The Decision to Sell Your House
Homeownership is one of the experiences to look forward to as an adult in America. It’s likely, however, the time will come that the house no longer meets your needs. When that time comes, you’ll need to know how to calculate the home’s worth, including how much you can sell it for and how much profit you can make, so you know how much new house you can afford. If you’ve made the decision to sell your house, you can use this as a home sale calculator.
The Importance of Equity
There’s a period of time after you initially purchase a home that represents a zero – or even a negative – profit value. But once you have invested enough equity in your home, you can sell and be sure of at least some amount of profit.
A good financial advisor can tell you when the perfect time to sell is, to maximize the value of your home investment. Since not everyone has a good financial advisor, this home sale proceeds calculator was created.
Home Sale Price
When selling your home, the first thing you’re going to want to figure out is the home sale price you can realistically estimate. But possible profits vary with each home sale price, depending on things like your outstanding mortgage balance at the time of sale.
Possible Profits
Besides, what most people are really trying to do is figure out possible profits – which is different. To get the estimated net proceeds, we must first figure out the selling costs of your home with our home sale calculator. Let’s start with the real estate agent.
Real Estate Agents
The first thing to do is to find a quality real estate company with good, licensed real estate agents. A real estate agent is necessary for getting the best sale price for your home, as well as determining the best selling price in the first place. The seller pays fees for both their agent as well as for the buyer’s agent. But the real estate agent commission costs represent 6% of the sale price, for sellers.
Home Preparation
These are the costs of getting your house prepared to sell, such as home staging or other DIY preparation, including professional listing photographs. These can include cosmetic improvements as well as home remodeling and curb appeal projects. Often the cost of storage fees for your belongings is included here as well. These together can represent an estimate of 1% of the net proceeds.
Seller Concessions
Seller concessions are common in any home sale and can represent 2% of the selling price. They are accommodation requests the buyer asks the seller to pay during negotiations. Depending on the buyer’s offer, some of the concession fees, which are out-of-pocket costs, can be significant.
Overlap Costs
These are the costs of transitioning, which can include paying for a short-term rental, paying two mortgage payments for a short period of time, or even a short home equity loan could be included in these costs. The overlap costs can be an estimate of 1% of the net proceeds.
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Closing Costs
Closing costs can be escrow fees from the escrow company, transfer tax, property taxes, and more. Transfer tax is the cost of putting the deed to the new house into your name. Transfer tax is essentially the amount of money you have to pay to take the old owner(s) off the title and put your name on it instead and is part of the closing costs. The total cost here can be an estimate of 1%-2% of the purchase price.
Original Mortgage Loan Payoff
This is the total cost of your remaining mortgage. This is not necessarily your current balance, but instead the amount of its payoff, which changes daily. Calculating net proceeds must include this deduction to be accurate.
Home Repairs
Keep in mind that potential buyers will pay the fees for a home inspection, and depending on the report, they may request that either repairs be made or credit be issued for the money equivalent. The amount here can only be an estimate, as it varies greatly in every case.
Calculating Fees
Once you have an estimated value for each of these sections, you can add them up and then subtract from the total sale amount of what you hope to get for your home to get a profit amount. Sometimes you may get a negative amount, meaning you don’t have enough equity in your home yet to turn a profit.
Avoid All of it With Sell Your House Fast – Mississippi
If you are considering selling your house, why not get a free, no-obligation cash offer from Sell Your House Fast – Mississippi? Just fill out the short form on our homepage right here on this website. A cash buyer will be in touch shortly to schedule an appointment to visit the property in person.
At that time, the cash buyer will discuss your situation and answer any questions you may have. The buyer will be prepared to make you a cash offer on the spot! What have you got to lose? Sell Your House Fast – Mississippi is the name you can trust.
