For many it is how much will you pocket. But what is most important to you when selling your house?
Homeowners typically focus on how much they can list for. Unless you are trying to impress the neighbors, the list price is almost completely irrelevant.
What you should be focusing on is the net proceeds or how much you will really get to keep at the closing table. This is the number you will be able to apply to your next home. In the case of investment properties, it is the one number that really shows your returns.
If you plan to buy, check out our mortgage calculator to see how much you’ll need as a down payment and how much you can afford.
What Impacts Your Net Proceeds?
There may be many deductions to know of when making your calculation, including:
Marketing, like home staging
Real estate agent commission
Early mortgage payoff
Prorated property taxes and fees
Holding costs until closing
Certificate of Occupancy for new construction or major renovations
Title searches and title insurance policies
Document recording fees
Wire transfer and closing fees
So, How Much Will You Net?
This is a number you want to know before you sign a contract with a buyer. It is something you should have a close estimate on even before you decide on a list price.
With many factors involved, it is difficult to accurately add these up yourself. The MRT Team discusses this up front during every listing meeting and we also provide a Net Sheet, which lays out all of the expenses, as soon as possible so you can make your best decision. We will also work with your title company to provide an accurate net sheet once you’ve signed a contract.
So What’s Next?
When it comes to selling a home you should do your homework. The sale can take longer to close, or cost more than expected. Having an estimate of your net is a crucial first step in listing your home for sale.
Would you like a Net Sheet for your home? Contact us and we will prepare one for you.