Knowing your remaining mortgage amount, the closing costs you'll face, and the cost of any repairs will help determine how much you can safely sell your home for.
- FINANCIALS -
HOW MUCH IS OWED ON YOUR MORTGAGE?
You'll need to know how much remains on your mortgage, since this will tell how much money you’ll have left when you sell. That will help you budget for home improvements or to plan for your next home purchase.
The closing costs sellers face are usually paid by the money from the sale and not out of the sellers pocket (meaning, you don't need to take money out of your bank account to pay it). However, that means the sale price must be above the amount due on your mortgage or that money WILL come out of your pocket.
The average seller has closing costs of 8-12% of the home's sale price.
YELLOW removes 6% of those fees by eliminating agent commissions (3% goes to the listing agent, 3% to the buyer's agent), but that still leaves 2-6% going to closing costs.
COMMON CLOSING COSTS FOR SELLERS
CALCULATE YOUR PROFIT/LOSS
It's easy to estimate the amount of cash you’ll walk away with when the transaction is complete.
We've created an Excel spreadsheet to help sellers calculate their profit or loss while offline:
A good online calculator can be found below. It has all the costs listed and their price range:
- OTHER SELLING CONSIDERATIONS -
After the financials, below are a few other things for sellers to consider.
GET PAPERWORK TOGETHER
Here’s a list of documents you are likely to need:
You need to be sure you have the right to sell your home.
That sounds obvious, but you must be sure no one else has a claim on the property.
Think of anything that occurred over the course of your ownership that may have impacted your title (like any liens, perhaps a divorce) and make sure that the title search will come back clean.
TIME YOUR MOVE
Maybe you don't need to move immediately. If this is the case, consider timing the sale of your home to maximize the sale price and minimize its time on the market.
According to Zillow research, the best time of year to sell your home is the first half of May. Homes listed for sale in this window sold almost two weeks faster than average and for $2,500 more.
Consider putting your home on the market at this time of year.
SET YOUR DEAL BREAKERS
Think about the conditions you will not accept.
What’s the absolute minimum sale price? What’s your time frame to move? What other conditions are you unwilling to budge on?
It's a good idea to set these now so you will not break them later.
Selling your home