It makes sense that someone selling a house would be quite curious. How much of the sale price they will keep is one of the most often asked questions. This is not the same as the whole buying price of the house. The purchase price less the outstanding mortgage is far from being reached.
To learn more about what else could lower the amount you receive when selling your home and to prepare yourself, keep reading. Call Berkshire Hathaway HomeServices at (310) 373-0021 if you need to sell your home.
A Quick Summary of What is Deducted from the Sales Price
The specific items that will be deducted from your sales price will vary based on your transaction. But some of the most frequent deductions from the sales price include costs are deferred until the closing date, the cost of recording documents, real estate transaction commissions, agent bonuses, home loan repayments, the cost of title searches, and title insurance policies.
Prorated property taxes, prorations for homeowner’s insurance, amounts of special assessments, past unpaid real estate taxes, homeowner’s or condominium association fees, penalties for paying early, defaulting on liens, wire transfer costs, closing expenses, a security deposit or rent that has been pre-paid, and taxes and tax withholding can also be deducted.
You should take into account all of these potential expenses when you advertise your home for sale.
Fees That You Are Responsible For
Many of the deductions made from your net profits will be inevitable, but there may be others that can be avoided. You’ll require the assistance of a real estate expert to negotiate your real estate deal. There are a number of fees that can be negotiated, including the closing costs for the buyer, which they may ask you to pay, the title search and title insurance policy payments (which can be made by the buyer, seller, or both the buyer and the seller), repairs needed by the buyer, and repair credits you may be asked to pay.
A portion of these expenses will almost always be borne by the seller in real estate transactions. The objective is to make sure that your asking price takes into account how much these additional costs will impact your bottom line rather than to reduce them to zero.
Know Your Expected Earnings
Be sure to calculate your potential earnings before deciding to accept a buyer’s offer. Your real estate agent will go over a Net Sheet with you, which lists all the expenses you’ll incur and are likely to incur. This is especially helpful if you have a lot of bids because sometimes the biggest offer isn’t the best one if it has additional, expensive stipulations.
The best way to get a clear idea of what you will likely pay and receive is to speak with a specialist. You can call Berkshire Hathaway HomeServices at (310) 373-0021 right now.