Here is a simple calculator to use when selling your home. Again, simple stuff but many people don’t seem to know it off the bat. This calculator is full proof and works whether you use an agent or FSBO.
Take you sales price then subtract:
1 – Commission on the listing
2 – Commission paid to the buyers broker
3 – Closing costs:
For sellers I use a swag of 1% for a closing cost estimate. This includes:
– Split escrow 50/50.
– Purchasing title insurance for the buyer.
– County transer tax, (1.10 per 1000) so if you sell a 550k home you pay 550 bucks.
– Home warranty for the buyer.
– Transaction coordination.
– Natural Hazard and zone disclosure report
– Pest control inspection
– A couple hundred for minor repairs requested by the buyer.
– A couple hundred for minor remediation or treatment by the pest control agency.
Now if you have to tent the home or there are major repair issues then the 1% swag is not accurate. So make sure you take that into account. This also does not account for any prepayment penalty to your mortgage.
Now you also subtract your prorated property tax. The property tax calendar starts July 1. So if you close escrow September 15th then you will be changed 3.5 months of property tax at closing.
Then account for your mortgage. Recall mortgages are paid in arrears. So when you paid your mortgage on September 1, you paid for August. So on your closing date you will be charged a 15 day prorated payment.
So to summarize –
Sales price – [Commissions + Closing Costs (1% swag) + property tax proration + mortgage proration + your balance] = YOUR FINAL VALUE YOU WALK AWAY WITH!
My toddler is smacking the computer so if I missed somethings please someone jump in and update.
.
