How Much Will You Make on The Sale of Your Property?

Most people look to comps in their area to come up with the listing price for their property. This is logical, but you also have to focus on the bottom line.

How Much Will You Make on The Sale of Your Property?

It happens more often than you might imagine. A homeowner decides to sell and goes about figuring the best price to sell. They may set a price off of the cuff or do research to ascertain the best price that will result in a sale within a specific time period. What many do not take into account, however, is the ultimate amount the will get from the property. This can lead to brutal surprises when the ultimate amount is much less than expected – a concept known as seller’s remorse.

In reality, the decision to sell your property should only be made after determining what you can objectively get out of it. Most people, however, tend to eyeball this amount. If you have a lot of equity in the property, it really is not an issue. If you don’t, you better start calculating or you could be in for a bad shock.

The first place to start is the estimated price you will sell for minus the outstanding balance on your mortgage. This gives you a rough estimate of your equity, but should not be relied upon as the final cash out figure. Instead, you have to sit down and start calculating the other costs such as:

1. Mortgage pre-payment penalties,

2. Property taxes for the portion of the relevant year in which you are selling.

3. Any costs associated with repairs to the property to get it in shape to sell.

4. Attorney’s fees if a lawyer is required to be part of the process in your state.

5. Incidental costs associated with the sale as agreed to in the purchase agreement with the buyer. Items can include title insurance premiums, recording fees, inspection fees, warranty insurance, escrow fees and so on.

One area people completely forget to factor in is, ironically, the biggest expense. If you use a real estate agent, you are going to pay a significant commission. A typical 6 percent commission on the sale of a $300,000 home is $18,000. More and more sellers are bypassing this by selling their properties without agents, which makes sense given the money involved. Regardless, you need to ascertain how you will sell the home and the relevant cost of doing so as part of your overall calculation.

Making the decision to sell is an emotional one. It should, however, also include a hard, cold look at the financials involved and whether doing so makes sense.

Tips on how to Sell, Buy and List your property

When it comes to property, first impressions count, so make sure yours is looking its absolute best. Making the most of your home doesn’t have to cost a fortune, and a few inexpensive improvements can make all the difference.

Put yourself in the shoes of a potential buyer and, starting from the pavement outside, take a complete tour of the property. Work out a plan of action, and if necessary, draft in a friend or an objective other for a second opinion – you’ll be amazed at the cracks and crevices, often that have gone unnoticed for years, that suddenly come to light.

Once you’ve made a list of what needs to be done, work out a budget and priorities accordingly. There’s no point throwing money at making unnecessary changes at this stage, so keep things in perspective.

If your landscaping isn’t that great, spend the money on new plants to make it look appealing. The buyer has to see themselves living in the property, so make it a paradise.

Kerb appeal is essential because many prospective buyers may only drive by your home. Getting them back a second time will depend on their first impression, so make sure the outside is looking its absolute best; keep refuse bins out of sight, and, if it needs it, give the front door a fresh coat of paint. Clean up any paint issues on the interior of the property including behind doors, in closets and so on. This may sound odd, but buyers will look in every little cranny. You’re effectively in competition with other homes in the area, so it pays to find out from your local estate agent what will make yours shine – a new worktop in the kitchen might be all that it takes.

Make your home as warm and inviting as possible, because more than most major purchases, people buy homes according to their emotions. That process begins by making your home feel homey without feeling cluttered.

Doing up a house for sale is all about marketing a lifestyle so always keep your buyer in mind when making any changes.

Once the property is clean and looks ready to sell (remember, you are trying to impress potential buyers!), create a listing. Getting a free listing on this site will expose your property to hundreds of thousands of buyers including people considering moving into your area. Most sellers fail to recognize that one of the largest pools of buyers are people relocating from one part of the country to another. This is where realtor MLS listings fail miserably. They simply do not expose your home to the correct market, making the sale of the property a long process.Many homebuyers use the Internet to find a home.Because when listing your home for sale, you’ll be able to provide a bevy of information to potential buyers. Essentially, you’ll get to provide everything you would in a typical MLS listing such as bedrooms, bathrooms, garages, appliances, price, square footage, contact information and so on.