How to estimate the proceeds from the sale of your home
After you have determined the market value of your home you can get a fairly good idea of how much cash will be available after the sale is closed. The actual amount of proceeds you will receive is an important number to know as it will have an impact on your next transaction.
From the estimated sales price, subtract:
- Payoff figure on your present loan, the lenders demand fee and any prepayment penalties. Remember you pay the interest on a mortgage behind you i.e. April’s payment is for March’s interest. It is a good idea to figure one extra payment to cover unforeseen circumstance.
- Real Estate Broker’s commission (Based on sales price)
- Your share of Escrow and Title Insurance fees (Based on sales price)
- Recording fees
- Unpaid property taxes (California taxes are on a fiscal year of 7/1 to 6/30)
- Home protection plan
- Natural hazard disclosure report
- Inspections and repairs for termites and septic
- Property Inspections and repairs you will be responsible for
A good rule of thumb here in the High Desert Area is about 1.25% for the sellers cost of sale plus any substantial repairs or real estate fees.
Although most areas have customary practices as far as who pays for what. Closing costs are between the seller and the buyer and you can settle on what ever suits you.
The Crown Team will estimate your final closing costs for you. It is difficult to predict what the exact closing costs will be although an experienced team like ours can give you a reasonably accurate figure.