When you plan to sell your house, the first thing that pops up in your head – how much money you will make out of it. Well, that’s dependent on the settlement costs you’re responsible for, along with other factors that will influence your situation.
The share of the money you get to keep after you sell your home is based on multiple factors, including how much money you are in debt to pay on the home, your selling price, and how much you will have to pay the realtor.
So when you decide to sell your house, you hire a real estate agent to assist you. Real estate agents are really into making money, so you will have to bear this expense for the time and effort they invest in getting you a potential buyer and negotiating the sale.
They are paid on a commission basis, around five to six percent of the house’s sale price. The commission made is divided between the seller’s and the buyer’s real estate agent, while the seller is the one who bears the majority of this cost.
The commission percentage depends on what agreements you make and add to the list. If you are good with convincing, you can ask realtors to charge you reasonably a lower fee.
Necessary Home Repairs
During home selling, remember to work on your house appeal. There is a possibility that your house might require a few repairs before it is ready for sale. By enhancing your house appeal, you can potentially raise your house value.
During the home inspection, the buyer’s home inspector might find problems such as damaged ceiling, bad or faulty plumbing, termites, and many more. It is your responsibility to fix those issues to lock the deal.
Furthermore, house repairs can cost an arm and leg, so prepare yourself for it before you decide to sell your house, especially if you expect a few problems will be unavoidable during a home inspection.
If you decide to move out before selling your house, it falls under you to pay for the utilities. Make sure you pay your bills on time to avoid piling up and hence hard to pay altogether. You can estimate the cost from your past bills to separate it for the utilities until a buyer moves into the house.
You cannot sell your house without clearing your mortgage debts. In cases, if your house is under the mortgage, it is necessary for you to pay the remaining balance before you move out. Remember, the remaining loan balance is paid with the amount you make on the sale.
Therefore, before you finalize to sell your house, check your loan balance. If your loan balance appears to be higher than the selling price of your house, drop your idea of home selling. Instead, wait for your house value to increase and then hit the jackpot!
For further estimation, use a home sale proceeds calculator to calculate the amount you can afford to buy another house.
Don’t be surprised if you are asked to clear out a few closing costs. Usually, sellers are held accountable to pay for the closing costs that may include property owner association costs, an attorney, property tax, title insurance, and transfer fees. Altogether these closing costs can vary between two to four percent of the sale price of the home.
Selling a house isn’t simple. Therefore, early planning and figuring out what costs should be cleared can save you from drowning in hot waters. It is advisable to get in touch with a reliable real estate agent to help you with this stressful home selling process.
They can help you with all the possible circumstances that are likely to occur and navigate the search for your next home too. Further, this estimation can also help you to know how much money you can make after you sell your house.