When you’re selling a house, there are a lot of numbers that you’re having to consider, juggle, and balance.
If you’re selling a home for the first time, there are also a lot of new terms that you’re suddenly having to learn about. It can be very overwhelming and incredibly confusing.
You may find that you don’t even really know how much money you actually end up making on the sale of your house. So what are your home sale proceeds? And how can you calculate and figure out what those numbers are?
Here are how you can figure out, once and for all, what your home sale proceeds are.
What Are Your Home Sale Proceeds?
So what does the term “home sale proceeds” mean?
When we talk about home sale proceeds, we’re referring to the net proceeds that you get from the sale of your home. This is the final amount of money that you walk away from the sale with. The money that you actually end up making on your sale.
There Are a Few Things to Factor In
As much as we would love to believe that we pocket all of the cash that comes from our house sale, that’s just not the case.
That final number has multiple different costs associated with it that make that total number smaller. If you really want to know how much money you’re actually making on your house sale, there are some different factors that you need to consider and subtract from the price of your house to get to that net home sale proceed.
Market Value of Your House
The first thing to consider in your calculations is the market value of your house. To find this number, look at comparable prices of houses with the same specifications as your own in the area.
Your market value can be given to you by your real estate agent or done by your own research. You only need a vague estimate, so don’t stress about getting this number precise to the penny.
Cost of Your Repairs
When you’re in the process of getting your house to sell, you need to do a little bit of upkeep to get it looking its best. This is also a time when a bunch of issues come to light that you have never even noticed before.
This can include things like fixing appliances or replacing old cabinets. Even new lightbulbs or a coat of paint can be factored into these repair costs since they do ultimately detract from your net home sale proceeds. Try to keep a track of the money you spend on repairs as you go.
If you paid a realtor to help sell your house, they usually charge in commission based on the final sale of the house. This percentage, usually 5 or 6%, must be factored in when you calculate the final net proceeds of selling your house.
When you sell your house, you end up having to pay a small percentage of the total price of your house to close the sale. This is typically around 2% of the market value of your house. And yes, this does need to be factored in.
Total Holding Costs
While preparing your house for sale, there is a time span that you will still be paying for utilities on the house while it’s still in your possession. These are referred to as holding costs and they need to be added to that final number of proceeds.
Make It Easy to Calculate Your Net Home Sale Proceeds
You could spend hours plugging away at these numbers, creating a formula to figure out just how much you ended up making.
Or, you could use a home sale proceeds calculator to get that number as fast as possible.
Make it easy on yourself by using a calculator to get that home sale proceeds figured out.