Estimating Net Proceeds
Once you’ve
been given an estimate of market value, you can get a rough
idea of how much cash you might walk away with when the
sale is completed. This can be particularly useful as you
start looking for another home to buy.
From the estimated sales
price, subtract:
- Payoff figure on your
present loan(s);
- Broker's commission;
- Any prepayment penalty
on your mortgage;
- Attorney's fees, if any;
and
- Unpaid property taxes.
In addition, we can tell
you whether local customs or rules expects the buyer or
seller to pay for the following items:
- Title insurance premium;
- Transfer taxes;
- Survey fees;
- Inspections and repairs
for termites and the like;
- Recording fees;
- Homeowner Association
transfer fees and document preparation;
- Home protection plan;
and
- Natural hazard disclosure
report.
As far as closing costs are
concerned, you and your eventual buyer may agree on any
arrangement that suits you, no matter what local practice
dictates. Your REALTORŪ will
assist you in estimating what your final closing costs
will be. It is difficult to predict what the
exact closing costs will be when you negotiate with a
particular buyer.
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