Estimating Net Proceeds…What will you take away?

Estimating Net Proceeds…What will you take away?

 

Once you’ve been given an estimate of the market value by your Realtor, you can get a rough idea of how much cash you might walk away with when the sale is completed. This can be particularly useful when you start looking for another home to buy. Every realtor should be willing to provide you an estimate of net proceeds. This is a very important part of the selling process.

 

This is how to figure your net on your own. To estimate your net proceeds, from the estimated sales amount, subtract the applicable costs in the three sections outlined below: seller’s costs, buyer’s/seller’s costs and closing costs.

 

Seller’s Costs: Subtract the following costs as applicable.

·        Payoff of your current loans

·        Broker’s fee

·        Prepayment penalty if any

·        Attorney’s fees or title company fees

·        Unpaid property taxes

 

Buyer’s/Seller’s Costs: Your Realtor can tell you whether local customs or rules dictate whether the buyer or seller pays for the items listed below. Subtract the following costs as applicable.

·        Title insurance

·        Transfer taxes

·        Survey fees

·        Inspections, repairs, etc.

·        Recording fees

·        Homeowner association fees

·        Home Warranty

 

Closing Costs: As far as closing costs are concerned, you and your eventual buyer may agree on any arrangement that suits you. Everything is negotiable. Remember, your net will vary depending on the final purchase price. Price your property according to market selling value and not only will it be more likely to sell, you will be more likely to take away more proceeds from the sale!