How do I Know What I’m Going to Net On My Home?

When I meet with sellers, the big question everybody asks me is how much are they going to net on their home? They want to know the details on how much money they will walk away with at the end of the transaction.  Maybe they are wanting to buy some new furniture or have a certain amount for a down payment on a new home, so this information is vital for many of my clients.

Talking Numbers

When I meet with my clients, part of the listing appointment is spent on going over all the things including the nitty gritty on numbers so we're going to talk about all those things when I come out to meet with you.

So part of the meeting is going through and talking about where we believe we can sell your home, then I'll factor in all the fees and commissions that are paid, seller paid closing costs, property taxes, HOA fees, etc.

I'm going to ask you if you have a balance on your home and if so, what your mortgage pay off is so I can calculate everything. We'll discuss and account for if there are any other liens you may have so for example,  if you got a new AC unit and instead of paying cash for it, you financed it on the house or had solar panels installed that you still owe on, anything like that.

Reviewing Your Situation

I'm going to put everything into a spreadsheet for you and we're going to review it line by line in our meeting.  We'll also talk about the best and worst case in my opinion of what your home would sell for to come up with a realistic range so if you weren't to sell the list price, what I believe your worst case scenario based on certain factors such as condition of home, etc that we'll discuss so that when I leave that appointment, you're going to have a really good idea of what you can expect to sell your home for.

My clients are very satisfied with this approach because we discuss the best case and worst case during the appointment so nothing is left to chance and we go into the process eyes wide open.  While you can't account for every variable in real estate, it definitely helps to get started on the right foot.

Going through these numbers as thoroughly as I do with you is going to help you really plan your next step.

Planning Your Next Steps

When you're building your new home, you will have a very good idea of how much money you feel comfortable spending at the design center or if the homesite you prefer has a lot premium, having an idea of what you will net when you sell your home will help you make those decisions because you will have an idea of what the future looks like.

It's especially helpful when we're working with clients that have debts to pay off and area also saving for a down payment to predict the new monthly payment on the new home and calculate how much debt they can pay off and get rid of before they close on the new home.  One of my favorite things to do is show my clients how they can pay off a good chunk if not all of their debt and have a lower cost of living in their new home than they do currently.   It blows their mind in a good way!

So knowing what you are going to net on the home when you sell is definitely an important question that we will address in the listing appointment and we will go over everything and you'll have all of that information before I leave at your fingertips to look at and I'll give you access to move around all those numbers in the spreadsheet.