when you put your house on the market you are still responsible for the mortgage, HOA fees, and other miscellaneous costs until the house sells. So to estimate your holding cost you take the average month it is taking for houses in your area to sell and multiply that by your monthly cost on the home.
There is a way to avoid holding costs. There are several companies that will make you an offer and buy your home immediately. This can be a great option if homes in your area are selling slowly.
In conclusion, when you are selling your home your biggest concern at the end of the day is how much money will you actually receive when everything is said and done. Once you have all this info you can use a home sale proceeds calculator and have a very good estimate of what your final net proceeds will be.
