When you sell your home the price your home is sold for and the money you profit are unfortunately not the same. There are many costs and variables to take into account when deciding what you will net from the selling of your home. You can use a home sale calculator to help you gain a conservative idea of what that amount will be.
To be able to use a net home sale calculator you will need to collect some specific info on your home and the realty market in your area. When you are gathering this info you need to make sure that you are being conservative and accurate with your calculations. If you do not gather correct and detailed info you will not get an accurate estimation.
Estimated Selling Price
When deciding the amount of your estimated selling price this is not your best case scenario amount. This will most likely be below the price you are planning to ask. To decide a conservative guess of what your selling price might be you need to look at other housing in your area that has sold recently. How much did they sell for? Find homes that are very similar to yours.
The homes you compare yours to should be built in the same era and are the same size. If these homes have any upgrades that your home does not you need to consider this and adjust the price to match. This is the best way to get a true idea of the value of your home in your area currency real estate market.
If you are using a real estate agent you will have to give them a percentage of your selling price. The average real estate agent gets five to seven percent of the selling cost. You may also be responsible for a percentage of or set amount of the closing cost. This will be dependent on the contract you work out between you and the buyer of your home. Closing costs can add up quickly and can often equal two to three percent of the selling price.
You will also have to keep holding costs in mind. The holding cost is the cost of your home’s mortgage and upkeep of your empty home during the time you are waiting for someone to purchase it. Unfortunately, your mortgage does not stop once you put it on the market. You will need to check other home sales in your area to get an average of how many months houses tend to be on the market.
Concessions and Mortgage Pay off
If you have a mortgage on the house you are selling you will also have to subtract the amount to pay off that mortgage from your selling price to figure out the net profit of the sale of your home. This amount will vary slightly depending on how long your house stays on the market. Remember to always be conservative when choosing what amount you use to estimate your expected net profit in the potential sale of your home.
You need to consider concessions you may end up making with the potential buyer of your home. If you know that the water heater needs to be replaced or that there is something structural wrong with the house the potential buyer will discover these problems once they have the house inspected before going under contract. When they discover these problems you need to have a set amount or percentage you are willing to take off the price of the home so the buyer will still go through with purchasing your home.
It is clear, it will take you some time to gather the necessary info to input into a home sale calculator. Once you have researched the needed subjects and have all the information necessary you will be able to get an estimate of how much you could profit from the sale of your home. All the effort will be worth it when you can know that you have a real idea of what to expect after the process is over. Having this knowledge will help you with knowing if it is the right time for you to sell your home.