There are very few ventures that you can try to make money with that are more profitable than selling houses. If you can acquire a place at a lower price because it needs some work, you can probably sell that house at a much better price if you can make the necessary repairs and improvements. The question remains, though, how much can you expect in terms of proceeds for your sales? This is an essential element to consider because you need to make everything make financial sense for you. Here is a short guide on how you can use the various tools online to your advantage when calculating the net proceeds of a home sale.
Make an Estimate
The first and most obvious step to calculate the ideal proceeds that you will be getting from a home sale is by going online and using websites like Zillow or realtor.com to find similar houses in the same area that has the same features as the house that you are selling and find out how much that house sold for. The great thing about the ubiquity of these sites is that you have a lot of tools that you can use for comparison, so it is not likely that you will be making estimates of the two large or too small for your home. Just make sure that you do your research well.
Consider Concessions
The next thing that you have to keep in mind our seller concessions. Seller concessions are necessary improvements and repairs that you half to take care of before closing the sale of the house. So when calculating that proceeds, you have to list down all of these things that you had to spend money on and subtract the sum of all of the costs from the total sale price of the house. The difference that you will be getting from that calculation is a more realistic ballpark figure of the net proceeds you can expect from the sale of that house.
Take Transaction Costs Into Account
Transaction costs are ones that we do not usually want to think about when selling houses because it is typically excruciating to think about all of the money that you will be losing to these things. You have to remember, though, that you cannot sell the house for free without dishing out some cash to make that sell happen, whether it is to seek out the services of an experienced realtor real estate agent, taking care of any legal fees, paying for title searches and title insurance as well as lender charges all count as transaction costs and can way heavily on the net proceeds of the sale of the house.
Calculate Holding Costs
Of course, when your house is up for sale, you will not stop paying any of the costs that are directly related to the house, including your mortgage and other typical housing costs, while you are waiting for the buyer to take over. You cannot come up with an accurate figure for your net proceeds if you do not consider these costs because these are expenses that you had to dish out of pocket.
Use A Home Sale Calculator
Naturally, the best thing you can do to make sure that you have a very accurate ballpark figure of your net proceeds will be to keep the things that we mentioned here and use a home sale calculator online to come up with a realistic number.
