subject: A Guide To The Sale Of Your Property - How Much Will You Earn? [print this page] When trying to look for a feasible price for their property, many a homeowner would turn to the comp in the neighborhood. This may or may not be the best thing to do, considering you still have to look out for yourself - and the bottom line.
How Much Are You Expecting To Make After You Sell Your Property?
It happens everyday - you just might know it. A homeowner decides to sell and goes about figuring the best price to sell. They would then have two options give a ballpark figure, a guess which may or may not be educated, or try to discern the most ideal price by means of research, mathematical equations or the like. 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 reality, the decision to sell your property should only be made after determining what you can objectively get out of it. Most people, however, tend to eyeball this amount. This should not be a problem if you have a lot of equity. But if it isn't, then it's time to get crackin' on those math skills...not exactly on anybody's list of favorite things to do, but essential in preventing agonized screams, uncharacteristic profanity and excessive palming of face.
The first place to start is the estimated price you will sell for minus the outstanding balance on your mortgage. This gives you a rough estimate of your equity, but should not be relied upon as the final cash out figure. Instead, you have to sit down and start calculating the other costs such as:
Pre-payment fees for mortgages.
Relevant property taxes that cover the part of the fiscal year of sale.
Costs necessitated to improve or repair your home and make it marketable.
If your state requires you retain a lawyer for the sale, consider legal fees.
For the penultimate item, consider the incidentals - these would be items agreed to hereforth in the purchase agree you and the buyer will sign. This could cover a wide range of fees, including inspection fees, escrow fees, insurance premiums, recording fees, etc.
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.
It is often heart-rending to sell a piece of property. It should, however, also include a hard, cold look at the financials involved and whether doing so makes sense.
