How Much Do You Actually Make When You Sell Your House

Real estate is one of the largest assets a person could have and for most people, owning a house is one of the largest financial investments you could make in your lifetime. However, it’s still pretty common for people to move out or sell their houses. For many, it’s considered a rite of passage to settle for the first house that suits your budget after college but then find yourself having different needs once you grow older or having to make major adjustments for the long term. Suddenly a bachelor pad doesn’t seem as practical as it did when you were in your early twenties.

Homeownership can provide a good safety net, but if you hit that stage in your life where you find it necessary to move, then you’d likely want to know how much revenue you could make from such a large investment.

The traditional method of selling tends to have costs add up, the largest expense usually being that of your preferred realtor. Real estate agents work on a commission basis, so they’re equally invested in trying to secure you a sale that’s as good a price as possible.

The amount of revenue you get will depend largely on how much you invest in your house after you account for expenses.

Getting the starting value for your house can be very personal. Everything starts with pricing your house correctly. You’ll want to look at all the houses similar to yours listed in your neighborhood over the last six months. You can study expired or withdrawn listings to determine what took them off the market so you could avoid the same mistakes. If you’re working with a real estate agent, they will likely prepare a comparative market analysis for you.

If you have done any work on your property such as structural repairs or cosmetic upgrades, you could use it to negotiate for a higher selling price. You could also improve the impact of your house viewings with proper staging, where you decorate your house to show off its best features and draw attention away from potential deal-breakers.

Then there are the expenses you rake in during the selling process. These can be how much you spend on improvements you’ve made to the property, such as repairs and staging. You also have to account for how much it will cost you to move out of your home, which could include the truck rentals, storage, and temporary housing.

You should make sure to settle any leftover financial commitments you may still have concerning your house. These can be any ongoing mortgages you have or loans you’ve taken against your home equity. Keep in mind that the while longer you’ve owned the property, the lower your mortgage payoff will be. The same logic can be applied with how much you’ll have to pay; the lower your home equity is, the higher you’ll have to pay in comparison to your sale price.

In addition, you have your closing costs, which may include expenses required for closing a sale of the house. The more prominent closing costs are service fees such as commissions and attorney fees, insurance, the houses’ transfer tax, and escrow fees.

Taking all of that into consideration, your net proceeds would bring you to your actual sale price minus any mortgage fees you may have as well as home sale preparation costs and closing costs. If you manage the upkeep of your property properly, you’ll be able to maximize your profits and have an easier selling experience. We buy houses at SnapCashOffers.com. For more information, contact us today.