How Big Will My Check Be Selling a Home?

What you want to know is how fat your bank account will be when you sell your home.

I have a great trick at the bottom to figure out what your net proceeds will be in 3.2 seconds. But here is how we normally calculate it. So first of all, you need to get the value of your home and what it's likely to sell for. This you can discuss with your agent and they'll be able to run a CMA report, which is comparable houses in the neighborhood that have sold recently take into account some other factors, and get a good idea for what a buyer in your market is willing to pay for a home like yours.

Just a quick tip, you really don't want to rely too much on online websites sources for this information. I have a video another blog about Zillow and the Zestimate accuracy. But really, no online service is going to be able to provide you with a completely accurate figure.

I've put together a sample seller net sheet, that's the same report I would give to a client of mine whose home I'm listing, so that they would have a really good idea of what

their bottom line will be at the end of the sale. So first of all, we've got the sales price, which is an estimate right now. It's basically what the seller and I have agreed to

list the home for, the biggest thing that's going to come out of your profits is the mortgage payoff. That's if you have a mortgage, if you don't, and it's paid in full, congratulations.

If you have a mortgage that you'd be paying or a second mortgage, any mortgages that you'll have to pay back that'll come off first. So in this example, we've got this number right

here. This gives you your gross equity.

The next biggest item is going to be the real estate agents commissions, the seller typically negotiates with their agent, what they'll be paid and their listing agent, then splits it with the buyer's agent as an incentive to bring buyers to the home. This isn't negotiable, but it's typically around 6%. So 3% would go to your agent and 3% to the buyer's agent, I highly recommend choosing an agent based on the services that they have to offer. Rather than going primarily on price.

You can think of it like store-brand mayo. You can get it, it's cheaper, it sells because it's cheaper. But it's not even real Mayonaisse. Now we're not talking about your budget

for the week store-brand Mayo, grass fed beef and how they taste and which you should purchase we're talking about the person who will be marketing your home. It's a transaction

most people only go through two or three times in their life. And marketing can make an incredible difference, you'll need to make sure that they provide great service, a good

realtor will properly invest in the marketing and resources may have assistants and a team that will ensure your return on investment. So we'll call that 6% here.

Then you'll have your transfer taxes. This is made up of different items, they'll call it different things, different places, but it'll be things like grantor tax or tax stamps. So this is going to vary wildly depending on where you live. For example, seller transfer taxes total up in Virginia to 0.3%. and in DC right next door, it's 1.45%. Then their fees, they're going to be going to the settlement company. Here's some examples of ones I had recently this one for a $650,000 house, this one from $465,000 house, and this one from a $755,000 house. Now you don't have a lot of control over these costs, because it's the buyer that typically picks the settlement company. But luckily, they don't fluctuate wildly. Some other payments you may have to make would be taxes that you have not paid that the buyer is going to pay for time that you live in the property. Same thing goes for the HOA fee. So if you're behind an HOA fee behind on the taxes, those will come off of the total amount due to the seller. So here I have an altar to use as an example from a recent transaction. And as you can see from here, they had quite a bit of past due taxes. There's also a payment that they're going to be making for money that has not been paid for the current period that will be paid later in the year by the buyer. So they're giving this money to the buyer in order to fulfill their obligation for taxes that year. And then they are getting a credit here because they have paid the condo fee for a full month and they own will be owning it half of them on the other.

Another consideration you may have is you may have offered to pay some of the buyers closing costs. This is something you'll negotiate when you receive an offer. They may need it

you may raise the price in order to work it in. But if you are paying any of the buyers closing costs, that's going to show up here as well. So you've got the sales price, the mortgage pay off, charges to seller, credit a seller that comes to this figure right here. Now you will also have to keep in mind anything that you've done to fix up the home for the sale. If you had to spend $600 on painting or $6,000 on floors, that'll come off your profit as well. Now, like I told you, I have a really great trick for figuring this out in just seconds. Go down below to the description of the video, click on the link, you go through there, it'll give you a valuation and also your home equity. And if you don't agree with that value, you think it's worth more or less, you can contest it, then a local realtor, me, if you follow my link, we'll be able to do a CMA for you and provide an adjustment finely tuned to what the market value is in your area. You just take that minus agent Commission's and minus, I don't know let's say $2,000 on a $600,000 house in Northern Virginia or about $9,000 on a $600,000 house in DC, minus any repairs and that's your profit.

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Seriously, it'll only take like one second.