A Guide To The Sale Of Your Property – How Much Will You Earn?
When trying to look for a feasible price for their property, many a homeowner would turn to the comp in the neighborhood. Good idea, but wither the bottom line – do not treat this aspect of the sale as chopped liver.
A Guide To The Sale Of Your Property – How Much Will You Earn?
It happens everyday – you just might know it. Mr. or Ms. Homeowner, for one reason or another, decides to sell and tries ascertaining how much. They may set a price off of the cuff or do research to ascertain the best price that will result in a sale within a specific time period. But both these stratagems – the simple and the sophisticated – often do not give pause when it comes to the final amount from the sale of the property. And in the end, the ultimate amount may not be as high as expected, thus leading to the phenomenon of “seller’s remorse” and perhaps a scream of anguish and surprise heard ’round the world.
In the grand scheme of things, you should first determine objectively the ultimate amount before taking the plunge and selling your property. Again, not too many people give much consideration to this. This should not be a problem if you have a lot of equity. If you don’t, you better start calculating or you could be in for a bad shock.
First off, you have to begin with by deducting the outstanding balance on your mortgage from the estimated selling price. This is NOT to be misconstrued as the final cash out, so do NOT just stop there. Look at the big picture and think this over very carefully – here are other costs you may want to include:
Mortgage fees for pre-payment.
Property taxes for the portion of the relevant year in which you are selling.
Costs necessitated to improve or repair your home and make it marketable.
Attorney’s fees if a lawyer is required to be part of the process in your state.
Consider the incidental costs previously agreed by you and the buyer as per the terms of your purchase agreement. Otherwise known as miscellaneous payables, inspection fees, escrow fees, insurance premiums and recording fees are all included here.
One area people completely forget to factor in is, ironically, the biggest expense. Hiring a real estate agent would necessitate a generous commission on the agent’s part. A typical 6 percent commission on the sale of a $300,000 home is $18,000. This is why more and more sellers are souring on the idea of hiring agents due to the financial ramifications of enlisting their services to help sell the house. But all things considered, you have to get the most accurate sum total for all relevant costs and determine for sure how the home is to be sold.
The decision to sell is often a matter of the heart. But it should also be as cold and calculating as a Dirty Harry movie – exactly the type of steely, determined focus you need when evaluating the financial side of things.
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